Riggings Homeowners, Inc. v. Coastal Resources Commission

747 S.E.2d 301, 228 N.C. App. 630, 2013 WL 3991789, 2013 N.C. App. LEXIS 818
CourtCourt of Appeals of North Carolina
DecidedAugust 6, 2013
DocketNo. COA12-1299
StatusPublished
Cited by25 cases

This text of 747 S.E.2d 301 (Riggings Homeowners, Inc. v. Coastal Resources Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Riggings Homeowners, Inc. v. Coastal Resources Commission, 747 S.E.2d 301, 228 N.C. App. 630, 2013 WL 3991789, 2013 N.C. App. LEXIS 818 (N.C. Ct. App. 2013).

Opinions

HUNTER, JR., Robert N., Judge.

The North Carolina Coastal Resources Commission (the “Commission”) appeals atrial court order: (i) reversing the Commission’s denial of a variance request; and (ii) remanding the case to the Commission for new hearing. Riggings Homeowners, Inc. cross-appeals, alleging: (i) the trial court erred in concluding the Commission did not need to make a “reasonable use” determination; (ii) the Commission’s variance denial violated the takings doctrine; and (iii) the Commission’s variance denial violated the separation of powers doctrine. Upon review, we affirm.

I. Facts & Procedural History

Riggings Homeowners, Inc. (“The Riggings”) manages a homeowners’ association (a North Carolina non-profit corporation) in Kure Beach. The Riggings operates forty-eight condo units located in four buildings facing the Atlantic Ocean. The condos were built in 1985.

Immediately south of The Riggings is Fort Fisher, a North Carolina state park. From July 1995 to January 1996, the State built a permanent stone revetment to protect Fort Fisher from erosion. Although the Coastal Area Management Act (“CAMA”) generally does not allow permanent revetments, the Commission allowed this revetment1 under the historic sites exception.

Immediately north of The Riggings is the Fort Fisher Coquina Outcrop Natural Area. Coquina rock formations provide a natural barrier against beach erosion. In 1926, the New Hanover County Board of County Commissioners allowed a government contractor to use the coquina rock to complete a section of U.S. Highway 421. The contractor removed a 50-100 foot strip of coquina rock near The Riggings. On 6 February 1982, the Fort Fisher Coquina Outcrop Natural Area was entered on the North Carolina Registry of Natural Heritage Areas.

These two state actions have made The Riggings’ beachfront especially prone to erosion. First, the removal of the coquina rock in 1926 [633]*633took away a natural barrier to erosion. Second, the construction of the stone revetment at Fort Fisher protected the beachfront there but at The Riggings’ beachfront increased erosion rates. This combination of state action makes The Riggings’ beachfront sui generis.

In 1985, Kure Beach’s local CAMA officer issued a permit allowing The Riggings to place a sandbag revetment on its beachfront because the condos were “imminently threatened” by erosion.2 On 3 December 1994, the Division of Coastal Management (“DCM”)3 issued CAMA General Permit No. 13355-D, authorizing repair of the 1985 sandbags and placement of new sandbags. Permit No. 13355-D allowed the sandbags to remain in place until 1 May 2000. After 1 May 2000, The Riggings was precluded from maintaining the sandbags without a variance.4

From 2000 to 2005, The Riggings applied for and received three variances to maintain the sandbags: (i) on 26 May 2000, the Commission. granted a variance allowing the sandbags to remain in place until 26 May 2001; (ii) on 4 February 2002, the Commission granted another variance, allowing the sandbags to remain in place until 23 May 2003; (iii) on 9 May 2003, a new variance allowed the sandbags to remain in place until 9 May 2005. Meanwhile, The Riggings pursued several permanent erosion solutions.

One potential solution was beach renourishment. In 2000, the U.S. Army Corps of Engineers undertook the Carolina/Kure Beach Renourishment Project. This project covered 98% of Kure Beach, but stopped 1,500 feet short of The Riggings’ beachfront. The Riggings was unsuccessful in efforts to convince the U.S. Army Corps of Engineers to extend the renourishment project to The Riggings’ beachfront. In a 25 February 2000 letter to U.S. Representative Mike McIntyre, the U.S. Army Corps of Engineers explained that it could not extend the renourishment project to The Riggings’ beachfront because the “[coquina] rock outcropping[s] [have] been declared a natural heritage area by the North Carolina Natural Heritage Program and burying them was not an acceptable alternative.” A second Carolina/Kure Beach Renourishment Project in 2007 renourished 98% of Kure Beach, but again stopped 1,500 feet short of The Riggings’ beachfront.

[634]*634Concurrently, The Riggings explored rebuilding its condos across the street on the landward side of U.S. Highway 421. The Riggings contacted the North Carolina Division of Emergency Management (“NCDEM”), the Natural Heritage Trust Fund, and the DCM for financial assistance with this venture. It requested that the Town of Kure Beach assist by seeking FEMA grants to relocate these buildings.

In July 2004, the Town of Kure Beach received a FEMA pre-disaster grant for a $3,617,624 project to: (i) acquire The Riggings’ beachfront real estate; and (ii) rebuild The Riggings on the landward side of U.S. Highway 421. FEMA agreed to provide $2,713,218 (75% of the costs), but required The Riggings’ homeowners to contribute the remaining $904,406 (25% of the costs).- This grant, by its terms, would expire on 30 June 2007.

By March 2005, The Riggings had hired architects, surveyors, and other contractors to finalize plans to relocate the buildings to U.S. Highway 421’s landward side. On 25 April 2005, the Commission granted The Riggings another variance to allow the sandbags to remain in place “until the FEMA grant expires in June, 2007.” The variance order also stated, “Petitioner shall be responsible for removal of the sandbags prior to expiration of the FEMA grant.”

The Riggings approached its homeowners to discuss funding the remaining $904,406 for the project. On 1 May 2006, the President of The Riggings’ homeowners’ association notified the Mayor of Kure Beach that The Riggings’ homeowners voted to reject the FEMA grant. The homeowners cited several reasons for this decision: (i) some homeowners could not contribute the required capital; (ii) the grant did not guarantee that future permitted uses for the oceanfront real estate would not change; and (iii) the holders of some homeowners’ mortgages did not consent to the project.

As a result, on 17 May 2006 the Mayor of Kure Beach requested that NCDEM terminate the FEMA grant. On 20 June 2006 a NCDEM officer notified the DCM that the FEMA grant was terminated. On 10 July 2006, a DCM district manager notified The Riggings that it had 30 days to remove the sandbags.

However, The Riggings did not comply. On 15 August 2006, the DCM sent The Riggings a Notice of Violation, requiring removal of all sandbags. On 18 September 2006, the DCM sent The Riggings a Notice of Continuing Violation.

Meanwhile, on 22 August 2006, The Riggings applied for a new variance under N.C. Gen. Stat. § 113A-120.1 and 15AN.C.A.C. 7J.0700 while it [635]*635pursued a new beach renourishment project (the “Habitat Enhancement Project”). The relevant statute states that:

(a) Any person may petition the Commission for a variance granting permission to use the person’s land in a manner otherwise prohibited by rules or standards prescribed by the Commission, or orders issued by the Commission, pursuant to this Article. To qualify for a variance, the petitioner must show all of the following:
(1) Unnecessary hardships would result from strict application of the rules, standards, or orders.

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747 S.E.2d 301, 228 N.C. App. 630, 2013 WL 3991789, 2013 N.C. App. LEXIS 818, Counsel Stack Legal Research, https://law.counselstack.com/opinion/riggings-homeowners-inc-v-coastal-resources-commission-ncctapp-2013.