Citrus County v. Halls River Development

• Decision Date: 20 March 2009
• Docket Number: No. 5D08-975.,5D08-975.
• Parties: CITRUS COUNTY, Florida, Appellant, v. HALLS RIVER DEVELOPMENT, INC., Appellee.
• Court: Florida District Court of Appeals

8 So.3d 413

CITRUS COUNTY, Florida, Appellant, v. HALLS RIVER DEVELOPMENT, INC., Appellee.

No. 5D08-975.

District Court of Appeal of Florida, Fifth District.

March 20, 2009.

Rehearing Denied May 7, 2009.

Michele L. Lieberman, of Law Office of Michele L. Lieberman, Inverness, for Appellant.

Frederick T. Reeves, of Frederick T. Reeves, P.A., New Port Richey, and George T. Reeves, of Davis, Schnitker, Reeves & Browning, P.A., Madison, for Appellee.

ORFINGER, J.

Citrus County appeals a non-final order determining that it had "inordinately burdened" real property owned by Halls River Development Inc., as that term is used in the Bert J. Harris, Jr. Private Property Rights Protection Act, section 70.001, Florida Statutes (2005). The County contends that the trial court erred in finding that Ordinance 2002-A-10 ("the Ordinance") inordinately burdened Halls River's use of its real property; that Halls River had a reasonable, investment-backed expectation to develop its property as a multifamily condominium; or that the Ordinance burdened Halls River's existing use or vested right to use the property for a multifamily condominium resort. The County further argues that the trial court erred in holding that Halls River timely asserted its Harris Act claim. For the following reasons, we reverse.¹

BACKGROUND

Halls River purchased approximately eleven acres of real property located in Citrus County in January 2001 with the intention of building a condominium complex. At issue is the proposed development of that property, and more specifically, the interrelationship between the County's Comprehensive Land Use Plan and its Land Development Code.

The Local Government Comprehensive Planning and Land Development Regulation Act, Chapter 163, Part II, obligates local governments to adopt comprehensive land use plans to guide and control future land development. Galaxy Fireworks, Inc. v. City of Orlando, 842 So.2d 160, 165 (Fla. 5th DCA 2003); Home Builders & Contractors Ass'n of Brevard, Inc. v. Dep't of Cmty. Affairs, 585 So.2d 965, 966 (Fla. 1st DCA 1991). By law, each comprehensive plan must be reviewed every seven years in an Evaluation and Appraisal Report ("EAR"). The EAR is intended to assess the progress made in implementing the comprehensive plan. See § 163.3191, Fla. Stat. (2005). A comprehensive plan may also be amended through this process if the amendment is approved by the Florida Department of Community Affairs ("DCA"). The land development code is the document that implements the comprehensive plan. If there is a conflict between the comprehensive plan and the land development code, the comprehensive plan prevails. See § 163.3194, Fla. Stat. (2005).

In 1989, the Board of County Commissioners ("the Commission") adopted the County's Comprehensive Plan ("the Plan") in compliance with Chapter 163, after a series of public meetings. Prior to 1997, both the County's Plan and its Land Development Code ("LDC") were consistent, designating the property at issue as "Mixed Use" ("MXU"). This was a "catch all" multiple-use category, which permitted, among other uses, a multifamily condominium. Much of the other property in the vicinity of Halls River's property was designated both in the Plan and the LDC as Low Intensity Coastal and Lakes ("CL"), restricting development to one unit per twenty acres of real property. However, the property contiguous to Halls River's property was, and remains, a 360-unit R.V./mobile home park (of which the property was once a part), a restaurant and lounge. Protected wetlands and salt marshes are located across the Homosassa River from the Halls River property.

As required by law, the County prepared an EAR in 1996, and, based on that report, submitted various Plan changes to the DCA. After the DCA approved the 1996 EAR, the Commission adopted the 1996 EAR amendment in 1997. That Plan amendment included changing the Halls River property classification from MXU to CL. However, while the County changed the Halls River property classification from MXU to CL in the Plan and on the Generalized Future Land Use Map ("GFLUM"), the map that shows future land uses under the Plan, it unfortunately did not update the property's designation in the LDC or the LDC zoning maps. Those documents continued to reflect that the property was zoned MXU. The LDC and its maps were not amended because the County believed, erroneously as all concerned would later discover, that the 1996 EAR amendment allowed it to continue to approve development at higher densities in the areas reclassified from MXU to CL. That mistaken belief would be the basis for the difficulties that would later ensnare the parties.

F. Blake Longacre, an experienced real estate developer, is the principal owner and president of Halls River. He wanted to build a condominium project in the Homosassa River area and learned about the property from a local real estate broker. He determined that according to the LDC zoning map, the property was suitable for this use. Nonetheless, before entering into a contract to purchase the property, Mr. Longacre contacted the County Development Services Staff to confirm that Halls River could build its proposed project on the property. The County staff assured Mr. Longacre that development of multifamily condominiums was a proper use for the property. Mr. Longacre was further assured that if Halls River met all the LDC requirements, i.e., setbacks, environmental concerns, etc.; obtained the necessary permits from the U.S. Army Corps of Engineers ("USACE") and the Southwest Florida Water Management District ("SWFWMD"); and obtained the approval of the Commission after a public hearing, the project could be built.

In February 2000, Halls River entered into a contract to purchase the property. The contract included a due diligence period of 150 days to allow Halls River to "make inquiries to governmental authorities" to determine if the property was suitable for its intended purpose. Halls River retained a surveyor and an engineer to determine if a suitable project could actually be built on the property in compliance with the LDC and environmental concerns. Although the County staff and Halls River disagreed about the number of units that could be constructed on the property, the County staff agreed that multiple units could be built on the property if properly configured in conformity with the LDC.

Halls River closed on the property in January 2001. To address the County staff's concerns, Mr. Longacre continued to amend the project application and eventually got the County staff's approval as to the number of units as well as approvals from the USACE and the SWFWMD. On February 12, 2002, despite considerable public opposition, the Commission approved Halls River's application by a 3-2 vote.

The project's opponents made known their belief that Halls River's application was inconsistent with the Plan's CL designation for the property, and was unlawful, irrespective of the LDC's MXU designation of the property. They threatened litigation and shortly after the Commission's action, filed several lawsuits against the County in the trial court, challenging the project's approval.² In November 2002, the trial court overturned the Commission's approval of the project, concluding that the Plan, which had designated the property as CL since 1997, controlled over the LDC's MXU designation. The County's petitions for writs of certiorari in this Court were denied. See Citrus County v. Save the Homosassa River Alliance, 5D02-3824 (Fla. 5th DCA Apr. 19, 2003); Citrus County v. Richards et al., 5D02-3820 (Fla. 5th DCA May 19, 2003) (unpublished orders).

In the meantime, the County adopted the Ordinance, effective April 23, 2002, which conformed the LDC and the zoning maps to the Plan. However, recognizing that Halls River might have some vested rights, the Ordinance expressly exempted the Halls River property from its operation. It is this Ordinance that Halls River asserts created an inordinate burden on its development rights.

After this Court denied the County's requests for review of the trial court orders overturning the Commission's approval of the project, Halls River resubmitted its application to the County. Halls River and the County believed that when the trial court overturned the project approval, the parties were restored to the position that they enjoyed prior to the Commission's action, thereby, allowing Halls River to reapply. In response to the resubmitted application and the County's exclusion of the property from the operation of the Ordinance, the project's opponents again sought relief in the trial court, this time by filing a petition for a writ of prohibition. The petition sought to prohibit the County from approving any project on the property not authorized by the CL designation. The court granted prohibition, ruling that the Halls River project, as originally approved, was a violation of law. The trial court explained that the County's approval of the project was "illegal ... because [the project] ... is inconsistent with the Citrus County Comprehensive Plan" and "proposes a density more intense than that allowed by the Comprehensive Plan." The County then advised Halls River that because its resubmitted application was inconsistent with the Plan, it would not be considered.

Halls River notified the County of its claim for compensation under the Harris Act in April 2003. The County responded by issuing a "ripeness decision," identifying the allowable uses of the property and informing Halls River that it would "effectuate no change in its actions with respect to this matter and w[ould] not extend an offer of settlement."

Halls River then sued the County, alleging that the Ordinance inordinately burdened its property and sought compensation under the Harris Act. The complaint also asserted claims for declaratory relief pursuant to section 86.011, Florida Statutes (2005), and equitable...