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City of Suwanee v. Settles Bridge Farm LLC

The plaintiff failed to exhaust its administrative remedies in an inverse condemnation action because it should have submitted a special use permit application to the City Planning Commission before initiating the action.

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Appellant City of Suwanee appeals the judgment rendered against it in an inverse condemnation action brought by Appellee Settles Bridge Farm, LLC. At the conclusion of a bench trial, the trial court found that the City of Suwanee’s enactment of an amendment to its zoning ordinance had effected an unconstitutional regulatory taking of a large parcel of land owned by Settles Bridge and awarded Settles Bridge more than $1.8 million in damages. The City appeals, contending, inter alia, that the case was unripe for judicial review due to Settles Bridge’s failure to exhaust its administrative remedies. We agree with the City that Settles Bridge should have exhausted its administrative remedies prior to initiating litigation in this matter, and we therefore reverse the judgment entered against the City.

In 2006 and 2007, Settles Bridge assembled approximately 36 acres of property in the Suwanee North area of the City of Suwanee. The Suwanee North area is located within an R-140 zoning district, comprised primarily of low-density residential development, and Settles Bridge intended to develop a residential subdivision on the property. In December 2006 Settles Bridge submitted a 41-lot subdivision plan to the City and ultimately obtained City approval of numerous variances for its anticipated development.

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