Daily Development for Friday, November 3, 2000

By: Patrick A. Randolph, Jr.
Professor of Law
UMKC School of Law
Of Counsel: Blackwell Sanders Peper Martin
Kansas City, Missouri
randolphp@umkc.edu

ZONING AND PLANNING: Updating the sign faces of freestanding signs, which had been exempted from the zoning code as legal nonconforming signs, to reflect current logos and shopping center tenants, without altering the existing signs, is a "reasonable alteration" and consistent with continued nonconforming status.

Motel 6 Operating Ltd. Partnership v. Flagstaff, 991 P.2d 272 (Ariz. App. 1999).

Business owners sought relief when the city denied them permission to change the sign faces on signs that had been "grandfathered" after the city amended its development code. Arizona's Code did not allow any alteration of a nonconforming sign. The court held that, although Arizona public policy encourages the elimination of nonconforming uses, such uses are constitutionally protected from the retroactive effect of the zoning laws and may be removed only within the boundaries of fairness and justice. Following other courts that concluded that alterations to sign messages do not trigger the loss of nonconforming use rights, the Arizona Court of Appeals held that the proposed sign alterations were reasonable and should be allowed.

Comment 1: Although this case states good news, don't forget that a number of cases have held that government can constitutionally zone out signs without compensating for them by giving a relatively limited period in which to amortize the current investment in the sign.

Comment 2: Tenants who are negotiating for space in an area where sign control has been initiated would be wise either to make approval of their new signage a condition of the lease or else resolve any signage problems in advance. Typically, tenants and purchasers have the duty to identify zoning issues in advance, and such problems usually will not support "frustration of purpose" claims when they are later discovered.

Comment 3: For a similar holding, see the DD for 11/18/98, reporting Rogers v. Zoning Board of Adjustment of the Village of Ridgewood, 309 N.J. Super. 630, 707 A.2d 1090 (App. Div. 1998).

Readers are urged to respond, comment, and argue with the daily development or the editor's comments about it.

Items in the Daily Development section generally are extracted from the Quarterly Report on Developments in Real Estate Law, published by the ABA Section on Real Property, Probate & Trust Law. Subscriptions to the Quarterly Report are available to Section members only. The cost is nominal. For the last six years, these Reports have been collated, updated, indexed and bound into an Annual Survey of Developments in Real Estate Law, volumes 1‑6, published by the ABA Press. The Annual Survey volumes are available for sale to the public. For the Report or the Survey, contact Maria Tabor at the ABA. (312) 988 5590 or mtabor@staff.abanet.org

Items reported here and in the ABA publications are for general information purposes only and should not be relied upon in the course of representation or in the forming of decisions in legal matters. The same is true of all commentary provided by contributors to the DIRT list. Accuracy of data and opinions expressed are the sole responsibility of the DIRT editor and are in no sense the publication of the ABA.

Parties posting messages to DIRT are posting to a source that is readily accessible by members of the general public, and should take that fact into account in evaluating confidentiality issues.

ABOUT DIRT:

DIRT is an Internet discussion group for serious real estate professionals. Message volume varies, but commonly runs 5 ‑ 10 messages per workday.

Daily Developments are posted every workday.

To subscribe to Dirt, send an e-mail to:

To:

ListServ@listserv.umkc.edu

Subject:

[Does not matter]

Text in body of message

Subscribe Dirt [your name]

To cancel your subscription to Dirt, send an e-mail to:

To:

ListServ@listserv.umkc.edu

Subject:

[Does not matter]

Text in body of message

Signoff Dirt

For information on other commands, send the message Help to the listserv address.

DIRT has an alternate, more extensive coverage that includes not only commercial and general real estate matters but also focuses specifically upon residential real estate matters. Because real estate brokers generally find this service more valuable, it is named “Brokerdirt.” But residential specialist attorneys, title insurers, lenders and others interested in the residential market will want to subscribe to this alternative list. If you subscribe to Brokerdirt, it is not necessary also to subscribe to DIRT, as Brokerdirt carries all DIRT traffic in addition to the residential discussions.

To subscribe to Brokerdirt, send an e-mail to:

To:

ListServ@listserv.umkc.edu

Subject:

[Does not matter]

Text in body of message

Subscribe Brokerdirt [your name]

To cancel your subscription to Brokerdirt, send an e-mail to:

To:

ListServ@listserv.umkc.edu

Subject:

[Does not matter]

Text in body of message

Signoff Brokerdirt

DIRT is a service of the American Bar Association Section on Real Property, Probate & Trust Law and the University of Missouri, Kansas City, School of Law. Daily Developments are copyrighted by Patrick A. Randolph, Jr., Professor of Law, UMKC School of Law, but Professor Randolph grants permission for copying or distribution of Daily Developments for educational purposes, including professional continuing education, provided that no charge is imposed for such distribution and that appropriate credit is given to Professor Randolph, DIRT, and its sponsors.

DIRT has a WebPage at: http://www.umkc.edu/dirt/