Suitum v. Tahoe Regional Planning Agency

520 U.S. 725, 117 S. Ct. 1659, 137 L. Ed. 2d 980, 1997 U.S. LEXIS 3233
Supreme Court of the United States·Decided May 27, 1997·No. 96-243·Published·Cited by 420 cases

Opinions

[728]*728Justice Souter

delivered the opinion of the Court.

Petitioner Bernadine Suitum owns land near the Nevada shore of Lake Tahoe. Respondent Tahoe Regional Planning Agency, which regulates land use in the region, determined that Suitum’s property is ineligible for development but entitled to receive certain allegedly valuable “Transferable Development Rights” (TDR’s). Suitum has brought an action for compensation under Rev. Stat. § 1979, 42 U. S. C. § 1983, claiming that the agency’s determinations amounted to a regulatory taking of her property. While the pleadings raise issues about the significance of the TDR’s both to the claim that a taking has occurred and to the constitutional requirement of just compensation, we have no occasion to decide, and we do not decide, whether or not these TDR’s may be considered in deciding the issue whether there has been a taking in this case, as opposed to the issue whether just compensation has been afforded for such a taking. The sole question here is whether the claim is ripe for adjudication, [729]*729even though Suitum has not attempted to sell the development rights she has or is eligible to receive. We hold that it is.

I

In 1969, Congress approved the Tahoe Regional Planning Compact between the States of California and Nevada, creating respondent as an interstate agency to regulate development in the Lake Tahoe basin. See Lake Country Estates, Inc. v. Tahoe Regional Planning Agency, 440 U. S. 391, 394 (1979). After the 1969 compact had proven inadequate for protection of the lake and its environment, the States proposed and Congress approved an amendment in 1980, requiring the agency to adopt a plan barring any development exceeding such specific “environmental threshold carrying capacities” as the agency might find appropriate. Pub. L. 96-551, Arts. 1(b), V(b), V(g), 94 Stat. 3234, 3239-3241.1

In 1987, the agency adopted a new Regional Plan providing for an “Individual Parcel Evaluation System” (IPES) to rate the suitability of vacant residential parcels for building and other modification. Tahoe Regional Planning Agency Code of Ordinances, ch. 37 (TRPA Code). Whereas any property must attain a minimum IPES score to qualify for construction, id., §37.8.E; App. 145, an undeveloped parcel in certain areas carrying runoff into the watershed (known as “Stream Environment Zones” (SEZ’s)) receives an IPES score of zero, TRPA Code § 37.4.A(3). With limited exceptions not relevant here, the agency permits no “additional land coverage or other permanent land disturbance” on such a parcel. Id., § 20.4.

[730]*730Although the agency’s 1987 plan does not provide for the variances and exceptions of conventional land-use schemes, it addresses the potential sharpness of its restrictions by granting property owners TDR’s that may be sold to owners of parcels eligible for construction, id., §§20.3.C, 34.0 to 34.3. There are three kinds of residential TDR’s. An owner needs both a “Residential Development Right” and a “Residential Allocation” to place a residential unit on a buildable parcel, id., §§21.6.C, 33.2.A; the latter permits construction to begin in a specific calendar year, but expires at year’s end, id., § 33.2.B(3)(b). An owner must also have “Land Coverage Rights” for each square foot of impermeable cover placed upon land. App. 145; see also TRPA Code, ch. 20. All owners of vacant residential parcels that existed at the effective date of the 1987 plan (July 1, 1987), including SEZ parcels, automatically receive one Residential Development Right, id., § 21.6.A; owners of SEZ property may obtain and transfer bonus points equivalent to three additional Residential Development Rights, id., §§35.2.C, 35.2.D. SEZ property owners also receive Land Coverage Rights authorizing coverage of an area equal to 1% of the surface area of their land. Id., §§20.3.A, 37.11. Finally, SEZ owners, like other property owners, may apply for a Residential Allocation, awarded by local jurisdictions in random drawings each year.2 Id., §33.2.B; App. 98-99. All three kinds of TDR’s may be transferred for the benefit of any eligible property in the Lake Tahoe region, subject to approval by the agency based on the eligibility of the receiving parcel for development. TRPA Code §§20.3.C, 34.1 to 34.3.

In 1972, Suitum and her late husband bought an undeveloped lot in Washoe County, Nevada, within the agency’s jurisdiction, and 17 years later, after adoption of the 1987 [731]*731Regional Plan, Suitum obtained a Residential Allocation through Washoe County’s annual drawing. When she then applied to the agency for permission to construct a house on her lot, the agency determined that her property was located within a SEZ, assigned it an IPES score of zero, and denied permission to build. Suitum appealed the denial to the agency’s governing board, which itself denied relief.

After the agency turned down the request for a building permit, Suitum made no effort to transfer any of the TDR’s that were hers under the 1987 plan, and there is no dispute that she still has the one Residential Development Right that owners of undeveloped lots automatically received, plus the Land Coverage Rights for 183 square feet that she got as the owner of 18,300 square feet of SEZ land. It is also common ground that Suitum has the right to receive three “bonus” Residential Development Rights. Although Suitum has questioned the certainty that she would obtain a new Residential Allocation if she sought one, the agency has represented to this Court that she undoubtably would, see n. 2, supra.

Instead, Suitum brought this 42 U. S. C. § 1983 action alleging that in denying her the right to construct a house on her lot, the agency’s restrictions deprived her of “all reasonable and economically viable use” of her property, and so amounted to a taking of her property without just compensation in violation of the Fifth and Fourteenth Amendments.3 App. 15, 16. The agency responded by objecting, among other things, that Suitum’s takings claim was not ripe due to her “failure to obtain a final decision by TRPA as to the amount of development . . . that may be allowed by” the agency. Id., at 10. On cross-motions for summary judgment, the District Court ordered supplemental briefing on [732]*732the nature of Suitum’s TDR’s, including “what [TDR’s] can be transferred in [Suitum’s] case and the procedures, prerequisites and value of such transfer as applicable in this case.” Id., at 89. The agency introduced an affidavit from a real estate appraiser, whose opinion was that the Residential Development Right that Suitum already has, and the three more to which she is entitled, have a market value between $1,500 and $2,500 each; that her Land Coverage Rights can be sold for $6 to $12 per square foot ($1,098~$2,196 total); and that her lot devoid of all TDR's would sell for $7,125 to $16,750. Id., at 181-132.

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Suitum v. Tahoe Regional Planning Agency, 520 U.S. 725, 117 S. Ct. 1659, 137 L. Ed. 2d 980, 1997 U.S. LEXIS 3233 (1997).

520 U.S. 725 (Suitum v. Tahoe Regional Planning Agency) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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