TAC Stafford

CourtCourt of Appeals of North Carolina
DecidedApril 5, 2022
Docket21-229
StatusPublished

This text of TAC Stafford (TAC Stafford) 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
TAC Stafford, (N.C. Ct. App. 2022).

Opinion

IN THE COURT OF APPEALS OF NORTH CAROLINA

2022-NCCOA-217

No. COA21-229

Filed 5 April 2022

Iredell County, No. 19 CVS 280

TAC STAFFORD, LLC, a North Carolina Limited Liability Company, Plaintiff,

v.

TOWN OF MOORESVILLE, a North Carolina body politic and corporate, Defendant.

Appeal by defendant from orders entered 10 August 2020 and 23 February

2021 by Judge Martin B. McGee in Iredell County Superior Court. Cross-appeal by

plaintiff from order entered 23 February 2021 by Judge Martin B. McGee in Iredell

County Superior Court. Heard in the Court of Appeals 14 December 2021.

Scarbrough, Scarbrough & Trilling, PLLC, by Madeline J. Trilling and James E. Scarbrough, for plaintiff-appellee/cross-appellant.

Cranfill Sumner LLP, by Steven A. Bader and Patrick H. Flanagan, for defendant-appellant/cross-appellee.

ZACHARY, Judge.

¶1 Defendant Town of Mooresville (“the Town”) appeals from the trial court’s 10

August 2020 order granting Plaintiff TAC Stafford, LLC’s motion for summary

judgment, denying the Town’s motion for summary judgment, and issuing a writ of

mandamus “requiring [the Town] to take all necessary steps to authorize the issuance

of development approvals for the Stafford Subdivision without regard to construction TAC STAFFORD, LLC V. TOWN OF MOORESVILLE

Opinion of the Court

of the [o]ff-[s]ite [i]mprovements[.]” The Town also appeals from the trial court’s 23

February 2021 order granting in part Plaintiff’s motion for reimbursement of fees and

denying the Town’s motion to stay. Lastly, Plaintiff cross-appeals from the trial

court’s 23 February 2021 order denying in part its motion for reimbursement of

expenditures and recovery of attorneys’ fees and costs.

¶2 After careful review, we affirm the 10 August 2020 order. As for the 23

February 2021 order, we affirm in part, reverse in part, and remand to the trial court.

Background

¶3 In 2014, Plaintiff purchased the Stafford Subdivision property (the

“Subdivision”), which was zoned R-3 (Single Family Residential-3), allowing for

development by right of three residential units per acre. Plaintiff submitted concept

plans for the Subdivision to the Town, and on 21 January 2015, the Town informed

Plaintiff via a series of emails first that the concept plans were approved, then that

the approval was subject to the completion of a traffic impact analysis (“TIA”) and the

notation on the plan of “any required on-site and off-site improvements[.]”

¶4 Pursuant to a preexisting agreement, the Town selected Ramey Kemp &

Associates, Inc. (“Ramey Kemp”) to prepare the TIA, an expense for which Plaintiff

was required to reimburse the Town. On 13 August 2015, Ramey Kemp completed

and sealed the TIA. Still seeking the development approvals, Plaintiff entered into a

Mitigation Measures Agreement (“MMA”) with the Town on 4 November 2015. The TAC STAFFORD, LLC V. TOWN OF MOORESVILLE

MMA obligated Plaintiff to implement certain mitigation measures, including various

improvements to off-site public transportation locations (the “off-site improvements”)

up to 2.3 miles away from the Subdivision, “as a condition of development.” The MMA

also conditioned the issuance of certificates of occupancy (“COs”) for certain units of

the Subdivision on completion of the off-site improvements.

¶5 Following minor changes to the Subdivision concept plan, on 6 March 2017,

the parties executed an amended MMA. In its attempt to complete its obligations

under the MMA, Plaintiff spent a total of $993,584.00. However, Plaintiff was

ultimately unable to purchase rights-of-way from the owners of various properties

necessary to complete the off-site improvements. Plaintiff requested that the Town

condemn the properties, pursuant to the Town’s preexisting policy concerning the

private acquisition of property to facilitate transportation mitigation measures, but

the Town rejected Plaintiff’s request during three meetings between December 2017

and October 2018 at which Plaintiff was not present. The Town then refused to issue

the remaining COs for more than half of the Subdivision, on the ground that Plaintiff

had breached the MMA by failing to complete the required off-site improvements.

¶6 On 30 January 2019, Plaintiff filed a complaint against the Town asserting

multiple claims for declaratory and injunctive relief arising from its obligations to

make the off-site improvements in accordance with the MMA, as well as claims for

inverse condemnation, refund of illegally exacted fees, and breach of contract (if the TAC STAFFORD, LLC V. TOWN OF MOORESVILLE

MMA were found to be enforceable). Plaintiff argued, inter alia, that the Town lacked

authority under N.C. Gen. Stat. § 160A-372 (2019)1 to require the off-site

improvements as part of a by-right approval process for the Subdivision. Plaintiff

further petitioned the trial court to issue a writ of mandamus directing the Town to

take all necessary steps to issue COs and any other required developmental approvals

for the Subdivision, and moved for attorneys’ fees and costs. The Town filed its

answer, generally denying the allegations of Plaintiff’s complaint, on 8 April 2019.

¶7 On 14 February 2020, the Town moved for summary judgment. Plaintiff filed

its own motion for summary judgment on 18 February 2020. On 24 February 2020,

the motions for summary judgment came on for hearing in Iredell County Superior

Court. On 10 August 2020, the trial court entered its order granting Plaintiff’s motion

for summary judgment, denying the Town’s motion for summary judgment, granting

Plaintiff’s petition for a writ of mandamus, and reserving for later determination the

financial issues such as attorneys’ fees, costs, and reimbursement of expenditures.

¶8 On 4 September 2020, the Town filed its notice of appeal. That same day, the

Town filed a motion to stay or enjoin execution or enforcement of the order and writ

1 “Effective 19 June 2020, the General Assembly consolidated the provisions governing planning and development regulations by local governments into a new Chapter 160D of the General Statutes.” 85’ & Sunny, LLC v. Currituck Cty., 279 N.C. App. 1, 2021-NCCOA-422, ¶ 18 n.3, disc. review denied, ___ N.C. ___, 865 S.E.2d 858 (2021). As the former Chapter 160A was in effect at all times relevant to this appeal, we address that Chapter in this opinion. TAC STAFFORD, LLC V. TOWN OF MOORESVILLE

of mandamus, pending its appeal. The Town’s motion came on for hearing on 2

October 2020, at which hearing Plaintiff again raised the financial issues. The trial

court requested supplemental briefing on the financial issues, which both parties filed

in November 2020.

¶9 On 23 February 2021, the trial court entered an order granting in part and

denying in part Plaintiff’s motion for reimbursement of expenditures, determining

that the Town “should return $101,500.00 plus 6% interest per annum” to Plaintiff

pursuant to N.C. Gen. Stat. § 160A-363(e); however, the court determined that the

remaining expenditures were “paid to other entities – not the Town – in the course of

the development of the property and as part of the MMA” and thus those funds were

“not recoverable pursuant to G.S. 160A-363(e)[.]” The trial court also granted

Plaintiff’s motion for attorneys’ fees and costs. The trial court then concluded that

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

Related

WILLOW BEND HOMEOWNERS ASS'N, INC. v. Robinson
665 S.E.2d 570 (Court of Appeals of North Carolina, 2008)
Franklin Road Properties v. City of Raleigh
381 S.E.2d 487 (Court of Appeals of North Carolina, 1989)
Holroyd v. Montgomery County
606 S.E.2d 353 (Court of Appeals of North Carolina, 2004)
Buckland v. Town of Haw River
541 S.E.2d 497 (Court of Appeals of North Carolina, 2000)
Graham County Board of Elections v. Graham County Board of Commissioners
712 S.E.2d 372 (Court of Appeals of North Carolina, 2011)
Morningstar Marinas/Eaton Ferry, LLC v. Warren County
777 S.E.2d 733 (Supreme Court of North Carolina, 2015)
Quality Built Homes Inc. v. Town of Carthage
789 S.E.2d 454 (Supreme Court of North Carolina, 2016)
Justus v. Rosner
821 S.E.2d 765 (Supreme Court of North Carolina, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
TAC Stafford, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tac-stafford-ncctapp-2022.