KSS One, LLC v. Henrico County, Virginia, Board of Supervisors of Henrico County

Court of Appeals of Virginia·Decided March 7, 2023·No. 0294222·Published

Opinion

COURT OF APPEALS OF VIRGINIA PUBLISHED

Present: Judges Chaney, Raphael and Callins Argued at Richmond, Virginia

KSS ONE, LLC

OPINION BY

v. Record No. 0294-22-2 JUDGE STUART A. RAPHAEL MARCH 7, 2023

HENRICO COUNTY, VIRGINIA, BOARD OF SUPERVISORS OF HENRICO COUNTY, R. JOSEPH EMERSON, JR., IN HIS CAPACITY AS THE DIRECTOR OF PLANNING OF HENRICO COUNTY, PLANNING COMMISSION OF HENRICO COUNTY, UVP HOLDINGS LLC, AND HIGHWOODS SERVICES, INC.

FROM THE CIRCUIT COURT OF HENRICO COUNTY Wilford Taylor Jr., Judge Designate

S. Keith Barker (S. Keith Barker, P.C., on briefs), for appellant.

Ryan Murphy, Deputy County Attorney; Michael J. Rothermel (Andrew Newby, County Attorney; Edward E. Bagnell, Jr.;

Courtney M. Paulk; Elizabeth C. Burneson; Office of the Henrico County Attorney; Spotts Fain PC; Hirschler Fleischer, PC, on brief), for appellees.

Appellant KSS One, LLC brought this lawsuit to block the construction of a child-

daycare center in a Henrico County office park where KSS owns a condominium unit. KSS claims that Henrico County’s approval of the plan of development for the daycare center violated KSS’s procedural-due-process rights because the decision was made by the director of the Henrico County Planning Commission as the designee of the Board of Supervisors; KSS argues that it was unconstitutional for the planning director to both advocate adopting the plan of development and then approve it as the final decisionmaker. KSS also argues that the approval of the plan of development changed the zoning of the property, impairing KSS’s vested rights.

Finding neither claim meritorious, we affirm.

BACKGROUND

Because we are reviewing the trial court’s order sustaining the defendants’ demurrers, we take the facts alleged in the amended complaint in the light most favorable to the plaintiff. Patterson v. City of Danville, ___ Va. ___, ___ (July 7, 2022). We do not, however, accept the pleader’s conclusions of law, even if those conclusions are couched as factual assertions. Id.

In 1999, the Board of Supervisors of Henrico County approved “Conditional Rezoning Case C-27C-99” for a tract of land that included the property at issue. The rezoning imposed various conditions, including the submission and approval of a plan of development. The conditional rezoning classified the property as O-3C Office District. That zoning classification permitted the operation of a daycare center as long as it was approved through a plan of development. See Henrico Cnty. Code § 24.50(g) (2014) (permitting “Child care centers” in O-2 Office District under plan of development referenced in § 24-106); id. § 24-50.11(a) (2014) (permitting in O-3 Office District any use permitted in O-2 Office District); id. § 24-106 (2014) (plan of development procedures). The Board of Supervisors later revised and renumbered the zoning ordinance, effective September 1, 2021. See Henrico Cnty. Zoning Ordinance (2022), https://henrico.us/pdfs/planning/code-update/Ch24_2022-12-13.pdf.1 In 2004, PAPEC Richmond II, LLC applied for a plan of development for a 6.28-acre office condominium within the area subject to the 1999 rezoning. KSS alleges that the county’s planning department reviewed the application and required certain changes. The Planning

1 KSS alleged that, in 2016, the Board of Supervisors created the Innsbrook Redevelopment Overlay District, a zoning district allowing mixed-use development across an area that included the office park at issue. But nothing in that ordinance affected the operation of a child daycare facility in an O-3 Office District. Rather, the ordinance speaks in broad terms about encouraging “flexibility” in development and the implementation of the “Innsbrook Area Study.” Henrico Cnty. Code § 24-92.4(a)-(e) (2016) (recodified at Henrico Cnty. Code § 24-3707(A)-(D) (2022)). The specific terms in the ordinance cover building height and “vehicular and pedestrian circulation,” neither of which is at issue here. See id. § 24-92.4(c)-(d) (2016) (now Henrico Cnty. Code § 24-3707(C)-(E) (2022)).

Commission then approved the plan and recommended it to the Board of Supervisors, which also approved it. The approved plan of development provided for eight buildings, together with common areas that included parking, lighting, and open space. PAPEC’s approved plan of development did not mention the operation of a daycare facility.

PAPEC formed the Dominion Place Condominium Unit Owners Association, Inc.

(Condo Association) to represent the interests of the condominium owners in the building units and common elements. By June 2007, the shells for two of the eight buildings had been completed.

Also in 2007, “[i]n reliance on the O-3C zoning,” KSS purchased one of the condominium units from PAPEC. The amended complaint alleges that the purchase entitled KSS to “a proportional undivided interest in all Common Elements in existence at that time, including the parking for the entire 6.28 acres of the Property and the open spaces, along with requirements for exterior appearance and exterior lighting of the eight buildings to be constructed in the Complex.” KSS began paying fees to the Condo Association to maintain the common areas.

By 2020, six of the eight buildings had been constructed and a contract for constructing the seventh was underway, all in conformity with the 1999 conditional rezoning and the 2004 plan of development.

In March 2020, after the State Health Commissioner declared that the COVID-19 pandemic posed a public health threat, the Governor issued an executive order prohibiting “all public and private in person gatherings of 10 or more individuals.” Exec. Order 53 at 2 (Va. Mar. 23, 2020). The county manager for Henrico County also declared—and the Board of Supervisors confirmed—that a local emergency existed “because of the COVID-19 pandemic.” On April 15, referencing the continuing emergency, the Board of Supervisors adopted an

ordinance delegating to the planning director the authority to “approve plans of development during the Emergency.”

By 2020, defendant Highwoods Services, Inc. had come to own the portion of the office park slated for the eighth building. Highwoods contracted with defendant UVP Holdings, LLC (UVP) to construct a daycare center on that site. Highwoods and UVP approached the Condo Association to request alterations to the 2004 development plan to accommodate the daycare center. The alterations included limiting open spaces, changing the lighting restriction, and altering the footprint and architectural appearance of the building. But the Condo Association opposed the changes.

Undeterred, Highwoods filed a request for a plan of development with the planning department in September 2020, listing UVP as the developer. The parties refer to that submission as the “Childcare Plan of Development.”

At a public hearing on December 10, 2020, conducted by the planning department, the department’s staff—including its director, R. Joseph Emerson Jr., and the plan reviewer, Michael Kennedy—recommended approving the Childcare Plan of Development. Before, during, and after the public hearing, the Condo Association and KSS objected to the plan. Nonetheless, the Childcare Plan of Development was approved on February 23, 2021.

In March 2021, KSS filed suit seeking declaratory and injunctive relief against six defendants: Henrico County, the Board of Supervisors, the Planning Commission, and Emerson (collectively, the “County Defendants”); Highwoods; and UVP. After the defendants all demurred, the trial court permitted KSS to file an amended complaint, to which the defendants again demurred.

Count I of the amended complaint asserted that KSS’s procedural-due-process rights were denied because of alleged deficiencies in the public notice for the December 2020 hearing.

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KSS One, LLC v. Henrico County, Virginia, Board of Supervisors of Henrico County, (Va. Ct. App. 2023).

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