Viles v. Bd. of Mun. & Zoning Appeals, 148 A.3d 358, 230 Md. App. 506 (2016)

Oct. 27, 2016 · Court of Special Appeals of Maryland · No. 1401, Sept. Term, 2014
148 A.3d 358, 230 Md. App. 506

John Viles et al.
v.
Board of Municipal and Zoning Appeals

No. 1401, Sept. Term, 2014

Court of Special Appeals of Maryland.

October 27, 2016

Argued by: J. Carroll Holzer (Holzer & Lee on the brief) all of Towson, MD, for Appellant.

Argued by: Sandra R. Gutman & Adam S. Levine (George A. Nilson, City Solicitor on the brief) all of Baltimore, MD, for Appellee.

Kehoe, Hotten,* Reed, JJ.

Kehoe, J.

*509As land use disputes go, the relevant facts in this case are mercifully simple. The legal issues are a different matter.

This appeal arises out of a 2013 decision by the Baltimore City Planning Commission to modify some of the terms of a planned unit development that had been established by the Baltimore City Council in 2010. John Viles, together with several other individuals opposed to the modifications, appealed the Commission's decision to the Board of Municipal and Zoning Appeals of Baltimore City. The Board declined to address the merits of their claims because it concluded that it did not have the authority to review decisions of the Planning Commission. Appellants then filed the current case, a judicial review action challenging the Board's decision. The Circuit Court for Baltimore City affirmed the Board. The appellee is the Mayor and City Council of Baltimore.

Appellants present two issues, which we have reordered and reworded:

1. Did the Zoning Board have jurisdiction to review the Planning Commission's action?
*5102. Does Baltimore City Zoning Ordinance § 9-118(c) give the Planning Commission authority to modify the terms of a planned unit development?

We answer "yes" to the first question. As we will explain, Md. Code Ann. (2012) § 10-404(a) of the Land Use Article ("LU") authorizes the Board to hear appeals "when it is alleged that there was an error in any ... determination made by an administrative official" pertaining to "any local law adopted" pursuant to the General Assembly's grant of land use and zoning authority to the City. BCZR § 9-118(c) is such a local law. Additionally, the Planning *361Commission functions in an administrative capacity when it approves or denies design modifications to existing PUD developments because those decisions are focused on single properties or discrete assemblages of properties. The City also contends that Article VII § 86 of the City Charter trumps the General Assembly's grant of authority to the Board but this contention: (1) is based on an erroneous interpretation of the language in § 86; and (2) in any event, is irreconcilable with long-established legal principles relating to the relationship between local government charters and public general laws.

We will not address the second issue because appellants' arguments as to the validity of § 9-118(c) should be presented first to the Board.1

*511Background

In 2010, the Baltimore City Council enacted Ordinance No. 10-397, which established a PUD, called the "25th Street Station PUD," on an eleven acre parcel located in the Remington and Charles Village neighborhoods.2 In 2013, the Planning Commission considered and approved an amendment to the PUD design occasioned by a decision of a proposed major tenant to leave the development. The Planning Commission's approval was made pursuant to § 9-118(c) of the BCZC.3 Whether § 9-118(c)'s grant of authority *362to the Commission is valid is a matter of contention between the parties.

Appellants appealed the Commission's decision to the Board. The Board held a hearing, but did not reach the merits *512of appellants' contentions. Instead, the Board decided that it did not have the authority to consider appeals from decisions by the Planning Commission. Its conclusion was based on Article VII, § 86 of the City Charter4 which states (emphasis added):

The Board shall have such additional powers to examine, review and revise acts or rulings of other departments and officers of the City affecting the construction, alteration, use or operation of land or buildings in the City or other charges as may from time to time be conferred upon it by law, but the powers conferred upon it in the Charter shall not be diminished or abridged by ordinance, nor may the Board be given power to review or alter determinations of the Planning Commission.

Appellants filed a petition for judicial review in the circuit court, which affirmed the Board's decision.

I. The Standard of Review

In judicial review cases, an appellate court reviews the agency decision, as opposed to the decision of the circuit court. People's Counsel v. Loyola College , 406 Md. 54, 66, 956 A.2d 166 (2008) ; Para v. 1691 Ltd. P'ship , 211 Md.App. 335, 354, 65 A.3d 221 (2013). The issue decided by the Board is one of law, specifically, the relationship between provisions of the City Charter, on the one hand, and the Land Use Article on the other. In these circumstances, our review is de novo. See, e.g., Spencer v. Maryland State Bd. of Pharmacy , 380 Md. 515, 528, 846 A.2d 341 (2004).

II. The Board's Jurisdiction to Review the Planning Commission's Decision

During the hearing before the Board, appellants argued that the Board had jurisdiction to hear their appeal pursuant to LU § 10-404(a)(1), which authorizes the Board to:

*513hear and decide appeals when it is alleged that there was an error in any order, requirement, decision, or determination made by an administrative official or unit under [Land Use Article Title 10] or any local law adopted under [Title 10].

They further contended that the Planning Commission was acting as an administrative official under Title 10 when it approved the modification to the PUD, and thus the Board had jurisdiction to hear this appeal. {E. 196.}

The Board concluded that it lacked jurisdiction. It cited § 86 of the Charter, interpreting the language that the Board may not "be given power to review or alter determinations of the Planning Commission," to mean that the Board is without authority to review decisions of the Planning Commission. {E. 197.} It reasoned that, even if the Planning Commission was acting as an "administrative official" under LU § 10-404(a)(1), the Charter took precedence over the Land Use Article and limited the scope of the Board's jurisdiction. {E. 197.}

A. Some Historical Context

Land use control came to Maryland in fits and starts. The earliest decision of the *363Court of Appeals that considered the validity of a local law that functioned in a manner analogous, at least in some respects, to a modern zoning code appears to be Commissioners of Easton v. Covey , 74 Md. 262, 267-69, 22 A. 266 (1891), in which the Court upheld an ordinance that authorized the town commissioners to deny a building permit if doing so was necessary "to protect the safety of property and the best interests of the town [.]" (Emphasis in original.)5 In 1923, Baltimore enacted Maryland's first comprehensive zoning ordinance. Garrett Power, The Unwisdom of Allowing City Growth to Work Out Its Own Destiny , 47 MD. L. REV. 626, 633 (1988). The use regulations of the ordinance were struck down by the Court of Appeals on substantive due *514process grounds in Goldman v. Crowther , 147 Md. 282, 309, 128 A. 50 (1925). However, one year later, the United States Supreme Court issued its landmark decision in Village of Euclid v. Amb l er Realty , 272 U.S. 365, 395, 47 S.Ct. 114, 71 L.Ed. 303 (1926), in which the Court rejected a substantive due process challenge to a zoning ordinance.6

In 1927, the General Assembly enacted Chapter 705 of the Laws of 1927, which added Article 66B to the Maryland Code. Chapter 705 applied only to Baltimore City and other cities with populations of more than 10,000. Robert J. Carson, Reclassification, Variance and Special Exceptions in Maryland , 21 MD. L. REVIEW 306, 307 (1961). Chapter 705 was eventually codified as MD. ANN. CODE Article 66B §§ 2.01 -2.13 (1957, 2010 Repl. Vol., 2014 Supp.). In the same year, the legislature also enacted what is today known as the Regional District Act, which provided for the exercise of planning and zoning authority in the Maryland-Washington Regional District, which originally was, more or less, the area that now lies within the Capital Beltway in Montgomery and Prince George's Counties.7

In 1933, the General Assembly enacted a statute, sometimes referred to as the Maryland Zoning and Planning Enabling *515Act, which amended Article 66B by adding provisions that authorized all municipalities to enact and administer planning, zoning and subdivision control regulations. Chapter 599 of the Acts of 1933. (The scope of this statute was later extended to non-charter counties.) Section 28 of this statute contained a blanket repeal of any provision in *364a statute or local ordinance that was inconsistent with its terms, except that:

Chapter 705 of the Acts of 1927 and all laws and ordinances passed pursuant thereto shall not be affected ... and that this Act shall be deemed to be in addition to said Chapter 705 ... and not in substitution therefor.

Section 28's direct descendant is LU § 10-103.8 Section 10-103 lies at the heart of the controversy between the parties.

In addition, the General Assembly enacted local public laws which authorized some counties to exercise zoning powers. See Baltimore County v. Missouri Realty Inc ., 219 Md. 155, 158, 148 A.2d 424 (1959) ; Murray v. Director of Planning , 217 Md. 381, 384-86, 143 A.2d 85 (1958).

There is another aspect to the historical background. In 1915, the voters ratified Article XI-A to the Maryland Constitution, which permitted the City of Baltimore and the state's counties to elect a "home rule" form of local government. The purpose of Article XI-A was to allow the authority to enact legislation affecting purely local matters to devolve from the General Assembly to those counties, and Baltimore City, when and if those jurisdictions wished to assume that responsibility by enacting a locally-approved county charter. County Commissioners of Montgomery County v. Supervisors of Elections , 192 Md. 196, 204, 63 A.2d 735 (1949). In 1918, and *516pursuant to a mandate contained in Article XI-A § 2, the General Assembly enacted the Express Powers Act to designate local legislative powers that could be exercised by charter counties. Montgomery County Council v. Garrott , 243 Md. 634, 644, 222 A.2d 164 (1966). The Act specifically authorized charter counties to enact zoning regulations. Md. Code Article 25A § 5(X) (1957).9

The Express Powers Act does not apply to the City of Baltimore. This is because Article 11-A of the Maryland Constitution reserved to the General Assembly the authority to grant and limit the local legislative powers exercised by the City. Article 11-A § 2 states in pertinent part:

[T]he powers heretofore granted to the City of Baltimore, as set forth in Article 4, Section 6, Public Local Laws of Maryland, shall not be enlarged or extended by any charter formed under the provisions of this Article, but such powers may be extended, modified, amended or repealed by the General Assembly.

The Code of Local Public Laws of Baltimore no longer contains the powers enumerated in Article 4 § 6. Instead, they are now found in Article II of the Baltimore City Charter. See Dan Friedman, THE MARYLAND STATE CONSTITUTION: A REFERENCE GUIDE 220 (2006).

In conclusion, local governments that exercise zoning authority fall into one of four categories: (1) Baltimore City; (2) the charter counties; (3) Montgomery and Prince George's Counties; and (4) municipalities and the non-charter counties.

*365In 2012, the Department of Legislative Reference, working under the supervision of the Land Use Article Review Committee, completed the herculean task of gathering this widely scattered body of law, reorganizing it, and rewording many of the statutes to delete obsolete and redundant terminology. As part of this effort, what had been Article 66B

*517§§ 2.01-2.13-that is, the zoning enabling statute for Baltimore-was repealed and reenacted as Title 10 the Land Use Article. However, as the General Revisor's Note to the Land Use Article makes clear, "the enactment of the article in no way is intended to make any change to the substantive law of Maryland." We now turn to the parties' specific contentions.

B. Land Use Article § 10-404(a)

Appellants contend that the Board's authority to consider this appeal is derived from LU § 10-404(a)(1), which states:

(a) The Board may:
(1) hear and decide appeals when it is alleged that there was an error in any order, requirement, decision, or determination made by an administrative official or unit under this title or any local law adopted under this title[.]

Appellants cite Queen Anne's Conservation, Inc. v. County Comm'rs of Queen Anne's County , 382 Md. 306, 855 A.2d 325 (2004), and Wharf at Handy's Point, Inc. v. Dep't of Natural Res. , 92 Md.App. 659, 610 A.2d 314 (1992), as authority for their contentions that the Planning Commission qualifies as an administrative official, and that its approval of the PUD modification qualifies as a decision made pursuant to Title 10 of the Land Use Article.

Handy's Point supports the first leg of appellants' argument. One issue in that case was whether the Kent County Planning Commission, as a multi-member entity, could be an "administrative official" for the purposes of what was then Article 66B § 4.07.10 Section 4.07(d) stated (emphasis added):

§ 4.07 (d) General powers .-The board of appeals shall have the following powers: (1) To hear and decide appeals where it is alleged there is error in any order, requirement, decision, or determination made by an administrative official in the enforcement of this article or of any ordinance adopted pursuant thereto.

*518This Court, citing Howard Research v. Concerned Citizens , 297 Md. 357, 363-66, 466 A.2d 31 (1983) and 64 Op. Att'y Gen. 349, 355 n.4 (1979), concluded that the term "administrative official," for purposes of the zoning enabling act, includes:

whatever administrative mechanism a local jurisdiction in Maryland sets up to enforce its planning and zoning laws and ordinances, including a multi-member body such as a local planning commission.

Handy's Point , 92 Md.App. at 672, 610 A.2d 314. Thus, this Court concluded that the term "administrative official" includes Planning Commissions.

One of the issues in Queen Anne's Conservation was whether opponents to a development in Queen Anne's County were required to exhaust their administrative remedies before filing a circuit court action challenging a decision by the County Commissioners to approve a development rights and responsibilities agreement (a "DRRA"). 382 Md. at 311, 855 A.2d 325. One aspect of the problem confronting the Court of Appeals was whether the County Commissioners acted in a legislative or in an administrative capacity when they approved the agreement. Id. If the Commissioners were acting in an administrative *366capacity, then the county board of appeals had the authority to review the Commissioners' decision because Article 66B § 4.07(d)11 authorized the county's board of appeals to "decide appeals where there is error in any order, requirement, decision, or determination made by an administrative official in the enforcement" of the county zoning ordinance. 382 Md. at 321, 855 A.2d 325.

The Court of Appeals noted that a single entity may exercise different functions, some of which may be characterized *519as "legislative" while others will be classified as "executive and administrative." Id. at 322, 855 A.2d 325. The Court went on to clarify that the proper test for determining whether an action is legislative on the one hand or executive or administrative on the other is that a legislative act "is one making a new law-an enactment of general application prescribing a new plan or policy"; while an administrative or executive act is one that "merely looks to or facilitates the administration, execution or implementation of a law already in force and effect[.]" Id. at 326, 855 A.2d 325. The Court concluded that the Commissioners were acting in an administrative capacity when they approved the DRRA. Id. at 328-29, 855 A.2d 325.

Applying the reasoning in Handy's Wharf and Queen Anne's Conservation , we reach the following conclusions: (1) the Baltimore Planning Commission is an "administrative official" for the purposes of LU § 10-404(a)(1) ; and (2) the Commission's decision to approve the modifications to the 25th Street Station PUD was an administrative one because the decision of the Planning Commission clearly was limited to design changes within the 25th Street Station PUD property. Cf. Maryland Overpak Corp. v. Mayor and City Council of Baltimore , 395 Md. 16, 53-54, 909 A.2d 235 (2006) (A decision by the Baltimore City Council to amend the design and density of a mixed-use PUD was quasi-judicial, as opposed to legislative, in nature.). Thus, the plain language of § 10-404(a) authorizes the Board to review the Planning Commission's decision.

To avoid this result, the City presents three arguments. We will discuss them in turn.

(1) The Scope of the Board's Authority Under § 10-404(a)(1)

The City asserts that the Commission's decision falls outside of § 10-404(a)(1)'s purview because that subsection limits the scope of the Board's review to those decisions issued "under [Title 10] or any local law adopted under [Title 10]."12 The City *520contends that the Planning Commission's authority to modify PUDs is not derived from Title 10 of the Land Use Article, but rather from Title 7, specifically LU § 7-101(a)(6),13 which authorizes local governments *367to enact laws that provide for planned unit developments. The City's argument cannot be squared with the relevant provisions of the Land Use Article for two reasons.

First, LU § 10-301(b)(15) explicitly states that the provisions of "Title 7, Subtitle 1 (Development Mechanisms)" of the Land Use Article applies to Baltimore City. Section 7-101 authorizes local jurisdictions to enact, among other land use controls, provisions for "planned unit developments." LU § 7-101(6). We read Title 10 as incorporating § 7-106 by reference.

Second, LU § 10-404(a)(1) authorizes the Board to hear appeals "when it is alleged that there was an error in any ... decision ... made by an administrative official or unit under this title or any local law adopted under this title[.]" (Emphasis added). The Planning Commission's authority to grant modifications to PUD requirements is contained in BCZC § 9-118(c). The BCZC is a "local law" as that term is used in the Land Use Article, see LU 1-101(j),14 and the BCZC was *521adopted pursuant to authority granted to the City by what is now LU § 10-301.15

(2) An Administrative Adjustment?

The second argument made by the City is that the PUD modification is an "administrative adjustment" as described in LU § 4-205,16 and that, pursuant to § 4-205(f), the local legislative body has discretion to choose whether to authorize the Board to *368hear appeals from these types of decisions. The *522legislative history of what is now § 4-205 undercuts the City's argument. The statute was passed as Senate Bill 427 of the 2000 session of the General Assembly and enrolled as chapter 427 of the Laws of 2000. SB 427 was sponsored by then Senator, and now Attorney General, Brian Frosh on behalf of the Article 66B Study Commission. The Fiscal Note to SB 427 indicates that the concept of "administrative adjustments" had nothing to do with planned unit developments but was rather intended to provide a means by which property owners could obtain minor and non-controversial adjustments to height, bulk and similar requirements without the expense of applying for a variance. See Fiscal Note at 2-3.

Additionally, before a local government can provide for administrative adjustments, LU § 4-205(c) requires that the local legislative body adopt criteria for granting applications. BCZC § 9-118(c) contains no such criteria and the City points to nothing elsewhere in the BCZC that does.

(3) The Effect of the City Charter

The City's final argument is that § 86 of the Charter precludes the Board from considering any decision of the Planning Commission.

The City's argument is a non-starter because the provisions of local government charters cannot preempt public general laws such as LU § 10-404(a)(1). The case law on this point is indisputable. See, e.g., Board of Sup'rs of Elections of Anne Arundel County v. Smallwood , 327 Md. 220, 242, 608 A.2d 1222 (1992) ("When a provision in a county charter conflicts with a public general law, the public general law prevails under Art. XI-A, § 1."); Montgomery County v. Bd. of Supervisors of Elections for Montgomery County, 311 Md. 512, 514, 536 A.2d 641 (1988) ("The Maryland Constitution, Article XI-A, § 1, provides inter alia that a county charter shall be subject to the public general laws of Maryland. If a provision of a county charter, including a charter amendment, conflicts with any public general law, the charter provision may not be given effect.");

*523Rosecroft Trotting & Pacing Ass'n, Inc. v. Prince George's County , 298 Md. 580, 598, 471 A.2d 719 (1984) ( "Const. Art. XI-A, § 2, after providing that '[t]he General Assembly shall by public general law provide a grant of express powers,' further provides that 'such powers may be extended, modified, amended or repealed by the General Assembly.' ").

Moreover, we do not believe it necessary to resolve any conflict between § 86 of the Charter and § 10-404(a)(1) of the Land Use Article, because there is no conflict.

Section 86 states (emphasis added):

The Board shall have such additional powers to examine, review and revise acts or rulings of other departments and officers of the City affecting the construction, alteration, use or operation of land or buildings in the City or other charges as may from time to time be conferred upon by law, but the powers conferred upon it by the Charter shall not be diminished or abridged by ordinance, nor may the Board be given the power to review or alter determinations of the Planning Commission.

As the authority granted the Board in § 10-404(a)(1) clearly falls into the category of "other charges as may from time to time be conferred upon by law," § 86 of the Charter supports the City's position only if that section has the legal effect of limiting the General Assembly's authority to enact legislation pertaining to the City. But this is not the function of a local government charter.

*369Maryland case law has "repeatedly explained that a county charter is equivalent to a constitution." Save Our Streets v. Mitchell , 357 Md. 237, 248, 743 A.2d 748 (2000) ; see also Smallwood , 327 Md. at 237, 608 A.2d 1222 ; Haub v. Montgomery County , 353 Md. 448, 450, 727 A.2d 369 (1999) ; Bd. of Election Laws v. Talbot County , 316 Md. 332, 341, 558 A.2d 724 (1989). Thus, the "basic function" of the charter is to "distribute power among the various agencies of [local] government, and between the [local] government and the people who have delegated that power to their government." Save Our Streets , 357 Md. at 248, 743 A.2d 748 (quoting *524Smallwood , 327 Md. at 237, 608 A.2d 1222.). In other words, a charter does not change the balance of power between a local jurisdiction and the General Assembly.

Section 86 of the Charter states that the Board may not be given the power to review or alter determinations of the Planning Commission; § 86 does not state that the Board is without power to review Planning Commission determinations. Who is it then, that may not give power to the Board to review the Planning Commission's decisions? The answer must be the City. It is certainly not the General Assembly. Any other answer would stand the rule articulated in Smallwood , Rosecroft Trotting & Pacing Assn, Inc., and other cases on its head.

Because a charter provision that conflicts with a public general law must yield to the public general law, the City Charter provision cannot restrict the power of the General Assembly to pass public general laws that affect the City. Accordingly, we interpret the language of § 86 of the City Charter to mean that the City Council may not authorize the Board to consider decisions by the Planning Commission, but it does not preclude the General Assembly from providing the Board with this power. And, as we have explained, LU § 10-404(a)(1) confers upon the Board to authority to hear appeals from decisions of the Commission when it administers provisions of the BCZR.

Finally, the City cites to City of Baltimore v. Princeton Const. , 229 Md. 176, 182 A.2d 803 (1962) and Windsor Hills Imp. Ass'n v. Mayor & City Council of Baltimore , 195 Md. 383, 73 A.2d 531 (1950), which it argues collectively held that the Board is without authority to consider decisions of the Planning Commission. The difficulty with the City's argument is that both Princeton and Windsor predate the General Assembly's enactment of Title 10's predecessor, Section 2 of Article 66B, which was enacted in 1970. Chapter 672 of the Laws of 1970 amended Article 66B by adding § 2.08-the predecessor to LU § 10-404(a)(1) -to expressly grant to the Board authority to decide appeals "where it is alleged there is *525an error in any order, requirement, decision, or determination made by an administrative official in the enforcement of this article or any ordinance adopted pursuant thereto." Thus, when the Court of Appeals decided Princeton and Windsor , there was no statutory right to appeal an administrative decision of the Planning Commission to the Board. Notably, the City cites no cases that state the City is without authority to consider Planning Commission decisions after 1970. Princeton and Windsor are no longer apposite to the issue before us.

In summary, because the Planning Commission was acting in an administrative capacity when it approved the design modifications to the PUD, appellants had the right of appeal to the Board via LU § 10-404(a)(1). This right was not foreclosed by § 86 of the Charter. The Board erred in dismissing appellants' appeal for lack of *370jurisdiction.17 *527Because the Board never reached the merits of appellants' appeal, we will order the case to be remanded to the *371Board so that it can have the first opportunity to address this question. This is consistent with the general principle that courts do not ordinarily initially address a controversy when the legislature has provided an administrative remedy. See United Ins. Co. of Am. v. Maryland Ins. Admin. , 450 Md. 1, 15-16, 144 A.3d 1230 (2016) ("[T]his Court has 'ordinarily construed the pertinent [legislative] enactments to require that the administrative remedy be first invoked and followed' before resort to the courts." (quoting Maryland Reclamation Associates, Inc. v. Harford County , 342 Md. 476, 493, 677 A.2d 567 (1996) ); Arroyo v. Bd. of Educ. of Howard County , 381 Md. 646, 658, 851 A.2d 576 (2004) ("Exhaustion applies where a claim is cognizable in the first instance by an administrative agency alone; judicial interference is withheld until the administrative process has run its course." (internal quotation marks omitted)).

The circuit court should remand this case to the Board so that the Board can consider appellants' substantive contentions.

THE JUDGMENT OF THE CIRCUIT COURT FOR BALTIMORE CITY IS REVERSED AND THE CASE IS REMANDED FOR PROCEEDINGS CONSISTENT WITH THIS OPINION. APPELLEE TO PAY COSTS.