Michael Dahlem v. City of Saco

2024 ME 32
Supreme Judicial Court of Maine·Decided May 2, 2024·No. Yor-23-154·Published

Opinion

MAINE SUPREME JUDICIAL COURT Reporter of Decisions Decision: 2024 ME 32 Docket: Yor-23-154 Argued: February 6, 2024 Decided: May 2, 2024

Panel: STANFILL, C.J., and MEAD, HORTON, CONNORS, LAWRENCE, and DOUGLAS, JJ.

MICHAEL DAHLEM

v.

CITY OF SACO et al.

DOUGLAS, J.

[¶1] The City of Saco, Amarjit Singh Dhillon, and Ajinder Kaur (collectively Appellants) appeal from the Superior Court’s (York County, Mulhern, J.) grant of partial summary judgment to Michael Dahlem, who owns property neighboring Dhillon and Kaur’s property and who challenged a contract zone agreement that would have allowed development of Dhillon and Kaur’s property in Saco. Dahlem cross appeals from the court’s dismissal of his Rule 80B appeal and subsequent denial of his motion to reconsider that dismissal, and from the court’s denial of summary judgment on two counts in his complaint. We affirm in all respects and dismiss Dahlem’s cross-appeal as moot.

I. BACKGROUND

[¶2] The following facts are drawn from a joint statement of material facts and a stipulated record submitted to the court on cross-motions for summary judgment.1 See Ross v. Acadian Seaplants, Ltd., 2019 ME 45, ¶ 3, 206 A.3d 283.

[¶3] This case involves a decade-long effort to obtain permission to build a single-family residence on Oceanside Drive in the Saco neighborhood of Kinney Shores. In 1980, J. George and Nancy Driscoll2 jointly acquired, by a single deed, two adjacent lots, identified as Lots 201 and 202. There was a single-family residence on Lot 201; Lot 202 was undeveloped. At the time, both lots were “grandfathered” nonconforming uses that did not comply with the City’s zoning ordinances. In 1986, George conveyed his interest in Lot 202 to Nancy and Nancy conveyed her interest in Lot 201 to George.

[¶4] In 2009, the Driscolls applied for a permit to build a single-family residence on Lot 202, then owned only by Nancy. The code enforcement officer

1 Although courts review Rule 80B appeals based on the administrative record, see M.R.

Civ. P. 80B(f), as we note below, Dahlem challenges a legislative, not adjudicatory, act, see infra ¶¶ 17-20. In this circumstance, a declaratory judgment action is a proper avenue for redress and may proceed through cross-motions for summary judgment based on a stipulated record. See Ross v. Acadian Seaplants, Ltd., 2019 ME 45, ¶¶ 6-7, 206 A.3d 283 (reviewing cross motions for summary judgment on claims seeking, inter alia, declaratory relief, based on a stipulated record).

2 For the sake of clarity, we refer to the Driscolls individually as George and Nancy.

denied their application. The Saco Zoning Board of Appeals affirmed the denial, and the Superior Court (York County, Brennan, J.) affirmed the Board’s decision. The Driscolls appealed, and we affirmed the court’s holding in a memorandum of decision, stating that Lot 202 “lost its grandfathered status as a buildable lot” under the City’s zoning ordinances when it was held in common ownership with Lot 201 and that the subsequent division of the parcels did not restore its grandfathered status. Driscoll v. City of Saco, Mem-11-138 at 1 (Sept. 22, 2011). We explained that “the Board’s denial of the request for a variance is final, and absent a change in factual circumstances, the Driscolls are precluded from applying for a variance for” Lot 202. Id. at 2 (citations omitted).

[¶5] The Driscolls continued to explore options that might allow them to build a residence on Lot 202. In 2015, they applied for a contract zone agreement that would “legislatively establish” their land “as two separate, buildable lots.” See 30-A M.R.S. § 4352(8) (2024) (allowing municipal zoning ordinances to include provisions for contract zoning); see also Saco, Me., Zoning Ordinance § 1403-2 (2012) (authorizing contract zoning in Saco). The Saco Planning Board held a public hearing to consider the request and recommended that the Saco City Council deny the application. After holding its

own public hearing, the City Council agreed with the Board’s recommendation and denied the application.

[¶6] The Driscolls applied again in 2017 to have their property rezoned by contract. This time, the City Council reversed course and voted to approve the application. The rezoning was codified in the “Contract Zone Agreement By and Between J. George and Nancy S. Driscoll and the City of Saco, November 20, 2017,” which exempted Lots 201 and 202 from the zoning restrictions that had prevented the Driscolls from building a house on Lot 202.

[¶7] The 2017 agreement required the Driscolls to seek the U.S.

Environmental Protection Agency’s (EPA) consent before connecting the new house to the City’s sewer system.3 The 2017 agreement also contained two deadlines:

Failure of the Applicants to secure site plan approval from the Planning Board within one year of the approval of this Contract by the Saco City Council shall render this Contract null and void. In the event that permits or approvals are delayed due to circumstances beyond the control of the Applicants, this one year deadline may be extended by one year upon written request to the City Council.

....

3 The Driscolls submitted a site plan following the approval of the 2017 agreement, which indicated that they intended to use a septic system instead of connecting to the City’s sewer system.

Failure of the Applicants, or buyers of a second lot that is created by virtue of this Agreement, to seek a single family dwelling building permit as described in application materials for this Contract Zone within two (2) years from the date of approval shall render this approval and Contract null and void. This two year deadline may be extended by one year upon written request to the City Council.

Because the 2017 agreement’s effective date was November 20, 2017, the Driscolls had to “secure site plan approval from the Planning Board” by November 20, 2018, and “seek a single family dwelling building permit” by November 20, 2019.

[¶8] The Driscolls secured site plan approval on October 16, 2018, thereby meeting the November 20, 2018, deadline. The site plan approval was valid for two years. However, the Driscolls did not obtain a building permit by November 20, 2019, nor did they make a written request to extend that deadline by another year. George passed away at some point following the execution of the 2017 agreement, and there were significant delays in obtaining from the Maine Department of Environmental Protection a permit to alter coastal sand dunes, which was required before the Driscolls could apply for a building permit for Lot 202. See 38 M.R.S. §§ 480-B(1), (8), 480-C(1)-(2) (2024). Ultimately, the sand dune permit was issued on June 9, 2021.

[¶9] Nancy then requested additional time to seek a building permit. At meetings on August 30 and September 7, 2021, the City Council took up and then approved her request. Nancy and the City entered into an agreement entitled “Amended Contract Zone Agreement by and Between J. George and Nancy S. Driscoll and the City of Saco, Approved November 20, 2017, Amended September 13, 2021.”4 The 2021 agreement provided, among other things, the following:

Due to unforeseen delays in obtaining permits required to construct the proposed residence, the original Agreement between the Applicants and the City expired on November 20, 2019.

....

Saco City Council and the Applicant agreed to an extension of one year from the date of the DEP issuance [of] the Sand Dune Alteration Permit during the September 7, 2021 Council meeting.”

The 2021 agreement further provided that it would be “null and void” if Nancy failed to “secure a single family dwelling building permit . . . by June 9, 2022”; that this “deadline may not be extended”; and that Nancy was required to seek EPA approval to connect to the City sewer and submit “[e]vidence of

4The underscoring appears in the 2021 agreement and indicates the text in that agreement that did not appear in the 2017 agreement.

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