Michigan Court of Appeals Affirms Power of Township to Prevent Development of Large Solar Array Through Moratorium

The Michigan Court of Appeals recently affirmed that interim zoning ordinances are not subject to petitions for referendum under the Michigan Zoning Enabling Act (“MZEA”), meaning the township had the power to impose a one-year moratorium on development of a large solar array on property zoned agricultural on an interim basis, while it made preparations to enact a full and complete zoning ordinance.  The Court rejected the arguments of the solar array company (“plaintiff”) to the contrary.

The Court of Appeals also affirmed the trial court’s denial of the plaintiff’s request for a preliminary injunction, finding the plaintiff had not met its burden of proof to show the need for a preliminary injunction, since economic injuries typically can be remedied by an award of money damages.  The Court also rejected the plaintiff’s argument of irreparable harm because the plaintiff purchased its property interest knowing the County zoning ordinance in effect did not then deal with solar energy systems.  The plaintiff had approached the County and received favorable assurances the County land development code would be amended to permit the solar array project, but the plaintiff failed to consider the power of the township to enact its own development moratorium while it developed its own zoning requirements.

The Court did, however, reverse the trial court’s dismissal of the Complaint on two counts, one seeking a declaratory judgment for improper imposition of a moratorium on projects within the township, and a second count alleging that the interim zoning ordinance imposed illegal exclusionary zoning.  As to these counts, the Court of Appeals found the trial court’s failure to inform the plaintiff it was contemplating summary disposition of those counts was a procedural error requiring reversal, since these counts were dismissed without notice and a hearing. 

Key Takeaway

The takeaway is to consider all aspects of the legal landscape before moving ahead with development plans that may not be received the same way at the County level than at the City or township level.

The full text of the opinion can be found at:
https://law.justia.com/cases/michigan/court-of-appeals-published/2021/352910.html