Tweedy v. Matanuska-Susitna Borough Board of Adjustment and Appeals , 2014 Alas. LEXIS 168 ( 2014 )


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    Readers are requested to bring errors to the attention of the Clerk of the Appellate Courts,
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    corrections@appellate.courts.state.ak.us.
    THE SUPREME COURT OF THE STATE OF ALASKA
    CLIFTON O. TWEEDY,              )
    )                       Supreme Court No. S-15034
    Appellant,           )
    )                       Superior Court No. 3AN-12-04609 CI
    v.                         )
    )                       OPINION ON REHEARING
    MATANUSKA-SUSITNA               )
    BOROUGH BOARD OF                )                       No. 6940 – August 15, 2014
    ADJUSTMENT AND APPEALS,         )
    )
    Appellee.            )
    _______________________________ )
    Appeal from the Superior Court of the State of Alaska, Third
    Judicial District, Anchorage, Kevin M. Saxby, Judge.
    Appearances: Ronald L. Baird, Office of Ronald L. Baird,
    Anchorage, for Appellant. John Aschenbrenner, Deputy
    Borough Attorney, and Nicholas Spiropoulos, Borough
    Attorney, Palmer, for Appellee.
    Before: Fabe, Chief Justice, Winfree, Stowers, Maassen, and
    Bolger, Justices.
    STOWERS, Justice.
    I.    INTRODUCTION
    Clifton Tweedy began leasing property from the Matanuska-Susitna
    Borough on Big Lake in May 1988. The property included a house that was built in
    1968 and located less than 18 feet from the lakeshore. When Tweedy assumed the lease,
    the existing structure was exempt from the Borough’s 75-foot shoreline setback
    ordinance because it was constructed before any setback requirement existed. Shortly
    after he took possession of the property, Tweedy constructed a stairwell addition on the
    exterior of the house. In 2010 Tweedy applied with the Borough to purchase the
    property. Because structures on the property were located less than 75 feet from the
    shoreline, the sale required an exemption from the Borough’s setback requirement. The
    Borough Planning Director determined that Tweedy’s addition was unlawful and that the
    application could not be processed until Tweedy removed it. The Matanuska-Susitna
    Borough Board of Adjustment Appeals affirmed the Planning Director’s decision.
    Tweedy appealed to the superior court, which also affirmed. Because the 75-foot setback
    applied to Tweedy’s property when he constructed the addition, the addition was
    unlawful when it was built and he is not entitled to an exemption. We affirm.
    II.   FACTS AND PROCEEDINGS
    A.     Facts
    1.       History of the shoreline-setback requirement
    In 1973 the Matanuska-Susitna Borough Assembly (Assembly) adopted a
    shoreline-setback ordinance that prohibited structures “closer than 75 feet from the
    normal high water mark of a water course or body of water in a shoreland.”1 On
    June 18, 1981, the Assembly reworded the setback requirement and renumbered it as
    MSBC 16.25.480.2 The Assembly gave Title 16 of the Borough Code the heading
    “Subdivision Regulations.”3 The new setback requirement provided that “no structure
    or footing shall be located closer than 75 feet from the high water mark of a watercourse
    or body of water.”4
    The shoreline-setback ordinance did not initially contain a provision
    expressly exempting structures built before a setback requirement existed, but in October
    1986 the Assembly adopted an exemption for structures completed prior to
    January 1, 1986, if the owner had no knowledge of any violation before substantially
    completing construction.5 In November 1986 the Assembly reduced the setback to
    1
    Matanuska-Susitna Borough, Alaska, Ordinance 73-006 (July 3, 1973)
    (codified as former MSBC 08.45.112(b) (1973)).
    2
    Matanuska-Susitna Borough, Alaska, Ordinance 81-068 (June 18, 1981).
    3
    
    Id. 4 Id.
    (codified as former MSBC 16.25.480(A) (1981)).
    5
    Matanuska-Susitna Borough, Alaska, Ordinance 86-085 (Oct. 7, 1986)
    (codified as former MSBC 16.25.480(C) (1981)).
    -2-                                     6940
    45 feet,6 but a 1987 ballot initiative returned the setback to 75 feet.7 In March 1987 the
    Assembly extended the exemption from the setback requirement to apply to structures
    completed before January 1, 1987.8
    In September 1988 the Assembly repealed and replaced Title 16 and added
    a chapter to Title 17 entitled “Setbacks and Screening Easements.”9 The effect of this
    enactment was to move the 75-foot setback requirement from Title 16 to Title 17 as
    MSBC 17.55.020.10 The relevant language of MSBC 17.55.020(A) is identical to that
    of former MSBC 16.25.480(A).11 MSBC 17.55.020(C) maintains the exemption for
    construction completed prior to January 1, 1987.
    2.     Tweedy’s property
    The home on Lot 6B, Block 1, South Big Lake Addition was originally
    built in 1968. The house on the lot sits just 17.6 feet from the shore of Big Lake. On
    March 25, 1988, North American Savings and Loan Association, which preceded
    Tweedy as lessee, applied for an exemption from the setback requirements then
    contained in MSBC 16.25.480. The application included an as-built drawing showing
    the dimensions of the existing residence. The Matanuska-Susitna Borough Chief of
    Code Compliance approved an exemption from the shoreline setback for the structure,
    concluding that “it is my determination that the waterbody setback requirements of
    [MSBC] 16.25.480 do not apply to the structure(s) set out in this application.”
    Presumably the Chief of Code Compliance approved the exemption on the grounds that
    6
    Matanuska-Susitna Borough, Alaska, Ordinance 86-101 (Nov. 4, 1986).
    7
    Matanuska-Susitna Borough, Alaska, Setback & Public Easement Initiative
    Areawide (May 5, 1987).
    8
    Matanuska-Susitna Borough, Alaska, Ordinance 87-024 (Mar. 17, 1987).
    9
    Matanuska-Susitna Borough, Alaska, Ordinance 88-190 (Sept. 6, 1988).
    10
    
    Id. 11 MSBC
    17.55.020(A) provides that “no structure or footing shall be located
    closer than seventy-five feet from the highwater mark of a watercourse or body of
    water.” Former MSBC 16.25.480(A) differs only by rendering “seventy-five” in
    numerals: “75.”
    -3-                                      6940
    the house was constructed before January 1, 1987, and North American had no
    knowledge of violating any setback requirements prior to any construction it
    completed.12
    Tweedy assumed the lease of the property on May 11, 1988. Sometime
    shortly after taking possession, Tweedy constructed an exterior stairwell addition
    measuring six by eight by ten feet on the north side of the house. In 2010 Tweedy
    applied to purchase the property and its improvements from the Borough through a fee-
    simple purchase option available to him under his lease. Because the house was located
    less than 75 feet from the lakeshore, the sale required a setback exemption. As part of
    his application to purchase the property, Tweedy submitted another as-built drawing
    showing the dimensions of the structures on the property as of July 20, 2010. The 2010
    as-built drawing showed several structural additions, including the stairwell addition.
    The Borough sent a letter to Tweedy in October 2010 informing him that the additions
    on his property were not compliant with shoreline-setback requirements.
    In January 2011 Tweedy went to the Borough planning office and spoke
    with Susan Lee, the planner who reviewed his as-built survey, and Robert Guertin, the
    Chief of Code Compliance. They discussed the additions to the property and compliance
    with setbacks, and Guertin and Lee requested that Tweedy submit written documentation
    of additions to the property. Tweedy agreed to provide documentation and to move or
    remove certain additions, including an outhouse and fuel tank, to bring them into
    compliance.
    Tweedy submitted documentation showing that he constructed the stairwell
    addition on the north side of the house sometime after the first survey was submitted in
    1988.    Lee informed Tweedy that the stairwell addition was not compliant with
    MSBC 17.80.060(A)(1), which provides that “a nonconforming structure may not be
    enlarged or altered in any way unless the alteration or enlargement is otherwise
    specifically allowed by code,” and MSBC 17.80.060(A)(2), which provides that “a
    nonconforming structure may not be enlarged or altered vertically or horizontally, in a
    way which would increase the height, width, depth, area, or volume of the structure
    12
    See former MSBC 16.25.480(C).
    -4-                                    6940
    except as specifically allowed by current code for similar new structures in that location.”
    She further informed him that the stairwell was not eligible for a shoreline-setback
    exemption because it was not constructed before January 1, 1987. The Borough
    Planning Director issued a final administrative determination making the same findings.
    B.    Proceedings
    Tweedy appealed the Planning Director’s determination to the Matanuska-
    Susitna Borough Board of Adjustment Appeals (Board), and in December 2011 the
    Board    affirmed     the   Planning   Director’s   decision.   The    Board    relied     on
    MSBC 17.80.060(A)(2) and the “long standing interpretation of code that legal
    nonconforming structures may be maintained, but not enlarged in ways that are
    prohibited for new structures in the same location.” The Board concluded that the
    structure was “not eligible for any type of nonconforming determination due to the date
    it was constructed.”
    Tweedy appealed the Board’s decision to the superior court. He argued
    that: (1) the stairwell was a legal, nonconforming use under MSBC 17.80; (2) former
    MSBC 16.25.480 did not apply to his property because the property was platted prior to
    the effective date of that provision; (3) MSBC 17.55.020 could not be applied
    retroactively to improvements constructed prior to the date that ordinance was passed;
    and (4) if MSBC 17.55.020 applies, it violates due process and is an unconstitutional
    taking of property.
    The superior court concluded that former MSBC 16.25.480 applied to
    Tweedy’s property. The court explained that the ordinance on its face applied to
    property in all subdivisions, not only to construction in new subdivisions. The court
    further concluded that because the 75-foot setback requirement was in effect when
    Tweedy took possession of the property and built the stairwell, the addition violated the
    setback provision and the provision against expanding noncomplying structures and did
    not qualify for an exemption. The superior court also concluded that because the setback
    requirement was already in effect when Tweedy built the stairwell, there was no issue
    of retroactive application of an ordinance and no uncompensated taking. Finally, the
    -5-                                          6940
    court concluded that the shoreline setback ordinance does not violate substantive due
    process because it is reasonably related to a legitimate government purpose.
    III.   STANDARDS OF REVIEW
    “When the superior court acts as an intermediate appellate court, we
    independently review the merits of the underlying administrative decision.”13 Because
    of a zoning board’s expertise in administering zoning ordinances, “[w]e ordinarily give
    great weight to a zoning board’s interpretation of its own zoning code and accept its
    interpretation when the board supplies a reasonable basis for it.”14 But when, as is the
    case here, we are presented with a question of law that does not involve the Board’s
    expertise, we exercise our independent judgment,15 “adopt[ing] the rule of law that is
    most persuasive in light of precedent, reason, and policy.”16
    We interpret statutes, including municipal ordinances,17 “according to
    reason, practicality, and common sense, considering the meaning of the statute’s
    language, its legislative history, and its purpose.”18 “[T]he plainer the language of the
    13
    Heller v. State, Dep’t of Revenue, 
    314 P.3d 69
    , 72 (Alaska 2013).
    14
    Pruitt v. City of Seward, 
    152 P.3d 1130
    , 1139 (Alaska 2007) (quoting S.
    Anchorage Concerned Coal., Inc. v. Coffey, 
    862 P.2d 168
    , 173 n.12 (Alaska 1993))
    (internal quotation marks omitted). This standard applies to both planning commission
    and board of adjustment decisions. Balough v. Fairbanks N. Star Bor., 
    995 P.2d 245
    ,
    254 (Alaska 2000) (noting that both Planning Commission and Board of Adjustment
    decisions are entitled to a “presumption of validity”).
    15
    
    Pruitt, 152 P.3d at 1139
    (citing Griswold v. City of Homer, 
    55 P.3d 64
    , 68
    (Alaska 2002)).
    16
    Gillis v. Aleutians E. Bor., 
    258 P.3d 118
    , 120 (Alaska 2011).
    17
    See City of Skagway v. Robertson, 
    143 P.3d 965
    , 970 (Alaska 2006)
    (applying rule to interpretation of a municipal ordinance).
    18
    McDonnell v. State Farm Mut. Auto. Ins. Co., 
    299 P.3d 715
    , 721 (Alaska
    2013) (quoting Nelson v. Municipality of Anchorage, 
    267 P.3d 636
    , 639 (Alaska 2011))
    (internal quotation marks omitted).
    -6-                                     6940
    statute, the more convincing any contrary legislative history must be . . . to overcome
    [its] plain meaning.”19
    IV.	   DISCUSSION
    Tweedy’s main argument is that the shoreline-setback requirement in
    former MSBC 16.25.480 was a subdivision regulation that did not apply to his property
    because his land was subdivided before the ordinance was enacted. He further argues
    that because no shoreline setback applied to his property when he constructed the
    stairwell, the current shoreline-setback requirement of MSBC 17.55.020 was improperly
    applied retroactively to his stairwell addition, and that this retroactive application
    violated substantive due process or was an unconstitutional taking. Each of these latter
    arguments is based on the premise of Tweedy’s main argument: that no shoreline-setback
    requirement prohibited the stairwell at the time it was constructed. Because we conclude
    that the shoreline-setback requirement in former MSBC 16.25.480 did apply to Tweedy’s
    property when he constructed his stairwell, the stairwell was unlawful when it was
    constructed. Thus, the current code was not applied retroactively, there was no taking
    or violation of due process, and the addition was not from the shoreline-setback
    requirement.
    A.	     Former MSBC 16.25.480 Applied To Tweedy’s Property When He
    Constructed The Stairwell Addition.
    Tweedy argues that former MSBC 16.25.480, which required a 75-foot
    setback from the high water mark of a water course or body of water, did not apply to
    his property because the ordinance was a subdivision or platting regulation, not a zoning
    ordinance. Tweedy asserts that because MSBC 16.25.480 was a subdivision regulation,
    it only governed the process of subdividing land and could not apply to construction on
    property within a preexisting subdivision, especially where the subdivision was platted
    prior to the regulation’s enactment.20 The Borough responds that the setback ordinance
    19
    Oels v. Anchorage Police Dep’t Emps. Ass’n, 
    279 P.3d 589
    , 595-96 (Alaska
    2012) (quoting Peninsula Mktg. Ass’n v. State, 
    817 P.2d 917
    , 922 (Alaska 1991))
    (omission in original).
    20
    Tweedy’s lot was created by a subdivision of state land in 1966; former
    (continued...)
    -7-	                                    6940
    was a zoning ordinance of general application regardless of where the ordinance was
    located in the code. Because former MSBC 16.25.480 applied to all construction on
    subdivided property regardless of when the subdivision was created, it applied to
    Tweedy’s property, and Tweedy’s stairwell addition was unlawful when it was
    constructed.
    Former MSBC 16.25.480(A) provided:
    Except as provided in B and C of this section no structure or
    footing shall be located closer than 75 feet from the high
    water mark of a watercourse or body of water.
    The language of this ordinance, considered in the context of former MSBC Title 16 as
    a whole, does not create an exception from the shoreline-setback requirement for
    construction in preexisting subdivisions. Former MSBC 16.05.020 provided that
    Title 16 governed “all subdivisions within the Borough.”21 Tweedy cites the definition
    of “subdivision” in former MSBC 16.05.040(B)(22): “the division of a tract or parcel
    of land into two or more lots, sites or other divisions.”22 He argues that this definition
    means that the regulations in Title 16 governed only prospective applications to
    subdivide land. But the word “subdivision” also commonly means “[a]n area of real
    estate subdivided into individual lots.”23 It is clear that, though only the process of
    subdivision is defined, former Title 16 uses both meanings of the word. For example,
    former MSBC 16.25.020(B) refers to “[c]onstruction of improvements within
    subdivisions,” and former MSBC 16.25.100 references access to subdivisions.24 These
    uses clearly reference subdivisions as geographic places. Similarly, the language of
    20
    (...continued)
    MSBC 16.25.480 was enacted in 1981.
    21
    Matanuska-Susitna Borough, Alaska, Ordinance 81-068 (June 18, 1981).
    22
    
    Id. 23 THE
    A MERICAN H ERITAGE D ICTIONARY OF THE ENGLISH LANGUAGE 1735
    (5th ed. 2011); see also BLACK ’S LAW D ICTIONARY 1560 (9th ed. 2009) (defining
    “subdivision” as both “[t]he division of a thing into smaller parts” and “[a] parcel of land
    in a larger development”).
    24
    Matanuska-Susitna Borough, Alaska, Ordinance 81-068 (June 18, 1981).
    -8-                                       6940
    former MSBC 16.25.480 appears to regulate building within a physical subdivision, not
    the initial process of subdividing land.25 Because Title 16 included ordinances that
    governed the use of land within subdivisions, it makes little sense to conclude that
    Title 16 governed only the process of subdividing land. The more logical interpretation
    is that ordinances within former Title 16 that regulated the process of subdividing land
    governed prospective applications to subdivide land, and ordinances that regulated the
    use of subdivided land applied to all land within subdivisions, regardless of when the
    subdivision was created.
    Furthermore, subdivision regulations and zoning ordinances are not
    mutually exclusive categories,26 and neither the state legislature nor the Borough
    Assembly has defined any discrete boundary between municipal zoning and subdivision
    or platting authority.27 The application of a particular ordinance depends on the language
    and purpose of that ordinance, not what nominal category it is placed into. In this case,
    whether one calls it a zoning ordinance or a subdivision regulation, it is clear that former
    MSBC 16.25.480 governed how close to a body of water a property owner could build
    a structure on subdivided land.
    Moreover, the argument that the setback is ineffective because it is in a
    code section titled “Subdivision Regulations” is unavailing. The title of a statutory
    provision or code section can be an interpretive tool, but it is only relevant where
    legislative meaning is left in doubt.28 As discussed above, the plain language of former
    MSBC 16.25.480 leaves no doubt that it is generally applicable to all new construction.
    25
    
    Id. 26 See
    5 EDWARD H. ZIEGLER , JR ., RATHKOPF ’S THE LAW OF ZONING AND
    PLANNING § 89:4 (4th ed. 2012) (discussing the differences in the principal purposes of
    “zoning restrictions” and “subdivision regulations,” but observing that there is
    considerable overlap between the categories).
    27
    See AS 29.40.010-200; MSBC 17.52-56.
    28
    Boyd v. State, 
    210 P.3d 1229
    , 1232 (Alaska 2009) (“[U]nder the rules of
    statutory construction, where the meaning of a statute or regulation is clear and
    unambiguous, a court will not consider the heading of the statute or regulation.”).
    -9-                                       6940
    Further, requiring municipal ordinances to strictly conform with our interpretation of the
    definition of a code section or ordinance title would be inconsistent with the principle
    that municipal regulatory power should be liberally construed.29
    A shoreline-setback ordinance also fits within the stated purposes of former
    MSBC Chapter 16. The purposes listed for former Chapter 16 were:
    1.	    To implement the Borough’s areawide platting power
    under AS 29.33.15.
    2.	    To promote and protect the public health, safety and
    welfare; to provide for the proper arrangement of
    roads and streets in relation to existing or proposed
    roads and streets; to provide for adequate, useful and
    convenient open spaces; to provide for the efficient
    movement of vehicular, pedestrian and other modes of
    transportation; to assure adequate and properly placed
    utilities; to provide access for firefighting apparatus; to
    provide recreation, light and air, and to avoid
    population congestion; to facilitate the orderly and
    efficient layout and use of the land.[30]
    Tweedy suggests that the first enumerated purpose demonstrates that the ordinances
    within former MSBC Chapter 16 were limited to directly implementing the Borough’s
    platting authority. But a shoreline-setback ordinance is clearly consistent with the
    second enumerated purpose. The setback provision can easily be characterized as
    serving the purposes of providing open space, recreation, and avoiding congestion.31
    29
    Alaska Const. art. X, § 1; AS 29.35.400.
    30
    Matanuska-Susitna Borough, Alaska, Ordinance 81-068 (June 18, 1981)
    (codified as former MSBC 16.05.015(A) (1981)).
    31
    We have not directly addressed the purpose of shoreline-setback provisions,
    but in a case concerning a boundary-line-setback covenant, we held that setback
    requirements generally serve a number of purposes. Kohl v. Legoullon, 
    936 P.2d 514
    ,
    520 (Alaska 1997). There, we quoted with approval a Wisconsin court’s description of
    the broad purpose of setback provisions:
    [Z]oning setback and yard requirements are considered by
    courts to promote a variety of public purposes. They are held
    to relate to provision for light and air, fire protection, traffic
    safety, prevention of overcrowding, rest and recreation,
    (continued...)
    -10-	                                       6940
    Tweedy also argues that the superior court and the Board erred by relying
    on the 1987 initiative that restored the shoreline setback to 75 feet. We recently held that
    because of the statutorily required role of a planning commission, “zoning by initiative
    is invalid.”32 We have not considered whether to apply this holding retroactively. But
    we do not need to answer that question here because, even if the ballot initiative restoring
    the setback to 75 feet was unlawful, the setback would have been 45 feet under the
    November 1986 ordinance that the initiative was intended to change.33 Any expansion
    of the house on Tweedy’s property, which is only 17.6 feet from the lakeshore, would
    be unlawful under a either a 75-foot or a 45-foot setback.
    B.          The Board Did Not Apply MSBC 17.55.020 Retroactively.
    Tweedy argues that the Board erred by giving MSBC 17.55.020 retroactive
    application to January 1, 1987, when it was not passed until September 6, 1988. This
    argument is based on the premise that there was no setback provision applicable to
    Tweedy’s property before the Assembly passed MSBC 17.55.020. But as discussed
    above, former MSBC 16.25.480 did apply to Tweedy’s property. The Assembly simply
    moved        the    75-foot    setback   requirement    from   MSBC      16.25.480(A)     to
    MSBC 17.55.020(A), using identical language.34
    31
    (...continued)
    solving drainage problems, protecting the appearance and
    character of a neighborhood, conserving property values, and
    may, in particular cases, promote a variety of aesthetic and
    psychological values as well as ecological and environmental
    interests.
    
    Id. at 520
    n.10 (alteration in original) (quoting Town of Portland v. Wis. Elec. Power Co.,
    
    543 N.W.2d 559
    , 560-61 (Wis. App. 1995)).
    32
    Carmony v. McKechnie, 
    217 P.3d 818
    , 821 (Alaska 2009) (quoting
    Griswold v. City of Homer, 
    186 P.3d 558
    , 563 (Alaska 2008)) (internal quotation marks
    omitted).
    33
    Matanuska-Susitna Borough, Alaska, Ordinance 86-101 (Nov. 4, 1986).
    34
    See Matanuska-Susitna Borough, Alaska, Ordinance 81-068 (June 18,
    1981); Matanuska-Susitna Borough, Alaska, Ordinance 88-190 (Sept. 6, 1988).
    (continued...)
    -11-                                     6940
    C.	    The Setback Requirement Is Not Unconstitutional As Applied To
    Tweedy’s Property.
    Tweedy argues that MSBC 17.55.020 is facially unconstitutional and
    unconstitutional as it is applied to his property because it does not allow for legal,
    nonconforming structures. He argues that the ordinance violates substantive due process
    and is an unconstitutional taking of property without compensation. Because the setback
    provision was in place when Tweedy took possession of the property on May 11, 1988,
    and because the code does allow for nonconforming structures, the setback provision
    could not deprive him of any right or property interest, and the ordinance as applied to
    Tweedy does not violate any constitutional provision.
    1.	    Due Process
    Tweedy does not allege a violation of procedural due process; rather, he
    appears to argue that by not including a provision for nonconforming uses,
    MSBC 17.55.020 (and presumably former MSBC 16.25.480 if it applied to him) violates
    substantive due process.
    “A legislative body’s zoning decision violates substantive due process if
    it has no reasonable relationship to a legitimate government purpose.”35 We have held
    that a person who has a legal, nonconforming land use has a vested property right that
    34
    (...continued)
    Tweedy’s assertion that MSBC 17.55.020’s setback provision is
    inapplicable because the setback requirment was located in former MSBC 16.25.480
    when he constructed the stairwell is without merit. MSBC 17.55.020(C) provides that
    “[t]his section does not apply to structures where construction was completed prior to
    January 1, 1987 if the present owner or owners of the property had no personal
    knowledge of any violation of the requirements of this section prior to substantial
    completion of the structures.” “[T]he requirements of this section” references the
    requirements included in the section even when they were previously located elsewhere
    in the code. Because there was no MSBC 17.55.020 prior to September 6, 1988, an
    alternate interpretation would render subsection C entirely superfluous. Further, whether
    the exemption applies to the requirements included in former MSBC 16.25.480 is
    irrelevant because Tweedy constructed the stairwell after January 1, 1987, but while
    former MSBC 16.25.480 was still in effect; the construction was unlawful in either case.
    35
    
    Griswold, 925 P.2d at 1019
    (holding that zoning amendment to allow motor
    vehicle sales in a small area of the City of Homer was related to a legitimate government
    purpose and did not violate substantive due process).
    -12-	                                    6940
    may not be deprived without due process.36 A nonconforming use is “a use which
    lawfully existed prior to the enactment of a zoning ordinance, and which is maintained
    after the effective date of the ordinance, although it does not comply with the zoning
    restrictions applicable to the area in which it is situated.”37
    The setback requirement and the lack of a provision to allow for the
    expansion of existing nonconforming structures are both reasonably related to legitimate
    government purposes. The 1987 ballot initiative stated that the purposes of the setback
    requirement were to “maintain fisheries, protect water quality, and maintain public access
    to water,”38 and, as discussed above, the requirement may be characterized as serving a
    number of other purposes, including providing for open space, recreation, and avoiding
    congestion.39 Prohibiting expansion of nonconforming structures serves the same
    interests. These purposes are expressly within the government’s power under article VIII,
    sections 2, 3, 4, 14, and 17 of the Alaska Constitution.
    Current MSBC 17.55.020 and former MSBC 16.25.480 expressly allow
    nonconforming status for structures completed prior to January 1, 1987. In fact, the
    Borough gave the house on Tweedy’s property legal, nonconforming status in 1988.
    Further, MSBC 17.80.020 gives legal, nonconforming status to “structures built lawfully
    and made nonconforming by adoption of subsequent ordinances.” MSBC 17.55.020
    does not, as Tweedy contends, require “immediate cessation of a nonconforming use”;
    36
    Balough v. Fairbanks N. Star Bor., 
    995 P.2d 245
    , 262 (Alaska 2000)
    (holding that junkyard owner had vested right to operate junkyard after zoning change
    made that land use unlawful). This is consistent with the general rule in other
    jurisdictions. See 4 ZIEGLER , supra note 26, at § 72:2.
    37
    
    Balough, 995 P.2d at 261
    (quoting Earth Movers of Fairbanks, Inc. v.
    Fairbanks N. Star Bor., 
    865 P.2d 741
    , 742 n.1 (Alaska 1993)).
    38
    Matanuska-Susitna Borough, Alaska, Setback & Public Easement Initiative
    Areawide (May 5, 1987).
    39
    See Matanuska-Susitna Borough, Alaska, Ordinance 81-068 (June 18,
    1981) (codified as former MSBC 16.05.015(A) (1981)); Kohl v. Legoullon, 
    936 P.2d 514
    , 520 (Alaska 1997) (quoting Town of Portland v. Wis. Elec. Power Co., 
    543 N.W.2d 559
    , 560-61 (Wis. App. 1995)).
    -13-                                    6940
    it simply requires cessation of unlawful uses. Accordingly, the ordinance does not
    violate substantive due process.40
    2.     Takings
    Article I, section 18 of the Alaska Constitution provides that “[p]rivate
    property shall not be taken or damaged for public use without just compensation.” But
    a taking can only occur where a private property interest exists.41 When Tweedy took
    possession of his property on May 11, 1988, there was a 75-foot shoreline-setback
    provision in effect that prohibited him from expanding the existing structures on his
    property. Because Tweedy never had any lawful property interest in expanding the
    structures on his property within 75 feet of the lakeshore, we need not consider his claim
    that the setback provision constituted a taking. Enforcing the setback provision with
    regard to Tweedy’s stairwell construction did not deprive him of any property interest,
    thus it was not a taking.
    D.     The Board Did Not Err By Failing To Grant An Exemption.
    Tweedy argues that the Board erred by concluding that his stairwell was not
    a legal, nonconforming structure. The Board concluded that in order to be eligible for
    a shoreline-setback exemption, Tweedy needed to produce evidence showing that he
    constructed the stairwell before January 1, 1987. The Board’s conclusion is correct.
    MSBC 17.80.020 gives legal, nonconforming status to “structures built
    lawfully and made nonconforming by adoption of subsequent ordinances.”
    MSBC 17.80.060(A)(2) provides that:
    A nonconforming structure may not be enlarged or altered
    vertically or horizontally, in a way which would increase the
    height, width, depth, area, or volume of the structure except
    as specifically allowed by current code for similar new
    40
    We also observe that because Tweedy’s stairwell addition was unlawful
    when it was constructed, he had no vested right to keep the stairwell, and the Board’s
    application of the setback requirement to his property does not raise any procedural due
    process issues.
    41
    See Philips v. Wash. Legal Found., 
    524 U.S. 156
    , 163-172 (1998)
    (considering whether “interest income generated by funds held in IOLTA accounts is
    private property for purposes of the Fifth Amendment’s Takings Clause”).
    -14-                                      6940
    structures in that location. A nonconforming structure which
    straddles a required minimum setback line may be expanded
    vertically or horizontally only where the expansion is located
    outside the minimum setback distance.
    MSBC 17.55.020(C) exempts construction completed prior to January 1, 1987 from the
    shoreline-setback requirement, as long as the owner was unaware of the setback
    violation.
    As we have discussed, the 75-foot shoreline-setback requirement applied
    when Tweedy constructed his stairwell addition. The Borough recognized Tweedy’s
    house’s legal, nonconforming status in 1988, but the subsequent addition was plainly
    prohibited by former MSBC 16.25.480. And because no evidence suggests that the
    stairwell addition was constructed before January 1, 1987, it is not eligible for an
    exemption under MSBC 17.55.020(C).
    V.    CONCLUSION
    For the reasons discussed, we AFFIRM the judgment of the superior court.
    -15-                                   6940
    In the Supreme Court of the State of Alaska
    Clifton O. Tweedy,                             )
    )      Supreme Court No. S-15034
    Appellant,             )
    v.	                                 )                  Order
    )         Petition for Rehearing
    Matanuska-Susitna Borough                      )
    Board of Adjustment and Appeals,               )
    )
    Appellee.              )    Date of Order: August 15, 2014
    )
    Trial Court Case # 3AN-12-04609CI
    Before:	      Fabe, Chief Justice, Winfree, Stowers, Maassen, and
    Bolger, Justices
    On consideration of Appellant’s Petition for Rehearing filed June 27, 2014 and
    A ppellee’s response filed on July 14, 2014,
    IT IS O RDERED :
    1.     The Petition for Rehearing is G RANTED .
    2.     Opinion No. 6917, issued on June 20, 2014, is W ITHDRAWN .
    3.     Opinion No. 6940, is issued on this date in its place.
    The Opinion on Rehearing deletes references to “variance” but retains
    references to “exemption” with regard to the shoreline-setback. See Opinion on
    Rehearing at pages 2, 5, 9, 17, and 18.
    Entered at the direction of the court.
    Clerk of the Appellate Courts
    /s/
    Marilyn May
    Clifton O. Tweedy v. Matanuska-Susitna Borough Board of Adjustment
    Supreme Court No. S-15034
    Order of August 15, 2014
    Page 2
    cc:	   Supreme Court Justices
    Publishers
    Distribution:
    Ronald L Baird
    Law Offices of Ronald L Baird
    PO Box 112070
    Anchorage AK 995112070
    John L Aschenbrenner
    Deputy Borough Attorney
    350 E Dahlia Ave
    Palmer AK 99645