Town of Cheswold v. Central Delaware Business Park

163 A.3d 710, 2017 WL 2463689, 2017 Del. Super. LEXIS 267
CourtSuperior Court of Delaware
DecidedJune 6, 2017
DocketC.A. NO. K13M-08-016 JJC Consolidated Court of Chancery, C.A.; 1574-JJC
StatusPublished
Cited by5 cases

This text of 163 A.3d 710 (Town of Cheswold v. Central Delaware Business Park) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Town of Cheswold v. Central Delaware Business Park, 163 A.3d 710, 2017 WL 2463689, 2017 Del. Super. LEXIS 267 (Del. Ct. App. 2017).

Opinion

OPINION

Clark, J. 1

I. Introduction

These cross motions for summary judgment are before the Court because the Town of Cheswold (hereinafter “Town”) seeks clarification of, or in the alternative relief from, prior identical Stipulated Orders (hereinafter “Stipulated Orders”) of the Superior Court and the Court of Chancery. In 2005, the Town and Central Delaware Business Park (hereinafter “CDBP”) entered into a settlement agreement approved by both the Superior Court and the Court of Chancery in Stipulated Orders to resolve litigation over the Town’s Comprehensive Land Use Ordinance (hereinafter “2005 Ordinance”). Pursuant to these stipulations, CDBP agreed to drop its claims against the Town, and in exchange, the Town published certain amendments to the 2005 Ordinance that preserved the M-l zoning designation for certain parcels of property located in the Central Delaware Business Park (hereinafter “Business Park”). Furthermore, the Town agreed to process five pending site plans and building permit applications and to approve four of those five. The Town now seeks clarification regarding whether it is entitled, under these Stipulated Orders, to change its zoning ordinance with regard to the Business Park. In the alternative, it seeks relief from the Stipulated Orders to permit it to make such amendments.

This matter involved two parallel suits in 2005, resolved by two parallel orders. *715 Accordingly, when the instant dispute arose, two parallel actions were again filed in the Court of Chancery and Superior Court. The Court of Chancery matter was consolidated into the Superior Court action after the presiding judicial officer was designated by the Chief Justice pursuant to Delaware Constitution Article IV, section 13(2) to serve as both Judge and as Vice Chancellor to resolve the matter. For the reasons set forth herein, the Court finds that pursuant to the Stipulated Orders of both courts, the claim recognizing CDBP’s vested rights in the Business Park was finally resolved in 2005. Accordingly, the doctrine of res judicata controls, and absent relief from those judgments, the Town is now barred from relitigating the claim. Furthermore, the Town, on the present record, has not met its burden to justify relief. As a consequence,. CDBP’s rights vested in 2005 and remain so to present.

II. Background and Arguments of the Parties

In 1977, the Town adopted a zoning ordinance (hereinafter “1977 Ordinance”) establishing zoning districts within' the Town including the M-l Industrial District. The 1977 Ordinance set forth a rudimentary enumeration of zoning districts with permitted and proscribed uses. Under this ordinance, the Business Park was zoned as part of the M-l Industrial District.

This ordinance governed land use in the Town until the Town adopted the 2005 Ordinance in an effort to modernize its zoning provisions. The 2005 Ordinance set forth a comprehensive framework for land use in the Town including changes to zoning classifications as well as the permitted and proscribed uses within the new zoning districts. Pursuant to the 2005 Ordinance, the previously designated M-l Industrial District was broken into two new zoning districts designated as the 1-1 Light Industrial and the 1-2 Heavy Industrial zones.

Prior to the enactment of the 2005 Ordinance, the Town held a public hearing. During that hearing, CDBP objected to the changes affecting the M-l Industrial District, since it would affect its Business Park. CDBP proposed an amendment, Article 5A, under which the Business Park would: (1) retain the M-l zoning classification, and (2) continue to be governed by the 1977 Ordinance. At the conclusion of the hearing, the Town Council allegedly adopted Article 5A, meaning that the Business Park would remain zoned as M-l Industrial. At that point, CDBP understood that Article 5A would be incorporated into the 2005 Ordinance.

However, after the public hearing, the Town published the 2005 Ordinance without the Article 5A amendment. Following the publication of the 2005 Ordinance without this provision, a dispute arose between the .Town and CDBP leading to CDBP filing a Superior Court action in 2005 seeking a writ of mandamus, CDBP asked the court to compel the Town to publish and apply Article 5A, as adopted. CDBP also simultaneously filed a parallel action in the Court of Chancery seeking, inter alia, a declaration that CDBP’s rights in the Business Park were vested prior to; the adoption of the revised zoning ordinances.

Before either court rendered a decision, the parties submitted the Stipulated Orders in an effort to resolve both actions. Pursuant to the settlement agreement incorporated into these orders, the Town acknowledged that it had in fact unanimously passed Article’5A on April 4, 2005. The Town confirmed that the “entire [Business Park] property shall continue with M-l Zoning and site plan/building permit procedures under the 1977 Zoning *716 Code.” 2 Furthermore, the Town agreed to amend and republish the 2005 Ordinance reflecting the Business Park’s designation as M-l and subject to the plan and building permit procedures under the 1977 Ordinance. 3 The Town also agreed to process all of the pending site plans and building permits under the 1977 Ordinance and issue approvals of four of those five within 10 days of execution of the stipulations. 4

In compliance with the Stipulated Orders, the Town codified Article 5A in the current Town Code. The net effect of the Stipulated Orders was the recognition of CDBP’s vested rights in the Business Park. In exchange for the Town recognizing CDBP’s vested rights and adopting Article 5A, CDBP dismissed all claims against the Town.

The amendment the Town adopted pursuant to the consent decrees, which is the focus of the instant dispute, is found in Article 5A of its current zoning ordinances. It provides that

[i]t is necessary and desirable; as a matter of public policy, to recognize vested property development rights in order to ensure reasonable certainty, stability, and fairness in the land use planning process and in order to stimulate economic growth .... The following development plans satisfy the provisions of this Article 5A as vested development plans: Record Plan of Central Delaware Business Park .... A vested property right shall be deemed established with respect to any lots, parcels or tract of land [subject to this zoning ordinance], A vested property development right, once established as provided in this Article 5A, precludes any zoning or land use action by the Town of Cheswold which would alter, impair, prevent, diminish, impose a moratorium on development, or otherwise delay the development or use of the property subject to this Article 5A, except with the written consent of the owner of such land. 5

There is no question that this ordinance and its recognition of the “vested property right” applied solely to CDBP.

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Bluebook (online)
163 A.3d 710, 2017 WL 2463689, 2017 Del. Super. LEXIS 267, Counsel Stack Legal Research, https://law.counselstack.com/opinion/town-of-cheswold-v-central-delaware-business-park-delsuperct-2017.