Opinion ID: 2087598
Heading Depth: 1
Heading Rank: 1

Heading: facts

Text: Appellees purchased a three-acre triangular tract of land in Annapolis in the mid-1970's for the purpose of developing it. They proposed to develop the land, called Parkway, in three phases. The last phase was designated as Lot 4 during the second phase of development. While seeking subdivision approval of the first phase, appellees agreed to provide, in the subsequent phases of the subdivision, at least 2,375 square feet of recreational space for the use of the first-phase residents. Thus, the parties agreed to defer creating the recreational space needed for the first-phase residents until a later date. The language of the 1976 resolution stated in pertinent part [t]hat the developer agree[s] to provide 2375 square feet of recreational space in an appropriate location as part of the future development of his remaining adjacent land in addition to any recreational area required by that development. City of Annapolis Resolution R-20-76 (Apr. 12, 1976) (emphasis added). In other words, the recreational area now at issue was required as a condition for approval of phase one (or Section I) in 1976. In return for not being required to provide, at that time, recreational area within Section I for the use of Section I residents, appellees agreed to provide it in a future phase of development, in addition to providing recreational space for the needs of the residents of those future phases. No timely challenge was made to the 1976 imposition of the future recreational area requirement. The parties to the agreement left the exact location of the agreed upon recreational space open for future approval. To some extent, the time of determining the specific location of the recreational space was dependent upon the development phase in which appellees chose to perform their part of the agreement. They put off creating the recreational space required for Section I until seeking subdivision approval for the last phase, Section III. The 1976 agreement was incorporated as a condition into Resolution R-20-76 approving the first-phase subdivision. The following year, phase two was approved and developed. It did not contain the recreational space that appellees had agreed to provide for the first-phase residents. At that time, the remaining two contiguous triangular parcels were combined as Lot 4. The third, and final, phase was submitted for subdivision approval in 1990. In this phase, appellees proposed to subdivide the final .87-acre parcel, Lot 4, of the development into five new lots. The five new lots were to be created from two contiguous triangular parcels that had been identified during the second phase of development as Lot 4. Four parcels of the final-phase subdivision were designated to be developed as eight duplex units. These four parcels were contained on one of the triangular parcels within Lot 4. The other triangular part of the original Lot 4 was redesignated on the proposed third-phase subdivision plat as new Lot 1. The proposed new Lot 1 was located on the corner of Tyler Avenue and Hilltop Lane and consisted of 5,538 square feet. The proposed third-phase subdivision indicated that new Lot 1 would be used for a single-family residence. The proposed third-phase subdivision also designated a 4,598 square foot recreational easement running behind and across the rear of the eight duplex units. It was appellees' contention that this proposed 4,598 square foot recreational area would satisfy the open space and recreational condition in the 1976 resolution that approved the first phase of the development. The Department of Planning and Zoning (DPZ) recommended denial of appellees' third-phase subdivision request on the basis of alleged density and traffic problems. The Planning and Zoning Commission (Commission) agreed and recommended a reduction in the number of units, and also found that the third phase, as proposed, violated the recreational area condition incorporated in Resolution R-20-76, and further violated City subdivision regulations. Appellees appealed to the City Board of Appeals, which upheld the Commission's findings. Appellees sought judicial review in the Circuit Court for Anne Arundel County. The circuit court, in that judicial review, reversed the decision of the Board of Appeals. The trial judge, Judge Bruce C. Williams, found: When the City Council approved the initial development of the Parkway property, its approval was conditioned on the inclusion of 2,375 square feet of recreational space on the property. [Appellees] propose[ ] to dedicate an easement across the rear portion of the duplex lots of the proposed subdivision to satisfy the recreational requirement. The Board of Appeals below held that such an easement would deprive ... each lot owner [the eight duplex owners] of his exclusive use of the property dedicated, [ [2] ] reducing the size of their lot below the requisite 3600 sq. ft. minimum. This Court finds that the Board of Appeals erred in finding that the lot size of each respective lot owner would be reduced by the provision of an open space easement on their lot. The Annapolis City Code contemplates figuring recreation areas into, rather than out of, minimum lot size area calculations.... Section 21.74.050 D states, the area of land set aside for common open space or recreational use may be included in determining the number of dwelling units permitted.... Nothing in the Annapolis City Code authorizes such determinations by the Commission. .... The Annapolis Comprehensive Plan does not support the exclusion of easement dedicated space in lot size calculations.... ... With regard to residential lot configurations, the plan encourages the establishment of block homeowners' associations, with pooling of portions of long back yards as common open space or garden areas, owned and maintained by the associations. An easement would accomplish this goal. The City Council should be afforded the opportunity to determine whether an easement would be appropriate. .... This Court finds that in light of changes in the Annapolis City's zoning regulations since the passage of R-22-76, the issue of recreational space needs to be resolved by the Annapolis City Council and not the Planning and Zoning Commission.... The Commission's denial cannot be supported by substantial evidence or its statutory authority. .... ORDERED, that the decision of the Board of Appeals is hereby REVERSED and that the Waterman subdivision plat be approved by the Planning and Zoning Commission to allow this case to proceed to the Annapolis City Council in accordance with the statutory scheme established by the City of Annapolis and the State of Maryland. [Third emphasis in original; all others added.] [Citations omitted.] After the Board of Appeals affirmed the Commission's decision, but before Judge Williams had reversed the Board of Appeals, the City enacted Ordinance O-2-93, which required site design review prior to subdivision approval. That site design review was to be done by the DPZ. Accordingly, after Judge Williams' reversal of the Board, appellees' subdivision application was resubmitted to the DPZ for site design review. [3] Subsequently, pursuant to the site design review required by the newly enacted ordinance, the DPZ and the Commission again expressed their reservations about density and traffic problems in their submission to the City Council. The DPZ and the Commission recommended approval of the third-phase subdivision and recommended three conditions. One of the conditions was that the single-family dwelling proposed for new Lot l be relocated. In approving the subdivision, the City Council agreed with the recommendation and imposed a limitation that no dwelling be permitted on new Lot 1. Additionally, they imposed a separate condition that the 2,375 square feet of recreational area required by the conditions for approval of the first-phase subdivision, be located on new Lot 1. See City of Annapolis Resolution No. R-47-95 (Dec. 11, 1995). Appellees responded by filing suit in the circuit court for damages only, alleging that the conditions attached to the approval created an unconstitutional taking of Lot 1. The circuit court found in favor of appellees and awarded damages. In the liability phase, the court's opinion initially stated: The Plaintiffs allege that there has been an unconstitutional taking of their property to the extent that they cannot freely develop Lot One of the Proposed Section III Subdivision. Nor can the Plaintiffs exclude others from using Lot One.... ... The use of the Plaintiffs' property [Lot One] as a mini-park would deprive the Plaintiffs of their right to exclude others.... ... It has long been held that a land use regulation does not effect a taking if it ... does not `deny an owner of all economically viable use of his land.' .... ... The Court finds that the City's actions in applying the [recreational area and no dwelling] conditions ... are proper in light of the recommendations made to it by the various sources discussed above.... The actions taken by the City created a nexus whereby the interests of the City, most notably traffic concerns, were addressed by the imposed conditions and were a proper exercise of the City's police powers.... .... ... Rather, the condition imposed upon Lot One is an impermissible taking because it singles out only one small portion of the entire Section III Proposal where there was evidence before the Council which suggested that the entire Section III Proposal would adversely affect traffic at that location. The circuit court went on to find an unconstitutional taking by focusing on Lot One: [I]t appears to the Court that the dedication of Lot One as recreational space for use as a mini-park would prove to be at least as hazardous to traffic patterns... as would a single family home. .... ... [T]he Court finds that [the] City Council's condition ordering that Lot One of the Section III Proposal be dedicated as recreational space to serve as a mini-park is not reasonably related to the needs that would be created by the subdivision.... .... ... [T]he Court finds that the actions... represent an impermissible taking... because the exactions made through the two conditions are not reasonably related to the impact [of] the proposed subdivision.... [Emphasis added.] The City filed a timely appeal to the Court of Special Appeals and we granted a writ of certiorari prior to that court's review of the matter. We reverse the circuit court.