Robson Ranch Quail Creek, LLC v. Pima County

161 P.3d 588, 215 Ariz. 545, 508 Ariz. Adv. Rep. 38, 2007 Ariz. App. LEXIS 122
CourtCourt of Appeals of Arizona
DecidedJuly 13, 2007
Docket2 CA-CV 2006-0206
StatusPublished
Cited by1 cases

This text of 161 P.3d 588 (Robson Ranch Quail Creek, LLC v. Pima County) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Robson Ranch Quail Creek, LLC v. Pima County, 161 P.3d 588, 215 Ariz. 545, 508 Ariz. Adv. Rep. 38, 2007 Ariz. App. LEXIS 122 (Ark. Ct. App. 2007).

Opinion

OPINION

HOWARD, Presiding Judge.

¶ 1 Appellants Robson Ranch Quail Creek, LLC, and Lawyers Title of Arizona, Inc. (collectively, “Robson”), challenge the trial court’s grant of summary judgment in favor of appellee Pima County and various officials thereof. Robson argues Pima County’s sewer connection fee ordinance, as amended in 2005, is subject to the reasonable relationship requirement of A.R.S. § 11-821, is unreasonable and discriminatory, and unconstitutionally impairs a 1998 contract between Robson and Pima County. We affirm the trial court’s grant of summary judgment on the impairment of contract claim. But, finding the reasonable relationship requirement of § 11-821 applies, and finding a genuine issue of material fact exists regarding whether the fee reasonably relates to the burden imposed on Pima County by Robson’s development, we reverse in part and remand the case.

Background

¶ 2 When reviewing a trial court’s grant of summary judgment, we view the evidence and reasonable inferences from it in the light most favorable to the nonmoving party. Link v. Pima County, 193 Ariz. 336, ¶ 12, 972 P.2d 669, 673 (App.1998). Pima County charges fees for connection to its sewerage *547 system. See Pima County Code §§ 13.20.040 and 13.20.045. The County assesses the connection fee per “fixture unit equivalent.” § 13.20.045(A)(1). Prior to amendment in 2005, the rate structure was two tiered. When an applicant or prior property owner constructed qualifying sewer improvements, the County assessed a discounted, “participating” rate. For all other units, it assessed a higher, “nonparticipating” rate. Each rate was a flat fee per fixture unit equivalent; thus, the discount for participating applicants was not based on the amount actually spent constructing sewer improvements.

¶ 3 In December 2005, the County amended § 13.20.045 and ehminated the words “participating” and “nonparticipating” in the fee ordinance. See Pima County Ordinance No. 2005-112 (“the 2005 ordinance”). Instead, there is now a flat fee per fixture unit equivalent for all residential applicants. § 13.20.045(A)(1). The construction of a qualifying sewer improvement entitles the applicant to a discount on connection fees. § 13.20.045(B)(1). But, unlike under the pri- or system, the discount is tied to the actual cost of construction. “Once the aggregate connection fee discounts received for an area under development exceed the net construction cost of the qualifying public sewer conveyance improvement ..., no further connections within the area under development shall receive connection fee discounts based on the construction of that qualifying public sewer improvement.” § 13.20.045(B)(2).

¶4 Robson is the current developer of Quail Creek Resort Community in Sahuarita. The County adopted a specific plan in 1989 entitling Emerald Homes, then the developer of Quail Creek, to construct up to 5,000 homes on the specific plan property. Pursuant to a 1989 agreement, Emerald Homes constructed an off-site sewerage system to serve Quail Creek. It also developed a portion of the specific plan property.

¶ 5 In 1997, Saddlecreek Enterprises, LLC, acquired the Quail Creek property and, in 1998, entered into an agreement with the County (“the 1998 agreement”) to construct “an extension of the public sewerage system.” The parties agree that, as a successor in interest to Saddlecreek, Robson is now a party to this agreement.

¶ 6 In 1999, Robson acquired the portion of the specific plan property that had not yet been sold to third parties, and before August 2000, it also acquired adjacent property that was not part of the 1989 specific plan. Sahu-arita annexed both the specific plan property and the adjacent property after entering into a development and pre-annexation agreement with Robson. Sahuarita adopted an amended specific plan in October 2000 spreading development of Quail Creek over the original specific plan property and some of the adjacent property without increasing the limit of 5,000 homes included in the original specific plan.

¶7 For Robson to develop the property that was not part of the 1989 specific plan, the County required it to enter into sewer service agreements characterizing the lots on that property as nonparticipating for purposes of sewer connection fees. Believing these lots should have been participating, Robson sued the County in November 2004, claiming that applying the nonparticipating rate was contrary to Arizona statutes and unconstitutional. The trial court granted the County summary judgment on these claims, and Robson does not challenge those rulings on appeal. 1

¶ 8 Prior to those rulings, the County had passed the 2005 ordinance amending § 13.20.045. Also prior to those rulings, and based on a stipulation of the parties, Robson filed an amended complaint, adding challenges to the 2005 ordinance. Robson alleged that the 2005 ordinance violated state law and unconstitutionally impaired the contractual relationship established in the 1998 agreement. The County again moved for summary judgment, which the trial court *548 granted. After the court entered final judgment in favor of the County, Robson appealed.

Applicability of A.R.S. § 11-821

¶ 9 Robson argues the trial court erred by concluding A.R.S. § 11-821 does not require sewer connection fees imposed on developers to “bear a reasonable relationship to the burden imposed on the county.” § 11-821(D)(4)(b). We review this issue de novo. See Stein v. Sonus USA, Inc., 214 Ariz. 200, ¶ 3, 150 P.3d 773, 774 (App.2007) (applicability of statute reviewed de novo); Bothell v. Two Point Acres, Inc., 192 Ariz. 313, ¶ 8, 965 P.2d 47, 50 (App.1998) (propriety of summary judgment reviewed de novo).

¶ 10 The parties dispute the standard by which the validity of the ordinance must be measured. Robson argues § 11-821 requires the fees to bear a reasonable relationship to the burden imposed on the County by the particular development. The County, on the other hand, argues that, instead of applying the reasonable relationship requirement, we must uphold the 2005 ordinance unless it is arbitrary or not rationally related to a legitimate public interest. See Home Builders Ass’n of Cent. Ariz. v. City of Scottsdale, 187 Ariz. 479, 482, 930 P.2d 993, 996 (1997) (municipality’s generally applicable land use regulations are legislative decisions and will be upheld unless “arbitrary and without a rational relation to a legitimate state interest”). But an ordinance that conflicts with a statute is invalid. See id.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hawk v. PC Village Ass'n
309 P.3d 918 (Court of Appeals of Arizona, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
161 P.3d 588, 215 Ariz. 545, 508 Ariz. Adv. Rep. 38, 2007 Ariz. App. LEXIS 122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robson-ranch-quail-creek-llc-v-pima-county-arizctapp-2007.