Maryland-National Capital Park & Planning Commission v. Chadwick
Maryland-National Capital Park & Planning Commission v. Chadwick
Opinion of the Court
delivered the opinion of the Court.
The central issue in this case is whether the appellant, Maryland-National Capital Park and Planning Commission (the Commission), by placing the appellees’ land in public “reservation” without their consent for a period not to exceed three years, as authorized by § 50-31 (a) of the Montgomery County Code (1972, 1977 Repl. Vol.), unconstitutionally deprived the landowners of the use of their property without payment of just compensation.
(1)
The Commission is a state agency authorized by Maryland Code (1957, 1978 Repl. Vol.), Art. 66D, § 5-101 (a) and (b) to acquire, by purchase or condemnation, land or other property within the Maryland-Washington Metropolitan District, comprising Montgomery and Prince George’s Counties, for “parks, parkways, forests, streets,... [for] the purposes of public recreation or the construction of public recreation centers....” The Commission is empowered by § 7-108 to prepare general and master plans for the development of the regional district, and it is responsible for coordinating planning, zoning and recreational activities within Prince George’s and Montgomery Counties. See generally O & B, Inc. v. Md.-Nat’l Cap. P. & P., 279 Md. 459, 369 A.2d 553 (1977).
The Commission is required by § 2-118 (a) to submit to the county executives of the two counties an annual capital and operating budget containing, among other items, proposed expenditures for property acquisitions. In addition, it is required to prepare a Capital Improvement Program (CIP), which is an annually updated plan of “all programmed parkland acquisition, all major parkland improvement, development and major acquisition of equipment” to be completed over a six-year period. § 2-118 (b). The CIP is submitted to the governing bodies of the two counties which may adopt, amend or modify it after conducting a public hearing. Although the CIP identifies all lands scheduled for acquisition within the six-year period, no allocation of funds for such acquisitions is included in the Commission’s annual
Under § 7-115 (a), the Commission’s approval is required before any subdivision plat within the regional district may be recorded in the land records of Montgomery or Prince George’s Counties. The Commission is empowered under § 7-116 (a) (4) to prepare subdivision regulations which may provide for
“the reservation of lands for schools and other public buildings and for parks, playgrounds, and other public purposes, provided no reservation of land for traffic, recreation or any other public purposes as herein provided shall continue for longer than three years without the written approval of all persons holding or otherwise owning any legal or equitable interest in the property; and provided further that the properties reserved for public use shall be exempt from all State, county, and local taxes during the period.”
Pursuant to the state enabling legislation, Montgomery County adopted an ordinance authorizing the placement of land in public reservation. Under the provisions of the ordinance — § 50-31 (a) of the County Code — the Commission’s Planning Board for Montgomery County, which is authorized to administer subdivision regulations in that jurisdiction, is required to “refer all preliminary subdivision plans to the general plan or parts thereof, adopted or proposed or studies related thereto, or shall otherwise determine the need for reserving for public use any of the land included in the preliminary subdivision plan.” The ordinance specifies that reservations “for a period of three years may be required for road or street rights of way, public school and building sites, parks, playgrounds or other recreational areas or other public purposes.” The ordinance also provides that placement of land in public reservation shall be by resolution of the Commission, which shall state the time, not over three years, that the reservation will be effective.
“(5) PRESERVATION. During the reservation period, no building or structure shall be erected upon the land so reserved. No trees, topsoil or cover shall be removed or destroyed; no grading shall be done; no storm drainage structure shall be so built as to discharge water on the reservation except for storm drainage construction in accordance with a storm drainage plan approved by the department of public works or the Washington Suburban Sanitary Commission; nor shall any land so reserved be put to any use whatsoever, except upon written approval of the board. Nothing in this section shall be construed as prohibiting the owner from removing weeds or trash from property so reserved, nor from selling when approved by the board such parts of the land as may be necessary for water, sewer or road right of way for public agencies.” (Emphasis added.)
Nothing in the state enabling act, or in Montgomery County’s implementing ordinance, obligates the Commission to acquire property placed by it in reservation, either during or at the expiration of the reservation period. No provision is made for payment of compensation to the property owner, for the time that his property is held in reservation, whether or not it is ultimately acquired by the Commission.
(2)
Appellees George Chadwick, Jr. and members of his family (the Chadwicks) own a 105-acre tract of land located on the south side of Old Baltimore Road and on the west side of Ten Mile Creek, north of Boyds, Maryland. The property is zoned R-200, which permits one-half acre lots, and has road access by Ten Mile Creek Road. The Chadwicks purchased the property in 1965 as part of a tract containing 159.71 acres. When it was determined, as part of the Clarksburg Master
The Chadwicks thereafter renewed their request for subdivision approval of the preliminary plan for the remainder of the tract; it complied fully with all requirements of law at the time it was presented to the Board on January 26, 1978. The Board’s staff recommended that the property be placed in reservation because it was within the Commission’s park take line for Little Seneca Regional Park and within the limits of Lake Site No. 3, as shown on the Final Draft Boyds Master Plan.
On April 6, 1978, the Chadwicks’ plan of subdivision was denied and the Commission placed the property in reservation for a period not to exceed three years, as authorized by § 50-31 of the County Code. The Commission’s action was taken in accordance with the Board’s Staff recommendation, and because construction of the dam site at Lake Site No. 3 would flood a portion of Ten Mile Creek Road, in effect denying access to the road serving the proposed subdivision. By the Boyds Master Plan, adopted by the Montgomery County Council on May 9, 1978, the Chadwicks’ property was shown to lie within the Commission’s park take line and within the limits of Lake Site No. 3. On May 15, 1978, the Montgomery County Council adopted the Commission’s CIP, which recommended total acquisition of all lands, including the Chadwicks’ property, within the park take line for Little Seneca Regional Park during the succeeding three-year period (Fiscal Years ’79, ’80, and ’81).
On April 25, 1978, the Chadwicks filed suit in the Circuit Court for Montgomery County, seeking the issuance of a writ of mandamus directing the Commission to approve their preliminary subdivision plan, and requesting a declaratory
We granted certiorari prior to determination by the Court of Special Appeals of the Commission’s appeal to consider the important constitutional issue involved in the case.
(3)
The Commission argues that the placement of private property in a tax-free reservation for up to three years, where the property is located within a master plan’s lines for future acquisition as a public park is a legitimate and necessary
The Chadwicks claim that the Commission’s action constitutes a taking of all reasonable use of the property for a public benefit without payment of just compensation, in violation of Maryland Constitution, Art. Ill, § 40, which provides: “The General Assembly shall enact no law authorizing private property, to be taken for public use, without just compensation.....”
(4)
The power of the state over private property extends from the regulation of its use and enjoyment under the police power, to its actual appropriation under the eminent domain power upon payment of just compensation. The distinction between the two governmental powers is an important one because a taking for public use without compensation can be corrected by payment, while a governmental action that violates due process requirements may be invalidated, without regard to whether compensation is provided. Our cases have recognized and applied the distinction between a compensable taking under the eminent domain power and a noncompensable regulation under the police power. See, e.g.,
We have also recognized that the State “cannot under the guise of the police power take private property for public use without compensation.” Capital Transit Co. v. Bosley, 191 Md. 502, 514, 62 A.2d 267 (1948). In zoning cases, in determining whether the challenged zoning regulation amounts to a taking of private property, we have said that no compensable taking occurs so long as the zoning regulation does not deprive the owner of “all beneficial use of the property.” Baltimore City v. Borinsky, supra at 622. Accord, Cabin John Limited Partnership v. Montgomery County Council, 259 Md. 661, 271 A.2d 174 (1970); Montgomery County Council v. Kacur, 253 Md. 220, 252 A.2d 832 (1969). But see Frankel v.
Where the challenged governmental action is not a zoning regulation, the test for determining when a purported “regulation” becomes a compensable “taking” is less clear. See, e.g., Bureau of Mines v. George’s Creek, supra at 177 (The effect of the regulation on the usefulness of the land as a whole may be of such magnitude as to constitute a taking for which just compensation must be paid.); Leet v. Montgomery County, 264 Md. 606, 287 A.2d 491 (1972) (Law which required landowner to remove debris dumped on his property by trespassers is a “taking,” as it forces property owner to use his own resources to confer a benefit upon the public.) See also Penn Central Transp. Co. v. City of New York, 438 U.S. 104, 98 S. Ct. 2646, 57 L. Ed. 2d 631 (1978) (To determine if regulation constitutes a “taking,” the proper inquiry is to focus on the uses the regulation permits.); Smoke Rise, Inc. v. Washington Suburban San. Comm’n, 400 F. Supp. 1369, 1382 (D. Md. 1975) (When restrictions are placed on private property in order to create a public benefit rather than to prevent a public harm, a compensable “taking” has occurred.). See generally Michelman, F., “Property, Utility, and Fairness: Comments on the Ethical Foundations of ‘Just Compensation’ Law,” 80 Harv. L. Rev. 1165 (1967) (Factors to be considered in deciding whether compensation is required include (1) the amount of economic injury to the property; (2) the harmfulness of the land use so restricted; (3) the loss to the property owner as balanced against the gain to the public; (4) any physical use or occupation of the property by the government.); Sax, J., “Takings and the Police Power,” 74 Yale L.J. 36 (1964) (If government causes economic loss to property owner as a result of the government’s acquisition of resources for its own use, compensation is required.).
Part of the confusion surrounding the attempts to
(5)
The present case does not involve a valid exercise of the police power regulating, in the public interest, a mere beneficial use of private property for which compensation need not be paid to the affected landowner. On the contrary, we think the Commission’s resolution placing appellees’ land in reservation for a period up to three years stripped the landowners, for that extended period of time, of all reasonable use of their property and was tantamount to a “taking” without compensation as the lower court declared. In so concluding, we recognize the commendable governmental objective sought to be achieved by placing the land in reservation but, as was said in Pennsylvania Coal Co. v. Mahon, supra (260 U.S. at 416), “a strong public desire to improve the public condition is not enough to warrant achieving the desire by a shorter cut than the constitutional way of paying for the change.”
Pennsylvania Coal involved an action to enjoin a coal company from mining under the plaintiffs’ residence in such a way as to cause subsidence of the land surface. The company had conveyed the tract to the plaintiffs, reserving the right to remove all the coal under the property. The grantees agreed to take the risk and waive all claims for damages that might arise from the mining of the coal. The plaintiffs maintained that because a Pennsylvania statute subsequently enacted prohibited the mining of coal in any manner that would cause subsidence of any structure used for human habitation, any public structure, public street or passageway, the coal company’s right to mine under their residence had been nullified. The Pennsylvania court held that the statute as applied to the company’s right to mine coal was a valid exercise of the police power. The Supreme Court reversed that judgment, holding that the statute amounted to an unconstitutional taking of the company’s property without payment of compensation in violation of the Fourteenth Amendment. The Court said:
“Government hardly could go on if to some extent values incident to property could not be diminished without paying for every such change in the general law. As long recognized some values are enjoyed un*14 der an implied limitation and must yield to the police power. But obviously the implied limitation must have its limits or the contract and due process clauses are gone. One fact for consideration in determining such limits is the extent of the diminution. When it reaches a certain magnitude, in most if not in all cases there must be an exercise of eminent domain and compensation to sustain the act” 260 U.S. at 413 (italics added).
The Court focused in Pennsylvania Coal on the nature of the interest destroyed by the statute, and concluded that the effect of the law was to give the public a right to subsurface support of structures and streets. This subsurface support, the Court said, must be acquired for the public through the exercise of the eminent domain power, just as surface rights are acquired for public purposes. It concluded that such deprivation of the coal company’s property rights for the purpose of providing subsurface support in the public interest could be constitutionally effected only if accompanied by payment of compensation. The Court thus reaffirmed the principle earlier enunciated in Hudson County Water Co. v. McCarter, 209 U.S. 349, 355, 28 S. Ct. 529, 52 L. Ed. 828 (1908), that where regulation would render the property “wholly useless, the rights of property would prevail over the other public interest, and the police power would fail. To set such a limit would need compensation and the power of eminent domain.”
Fifty years later, in Penn Central Transp. Co. v. City of New York, 438 U.S. 104, 98 S. Ct. 2646, 57 L. Ed. 2d 631 (1978), the Court held that New York City’s Landmarks Preservation Law, which restricted development of individual historic landmarks, did not effect an unconstitutional “taking” of Penn Central’s Grand Central Terminal property. The Court there noted that the law’s major theme was to “ensure the owners of any such [designated] properties both a ‘reasonable return’ on their investments and maximum latitude to use their parcels for purposes not inconsistent with the preservation goals.” 98 S. Ct. at 2652. Penn Central, prevented by the law from constructing a high-rise office
The Court rejected the proposition “that diminution in property value, standing alone, can establish a taking”; it concentrated instead “on the uses the regulations permit.” Id. It concluded that, while the law restricted Penn Central’s exploitation of above-surface development rights, it neither impaired the present use of the Terminal, nor appropriated the parcel for city purposes, nor facilitated any entrepreneurial operations of the City. “The Landmarks Law’s effect is simply to prohibit appellants or anyone else from occupying portions of the airspace above the Terminal, while permitting appellants to use the remainder of the parcel in a gainful fashion.” Id. at 2665. Thus, the Court held that the City had not “taken” the property for its own use, and that therefore the law was not invalid for its failure to provide just compensation.
Considered together, Pennsylvania Coal and Penn Central provide ample guidance for determining whether a governmental restriction on the use of land, sought to be imposed under the police power, is of such magnitude as to constitute a taking in the constitutional sense. As we have indicated, the Commission’s resolution placing appellees’ land in reservation for a period of up to three years, with no reasonable uses permitted, amounts to a virtual “freeze” on the use of the property in its entirety. The resolution does not merely circumscribe a beneficial use of the property; it inhibits all beneficial use for up to three years, without any guarantee that the property will be acquired in the future. That the Commission’s resolution is tantamount to a taking is, we think, clearly buttressed by cases in other jurisdictions.
In Miller v. Beaver Falls, 368 Pa. 189, 82 A.2d 34 (1951), Pennsylvania’s Supreme Court invalidated a state law and implementing city ordinance which allowed a municipality to
In Lomarch Corp. v. Mayor of Englewood, 51 N.J. 108, 237 A.2d 881 (1968), the Supreme Court of New Jersey considered a state statute and implementing municipal ordinance similar to § 50-31 (a) of the Montgomery County Code. The state law authorized a municipality to designate land uses upon an official map; it provided that:.
“ ‘* * * Upon the application for approval of a plat, the municipality may reserve for future public use the location and extent of public parks and playgrounds shown on the official map, or any part thereof and within the area of said plat for a period of one year after the approval of the final plat or within such further time as agreed to by the applying party. Unless within such one year period or extension thereof the municipality shall have entered into a contract to purchase, or instituted condemnation proceedings, for said park or playground according to law, such applying party shall not be bound to observe the reservation of such public parks or playgrounds....’ ” 237 A.2d at 882.
The statute permitted the landowner to “use the area so reserved for any purpose other than the location of buildings
Presuming that the legislature understood that “any attempt to deprive a landowner of the use of his property for one year would be unconstitutional absent an intent to compensate [him],” the court concluded that “the ‘option’ for the purchase of land ... was statutorily granted to the municipality only upon the implied duty and obligation to make payment of adequate compensation to the landowner for the temporary taking and his deprivation of use.” Id. at 884. Thus, the Lomarch court viewed the statute as, in effect, an exercise of the eminent domain power that must be accompanied by payment of compensation in order to withstand constitutional challenge. See also Gordon v. City of Warren Plan. & Urb. Renew. Com ’n, 388 Mich. 82, 199 N.W.2d 465 (1972); Peacock v. County of Sacramento, 271 Cal. App. 2d 845, 77 Cal. Rptr. 391 (1969). Compare Washington Sub. San. Comm’n v. Nash, 284 Md. 376, 396 A.2d 538 (1979); Hoyert v. Bd. of County Comm’rs, 262 Md. 667, 278 A.2d 588 (1971); Carl M. Freeman, Inc. v. St. Rds. Comm’n, 252 Md. 319, 250 A.2d 250 (1969).
The Commission, supported by a well-prepared amicus curiae brief filed by the Attorney General, urges that we apply the rationale of cases like Headley v. City of Rochester, 272 N.Y. 197, 5 N.E.2d 198 (1936), and State v. Manders, 2 Wis. 2d 365, 86 N.W.2d 469 (1957), sustaining the constitutionality of so-called official map laws — statutes
The facts of the present case clearly distinguish it from the cited cases involving the reservation of street locations.
Judgment affirmed, with costs.
. That private property may not be taken for public use without the payment of just compensation is also guaranteed by the Fifth Amendment to the Federal Constitution. The federal constitutional protection is applicable to the states through the Fourteenth Amendment. Chicago, B. & Q. R.R. v. Chicago, 166 U.S. 226, 17 S. Ct. 581, 41 L. Ed. 979 (1897).
. See, however, Moale v. Baltimore, 5 Md. 314 (1854).
Reference
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- THE MARYLAND-NATIONAL CAPITAL PARK AND PLANNING COMMISSION v. GEORGE A. CHADWICK, JR.
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