Lisa Gannoe v. Lexington Fayette Urban County Government Board of Adjustment ( 2023 )


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  •               RENDERED: MARCH 17, 2023; 10:00 A.M.
    NOT TO BE PUBLISHED
    Commonwealth of Kentucky
    Court of Appeals
    NO. 2021-CA-0940-MR
    LISA GANNOE                                          APPELLANT
    APPEAL FROM FAYETTE CIRCUIT COURT
    v.       HONORABLE KIMBERLY N. BUNNELL, JUDGE
    ACTION NO. 20-CI-03008
    LEXINGTON FAYETTE URBAN
    COUNTY GOVERNMENT BOARD
    OF ADJUSTMENT; CHAD
    NEEDHAM, IN HIS OFFICIAL
    CAPACITY AS MEMBER OF THE
    LEXINGTON FAYETTE URBAN
    COUNTY GOVERNMENT BOARD
    OF ADJUSTMENT; CHAD T.
    WALKER, IN HIS OFFICIAL
    CAPACITY AS MEMBER OF THE
    LEXINGTON FAYETTE URBAN
    COUNTY GOVERNMENT BOARD
    OF ADJUSTMENT; ECTON FARM,
    LLC; HARRY CLARKE, IN HIS
    OFFICIAL CAPACITY AS MEMBER
    OF THE LEXINGTON FAYETTE
    URBAN COUNTY GOVERNMENT
    BOARD OF ADJUSTMENT; JANICE
    MEYER, IN HER OFFICIAL
    CAPACITY AS MEMBER OF THE
    LEXINGTON FAYETTE URBAN
    COUNTY GOVERNMENT BOARD
    OF ADJUSTMENT; JOAN WITMAN,
    IN HER OFFICIAL CAPACITY AS
    MEMBER OF THE LEXINGTON
    FAYETTE URBAN COUNTY
    GOVERNMENT BOARD OF
    ADJUSTMENT; MICHAEL ECTON;
    PHILIP GROSS, IN HIS OFFICIAL
    CAPACITY AS MEMBER OF THE
    LEXINGTON FAYETTE URBAN
    COUNTY GOVERNMENT BOARD
    OF ADJUSTMENT; RAQUEL
    CARTER, IN HER OFFICIAL
    CAPACITY AS MEMBER OF THE
    LEXINGTON FAYETTE URBAN
    COUNTY GOVERNMENT BOARD
    OF ADJUSTMENT; AND THOMAS
    GLOVER, IN HIS OFFICIAL
    CAPACITY AS MEMBER OF THE
    LEXINGTON FAYETTE URBAN
    COUNTY GOVERNMENT BOARD
    OF ADJUSTMENT                                     APPELLEES
    AND
    NO. 2021-CA-0990-MR
    ECTON FARM, LLC, AND MICHAEL
    ECTON                                      CROSS-APPELLANTS
    CROSS-APPEAL FROM FAYETTE CIRCUIT COURT
    v.        HONORABLE KIMBERLY N. BUNNELL, JUDGE
    ACTION NO. 20-CI-03008
    LISA GANNOE; CHAD NEEDHAM,
    IN HIS OFFICIAL CAPACITY AS
    -2-
    MEMBER OF THE LEXINGTON
    FAYETTE URBAN COUNTY
    GOVERNMENT BOARD OF
    ADJUSTMENT; CHAD T. WALKER,
    IN HIS OFFICIAL CAPACITY AS
    MEMBER OF THE LEXINGTON
    FAYETTE URBAN COUNTY
    GOVERNMENT BOARD OF
    ADJUSTMENT; HARRY CLARKE, IN
    HIS OFFICIAL CAPACITY AS
    MEMBER OF THE LEXINGTON
    FAYETTE URBAN COUNTY
    GOVERNMENT BOARD OF
    ADJUSTMENT; JANICE MEYER, IN
    HER OFFICIAL CAPACITY AS
    MEMBER OF THE LEXINGTON
    FAYETTE URBAN COUNTY
    GOVERNMENT BOARD OF
    ADJUSTMENT; JOAN WITMAN, IN
    HER OFFICIAL CAPACITY AS
    MEMBER OF THE LEXINGTON
    FAYETTE URBAN COUNTY
    GOVERNMENT BOARD OF
    ADJUSTMENT; LEXINGTON
    FAYETTE URBAN COUNTY
    GOVERNMENT BOARD OF
    ADJUSTMENT; PHILIP GROSS, IN
    HIS OFFICIAL CAPACITY AS
    MEMBER OF THE LEXINGTON
    FAYETTE URBAN COUNTY
    GOVERNMENT BOARD OF
    ADJUSTMENT; RAQUEL CARTER,
    IN HER OFFICIAL CAPACITY AS
    MEMBER OF THE LEXINGTON
    FAYETTE URBAN COUNTY
    GOVERNMENT BOARD OF
    ADJUSTMENT; AND THOMAS
    GLOVER, IN HIS OFFICIAL
    CAPACITY AS MEMBER OF THE
    LEXINGTON FAYETTE URBAN
    -3-
    COUNTY GOVERNMENT BOARD
    OF ADJUSTMENT                                                 CROSS-APPELLEES
    OPINION
    AFFIRMING
    ** ** ** ** **
    BEFORE: THOMPSON, CHIEF JUDGE; DIXON AND LAMBERT, JUDGES.
    LAMBERT, JUDGE: Lisa Gannoe appeals from the Fayette Circuit Court’s order
    affirming the Lexington Fayette Urban County Government Board of Adjustment
    (the Board or BOA) decision to approve the conditional use permit application of
    Michael Ecton and Ecton Farm LLC (Ecton). Ecton cross-appeals, arguing that the
    Fayette Circuit Court erred in denying Ecton’s motion to dismiss Gannoe’s
    administrative appeal. We affirm on appeal and cross-appeal (Nos. 2021-CA-0940
    and 2021-CA-0990, respectively).
    The litigation centers around a piece of property located in a rural area
    of southern Fayette County. In 2006 the Board had granted a conditional use
    permit for a plant nursery to the former owner who then built a structure but failed
    to comply with a number of the conditions. The property was essentially
    abandoned, and that permit was revoked in 2017. Ecton, the current owner,
    purchased the property in July 2020 at a master commissioner’s sale. Ecton then
    sought Board approval for another conditional use permit; he submitted his plans,
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    including restoration of the existing greenhouse, for the structure to remain a plant
    nursery. Gannoe, whose residence is located across the road from Ecton’s
    property, and other adjoining landowners (residents of the Old Richmond Road
    Neighborhood Association) opposed the permit. The Board held a hearing, during
    which Ecton presented his testimony and proposed plans; after Gannoe and the
    others voiced their objections, the Board voted (6 to 1) to approve the permit for a
    plant nursery on the property. The permit was subject to nine separately listed
    conditions.1
    In October 2020, Gannoe appealed the Board’s decision to the Fayette
    Circuit Court pursuant to Kentucky Revised Statute (KRS) 100.347(1), which
    states:
    Any person or entity claiming to be injured or aggrieved
    by any final action of the board of adjustment shall
    appeal from the action to the Circuit Court of the county
    in which the property, which is the subject of the action
    of the board of adjustment, lies. Such appeal shall be
    taken within thirty (30) days after the final action of the
    board. All final actions which have not been appealed
    within thirty (30) days shall not be subject to judicial
    review. The board of adjustment shall be a party in any
    such appeal filed in the Circuit Court.
    1
    Included among the listed conditions were limitations on hours of operation, installation of a
    stormwater management system, appropriate landscaping, and lighting, as well as conditions
    regarding ingress and egress. No sales were to take place on the property. And Ecton agreed to
    bring the existing structure, which had suffered significant neglect since its original construction,
    up to code.
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    Ecton and the Board filed separate motions to dismiss the action, arguing that
    Gannoe and the other neighbors failed to establish sufficiently that they were
    injured or aggrieved. KRS 100.347(1). The motions were denied after a hearing
    on December 4, 2020.2
    The parties briefed the remaining issues, and the circuit court held a
    hearing with all parties present on July 13, 2021. Judgment was entered on August
    3, 2021. Gannoe filed her appeal, and Ecton filed his cross-appeal.
    We begin by stating our standard of review, namely:
    Judicial review of an administrative decision is
    concerned with whether the action of the agency was
    arbitrary. American Beauty Homes Corp. v. Louisville
    and Jefferson County Planning and Zoning Comm’n, 
    379 S.W.2d 450
    , 456 (Ky. 1964). Three grounds exist for
    finding that an agency’s decision was arbitrary: (1) the
    agency acted in excess of its statutory powers, (2) the
    agency did not afford procedural due process, and (3) the
    agency’s decision was not supported by substantial
    evidence. 
    Id.
    Baesler v. Lexington-Fayette Urban County Government, 
    237 S.W.3d 209
    , 212
    (Ky. App. 2007).
    Gannoe argues that, because the Board was interpreting the Zoning
    Ordinance’s provisions regarding commercial greenhouses versus plant nurseries,
    the circuit court should have reviewed the Board’s decision de novo, rather than
    2
    However, one named Board member (Janice Meyer) was dismissed as a party without
    objection because she was not a member at the time the Board voted to approve the permit.
    -6-
    simply for arbitrariness. Gannoe contends that Ecton’s proposed use fit the
    definition of a commercial greenhouse, rather than the plant nursery for which
    Ecton was approved. Furthermore, Gannoe insists, the greenhouse, because it is
    the only building on the property, cannot be considered an accessory structure but
    must be the primary one. This, she maintains, necessarily makes Ecton’s
    enterprise a commercial greenhouse rather than a plant nursery. Therefore,
    Gannoe continues, the Board improperly granted the permit to Ecton for the
    proposed plan’s failure to meet those definitions included in the zoning ordinances
    and the circuit court erred in affirming on direct appeal. Gannoe additionally urges
    that she and the other objectors were denied due process because her video camera
    was muted during the Board’s hearing.
    We disagree. We have examined the record in its entirety (including
    the videotaped sessions held in the circuit court) and can find no error in the circuit
    court’s judgment upholding the Board’s grant of a conditional use permit to Ecton.
    The circuit court’s focus, and rightly so, was on the propriety of the Board’s
    decision given applicable ordinances and the evidence presented before it.
    KRS 100.237 authorizes local zoning boards of
    adjustment to hear and decide applications for
    conditional use permits. A “conditional use permit” is an
    exception within Kentucky’s zoning law which allows an
    applicant to undertake a beneficial land use not otherwise
    permitted in a particular zoning district. KRS
    100.111(7). The local zoning ordinance supplies the
    standards the board of adjustment must follow in
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    determining whether to grant or deny a conditional use
    permit. Hardin County v. Jost, 
    897 S.W.2d 592
    , 595
    (Ky. App. 1995). Typically, these standards appear in
    the zoning ordinance as list of acceptable conditional
    uses that the board of adjustment may authorize in
    particular zones. See Harrison Silvergrove Property,
    LLC v. Campbell County and Municipal Board of
    Adjustment, 
    492 S.W.3d 908
    , 913 (Ky. App. 2016). The
    applicant is then able to choose from the list and apply
    for a conditional use permit, which the board of
    adjustment may approve, modify, or deny. KRS
    100.237. The board of adjustment must, however, adhere
    to fundamental due process requirements. See Hilltop
    Basic Resources, Inc. v. County of Boone, 
    180 S.W.3d 464
    , 469 (Ky. 2005) (right to a hearing, the taking and
    weighing of evidence, factual findings based on the
    record, an appropriate order, and a judicial review of the
    administrative action); see also Kaelin v. City of
    Louisville, 
    643 S.W.2d 590
    , 592 (Ky. 1982) (right to
    cross-examination).
    In its final form, a conditional use permit consists
    of two parts: (1) a factual determination justifying the
    issuance of a permit; and (2) a statement of conditions
    which the applicant must meet for the use to be
    permitted. KRS 100.111(7). This latter part must be
    recorded in the board of adjustment’s meeting minutes
    “and on the conditional use permit. . . .” KRS
    100.237(1). Once approved, the local administrative
    official issues the conditional use permit. See KRS
    100.111(7).
    Drakes Creek Holding Co., LLC v. Franklin-Simpson Cnty. Board of Zoning
    Adjustment, 
    518 S.W.3d 174
    , 179-80 (Ky. App. 2017).
    Here, the Board had a sufficient basis for issuing Ecton the permit.
    The local zoning ordinance lists a plant nursery as an available and acceptable
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    conditional use for this agricultural zone, and Ecton’s proposal met that definition.
    Ecton’s proposal was sufficiently detailed for the Board to make its decision (and
    for the circuit court to consider in its review on appeal). The Board’s hearing did
    not violate Gannoe’s due process rights. Gannoe and other affected parties were
    given ample opportunity to submit evidence and voice their concerns. In fact, as
    Ecton points out, the testimony of the opposition effectively equaled Ecton’s in
    terms of time spent at the hearing. Gannoe does not specify what, if anything, she
    or other objectors were prevented from presenting. The Board imposed nine
    conditions which appeared on the permit, and the Board recorded the conditions in
    its meeting minutes. 
    Id.
     Any future violation of those conditions would be
    improper for the Board’s or circuit court’s consideration. The circuit court
    considered all these factors on appeal before issuing its judgment. Accordingly,
    the permit was properly issued.
    Ecton’s cross-appeal (which argues that the circuit court erred by
    denying his motion to dismiss)3 must also fail. We agree with the circuit court’s
    ruling that Gannoe and the other objectors sufficiently met their burden of proving
    that they were “injured or aggrieved” parties. KRS 100.347(1). We find no error
    3
    The Board also argues that the circuit court erred in this respect; the Board’s brief essentially
    mirrors Ecton’s in its position.
    -9-
    in that determination as well as the circuit court’s order denying the motion to
    dismiss.
    The judgment and order of the Fayette Circuit Court is affirmed.
    THOMPSON, CHIEF JUDGE, CONCURS.
    DIXON, JUDGE, CONCURS IN RESULT ONLY.
    BRIEFS FOR APPELLANT/CROSS-                BRIEFS FOR APPELLEES/CROSS-
    APPELLEE LISA GANNOE:                      APPELLANTS ECTON FARMS LLC
    AND MICHAEL ECTON:
    Jessica K. Winters
    Lexington, Kentucky                        R. Douglas Martin
    Lexington, Kentucky
    BRIEF FOR APPELLEE/CROSS-
    APPELLEE LEXINGTON FAYETTE
    URBAN COUNTY GOVERNMENT:
    Tracy W. Jones
    Lexington, Kentucky
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