Baker v. Carlson
Baker v. Carlson
Opinion of the Court
INTRODUCTION
¶ 1 Since the old Cottonwood Mall closed its doors more than ten years ago, the City of Holladay has been looking for a way to redevelop the land on which the mall once stood. In May 2018, the City approved two resolutions, Resolution 2018-16 and Resolution 2018-17, that would enable Ivory Development, LLC to develop that land. In response, a group of citizens from Holladay petitioned to subject the Resolutions to a public vote by referendum. The district court held that Resolution 2018-16 was approved pursuant to the City's legislative power and is therefore referable. The district court also held that Resolution 2018-17 was approved pursuant to the City's administrative power and is therefore not referable. We affirm.
BACKGROUND
¶ 2 In the mid-2000s, and after more than 40 years in business, the Cottonwood Mall shuttered its doors. Soon thereafter, the City began searching for a way to redevelop the land on which the Cottonwood Mall stood (the Site). In 2007, Cottonwood Mall, LLC, the owner of the Site, engaged the City in redevelopment talks and asked the City to rezone the Site to permit mixed uses. In response, the City approved the creation of a new zoning district, the Regional/Mixed-Use (R/M-U) zone, and rezoned the Site as R/M-U.
¶ 3 In creating the R/M-U zone, the City also created the means by which development of an R/M-U zone is controlled. Specifically, any person wishing to build in an R/M-U zone must submit a site development master plan (SDMP) to the City for approval. The SDMP controls the development of all property within an R/M-U zone and is meant to serve as a guide for the overall development and design of the entire site-much in the same way the City's general plan functions in the context of the larger community. See HOLLADAY, UTAH, CODE §§ 13.65.030, .060. Once an SDMP has been approved, the City and the developer must enter into an Agreement for the Development of Land (ADL), which grants specific rights pursuant to the SDMP and addresses additional development-related issues. See id. § 13.65.070.
¶ 4 Pursuant to this framework, Cottonwood Mall, LLC submitted, and the City approved, an SDMP (the 2007 SDMP) and an ADL (the 2008 ADL) that contemplated redevelopment of the Site. Ultimately, Cottonwood Mall, LLC abandoned the project and nothing relevant to this case happened for nearly a decade.
¶ 5 In 2016, Cottonwood Mall, LLC and Ivory began negotiating the terms of a possible purchase of the Site and Cottonwood Mall, LLC's rights in the redevelopment project. In November 2017, Ivory submitted a proposal to the City to amend the 2007 SDMP. Two months later, after holding two public hearings and four work meetings to discuss the proposal, the City's Planning Commission voted 5-1 against recommending approval of the proposal to the City Council. As a result, Ivory revised its proposal and submitted a second proposal to amend the 2007 SDMP. The second proposal was considered by the City Council after a final public hearing and debate in May 2018. At the same time, the City also considered Ivory's proposal to amend the 2008 ADL. On May 17, 2018, the City Council passed Resolutions 2018-16 and 2018-17. Resolution 2018-16 approved Ivory's second proposal to amend the 2007 SDMP, as reflected in the 2018 SDMP. Resolution 2018-17 approved Ivory's proposal to amend the 2008 ADL, as reflected in the Amended ADL.
¶ 6 On May 22, 2018, Petitioners and several other sponsors (collectively, the Sponsors) filed an application with the City Recorder seeking to put the Resolutions to a public vote. The City provided the Sponsors with signature sheets as required by statute, but cautioned that providing the Sponsors with the signature sheets should not be interpreted to mean that the City considered the Resolutions to be referable. Nonetheless, the City scheduled a special election for November 6, 2018, in the event that the Resolutions were referable. Eventually, the Sponsors gathered and submitted enough signatures to have the referenda placed on the ballot. Upon receiving the signed petitions, the City determined that the Resolutions were administrative in nature-and therefore not referable-and declined to place the referenda on the ballot.
¶ 7 In response, Petitioners initiated this action on August 13, 2018, by filing a petition for extraordinary writ in the district court seeking: (1) an order declaring the Resolutions to be legislative in nature and therefore referable, and (2) an extraordinary writ ordering the City to place the referenda regarding the Resolutions on the ballot. Soon after Petitioners filed suit, Ivory filed an unopposed motion to intervene, which the district court granted. Both Ivory and the City filed motions to dismiss Petitioners' claims.
¶ 8 At the request of the parties, and given the urgency of the matter, the district court agreed to hear the case on an accelerated schedule. The district court converted the motions to dismiss to motions for summary judgment
¶ 9 We have jurisdiction under Utah Code section 78A-3-102(3)(j).
STANDARD OF REVIEW
¶ 10 "We review a district court's grant of summary judgment for correctness, giving no deference to its conclusions of law."
Flowell Elec. Ass'n, Inc. v. Rhodes Pump, LLC
,
ANALYSIS
¶ 11 Ivory and the City contend that the district court erred in granting summary judgment in favor of Petitioners with respect to Resolution 2018-16. Conversely, Petitioners contend that the district court erred in granting summary judgment in favor of Ivory and the City with respect to Resolution 2018-17. Because we agree with the district court that Resolution 2018-16 is legislative in nature and Resolution 2018-17 is administrative in nature, we affirm.
I. RESOLUTION 2018-16 IS LEGISLATIVE IN NATURE AND THEREFORE REFERABLE
¶ 12 Ivory and the City advance a number of arguments as to why they believe the district court erred in holding that Resolution 2018-16 adopting the 2018 SDMP is legislative in nature. The common theme of these arguments, however, is that the district court incorrectly applied our precedent in
Carter v. Lehi City
,
¶ 13 In
Carter
, this court was tasked with defining the "nature and extent" of the people's power to legislate.
¶ 14 This court also noted that this power is distinguishable from the executive-or administrative-power, which involves "applying the law to particular individuals or groups based on individual facts and circumstances." Id. Drawing on this distinction, we noted that enactment of a broad zoning ordinance constitutes a legislative act, while application of that zoning ordinance to individuals through conditional use permits or variances would constitute an executive act. Id. ¶ 71.
¶ 15 Here, the district court found Resolution 2018-16 to be generally applicable and its approval to have involved the weighing of broad, competing policy considerations. We agree.
A. Resolution 2018-16 Is Generally Applicable
¶ 16 "A 'generally applicable rule' ... sets the governing standard for all cases coming within its terms."
Id.
¶ 36. In the context of land use, we have held that decisions affecting only one piece of property are generally applicable if "they apply to all present and future parties that meet [their] terms."
Krejci v. City of Saratoga Springs
,
¶ 17 The 2018 SDMP undoubtedly applies to all present and future parties that meet its terms. Holladay City Code section 13.65.030 provides that "[an SDMP] specific to any development and approved by the city council shall control the development of all property within an R/M-U zoning district." As Petitioners point out, the definition of "development" in the Holladay City Code omits any reference to a specific developer. See § 13.04.040. The import of these sections is that an SDMP does not rise or fall with one developer. Rather, any approved SDMP controls the development of the relevant R/M-U zone without regard to the identity of the developer.
¶ 18 As Ivory acknowledges in its supplemental briefing, any developer could develop land under an already-approved SDMP if the developer could also execute the required ADL with the City. So while Ivory was the developer that both sought approval of the SDMP and executed the required ADL in this instance, nothing in the Holladay City Code prohibits an unrelated developer from obtaining an ADL permitting it to develop the land in accordance with the 2018 SDMP. That is, the 2018 SDMP applies to all parties, present and future,
B. The City Weighed Broad, Competing Policy Considerations on Approving Resolution 2018-16
¶ 19 Having established that Resolution 2018-16 is generally applicable, we must now "evaluate whether [Resolution 2018-16] implicates the weighing of broad,
competing policy considerations."
Krejci
,
¶ 20 Here, the City weighed similarly broad considerations in deciding to approve the 2018 SDMP. Specifically, Resolution 2018-16 states that the City found that:
(1) the [2018 SDMP] meets the intended vision for the R/M-U Zone and addresses the technical items required by the Zone Regulations; (2) submitted traffic studies show that the Project will have a reduced overall impact, when compared to the [2007 SDMP], and very little modification or improvement of existing streets and related infrastructure is required; (3) the proposed residential densities, while increased, in respect to the [2007 SDMP], are compatible with the existing residential development in the area and are necessary to support the commercial and retail aspects of the Project; (4) the proposed building heights are an integral part of the overall design and function of the Project and are warranted in this area of the City; (5) the proposed residential and commercial development will foster redevelopment and increase property values of surrounding properties; and (6) the proposed commercial/retail development is a needed component of the City's economic stability and represents viable and sustainable development given current economic conditions.
¶ 21 It is obvious from the face of Resolution 2018-16 that the City considered broad, competing policy considerations in approving the 2018 SDMP. Findings two through six clearly contemplate how approval of the 2018 SDMP would affect the City as a whole. The City seems to have considered everything from traffic impact in the area surrounding the Site to the City's economic stability as a whole. Indeed, it is difficult to imagine a more broad policy consideration than the economic stability of an entire city. These broad considerations are unsurprising given the City's stated purpose for an SDMP.
¶ 22 Utah's Municipal Land Use, Development, and Management Act (MLUDMA) requires the legislative body of every municipality to adopt a general plan outlining the needs of and proposed growth and development strategy for that municipality. UTAH CODE §§ 10-9a-401, -404. Pursuant to MLUDMA, the City has adopted a general plan that "provides an overall picture of what the community values, both now and in the future, and how those values will be protected and implemented."
See General Plan
, CITY OF HOLLADAY , http://cityofholladay.com/departments/community-development/general-plan/ [http://perma.cc/3XG9-N2GE] (last visited Nov. 21, 2018). According to the City, the City's general plan is "primarily used when the Planning Commission and Council are making land use decisions like rezones and changes to the zoning ordinance that shape the growth of the city."
¶ 23 Holladay City Code section 13.65.060 states that an "SDMP will serve in the same way as the city's general plan does ...; it is a comprehensive but flexible guide for the overall development and design of the entire site." It makes sense, then, that the City would weigh broad policy considerations in approving the 2018 SDMP. Because the 2018 SDMP must serve as a guide for the overall development and design of the site, the City could not just apply existing law to a narrow set of individualized facts, as it would when considering a conditional use permit or a variance.
¶ 24 Amici in this case
¶ 25 We are sensitive to these concerns and wish to reiterate that it is this structure of the R/M-U zoning ordinance and the policy decisions the City made when adopting the 2018 SDMP that drive our conclusion that Resolution 2018-16 is legislative in nature. We are particularly persuaded by the fact that the SDMP effectively serves as a general plan for the R/M-U zone. See supra ¶ 23 & n.5. In so holding, we do not mean to suggest that every site development plan approved pursuant to a zoning ordinance will be legislative in nature. Indeed, it is entirely possible that many site development plan approvals (and, more generally, land use application approvals) will constitute administrative acts. Such a determination, however, is entirely dependent on how the municipality reaches its decision.
¶ 26 If the municipality's decision is "open-ended" and made without reference to "fixed criteria," then the decision may be legislative.
Krejci
,
¶ 27 In the instant case, the fact that the R/M-U zoning ordinance calls for a subsequent SDMP does not tell us whether Holladay acted in a legislative or administrative capacity. The question turns on what the City considered in approving the 2018 SDMP. If the R/M-U zoning ordinance provided specific criteria which bound the City's discretion in approving an SDMP, and Ivory's compliance with those criteria would have been sufficient to approve the application, then the City's approval could very well have been administrative. But that is not what happened here. Instead, the R/M-U zoning ordinance provides that "[the City] shall only approve an SDMP for those projects that comply with the vision and purpose of [the R/M-U zoning ordinance]." HOLLADAY, UTAH, CODE § 13.65.070. Rather than giving the City specific criteria to evaluate in approving an SDMP, the R/M-U zoning ordinance conditions approval on the City's determination that the SDMP complies with the amorphous vision and purpose sections of the ordinance, leaving the City to determine whether an SDMP does things such as "anticipate[ ] development of a vibrant community" or "allow[ ] flexibility [and] creative expression."
See
II. RESOLUTION 2018-17 IS ADMINISTRATIVE IN NATURE AND THEREFORE NOT REFERABLE
¶ 28 The district court found that Resolution 2018-17 exhibited neither of the hallmarks of legislative power as described in
Carter v. Lehi City
,
A. Resolution 2018-17 Is Not Generally Applicable
¶ 29 As we explained in
Carter
, "[g]overnment decisions to enter into a contract with a specific entity ... are not legislative."
¶ 30 As opposed to the 2018 SDMP, which governs the development of the Site without regard to the identity of the developer, the Amended ADL is simply a contract between four parties setting forth the obligations of those parties.
¶ 31 Petitioners argue that, in
Suarez v. Grand County
,
¶ 32 In
Suarez
, this court considered "whether the [Grand County] Council acted in its legislative or administrative capacity when it adopted Ordinance 454."
¶ 33 In 2002, the Grand County Council adopted a resolution approving a rezoning for a large parcel of land. Id. ¶ 3. The resolution also provided that the preliminary master plan for the development was subject to a development agreement between the county and the developer. Id. The original developer eventually abandoned the project and a new developer, Cloudrock, succeeded to the original developer's interest in the development.
Id. ¶ 6. Cloudrock submitted an application to Grand County Planning Commission to begin the process of amending the approvals granted to the original developer in 2002. Id. As part of this process, the Planning Commission recommended certain changes, including changes to the original development agreement. Id. ¶ 7. Cloudrock later submitted an application including an amended development agreement, an amended master plan, and an amended preliminary plat. Id. ¶¶ 9-10. The Grand County Council voted to approve Ordinance 454, which approved Cloudrock's application. Id. ¶ 10. A group of citizens then brought a challenge to Ordinance 454. Id. ¶ 1. Where Suarez and the instant case diverge is in the contents of the respective development agreements and in the nature of the actions brought.
¶ 34 Unlike the Amended ADL, the amended development agreement in Suarez contained an exhibit called the Cloudrock Code. Id. ¶ 12. The Cloudrock Code "create[d] zones within the [development], provide[d] maps depicting the locations of these zones, and put[ ] forth regulation within these zones." Id. ¶ 27. The Cloudrock Code also provided the means by which administrative deviations from the ordinance could be granted. Id. ¶ 33. The contents of the Cloudrock Code are very similar, then, to the contents of the 2018 SDMP. However, unlike the 2018 SDMP, which is a document that exists separately from the Amended ADL, the Cloudrock Code was adopted contemporaneously with the amended development agreement as an exhibit thereto. See id. ¶ 10. ("Ordinance 454 explains that Cloudrock had submitted ... the [amended development agreement], which [was] incorporated [t]herein by reference, including all exhibits thereto." (internal quotation marks omitted) ). In other words, the Cloudrock Code was adopted by the Grand County Council as part and parcel of the amended development agreement.
¶ 35 And unlike the current action, which challenges two separate documents approved in two separate resolutions, Ordinance 454 was challenged in its entirety. See id. ¶ 45 n.55 (noting that the court was only considering Ordinance 454 as a whole and that the citizens did not provide "an analysis of why [the court] should conclude that any individual component of [Ordinance 454] is administrative rather than legislative"). That is, this court considered Ordinance 454 as a cohesive whole in reaching the determination that it was legislative as opposed to determining whether each individual component-the agreement, the master plan, and the subdivision plat-of Ordinance 454 was legislative or administrative.
¶ 36 These two differences inform our understanding of the pronouncement in Suarez that Ordinance 454 was generally applicable. Specifically, we said that, "because the [amended development agreement] states that it will run with the land, and the Cloudrock Code allows administrative deviations from the general rules imposed by the ordinance, we conclude that Ordinance 454 is a law of general applicability." Id. ¶ 34. Here, Petitioners argue that "with respect to general applicability, the Amended ADL runs with the land as did the Suarez agreement."
¶ 37 Petitioners, however, overextend our conclusion in
Suarez
. First, we held that Ordinance 454 was a law of general applicability, not that the amended development agreement itself was a law of general applicability. In fact, we explicitly declined to address whether individual components of Ordinance 454 were legislative or administrative.
Id.
¶ 45 n.55. Second, to the extent our statement in
Suarez
linked the amended development agreement's proclamation to run with the land to general applicability, this statement is inextricably tied to the concomitant adoption of the Cloudrock Code. Because the Cloudrock Code was adopted as part of the amended development agreement, any statement about the general applicability of the amended development agreement cannot be divorced from the Cloudrock Code, which itself announced generally applicable laws such as zoning ordinances for the development. Because our holding in
Suarez
applied only to Ordinance 454 as a whole, and because there the amended development agreement also included the Cloudrock Code, we cannot say that the Amended ADL is
generally applicable simply on the basis that it purports to run with the land.
B. The City Did Not Weigh Broad, Competing Policy Considerations in Approving Resolution 2018-17
¶ 38 When the time came to approve Resolution 2018-17, the City had already done most of the heavy lifting in adopting Resolution 2018-16. Instead of weighing broad, competing policy considerations in approving the Amended ADL, the City was "grant[ing] specific rights
pursuant to an approved [SDMP]
." HOLLADAY, UTAH, CODE § 13.65.070 (emphasis added). While an ADL must address certain development considerations,
see
id.
, the primary purpose of the Amended ADL is to spell out the obligations of the contracting parties pursuant to the 2018 SDMP. In this sense, the Amended ADL involves the application of the 2018 SDMP to the specific circumstances of the parties negotiating the Amended ADL. While the City may have weighed important considerations in negotiating the Amended ADL, they were nonetheless unique to the specific facts of this individual case. This type of action is "fundamentally administrative" and does not implicate the weighing of broad, competing policy considerations.
Krejci v. City of Saratoga Springs
,
CONCLUSION
¶ 39 We agree with the district court that the City was exercising its legislative powers when it approved Resolution 2018-16. The Amended SDMP promulgates a law of general applicability and its approval required the weighing of broad, competing policy considerations. Resolution 2018-16 is therefore referable.
¶ 40 We also agree with the district court that the City was exercising its administrative powers when it approved Resolution 2018-17. The Amended ADL applies only to the contracting parties and its approval involved the application of law to specific facts. Resolution 2018-17 is therefore not referable.
Associate Chief Justice Lee filed a concurring opinion.
We wish to acknowledge upfront the time-sensitive nature of this case and explain why we did not issue an order or opinion prior to the election. This court endeavors to resolve election matters in a way that provides clarity to those involved in the timeliest manner possible. In this case we suspended certain rules of appellate procedure and expedited the briefing and oral argument in an effort to reach a timely resolution. In these cases we also strive to quickly issue an order following oral argument outlining the outcome of the case with detailed opinions to follow. Unfortunately, there was not sufficient consensus among us regarding the correct outcome to issue such an order. And we determined that a perceived delay in issuing this decision was less objectionable than issuing a premature order that might not reflect the ultimate disposition of the case. We regret any uncertainty that this course of action has created and reaffirm our ongoing commitment to resolving these matters as quickly as possible.
All parties agreed that the only issue presented to the district court was the purely legal question of whether the Resolutions were administrative or legislative in nature. The district court also notified the parties that it would consider entering summary judgment in favor of Petitioners as the nonmoving party, if warranted, pursuant to Utah Rule of Civil Procedure 56(f). Nobody objected.
Ivory and the City argue that this court should distance itself from the notion that a decision that "runs with the land" is one of general applicability. Ivory and the City correctly point out that all (or nearly all) land use decisions, even those that we have deemed administrative such as conditional use permits and variances, necessarily run with the land. And while it may be true that all land use decisions run with the land, and are therefore generally applicable under the Carter and Krejci framework, Ivory and the City have not carried their burden in asking us to disavow this language. Most importantly, Ivory and the City have not demonstrated that Carter and Krejci are not entitled to stare decisis respect.
This court has provided a framework by which litigants can argue that our precedent is not entitled to
stare decisis
respect. Specifically, those seeking to overturn our precedent must make a showing that the precedent is (1) unpersuasive and/or (2) not firmly established in Utah law.
See
Eldridge v. Johndrow
,
Furthermore, the second part of the
Carter
framework goes a long way toward eliminating any confusion Ivory and the City claim may be caused by our equating general applicability to running with the land. As discussed above,
see
supra
¶ 14, we have announced that the adoption of a zoning ordinance is legislative but issuance of a conditional use permit or variance is administrative. While both conditional use permits and variances run with the land, and are therefore generally applicable under our precedent, they do not involve the weighing of broad, competing policy considerations that accompanies the enactment of a zoning ordinance. Rather, the decision to issue a conditional use permit or variance depends on the application of law to the specific facts of the request for a conditional use permit or variance.
See
Krejci
,
Ivory agrees that an approved SDMP does not terminate unless and until a new or amended SDMP is submitted and approved by the City. In this sense, the 2018 SDMP is generally applicable because any future developer looking to develop the Site would be subject to the 2018 SDMP unless and until they submitted, and the City approved, a new or amended SDMP.
This is confirmed by Appendix A of the City's Land Use and Development Code. Appendix A provides a table of conditional, permitted, and disallowed uses for every zone in the City except the R/M-U zone. See Holladay, Utah, Code § 13.100.010. Instead, Appendix A simply refers the reader to the SDMP to determine whether a use is conditional, permitted, or disallowed in the R/M-U zone. Therefore, it would be impossible for the City to simply apply existing law to individualized facts in approving the SDMP because the SDMP itself is the document that creates the relevant underlying law.
Appendix A also confirms that the 2018 SDMP acts very similarly to a zoning ordinance, whose adoption we have conclusively declared to be a legislative act.
Carter
,
Amici curiae here consist of the Utah Homebuilders Association, Northern Wasatch Association of Realtors, Salt Lake Board of Realtors, and Utah Property Rights Coalition.
The district court also acknowledged that it believed Resolution 2018-17 presented a close call in line drawing between administrative and legislative acts and that, pursuant to
Carter
,
For example, the Amended ADL describes the specific obligations of Ivory and the City as they relate to issues such as tax subsidies, the construction and installation of site improvements, prohibitions against transfer and assignment, and remedies in the event of breach by either party.
Section 4.2 of the Amended ADL provides, in part, that the "covenants provided in [the Amended ADL] shall be covenants running with the land."
Furthermore, as Ivory points out, even if the covenants in the Amended ADL did run with the land, they would only bind strangers to the contract to the extent that the law of contracts permits it.
See
,
e.g.
,
Stern v. Metro. Water Dist. of Salt Lake & Sandy
,
Concurring Opinion
¶ 41 I agree with and accordingly concur in the majority opinion as far as it goes. I write separately only to say that I would go a step further than the court does in clarifying the role that the "running with the land" factor plays in assessing whether a land use decision is legislative or administrative. The majority acknowledges that "all (or nearly all) land use decisions, even those that we have deemed administrative such as conditional use permits and variances, necessarily run with the land."
Supra
¶ 16 n.3. It also concedes that we have said that variances and conditional use permits are administrative decisions despite the fact that they "run with the land." And it notes that our decision in
Krejci v. City of Saratoga Springs
,
¶ 42 Notwithstanding the foregoing, the court stops short of "disavow[ing]" the "runs with the land" factor as an element of our analysis in this field.
Supra
¶ 16 n.3. It faults the parties for not presenting argument under factors set forth in
Eldridge v. Johndrow
,
¶ 43 I see no barrier to open disavowal of this factor. The parties' briefs have highlighted the fact (noted by the majority) that the "runs with the land" factor isn't doing any work in this field. That is enough to convince me of the merits of an open acknowledgment of this reality. And I do not think that that acknowledgement requires the same kind of stare decisis analysis that would be required if we were outright overruling a prior decision, or completely reformulating a legal doctrine. In owning up to the fact that the "running with the land" factor plays no role in our decisions we would not be overruling Carter or Krejci . We would just be stating a reality. I would do that here, and I see no barrier to that move in the doctrine of stare decisis .
Reference
- Full Case Name
- Paul BAKER and Stephen D. Stuart, Petitioners/Appellees and Cross-Appellants, v. Stephanie CARLSON, Holladay City Recorder, and Holladay City, Respondents/Appellants and Cross-Appellees, and Ivory Development, LLC, Intervening-Respondent/Appellant and Cross-Appellee.
- Cited By
- 8 cases
- Status
- Published