Mrose Development Co. v. Turner County Bd. of Commissioners

2024 S.D. 28
CourtSouth Dakota Supreme Court
DecidedMay 22, 2024
Docket30339
StatusPublished

This text of 2024 S.D. 28 (Mrose Development Co. v. Turner County Bd. of Commissioners) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mrose Development Co. v. Turner County Bd. of Commissioners, 2024 S.D. 28 (S.D. 2024).

Opinion

#30339-r-MES 2024 S.D. 28

IN THE SUPREME COURT OF THE STATE OF SOUTH DAKOTA

****

MROSE DEVELOPMENT CO., LLC and JASON SCHUMACHER, Petitioners and Appellees,

v.

TURNER COUNTY BOARD OF COUNTY COMMISSIONERS, Respondent and Appellant.

APPEAL FROM THE CIRCUIT COURT OF THE FIRST JUDICIAL CIRCUIT TURNER COUNTY, SOUTH DAKOTA

THE HONORABLE DAVID KNOFF Judge

RONALD A. PARSONS, JR. of Johnson, Janklow & Abdallah, LLP Sioux Falls, South Dakota

KATELYNN B. HOFFMAN of Tuner County State’s Attorney Parker, South Dakota Attorneys for respondent and appellant.

ANDREW S. HURD SHAWN M. NICHOLS of Cadwell, Sanford, Deibert & Garry, LLP Sioux Falls, South Dakota Attorneys for petitioners and appellees.

ARGUED MARCH 19, 2024 OPINION FILED 05/22/24 #30339

SALTER, Justice

[¶1.] MRose seeks to develop Turner County farmland located along Swan

Lake into 15 lakefront lots. The land for the proposed development is currently

included in an agricultural zoning district. Because of residential density

restrictions, MRose applied to rezone the land into a lake residential district. The

Turner County Board of County Commissioners (the County) voted to deny the

application, and MRose appealed to the circuit court, which reversed the County’s

decision. The court interpreted Turner County’s zoning ordinance to require

approval of the rezoning application as a purely ministerial act because the land

was situated along Swan Lake. The County appeals, and we reverse.

Factual and Procedural Background

[¶2.] Christe Stewart lives in Sioux Falls but owns 145 acres of family

farmland located on the west side of Swan Lake in Turner County. Stewart

inherited the land from her parents and indicates that she wants to develop it into

residential lots, in part, so that she and her two sons can build homes along the

lake. Stewart and real estate agent Jason Schumacher formed MRose

Development, Co., LLC, to develop a portion of her land into 15 lakefront lots.

[¶3.] But Stewart’s land is currently included in the “A-1 Agricultural

District” under Turner County’s 2008 Revised Zoning Ordinance (2008 Zoning

Ordinance). Article 3 of the 2008 Zoning Ordinance governs the Agricultural

District and includes residential density requirements to preserve the agricultural

nature of the district. Single-family dwellings are permitted uses within the

Agricultural District, but only one building eligibility is allowed per 40 acres with

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the additional requirement that each single-family dwelling must be on at least a

2.5-acre lot.

[¶4.] In order to avoid these restrictions and begin constructing its 15-lot

residential development, MRose submitted an application to rezone Stewart’s land

to the Turner County Planning and Zoning Commission. 1 The application sought to

redesignate the land and include it in the “Lake Residential District,” which,

according to the 2008 Zoning Ordinance, exists “to provide for orderly residential

development around lakes.” The parties agree that rezoning the land, if permitted,

would allow MRose’s planned development as a permitted use.

[¶5.] The Turner County Planning and Zoning Commission considered

MRose’s rezoning application at a public hearing and recommended approval to the

Turner County Board of County Commissioners. A proposed ordinance that would

have rezoned Stewart’s land to Lake Residential received a first and second reading

at regular meetings of the county commission in June 2022. Following public

comment, the motion to pass the rezoning ordinance failed to carry by a vote of 2-2

with one of the commissioners absent.

[¶6.] The 2-2 vote effectively denied MRose’s rezoning application, but the

County decided to reconsider it with all five commissioners present at its June 28,

1. The procedure for rezoning land set out in Article 21 of the 2008 Zoning Ordinance is virtually identical to the statutory method described in our statutes. See SDCL 11-2-28.1 to -31 (describing the procedure for changing county zoning designation). In essence, applications are submitted to a county planning commission and, after notice to neighboring landowners, the planning commission holds a public hearing and then makes a recommendation to the board of county commissioners, which also holds a public hearing and votes to either grant or deny the application.

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2022, meeting. Although there is no transcript or further record of the discussion,

the parties agree that MRose’s rezoning application and the related proposed

ordinance produced strong public opposition, principally from current Swan Lake

residents. Ultimately, the minutes reveal only that the “motion failed.” The parties

agree that two commissioners voted to approve the ordinance, and three opposed it.

[¶7.] MRose appealed to the circuit court using the review procedures set

out in SDCL Chapter 7-8. The record reveals considerable imprecision about the

correct standard for the circuit court’s review of the County’s decision. The parties

at several points described the County’s decision as a quasi-judicial one and

suggested the court could effectively retry the rezoning matter “de novo,” meaning

without any deference. See SDCL 7-8-30 (“Each cause shall be heard and

determined de novo, except any appeal relating to a conditional use permit

determination.”). However, the parties and the court also noted at other points that

the court should review the County’s decision deferentially under an arbitrariness

standard, which is appropriate where a county commission’s decision reflects its

legislative or administrative—but not quasi-judicial—authority. See infra ¶ 32.

[¶8.] In any event, the circuit court agreed that MRose could present

evidence as part of its appeal, much of which appeared to be directed toward a de

novo retrial on the merits of the County’s decision—i.e., whether the elected

commissioners’ decision was a good one. For instance, MRose’s first witness was its

majority owner, Jason Schumacher, who testified that he had carefully planned the

proposed development and did “[e]verything to a T.” He explained that MRose had

hired a civil engineer and contacted state agencies regarding any impact the

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development would have on local wildlife and conservation efforts. Schumacher

testified that he had also consulted the 2008 Zoning Ordinance while creating the

subdivision’s Master Declaration of Covenants and Restrictions, which, he

explained, went “above and beyond” what the 2008 Zoning Ordinance required for

property in the Lake Residential District.

[¶9.] Schumacher also testified about what occurred at the commission

meetings. In particular, he testified that he never received an explanation for the

“no” votes, despite asking for one. Instead, he was told that “we don’t have to

provide that.”

[¶10.] On cross-examination, Schumacher acknowledged that the subdivision

proposal was met with substantial opposition from current Swan Lake residents.

He recalled fielding questions at a local informational meeting and stated, “I had,

like, 60 people standing in the front yard rapid-firing me.” Specifically, Schumacher

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Cite This Page — Counsel Stack

Bluebook (online)
2024 S.D. 28, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mrose-development-co-v-turner-county-bd-of-commissioners-sd-2024.