Disapproval of Planned Unit Development
05.26.10 9:11 AMA recent Tennessee Court of Appeals case, found here, reaffirmed that it is very difficult for developers to challenge an unsuccessful rezoning or planned unit development application. Even though the proposed development was consistent with a land use plan, the City Commission of Lakeland, Tennessee, voted to disapprove the development. The developer challenged the disapproval and lost at both the trial court and court of appeals.
The Court determined that the action on the planned unit development was administrative. Thus, a writ could be issued to challenge the decision. The standard of review for such a challenge is to prove that the municipality acted illegally, arbitrarily, or capriciously. If "any possible reason" justifies the action, it will be upheld.
Disapprovals of planned unit developments, or PUDs, that have established criteria for approval, can be challenged successfully if there is evidence that the criteria have been met. This is generally the case where the record shows that public or political influence was the principal factor for the disapproval.
The Court did not focus on the requested rezoning, which was also involved. Rezonings are usually deemed to be legislative acts, As such, they will be upheld if any rational basis exists to support the act. In either case, the burden to challenge a negative decision on a rezoning or a denial of a planned unit development is heavy.
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