917 LUSK, LLC v. City of Boise , 158 Idaho 12 ( 2015 )


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  •                    IN THE SUPREME COURT OF THE STATE OF IDAHO
    Docket No. 41214
    917 LUSK, LLC, an Idaho limited liability              )
    company,                                               )
    )     Boise, June 2014 Term
    Petitioner-Appellant,                   )
    )     2015 Opinion No. 16
    v.                                            )
    )     Filed: February 10, 2015
    CITY OF BOISE, a political subdivision in              )
    the State of Idaho,                                    )     Stephen Kenyon, Clerk
    )
    Respondent,                             )
    )
    and                                           )
    )
    ROYAL BOULEVARD ASSOCIATES, LP,                        )
    an Idaho limited partnership,                          )
    )
    Intervenor-Respondent.                             )
    Appeal from the District Court of the Fourth Judicial District of the State of
    Idaho, Ada County. Hon. Kathryn A. Sticklen, Senior District Judge.
    The decision of the district court is reversed.
    Spink Butler, LLP, Boise, for appellant. JoAnn Butler argued.
    Givens Pursley, LLP, Boise, for respondent Royal Boulevard Associates, LP.
    Gary Allen argued.
    Boise City Attorney’s Office, Boise, for respondent City of Boise. Mary Watson
    argued.
    HORTON, Justice.
    This case arises from 917 Lusk, LLC’s (Lusk) petition for judicial review of the Boise
    City Council’s (City Council) decision granting a conditional use permit for Royal Boulevard
    Associates, LP (Royal) to build an apartment complex. The Ada County district court affirmed
    the City Council’s decision and Lusk timely appealed. We reverse the decision of the district
    court.
    1
    I. FACTUAL AND PROCEDURAL BACKGROUND
    In the fall of 2011, Royal’s predecessor in interest applied for permission to build a
    352,000 square foot, five-story, multi-family apartment complex called River Edge Apartments
    (River Edge) at 1004 West Royal Boulevard in Boise. The site of the proposed construction is
    near Boise State University, adjacent to the Boise River, east of Ann Morrison Park, and west of
    property owned by Lusk. The site is zoned Residential Office with a Design Review Overlay (R-
    OD). Multi-family housing is an allowed use for this location. However, the Boise City Code
    (BCC) requires a conditional use permit (CUP) in order to construct a building more than 35 feet
    tall in an R-OD zone. If constructed as planned, River Edge will be between 59 and 63 feet tall.
    Lusk was entitled to notice of the application for a CUP due to the proximity of its
    property to the proposed project. Lusk owns the Keynetics, Inc., building located immediately
    east and south of River Edge’s proposed building site.
    On March 5, 2012, the Boise Planning and Zoning Commission (Commission) held a
    hearing on the River Edge application, receiving testimony from City staff, the applicant team,
    and members of the public. The Commission unanimously approved granting the River Edge
    application for a CUP and variance allowing the height exception. The following day, the
    Commission provided a written explanation for its decision as to the variance and the CUP. This
    document set forth the conditions of approval, including twelve site-specific conditions.
    Lusk appealed the Commission’s decision to the City Council, contending that the
    Commission’s decision failed to address the requirements for a CUP. In a 15-page letter, Lusk
    outlined its claims of error. Lusk asserted multiple errors in the Commission’s approval,
    including claims that the proposed building was incompatible with buildings in the immediate
    vicinity due to its height and design aesthetics. Of particular importance to this appeal is the
    focus that Lusk placed on the impact of constructing a 622-bedroom apartment complex with
    280 automobile parking spaces, given that River Edge’s plans were to lease the bedrooms on an
    individual basis to students. Lusk asserted that “the proposed project will place an undue
    burden on transportation and other public facilities in the vicinity” and “the proposed
    project will adversely affect other property in the vicinity.”
    2
    On April 17, 2012, the City Council upheld the Commission’s approval of the River Edge
    CUP and denied Lusk’s appeal. 1 In addition to adopting the Commission’s reasons for its
    decision, the City Council directly addressed Lusk’s concern regarding parking: “The Council
    also found that the public record from the Planning and Zoning Commission meeting revealed a
    robust discussion regarding parking. The Commission determined that the project was correctly
    designated as multi-family and that the level of provided automobile parking was sufficient.”
    Lusk appealed to the district court, which affirmed the City Council’s decision. Lusk
    timely appealed to this Court.
    II. STANDARD OF REVIEW
    The Local Land Use Planning Act (LLUPA) allows an affected person to seek judicial
    review of an approval or denial of a land use application, as provided for in the Idaho
    Administrative Procedure Act (IDAPA). I.C. § 67-6521(1)(d); Dry Creek Partners, LLC v. Ada
    Cnty. Comm’rs, ex rel. State, 
    148 Idaho 11
    , 16, 
    217 P.3d 1282
    , 1287 (2009).
    When a district court acts in its appellate capacity pursuant to IDAPA, “we review the
    district court’s decision as a matter of procedure.” Williams v. Idaho State Bd. of Real Estate
    Appraisers, 
    157 Idaho 496
    , 502, 
    337 P.3d 655
    , 661 (2014) (quoting Jasso v. Camas Cnty., 
    151 Idaho 790
    , 793, 
    264 P.3d 897
    , 900 (2011)). When doing so, we conduct an independent review
    of the agency record. Dry Creek Partners, 
    148 Idaho at 16
    , 
    217 P.3d at 1287
     (2009). This Court
    will affirm a district court’s decision upholding a zoning board’s action unless the party
    1
    The BCC characterizes the role of the City Council in deciding appeals as “quasi-judicial.” BCC § 11-03-07.05.F.
    The BCC specifies the limited role to be played by the City Council which, in many aspects, is similar to that of a
    court reviewing an agency action. BCC § 11-03-07.05.F.5 provides, in pertinent part:
    a.        The City Council may not consider any new facts or evidence on appeal. The City
    Council’s review of appeals is limited to the record prepared by the review body, including the
    transcript of the hearing, the written appeal, memoranda submitted and oral arguments presented
    in accordance with the requirements of this section.
    b.        No new evidence may be presented during oral argument.
    Subsection G governs the City Council’s decision. BCC § 11-03-07.05.G.2 provides: “If the City Council finds
    error on a factual finding, the City Council shall modify one or more of the findings as warranted by the evidence or
    substitute its own findings, citing the evidence that supports the substitute findings.”
    BCC § 11-03-07.05.G.5 further provides:
    If the original decision is not fully supported by the findings, the City Council may:
    (a) examine the evidence to determine whether additional findings could be supported,
    make those additional findings and then review the original decision;
    (b) make such decision as is supported by the findings; or
    (c) uphold the review body, putting additional conditions on the application as warranted
    by the facts.
    Apparently relying on the authority conferred by BCC § 11-03-07.05.G.5(c), the City Council required, as a
    condition of its approval, that Royal increase the number of bicycle parking spaces from 48 to 112 due to River
    Edge’s proximity to Boise State University.
    3
    contesting the zoning board’s decision demonstrates that (1) the board erred in a manner
    specified in Idaho Code section 67-5279(3), and (2) the board’s action prejudiced its substantial
    rights. Id. Idaho Code section 67-5279(3) provides that a board’s decision will only be
    overturned where its findings, inferences, conclusions, or decisions are:
    (a) in violation of constitutional or statutory provisions; (b) in excess of the
    statutory authority of the agency; (c) made upon unlawful procedure; (d) not
    supported by substantial evidence on the record as a whole; or (e) arbitrary,
    capricious, or an abuse of discretion.
    I.C. § 67-5279(3).
    This Court applies its well-established standard of review to evaluate whether there has
    been an abuse of discretion. The decision-maker must have “ ‘perceived the issue in question as
    discretionary, acted within the outer limits of its discretion and consistently with the legal
    standards applicable to the available choices, and reached its own decision through an exercise of
    reason.’ ” Krempasky v. Nez Perce Cnty. Planning & Zoning, 
    150 Idaho 231
    , 237, 
    245 P.3d 983
    ,
    989 (2010) (quoting Haw v. Idaho State Bd. of Med., 
    143 Idaho 51
    , 54, 
    137 P.3d 438
    , 441
    (2006)).
    The interpretation of a city’s zoning ordinance is a question of law over which this Court
    exercises free review. Dry Creek Partners, 
    148 Idaho at 18
    , 
    217 P.3d at
    1289 . However, there is
    a strong presumption that the actions of the City Council are valid when it has interpreted and
    applied its own zoning ordinances. Evans v. Teton Cnty., 
    139 Idaho 71
    , 74, 
    73 P.3d 84
    , 87
    (2003).
    III. ANALYSIS
    Lusk appeals the City Council’s decision affirming the Commission’s grant of a CUP
    allowing Royal, the intervenor in this appeal, to construct a building taller than the applicable
    zoning height limitation. Lusk does not appeal the variance granted to Royal also allowing the
    height exception. 2 Lusk argues that because the Commission did not follow the correct procedure
    2
    At the time Royal sought a height exception in the fall of 2011, the BCC provided that height exceptions in an R-
    OD district “require a commission-level conditional use permit in accordance with the provisions of Section 11-06-
    06.13.” BCC § 11-04-05.06(D). This Court released its opinion in Burns Holdings, LLC v. Teton Cnty. Bd. of
    Comm’rs, 
    152 Idaho 440
    , 
    272 P.3d 412
     (2012), on January 25, 2012, wherein we held that under Idaho Code
    sections 67-6516 and 67-6512(a), a “height restriction can be waived only by a variance, not by a conditional use
    permit.” 
    Id. at 444
    , 
    272 P.3d at 416
    . Accordingly, following a public hearing, the Commission granted Royal a
    variance along with the CUP required by the BCC. Following the Commission’s decision, but before the City
    Council heard Lusk’s appeal of the Commission’s decision, the Legislature amended Idaho Code section 67-6512 as
    follows:
    4
    for granting a CUP, the City Council erred in affirming the Commission’s decision. Lusk
    contends that the City Council’s decision violated its substantial rights, and asks this Court to
    remand this case back to the Commission for a new public hearing to fully consider all of the
    criteria required for conditional use approval under the BCC.
    A. The City Council erred by affirming the Commission’s decision.
    Lusk argues that the district court erred by affirming the City Council’s decision because
    the Commission’s approval was made upon unlawful procedure, not supported by substantial
    evidence in the record, and arbitrary, capricious and an abuse of discretion. Because we agree
    with the final claim, we do not address Lusk’s other claims of error.
    Lusk argues that the BCC “clearly and unambiguously” requires any request for a height
    increase to only be granted when all of the BBC’s criteria governing a CUP application are
    considered and met. Lusk argues that BCC sections 11-06-04.13 and 11-06-04.14 require the
    Commission to make a thorough review to determine whether parking will be adequate for the
    proposed project before granting a CUP. Royal responds that the plain language of these
    ordinances does not require consideration of parking requirements beyond those in the Parking
    Chapter of the BCC and that the City Council’s interpretation of them was reasonable.
    The BCC provides that height exceptions in an R-OD district “require a commission-
    level conditional use permit in accordance with the provisions of [BCC] section 11-06-
    06.13.” 3 BCC § 11-04-05.06(D). BCC section 11-06-06.13 requires the Commission to consider
    the criteria set forth in BCC section 11-06-04.13 before approving a height exception. BCC § 11-
    06-06.13. However, this section says nothing about considering BCC section 11-06-04.14 when
    In addition to other processes permitted by this chapter, exceptions or waivers of standards, other
    than use, inclusive of the subject matter addressed by section 67-6516, Idaho Code, in a zoning
    ordinance may be permitted through issuance of a special use permit or by administrative process
    specified by ordinance, subject to such conditions as may be imposed pursuant to a local
    ordinance drafted to implement subsection (d) of this section.
    I.C. § 67-6512(f); 2012 Idaho Sess. L. ch. 334, § 2, p. 929 (eff. April 5, 2012). The legislature also amended this
    section to include specific notice requirements when a CUP is requested for a height allowance. I.C. § 67-6512(b);
    2012 Idaho Sess. L. ch. 334, § 1, p. 927 (eff. April 5, 2012). Therefore, effective April 5, 2012, a variance is no
    longer the exclusive means to seek a height exception under LLUPA when a local ordinance specifies that a height
    exception may be allowed by way of a CUP or other administrative process.
    3
    Section 11-06-06.13 is entitled “Public Services, Height Exception” and applies to “[p]ublic service poles, towers
    or similar installations” over seventy feet tall, while the preceding section entitled “General Height Exceptions”
    applies to “height exceptions set forth in this ordinance.” The parties agree that Section 11-04-05.06(D) intended to
    cite to Section 11-06-06.12 rather than Section 11-06-06.13. Because both Sections require consideration of Section
    11-06-04.13, but not consideration of Section 11-06-04.14, it is irrelevant whether Section 11-04-05.06(D)
    erroneously refers to Section 11-06-06.13.
    5
    granting a height exception. Accordingly, we will only consider Lusk’s arguments regarding
    whether BCC section 11-06-04.13 required the Commission to consider additional parking
    requirements beyond those contained in the Parking Chapter of the BCC. BCC section 11-06-
    04.13 states in relevant part:
    The Commission, following the procedures outlined below, may approve a
    conditional use permit when the evidence presented at the hearing is such as to
    establish:
    …
    C. That the site is large enough to accommodate the proposed use and all
    yards, open spaces, pathways, walls and fences, parking, loading,
    landscaping and other features as are required by this title; and
    D. That the proposed use, if it complies with all conditions imposed, will
    not adversely affect other property of the vicinity; . . . .
    BCC § 11-06-04.13.
    Lusk argues that Section 11-06-04.13 requires the Commission to make a thorough
    review to determine whether planned parking is adequate for the proposed project before
    granting a conditional use permit. Lusk argues that the parking standards laid out in BCC section
    11-10-01.01 apply to “allowed uses” and that compliance with the parking standards does not
    automatically satisfy the parking requirements for a conditional use.
    The plain language of BCC section 11-06-04.13.C does not compel consideration of
    parking requirements beyond those contained within the Parking Chapter of the BCC. This
    section states that the Commission must find that “the site is large enough to accommodate the
    proposed use and all ... parking, loading, landscaping and other features as are required by this
    title.” BCC § 11-06-04.13.C. This section simply requires the Commission to determine whether
    the proposed site is of sufficient size to satisfy BCC minimum standards for parking, as well as
    the other items identified in this subsection. The plain meaning of the ordinance’s reference to
    “this title” is BCC Title Eleven, entitled “Boise City Zoning Ordinance.” 4 Chapter 11-10 of the
    BCC (the Parking Chapter), establishes minimum automobile parking standards for different
    categories of development and states that the “number of required parking spaces is based on the
    primary use of the site.” BCC § 11-10-01.01(C). BCC section 11-06-04.13.C is satisfied if a site
    4
    BCC section 11-01-01.01 provides: “This Ordinance shall be cited as the ‘Boise City Zoning Ordinance,” and shall
    also be known as Title Eleven (XI), Boise City Code, Boise, Idaho.” Each chapter of Title Eleven is then referred to
    as Chapter 11-01, Chapter 11-02, etc.
    6
    is large enough to accommodate the proposed use along with the parking required by Chapter
    11-10.
    This conclusion does not end our analysis. BCC section 11-06-04.13.D requires that the
    Commission find that “the evidence presented at the hearing is such as to establish… [t]hat the
    proposed use … will not adversely affect other property of the vicinity.” BCC § 11-06-04.13.D.
    Idaho Code section 67-6512(d)(7) provides that “conditions may be attached” to a CUP
    “[r]equiring more restrictive standards than those generally required in an ordinance.” The
    critical inquiry is not whether there was “robust discussion” of parking issues before the
    Commission, as the City Council found to have occurred. 5 Rather, the appropriate inquiry is
    whether the Commission recognized that it possessed the discretionary authority to impose
    parking requirements beyond the minimum established by the Parking Chapter. The record
    unambiguously demonstrates that the Commission failed to perceive that it had discretion to
    require additional parking as a condition of approval of the CUP.
    On March 5, 2012, Joshua Johnson, a staff member of Boise City Planning and
    Development Services, provided a staff report to the Commission. In that report, he stated:
    Finally, the landowner who testified in opposition to the height also
    brought up a perceived shortage of parking as a further point of opposition. The
    project meets City parking standards for multi-family units and this issue is not
    before the Commission. The only two items that should be considered are the
    Variance for a height exception and the Boise River System Permit.
    At the March 5, 2012, hearing before the Commission, Johnson advised the Commission
    that Royal’s project “meets our Parking Code. This issue is not before the Commission tonight.
    The application tonight only concerns the additional height requested by the applicant.” 6
    Following substantial testimony relating to parking concerns, Commissioner Stevens informed
    the Commission that it lacked authority to impose additional requirements for parking beyond
    those found in the Parking Chapter:
    5
    The City Council’s decision stated: “The Council also found that the public record from the Planning and Zoning
    Commission meeting revealed a robust discussion regarding parking. The Commission determined that the project
    was correctly designated as multi-family and that the level of provided automobile parking was sufficient.” There
    was indeed robust discussion of parking issues before the Commission; however, as will be shown, the Commission
    made no finding as to the sufficiency of automobile parking beyond its determination that the application satisfied
    the minimum parking requirements imposed by the Parking Chapter.
    6
    We note that an individual, whom Johnson identified as “my attorney,” remained silent when Johnson provided the
    Commission with this erroneous legal advice. We infer that Johnson had not personally retained counsel in view of
    his earlier statement that the application had been reviewed by the Boise City Attorney’s office.
    7
    I want to remind the Commissioners that the parking issue tonight is not
    actually before us. This Commission is not in position to make findings that
    require our applicant to be held to standards above that which is in our code.
    That would be arbitrary and would make the City be in some serious hot water, so
    I want to make sure that when we have our discussion tonight, that we keep the
    parking out of it. It is not before us. They have met code and to require that is
    above and beyond what we are allowed to do.
    Commissioner Story then echoed this view, stating: “Like you said parking is off the
    table. This complies. I can’t say our code is correct on parking and the way it should be handled,
    but I think the rubber meets the road where we’re talking about height and that’s really the only
    thing we have before us.” Thereafter, the Commission unanimously approved the CUP.
    Following Lusk’s appeal to the City Council, Hal Simmons, Planning Director with Boise
    City Planning and Development Services, sent a memorandum to the City Council, outlining
    staff recommendations regarding the appeal. In that memorandum, he reiterated the erroneous
    legal premise advanced in the staff report and accepted by the Commission: “While parking was
    discussed, the Commission correctly observed that the project meets established zoning
    ordinance standards and that it was not in their purview to require additional parking.”
    He later stated:
    The appellant states that parking problems associated with the high density
    project will overburden public facilities. This sentence highlights two
    fundamental flaws in the appeal: As proposed, the project meets density and
    parking requirements of Boise City Code. These standards are outlined in detail
    within the staff report and are discussed in the minutes from the March 5, 2012
    hearing. Commissioner Stevens stated at the beginning of the deliberation, “I
    want to remind the Commissioners that the parking issue tonight is not actually
    before us. This Commission is not in position to make findings that require our
    applicant to be held to standards above that which is in our code. That would be
    arbitrary and would make the City be in some serious hot water.”
    (emphasis in original). Although the record reflects the City Council’s unanimous denial of
    Lusk’s appeal, it is silent as to any discussion as to whether the Commission had the right to
    require additional parking as a condition for approving the CUP.
    As previously noted, Idaho Code section 67-6512(d)(7) provides that “conditions may be
    attached” to a CUP “[r]equiring more restrictive standards than those generally required in an
    ordinance.” BCC section 11-06-04.13.D requires that the Commission determine “[t]hat the
    proposed use … will not adversely affect other property of the vicinity.” BCC § 11-06-04.13.D.
    The testimony before the Commission related the potential for adverse effects to the vicinity due
    8
    to automobile parking needs that would result from the project. The Commission failed to
    recognize that Idaho law and the BCC provided it with discretion to require the project to
    provide on-site automobile parking beyond the minimum required by the Parking Chapter. As a
    result of this failure to apply governing legal standards, the Commission refused to consider the
    adverse effects on property in the vicinity. Thus, we find that the decision reflected an abuse of
    discretion. Dunagan v. Dunagan, 
    147 Idaho 599
    , 603, 
    213 P.3d 384
    , 388 (2009) (error found
    when trial court failed to recognize grounds for exercise of discretion).
    On judicial review, the district court found no abuse of discretion, which was likewise
    error. The district court noted that “[a]lthough some questioned the adequacy of the code itself, it
    is not within this Court’s purview in this case to tell the City what the codes should contain.”
    Although the district court was correct in its determination as to the scope of its authority, it
    failed to recognize that Idaho Code section 67-6512(d)(7) and BCC section 11-06-04.13.D
    authorized the Commission to impose parking requirements as a condition of approval beyond
    the minimum established by the Parking Chapter.
    B. Lusk has demonstrated prejudice to substantial rights.
    Our determination that the Commission abused its discretion requires us to consider
    whether Lusk identified prejudice to its substantial rights, as required by Idaho Code section 67-
    5279(4). Immediately following its conclusion that there was no abuse of discretion, the district
    court stated:
    Finally, the Court concludes that Lusk has failed to demonstrate that any
    other of its claimed substantial rights have been violated. There is an allegation
    that the public parking situation may be adversely impacted by the project, but
    there are no allegations that Lusk’s property, the use of the property, or its
    business could be. Rather, Lusk appears to assert that parking by tenants of the
    project could impact the entire area, including Ann Morrison Park, but makes no
    specific argument on its own substantial rights.
    Although the district court was correct in stating that Lusk identified adverse
    consequences to the entire area, it was incorrect in its statement that Lusk had failed to allege an
    impact on “its own substantial rights.” Lusk’s opening brief before the district court explained
    the factual basis for its contention that approval of the CUP would have a negative impact on
    Lusk:
    The Project would contain 622 bedrooms and house at least 622 student tenants,
    but only provide 280 parking spaces.
    9
    Parking around the Project is already strained. Ann Morrison Park hosts a
    variety of high traffic events throughout the year. During the summer river
    floating season, soccer season, and other sports seasons, parking in Ann Morrison
    Park and along Royal Boulevard becomes heavily congested. The inadequate
    parking will make the proposed Project an undesirable place to live, adversely
    affect the businesses in the area, and harm the public’s ability to enjoy Ann
    Morrison Park and the Boise River Greenbelt. Students that cannot find parking
    within the housing Project will park at adjacent properties, including Petitioner’s
    property. As a result, Petitioner and other property owners will be forced to
    expend considerable time and resources policing the parking on their properties.
    Congested parking will drive customers away from businesses in the area.
    (citations to the administrative record omitted). Lusk reiterated the impact of the decision:
    The most immediate, real, significant, and anticipated adverse
    consequence to Petitioner and other property owners in the neighborhood
    (including the public who travel to and use Ann Morrison Park) is the parking
    crisis created by the City’s approval of an additional two stories of habitable
    apartments over and above the allowed height of thirty-five feet in the R-OD zone
    – all without appropriate conditions being placed on the conditional use request to
    ensure that adverse impacts are mitigated. In fact, there was no discussion, no
    analysis, and no deliberation by the City to review the potential adverse parking
    impacts caused by this additional habitable apartments that are not allowed by
    right under the Zoning Ordinance.
    The lack of deliberation by the City, and the failure of the City to attach
    appropriate conditions to this conditional use approval (assuming, solely for
    arguments sake, that the conditional use could even be appropriately conditioned
    so as to mitigate adverse impacts), will devalue Petitioner’s property, require time
    and expense for Petitioner to police parking on its own property, inconvenience
    employees and visitors to Petitioner’s building, cause similar deleterious
    consequences to the neighborhood around the Project, potentially drive business
    from the neighborhood, and cause adverse consequences for patrons of Ann
    Morrison Park.
    In our view, Lusk has satisfied the requirement of our decision in Hawkins v. Bonneville
    Cnty. Bd. of Comm’rs, 
    151 Idaho 228
    , 
    254 P.3d 1224
     (2011). There, we stated:
    [W]hen a petitioner opposes a governing board’s decision to grant a permit
    authorizing development, . . . the petitioner must still show, not merely allege,
    real or potential prejudice to his or her substantial rights. I.C. § 67–5279(4). Since
    a party opposing a landowner’s request for a development permit has no
    substantial right in seeing someone else’s application adjudicated correctly, he or
    she must therefore show something more. The petitioner opposing a permit must
    be in jeopardy of suffering substantial harm if the project goes forward, such as a
    reduction in the opponent’s land value or interference with his or her use or
    ownership of the land. See Price v. Payette Cnty. Bd. of Cnty. Comm’rs, 
    131 Idaho 426
    , 431, 
    958 P.2d 583
    , 588 (1998) (vacating a board decision because it
    could impact property value or the petitioners’ use and enjoyment of their land).
    10
    Id. at 233, 254 P.3d at 1229. The record before the Commission sets forth substantial evidence
    supporting Lusk’s claim of potential prejudice to its substantial rights. The project calls for 622
    bedrooms to house students at Boise State University. The Parking Chapter requires only 280
    parking spaces for the project. Without even attempting to evaluate the impact of guests who
    arrive by automobile, if only half of the River Edge tenants have an automobile, there will be
    significant numbers of residents looking for parking in the vicinity. We conclude that there is
    sufficient evidence that Lusk is in jeopardy of economic harm from the project to satisfy the
    requirements set forth in Hawkins.
    C. No attorney fees are awarded on appeal.
    Lusk, the City, and Royal all claim entitlement to attorney fees under Idaho Code section
    12-117. That statute provides, in relevant part, that:
    Unless otherwise provided by statute, in any proceeding involving as
    adverse parties a state agency or a political subdivision and a person, the state
    agency, political subdivision or the court hearing the proceeding, including on
    appeal, shall award the prevailing party reasonable attorney’s fees, witness fees
    and other reasonable expenses, if it finds that the nonprevailing party acted
    without a reasonable basis in fact or law.
    I.C. § 12-117(1). “An award of attorney fees pursuant to the section may only be made when the
    court is left with the abiding belief that the appeal was brought, pursued or defended frivolously,
    unreasonably and without foundation.” City of Boise v. Ada Cnty., 
    147 Idaho 794
    , 812, 
    215 P.3d 514
    , 532 (2009) (internal quotation and citations omitted).
    The City and Royal are not entitled to attorney fees because they did not prevail in this
    appeal. Rowley v. Ada Cnty. Highway Dist., 
    156 Idaho 275
    , 282, 
    322 P.3d 1008
    , 1015 (2014). 7
    Although Lusk has prevailed in this appeal and is therefore entitled to recover its costs on appeal,
    we are unable to conclude that the defense of this appeal was frivolous. We therefore decline to
    award attorney fees to Lusk.
    7
    Even if it had prevailed, Royal would not have been entitled to recover attorney fees under Idaho Code section 12-
    117. The City is defined as a political subdivision for purposes of the statute. I.C. § 12-117(5)(b) (“ ‘Political
    subdivision’ means a city, a county, any taxing district or a health district. . . .”). However, the statute addresses
    situations “involving as adverse parties ... a political subdivision ... and a person.” Thus, in order for a party to
    receive an award under Idaho Code section 12-117, it must be adverse to the political subdivision. Neighbors for
    Responsible Growth v. Kootenai Cnty., 
    147 Idaho 173
    , 177, 
    207 P.3d 149
    , 153 (2009) (noting that the party seeking
    attorney fees were “intervenors on the side of the county—perhaps the most obvious indicator that the two are not
    adverse.”).
    11
    IV. CONCLUSION
    We reverse the decision of the district court affirming the City Council’s approval of the
    Commission’s decision to grant the CUP to Royal. We award costs on appeal, but not attorney
    fees, to Lusk.
    Justices EISMANN, J. JONES and Justice Pro Tem WALTERS CONCUR.
    Chief Justice BURDICK Dissents without opinion.
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