CMR D.N. Corp. v. City of Philadelphia

In 1987, Waterfront purchased 5.3 acres in Philadelphia’s Central Riverfront District, zoned G-2 industrial. In exchange for rezoning to C-4 commercial, for a mixed-use, high-rise project, Waterfront agreed to restrictive covenants. When financing became possible in 2005, Waterfront obtained a permit for demolishing existing structures and constructing a 28-story apartment tower and entered into a financing agreement with a construction start date of February 2006. Waterfront had to postpone construction. In March 2006, the city extended to the site a zoning overlay with a height restriction of 65 feet and a width restriction of 70 feet. Waterfront alleged mistake; that the area councilman admitted that inclusion of the site was a mistake; and that Mayor Street stated that he would not have signed it had he known that the height restriction applied to the site. Waterfront unsuccessfully sought repeal, but never applied for a permit under the ordinance and did not seek a variance. Waterfront filed suit. In 2010 the city rescinded application of the height restriction. The district court held that the rescission mooted federal constitutional claims, denied Waterfront’s motion to amend to attack the width restriction, and granted the city summary judgment on all other claims. The Third Circuit affirmed.

CMR D.N. Corp. v. City of Philadelphia