City of Okoboji v. Parks

A lakefront property was zoned residential but was historically operated as a marina pursuant to special-use permits allowing nonconforming use. The Supreme Court previously held that while the use of the property as a marina was lawful under the special-use permits, the permits did not allow an expansion of use that included on-premises consumption of alcohol with live entertainment, karaoke, and full-moon parties. The owner of the property subsequently sought to operate a bar on a structure called the Fish House Lounge, which was moored to the marina’s seawall but was capable of getting underway in the lake. Fish House had a liquor license from the State. The district court found the arrangement amounted to a nonconforming use of the property in violation of the City’s zoning regulations and entered an injunction (1) prohibiting the use of the marina property to provide access to or parking for the bar and to provide other services for the bar; and (2) prohibiting the property owner from serving alcohol on any structure moored to the premises. The Supreme Court affirmed but directed the district court to modify its injunction to prohibit nonaccessory activities solely on the land within the geographic boundaries of the City.

City of Okoboji v. Parks