Norfolk 102, LLC v. City of Norfolk

CourtSupreme Court of Virginia
DecidedFebruary 28, 2013
Docket120634
StatusPublished

This text of Norfolk 102, LLC v. City of Norfolk (Norfolk 102, LLC v. City of Norfolk) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Norfolk 102, LLC v. City of Norfolk, (Va. 2013).

Opinion

PRESENT: All the Justices

NORFOLK 102, LLC, T/A BAR NORFOLK, ET AL. OPINION BY v. Record No. 120634 CHIEF JUSTICE CYNTHIA D. KINSER February 28, 2013 CITY OF NORFOLK, ET AL.

FROM THE CIRCUIT COURT OF THE CITY OF NORFOLK Norman A. Thomas, Judge

Norfolk 102, LLC, and Norfolk 302, LLC, are business

establishments operating in the City of Norfolk (the City) and

trading as Bar Norfolk and Have a Nice Day Café (the Café),

respectively. In 2009, the City of Norfolk Council (the City

Council) revoked a blanket special exception permitting Bar

Norfolk and the Café to operate as "Entertainment

Establishments" serving alcoholic beverages for on-site

consumption and denied their individual applications for special

exceptions to continue such operations. Both establishments now

assert that the City Council's actions impaired their vested

rights and that the manner in which the City Council executed

these actions violated their statutory notice and constitutional

due process rights.

Bar Norfolk and the Café, however, cannot claim vested

rights under Code § 15.2-2307 to a land use that was

impermissible under the applicable zoning ordinance when they

opened for business, and no City official issued a determination

under Code § 15.2-2311(C) authorizing the use of their premises in a manner not otherwise permitted under the existing zoning

ordinances. Furthermore, Bar Norfolk and the Café had notice of

and an opportunity to be heard at the City Council meeting when

these matters were considered. Therefore, we will affirm the

circuit court's judgments.

I. RELEVANT FACTS AND PROCEEDINGS

Bar Norfolk and the Café are located in the City along the

Elizabeth River in a business park known as the Waterside

Festival Marketplace (Waterside). Waterside originally opened

in 1983, at which time it was in the zoning district SPI-1:

Downtown Waterfront Special Public Interest District. Permitted

uses in that district included "[e]ating and drinking

establishments" with the sale of alcoholic beverages for on-

premises consumption provided an establishment obtained a "use

permit." Prior to Waterside's opening, the City Council granted

Waterside's developer such a use permit by enacting Ordinance

32,160 (1983 Ordinance).

That ordinance stated:

[A] Use Permit is hereby granted to Waterside Associates authorizing the use of property as an urban marketplace type shopping center having uses such as . . . restaurants, including the sale of beer, wine and mixed beverages for on-premises consumption within such specific premises as may be licensed by the Virginia Alcoholic Beverage Control [ABC] Commission on the herein described property:

2 All that certain lot, piece or parcel of land known and designated as Parcel R-1 on that certain plat entitled "Plat of Property – Parcel R-1" attached . . . to the Deed of Lease dated November 25, 1981, between Waterside Associates and the Norfolk Redevelopment and Housing Authority . . . .

As originally constructed, Waterside was situated entirely

within Parcel R-1 encompassed by the 1983 Ordinance.

In addition to granting the blanket use permit to

Waterside, the 1983 Ordinance authorized the issuance of "Sub-

Use Permits," which were "to distinguish for enforcement

convenience a permit issued for specific ABC licensed premises

as the result of and deriving from the existence of the general

use permit for the entire Waterside premises." An entity

leasing space in Waterside and licensed by the ABC Commission

was required to apply to the City's zoning administrator for a

Sub-Use Permit to operate its proposed business.

Following enactment of the 1983 Ordinance, the City Council

took several actions with respect to Waterside and its zoning.

First, it re-subdivided several adjoining parcels of real estate

and combined them with the original Parcel R-1, thereby vacating

all the existing property lines and expanding the size of the

original parcel upon which Waterside was located. Waterside was

3 then situated on property designated Parcel R-1-A. 1 In 1992, the

City Council enacted a new comprehensive zoning ordinance,

placing the entire Waterside parcel in a new D-1 Downtown

Waterfront District. 2 Uses in that district requiring the City

Council's approval as a special exception included "Eating and

Drinking Establishments" and "Entertainment Establishments." An

ordinance enacted in 1997 (1997 Ordinance), in turn, defined the

terms "Eating and Drinking Establishment" and "Entertainment

Establishment." The 1997 Ordinance also created the permitted

use, not requiring a special exception, of an "Eating

Establishment" and defined that term as well. 3

1 Sometime after the re-subdivision, the Waterside structure itself was expanded. 2 Although the 1992 zoning ordinance repealed the City's previous comprehensive zoning ordinance dating from 1968, it nevertheless provided that "all zoning clearances, permits, site plan approvals and other such regulatory authorizations as have been granted or duly applied for . . . shall, at option of the grantor or applicant, be governed by the substantive provisions" of the 1968 zoning ordinance. 3 The term "Eating Establishment" was defined as a "business establishment whose function is the preparation and selling of unpackaged food to the customer in a ready to consume state, and where the customer consumes these foods while seated at tables or counters primarily located within a building. There shall be no sale of alcoholic beverages." The term "Eating and Drinking Establishment" was defined as an "eating establishment also having as a function the sale of beer, wine and/or mixed beverages for consumption on the premises and requiring a retail on-premises license from" the ABC Commission. "Such establishment shall not provide entertainment, but may have as an accessory function live performances with only one nonelectronic musical instrument and/or recorded background music and a dance floor not to exceed 10% of the seating area of

4 In June 1998, the Café entered into an agreement to lease

space in the expanded Waterside structure; in January 1999, Bar

Norfolk did the same. And in June 1998 and March 1999,

respectively, the Café and Bar Norfolk received a document

signed by the City's zoning administrator and titled "Cash

Receipt." On the top, right-hand side, each document bore the

inscription "Zoning Clearance Certificate," and in a box titled

"Description," the words "Zoning Clearance for Business License"

were typed. On a line next to the heading "License Category"

someone had written the words "Eating Place," a land use that

did not exist under the terms of the 1992 comprehensive zoning

ordinance or the definitions enacted in the 1997 Ordinance.

Both businesses opened in March 1999 as "Entertainment

Establishments" and, having obtained ABC licenses, both sold

alcoholic beverages for on-premises consumption.

In May 1999, the City Council enacted Ordinance 39,579

(1999 Ordinance), titled "An Ordinance Authorizing Operation of

the Waterside Festival Marketplace as an Entertainment

Establishment." The 1999 Ordinance granted an "Adult Use

Special Exception . . . authorizing the operation of an

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