Schenck v. City of Hudson

The City of Hudson (Hudson) (defendant) established a comprehensive plan (the plan). The goals set forth in the plan included managing Hudson’s growth rate so that the rate did not exceed the capacity of the infrastructure, avoiding the need for new infrastructure so that Hudson could meet current needs, and protecting Hudson’s unique character. Chapter 1207, one of the ordinances passed by Hudson to implement the plan, required applicants for zoning certificates to construct a residential-dwelling unit in order to first receive a residential-development allotment. The allotments were distributed twice a year by lottery, but 80 percent of each distribution was reserved for a priority development pool, which included lots that had been created and had received plat approval before the ordinance’s effective date. The ordinance contained a provision for landowners who had not received an allotment after one year to petition the Hudson City Council for hardship. Mark Schenck and other landowners (plaintiffs) all qualified for the priority development pool, because the plaintiffs’ lots had received plat approval before the ordinance’s effective date. However, because all 84 applicants in the plaintiffs’ distribution were priority applicants, the distribution was done by lottery. Subsequently, the plaintiffs brought suit, seeking a permanent injunction against the enforcement of Chapter 1207. The district court granted a preliminary injunction, and Hudson appealed.