City Of Eastlake v. Forest City Enterprises, Inc.

426 U.S. 668 (1976)

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Nature of the Case

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Facts

A real estate developer (P) bought land in the City of Eastlake (D) which had been zoned for light industrial use. P applied to the City Planning Commission for a zoning change to allow P to construct a high-rise apartment building on the land. The Planning Commission recommended the change to the City Council, which under existing regulations, had the power to approve or reject the change. While the matter was pending before the City Council, the voters of the city amended the City Charter to require that any changes in land use be approved by a 55% vote by referendum. The City Council approved the reclassification. P then applied to the Planning Commission for a 'parking and yard' permit for the building. The application was rejected because the reclassification of the land had not yet been submitted to the voters for ratification. P filed an action in state court, seeking a declaration that the charter provision was an unconstitutional delegation of legislative power. While the case was pending, the reclassification was submitted for ratification but failed to get the 55% approval required under the charter amendment. The court sustained the charter provision. The Ohio State Supreme Court reversed, holding that zoning is a legislative function, and that a referendum requirement which lacks standards to guide the decision of the voters permits the police power to be exercised in an arbitrary and capricious manner.