Waikiki Marketplace Investment Co. v. Chair of Zoning Board of Appeals

949 P.2d 183, 86 Haw. 343, 1997 Haw. App. LEXIS 194
CourtHawaii Intermediate Court of Appeals
DecidedNovember 25, 1997
Docket17001
StatusPublished
Cited by20 cases

This text of 949 P.2d 183 (Waikiki Marketplace Investment Co. v. Chair of Zoning Board of Appeals) is published on Counsel Stack Legal Research, covering Hawaii Intermediate Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Waikiki Marketplace Investment Co. v. Chair of Zoning Board of Appeals, 949 P.2d 183, 86 Haw. 343, 1997 Haw. App. LEXIS 194 (hawapp 1997).

Opinion

WATANABE, Judge.

Appellant-Appellant Waikiki Marketplace Investment Company, a Hawai'i general partnership (Appellant), appeals from the March 11, 1993 Order of the First Circuit Court (the circuit court) which denied, for lack of jurisdiction, Appellant’s appeal from the July 14,1992 Order of Appellee-Appellee Zoning Board of Appeals (ZBA) of the City and County of Honolulu (County) (the ZBA Order). The ZBA Order had, in turn, denied Appellant’s appeal from the August 27, 1991 “Notice of Order 91/LUV-91” issued by Appellee, the Director of the County Department of Land Utilization, which ordered Appellant to: remove a masonry storage addition allegedly constructed in violation of Land Use Ordinance (LUO) § 7.80; pay a $200 fine by September 26, 1991; and in the event the violation was not corrected by September 26, 1991, pay an additional daily fine of $50 until corrective action was taken. (Hereafter, the County Department of Land Utilization will be referred to as the DLU, and the Director of the DLU will be referred to as the DLU Director.) The daily fine was subsequently increased by the DLU Director to $200 a day.

We reverse.

BACKGROUND

A.

On February 1, 1991, the County Building Department (Building Department) issued a Notice of Violation (the Notice) to Scruples, Inc. (Scruples), a nightclub located at 2310 Kühió Avenue. The Notice informed Scruples that: (1) a masonry storage addition (the addition) “was constructed at the rear of *346 the property without first obtaining a building permit[,]” in violation of Revised Ordinances of Honolulu (ROH) chapter 18, § 18-3.1; (2) “[t]he addition is located within the 10’ rear yard where structures are not allowed[,]” in violation of ROH chapter 21A, §§ 7.80-4.B.1 and 7.80-3.A; and (3) a “Special Design Permit has not been obtained for the project!,]” in violation of ROH chapter 21A § 7.20-2. The Notice instructed Scruples to “[rjemove the addition located within the 10’ rear yard” where structures are not allowed, and notify Building Department inspector Edwin Fukushima when the corrections were made. The Notice also stated:

If no action is taken within thirty (30) days to make corrections:
1. This matter will be referred to the Prosecuting Attorney and/or Corporation Counsel for appropriate action; and/or
2. This matter will be referred to the [DLU] for CIVIL FINES for violations of the [LUO]; and/or
3. A Notice of Order will be issued by the Building Department imposing CIVIL FINES for the specified violations.

The matter was subsequently referred to the DLU for follow-up.

On August 27, 1991, the DLU issued Notice of Order No. 91/LUV-91 (the DLU Order) to Appellant, as lessee of the property. 1 The DLU Order found Appellant to be in violation of LUO § 7.80 because “[a] maso-nary [sic] storage addition was constructed within the 10-foot rear yard setback area.” The DLU Order imposed a one-time fine of $200, ordered that the structure be removed by September 26, 1991, and noted that a daily fine of $50 would be imposed if the structure were not removed by September 26, 1991. The DLU Order, which was delivered to Appellant by certified mail on August 28,1991, also stated as follows:

This order shall become final on September 26, 1991. On or before the final date, any person(s) subject to an order may appeal the order. However, an appeal does not suspend any provision of this order, including the imposition of the daily fine. This means that before the order becomes final, you must either correct or appeal the order. The fine must be paid even if you take corrective action.
The appeal must be received within 30 calendar days from the date of mailing or personal service of the order. The appeal must be made in accordance with the Administrative Rules of the [ZBA]. Essentially, the [ZBA] rules require that a petitioner show that the [DLU] Director based his action on an erroneous finding of a material fact, and/or that the [DLU] Director acted in an arbitrary or capricious manner, or manifestly abused his discretion. (The role of the [ZBA] is not to review the merits of the case.)

On September 27, 1991, Appellant filed with the ZBA a petition for appeal from the action of the DLU Director (the petition). Appellant claimed that the addition was constructed prior to the enactment of the LUO in 1984 and that at the time of its construction, the addition was subject to the Comprehensive Zoning Code (the CZC), which did not impose any rear setback requirement for the property. Therefore, Appellant argued, the addition was grandfathered in as a lawful “nonconforming use” or “nonconforming structure” under the LUO. Without conceding the lawfulness of the use of the addition, Appellant also informed the ZBA that “as an alternative remedy, [Appellant] has filed an application for a variance with the [DLU].”

On May 14, 1992, the ZBA held a public hearing and received the following stipulations of fact:

• The storage addition was constructed prior to adoption of the LUO in 1984.
• The storage addition could have been legally built under the CZC, the precursor to the LUO.

*347 Although conceding that the addition was a permissible use under the zoning ordinances when constructed, the DLU’s attorney argued, for the first time at the hearing, that the addition was nevertheless in violation of the LUO:

The controversy in this case is whether or not that structure or addition was legally constructed. It is the [DLU] Director’s position that this addition was built without a building permit and therefore it is not a legal construction and therefore it cannot be grandfathered in as a nonconforming use because it was never a legal addition to begin with.

Undisputed evidence was introduced at the hearing that the Building Department had destroyed all pre-July 17,1978 building plans for work valued at less than $100,000. Therefore, no official records existed that could be used to determine whether a building permit for the addition had ever been obtained. Although the DLU conceded that a building permit may have been obtained for the addition, its position at the hearing was that because Appellant did not place into evidence a building permit for the addition and affirmatively prove that a permit had been issued, Appellant had failed to satisfy its burden to prove that the addition was a “previously lawful” “nonconforming use” or “nonconforming structure” under the LUO.

B.

The ZBA is established pursuant to Revised Charter of the City and County of Honolulu (Revised Charter) § 6-909 (1994 ed.), which provides:

There shall be a zoning board of appeals which shall consist of five members. The board shall be governed by the provisions of Section 13-103 of this charter. The zoning board of appeals shall hear and determine appeals from the actions of the director of land utilization in the administration of the zoning code and subdivision ordinances and any rules and regulations adopted pursuant thereto.

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Bluebook (online)
949 P.2d 183, 86 Haw. 343, 1997 Haw. App. LEXIS 194, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waikiki-marketplace-investment-co-v-chair-of-zoning-board-of-appeals-hawapp-1997.