City of Okoboji, Iowa v. Okoboji Barz

• Decision Date: 26 May 2006
• Docket Number: No. 04-1554.,04-1554.
• Citation: 717 N.W.2d 310
• Parties: CITY OF OKOBOJI, IOWA, Appellant, v. OKOBOJI BARZ, INC., d/b/a Okoboji Boats and Leo Parks, Jr., Appellees.
• Court: Iowa Supreme Court

Page 310

717 N.W.2d 310

CITY OF OKOBOJI, IOWA, Appellant, v. OKOBOJI BARZ, INC., d/b/a Okoboji Boats and Leo Parks, Jr., Appellees.

No. 04-1554.

Supreme Court of Iowa.

May 26, 2006.

Rehearing Denied July 18, 2006.

Michael J. Chozen of Chozen & Saunders, Spirit Lake, for appellant.

Mark McCormick of Belin Lamson McCormick Zumbach Flynn, P.C., Des Moines, and Phil C. Redenbaugh of Phil C. Redenbaugh, P.C., Storm Lake, for appellees.

WIGGINS, Justice.

In this appeal, we must decide whether the proposed operation of a bar on lakefront property constitutes an unlawful expansion of a nonconforming use under a city's zoning ordinance and a violation of the special use permits granted by the board of adjustment. The district court determined the proposed use of the property for a bar did not violate the city zoning ordinance or the special use permits. Because we disagree with the district court's determination, we reverse the judgment of the district court and remand the case for the court to enter a permanent injunction enjoining the owner and his corporation from using the property as a bar.

I. Background Facts and Proceedings.

The property in question in this case is located on the lakeshore of Smith's Bay on West Lake Okoboji. A marina has been located on the property since the 1890's. Until the mid-1970's, the property was operated as two separate marinas with different owners. One property was known as the Cove and the other as Okoboji Boats. The surrounding neighborhood is primarily residential, with some commercial activity.

In 1972, the City of Okoboji (City) enacted a zoning ordinance. Under the ordinance, the marinas were zoned lakeshore residential. Lakeshore residential permits single-family homes and prohibits commercial uses. Okoboji Zoning Ordinance art. VII, § 2(A)(1) (1995) (originally codified in 1972). Accordingly, the Cove and Okoboji Boats became nonconforming uses. The minutes from the Okoboji planning and zoning commission meeting where the commission discussed the ordinance reflect the commission's

suggest[ion] that these [nonconforming uses] be given a perpetual special permit to continue their respective businesses regardless of any type of disaster that may destroy the entire operation [contrary to a provision in the ordinance prohibiting rebuilding if such a use is damaged more than fifty percent of its replacement value. The commission noted it] should be stipulated, however, that the permit is limited to the specific operation or business for which it was originally intended.

In 1973, the owner of Okoboji Boats filed an application for a special use permit stating:

We request that the provision of Ordinance No. 63 stating that if a non-conforming business is destroyed beyond 50% of replaceable value, the business may not be rebuilt, be waived, as pertains to the business known as "Okoboji Boats." The business being a sales, service, and storage facility for boats.

The Okoboji board of adjustment granted the permit as requested.

Around the same time, the owner of the Cove filed an application for a special use permit. The application stated:

I request that the provisions of Art. IV, Sec. 4, par. B be waived so that a non-conforming use of a building destroyed or damaged more than 50% of its then replacement value could be restored; also I request that the provisions of Art. IV, Sect. 4 which states that no building or land devoted to a use not permitted by this ordinance in a residential district in which such building or land is located, except when required by law, shall be enlarged, extended, constructed, reconstructed, substituted or structurally altered, unless the use thereof is changed to a use permitted in the district in which such building, structure or premises is located, be also waived. The Cove is such a business involved in sales, rental, service and storage of boats, snowmobiles and related items.

The board granted the permit specifying in part

[t]hat all objections be overruled and the permit application be approved subject to the following restrictions: That the proposed building be utilized for only boat sales, service, storage facilities, and related various business, and further provided that the proposed building be no higher than specified in the attached site plan, which is 15' above street grade, adequate parking as defined in Ord. 63 and 10' side yards.

In 1975, the two properties began operating as a single marina known as Okoboji Boats. The hours of operation were typically 8 a.m. to 5 p.m., with the gas dock sometimes operating until 8 p.m. Around this time, the City issued a building permit to the marina for some expansion and remodeling. In addition, the marina eventually began selling beer intended for consumption off the premises as well as soda, snack foods, and microwavable sandwiches. The marina also expanded its inventory of boating equipment, apparel, and accessories.

In January 2001, Leo Parks, Jr. purchased Okoboji Boats. Parks leased a portion of the marina during that summer to an individual who operated a business that included the sale of carryout broasted chicken. The broasted chicken operation brought a myriad of complaints from the neighbors. With the support of numerous property owners in the neighborhood, the City filed a petition for declaratory judgment and injunctive relief, claiming the operation of the chicken business was contrary to the zoning ordinance. The court denied the City's request for a temporary injunction. The City dismissed the case. The chicken business eventually closed.

In September 2003, a corporation controlled by Parks, Okoboji Barz, Inc., leased the marina property. In October, Parks' corporation applied for an on-premises class C commercial liquor license for the marina. This license allows the licensee to sell liquors, wine, and beer by the drink for consumption on the premises. Iowa Code § 123.30(3)(c) (2003). Parks' proposed operation of a bar contemplates serving alcohol inside and outside of both buildings on the premises, year-round and every day of the week. Parks contends a bar "fills the piece of the puzzle to make a modern day marina complete."

Parks intends to operate a bar at this marina under the same business model he is running at a different marina he owns. At the other marina, Parks operates a tiki bar known as the Barefoot Bar. The revenue from the Barefoot Bar contributes approximately one and a half percent of the marina's gross sales. The Barefoot Bar is not intended to be a late night bar, but rather a "lakeside sunny day bar." It is usually open to 10:30 p.m., but on some occasions it remains open until midnight. The bar's activities include karaoke, live music, hog roasting, and monthly full moon parties.

The City denied Okoboji Barz, Inc.'s application for a liquor license on the grounds the "operation of a tavern/restaurant on premises represents a substantial change in the nature and character of the use permitted under the special use permit."

In November, the City filed a petition against Okoboji Barz, Inc., d/b/a Okoboji Boats, and Parks for declaratory judgment and injunctive relief. The petition was filed in light of Okoboji Barz, Inc.'s appeal to the alcoholic beverages division of the Iowa department of commerce from the City's denial of its application for a liquor license. The City sought a temporary and permanent injunction against the operation of a tavern or bar on the marina property as such operation constituted an unlawful expansion of a nonconforming use, as well as rulings that such operation violated conditions of a special use permit, allowing the board of adjustment to revoke the permit. The district court issued a ruling denying the City's requested relief. The City appeals.

II. Issues.

One issue raised on appeal by the City is whether the district court erred when it ruled that the operation of a bar on the marina property does not violate the City's zoning ordinance and the special use permits issued by the board of adjustment. The City also asks us to decide if the board of adjustment may revoke one of the special use permits.

III. Scope of Review.

The district court tried the City's petition for declaratory judgment and injunctive relief as an equity action. Therefore, our review is de novo. Perkins v. Madison County Livestock & Fair Ass'n, 613 N.W.2d 264, 267 (Iowa 2000). Under this review, we give weight to the fact findings of the district court, especially as to the credibility of witnesses, but we are not bound by them. Id.

IV. Analysis.

A. Did the district court err when it ruled that the operation of a bar on the Okoboji Boats property does not violate the City's zoning ordinance and the special use permits issued by the board of adjustment?

To decide this appeal, we must consider the interpretation and application of the Okoboji zoning ordinance. "In interpreting ordinances it is appropriate to apply the general rules of construction for statutes." Lauridsen v. City of Okoboji Bd. of Adjustment, 554 N.W.2d 541, 543 (Iowa 1996). "We resort to `the rules of statutory construction only when the terms of [a] statute are ambiguous.'" State v. Wiederien, 709 N.W.2d 538, 541 (Iowa 2006) (alteration in original). Ambiguity exists if reasonable persons can disagree on the meaning of a statute. Id. An ambiguity may arise from the meaning of particular words or from the general scope and meaning of a statute in its totality. Id.

We have stated:

The goal of statutory construction is to determine legislative intent. We determine legislative intent from the words chosen by the legislature, not what it should or might have said. Absent a statutory definition or an established meaning in the law, words in the statute are given their ordinary and common meaning by considering the context within which they are used. Under the guise of construction, an interpreting body may not extend, enlarge or otherwise change the meaning of a...