Lead Opinion
In these consolidated appeals, we consider the status of zoning permit applications filed during what we will refer to as the “pendency period” — the period from the date that public notice is given of proposed amended zoning bylaws and the date that the bylaws come into effect. At issue is the meaning of 24 Y.S.A. § 4443(d),
I.
The relevant procedural and historical facts are, for the most part, undisputed in both appeals. On December 3, 1996, the Town of
With respect to the Handy case, in the summer of 1996 Paul Handy filed applications seeking, among other things, a permit to add gasoline pumps to a convenience store on his property in the Town’s residential-commercial zone. The Town denied the applications in August 1996 for reasons unrelated to the gasoline pumps, which were permitted as a conditional use under the zoning bylaws in effect at the time. Handy did not appeal the Town’s decision, but instead modified his site plan and revised the applications to respond to the concerns that had led to their denial.
On January 13, 1997, after the Town published notice of the proposed amended bylaws, but eight days before they were adopted, Handy submitted his revised applications seeking conditional use and variance approval for his proposed project. On February 10, the day before the new bylaws became effective, the selectboard held a public hearing under § 4443(d) to consider whether to give its written consent for the zoning administrator to act on Handy’s revised applications under the old bylaws. Following the hearing, the selectboard issued a written decision denying its consent for Handy to proceed under the old bylaws.
On appeal, the environmental court concluded that (1) this Court’s holding in Smith v. Winhall Planning Commission,
With respect to the Jolley case, in April 1996 Jolley Associates (Jolley) contracted to purchase property in the Town’s residential-commercial zone, intending to construct a combination gas station, convenience store, and fast-food restaurant. Obtaining the necessary zoning permits was one of the contract contingencies. Under the zoning bylaws in effect at the time, all three of Jolley’s intended uses were allowed as conditional uses in the residential-commercial zone. In September 1996, Jolley met with town officials to discuss its proposed project.
On February 6, 1997, sixteen days after the Town adopted the amended bylaws, but five days before those amendments became effective, Jolley submitted conditional-use applications for his project under the old bylaws. Following a public hearing pursuant to § 4443(d), the selectboard denied Jolley’s request for consent to proceed with its applications under the old bylaws. On appeal, the environmental court concluded that the right of applicants to have their permit applications considered under the zoning bylaws in effect at the time the applications are filed does not extend to situations in which the applications are filed between the adoption and the effective date of new bylaws. According to the court, applications filed after the adoption of amended bylaws must be considered under the new bylaws. Because Jolley had filed its applications after the Town’s adoption of the amended bylaws, the court ruled that they must be considered under the new bylaws. The court remanded the matter to the ZBA to consider the applications for conditional use or variance
In the Handy case, appellant Town of Shelburne argues that the environmental court erred in ruling that applicants seeking zoning permits after public notice but before adoption of proposed amended bylaws may elect to seek the consent of a town’s legislative body under § 4443(d). In the Jolley case, appellant Jolley argues that the plain language of § 4443(d) does not support the environmental court’s distinct treatment of applications filed between public notice and adoption of amended bylaws, and those filed between the adoption and effective date of amended bylaws. According to Jolley, either its applications should be considered under the old bylaws based on the environmental court’s reasoning in the Handy case, or the environmental court should consider, upon de novo review, whether the circumstances and equities surrounding its applications require review of the applications under the old bylaws. As appellee and cross-appellant in the Jolley case, the Town contends that any review of the selectboard’s decision under § 4443(d) should be on the record, giving deference to the selectboard’s broad discretion, and further that the record before this Court supports the selectboard’s decision. Both Jolley and the Town agree that the environmental court erred in concluding that applicants must submit their conditional-use applications to the ZBA before seeking the selectboard’s consent to proceed under the old bylaws pursuant to § 4443(d).
II.
We first consider the environmental court’s construction of § 4443(d). The statute provides as follows:
If a public notice4 is issued under this chapter with respect to the adoption or amendment of a bylaw, or an*341 amendment to an ordinance adopted under prior enabling laws, the administrative officer shall not issue any permit under section (a)(1) of this section, if the permit is with regard to the bylaw, or amendment to a bylaw or ordinance, for the period commencing upon the date of that public notice and ending upon the effective date of the adoption or rejection of the bylaw or amendment, except with the written consent of the legislative body of the municipality given after public hearing upon public notice.
24 V.S.A. § 4443(d). We find nothing in the plain language of § 4443(d) to support either the environmental court’s distinct treatment of permit applications filed before or after the adoption of amended bylaws, or its conclusion that persons filing applications before the adoption of amended bylaws may elect to request a town’s legislative body to review applications under the amended bylaws.
In construing a statute to determine the Legislature’s intent, our first step is to examine the language of the statute itself. Town of Hinesburg v. Dunkling,
Here, the plain meaning of § 4443(d) is that a town administrator may not issue a zoning permit during the period between public notice and the effective date of the adoption or rejection of proposed amended bylaws if the permit is “with regard to” the proposed bylaws, except with the written consent of the town’s legislative body following public notice and hearing. We find unavailing Handy’s argument that the term “with regard to” refers to permit applications that could be granted only under the amended bylaws. Rather than read an unnecessary limitation into the statutory language, see In re Graziani,
Moreover, the prohibitory, rather than permissive, language of § 4443(d) belies the environmental court’s conclusion that the statute allows persons filing applications before adoption of amended bylaws to elect whether to have a town’s legislative body review the applications under the amended bylaws. If the Legislature had intended to allow applicants to elect review under pending amended bylaws, such an election would undoubtedly have been expressed in permissive language. Plainly, the prohibitory language in the statute is aimed at limiting the issuance of permits under bylaws in the process of being amended, rather than allowing a new category of permits in advance of the effective date of proposed bylaws that might authorize them.
Apparently, the environmental court felt compelled, under the reasoning in Smith v. Winhall Planning Commission, to bifurcate the pendency period delineated in § 4443(d) and create an election for those applicants filing before adoption (or rejection) of proposed amended bylaws. Although Smith may prove central to the resolution of these disputes, as addressed at the end of this opinion, it does not control the construction of the statute. Smith establishes our vested rights rule in the absence of a controlling statute. In re McCormick Management Co.,
We recognize that the environmental court concluded that § 4443(d) overlapped with the vested rights holding of Smith, and it could implement both through its construction of § 4443(d). We conclude, however, that its construction of § 4443(d) is at variance with both the letter of the statute and the policy behind it. The obvious intent behind § 4443(d) is to create a “moratorium” on the issuance of permits for proposed projects whose status may be affected by pending amendments to zoning bylaws. Such a moratorium period assures that persons cannot compel towns to grant
III.
Our rejection of the environmental court’s construction of § 4443(d) does not necessarily mean that we must reverse the court’s decisions. We will not reverse a lower court’s decision “if the record before us discloses any legal ground which would justify the result,” Sexton v. Greer,
Nor is there anything in our precedents to suggest that an alternative ground for affirmance cannot be our determination that a statute is unconstitutional in the context of the case before us. The dissent suggests that V.R.A.E 44 bars such consideration because no party has notified the clerk of this Court to give the Attorney General an opportunity to intervene and defend the constitutionality of the statute. Like the federal model on which V.R.A.E 44 is based, see 28 U.S.C. § 2403; Fed. R. App. E 44, our self-imposed rule is not jurisdictional so as to prevent the adjudication of a constitutional issue in the absence of official notice. Tonya K. v. Board of Educ. of Chicago,
In any event, we have carefully considered whether notification would perform a useful purpose or change the outcome, and have decided that it would do neither. Whenever we adopt a rationale for our decision different from that employed by the trial court and directly addressed by the parties, we take on the responsibility to fully research and explore our alternative. We have done so in this case.
As explained more fully in the discussion to follow, our alternative decision will reach exactly the outcome the environmental court reached in Handy — that is, that § 4443(d) is not implicated in the decision on Handy’s permit application. Our duty to affirm lower court decisions on any legal theory would not require us to reach the constitutional point in the Jolley case, but we do so as a matter of fairness, given that we are reaching the issue in its companion case.
We now turn to the merits of the constitutionality of § 4443(d). In Town of Westford v. Kilburn,
This Court upheld the challenge to the ordinance, concluding that the special exception provision failed “to prescribe appropriate conditions and safeguards” and delegated authority to adjacent property owners “with ... no standards to govern its use.” Id. at 125-26,
*345 When the Board of Adjustment exercises this discretion, guiding standards assure all parties concerned it has been exercised in a proper manner. When no such guiding standards are spelled out by the legislative body, the door is opened to the exercise of this discretion in an arbitrary or discriminatory fashion. As a consequence of a failure of a legislative body to spell out guiding standards, the applicant for a permit is left uncertain as to what factors are to be considered by the Board of Adjustment.
... On one hand the standards governing the delegation of such authority should be general enough to avoid inflexible results, yet on the other hand they should not leave the door open to unbridled discrimination.
Id. at 124-25,
Although Kilburn is grounded in the then-existing enabling statute, rather than the constitution, it relied largely on two constitutional decisions. Waterville Hotel Corp. v. Board of Zoning Appeals,
There are actually three overlapping theories under which a delegation of standardless zoning approval power is found unconstitutional: (1) a delegation of legislative power without adequate standards violates the separation of powers required by the state constitution; (2) the power to grant or refuse zoning permits without standards denies applicants equal protection of the laws; and (3) administration of zoning without standards denies landowners due
The first rationale dominates and is accepted in virtually every state jurisdiction. See 3 K. Young, Anderson’s American Law of Zoning § 21.09 (4th ed. 1996); see also Vincent v. Vermont State Retirement Bd.,
When legislative power is delegated to administrative officials it is constitutionally required that adequate guides and standards be established by the delegating legislative body so that the administrative officials, appointed by the executive and not elected by the people, will not legislate, but will find and apply facts in a particular case in accordance with the policy established by the legislative body.
Gino’s of Maryland, Inc. v. City of Baltimore,
The latter two rationales are most important in administrative adjudication. See S. Koslow, Standardless Administrative Adjudication, 22 Admin. L. Rev. 407, 422-28 (1970). The main concern of the second rationale is consistent decisions. Waterville Hotel, the Maine
Without definite standards an ordinance becomes an open door to favoritism and discrimination, a ready tool for the suppression of competition through the grant of authority to one and the withholding from another. ... A zoning ordinance cannot permit administrative officers or boards to pick and chose the recipients of their favors.
Id. at 28. As we said in Kilburn, the absence of standards results in the exercise of discretion in a discriminatory fashion. Kilburn,
While excessive discretion might lead to favoritism and discrimination, it is not true, as the dissent suggests,
This Court has already accepted the third rationale, which is concerned with assuring that the landowner be given fair notice of what it can and cannot do with the land. Miserocchi,
A detailed examination of the record in the Handy case, the only case for which we have a complete record,
Handy’s representative made arguments that the equities,
We recognize that a standard sufficient to save the statute can be general, and can be derived from historical usage, see Kent v. Dulles,
The Town suggests, and the dissent agrees,
We also recognize that the Legislature intended to give municipalities flexibility in dealing with development proposals at variance with new proposed zoning rules. But a grant of flexibility to the municipality is constitutional only if it is accompanied by some ability of landowners to predict how discretion will be exercised and to develop proposed land uses accordingly. Flexibility cannot be a synonym for ad-hoc decision making that is essentially arbitrary. We cannot ignore that in a small town environment, the people involved, and affected by, the decision-making process have frequently had extensive interaction with each other, and the use of flexibility may reflect that interaction rather than neutral, predictable, and universal administrative standards.
Nor can we resolve the deficiency in the statute by announcing that the selectboard does not have unfettered discretion and creating a “reasonable basis” review standard.
The second point is about the effect of this decision. As the environmental court explained, the decision that Handy does not have to go through selectboard review, and our similar ruling for Jolley, does not end the question of which version of the zoning ordinance applies. Our vested rights jurisprudence, first announced in Smith v. Winhall Planning Commission,
Contrary to the argument of the dissent, the “good faith” standard is specific and ascertainable, having been adopted and described in numerous decisions from other states. See, e.g., Stowe v. Burke,
We cannot determine on this record whether Handy’s application was validly brought and pursued in good faith. Although the environmental court could make that determination in the first instance, we agree with it that the better procedure is that the zoning board make that determination first with review by the environmental court. We affirm that holding.
Similarly, because of the very limited factual development in the environmental court, we also cannot assess the Jolley application against this standard. We note only that because Jolley’s application came later in the process, its burden to show that it did not engage in a race to put in some development proposal before the ordinance became effective is much higher. See Yecko Bros.,
The environmental court’s November 14, 1997 decision with respect to the Handy applications is affirmed. The environmental court’s November 14, 1997 decision with respect to the Jolley applications is vacated. The cases are remanded for further proceedings consistent with this opinion.
Notes
Formerly 24 VS.A. § 4443(c), the subsection was redesignated as § 4443(d) effective July 1,1998, when another subsection was added to § 4443.1997, No. 125 (Adj. Sess.), § 3.
There appears to be an inconsistency between the undisputed statement of facts contained in the environmental court’s decision in the Jolley case — which indicates that the amendments proposed eliminating gas stations and fast-food restaurants as permitted uses in the residential-commercial zone •— and the selectboard’s decision in the Jolley case — which indicates that the amendments proposed eliminating gas stations as a use in the residential-commercial zone and reclassifying fast-food restaurants as a conditional use in that zone. The parties neither challenge the environmental court’s finding nor mention the apparent discrepancy, which is not significant to our resolution of the cases before us.
Neither the Town nor Jolley appealed from a final judgment. See In re Cliffside Leasing Co.,
’Section 4443(d) does not specify whether the “public notice” referred to is the public hearing notice required of the planning commission by 24 VS.A. § 4403(d) or the public hearing notice required of the selectboard by 24 VS.A. § 4404(a). Because it is undisputed that both Handy and Jolley submitted their applications after both public hearing notices, we need not decide the issue at this time. See Preseault v. Wheel,
The delegation doctrine has had a more checkered history at the federal level. At one point, Professor Davis described the doctrine as “almost a complete failure.” K. Davis, A New Approach to Delegation, 36 U. Chi. L. Rev. 713, 713 (1969). It has, however, been featured in some more recent opinions of the Supreme Court, and some scholars have called for greater reliance upon it. See, e.g., R. Pierce, The Role of Constitutional and Political Theory in Administrative Law, 64 Tex. L. Rev. 469, 470-72 (1985). Despite the controversy over the doctrine, a central focus of federal administrative law has been on managing and controlling agency discretion. See generally R. Stewart, The Reformation of American Administrative Law, 88 Harv. L. Rev. 1669 (1975). Moreover, the delegation doctrine has remained alive at the state level despite the federal controversy. See G. Greco, Standards or Safeguards: A Survey of the Delegation Doctrine in the States, 8 Admin. L. J. Am. U. 567, 580-603 (1994).
The record in Jolley is incomplete because the parties put aside a discovery dispute to resolve the issue of the proper construction of § 4443(d), and the case never reached the point where the environmental court could issue findings of fact. For example,
There is absolutely no support in the record for the dissent’s statement that “Jolley and Handy knew what factors would be relevant to the Town’s decision under § 4443(d).”
Presaging our reversal of the environmental court’s interpretation of § 4443(d), the parties dispute whether the court’s review of a town’s decision under the statute is de novo or in the nature of ordinary appellate review. Further, both Jolley and the Town take exception to the environmental court’s determination that conditional-use applications must be considered by the zoning board of adjustment before the selectboard’s review under § 4443(d). We need not decide these issues because of our conclusion that § 4443(d) is unconstitutional.
Dissenting Opinion
dissenting. Today, the majority strikes down as unconstitutional a legislative act that significantly affects public interest, even though none of the parties in either of the consolidated appeals has ever challenged the constitutionality of the statute at any point during the proceedings, including here on appeal. Thus, there is no lower court ruling on the constitutional question raised sua sponte by the majority. Nor is there any briefing on the issue. Nor was the Attorney General ever warned of any potential constitutional infirmity to the statute or given an opportunity to respond to any such
Notwithstanding the lack of argument concerning the validity of the statute, the majority strikes down § 4443(d) based on a doctrine that, even the majority concedes, has been applied inconsistently and has been described by the leading legal scholar on administrative law as “‘almost a complete failure.’”
Yet the majority is not affirming the environmental court’s decisions in any sense. The environmental court did not even consider the constitutionality of § 4443(d), let alone strike it down. To the contrary, the court ruled in its two decisions that good-faith applications filed between public notice and a town’s adoption of a proposed zoning
The majority’s efforts to “affirm” the environmental court’s decisions, and thereby justify striking down § 4443(d) without the benefit of briefing, only compound its problems. With little discussion and — once again — without the benefit of briefing, the majority impliedly adopts a pending-amendment exception to Vermont’s minority vested rights rule, stating that “a developer may not have a vested right in an application filed while a proposed amendment is pending.”
In short, today’s decision does not affirm the trial court’s judgment, but rather sets forth broad holdings — without the benefit of briefing and based on questionable legal theories — that were not contemplated by the environmental court and that are contrary to the legislative will. Because I concur with the majority’s interpretation of the meaning of § 4443(d), I would reverse both of the environmental court’s decisions and remand the matter to that court to review the selectboard’s § 4443(d) decisions under an abuse of discretion stan
In the majority’s view, § 4443(d) unconstitutionally delegates discretionary authority to town selectboards without providing explicit standards upon which to base that discretion.
Apart from the lack of briefing on the constitutionality of § 4443(d), I do not believe that the record supports the majority’s view of the facts. Both Jolley and Handy knew what factors would be relevant to the Town’s decision under § 4443(d). Further, they both had an opportunity to make the selectboard aware of the relevant equitable considerations, and in fact took advantage of that opportunity by raising those considerations in the hearings before the selectboard. Moreover, the selectboard declined to apply the old zoning law to the Jolley and Handy applications after explicitly addressing the equitable arguments raised by the applicants and acknowledging that § 4443(d) gave the Town the discretion to apply either the old or the amended zoning law.
In the Jolley case, various representatives appeared and testified on behalf of Jolley Associates at the March 11, 1997, hearing before the selectboard. Jolley’s attorney specifically reviewed the history of the permit applications from Jolley’s perspective. The attorney complained that, at a September 24, 1996, meeting, town officials discussed only the old zoning bylaw with Jolley’s representatives, even though the Shelburne Planning Commission had already conducted several work sessions on the new amendment. At the hearing, Jolley also pointed out that it had already expended over $20,000 under the purchase-and-sales agreement it had signed with the owner of the property upon which it hoped to operate its new business. Thus, Jolley was well aware that equitable considerations such as the timing of prior permit applications, the expectations of the parties, and the
In its decision of March 25,1997, the selectboard acknowledged the testimony of Jolley’s attorney that Jolley had expended $20,000 under its purchase-and-sales contract and that the proposed zoning amendment had not been discussed at a September 1996 meeting between town officials and Jolley’s representatives. The selectboard expressly recognized that it “at all times retains discretion to approve an application” under § 4443(d). Nevertheless, the selectboard determined that “the equitable factors in this case do not weigh in favor of granting Jolley’s application.” The selectboard pointed out that (1) the Town properly warned the planning commission work sessions that were conducted on the proposed amendment before September 1996, but that Jolley did not directly participate in that process; (2) most of the money that Jolley had expended in preparing its application was refundable, putting it in no worse situation than if it had known of the proposed amendment before September 1996; (3) Jolley submitted its application only five days before the effective date of the amendment; and (4) allowing the proposed application would create a use not permitted under the new zoning law, in contravention of the strong presumption in Vermont law against the undue perpetuation of nonconforming uses.
Thus, Jolley had an opportunity to make its case. It was obvious to all concerned that equitable considerations, along with the nature of the proposed use and its status under the new zoning law, were the relevant factors that the selectboard would consider in determining whether to grant the application.
The same is true in the Handy case. The minutes of the February 10,1997, hearing reveal that both Paul Handy and his representative reviewed the history of their application for the proposed project. They pointed out that the application was first submitted in June 1996, and that it was denied in August 1996 for reasons unrelated to the gas station that was proposed. These facts were undisputed and have not been challenged by the Town. Handy’s representative conceded that his application did not comply with the new zoning law, but complained that he had been unaware of the changes that were proposed under the new amendment. In its decision of June 3,1997, the selectboard noted that Handy’s representative had reviewed the history of the original application and indicated that Handy had been unaware of the proposed amendment to eliminate gas station use in
Nevertheless, absent any. constitutional challenge from either Handy or Jolley, the majority declares § 4443(d) unconstitutional because it does not expressly set forth the specific factors to be considered by a selectboard in deciding whether applications filed during the moratorium period will be reviewed under the old or amended zoning law. The relevant factors are obvious in the context of this discrete, narrow statute. As the majority acknowledges,
On the other hand, because there may be situations in which it would be unfair to require an applicant to proceed under the proposed zoning law, § 4443(d) grants town selectboards some flexibility to allow applications to be reviewed under the old law during the moratorium period. Obviously, equitable considerations such as the history of the application, including the extent to which the applicant incurred expenses in reasonably relying on having the application considered under the old law, are relevant to a selectboard’s § 4443(d) decision. Another obvious consideration is the status of the proposed use under the old and new laws — for example, whether the proposed
The law that the majority cites in support of its contention that § 4443(d) is unconstitutional deals with the duty of towns to set forth within their zoning laws reasonably specific standards that will control the discretion of administrative boards in granting or disallowing special exceptions to permitted uses. See generally 3 K. Young, Anderson’s American Law of Zoning § 21.09 (4th ed. 1996). By requiring standards, courts seek to assure that property owners are put on notice as to permitted uses, and that discretion as to whether to allow proposed uses is not exercised in an arbitrary or discriminatory fashion. In re Miserocchi,
Under this reasoning, “[sjtandards of the most general character have been held sufficient to guide the boards and provide understandable criteria for judicial review.” Young, supra, § 21.09, at 713. Indeed, “[t]here may be a trend toward more liberal construction of standards.” Id. at 716 (“Some courts have been sufficiently impressed with the need for broad delegation of permit-issuing authority to reach out and discover standards where arguably there were none.”); see Department of Transp. v. Armacost,
I agree with Jolley, and the majority, that town selectboards do not have unfettered discretion under § 4443(d) to withhold consent for issuance of permits under zoning laws that are the subject of pending amendments. While municipal authorities have broad latitude in exercising discretionary powers granted to them, “the general rule is uniformly applied that powers granted in comprehensive terms must be reasonably exercised. It is the province of the court to protect the individual from unreasonable, oppressive, or arbitrary exercise of power within the limits of our constitutional and legal system.” 5 E. McQuillin, The Law of Municipal Corporations § 18.04, at 465 (3d ed. 1996).
Because of its erroneous construction of § 4443(d), the environmental court did not consider the merits of the selectboard’s decisions. Consequently, for the most part, the parties do not address the question of whether the selectboard acted within its discretion in refusing to allow consideration of the applications under the old zoning law. Jolley, however, takes exception to the selectboard’s statement that the inconsistency of the instant applications with the amended bylaws, in and of itself, was sufficient under the facts of each of the cases to deny consent for issuance of permits under the old bylaws.
Without addressing the ultimate question of whether the selectboard acted within its discretion in requiring that the applications be considered under the amended bylaws, I see nothing inappropriate in- the selectboard’s statement. As noted, the selectboard explicitly recognized that it had the discretion to examine the equities of a particular case and grant its consent under § 4443(d), notwithstanding any inconsistency between the application and the amended bylaws. The selectboard merely concluded that the equities and circumstances of the Jolley and Handy cases did not warrant exercising its discretion to consent to the permits under the old bylaws. In making this determination, the selectboard considered that the applications sought approval for uses that were prohibited, even conditionally, under the new bylaws. In the selectboard’s view, the strong presumption against allowing nonconforming uses was determinative as to what law should be applied to the applications.
This Court has stressed that the Legislature’s delegation of power to an administrative agency may not be unrestrained or arbitrary, but rather must “provide a sufficient standard or policy to guide the
It is well settled that, absent exceptional circumstances, this Court will not consider constitutional arguments inadequately briefed or not previously raised. SBC Enterprises, Inc. v. City of South Burlington,
The effect of today’s holding with respect to the instant cases will be to allow uses in the Town of Shelburne that are not permitted under the Town’s zoning laws. Moreover, the holding will prevent
I am authorized to say that the Chief Justice joins in my dissent.
The majority cites one case — Tonya K. v. Board of Educ. of Chicago,
