Town Council of New Harmony v. Parker

Court: Indiana Supreme Court
Date filed: 2000-04-18
Citations: 726 N.E.2d 1217, 726 N.E.2d 1217, 726 N.E.2d 1217
Copy Citations
35 Citing Cases

ATTORNEYS FOR APPELLANT                 ATTORNEYS FOR APPELLEE

R. Thomas Bodkin                  Robert R. Faulkner
Shellie Deffendall Kyle                 Leslie C. Shively
Charles L. Berger                       Evansville, Indiana
Evansville, Indiana

Karl L. Mulvaney                  ATTORNEYS FOR AMICUS CURIAE
Douglas D. Church                       STATE OF INDIANA
Indianapolis, IN
                                       Jeffrey A. Modisett
                                        Attorney General of Indiana

                                        A. Scott Chinn
                                        Geoffrey Slaughter
                                        Special Counsels to
                                       the Attorney General





                                   IN THE

                          SUPREME COURT OF INDIANA


TOWN COUNCIL OF                   )
NEW HARMONY, INDIANA,             )
                                       )
      Appellant (Defendant Below), )    Cause No. 87S01-9911-CV-673
                                       )     in the Supreme Court
           v.                           )
                                       )     Cause No. 87A01-9808-CV-
305
SHIRLEY PARKER,                   )     in the Court of Appeals
                                       )
      Appellee (Plaintiff Below).  )



                    APPEAL FROM THE WARRICK CIRCUIT COURT
                 The Honorable Donald G. Hendrickson, Judge
                         Cause No. 87C01-9608-CP-305



                               April 18, 2000


SHEPARD, Chief Justice.

      Shirley Parker owns land that Robert Dale Owen and Richard Owen  added
to  the  Town  of  New  Harmony  during  the  nineteenth  century.   It  was
undeveloped ground on the edge of  town  then,  and  it  still  is.   Parker
wishes to  sell  or  develop  her  land,  and  she  sued  the  Town  seeking
installation of various utilities at the Town’s expense.   The  trial  court
held that the absence of these utilities constituted a  taking  of  Parker’s
land.  It was not.


                        Facts and Procedural History

      In 1871, some subdivided land called Richard Owens’  Addition  to  New
Harmony (“the Addition”) was  platted  and  recorded  in  the  Posey  County
Recorder’s Office.  In 1874, another subdivision called Robert  Dale  Owens’
Eastern  Enlargement  of  New  Harmony  (“the  Enlargement”)  was  similarly
platted.  On May 10, 1882, the New  Harmony  Board  of  Trustees  passed  an
ordinance annexing both the Addition and the Enlargement as a  part  of  the
town.

      A hundred years later in 1982, Shirley Parker purchased parts  of  the
Enlargement, lots 10 through 17, and the east half of lot 18.  In 1990,  she
purchased lots 1 through 8 of the Addition.

      On February 28, 1995, her husband Don Parker attended a  Town  Council
meeting  and  asked  the  Town  to  extend  various   utilities   to   these
properties.[1]  Don Parker presented  plans  for  developing  the  property,
which included placing a house trailer on at least one of the lots.   During
the meeting, Parker  turned  around  to  town  zoning  administrator  Gerald
Blaylock and said, “[I]f you give the  permits  then,  you  know,  something
would have to happen.”  (R. at 365.)  Blaylock replied, “I can’t  do  that,”
(id.), believing that Parker would be unable to comply with  the  applicable
zoning ordinance.  It required utility hook-up within two weeks  of  placing
a trailer on the property, and not all the utility services were  available.
 Precisely what Parker wished to do with the land is  unclear,  inasmuch  as
he never sought a permit of any kind.

      On March 9, 1995, attorney  Charles  Berger  wrote  the  following  to
Parker on the Town’s behalf:
      As we understand your request as made orally by your husband, you  are
      requesting that the Town of New Harmony provide streets, water, sewer,
      and gas to each of the sixteen (16) lots that you are developing.  The
      Town of New Harmony is more than happy to provide  these  services  to
      you, but we must advise you that pursuant to the laws of the State  of
      Indiana as contained under Title 36 at I.C. §36-9-36-2, et  seq.,  the
      Town of New Harmony will assess each of the lots  at  their  pro  rata
      share for the costs of the extension of these services.   The  statute
      for assessing the sewer services can be found at I.C. §36-9-23-29.


      If you are requesting that the Town provide these  services,  we  will
      need for you [to] do so in writing, and we will then proceed with  the
      preliminary steps necessary to have these matters properly  considered
      by the Board,  including  the  costs  of  obtaining  preliminary  cost
      studies, publishing notices  of  plan  improvements  and  assessments,
      holding public hearings, and the conducting of said hearings.  All  of
      the costs associated, including the hearing stage,  will  be  assessed
      against the lots on a pro rata basis of one-sixteenth  (1/16)  of  the
      total cost if this is your desire.  We await your  reply  if  you  are
      interested  in  pursuing  this  matter  with  the  Town  making   said
      improvements.


(R. at 386.)  This offer was, of course, not what Parker hoped for  and  was
thus not implemented.

       The  following  year,  the  Town  received  safety  complaints  about
vehicles running off the end of a paved  street  that  dead-ended  into  the
west end of Parker’s land, (“four-wheelers and two-wheelers tearing  up  the
dirt and disturbing the neighbors,” (R. at  396)).   In  October,  the  Town
Board authorized placing a chain across the street at the  point  where  the
pavement stopped.

      On February  26,  1996,  Parker  filed  a  complaint  for  declaratory
judgment, stating that New Harmony had  refused  to  “extend  all  municipal
utilities . . . at its sole expense.”   (R.  at  14,  43.)[2]   Following  a
bench trial, the court entered findings of  fact  and  conclusions  of  law,
declaring that New Harmony was required to provide streets,  sidewalks,  and
utilities to Parker’s property, and that failure to provide  these  services
constituted a taking.  The court also concluded that placing a chain  across
the street resulted in a taking of Parker’s property.

      The court ordered New Harmony to  submit  a  plan  for  providing  the
improvements it had ordered.  New Harmony  submitted  a  plan  offering  two
proposals:  1) that the Town “dis-annex” Parker’s property, or 2)  that  the
Town extend the requested infrastructure and assess Parker for a portion  of
the costs of the  improvements  pursuant  to  Ind.  Code  §  36-9-36-1,  the
“Barrett Law.”  The court declared these proposals inadequate and  appointed
appraisers to assess damages to Parker’s property, although the record  does
not contain any instructions about how the damages were to be assessed.


      New Harmony appealed, and the Court of Appeals affirmed.  Town Council
of New Harmony v. Parker, 707 N.E.2d 1002 (Ind. Ct. App. 1999).  We  granted
transfer.


                               I.  Takings Law

      The Fifth  Amendment says, “[N]or shall private property be taken  for
public use, without just compensation.”  U.S.  Const.  amend.  V.[3]   While
there can be little doubt that  the  framers  intended  that  the  amendment
apply only to physical acquisition or invasion of property by  the  national
government,[4]  the  Takings  Clause  later  became  incorporated  into  the
Fourteenth Amendment and thereby made applicable to  the  States.   Chicago,
Burlington & Quincy R.R. Co. v. Chicago, 166 U.S. 226 (1897).  Later  still,
the U.S. Supreme Court declared that a taking might occur even  where  there
was no acquisition.  Pennsylvania Coal Co.  v.  Mahon,  260  U.S.  393,  415
(1922)(“[W]hile  property  may  be  regulated  to  a  certain   extent,   if
regulation goes too far it will be recognized as a taking.”)

      Still, aside from acquisition or invasion most  government  regulation
of property does not offend the Takings Clause.  See,  e.g.,  Herrington  v.
Sonoma County, 834 F.2d 1488 (9th Cir.  1988)  (disapproval  of  development
plans not a taking), cert. denied, 489 U.S. 1090 (1989); Major Media of  the
Southeast,  Inc.  v.  City  of  Raleigh,  792  F.2d  1269  (4th  Cir.  1986)
(requiring billboard removal  five  and  a  half  years  after  adoption  of
ordinance not a taking), cert. denied, 479 U.S. 1102 (1987);  Landmark  Land
Co. v. City of Denver, 728 P.2d 1281, 1287 (Colo. 1986) (“it must  be  shown
that the ‘ordinance precludes use  of  [the]  property  for  any  reasonable
purpose”; building limitations intended to promote view of mountains  not  a
taking), appeal dismissed sub nom., Harsh Inv. Corp. v. City of Denver,  483
U.S. 1001 (1987).


      The Supreme Court has held that the government  may,  consistent  with
the Takings Clause, affect property values by regulation  without  incurring
an obligation to pay under the full  scope  of  the  State’s  police  power.
This may be done when the regulation proscribes “harmful  or  noxious”  uses
of property, although the proscribed use need not rise to this  level.   See
Lucas v. South Carolina Coastal Council, 505 U.S. 1003, 1022 (1992).


      As Justice Scalia observed in writing for the Court  in  Lucas,  where
the state reasonably concludes that “the health, safety, morals, or  general
welfare would be promoted by prohibiting  particular  contemplated  uses  of
land,” compensation need  not  accompany  prohibition.   Id.  (quoting  Penn
Central Transp. Co. v.  City  of  New  York,  438  U.S.  104,  125  (1978)).
Moreover, a landowner is  not  entitled  to  unlimited  access  to  abutting
property at all points along a  highway,  nor  does  a  taking  occur  where
ingress and egress is made more circuitous and difficult.  State v.  Ensley,
240 Ind. 472, 489, 164 N.E.2d 342, 350 (1960); see also Jenkins v. Board  of
County Comm’rs, 698 N.E.2d 1268, 1271 (Ind. Ct. App. 1998), trans. denied.


                      II.  The Chain Across the Street


      The Town claims the trial court erred in determining a taking occurred
when the Town placed a chain across the unimproved portion of South  Street,
bordering Parker’s property.  (Appellant’s Br. at 23.)[5]


      The record reveals that although Parker’s property  is  subdivided  as
lots, it is functionally one  inclusive  piece  of  undeveloped  land.   The
property is roughly rectangular, and it is bordered by three streets, or  at
least by right of way dedicated for future streets.  Steam  Mill  Street  is
actually a paved street that  runs  along  the  northern  edge  of  Parker’s
property.  South Street is just “two wheel tracks” along the southern  edge.
 (R. at 73, 197, 306, 320.)  First, Second, and Third Streets run  North  to
South; they are paved or rocked until they reach  Ms.  Parker’s  undeveloped
holding.  (R. at 357.)  In sum, there are  no  paved  streets  leading  into
Parker’s property.

      In the present case, the  decision  to  place  a  chain  across  South
Street did  not  deprive  Parker  of  access  to  her  property,  as  it  is
accessible by a wide variety of streets and rights of way.  Parker  presents
no reason why access through South Street was particularly important or  how
her inconvenience in using  the  alternate  routes  was  greater  than  that
suffered by the general public.  See Young v. State, 252 Ind. 131, 134,  246
N.E.2d 377, 379 (1969), cert. denied, 396 U.S. 1038 (1970).[6]

      The facts presented at the evidentiary  hearing  do  not  support  the
trial court’s conclusion that placing a  chain  at  the  point  where  paved
South Street dead-ends into Parker’s land constituted a taking.



                            III.  Issuing Permits

      The Town next asserts that the trial court erred in  deciding  that  a
taking occurred when the zoning administrator indicated that  he  could  not
issue location improvements permits  for  Parker’s  property.   (Appellant’s
Br. at 26.)

      The procedural posture of this issue was a bit unusual.  Parker  never
requested a location improvement permit from the Town, nor did she  seek  to
have the administrator’s decision reviewed by the Board  of  Zoning  Appeals
(assuming the administrator’s response to  Don  Parker’s  statement  at  the
Town Board meeting can be called a “decision”).[7]  Instead,  she  filed  an
action  for  declaratory  judgment  asserting   that   the   administrator’s
“moratorium” constituted a taking without just compensation.


      New Harmony argues that Parker’s lawsuit is barred because she  failed
to exhaust all administrative remedies before  filing  an  action  with  the
trial court.[8]  In so arguing, the Town relies on Martin v.  Monroe  County
Plan Comm’n, 660 N.E.2d 1073  (Ind.  Ct.  App.  1996),  trans.  denied.   In
Martin,  the  trial  court  dismissed  plaintiffs’  petition  for  writ   of
certiorari requesting review of a decision by  the  Monroe  County  Planning
Commission; it  held  that  the  plaintiffs  had  failed  to  exhaust  their
administrative remedies by not  first  appealing  to  the  Board  of  Zoning
Appeals.  Id. at 1074.  The Court of Appeals affirmed, concluding  that  the
plaintiffs failed to comply with the Monroe County Zoning  Ordinance,  which
required appeals by decisions of the Plan Commission to be presented to  the
Board of Zoning Appeals before being presented for review  in   court.   Id.
at 1076.


      The  Town  of  New  Harmony  is  correct  on  this  point.   The   law
contemplates that Parker should seek  an  improvement  permit  and,  if  the
application was denied, appeal the denial to the Board  of  Zoning  Appeals,
or request a variance from the applicable zoning ordinance.  See  Ind.  Code
Ann. § 36-7-4-918.1 (West 1997).[9]  Indiana boards of  zoning  appeals  are
entrusted with the powers to hear such matters, and they  are  in  the  best
position to “determine on  appeal  from  a  decision  of  an  administrative
official where it is argued that the official  erroneously  interpreted  the
ordinance.”  Habig v. Harker, 447 N.E.2d 1114, 1116 (Ind.  Ct.  App.  1983).
If Parker was  dissatisfied  with  the  decision  by  the  Board  of  Zoning
Appeals, she could then seek judicial review of its ruling.  See  Ind.  Code
Ann. § 36-7-4-1003 (West 1997); Shipshewana Corp. v.  LaGrange  County,  656
N.E.2d 812, 812-13 (Ind. 1995).


      It is well-established that, if an administrative remedy is available,
it must be pursued before a claimant is allowed access to the courts.   See,
e.g., Austin Lakes Joint Venture v. Avon Util., Inc., 648 N.E.2d  641  (Ind.
1995).  Failure to exhaust administrative remedies deprives the trial  court
of subject matter jurisdiction.  Greenbrier Hills, Inc. v. Boes, 473  N.E.2d
1040, 1042 (Ind. Ct. App. 1985).

      Parker argues that she should not have been required to  apply  for  a
permit or appeal to the Board of Zoning Appeals because doing so would  have
been futile.  She reasons, “It is undisputed that the moratorium would  have
ma[d]e application for an improvement permit a useless  exercise  since  the
application would be dead on arrival.”  (Appellee’s Br. at 20.)

      Courts have said that exhaustion of  administrative  remedies  may  be
excused where the remedy would be futile.  See  Family  &  Social  Serv.  v.
Methodist Hosp., 669 N.E.2d 186,  189  (Ind.  Ct.  App.  1996).   This  case
illustrates well, however, that the  exhaustion  requirement  is  much  more
than a procedural hoop and that it should not be dispensed with  lightly  on
grounds of “futility.”


      First, when the landowner has never actually sought a permit,  neither
the local administrator nor the town board nor the reviewing courts can  say
with certainty what would have been approved or  disapproved.   Neither  the
record of the Town Board meeting where Don Parker appeared  nor  the  record
of the trial inform us exactly what Mr. and Mrs. Parker want to  do  and  on
what lots they want to do it.[10]

      Second, it is not plain at all in this case that pursuing relief  with
the Board of Zoning Appeals would have necessarily been futile.       It  is
apparent that the various  lots  owned  by  Mrs.  Parker  benefited  from  a
variety of utilities.  Some lots had storm sewers.   (R.  at  118.)   Others
had water service.  (Id.)  Some others had electric service nearby.  (R.  at
282.)  Some lots had none of these.

      Testimony by zoning administrator Blaylock was to the effect  that  he
had never said he would refuse a permit on all of the Parker  land.[11]   He
said that if it turned out that some parcels  had  what  was  needed  for  a
particular lot that he would issue the permit.  (R. at  362-63.)   The  only
evidence in the record suggested that  New  Harmony’s  zoning  administrator
was pretty accommodating:
      I listen and I’m very willing to take it to get a variance.   If  what
      the citizen is requesting does not meet the  ordinance,  I  give  them
      guidance the best of my knowledge how they can get around it  if  they
      need to get a variance, you know.  And it’s not up to  me  to  approve
      the variance.  I have nothing to do with that.


(R. at 354.)

      The vitality of this requirement was made plain in Penn  Central,  438
U.S. 104, a landmark decision in the  law  of  takings.   In  Penn  Central,
developers were denied the permits to construct a fifty-story  office  tower
above the historic Grand Central Terminal.  The  Supreme  Court  upheld  New
York City’s Landmarks Law and held that an unconstitutional taking  had  not
occurred.  The Court also noted:


      While the Commission’s actions in denying applications to construct an
      office building in  excess  of  50  stories  above  the  Terminal  may
      indicate that it will refuse to issue a certificate of appropriateness
      for any comparably sized structure, nothing the Commission has said or
      done suggests an intention to  prohibit  any  construction  above  the
      Terminal . . . . Since appellants have not  sought  approval  for  the
      construction of a smaller structure, we do not  know  that  appellants
      will be denied any use of  any  portion  of  the  airspace  above  the
      Terminal.


Id. at 136-37 (citations omitted).

      This Court applied the reasoning of Penn  Central  on  this  point  in
Town of Beverly Shores v. Bagnell, 590 N.E.2d 1059, 1064  (Ind.  1992).   We
do not know whether New Harmony would have denied  Parker  any  use  of  her
property since Parker did not seek approval for her plans.  See id.

      Based on the foregoing,  we  conclude  that  Parker  was  required  to
exhaust her administrative remedies before filing an action with  the  trial
court.  Thus, the trial court lacked subject matter jurisdiction  to  decide
whether refusal to issue permits constituted a taking.


                 IV.  Failure to Provide Municipal Utilities

      Finally, New Harmony asserts that the trial court erred in  concluding
that the Town was required to provide improvements to Parker’s property  and
in determining that  the  Town’s  plan  for  providing  these  services  was
inadequate.

      In issuing its judgment, the trial court made the following finding of
fact:  “Parker, prior to filing this action, made demand on the Town of  New
Harmony to fulfill its obligation to provide . . . services  required  under
Indiana’s statutes and the  Town  of  New  Harmony  refused  to  do  so  and
continues to refuse to provide said services.”  (R. at 119.)


      The evidence does not support this finding.  Certainly, the  Town  did
offer to provide utilities to Parker, as attorney Berger’s letter to her  on
the Town’s behalf demonstrated.  It  made  this  offer,  however,  with  the
stipulation that Parker would be responsible for a portion of  the  cost  of
providing these services.  The trial court concluded that the  Town  had  an
obligation to install these utilities on Parker’s land  at  the  expense  of
other taxpayers.

      Parker asserts that the Town’s refusal  to  provide  services  at  the
public expense “deprived her of economically viable use  of  her  property.”
(Appellee’s Br. at 18.)  This language is from the law  of  takings.   While
the trial court did not specifically label the  Town’s  failure  to  provide
Parker  with  an  adequate  plan  for  services  a  “taking,”  it  appointed
appraisers to assess damages under the eminent domain  statutes,  indicating
that it believed a taking occurred.  See Schuh v. State, 251 Ind. 403,  408,
241 N.E.2d 362, 364 (1968).

      There are two kinds of takings.  One involves seizing private land for
public use, like building a fire station.  The other sort of  taking  occurs
not  through  acquisition  of  title  but  through  regulation.    So-called
“regulatory takings” come in many forms.  They may consist, for example,  of
regulations that compel a property owner to suffer a  physical  invasion  of
his property, or they may consist of regulations that deny all  economically
beneficial or productive use of  the  land.   Board  of  Zoning  Appeals  v.
Leisz, 702 N.E.2d 1026, 1028-29 (Ind. 1998).


      The Supreme Court has described the Takings Clause as “designed to bar
Government from forcing some people alone to bear public burdens  which,  in
all fairness and justice, should be borne by the public as a  whole.”   Penn
Central, 438 U.S. at 123.  Deciding whether a taking occurred is an ad  hoc,
factual inquiry focusing on several factors:  the  economic  impact  of  the
regulation,   its    interference    with    reasonable    investment-backed
expectations, and the character of the governmental  action.   Kaiser  Aetna
v. United States, 444 U.S. 164, 175 (1979); Penn Central, 438 U.S. at 124.


      Parker had no reasonable investment-backed expectation  that  must  be
recognized or compensated under the Fifth Amendment.   Property  owners  are
charged with knowledge of ordinances that  affect  their  property.   Leisz,
702 N.E.2d at 1030.  When Parker purchased  her  property,  she  was  deemed
aware of the ordinance and she testified that she knew that  the  lots  were
not equipped with certain utilities.[12]  The  only  reasonable  expectation
was that the Town may, or may not, allow her to develop the property.

       The  character  of  the  governmental  action  points  in  the   same
direction, as it takes nothing away from Parker.  See id. at  1031.   Parker
contends that the Town has an obligation to provide municipal  utilities  to
her lots at no cost to her.  This is not the case.  Certain  services,  such
as fire and police protection,  have  traditionally  been  provided  to  all
citizens of a municipality, financed through property taxes.  Certain  other
services,  such  as  water,  sewer,   gas,   electric,   and   roads,   were
traditionally thought of as  proprietary  and  are  still  largely  provided
through assessments to the landowners of the  parcels  benefiting  from  the
installation of utilities.

      For example, with respect to sewer  service,  Ind.  Code  §  36-9-2-16
provides:   “A  unit  may  regulate  the  furnishing  of  the   service   of
collecting, processing, and disposing of waste substances  and  domestic  or
sanitary sewage.  This includes the power to fix the  price  to  be  charged
for that service.”  A municipality may also charge a fee for connections  to
the sewer based on the pro rata cost of  constructing  a  local  or  lateral
sewer sufficient to serve the property.  See Ind.  Code  Ann.  §  36-9-23-29
(West 1997).

      The same is true of new streets and roads.  Under Ind. Code §  36-9-2-
5, a municipal body has exclusive  control  over,  and  regulation  of,  its
streets.  See Town of Syracuse v. Abbs, 694 N.E.2d 284, 286 (Ind.  Ct.  App.
1998); Cason v. City of Lebanon,  153  Ind.  567,  572,  55  N.E.  768,  770
(1899).  With this control comes the power to  assess  property  owners  for
improvements upon or maintenance of streets.  See Ind. Code Ann. §  8-23-6-5
(West Supp. 1999) (“This chapter does  not  annul,  limit,  or  abridge  the
right of a city or town, either at its own expense  or  at  the  expense  of
property owners subject to assessment, to improve the  sidewalks  and  curbs
along a street . . . , to construct sewers and drains, or  to  construct  or
maintain a part of the roadway of the street not improved or  maintained  by
the [Department of Transportation].”) (emphasis added).

      Regarding water, Ind. Code § 36-9-2-14 states that a unit may regulate
and furnish water  to  the  public  and  establish,  maintain,  and  operate
waterworks.  With this power, we have long held, comes the power  to  assess
the properties  benefiting  from  such  service.   See  City  of  Angola  v.
Croxton, 185 Ind. 250, 112 N.E. 385 (1916).

      The reasoning behind the power of assessment was explained in  Baldwin
v. Moroney, 173 Ind. 574, 579, 91 N.E. 3, 5-6  (1910)  (internal  quotations
omitted) where we stated:
      Every one who acquires an interest in land takes  it  subject  to  the
      right of the sovereign to lay general taxes upon it and to impose upon
      it the burden of paying the  expenses  of  public  improvements  which
      confer upon the land a special  benefit.  .  .  .   Whoever  holds  an
      interest in the land  profits  by  the  appurtenance,  and  ought,  in
      justice, to be subjected to the lien which secures the assessment.

      Here,  the  Town  responded  appropriately  to  Parker’s  request  for
installation of utilities,  by  offering  to  provide  Parker  with  various
pieces of beneficial infrastructure under  the  condition  that  she  assume
responsibility for some of the cost of  the  improvements  pursuant  to  the
Barrett Law, Ind.  Code  §  36-9-36-1.[13]   This  plan  proposed  to  bring
appropriate utilities to Parker’s property without requiring  users  to  pay
the bill.

      We conclude that the trial court erred in finding the Town’s  proposed
improvement plan inadequate and in appointing appraisers to assess  damages.






                                 Conclusion


      The trial court erred in determining that Parker’s property  had  been
taken when the Town placed a chain across a street  bordering  her  property
and  when  the  Town’s  zoning  administrator  said  he  could   not   issue
improvement  permits  for  Parker’s  property.   The  Town  did  not  “take”
Parker’s land when it asked her to pay a share  of  the  cost  of  extending
additional utilities.

      Accordingly, we reverse the trial court.




Dickson, Sullivan, Boehm, and Rucker, JJ., concur.
-----------------------
[1] Although the lots at issue were technically owned by Shirley Parker,
her husband Don Parker, a contractor, played an active role in the
proceedings involving this property.  It was Mr. Parker who requested that
municipal utilities and the like be provided to the property in response to
an interest regarding development in the area.  (R. at 375, 400, 401-02.)
[2] Parker filed an amended complaint on August 20, 1996.  (R. at 47.)
[3] Not long ago, we examined certain aspects of an analogous clause in the
Indiana Constitution.  Bayh v. Sonnenburg, 573 N.E.2d 398 (Ind. 1991).
[4] See Note, The Origins and Original Significance of the Just
Compensation Clause of the Fifth Amendment, 94 Yale L.J. 694 (1985).
[5] New Harmony initially asserts that Parker’s claims were barred by
laches.  (Appellant’s Br. at 14.)  The equitable doctrine of laches
consists of three elements:  inexcusable delay in asserting a right,
implied waiver from knowing acquiescence in existing conditions, and
circumstances resulting in prejudice to the adverse party.  In re Geisler,
614 N.E.2d 939, 940 (Ind. 1993).  The mere passage of time is insufficient
to establish laches, rather, it must be shown that the delay was
unreasonable.  Habig v. Bruning, 613 N.E.2d 61, 65 (Ind. Ct. App. 1993),
trans. denied.

      Here, the Town claims that there was unreasonable delay because
Parker purchased her property in 1982 and 1990, yet failed to bring an
action against the Town until 1996.  The record reveals, however, that in
1975 the Town began pursuing the issue of providing municipal services to
Parker’s lots and began seeking funds to that effect.  (R. at 274-83.)
Between 1975 and the present time, the Town has extended water services to
some of the lots, (R. at 223, 361, 413-14), and constructed storm sewers
for other lots, (R. at 287).  It appears that up until the time Parker
filed her complaint, there was still a dispute about whether the Town was
going to provide additional services.  (R. at 353-54.)  Therefore, Parker’s
delay in filing a complaint was not unreasonable, and the facts do not
suggest that she acquiesced in the Town’s failure to provide services.
Moreover, the Town does not demonstrate prejudice.  Parker’s claim is not
barred by laches.
[6] Moreover, Parker does not dispute on any grounds that the Town had
important reasons for blocking access from South Street.  According to
Ralph Hardy, a city councilman, members of the community were complaining
that cars and “four-wheelers” were driving onto Parker’s property where
South Street became unpaved and were “tearing up the dirt and disturbing
the neighbors.”  (R. at 396.)
[7] Parker has insisted that Blaylock’s position that he could not issue a
permit for development on land that did not meet the legal requirements for
development was a “moratorium.”  We think it is largely akin to what might
happen if a lawyer asked the county clerk whether he would accept a lawsuit
for filing without payment of the legal filing fee and the clerk answered,
“I can’t do that.”
[8] Although the Town previously failed to assert lack of subject matter
jurisdiction, this claim cannot be waived.  Where lack of subject matter
jurisdiction in the original tribunal is apparent from the record, it is
the duty of the reviewing court to raise and determine the issue sua
sponte.  Board of Comm’rs v. Jewett, 184 Ind. 63, 67, 110 N.E. 553, 555
(1915).
[9] This Section states:

      A board of zoning appeals shall hear and determine appeals from and
review:

      1) any order, requirement, decision, or determination made by an
         administrative official, hearing officer, or staff member under
         the zoning ordinance;

      2) any order, requirement, decision, or determination made by an
         administrative board or other body except a plan commission in
         relation to the enforcement of the zoning ordinance; . . . .

Ind. Code Ann. § 36-7-4-918.1 (West 1997).


[10] The nature of Parker’s plans was open to doubt even at trial, where
the following colloquy occurred during the cross-examination of Don Parker
about possible placement of a trailer on Parker’s property:

      Q. Do you remember which lot it was that this discussion about the
         trailer park took place?


     A.  No I don’t.


           Mr. Shively:  Objection.  He didn’t – there wasn’t a discussion
           about a trailer park.


           Mr. Bodkin:  Sorry.  I’ll withdraw that.


           Mr. Shively:  There was a discussion about one unit.


      Q.  Do you recall which lot it was the discussion about the house
          trailer took place?


      A. No, I do not.

(R. at 359.)




[11] “I didn’t say all sixteen lots.  That’s what they took it to say.”
(R. at 353.)
[12] At trial, the following colloquy occurred:

      Q. When you acquired these parcels, Mrs. Parker, did you go look at
         them before you paid the money to get the deeds?
      A. I certainly did.
      Q. And you were aware that at the time that you acquired lots eleven
         and seventeen and half of ten in 1982 that there were no paved
         streets there.
      A. Right.
      Q. No sidewalks.
      A. Right.
      Q. No water.
      A. Right.
      Q. No gas.
      A. Right.
      Q. No electric.
      A. Right.
      Q. No street lights.
      A. Right.  When I purchased –
      Q. Yes.
      A. May I answer?
      Q. When you purchased the lots.
      A. When I purchased the lots there was also two more lots that had a
         house on it, and I bought it for the house and the lots.
      Q. I see.  All right.  That would’ve been – what street was the house
         on?
      A. That house was on Steam Mill.
      Q. I see.  And Steam Mill is a paved street –
      A. Right.
      Q. – that has all municipal facilities there.
      A. Uh-huh.
      Q. And when you acquired lots one through eight in 1990 –
      A. Right.
      Q. – you went and looked at the ground.
      A. Sure.
      Q. And you were aware at the time you bought the lots that there was
         no municipal facilities available to those lots.
      A. Right.

(R. at 227-29.)
[13] The “Barrett Law,” originally enacted in 1889, provides the statutory
process by which a municipality may provide or require public improvements.
 Ind. Code Ann. § 36-9-36-1, - 67 (West 1997).  Concerning the Barrett Law,
this Court has stated:

      It was the purpose, spirit, and language of the [Barrett Law] to
      enable the city to require improvements, . . . to dictate the
      character of the improvements; to contract for the improvements; to
      enforce the payment of benefits by the property owners, to aid the
      property-owner in deferring such payments by issuing the bonds of the
      city, from the proceeds sales of which to pay the contractor, and from
      the annual payments of the property owner upon his assessments to meet
      the maturing bonds.


Porter v. City of Tipton, 141 Ind. 347, 350, 40 N.E. 802, 803 (1895).

      This statute covers the following improvements by a municipality:
sidewalks, curbs, streets, alleys, paved public places, lighting, and a
water main extension for a municipality that owns and operates a water
utility.  Ind. Code Ann. § 36-9-36-2(b) (West 1997).

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