Tsb Holdings, L.L.C. and 911 N. Governor, L.L.C. v. City of Iowa City, Iowa, -------------------------------------------------------------- Tsb Holdings, L.L.C. and 911 N. Governor, L.L.C., plaintiffs-appellants/cross-appellees v. Board of Adjustment for the City of Iowa City, defendant-appellee/cross-appellant.
15-1373 / 16-0988
Iowa Ct. App.Oct 11, 2017Background
- The disputed properties in Iowa City were part of Kempf’s tract; the Iowa Supreme Court (Kempf) held in 1987 that downzoning was unreasonable for a 2.12-acre portion and remanded with an order permitting development conforming to pre-1978 R3B rules for the owner and successors, while any further redevelopment would be subject to amended ordinances.
- Kempf subsequently built one additional apartment building (1988–89) and granted an electrical easement; most of the 2.12 acres remained undeveloped. The properties changed hands several times and were purchased by TSB in 2009.
- In 2013 Iowa City rezoned the parcels (Ordinance 13-4518) to RS-12/RM-20 consistent with its comprehensive plan, effectively preventing additional high-density apartments; the City also imposed a moratorium while revising zoning.
- TSB filed (1) a declaratory-judgment action and (2) a certiorari petition challenging the rezoning and alleging an unconstitutional taking; the City and BOA (Board of Adjustment) denied site plans and appeals based on the new zoning.
- The district court granted summary judgment for the City, found TSB’s takings claim inadequately pleaded, denied TSB relief from the BOA’s site-plan denial, and refused BOA’s late motion to add affirmative defenses; the Court of Appeals consolidated appeals.
Issues
| Issue | Plaintiff's Argument (TSB) | Defendant's Argument (City/BOA) | Held |
|---|---|---|---|
| Whether the City’s 2013 rezoning violated the Kempf remand injunction and was illegal | Kempf/remand enjoined City from interfering with development; rezoning nullifies Kempf rights and caused BOA denial | Kempf did not bar rezoning; remand allowed Kempf to proceed but did not void ordinances; City has zoning power and ordinance was fairly debatable | Court affirmed summary judgment for City: rezoning did not violate Kempf/remand and was within City authority |
| Whether the BOA acted illegally in denying TSB’s site plans by failing to apply Kempf/remand | BOA should have applied Kempf/remand; denial was proximately caused by rezoning that Kempf barred | BOA must apply current zoning; it lacks authority to override or ignore zoning ordinances or to declare them void | Court affirmed BOA decision: BOA did not act illegally in denying site plans (Kempf injunction no longer operative) |
| Whether the Kempf remand injunction remained enforceable decades later | TSB: remand injunction applies to successors and should protect development rights | City/BOA: Dakota Railroad establishes injunctions judgment lapse; remand injunction expired after 20 years or in any event did not prevent rezoning | Court: Reliance on Dakota Railroad — the injunction expired (20-year rule), so Kempf/remand provided no enforceable barrier to 2013 rezoning |
| Whether TSB adequately pleaded an unconstitutional taking against the City | TSB: the petition alleged rezoning would result in an unconstitutional taking and sought equitable relief; this sufficed under notice pleading | City: takings claim was not separately pleaded or for damages; insufficient notice | Court reversed district court on pleading: under Iowa’s notice-pleading rules, TSB’s allegations gave fair notice; takings claim remanded for proceedings |
Key Cases Cited
- Kempf v. City of Iowa City, 402 N.W.2d 393 (Iowa 1987) (held downzoning unreasonable as applied to a 2.12-acre portion and remanded with limited injunction permitting development conforming to pre-1978 R3B for owner and successors)
- Dakota, Minnesota & Eastern R.R. v. Iowa Dist. Court, 898 N.W.2d 127 (Iowa 2017) (held postjudgment injunctions/judgments are unenforceable if not renewed within the twenty-year period applicable to actions on judgments)
- Johnson v. Board of Adjustment, 239 N.W.2d 873 (Iowa 1976) (board of adjustment cannot disregard or exceed powers conferred by zoning ordinances)
- Shriver v. City of Okoboji, 567 N.W.2d 397 (Iowa 1997) (zoning ordinances enjoy a strong presumption of validity; challenger must show ordinance is unreasonable, arbitrary, or capricious)