Willdel Realty, Inc. v. New Castle County

270 A.2d 174, 1970 Del. Ch. LEXIS 86
CourtCourt of Chancery of Delaware
DecidedSeptember 30, 1970
StatusPublished
Cited by19 cases

This text of 270 A.2d 174 (Willdel Realty, Inc. v. New Castle County) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Willdel Realty, Inc. v. New Castle County, 270 A.2d 174, 1970 Del. Ch. LEXIS 86 (Del. Ct. App. 1970).

Opinion

DUFFY, Chancellor:

This is an action to invalidate a series of ordinances enacted by the New Castle County Council. Plaintiffs are the legal and equitable owners of approximately 27 acres of land fronting on the Kirkwood Highway which was subject to an “emergency” Ordinance (No. 67-3) passed in January 1967 and a permanent zoning Ordinance enacted in August 1967. This is the decision after final hearing.

A.

Herbert and Blanche Sternstein and Willdel Realty, Inc., purchased the property in February 1965 when it was designated R-2 under the New Castle County Zoning Code. At that time R-2 was a holding classification for an undeveloped area, the ultimate use of which was to be determined as rezoning requests were considered. On April 15, 1966 the Sternsteins and Willdel contracted to sell the property to Vornado, Inc., for $925,000. The sale was conditioned upon rezoning to C-2, a commercial roadside classification. The parties to the contract, at the prompting of the Levy Court which then governed the County, imposed (setback, fencing, access and other) restrictions upon the property by deed. On December 30, 1966 the Levy Court granted C-2 zoning.

As of January 3, 1967, the Levy Court was abolished and the government of New Castle County was reorganized under a County Council. 9 Del.C. § 1101, etc. The first Ordinance (No. 67-1), introduced in Council on January 9, 1967, proposed to rezone the 27 acres from C-2 to R-4, a multifamily residential classification. For procedural reasons this same proposal was later reintroduced as Ordinance No. 67-4. *176 The “emergency” Ordinance, introduced at the same time, prohibited issuance of building permits for land which was subject to proposed zoning changes. 1

As a result of the action taken by Council, disagreement developed between the parties to the sale contract over whether the rezoning condition had been met. A suit for declaratory judgment was filed in this Court in March 1967 to determine their respective obligations. The suit was settled when Vornado purchased a half interest in the property and Wilmington Holding Corporation, a wholly-owned subsidiary of Vornado, purchased the other half.

Site and ground plans in line with the then-existing C-2 classification were offered by Vornado and approved by the County Department of Planning (after some delay). On June 20, 1967 the Department of Planning recommended rezoning to R-4. An application for a building permit was filed on August 11, 1967. Three days later the property was rezoned by the Council from C-2 to R-4.

B.

Plaintiffs make many arguments, the first of which is, rezoning was invalid because they were not given adequate notice of a second public hearing (on July 17, 1967) before the Planning Department. They concede notice of the first hearing.

It was plaintiffs’ burden to put in evidentiary facts to support their argument as to notice. They did not do so and the argument fails for want of proof. 2 , In short, plaintiffs did not prove the absence of notice about which they complain.

C.

I next consider the “emergency” Ordinance. Plaintiffs contend that it amounted to an arbitrary restriction directed principally to the land in question and therefore it should be held invalid as to them.

Emergency ordinances generally have been upheld during an “incubation” period when, for example, rural, undeveloped lands of newly organized municipal corporations or annexed lands to established communities are in jeopardy. 1 Antieau, Ch. VII, §§ 7.29, 7.99(1). In Rathkopf, The Law of Zoning and Planning, 57-35, the “protected territory rule” is put in the same perspective:

“Among the devices adverted to in the earlier days of zoning to prevent the acquisition of vested rights on the basis of permits lawfully issued under the then-existing zoning regulations was that of an interim ordinance prohibiting the erection, alteration or maintenance, within the community or certain designated areas thereof, of that class of use or structure contemplated to be prohibited by the amendatory ordinance.”

Such emergency or stopgap measures are necessary because, as stated in 58 Am.Jur., Zoning, § 137:

“ * * * it takes much time to work out the details of a comprehensive zoning plan, and * * * it would be destructive of the plan if, during the period of its incubation, persons seeking to evade its operation should be permitted to enter upon a course of construction which *177 would progress so far as to defeat, in whole or in part, the ultimate execution of the plan.”

This case, however, does not come within that rationale. In November, shortly before the Ordinance was passed, a comprehensive plan had been adopted by the County. And the land here involved, although undeveloped, is situated within a highly developed area for which patterns of construction and development were already established. The Council may have been in an incubation period, but the property (and the surrounding area) certainly was not. In short, the facts do not show that the County is entitled to rely upon the “incubation” theory as a basis for denying a building permit to plaintiffs.

But that does not end the matter.

It is incumbent upon plaintiffs to show that but for the Ordinance they would have been entitled to a building permit. And they have failed to do this. Viewed realistically, the Ordinance undoubtedly had a chilling effect on plaintiffs’ plans to begin construction. But by its terms the Ordinance ended ninety days after it was enacted. Thereafter plaintiffs were free to apply for a permit, but they did not do so until some three months after the “emergency” period expired.

As plaintiffs argued at trial, there is often a time lag between rezoning and application for a building permit while site studies are made and related engineering is done. The record is ambiguous on what that amounted to in this case, but I cannot find as a fact that plaintiffs had completed such work and were prepared to apply for a building permit at any time during the period in which the Ordinance was in effect.

To sum up: I doubt that Ordinance No. 67-3 could be validly applied to these plaintiffs, but they have not shown that they were denied a building permit because of it.

D.

I turn now to plaintiffs’ argument that the Ordinance which rezoned the property to R-4 is invalid because it is based upon neither a change in zoning concept nor in physical conditions.

The County tacitly concedes that rezoning was not undertaken to correct mistakes nor does it rely upon any deficiency in the proceeding which accomplished the change to C-2. It argues, rather, that zoning is a legislative act and that it should be free to enact such classifications as it deems to be in the public interest.

In this context the parties have gone to swords over the burden of proof. Thus plaintiffs say that the burden is on the County as “proponent” of reclassification ; they argue that the Council is here in the role of a citizen-proponent of zoning change and it has the burden of such an applicant.

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Bluebook (online)
270 A.2d 174, 1970 Del. Ch. LEXIS 86, Counsel Stack Legal Research, https://law.counselstack.com/opinion/willdel-realty-inc-v-new-castle-county-delch-1970.