Opinion ID: 1668813
Heading Depth: 1
Heading Rank: 3

Heading: Unus's Purchase of the Morrow House

Text: In June 2000, Unus entered into a contract to purchase the Morrow House. Stephen Chazen, a principal in Unus, acknowledged that he was aware when Unus purchased the property that the Morrow House was located in an area zoned R-3. In fact, the purchase contract was made contingent upon Purchaser [Unus] receiving acceptable zoning or variance for use as an office by a private foundation. The closing occurred on August 1, 2000; at that time, Unus voluntarily waived that contingency and struck the contingent language from the contract. Although Unus did not obtain a zoning variance or seek a change in zoning, shortly after taking possession of the property, it began using the Morrow House as office space. [3] In November 2000, the City of Birmingham cited Unus for violating the R-3 zoning classification by operating a business in a property zoned for single-family residential. On December 18, 2000, Unus petitioned the City of Birmingham to rezone the property from R-3 to Q-O & I. Unus's petition was first submitted to the Highland Park Neighborhood Association. The Highland Park Neighborhood Association voted unanimously to oppose rezoning the property. The petition to rezone was next presented to Birmingham's zoning advisory committee. After a hearing, two members of the zoning advisory committee voted against the petition and two members abstained from voting. The petition was then submitted to the Birmingham City Council for consideration. [4] On September 25, 2001, and again on October 2, 2001, the Birmingham City Council held public hearings to address Unus's petition to rezone the property. On October 2, 2001, the city council voted 6-0 to deny the petition. On that same day, Unus sued the City of Birmingham in the Jefferson Circuit Court, claiming, among other things, that the denial of its petition to rezone the Morrow House bore no relation to the health, safety, morals, and general welfare of the inhabitants of Birmingham and that the council's decision was arbitrary and capricious, violated Unus's procedural and substantive due-process rights, [5] denied Unus the legitimate and legal right to the use of its property, and violated the property rights of Unus as established by Alabama law. [6] Unus requested that the trial court order the City to rezone the Morrow House from R-3 to Q-O & I; that, pending the resolution of this action, the trial court enter a preliminary injunction preventing the City of Birmingham from interfering with Unus's continued occupancy and use of the Morrow House; and that the trial court permanently enjoin the City of Birmingham from interfering with the use of the property for any use permitted under the requested rezoning classification. Unus also sought damages. Shortly thereafter, the property owners were allowed to intervene in the action, pursuant to Rule 24, Ala. R. Civ. P. The trial court conducted a bench trial on October 13 and 14, 2003. Both Unus and the City of Birmingham presented expert witnesses in support of their respective positions on the rezoning petition. Residents from the Highland Park neighborhood also testified against the rezoning petition. The trial judge toured the Morrow House, observed the surrounding neighborhood, and visited two other historic residences in the Highland Park neighborhood. On March 4, 2004, the trial court entered its final judgment. In its order, the trial court found that the Morrow House was located in a neighborhood that had for many years been classified for mixed use. The trial court noted that nonresidential uses located in the same neighborhood as the Morrow House included churches, a park, a law office, a Planned Parenthood office, a bookstore, and the Donnelly House (a residence that housed a business engaged in the business of hosting weddings and other social gatherings). The trial court observed that the Morrow House faced Rhodes Park, around which many of these nonresidential uses were located. The trial court also noted that the proximity of the Morrow House to deteriorating apartments made it less appealing as a single-family residence, that the level of preservation of the Morrow House would be higher if the petition to rezone was granted, and that, if the petition was not granted, the Morrow House might meet the same fate as other residences in the area  deteriorating or being subdivided into apartments. The trial court concluded that the lot on which the Morrow House was located should not have been zoned R-3 in 1990 and that granting the rezoning Unus was requesting would not cause any harm to the health, safety, morals, or general welfare of the community and would indeed contribute to the preservation of the Morrow House. The trial court also concluded that, if properly limited, the requested rezoning would not detract from the attractiveness of the Highland Park neighborhood as a place for people to live and that there was no evidence indicating that the difference between 10 employees and 4 employees would affect any property owner or the neighborhood. The trial court concluded that the denial of the requested rezoning by the Birmingham City Council lacked a substantial relationship to the public health, safety, morals, and welfare of the community. The trial court also concluded that the city council's denial of the petition to rezone was not fairly debatable and that the petition should have been granted; additionally, the court concluded that the Birmingham City Council's refusal to rezone the Morrow House was clearly arbitrary and unreasonable. The trial court ordered that the Birmingham City Council grant Unus's petition to rezone the property from R-3 to Q-O & I, subject to the qualifications and limitations enumerated by the trial court. [7] The City of Birmingham appeals; the property owners appeal separately.