Winco Anchorage Investors I, LP v. Huffman Building P, LLC and Municipality of Anchorage, Zoning Board of Examiners and Appeals

CourtAlaska Supreme Court
DecidedOctober 4, 2024
DocketS18582
StatusPublished

This text of Winco Anchorage Investors I, LP v. Huffman Building P, LLC and Municipality of Anchorage, Zoning Board of Examiners and Appeals (Winco Anchorage Investors I, LP v. Huffman Building P, LLC and Municipality of Anchorage, Zoning Board of Examiners and Appeals) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Winco Anchorage Investors I, LP v. Huffman Building P, LLC and Municipality of Anchorage, Zoning Board of Examiners and Appeals, (Ala. 2024).

Opinion

Notice: This opinion is subject to correction before publication in the PACIFIC REPORTER. Readers are requested to bring errors to the attention of the Clerk of the Appellate Courts, 303 K Street, Anchorage, Alaska 99501, phone (907) 264-0608, fax (907) 264-0878, email corrections@akcourts.gov.

THE SUPREME COURT OF THE STATE OF ALASKA

WINCO ANCHORAGE INVESTORS ) I, L.P., ) Supreme Court No. S-18582 ) Petitioner, ) Superior Court No. 3AN-21-05629 CI ) v. ) OPINION ) HUFFMAN BUILDING P, LLC and ) No. 7725 – October 4, 2024 MUNICIPALITY OF ANCHORAGE, ) ZONING BOARD OF EXAMINERS ) AND APPEALS, ) ) Respondents. ) )

Petition for Review from the Superior Court of the State of Alaska, Third Judicial District, Anchorage, Herman G. Walker, Jr., Judge.

Appearances: Michael Jungreis and Colleen J. Moore, Reeves Amodio LLC, Anchorage, for Petitioner. Matthew T. Findley, Ashburn & Mason, P.C., Anchorage, for Respondent Huffman Building P, LLC. Quincy H. Arms, Assistant Municipal Attorney, and Anne R. Helzer, Municipal Attorney, Anchorage, for Respondent Municipality of Anchorage, Zoning Board of Examiners and Appeals.

Before: Maassen, Chief Justice, and Carney, Borghesan, Henderson, and Pate, Justices.

MAASSEN, Chief Justice. INTRODUCTION A company that leased space to a government agency lost its bid to renew that lease to another landowner in a different zoning district. The new lessor asked the municipal planning department to approve the government agency’s proposed use of its space; the planning department determined that the use was appropriate for the property’s zoning designation. The former lessor challenged this determination by appeal to the municipal zoning board, which affirmed it. The former lessor appealed the zoning board’s decision to the superior court, which sua sponte questioned the former lessor’s standing to appeal. After briefing, however, the court determined that the former lessor was a “party aggrieved” and therefore had standing; turning to the merits, the court decided that the zoning board’s findings were insufficient and had to be reconsidered on remand. The new lessor petitioned for review, which we granted. We conclude that the former lessor’s interest is that of a business competitor, which is insufficient to show that it is a “person aggrieved” with standing to appeal a zoning decision to the superior court. We therefore reverse the superior court’s decision and remand with instructions that the former lessor’s appeal be dismissed. FACTS AND PROCEEDINGS A. Anchorage’s Zoning Appeals Process The Alaska Statutes establish a statewide standard for appeals from municipal land-use decisions, involving two levels of review.1 For the first level, addressed in AS 29.40.050(a) and captioned “Appeals from administrative decisions,” a municipality “shall provide for an appeal from an administrative decision of a municipal employee, board, or commission made in the enforcement, administration, or application of a land use regulation . . . to a court, hearing officer, board of

1 Griswold v. City of Homer (Griswold 2011), 252 P.3d 1020, 1027-28 (Alaska 2011) (citing AS 29.40.050-.060).

-2- 7725 adjustment, or other body.” The statute authorizes the municipality to “define proper parties” to such a proceeding.2 The second level of appeal — from the body designated under AS 29.40.050 — is described in AS 29.40.060, captioned “Judicial review.” It states that municipalities “shall provide . . . for an appeal by a municipal officer or person aggrieved from a decision of a hearing officer, board of adjustment, or other body to the superior court.” 3 The Anchorage Municipal Code (the Code) follows these statutory requirements by establishing a two-level appeals process in Title 21. First, “appeals from decisions of the municipal staff” in land-use classification matters are heard by the Zoning Board of Examiners and Appeals (the Zoning Board).4 As authorized by AS 29.40.050(b), the Code defines the “proper parties” to such an appeal: “Appeals to the zoning board of examiners and appeals may be brought by any party of interest for the application.” 5 A “party of interest” is further defined, broadly, as “[t]he applicant, the owner of the subject property, the owner of property within the notification area for the subject application, and anyone that presented oral testimony at a public hearing or written testimony on the application.” 6 To meet the requirement of judicial review in AS 29.40.060, the Code succinctly provides: “In accordance with Appellate Rule 601 et seq., of the Alaska Rules of Court, a municipal officer, a taxpayer, or a person jointly or severally

2 AS 29.40.050(b). 3 AS 29.40.060(a). 4 Anchorage Municipal Code (AMC) 21.03.050(B)(1)(j) (2014). 5 AMC 21.03.050(B)(2) (emphasis added). 6 AMC 21.15.040.

-3- 7725 aggrieved may appeal to the superior court.” 7 The Code does not define the term “person jointly or severally aggrieved.” B. Facts In 2019 the federal General Services Administration (GSA) began the procurement process to secure a new long-term lease of warehouse space in Anchorage for the use of the U.S. Geological Survey (USGS). The only two bidders were Winco Anchorage Investors I, LP (Winco), and the existing lessor, Huffman Building P, LLC (Huffman), whose 20-year lease term with the USGS was ending. Huffman’s building is located in South Anchorage; Winco’s building is about five miles north in Anchorage’s midtown. In May 2020 the GSA awarded the lease to Winco. Huffman filed a bid protest with the U.S. Government Accountability Office, which rejected it; Huffman challenged that determination in the U.S. Court of Federal Claims, which granted the government’s motion to dismiss the case in February 2021. 8 In the meantime, Winco requested a determination from the Municipality of Anchorage Planning Department that the USGS’s intended use was consistent with the property’s zoning designation. Winco’s building, located in the Campbell Creek Industrial Park, is in a B-3 zoning district. According to Winco, the proposed use of the building fell into the “Research Laboratory” category, a permitted use in B-3 zoning districts. 9 Winco explained that the USGS’s use would “primarily include warehouse storage of core samples and geological minerals (i.e. ‘rocks’), but [would] also include

7 AMC 21.03.050(D). 8 Huffman Building P, LLC v. United States, 152 Fed. Cl. 476, 482, 489-90 (2021). 9 See AMC 21.05.010(E) (2014) (“TABLE 21.05-1: Table of Allowed Uses - Residential, Commercial, Industrial, and Other Districts”, listing “Research laboratory” as permitted use in B-3 zoning districts); AMC 21.05.060(A)(7) (defining “Research laboratory” as “[a] facility that is designed or equipped for basic or applied research or experimental study, testing, or analysis in the natural sciences or engineering.”).

-4- 7725 office/processing/laboratory areas for . . . field staff to research, analyze, and categorize core samples and minerals”; “some light fabrication of equipment assembly for field site use”; and “a single loading dock for truck deliveries, as well as a secured fenced- off area for Government vehicles only.” Huffman opposed Winco’s proposed use determination, contending that a “Research Laboratory” designation contradicted the USGS’s past uses and descriptions of its space as “general warehouse use,” which was not a permitted use in B-3 zoning districts. 10 The Planning Department determined “that the use of this site as described by the applicant has the characteristics of a Research Laboratory which falls under the Industrial Services section of Title 21” (emphasis omitted) and was therefore a permitted use in its zoning district. C. Proceedings Huffman appealed the Planning Department’s decision to the Zoning Board, which held a hearing in February 2021.

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Winco Anchorage Investors I, LP v. Huffman Building P, LLC and Municipality of Anchorage, Zoning Board of Examiners and Appeals, Counsel Stack Legal Research, https://law.counselstack.com/opinion/winco-anchorage-investors-i-lp-v-huffman-building-p-llc-and-municipality-alaska-2024.