Court Opinion

ID: 9586808
Source: CourtListenerOpinion
Date Created: 2023-08-21 23:15:27.575591+00
Date Added: 2024-06-11T17:32:52.768529
License: Public Domain

Smith, Justice,
dissenting.
The Majority correctly states that the primary issue in this case is whether Cohn Communities has any vested rights in the multi-family zoning of the 50-acre parcel. It is inappropriate, however, to consider the multi-family tract independent of the entire development. In 1970 National Homes, Cohn’s predecessor in title, presented to Clayton County a plan for the mixed use development of a 700-acre tract of land. Clayton County’s zoning ordinance has no provision for planned unit development so each parcel was separately zoned. National Homes spent approximately $700,000 on the project for an oxidation pond, sewer lines, and roads and streets including a major thoroughfare with an 80-foot right-of-way. This initial development was in support of the common scheme of development for the entire 700 acres. National Homes built and sold approximately 200 homes before economic conditions stopped further development. In 1985, National Homes sold their entire interest in the development to Cohn. Cohn was aware of the mixed-use development plan and there is no doubt that the purchase price of the remaining acreage reflected the value of the zoning scheme as well as National’s initial development investment. In fact, Cohn’s expressed purpose for buying into the development was to sell the multi-family tract in order to finance the development of the single-family parcel. The multi-family parcel was valuable to Cohn in the future development of the entire tract. So valuable in fact that Cohn chose not to rely on 17 years of unchanged zoning on the parcels in the development and sought assurance from the county planner that the 50-acre parcel was zoned multi-family. In reliance on the county planner’s response, Cohn closed the sale on the entire acreage and commenced development. Cohn spent nearly $900,000 developing the single-family portion and a nominal amount on the multi-family portion. The amounts spent on each parcel are irrelevant however because all the money was spent on the common scheme of development, each parcel being inseparable from the entire development scheme. Cohn has an investment backed expectation of the value of the multi-family parcel and that expectation is being diminished by the actions of the County.
The “intermediate” rule in this state is that where a landowner has substantially changed his position by expenditures in reliance of existing zoning ordinances and assurances of government officials he has acquired vested rights. Thus far this rule has only been applied to situations in which expenditures were made in reliance of assurances *361that building permits would issue. WMM Properties v. Cobb County, 255 Ga. 436 (339 SE2d 252) (1986); Cannon v. Clayton County, 255 Ga. 63 (335 SE2d 294) (1985); Barker v. County of Forsyth, 248 Ga. 73 (281 SE2d 549) (1981). In this case, Cohn has made no application for building permits but has relied on the existing zoning and assurances of the county planner while making its investment decision.
Decided September 9, 1987.
Dillard, Greer, Westmoreland & Wilson, George P. Dillard, for appellant.
Glaze, Fincher & Bray, George E. Glaze, Steven M. Fincher, James E. Ervin, for appellees.
As a general rule a purchaser of land takes subject to all rights and equities associated with the land. See Yancey v. Harris, 234 Ga. 320 (216 SE2d 83) (1975); 2 Patton on Titles 603, § 674 (2nd ed. 1957). A purchaser has constructive notice of these rights and equities if they were discoverable after reasonable inquiry. Not only did Cohn discover the zoning of the property, but, they made it an integral part of their bargain with National Homes. Cohn acquired National Home’s entire remaining interest in the mixed-use development and thus acquired a vested interest in the zoning plan. Cohn spent substantial sums in reliance on this zoning scheme and the unilateral action of the Zoning Commission will cause substantial damage to Cohn.
Even if one could conclude that Cohn had no vested interest in the zoning plan for the 50-acre tract, the fact remains that the sale of the parcel, now held in escrow, would dissolve and cause Cohn $425,000 in actual damages. Expert testimony at trial estimated that developing the 50-acre tract under the single-family zoning classification would cause over one million dollars in damages to Cohn. This is a significant diminution in value for which the County has offered no reasonable justification.
I respectfully dissent.