Gannett Outdoor Co. of Arizona v. City of Mesa

• Decision Date: 12 January 1989
• Docket Number: No. 1,CA-CIV,1
• Citation: 159 Ariz. 459,768 P.2d 191
• Parties: GANNETT OUTDOOR COMPANY OF ARIZONA, a Delaware corporation, Plaintiff-Appellee, v. CITY OF MESA, a political subdivision of the State of Arizona, and Board of Adjustment of the City of Mesa, Defendants-Appellants. 9928.
• Court: Arizona Court of Appeals

Page 191

768 P.2d 191

159 Ariz. 459

GANNETT OUTDOOR COMPANY OF ARIZONA, a Delaware corporation, Plaintiff-Appellee, v. CITY OF MESA, a political subdivision of the State of Arizona, and Board of Adjustment of the City of Mesa, Defendants-Appellants.

No. 1 CA-CIV 9928.

Court of Appeals of Arizona Division 1, Department C.

Jan. 12, 1989.

Reconsideration Denied Feb. 23, 1989.

[159 Ariz. 460] Eaton, Lazarus & Dodge, Ltd. by Paul F. Lazarus, Susan G. Sendrow, David K. Jones, Phoenix, for plaintiff-appellee.

Shelley & Bethea by J. LaMar Shelley, Mesa, for defendants-appellants.

OPINION

CONTRERAS, Presiding Judge.

In this appeal, we consider the issue of whether the replacement of an existing multi-pole billboard structure with a new mono-pole structure of the same dimensions constitutes a "reasonable alteration" of non-conforming property within the meaning of A.R.S. § 9-462.02. We conclude that such a change in the structural support system of the billboard does not constitute a "reasonable alteration" within the meaning of the statute. Accordingly, we reverse the trial court's order requiring the City of Mesa to issue sign permits authorizing such structural change. We also remand the matter for entry of judgment in favor of appellants.

FACTS AND PROCEDURAL HISTORY

The facts essential to determination of this litigation are not in dispute. Prior to 1986, Gannett Outdoor Company of Arizona (Gannett) had established a number of outdoor advertising billboards in various locations in Mesa. At the time the billboards were installed they were a permitted use under existing regulations.

In 1986, the city of Mesa adopted a new Sign Code which, as later amended, prohibited additional billboards within the city limits. The new code made billboards that were installed prior to the amendment legal nonconforming uses. In April of 1987, Gannett applied to Mesa for a sign permit to allow it to replace certain existing multi-pole billboard structures with mono-pole structures. Mesa refused to issue the permit.

Gannett then applied to the Board of Adjustment of the City of Mesa for an interpretation of the Mesa Sign Code to determine whether Gannett could replace its multi-pole structures with mono-pole structures. The section of the Mesa city code at issue is § 4-4-10(C)(2), which provides:

A nonconforming sign structure shall not be re-erected, relocated or replaced unless it is brought in compliance with the requirements of this code.

Gannett contended that it was entitled to install the mono-pole structures pursuant to A.R.S. § 9-462.02 which precludes municipalities from prohibiting reasonable alterations to nonconforming property. The Board of Adjustment concluded that a complete replacement of an existing sign structure with a new structure was not a "reasonable alteration" protected under A.R.S. § 9-462.02, but rather, a replacement prohibited by the city code.

Gannett brought a special action in superior court from the decision of the Board of Adjustment. After oral argument, the trial court apparently concluded that a total replacement of the signs was not an alteration. The court also determined, however, that as long as the portion of the sign containing the advertising remains in place, a change in the support structure is not a total replacement. It ordered Mesa to issue sign permits allowing Gannett to replace the multi-pole structures so long as the portions of the billboards containing the advertising are not removed from their respective locations. The court held that such changes were reasonable alterations pursuant to A.R.S. § 9-462.02. The court also awarded attorney's fees to Gannett pursuant to A.R.S. § 12-2030. The City of Mesa has appealed.

STANDARD OF REVIEW

This civil appeal is brought from the superior court wherein a special action was filed seeking relief from the Board of Adjustment's decision. In this appeal, we are called on to review the actions taken by the Board, and in so doing, we are bound by the same standard of review as the superior court. City of Phoenix v. Superior Court, 110 Ariz. 155, 158, 515 P.2d 1175, 1178 (1973). Our review is limited to finding error. We may not substitute our opinion of the facts for the Board's, and if the evidence supports that decision, it should be affirmed. Id.

DOES A.R.S. § 9-462.02 PROTECT REMOVAL OF A NONCONFORMING STRUCTURE AND REPLACEMENT WITH A NEW STRUCTURE?

All parties agree that Gannett's billboards are legal nonconforming uses. They also agree that municipal regulation of signs is subject to the state zoning statutes. Levitz v. State, 126 Ariz. 203, 205, 613 P.2d 1259, 1261 (S.Ct.1980). The heart of the disagreement is whether the replacement of an existing sign structure with a new structure is a reasonable alteration of nonconforming property.

Public policy favors the eventual elimination of nonconforming uses. This is implicit in § 9-462.02 and throughout the entire statutory scheme empowering Arizona cities and towns to employ zoning regulation for land use planning. See A.R.S. §§ 9-462 to -462.07 (1977). See generally 1 R. Anderson, American Law of Zoning, § 6.07 (3d. ed. 1986). See also Mueller v. City of Phoenix, 102 Ariz. 575, 583-87, 435 P.2d 472, 480-84 (1967) (Struckmeyer, J., dissenting). This goal, of course, can be achieved only within the statutory scheme.

A.R.S. § 9-462.02 ¹ authorizes a municipality to purchase or condemn private property for the removal of nonconforming structures, but precludes a city from passing ordinances or regulations that prohibit nonconforming uses. The statute also precludes a city from prohibiting reasonable repairs or alterations of nonconforming uses. The purpose of statutes allowing nonconforming uses is to prevent the injustice of forcing retroactive compliance and the doubtful constitutionality of compelling immediate discontinuance of a nonconforming use. Watanabe v. City of Phoenix, 140 Ariz. 575, 578, 683 P.2d 1177, 1180 (App.1984); Phoenix City Council v. Canyon Ford, Inc., 12 Ariz.App. 595, 598, 473 P.2d 797, 800 (1970).

Mesa argues on appeal that the public policy favoring the elimination of nonconforming uses is jeopardized if the term "reasonable repairs or alterations" as used in A.R.S. § 9-462.02 is interpreted to permit the complete destruction and replacement of existing nonconforming structures with entirely new structures that would perpetuate indefinitely the life of the nonconforming property. Mesa also argues that the property interest protected under A.R.S. § 9-462.02 is the investment already made by individuals in existing property rather than the right to make further investments in new property in furtherance of the nonconforming use.

Gannett's contention before the Board of Adjustment was that it was merely making a reasonable alteration to its existing billboards by completely removing them and replacing them as long as the new billboards did not expand the size or change the use of the billboard. It emphasized that the new billboards would be at the same height and would not increase the area of the sign face of the old billboards. It further emphasized that the new billboards would be aesthetic improvements. Gannett's attorney offered to present evidence in the special action proceeding that the mono-pole structure had no greater life than the multi-pole structure. In any event, Gannett argues that A.R.S. § 9-462.02 expressly permits the perpetuation of nonconforming uses by permitting repairs or alterations, and limits the methods employed to terminate such uses to purchase and condemnation.

The meaning of the term "alteration" in A.R.S. § 9-462.02 has not been addressed in any Arizona appellate decision in the context in which it is raised in this litigation. However, in Arizona Foundation for Neurology & Psychiatry v. Sienerth, 13 Ariz.App. 472, 477 P.2d 758 (1970), this court had occasion to differentiate "repairs" and "alterations" permitted by the statute from "enlargements" and "extensions." The court concluded that a hospital, which was a nonconforming use, was exempt from obtaining original use permits or permits to repair or alter the buildings in existence when the zoning ordinance was passed. 13 Ariz.App. at 477, 477 P.2d at 763. However, the hospital was required to comply with the city ordinance requiring use permits when it sought to enlarge and extend its buildings. Id. In discussing A.R.S. § 9-462 as it then read, the court stated:

It seems clear that the statute was enacted to protect the rights of property owners whose property remains unchanged after a zoning ordinance is enacted which ordinance would make such property a nonconforming use. Thus, were appellants here applying for a building permit to cover solely alterations and repairs as opposed to alterations coupled with physical expansion, the City could not condition such permit upon appellants' obtaining a use permit....

Id.

The court then relied upon dictionary definitions of the terms in question to conclude that "it is evident that the words 'repair' and 'alteration' do not contemplate a physical expansion as do the words 'enlarge' and 'extend.' " Id.

In the present case both parties rely on Sienerth to support their positions. Mesa relies on Sienerth to support its contention that the court intended to protect only property which "remains unchanged after a zoning ordinance is enacted." Mesa points out that if Gannett's present billboards are removed and replaced with new billboards, their property does not remain unchanged. Rather, it is argued, they have obtained entirely different structures. Gannett relies on Sienerth for the proposition that as long as it does not propose an expansion of the use or an increase in the exterior dimensions of its...