1ST RURAL HOUSING PARTNERSHIP V CITY OF HOWELL
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STATE OF MICHIGAN
COURT OF APPEALS
1ST RURAL HOUSING PARTNERSHIP, LLP,
d/b/a FIRST RURAL HOUSING PARTNERSHIP,
LLP,
UNPUBLISHED
February 5, 2004
Plaintiff-Appellant,
v
No. 241192
Livingston Circuit Court
LC No. 00-018194-CZ
CITY OF HOWELL,
Defendant-Appellee.
Before: Sawyer, P.J., and Griffin and Smolenski, JJ.
PER CURIAM.
Plaintiff appeals from an order of the circuit court granting defendant’s motion for
summary disposition on the basis that the circuit court lacked subject matter jurisdiction because
the issue presented was not ripe for judicial review. We reverse and remand.
Plaintiff is the owner of a 3.86-acre parcel of real estate located in the city of Howell.
The property is zoned RM (multi-family residential). Rezoning to B-1 (local business) was
unsuccessfully sought in 1998. A second rezoning request in 2000 was also denied, after which
a use variance was pursued with the Zoning Board of Appeals. The variance was denied.
Thereafter, plaintiff filed the instant action seeking, inter alia, declaratory relief alleging that
defendant’s zoning ordinance, as applied, constituted an unconstitutional taking and inverse
condemnation of plaintiff’s property. The trial court concluded that it lacked jurisdiction over
this case because plaintiff filed an original action alleging a confiscatory taking rather than by
appealing from the adverse decision of the ZBA on the variance request.
In Paragon Properties Co v Novi, 452 Mich 568; 550 NW2d 772 (1996), the Supreme
Court held that a property owner who alleges that a zoning ordinance is confiscatory on its face
may immediately file an original action in the circuit court because the finality doctrine does not
apply. But where a property owner, as here, is challenging the zoning ordinance as being
confiscatory as applied, the finality doctrine does apply and there must be a final decision from
the zoning authority before the matter may move into the courts. Id. at 576-577. The Court in
Paragon interpreted this to include the necessity for the property owner to seek alternate relief,
such as a variance, before the matter is ripe for judicial review. Id. at 577.
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The question which arises then is whether plaintiff, having sought and been denied
alternate relief in the form of a variance, must appeal that decision of the ZBA to the circuit court
before (or contemporaneously with) an original action in circuit court challenging the zoning
ordinance itself. Plaintiff in essence argues that, having completed the process within the city to
no avail, it is free to abandon the pursuit of a variance and proceed directly to circuit court with
its original action challenging the zoning ordinance itself. Defendant, and the trial court, would
have us conclude that plaintiff must continue to pursue the variance issue through the circuit
appeals process.
We believe that this issue is controlled by our decision in Sun Communities v Leroy Twp,
241 Mich App 665; 617 NW2d 42 (2000). In Sun Communities, the plaintiff sought the rezoning
of its property, which request was denied. The plaintiff then filed an original action in circuit
court, alleging, inter alia, a taking of private property without just compensation. This Court
concluded that there was no need to pursue an appeal from an administrative decision of the
ZBA when the plaintiff is challenging the legislative decision regarding rezoning.
Here, plaintiff’s lawsuit does not involve a challenge to the administrative
activities of a municipal body acting in the capacity of a zoning board of appeals.
Instead, it involves numerous constitutional challenges to the legislative actions of
the township board in applying the AG zoning to plaintiff’s property. There is no
authority that requires a party to pursue an appeal to challenge the
constitutionality of a legislative act of rezoning. Indeed, “neither a city council’s
decision to rezone land nor a zoning board of appeal’s decision to grant a variance
is relevant to the constitutionality or unconstitutionality of an ordinance’s
provisions.” Paragon Properties Co v Novi, 452 Mich 568, 580, n 15; 550 NW2d
772 (1996). [Sun Communities, supra at 672 (emphasis added).]
This case is controlled by the emphasized language above that there is no authority
requiring an appeal to challenge the constitutionality of the legislative act of rezoning.
Therefore, we conclude that plaintiff had the option in this case to either pursue the variance
issue by appealing the adverse decision to the circuit court, or to abandon the variance issue and
merely bring an original action in the circuit challenging the zoning ordinance itself, or both.
While it may be that plaintiff limited its options by abandoning the variance issue and only
challenging the rezoning issue, that is plaintiff’s choice to make.
We briefly note that defendant raises various additional arguments, such as plaintiff not
having shown that it could have obtained approval of a different plan that gave it the beneficial
use of its property without requiring rezoning. These arguments, however, go to the merits of
plaintiff’s claim, not to whether the trial court has jurisdiction over this matter. It is only the
latter question that we need answer in this appeal.
Finally, plaintiff requests that we award sanctions against defendant for pursuing a
frivolous defense. Although we disagree with defendant’s position, given that the defendant was
able to convince the trial court that is was correct and the complex nature of this issue in light of
the Paragon decision, we cannot say that defendant’s position is frivolous. Therefore, we
decline to award sanctions against defendant.
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Reversed and remanded to the circuit court for further proceedings consistent with this
opinion. We do not retain jurisdiction. Plaintiff may tax costs.
/s/ David H. Sawyer
/s/ Richard Allen Griffin
/s/ Michael R. Smolenski
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