Spinell Homes, Inc. v. Municipality of Anchorage

78 P.3d 692, 2003 Alas. LEXIS 92, 2003 WL 21994972
CourtAlaska Supreme Court
DecidedAugust 22, 2003
DocketS-10546
StatusPublished
Cited by6 cases

This text of 78 P.3d 692 (Spinell Homes, Inc. v. Municipality of Anchorage) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spinell Homes, Inc. v. Municipality of Anchorage, 78 P.3d 692, 2003 Alas. LEXIS 92, 2003 WL 21994972 (Ala. 2003).

Opinion

OPINION

EASTAUGH, Justice.

I. INTRODUCTION

A homebuilding company challenges conditions the Municipality of Anchorage imposed on the issuance of building permits and certificates of occupancy for certain homes. Because the Anchorage Municipal Code gave the municipality the authority to impose the challenged conditions, we affirm the decision of the superior court denying the plaintiffs motion for summary judgment and granting summary judgment to the municipality. _

II. FACTS AND PROCEEDINGS

Spinell Homes, Inc. constructs houses on property it acquires; it then sells the completed homes to third-party purchasers. Spinell must obtain a building permit from the Municipality of Anchorage before construct ing a home in Anchorage. 1 After completing the home, Spinell must obtain a certificate of occupancy from the municipality before the structure can be occupied. 2

Between 1995 and 1999 Spinell purchased from various development corporations all or large parts of five residential subdivisions in Anchorage: the Michael Subdivision, the Ponds Subdivision, the Independence Park Subdivision, the Ridgemont Subdivision, and the Muirwood Park Subdivision. The original subdividers of those tracts had entered into subdivision agreements with the municipality as required by the Anchorage Municipal Code (AMC) 3 The code required that these subdivision agreements contain specified information, including a designation of public improvements to be constructed by the subdivider and by the municipality, and the specifications and scheduled completion dates for those improvements. 4

The original subdivider for the Michael Subdivision entered into a subdivision agreement with the municipality to construct and install certain public improvements, including streets, sidewalks, curbs, gutters, and drainage. Spinell eventually acquired all the lots in the Michael Subdivision from Columbia Investments, Inc., another subdivider. Columbia and Spinell agreed that Columbia would construct all of the improvements for the subdivision in accordance with the Municipality's Standard Specifications (MASS). But Columbia failed to complete the improvements to MASS standards.

*695 After Spinell acquired the Michael Subdivision, it applied to the municipality for building permits to construct homes. The municipality refused to issue any building permits for lots in the Michael Subdivision until the streets were constructed to MASS specifications. Spinell demanded that Columbia construct the streets to MASS standards, but Columbia refused. The municipality then proposed to Spinell that it would conditionally accept the streets even though they did not meet MASS standards if Spinell would warrant the streets for five years and post a $100,000 guarantee bond. Spinell provided the warranty (in the form of two trust deeds), and the municipality then issued building permits to Spinell for the Michael Subdivision.

The original subdividers in the Michael, Ponds, and Independence Park Subdivisions had each entered into subdivision agreements with the municipality which obligated them to dedicate and construct public improvements, including landscaping easements. Buffer landscaping easements listed on the plat notes burdened some lots in each subdivision.

The municipality refused to issue Spinell final certificates of occupancy (and, in a few instances, building permits) for lots burdened with buffer landscaping easements until the landscaping was installed. For lots on which the municipality withheld final certificates of occupancy, it issued temporary certificates and conditioned final certificates on installation of the landscaping. These temporary certificates allowed the homes to be occupied and enabled Spinell to sell the homes, but they affected the buyer's ability to obtain conventional financing for the homes or resell them before final certificates were issued.

The municipality also required Spinell to install "on lot" landscaping on some individual lots in the Michael and Ridgemont Subdivisions. The plat notes for those lots required the installation of landscaping-in many cases, two or three trees per lot. The municipality issued conditional certificates of occupancy for the homes built on these lots but refused to issue final certificates until the on-lot landscaping was installed.

As a condition for issuing building permits for two lots in the Ridgemont Subdivision, the municipality required Spinell to obtain written approval for the design of its proposed homes from the Independence Park Community Association Design Review Committee, which both parties describe as a homeowners' association. Spinell obtained this permission and the municipality issued the building permits.

As a condition of issuing a building permit for one lot in the Muirwood Park Subdivision, the municipality required Spinell to obtain written verification from the original subdivi-der that Spinell had disturbed no living trees. Spinell presumably met this requirement because the municipality issued the building permit.

In 1999 Spinell filed a complaint against the municipality for inverse condemnation, and also alleged under 42 U.S.C. § 1983 that the municipality had violated Spinell's rights to substantive due process and equal protection and had effected a taking. Spinell sought (1) a declaratory judgment ordering the municipality to issue the relevant final certificates of occupancy, reconvey the performance bond for the Michael Subdivision, and install buffer landscaping and all other public improvements on the Michael Subdivision at the municipality's expense; (2) a permanent injunction preventing the municipality from imposing on the issuance of building permits and certificates of occupancy conditions that are not authorized by the municipality's ordinances; and (8) a permanent injunction preventing the municipality from requiring Spinell to satisfy the obligations of a subdivider. Spinell also sought compensation for the alleged taking, and compensatory damages in an unspecified amount greater than $100,000.

After the superior court granted in part and denied in part the municipality's motion to dismiss, both parties moved for summary judgment. The superior court determined that Spinell's constitutional claims "are predicated on whether the Municipality wrongfully denied Spinell's request for building permits and certificates of occupaney." The court then held that the municipality had authority *696 to require Spinell to comply with municipal requirements as a condition for issuing the permits and certificates. It granted the municipality's summary judgment motion and denied Spinell's summary judgment motion.

Spinell appeals.

III. DISCUSSION

A. Standard of Review

The parties dispute the standard of review. Spinell argues that we should apply our customary de novo standard to a grant of summary judgment.

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Cite This Page — Counsel Stack

Bluebook (online)
78 P.3d 692, 2003 Alas. LEXIS 92, 2003 WL 21994972, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spinell-homes-inc-v-municipality-of-anchorage-alaska-2003.