L.O.I. Property, LLC v. Butler County, Ohio

District Court, S.D. Ohio·Decided May 18, 2022·No. 1:20-cv-01020·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF OHIO WESTERN DIVISION

L.O.I. Property, LLC, et al., : : Case No. 1:20-cv-1020 Plaintiff, : : Judge Susan J. Dlott v. : : Order Overruling Objections, Adopting Butler County, Ohio, et al., : Report and Recommendation, and Granting : Motion for Judgment on the Pleadings Defendants. :

Plaintiffs L.O.I. Property, LLC, B.A.O. Productions, LLC, and Brett Oakley initiated this action against Defendants Butler County, Ohio, the Butler County Board of County Commissioners, and Peter Acuff, in his official capacity as the Butler County Planning Administrator, alleging due process claims, equal protection clause claims, and a violation of the Butler County Rural Zoning Resolution. (Doc. 1.) Defendants filed a Motion for Judgment on the Pleadings, which was fully briefed by both parties. (Docs. 17, 25, 35.) On February 12, 2022, Magistrate Judge Karen L. Litkovitz issued a Report and Recommendation recommending that the Court grant the Motion for Judgment on the Pleadings, dismiss with prejudice the due process and equal protection claims, and dismiss without prejudice the Rural Zoning Resolution claim. (Doc. 31.) Plaintiffs then filed Objections to the Report and Recommendation, to which Defendants filed a Response in Opposition, and Plaintiffs filed a Reply. (Docs. 32, 34, 35.) This matter is now ripe for the Court’s review. For the reasons that follow, the Court will OVERRULE the Objections, ADOPT the Report and Recommendation, and GRANT the Motion for Judgment on the Pleadings. I. BACKGROUND Plaintiff Brett Oakley owns and operates Land of Illusion Adventure Park, a regional family entertainment venue, in Madison Township, Butler County, Ohio. (Doc. 1 at PageID 2.) In March 2020, Land of Illusion sought a zoning change for a business planned-unit development (“BPUD”) encompassing 228 acres at 8762 Thomas Road to expand the adventure

park. (Id. at PageID 13–14.) Plaintiffs allege this BPUD request “came at the recommendation of Butler County planning staff, including Mr. [Peter] Acuff—who suggested that rather than seeking to piecemeal zoning changes for the property, it would be better to have a cohesive plan for any future expansion.” (Id. at PageID 13.) Applications for zoning changes such as the implementation of a BPUD proceeded in stages, beginning with the Butler County Planning Commission, then to the Butler County Rural Zoning Commission, and finally to the Butler County Board of County Commissioners. (Doc. 25-1 at PageID 409–410.) After Plaintiffs submitted their initial zoning-change application in March 2020, “the Butler County planning staff . . . recommended approval at the preliminary stage,” as did the

Planning Commission on a unanimous basis. (Doc. 1 at PageID 14.) The Rural Zoning Commission, however, unanimously recommended the application be denied. (Id.) Plaintiffs allege that prior to a hearing before the Board of County Commissioners, they withdrew the application “in an effort to take the suggestions and comments from Butler County planning staff and amend the initial application.” (Id.) Plaintiffs submitted an amended application on September 22, 2020, which “contemplated many of the comments from the initial application and made changes to address concerns expressed by Butler County staff and nearby residents.” (Id.) Despite the changes made by Plaintiffs, the Butler County planning staff, without offering any explanation, changed their recommendation from approval of the preliminary BPUD application to denial. (Id. at PageID 15.) After holding a hearing on the application, the Planning Commission similarly reversed course, unanimously recommending denial without providing the reasoning for its decision. (Id.) Plaintiffs also allege the Rural Zoning Commission unanimously recommended denial of the application without providing any reasoning. (Id.) Ultimately, the County

Commissioners voted to deny Plaintiffs’ application. (Id.) Defendants supplemented the allegations in the Complaint by filing into the record the written recommendations of the Planning Commission dated October 13, 2020 and the Rural Zoning Commission dated October 26, 2020, and the decision of the County Commissioners dated December 12, 2020. (Doc. 17-1 at 131, 132, and 133–138, respectively.)1 The Planning Commission stated in conclusory fashion that it was recommending the denial of the requested zoning change because rezoning was “not generally consistent with the Comprehensive Plan for Butler County.” (Doc. 17-1 at PageID 131.) Similarly, the Rural Zoning Commission stated recommended denial because rezoning “is not consistent with the adopted Future Land Use

Plan.” (Id. at PageID 132.) The County Commissioners were more expansive when they provided the following findings of fact: 1. The requested zoning map amendment to B-PUD for Land of Illusion (RZC 20-03) does not conform to the adopted Madison Township Proposed Land Use Plan’s recommendation of residential or agricultural use for the subject site. 2. Analysis of Madison Township’s development over the last 10-20 years shows very little change in the character of the Township, suggesting that the Land Use Plan adopted in 2001 is still relevant and applicable:

1 The Court may consider public records that are referenced in or central to the allegations in a complaint without converting a Rule 12 motion into a Rule 56 motion. See Rondigo, L.L.C. v. Twp. of Richmond, 641 F.3d 673, 681 (6th Cir. 2011); In re Keithley Instruments, Inc. Sec. Litig., 268 F. Supp. 2d 887, 893 (N.D. Ohio 2002). a. Since 2000, the Township’s population has only increased by 2%, from 8,611 to 8,772 persons[.] b. Over the last ten years, there has only been an average of 5.8 new homes built annually, comprising 1.4% of residential permits issued countywide[.] c. A Department of Development planning study conducted in 2019 shows that land uses have remained stable over the past two decades, with only minor fluctuations in the percentage of land dedicated to agricultural, residential, recreational, commercial, and industrial uses. d. Since 2004, the County has considered ten zone change requests in Madison Township, only five of which were approved (two cases in 2004 and one case each in 2005, 2011, and 2019). Two prior zone change requests for the subject site (in 2015 and 2020) were withdrawn by the applicant. 3. The high-intensity commercial recreation uses proposed in the Preliminary Development Plan (PDP) are likely to adversely impact the existing land uses and have detrimental effects on the surrounding rural residential development, particularly with respect to development density and intensity, quality of life and enjoyment of property as zoned, and/or other public health, safety and general welfare elements, including but not limited to noise, traffic, sanitary wastewater treatment, storm water runoff, and demand for local emergency services. 4. The PDP does not adequately address the aforementioned adverse impacts or detrimental effects or adjoining property owners’ voiced concerns during the public hearings process. 5. The PDP does not integrate or demonstrate protections to and for the public health, safety, and general welfare of the residents of Madison Township and Butler County, Ohio. 6. Relevant state and local agencies (Ohio EPA, Butler County General Health District, Butler Soil and Water Conservation District) have questioned the ability of the proposed project as illustrated in the PDP to provide public services in an effective manner. 7.

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