DocketNumber: 2015AP001258
Judges: Gableman, Abrahamson
Filed Date: 6/5/2018
Status: Precedential
Modified Date: 10/19/2024
*120*708¶ 1 Wisconsin has long provided a vested right to build a structure upon the filing of a building permit application that strictly conforms to all applicable zoning regulations (the "Building Permit Rule")-a doctrine we reaffirmed last term in McKee Family I, LLC v. City of Fitchburg,
¶ 2 After Golden Sands filed its building permit application, Saratoga enacted its zoning ordinance that sought to prohibit agricultural uses such as those proposed by Golden Sands. Golden Sands argues that the Building Permit Rule extends to all land specifically identified in a building permit application. Under its proposed modification of the Building Permit Rule, Golden Sands would have a vested right to use all of the Property for agricultural purposes. Saratoga disagrees, arguing that Golden Sands' building permit is limited to vesting its right to build the seven structures identified in the building permit.
*710¶ 3 The issue in this case is one of first impression in Wisconsin: does the Building Permit Rule extend to land identified in the building permit application as part of the project upon which no actual construction was planned? The Wood County Circuit Court
¶ 4 We hold that the Building Permit Rule extends to all land specifically identified
*711I. FACTS AND PROCEDURAL POSTURE
A. Golden Sands' Building Permit Application
¶ 5 Golden Sands filed its original building permit application with Saratoga on June 6, 2012. The application sought a permit to build seven structures on 92 acres. Attached to the application was a map that shaded the parcels to be used for the dairy structures in yellow and the parcels to be used as farmland in blue.
*122¶ 6 Golden Sands included with the Application copies of applications for various state permits required to operate the farm. Golden Sands was not required to provide copies of the state permit applications to receive a building permit from Saratoga, but rather did so as a "courtesy." These state permit applications provided even greater detail as to Golden Sands' plans for its farming operation.
B. Applicable Zoning Regulations
¶ 7 At the time Golden Sands filed its initial building permit application (June 6, 2012), Saratoga did not have any zoning ordinances. The only land use *712restriction in place was Wood County's zoning ordinance, which zoned the land as "unrestricted," meaning the land at issue could be used for any lawful purpose.
¶ 8 Saratoga started the process to regulate land use within its borders in 2007, when it began to assemble a comprehensive plan pursuant to
¶ 9 On July 19, 2012, during the time Saratoga was in the process of obtaining village powers, it passed a moratorium on issuing any building permit that was inconsistent with then-existing land use. This was two days after Golden Sands filed its amended building permit application.
¶ 10 Upon receiving village powers, Saratoga passed a permanent zoning ordinance on October 17, 2012, which the Wood County Board ratified on November *71313, 2012, and the Saratoga Town Board ratified the next day. Under the permanent zoning ordinance, only two percent of the town-and none of Golden Sands' land-is zoned for agricultural use. Therefore, Golden Sands' planned operation does not conform to the zoning scheme enacted by Saratoga.
C. The Mandamus Action
¶ 11 Saratoga provided two reasons for its refusal to issue the building permit requested by Golden Sands: (1) the moratorium on building permits enacted on July 19, 2012, prohibited issuance of the permit; and (2) Saratoga deemed the Application incomplete. Golden Sands then filed a mandamus action to compel Saratoga to issue the building permit. The circuit court concluded that the Application was complete and complied with all zoning regulations in place at the time it was filed, and thus granted the writ of mandamus. In response, Saratoga issued the building permit to Golden Sands. The court of appeals affirmed. Golden Sands Dairy, LLC v. Fuehrer, No. 2013AP1468, unpublished slip op.,
D. The Present Action
¶ 12 Two weeks after filing the mandamus action, Golden Sands filed the present declaratory judgment action, asking the circuit court to declare that Golden Sands may use all the land specifically identified in the Application for agricultural purposes. The circuit court found that Golden Sands sufficiently identified the parcels that it intended to use for farming *714in the Application. Thus, the circuit court concluded that Golden Sands had a vested right to use the land specifically identified in the Application for agricultural purposes and granted Golden Sands' motion for summary judgment. The circuit court added that Golden Sands' vested right to use the land for agricultural purposes expires at the same time the building permit expires.
¶ 13 The court of appeals reversed. Golden Sands II, unpublished slip op., ¶ 2. The court of appeals distinguished between the right to build a structure and the right to use land. Id., ¶ 14. It determined that the right to build a structure vests with the filing of a building permit application that strictly conforms to all applicable zoning regulations, but the right to use land vests with open and obvious use under the nonconforming use doctrine. Id. Based on this distinction, the court of appeals concluded that Golden Sands' building permit vested its right to build the structures, but not to use the other land identified in the building permit application for agricultural purposes. The court of appeals concluded that because Golden Sands had not established a nonconforming use before Saratoga's zoning ordinance took effect, it could not use any of its land for agricultural purposes. Id., ¶ 27.
¶ 14 The court of appeals articulated a series of concerns with Golden Sands' proposed modification of the Building Permit Rule. It did so in a series of questions:
• "[H]ow many of the identified 6[,]388 acres are needed?"
• "Why should all 6[,]388 acres obtain nonconforming use status simply because that amount of land was noted in the application?"
*715• "What if a factual inquiry would show that Golden Sands needs substantially fewer than 6[,]388 acres to fully utilize its proposed farm buildings?"
Id., ¶ 24.
¶ 15 Golden Sands petitioned this court for review, which we granted on September 12, 2017.
II. STANDARD OF REVIEW
¶ 16 We review decisions granting summary judgment de novo. McKee,
III. ANALYSIS
¶ 17 Our analysis begins
A. The Building Permit Rule
¶ 18 Wisconsin is among the minority of United States jurisdictions that adheres to the Building Permit Rule, a bright-line rule vesting the right to use property consistent with current zoning at the time a building permit application that strictly conforms to all applicable zoning regulations is filed. Patricia E. Salkin, American Law of Zoning § 32:3, at 32-13-32-14 (2017).
¶ 19 In contrast, the rule adopted in the majority of jurisdictions requires both a building permit and "substantial construction and/or substantial expenditures before rights vest." Id. at 32-6. This means that, under this rule, a landowner's building permit can be revoked if the property is rezoned-even if construction has already begun. Folsom Invest., Inc. v. City of Scottsdale,
*717Cribbin v. City of Chicago,
¶ 20 In a unanimous opinion affirming the court of appeals and agreeing with the circuit court, we reaffirmed our adherence to the minority, bright-line Building Permit Rule last term in McKee,
¶ 21 The Building Permit Rule is an exception to the general policy that "[p]roperty owners obtain no vested rights in a particular type of zoning solely through reliance on the zoning." Zealy v. City of Waukesha,
*125*718¶ 22 The Building Permit Rule grants the right to add or change a structure "when a property owner has applied for a building permit conforming to the original zoning classification." McKee,
¶ 23 The parties agree that the Building Permit Rule as stated in McKee is and should remain the law of Wisconsin. Accordingly, the parties also agree that Golden Sands possesses a vested right to build the seven structures as described in its building permit application. The parties dispute the full scope of the rule; that is, whether the Building Permit Rule also grants Golden Sands the right to use the farmland specifically identified in the building permit application for agricultural purposes. We turn next to consideration of this question.
B. The Building Permit Rule Applies to All Land Specifically Identified in the Building Permit Application.
¶ 24 In ascertaining the full scope of the Building Permit Rule, we are guided by the policies underlying the rule. The primary advantage of the bright-line Building Permit Rule is "predictability for land owners, purchasers, developers, municipalities[,] and *719the courts." McKee,
¶ 25 The court of appeals and Saratoga would disassociate the right to build structures under the Building Permit Rule from the right to use the land associated with the permit. We respond to this by noting that over 30 years ago, the court of appeals *720aptly described the problem with parsing out parts of a business for land use purposes:
Such 'piecemealing' of [the defendant's] activities is unrealistic in that it overlooks *126the true nature of the services he was providing. In fact, [the defendant's] business consisted of various small marina and resort related activities which, in combination, assisted the business's survival and gave the enterprise its true resort and marina flavor. This synergistic action of [the defendant's] business activities vested his interest in their continuance.
Waukesha Cty. v. Seitz,
¶ 26 We conclude that the primary policy
¶ 27 The "piecemealing" advanced by the court of appeals and Saratoga would require extensive litigation over how much land specifically identified in the building permit application is necessary, which neutralizes one of the primary reasons we adhere to the Building Permit Rule: avoiding lengthy, fact-intensive litigation. See id., ¶ 44. Further, for any business that requires land in addition to structures for its operations, a building permit is nearly worthless if the rights vested by virtue of obtaining a conforming building permit do not extend to the land necessary to put the structures to their proper use.
¶ 28 The court of appeals asked a number of questions raising some concerns about the amount of land Golden Sands was going to use. These concerns, for purposes of the Building Permit Rule, are irrelevant to our analysis and provide a showcase as to one way the purpose of avoiding fact-intensive litigation is served by this bright-line rule. As personally "curious" or "concerned" members of the court of appeals may be as to how much land will actually be utilized by Golden Sands, and for what purpose the utilization is to be had, there simply is no legal relevance to their inquiry. Therefore, the purpose of the bright-line rule is served when judges focus their inquiry on that which is legally relevant, and avoid that which is not. In the case at bar, the court of appeals' concerns are particularly unfounded because the circuit court held that Golden Sands' vested rights in the land expire when the building permit expires. Thus, if Golden Sands *722overestimated the amount of land it needs to operate the farm, the land not in use at the time the building permit expires would not benefit from either the Building Permit Rule or the nonconforming use doctrine, and any *127future use would simply have to conform with Saratoga's zoning ordinances.
¶ 29 The parties do not direct us to, nor did our research reveal, any cases from other jurisdictions that have considered this issue.
C. Application of the Building Permit Rule to Golden Sands.
¶ 30 We first address a threshold issue, Golden Sands' ownership of the land. "The vendee under a contract to purchase land is the equitable owner and is the 'owner' for many purposes. We think that the vendee is an owner for the purpose of applying for a building permit...." Scheer v. Weis,
¶ 31 Golden Sands specifically identified the Property in the Application. The map attached to the original application provides an objective means to determine the specific land Golden Sands intends to use in order to build structures as well as cultivate, seed, fertilize, harvest, and otherwise maintain the land it will use for agricultural purposes. The map highlights the Property in blue (agricultural land) and yellow (land on which the structures are to be built). The map is based on a U.S. Geological Survey topographical map that contains details, such as county borders, roads, and latitude and longitude, that allow a person to objectively determine the borders of the shaded land. Because the map provides an objective means to determine the contours of the Property and was attached to a building permit application that strictly conformed to all applicable zoning regulations, Golden Sands possesses a vested right to use the Property for agricultural purposes.
¶ 32 Golden Sands' situation demonstrates how predictability is best served by vesting rights to all land specifically identified in a building permit application. Agriculture is the starkest example of a business that requires substantial land in addition to structures in order to operate. If Golden Sands' building *725permit served only to guarantee Golden Sands' right to build the structures for the dairy farm, the permit would be worthless because Golden Sands needs the agricultural land in order to make the farm work.
¶ 33 To separate structures from their associated land would be to allow zoning authorities to circumvent the Building Permit Rule by enacting restrictive zoning regulations on land that is necessary to give the buildings value. Saratoga argues that Golden Sands is required to establish a nonconforming use in order to continue using its land for agricultural purposes. Under Saratoga's reasoning, Golden Sands could not be certain that its dairy would be allowed to operate until sometime after operations had actually commenced and sometime after Golden Sands had actually invested significant sums of additional money. This is so because the nonconforming use doctrine applies only after the land use begins. This uncertain result is exactly what the bright-line Building Permit Rule attempts to avoid. McKee,
IV. CONCLUSION
¶ 34 We hold that the Building Permit Rule extends to all land specifically identified in a building permit application. Consequently, Golden Sands has a vested right to use the Property for agricultural purposes.
By the Court. -The decision of the court of appeals is reversed.
The record reveals that some of the 6,388 acres may be located outside Saratoga's zoning jurisdiction. The dispute before us concerns only that portion of Golden Sands' land within Saratoga's zoning jurisdiction. Accordingly, our decision is limited to those portions of the 6,388 acres that are subject to Saratoga's zoning jurisdiction. For simplicity's sake, we use "the Property" to describe those portions of the 6,388 acres that are: (1) specifically identified in the map attached to the original building permit application; and (2) within Saratoga's zoning jurisdiction.
Golden Sands' planned farm has two components. First, a dairy operation will raise cattle for milk production. Second, a cropland operation will grow feed for the dairy cattle and food for human consumption. The cropland will be fertilized with manure from the dairy operation. Hence, the "full circle" occurs when crops are fed to the cattle and manure from the cattle is used to fertilize crops that will again become (in part) cattle feed.
The Honorable Thomas B. Eagon presiding.
We refer to the court of appeals' decision in this case as Golden Sands II because the court of appeals decided, in a prior case, whether Golden Sands' building permit application was sufficient such that Golden Sands was entitled to a writ of mandamus ordering Saratoga to issue the building permit. See infra ¶ 10.
By "specifically identified," we mean that the building permit application, including attachments, must include a means to objectively determine the exact parcels of land at issue. A legal description is preferable, but a map that objectively identifies the parcels at issue will also suffice.
To be (perhaps painfully) clear, our holding that Golden Sands possesses a vested right to use the Property for agricultural purposes is grounded upon its building permit dispute with Saratoga and therefore does not (and cannot) grant Golden Sands a vested right to use the Property for agricultural purposes if Golden Sands is unable to obtain an ownership interest in any piece of the Property.
Golden Sands filed an amended application on July 17, 2012. This amended application identified the "Area Involved" as "100 acres of site and 6,388 acres total." Attached to the amended application was a legal description of the 100 acres (which the circuit court subsequently found in actuality added up to 92 acres). The parties treat the amended application as supplementing the original application rather than superseding it, and so do we. We therefore refer to all application materials-the original application, the amended application, and all attachments thereto-collectively as "the Application."
All subsequent references to the Wisconsin Statutes are to the 2011-12 version unless otherwise indicated. We cite to the 2011-12 version of the statutes because the events underlying this case occurred in 2012. The 2007-08 and 2011-12 versions of
Electors are "[e]very U.S. citizen age 18 or older who has resided in an election district or ward for 28 consecutive days before any election where the citizen offers to vote."
We pause to clearly articulate the scope of our review. Since the events underlying this dispute occurred, the legislature enacted a statute that would govern the facts underlying this case,
For a larger discussion of the nonconforming use doctrine, see Patricia E. Salkin, American Law of Zoning ch. 12 (2017).
Though McKee sometimes speaks in terms of "obtaining" a building permit, submitting a building permit application that strictly conforms to all applicable zoning regulations is all that is necessary to trigger the Building Permit Rule. McKee,
Considerations of policy are entirely appropriate when developing common-law doctrines. Progressive N. Ins. Co. v. Romanshek,
Saratoga cites two decisions from other jurisdictions for the proposition that the rights vested by building permits do not extend to associated lands, but both are distinguishable.
In Deer Creek Developers, LLC v. Spokane Cty., the plaintiff obtained a site plan for a two-phase residential development, but obtained building permits for only the first phase.
In Huff v. City of Des Moines, the plaintiff obtained a building permit to construct a trailer park, but never obtained the necessary permit to operate a trailer park.244 Iowa 89 ,56 N.W.2d 54 , 55-56 (1952). The court held that the plaintiff did not possess a vested right to operate the trailer park.Id. at 95 ,56 N.W.2d 54 . Huff is inapposite because the issue here is not whether Golden Sands possesses a vested right to permits necessary to operate its farm. Rather, the issue before us is whether Golden Sands possesses a vested right to use the Property for agricultural purposes.