WCHS, Inc. v. City of Lynnwood
WCHS, Inc. v. City of Lynnwood
Opinion of the Court
Proponents of projects are entitled to have their proposals processed under the regulations in effect at the time a complete building permit application is filed,
FACTS
WCHS cares for persons with chemical dependencies by providing opiate substitution treatment services. The State recognizes these treatment centers as “essential public facilities.”
At that point, WCHS began a search for a site. It located space in the Alderwood Professional Building, a building located across from Alderwood Mall, where medical uses were already permitted outright under the Lynnwood Municipal Code (LMC). Lynnwood’s planning manager was contacted regarding the proposed use in this building. The manager informed WCHS’s agent that the proposed center was a medical use and thus a permitted use under the applicable zoning regulations. Relying on this representation, WCHS entered into a lease agreement with building representatives.
On November 8, 2002, WCHS submitted a building permit application to the City. WCHS needed to remodel to meet the requirements for state certification. The application contained all of the information required under RCW 19.27.095 (Building permit application — Consideration — Requirements) and LMC 16.04.070-.071 (Containing
On November 7, 2002, the City prepared notice of an emergency city council meeting for November 8, 2002, less than 24 hours before the call of the meeting. The notice does not give a time when it was issued or how it was disseminated to the public.
A proposed ordinance
On November 19, 2002, WCHS applied for a business license authorizing the operation of the treatment program in the city. The requirements for a business license are set forth in the municipal code, chapter 5.04 LMC. The code confers no discretion on the City with respect to approval or issuance. Nevertheless, the city attorney determined that the business license should be denied under the requirements of RCW 35A.82.020
On December 5, 2002, the City sent a letter to WCHS stating that the application for a business license was denied because RCW 35A.82.020 prohibited the City from licensing any business activity that has not first complied with the laws of the State (certification).
Because the City claimed the application was incomplete and halted process on the application for the building permit, WCHS determined that the City was not going to render a final appealable decision and therefore filed a
On May 5, 2003, over strenuous argument by the City, the trial court held that WCHS’s certification by DASA is not a prerequisite for obtaining a local business license or a building permit. The court also held that the building permit to make tenant improvements was complete and suitable for processing at the time of filing on November 8, 2002. The court found the City inappropriately treated WCHS’s building permit application as incomplete so the City could make the proposed use subject to ordinance adopted on November 12, 2002. Further, the trial court determined that the City did not have the authority to decide whether DSHS adopted regulations in accordance with state law. By writ of mandamus, the trial court ordered the City to process the applications for the building permit and the business license and render final decisions thereon in accordance with the court’s holdings by May 23, 2003.
DECISION
Washington’s doctrine of vested rights entitles proponents of projects, usually developers, to have their proposals processed under the regulations in effect at the time
The City contends that paragraph seven section 106.3.1 of the Uniform Building Code, incorporated into LMC 16.04-.071, allows the City to require state certification as an element of a complete application. But nowhere in the state or local criteria of a complete building permit application does it list DSHS/DASA certification of the treatment facility as a prerequisite. The City makes an absurd argument that WCHS has to obtain state certification before applying for a building permit. To give this argument weight the City would also have to argue the same for the owners/operators of other state-certified businesses such as daycare facilities, hospitals, pharmacies or beauty salons. In fact, as indicated in the record, DSHS cannot certify an opiate substitution treatment facility until it has seen the completed facility. To the extent that state law authorizes a building official to require other data and information, as a matter of due process such information must be reasonably set forth in the local ordinance governing the requirements for a com
The purpose of the building code is to ensure that applicable standards and requirements are met in the construction of buildings or improvements. The purpose of a “complete application” requirement is to allow the local jurisdiction to determine what the developer has applied for and what rights have accrued in order to evaluate whether the proposed improvements will be properly constructed. Here, the City of Lynnwood does not need to have certification in hand to be able to determine whether the proposed improvements conform to building standards.
The City also argues that a building permit application is not complete for vesting purposes until the applicant first obtains a business license. This argument is equally ridiculous. The City claims its municipal code prioritizes permits and licenses, and a permit or license listed lower on the list cannot issue before one above it is granted. However, the higher priority argued here is that of a “Business license — Out of city.” The treatment center will be in the city.
Again, nowhere in state or local laws listing the requirements for a complete application for a building permit is there a requirement for prior possession of a business license. Even the City’s own planning manager indicated that an applicant for a land use permit rarely applies for a business license until the building permits have been approved.
Even if we were to accept the hierarchy of the City’s priority list, chapter 2.76 LMC sets forth only the order of permit issuance. The issuance of a business license has
As noted in West Main Associates v. City of Bellevue, a city cannot deny a developer the ability to vest rights until after a series of permits is obtained. Any such ordinance or application procedure is unduly oppressive upon individuals. Any such preapplication procedure established by the City is vague and discretionary.
The City also claims that a Lynnwood building official has discretion to determine the requirements of a complete application, and determine whether those requirements have been satisfied. But it has long been held that the discretion permissible in zoning matters is that exercised in adopting the zone classifications with the terms, standards and pertinent requirements, which must be applicable to all persons alike. The acts of administering a zoning ordinance do not go back to the questions of policy and discretion, which were settled at the time of the adoption of the ordinance.
The City also contends the trial court erred in determining that the City was wrong to claim it could not process a business license application because WCHS had not obtained certification from DSHS/DASA. The City argues the business license application was incomplete and could not be approved because WCHS had not previously obtained certification for the opiate substitute treatment center. The City asserts that the failure to obtain certification prior to applying for a business license is tantamount to failure to comply with the general laws of the State. And, of course, the City also claims that it could not issue the building permit until the business license was issued. If this argument were accepted, the City would have created its own “Catch-22,” a necessarily arbitrary circumstance.
LMC 5.04.020 makes it illegal for a person or corporation to conduct business or engage in an occupation without obtaining a business license. LMC 5.04.030 sets forth the requirements for a business license application. Nothing in that section requires WCHS to have received its certification from DSHS/DASA before applying or indicates that a lack of certification can be the basis for a denial.
Under chapter 70.96A RCW, there is no doubt that DSHS/DASA certification is a prerequisite to the actual distribution of opiate substitutes and receiving public funds. A business that proposes to provide such treatment, but has not yet been granted certification, is not in violation of chapter 70.96A RCW or regulations thereunder if the business applies for and is in the process of obtaining permits from the local government for that purpose.
Next, the City claims its letters of December 5 and 6, 2002, were final orders that should have been administratively appealed or subject to LUPA (Land Use Petition Act, chapter 36.70C RCW) appeals. A review of the letters indicates otherwise and supports the decision of the trial court.
No exhaustion of administrative remedies requirement arises without issuance of a final, appealable order.
The City’s December 6, 2002 letter regarding the building permit application does not constitute a final appealable decision. The letter does not use the word decision, final or appealable. In fact, the letter indicates that the application is “incomplete” but would remain open for 180 days. But the letter did not comply with the City’s own code, LMC 1.35.040. The letter was sent by standard mail to the architect for WCHS, with no copy to WCHS, and was not
The City’s December 5, 2002 letter regarding denial of the business license also does not constitute a final appeal-able decision. LMC 5.26.100 provides that when the City’s finance director refuses to grant a license, he or she must notify the applicant in writing and inform the applicant of the right to a hearing before the police chief within 10 days of the date of the notice. Further, the letter did not state or suggest that the letter regarding the need for DSHS/DASA certification prior to the issuance of a business license constituted a final agency decision. Additionally, the City later wrote WCHS that the WCHS business license application had not been “denied,” but only deemed incomplete. Because of the unclear, inconsistent, and noncomplying nature of these letters, they were insufficient to constitute final orders. No exhaustion of administrative remedies arose.
Finally, the Land Use Petition Act, chapter 36.70C RCW, provides the exclusive means for review of land use decisions. LUPA defines a “land use decision” as a final determination by a local jurisdiction’s body or officer with the highest level of authority to make the determination, including those with authority to hear appeals.
The decision of the trial court is affirmed.
Coleman and Schindler, JJ., concur.
Review denied at 152 Wn.2d 1034 (2004).
See RCW 70.96A.400-.410; ch. 388-805 WAC.
Contrary to the City’s argument, there is no specific requirement in these provisions that state certification or possession of a city business license is required to complete an application. The City uses the “catch-all” provision to “provide other information” found in LMC 16.04.070 as the reason the application was incomplete.
Ordinance 2429.
Excise tax section authorizing excises for regulation of licenses and permits.
It is presumed that the city attorney meant to reference RCW 70.96A.410 (department certification and definition of opiate substitution treatment).
Ex. A to WCHS’s Br.
As noted above, the requirements for complete building permit applications are contained within RCW 19.27.095 and LMC 16.04.070-.071. A review of those sections indicates that certification by DSHS/DASA, or the possession of a business license, is not a prerequisite to determining whether a building permit application is complete.
On January 2, 2003, Kenneth Stark, Director of DASA, provided written notice to the City that WCHS was in compliance with state law pertaining to opiate substitution treatment services on November 8, 2002, and had been in compliance at all times thereafter. Under state rules, WCHS is only required to be certified prior to the actual dispensing of opiate substitutes. (Clerk’s Papers (CP) at 431-34, 472-73).
Erickson & Assocs. v. McLerran, 123 Wn.2d 864, 867-68, 872 P.2d 1090 (1994) (citing W. Main Assocs. v. City of Bellevue, 106 Wn.2d 47, 720 P.2d 782 (1986)). See RCW 19.27.095(1).
Building permit application — Consideration—Requirements.
Containing section 106.3 UBC amended — contents of building permit and fully complete building permit application defined, as well as sections 1.35.010 and 1.36.015 of the LMC.
See Pinecrest Homeowners Ass’n v. Glen A. Cloninger & Assocs., 115 Wn. App. 611, 624, 62 P.3d 938 (requirement that proposals demonstrate compliance with comprehensive plan unduly vague and enabled arbitrary and discretionary enforcement of the law), review granted, 150 Wn.2d 1001, 77 P.3d 650 (2003).
Friends of the Law v. King County, 123 Wn.2d 518, 525, 869 P.2d 1056 (1994).
W. Main Assocs., 106 Wn.2d at 53. See also Adams v. Thurston County, 70 Wn. App. 471, 855 P.2d 284 (1993).
W. Main Assocs. v. City of Bellevue, 106 Wn.2d 47, 52-53, 720 P.2d 782 (1986). In West Main, the City of Bellevue adopted an ordinance defining the elements for a complete building permit application that required the applicant to obtain conditional use permits, get site plan approval, and a series of other actions before it could vest its rights by filing a building permit application. The court invalidated the ordinance because it improperly established several hurdles for West Main to clear before it could vest its rights.
State ex rel. Ogden v. City of Bellevue, 45 Wn.2d 492, 495, 275 P.2d 899 (1954).
See Friends of the Law, 123 Wn.2d at 525.
See W. Main Assoas., 106 Wn.2d at 53.
Declaration of Kenneth Stark, director of the DASA division of DSHS.
Valley View Indus. Park v. City of Redmond, 107 Wn.2d 621, 634, 733 P.2d 182 (1987) (citing RCW 34.04.130; Bock v. State Bd. of Pilotage Comm’rs, 91 Wn.2d 94, 99, 586 P.2d 1173 (1978)).
Valley View, 107 Wn.2d at 634.
See LMC 1.35.040, which, among other things, includes who gets notification (LMC 1.35.040(B)), a requirement that the statement include that the applicant may appeal, the time limits for the appeal, and the process for making an appeal (LMC 1.35.040(A)(4)).
RCW 36.70C.020d).
Pac. Rock Envtl. Enhancement Group v. Clark County, 92 Wn. App. 777, 781-82, 964 P.2d 1211 (1998).
Reference
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