DILLON, Judge.
The subject matter of this appeal is a proposed residential subdivision being developed by Farmbound Holdings, LLC (the "Developer"), which was approved by the City of Asheville's Planning and Zoning Commission (the "Commission"). Petitioners are individuals who reside near the proposed development. Petitioners (the "Neighbors") appeal from the trial court's order dismissing their action against the City of Asheville ("the City") and the Developer. For the following reasons, we reverse the order of the trial court and remand the matter to the trial court for remand to the Commission for further proceedings.
In May of 2014, the Developer submitted an application to the City to develop a major residential subdivision known as the Brynn Subdivision. In its application, the Developer requested that the subdivision be approved with a modification which would allow for the city streets within the proposed subdivision to be narrower in width than otherwise required by City regulations.
In October of 2014, the Commission convened a public meeting and heard a presentation by the City urban planner explaining the proposed project as well as the report of the City's Technical Review Committee recommending that the subdivision be approved with the modification. The Commission also allowed for public comment from concerned citizens who opposed approval, including the Neighbors. Ultimately, though, the Commission voted to approve the Brynn Subdivision preliminary plat, five to one (5-1), with the requested street-width modification.
In December of 2014, the Neighbors filed a petition for certiorari in Buncombe County Superior Court, seeking review of the Commission's decision. Respondents each filed an answer and moved for dismissal.
On 24 April 2015, after a hearing on the matter, the trial court entered its written order granting Respondents' motions to dismiss. The Neighbors timely filed written notice of appeal to our Court from the trial court's dismissal.
In their sole argument on appeal, the Neighbors contend that the trial court erred
Our General Assembly has empowered municipalities to regulate the subdivisions within their territorial jurisdiction. River Birch Assocs. v. City of Raleigh, 326 N.C. 100, 107, 388 S.E.2d 538, 542 (1990). Specifically, N.C. Gen.Stat. § 160A-373 allows a municipality to exercise its power to approve subdivisions through either "(1) [t]he city council, (2) [t]he city council on recommendation of a designated body, or (3) [a] designated planning board, technical review committee, or other designated body or staff person." N.C. Gen.Stat. § 160A-373 (2014).
With regard to a proposed subdivision requiring the extension of public and private streets, Asheville has elected the third option provided under our General Statutes. Specifically, Asheville's City Code of Ordinances delegates the power to approve a proposed subdivision which requires the extension of a public or private street to the Commission.
Our Supreme Court has observed that the decision by a local government to approve or deny a particular land use is typically characterized as being one of four types — legislative, advisory, quasi-judicial, or administrative. See County of Lancaster v. Mecklenburg, 334 N.C. 496, 507, 434 S.E.2d 604, 612 (1993). As in County of Lancaster, the question in the present case is whether the Commission's approval of the subdivision plat is "properly characterized as a quasi-judicial decision or as an administrative [ ] decision." Id.
The level of due process required to be afforded by the Commission in deciding a land use request depends upon whether its decision process is quasi-judicial or administrative in nature. See, e.g., Sanco of Wilmington Serv. Corp. v. New Hanover County, 166 N.C. App. 471, 475, 601 S.E.2d 889, 892-93 (2004) (comparing administrative and quasi-judicial land use decisions). Specifically, our Supreme Court has recognized, "[d]ue process requirements mandate that certain quasi-judicial [land use] decisions comply with all fair trial standards when they are made." County of Lancaster, 334 N.C. at 506, 434 S.E.2d at 611 (emphasis added). The Supreme Court has described these "fair trial standards" as embracing "an evidentiary hearing with the right of the parties to offer evidence; cross-examine adverse witnesses; inspect documents; have sworn testimony; and have written findings of fact supported by competent, substantial, and material evidence." Id. at 507-08, 434 S.E.2d at 612. In contrast, an administrative land use decision does not require this level of due process and may be made "without a hearing at all[.]" Id. at 508, 434 S.E.2d at 612.
By contrast, administrative decisions are "routine" and "nondiscretionary," and may be delegated to a single individual. County of Lancaster, 334 N.C. at 507, 434 S.E.2d at 612. Moreover, while the decision-maker "may well engage in some fact finding [in making an administrative decision] ... this involves determining objective facts that do not involve an element of discretion." Id. (internal marks and citation omitted).
This is not to say that every decision to allow a modification in a subdivision proposal is quasi-judicial in nature. That is, the decision to allow a modification may be administrative in nature if the decision process does not involve the exercise of discretion but rather involves the application of specific, neutral, and objective criteria as set out in the municipality's governing code. See id. at 510, 434 S.E.2d at 614 (explaining that a decision which requires the application of objective standards is administrative). However, where the decision requires the exercise of discretion in applying generally stated standards, the decision is of a quasi-judicial nature. As our General Assembly has provided,
N.C. Gen.Stat. § 160A-377(c) (2014) (emphasis added).
Asheville's Code grants the Commission the authority to allow modifications to the minimum subdivision standards required under the Code. Asheville City Code of Ordinances § 7-5-8(c)(1) (2014). Specifically, the Code states that such modifications may be allowed in cases of "physical hardship," defining cases of physical hardship as
Id. § 7-5-8(c)(2). In the event of a case of substantial hardship and the grant of a modification, the Code empowers the Commission to impose such conditions on the property owner or developer "as will ensure the purposes of the standards or requirements waived." Id. § 7-5-8(c)(3).
Asheville's Code, however, also provides that the Commission's process in deciding whether to approve a preliminary plat "shall be ministerial in nature," without making any separate provision for those cases which involve approving a modification due to a physical hardship. Id. § 7-5-8(a)(3)(d)(1). Instead, the Code simply states that the Commission must schedule a public hearing to receive comments regarding a proposed project upon receipt of a major subdivision
In the present case, the record of the proceedings before the Commission reveals that the Commission acted in a ministerial/administrative capacity, believing that it did not have the authority to reject the plat with the modification where City staff had already recommended approval. That is, it appears that the Commission was under the impression that modifications pursuant to § 7-5-8(c) of the City Code were administrative rather than quasi-judicial in nature, as the text of § 7-5-8(a)(3)(d)(1) of the City Code would seem to dictate. Specifically, the record of the Commission's hearing demonstrates as follows: Existing City standards required a minimum forty-five (45) foot right-of-way for certain new streets, but the proposed subdivision's streets had only a twenty-five (25) foot right-of-way. Nevertheless, the Commission was under the impression that the requested modification was part of the Technical Review Committee's initial review; that there had been compliance with the process in place for an applicant to request such a modification; that City staff had recommended approval of the modification or alternately had already approved the modification; and that the matter had, therefore, already been resolved prior to the Commission's approval of the plat, which was merely ministerial, as required by the Code.
Notwithstanding the provisions of the Asheville Code suggesting otherwise, the decision regarding the Developer's proposed modification required a determination of whether the Developer would suffer "physical hardship" if the modification was not allowed. See id. § 7-5-8(c)(2). We hold that this determination required an exercise of discretion in the application of this generally stated standard, rendering the Commission's decision quasi-judicial in nature. See N.C. Gen.Stat. § 160A-377(c) (2014). Our conclusion is in spite of the language in Asheville's Code stating that review before the Commission "shall be ministerial." See Asheville City Code of Ordinances § 7-5-8(a)(3)(d)(1) (2014). Indeed, our General Assembly has provided that "an ordinance shall be deemed to authorize a quasi-judicial decision if the... planning board is authorized to decide whether to approve or deny the plat based... on whether the application complies with one or more generally stated standards." N.C. Gen.Stat. § 160A-377(c) (2014).
Here, determining the presence of "physical hardship" as defined in § 7-5-8(c)(2) of Asheville's Code required the exercise of judgment and discretion in applying the relevant "generally stated standard[ ][.]" See id. That is, the decision did not require the mere application of specific, neutral, and objective criteria, which would render the decision administrative in nature. Therefore, we hold that the Commission's approval of the Developer's plat with the street-width modification was a quasi-judicial decision. In approving the plat, the Commission was required to determine whether the Developer would suffer "physical hardship" without the modification, a decision which required the exercise of judgment and discretion in applying this general standard.
Having found that the Commission's decision to approve the proposed subdivision was quasi-judicial in nature, we hold that the trial court erred in dismissing the Neighbor's petition for certiorari, and remand the matter to the trial court for further remand to the Commission so that a hearing with "fair trial standards" can be had.
While review of quasi-judicial decisions by local land use authorities is first to superior court and in the nature of certiorari, see id. § 153A-336(a); id. § 160A-377(a); id. § 153A-349(a); id. §§ 160A-393(a), (b)(3), our Court reviews the decisions of trial courts in such cases to determine whether (1) the trial court's review was within the appropriate scope of review and (2) whether the review was correct, see Fehrenbacher v. City of Durham, ___ N.C.App. ___, ___, 768 S.E.2d 186, 191 (2015). Moreover, the nature of the decision by the local authority, not the label assigned to it, controls. Guilford Fin. Servs., LLC v. City of Brevard, 150 N.C. App. 1, 6, 563 S.E.2d 27, 31 (2002), rev'd on other grounds, 356 N.C. 655, 576 S.E.2d 325 (2003) (per curiam).
Our Supreme Court has held that the appropriate scope of review on a petition for certiorari from a decision by a local governmental authority regarding otherwise non-compliant land use includes the following issues where the local authority is acting in a quasi-judicial capacity:
Coastal Ready-Mix Concrete Co., Inc. v. Bd. of Comm'rs of Town of Nags Head, 299 N.C. 620, 626, 265 S.E.2d 379, 383 (1980).
Under the whole record test, which our Court has held is one of the standards of review applicable to these decisions, if the petitioner is alleging that the decision by the local authority was arbitrary and capricious, its findings of fact are binding on appeal if they are supported by substantial, competent evidence, provided such evidence was presented to the local authority before the decision was made. Blue Ridge Co., L.L.C. v. Town of Pineville, 188 N.C. App. 466, 469, 655 S.E.2d 843, 846 (2008). However, where the petitioner is alleging that the decision was based on legal error, de novo review, the other relevant standard, is applicable. Id. at 469, 655 S.E.2d at 845-46. Our Court has held that "[t]he superior court may apply both standards of review if required, but the standards should be applied separately to discrete issues." Id. at 469-70, 655 S.E.2d at 846.
In the present case, the Neighbors alleged in their petition for certiorari, which they labeled in the alternative as a complaint seeking a declaratory judgment and injunctive relief, that the Commission failed to comply with the due process requirements for quasi-judicial proceedings, alleging additionally that in doing so the Commission acted arbitrarily and capriciously. Therefore, under Blue Ridge Co., the allegations in the Neighbors' petition required the trial court to review the Commission's decision under both the de novo and whole record standards. Id. at 469-70, 655 S.E.2d at 845-46. The trial court, however, did neither, apparently simply agreeing with the Respondents' position in their answers and motions to dismiss, ordering that the Neighbors' petition be dismissed without addressing any of the relevant issues set out by our Supreme Court in Coastal Ready-Mix Concrete, or
In any event, we hold that the trial court on remand shall remand the case to the Commission to conduct further proceedings which provide the Neighbors with the level of due process required for quasi-judicial proceedings before that Commission.
For the reasons stated herein, we reverse the order of the trial court and remand the matter for further proceedings.
REVERSED AND REMANDED.
Judges BRYANT and ZACHARY concur.