New Castle County v. Pike Creek Recreational Services, LLC

82 A.3d 731
CourtCourt of Chancery of Delaware
DecidedSeptember 5, 2013
StatusPublished
Cited by21 cases

This text of 82 A.3d 731 (New Castle County v. Pike Creek Recreational Services, LLC) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New Castle County v. Pike Creek Recreational Services, LLC, 82 A.3d 731 (Del. Ct. App. 2013).

Opinion

OPINION

WALLACE, J.

I. Introduction

Plaintiff New Castle County (the “County”) moves for partial summary judgment, asking the Court to uphold alleged land use restrictions created by two agreements — a 1964 agreement and a 1969 [735]*735amendatory agreement (later described and hereinafter referred to collectively as the “Master Plan”) that were executed to govern the development of Pike Creek Valley — and thus prevent Defendant Pike Creek Recreational Services (“PCRS”) from developing any portion of approximately 1771 acres that once operated as a golf course.2 The County argues PCRS must follow the procedural process required by the County’s Unified Development Code (“UDC”) § 40.31.130, also known as the “Restriction Change Statute,” before PCRS can develop any part of the land.3 PCRS has also moved for partial summary judgment requesting an order from this Court that UDC § 40.31.130 does not apply to the subject land either because no such restrictions exist on that acreage, or because the PCRS development plans would not violate any now-extant restrictions.4 Both parties were heard at oral argument before this Court5 in November 2011.

The County first filed a Complaint in November 2010 in the Court of Chancery.6 It seeks to compel PCRS’ compliance with alleged restrictions in the Master Plan and to “maintain and operate an 18-hole golf course.”7 In December 2010, PCRS countered with a mandamus action in Superior Court8 seeking “plan review, engineering approvals and building permits” for its proposed residential development of the Golf Course (the “Mandamus Action”).9 The action in Chancery10 was consolidated with the Mandamus Action.11 For the reasons described below, both Motions for Summary Judgment are GRANTED, in PART.

II. Factual and Procedural Background

In 1964 the four original owners12 of I,141 acres in Mill Creek Hundred, now known as Pike Creek Valley, in New Cas-[736]*736tie County, operated as Mill Creek Ventures and entered into an agreement to develop the land “pursuant to a comprehensive master plan, applying the principles of a planned unit development.”13 At the time, New Castle County was governed by the Levy Court, and the County’s zoning code had not yet evolved to include provisions to accommodate such mixed-use development plans.14 In order to “permit the [Levy Court] to consider the proposed rezoning in the light of specific proposed uses,”15 the original owners voluntarily entered into the 1964 Agreement16 which imposed restrictions on the subject acreage in the event that the Levy Court approved the owners’ petition for rezoning.17 The original owners also made the Levy Court a third-party beneficiary of the 1964 Agreement.18 As such, the Levy Court and its successors were given the power to prospectively enforce the 1964 Agreement.19 Similarly, any amendments to the 1964 Agreement would require approval by the Levy Court or its successors in interest.20 With respect to a golf course, [737]*737the 1964 Agreement set aside open space for “a par three golf course or other recreational use.”21 The original owners requested the area set aside for the par-three golf to be zoned commercial, and in return covenanted to use the land for either commercial recreational purpose or non-profit recreational use only.22 In December 1964, the Levy Court approved the original owners’ development plan as described in the 1964 Agreement and rezoned the subject acreage. As a result, the voluntary restrictions in the 1964 Agreement became effective. The 1964 Agreement was recorded in the Recorder of Deeds office.23

In 1969 the original contracting parties executed an amendment to the 1964 agreement (the “1969 Amendatory Agreement”).24 The 1969 Amendatory Agreement had several distinct objectives: (1) to acknowledge New Castle County Council (the “County Council”) as the Levy Court’s successor in interest, and thus the governmental organization with final jurisdiction over the subject acreage;25 (2) to identify changes in the corporate identities of two of the original owners;26 and (3) to expand the “SUBJECT ACREAGE” from approximately 1,141 acres to approximately 1,364 acres.27 As required by the 1964 Agreement, the 1969 Amendatory Agreement was subject to the County Council’s approval.28 And, just as the restrictions in the 1964 Agreement were contingent upon the County approving certain rezoning, the 1969 Amendatory Agreement was contingent upon the County approving additional zoning changes.29

Whereas the 1964 Agreement had contemplated a par-three golf course, the 1969 Amendatory Agreement required the “set aside and hold[ing] throughout the course of development of the entire SUBJECT ACREAGE the following land use[ ] ... [ojpen spaces [] including 130 acres set aside for an 18-hole golf course....”30 In addition, the contracting parties agreed that 85 additional acres would be set aside as “non-golf open space” for a total of 215 acres set aside for open or recreational [738]*738space.31 At the time of covenanting, the parties agreed that if construction of the golf course did not begin within five years, “the open space set-aside for the [golf course] shall be devoted to uses approved by the Department of Planning and the New Castle County Council.”32 The owners’ requested zoning changes were approved by the County Council in early 1970.33 The voluntary restrictions in the 1969 Amendatory Agreement then became effective.34

Nearly two years later, in September 1971, the then-owners recorded a plan for Pike Creek Golf Course, which established “private open space ... in accordance with the [1964] agreement as amended,” and which again also designated the County as a third-party beneficiary.35 In order to develop the open space set-aside as a golf course without losing the land’s residential zoning designation, the owners sought and were granted a special exception by the County.36 Soon thereafter, the plot was sold to Pike Creek Valley Country Club.37

In 1970, the owners had prepared an “Approved Tentative Master Plan Pike Creek Valley,”38 (the “Distributed Master Plan”) which developers distributed to prospective purchasers of Pike Creek residential units.39 The Distributed Master Plan included a signature block whereby lot purchasers acknowledged that the Distributed Master Plan derived from the Master Plan and could be changed only with approval by the County Council.40

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Cite This Page — Counsel Stack

Bluebook (online)
82 A.3d 731, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-castle-county-v-pike-creek-recreational-services-llc-delch-2013.