Nolan Brothers of Texas v City of Royal Oak

219 Mich App 611 (1997). Plaintiff, which had entered a contract to purchase property from MDOT located within the city of Royal Oak, sued the city alleging that it lacked authority to rezone property while MDOT (e.g., State of Michigan) still owned it. In 1991, while still owned by MDOT, the city rezoned the property from industrial to multiple-family residential in accordance with its master plan. In 1993, plaintiff entered into a contract with MDOT for the property with the intention of constructing a mini-warehouse facility, which was not a permissible use under the zoning ordinance. Plaintiff sought rezoning in 1993 and 1994 but was denied each time. A request for a use variance was also denied. Plaintiff thereafter sued the city, alleging that the city lacked jurisdiction to apply its zoning ordinance to state-owned land and its actions constituted an unlawful taking and violation of other constitutional rights. The Michigan Court of Appeals held that because there was no evidence that the legislature intended to preempt MDOT from the application of the zoning ordinance, particularly where MDOT had sold the land to a private party.