Diversified Holdings, Llpv.City Of Suwanee
Diversified Holdings challenged Suwanee’s refusal to rezone approximately 30 acres of undeveloped property and argued that the existing zoning was unconstitutional as applied. The Supreme Court of Georgia first held that a local government’s rezoning decision is an administrative adjudication subject to discretionary appellate review, not a direct appeal. Because Diversified had properly obtained discretionary review, the court reached the merits of the zoning challenge. It held that the City’s denial was not arbitrary or capricious and that Diversified had not shown the clear and convincing substantial detriment required to invalidate the existing classification on due-process grounds. The court emphasized that the relevant property value is the value under its current zoning, not the greater value it might have after rezoning. The court affirmed. A special concurrence questioned whether Georgia’s constitutional just-compensation protection should be treated as coextensive with the federal Takings Clause, but that issue was not presented for decision.
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