M & H PROFIT, INC. v. City of Panama City

28 So. 3d 71, 2009 Fla. App. LEXIS 19475, 2009 WL 4756147
CourtDistrict Court of Appeal of Florida
DecidedDecember 14, 2009
Docket1D08-4983
StatusPublished
Cited by11 cases

This text of 28 So. 3d 71 (M & H PROFIT, INC. v. City of Panama City) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
M & H PROFIT, INC. v. City of Panama City, 28 So. 3d 71, 2009 Fla. App. LEXIS 19475, 2009 WL 4756147 (Fla. Ct. App. 2009).

Opinions

WOLF, J.

We decide for the first time whether a property owner can state a cause of action under section 70.001, Florida Statutes (2006), otherwise known as the “Bert J. Harris, Jr., Private Property Rights Protection Act” (Bert Harris Act), based upon mere adoption of an ordinance of general applicability pursuant to the police powers of a city in a situation where that municipality has taken no further action concerning application of the ordinance to a particular piece of property. We determine the specific language of the Bert Harris Act does not contemplate facial challenges to general, health, safety, and welfare ordinances of a municipality. In addition, any attempt to broadly extend the application of the Bert Harris Act to these circumstances would unduly constrain the exercise of municipal home rule pursuant to article VIII, section 2 of the Florida Constitution. We, therefore, affirm the decision of the trial court.

Facts and Procedural History

Appellant, M & H Profit, Inc. (M & H), purchased the subject property on Highway 98 in Panama City in February 2005, when the property was zoned General Commercial (GC-1) with no height or setback restrictions. M & H intended to build a 20-story residential condominium building on the property.

Approximately six weeks after M & H purchased the property, the City of Panama City (the City) passed an ordinance which was subsequently codified in its Land Development Regulation Code. The new ordinance imposed a 120-foot height restriction with additional setbacks and an absolute 150-foot limit on structures in the GC-1 zoning district. At the time the ordinance was passed, M & H had not filed a development application with the City.

In October 2005, M & H participated in an informal pre-application conference with the City Planning Manager. According to M & H, such informal conferences were the City’s customary way of handling the construction permitting process. M & H alleged that it is the City Planning Manager’s duty and authority to make determinations on informal applications before the filing of a formal building application. M & H asserted that for many years the City Planning Manager had held such informal pre-application meetings to review conceptual plans as a matter of custom in order to avoid unnecessary expenses.

Following informal discussions, the City Planning Manager sent a letter to M & H stating, “After a cursory review of the submittal, it is clear that it will not meet the pertinent requirements ... as they relate to setbacks and height.” Months later, M & H wrote the City Attorney asking “if there is some other action [M & H] could take that might overrule [the City’s] letter of Oct. 25, 2005?” The City replied that “[a]ny variance ... must be approved by the Board of Architects and the City Commission.”

In March 2007, less than one year after receiving the City’s latest letter, M & H submitted a Notice of Intention to File a Claim under the Bert Harris Act, along with appraisals supporting its claimed loss in the property’s fair market value. The City sent a Ripeness Determination to M [74]*74& H, stating M & H’s Notice of Claim did not fall within the scope of the Bert Harris Act.

M & H then filed a complaint in Bay-County Circuit Court pursuant to the Bert Harris Act, claiming the enactment of the relevant ordinance had caused a significant loss of value in its property. M & H alleged (1) it purchased the property in reliance on the GC-1 zoning classification, which then had no height or setback restrictions; (2) M & H’s reasonable investment-backed expectations were to develop the property “in accordance with the local rules and regulations for GC-1 zoning as then administered by the [City], which created an ‘existing use’ in the Subject Property as defined in F.S. § 70.001(3);” and (3) the City had “applied its new Ordinance to the Subject Property and/or take[n] the position that the new Ordinance is applicable” to the property.

The City filed a Motion to Dismiss for failure to state a cause of action under the Bert Harris Act, arguing the Act pertains only to as-applied challenges, not facial ones, and M & H never applied for a development order or building permit. Thus, the City argued, the mere enactment of the ordinance was not a legally sufficient ground to state a cause of action under the Act. In addition, the City pointed out that a 20-story residential condominium was not an “existing use” under the Act because the City’s Comprehensive Plan did not allow residential uses of the property in the GC-1 zone, nor did M & H have a vested right in its plan to develop the project merely by virtue of purchasing the property in February 2005.

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M & H PROFIT, INC. v. City of Panama City
28 So. 3d 71 (District Court of Appeal of Florida, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
28 So. 3d 71, 2009 Fla. App. LEXIS 19475, 2009 WL 4756147, Counsel Stack Legal Research, https://law.counselstack.com/opinion/m-h-profit-inc-v-city-of-panama-city-fladistctapp-2009.