By Dave Davies

In a move that stunned dozens of community activists in attendance, City Council yesterday narrowly approved a bill effectively barring citywide citizens' groups from court action on local zoning disputes.

Councilman Frank DiCicco's bill was targeted in part at anti-billboard activists who had sued to remove signs in a variety of communities.

"This is a city of neighborhoods, and that's what this bill is all about," DiCicco said. "Letting people in communities make decisions affecting the quality of life in their neighborhoods."

But the measure was opposed by scores of community organizations who preferred the existing Zoning Code provision allowing "any taxpayer" to take a zoning board decision to court.

DiCicco's bill would limit court appeals to those directly affected by the zoning issue.

The key actor in the billboard cases is the Society Created to Remove Urban Blight(SCRUB), which has sought to enforce a tough outdoor signage law passed by Council in 1991.

City Councilman David Cohen called the bill "a disgrace."

"What a travesty of justice," Cohen said, "to say developers have all the rights and citizens have none . . . Developers from outside the city, from anywhere in the world could come in and dictate to local residents."

"I wish we could get developers in from all over the world," DiCicco countered, "to make this a better place, create jobs and opportunities."

Mary Tracy of SCRUB said local residents often join her fights, but that's less likely when billboards go up along railways or industrial areas."

The bill passed, 9-8, and goes to Mayor Street for action.

"We believe there's still hope," Tracy said yesterday. "We have a leader in the mayor, and we're going to ask him to veto this bill."

Administration representatives testified favorably on the bill last spring. Street's secretary for external affairs, George Burrell, said yesterday the mayor will study the measure.