Posted by: Patricia Salkin | April 5, 2010

Rezoning of Property from Commercial to Residential Is Not a Taking Where Plaintiff Fails to Demonstrate Substantial Interference with Investment-Backed Expectations

Gilmour Realty, Inc. bought two adjoining lots directly north of its existing office for purposes of expanding its operation. Before purchasing the lots, the city verified that the property was zoned U-4 which permitted commercial use. In March 2003, the city council approved a site plan for conversion of the properties for office use. However in March 2004, upon recommendation of the zoning commission, the City had rezoned the property from commercial to residential.  Prior to the rezoning, Gilmour had moved from its office because it needed more space and had sold its properties by the end of 2004. Gilmour sought declaratory and injunctive relief to prevent the rezoning. In January 2009, the court of appeals granted summary judgment to the city. The state’s highest court affirmed, concluding that the evidence established the rezoning had little or no effect on Gilmour and did not substantially interfere with Gilmour’s distinct investment-backed expectations. Gilmour had vacated and relocated its business before the rezoning became effective.                                   

Gilmour Realty, Inc. v. City of Mayfield Heights, 910 N.E.2d 455 (Ohio June 24, 2009), Reconsid. Denied, 912 N.E.2d 110 (Ohio Aug 26, 2009) 

The opinion can be accessed at: http://www.supremecourt.ohio.gov/rod/docs/pdf/0/2009/2009-ohio-2871.pdf


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