In Michigan the governmental regulation of land use is largely achieved through the Michigan Zoning Enabling Act, (“MZEA”), MCL 125.3101, et seq. The MZEA allows local municipalities to adopt zoning ordinances which regulate the physical appearance and use of property within their jurisdiction. For decades zoning ordinances adopted pursuant to the MZEA or its predecessors focused primarily on regulating the use of property, and not necessarily on the physical form of the property and its buildings. Over the past two decades there has been a slow and gradual shift from use-based zoning to zoning based on the physical form of property, especially in downtown areas.
The relationship between municipalities and land developers is often one of compromise, with each attempting to find some middle-ground in order to move forward on a particular project. In many instances, however, the municipality and developer are unable to reach such a compromise and the parties find that their positions are irreconcilable. In such instances the developer may believe that their only next viable option is to seek redress in the court system. But before doing so, it is important that a developer recognize the limitations on judicial review of land use decisions by a municipality. Specifically, if a developer does not satisfy the “rule of finality,” the developer may find that they have no right to seek a judicial remedy at all. The rule of finality helps to ensure that a municipality is given an opportunity to make a final decision on the matter before it. Without such a final opportunity, judicial review is not available.
At some point in their lives, most adults have signed a lease agreement, whether it be the leasing of an automobile, an apartment on campus while attending college or renting a home. Since most of these leases are standard forms offered on a “take it or leave it” basis by the lessor or landlord, negotiating the base rent and term of the lease is typically the main and only focus for the lessee.
When a business enters into a commercial lease however, the lease is usually signed by the business entity itself, which is typically organized as a corporation or limited liability company. By forming a corporation or LLC, the owners of a business can shield themselves from personal liability for the debts of the business in most situations. Accordingly, when a business entity signs a commercial lease to rent space in a commercial building, the entity signing the lease, as opposed to the owners of the business entity, is the one legally responsible for making the payments under the lease.