Parking Systems, Inc. v. Kansas City Downtown Redevelopment Corp.

Decision Date16 December 1974
Docket NumberNo. 2,No. 57640,57640,2
PartiesPARKING SYSTEMS, INC., et al., Appellants, v. KANSAS CITY DOWNTOWN REDEVELOPMENT CORPORATION, et al., Respondents
CourtMissouri Supreme Court

Alan K. Benjamin, Bagby, Benjamin & Arnold, Kansas City, for respondent Kansas City Downtown Redevelopment Corp.

Aaron A. Wilson, City Counselor, Richard N. Ward, Associate City Counselor, Kansas City, for respondent Kansas City, Missouri.

Sheffrey, Ryder, Skeer, Krigel & Rose by Leonard Rose, Kansas City, for appellants Parking Systems, Inc., Mutual Auto Parks, Inc., Harry A. Rubin, Lavetta Rubin, Marsha Rubin, Robert D. Rubin, Main Street Investment Company, Inc. and Meldon L. Glenn.

Allan J. Fanning, Kansas City, for appellant Mary Tyler.

Morrison, Hecker, Cozad, Morrison & Curtis by Martin J. Purcell, Kansas City, for appellants Carl Bilicke, Joan De Ronlet Rageneau, Nancy Ann Schmoele Schmitz, Albert Clay Bilicke, Lucienne Bilicke, Mary Margaret Carpenter and Lewis M. Brodnax.

Morris, King, Stamper & Bold by J. Harlan Stamper, Kansas City, for George H. Weyer, Inc.

STOCKARD, Commissioner.

The Kansas City Downtown Redevelopment Corporation (hereafter referred to as 'Redevelopment Corporation') was formed pursuant to and under the authority of Chapter 353 (all statutory references are to RSMo 1969, V.A.M.S.). On April 30, 1969, it filed an application, pursuant to Chapter 36 of the General Ordinances of Kansas City, for approval of a redevelopment plan, identified and referred to as the 'Crosstown Center Plan.' On March 26, 1970, the City Council of Kansas City enacted Comittee Substitute Ordinance 37566 (hereafter referred to as 'Ordinance 37566') approving Stages I and II of that application, and authorizing the City to enter into a contract with the Redevelopment Corporation to carry out the clearing, redevelopment, replanning and rehabilitation proposed in said Stages I and II.

In a report of the City Planning Commission to the City Council, Stages I and II were described in general terms as follows:

First Stage. A multi-story center with 600,000 to 800,000 square feet of floor space to be located in the block between 13th Street and Crosstown Freeway from Main Street to Grand Avenue. Multi-level garages for parking up to 5,000 cars to be provided on several levels under the retail center. Proposed start 1969--1970 with completion in 1979 and possibly as early as 1975.

Second Stage. An entertainment center containing theaters, restaurants, related recreation facilities and speciality shops.

The development will be in the area west of Main Street from 13th Street to the Crosstown Freeway. Proposed starting date 1970. Completion 1975.

Two suits were filed in the Circuit Court of Jackson County, one with 15 plaintiffs and the other with five plaintiffs. The two suits were consolidated in the trial court. The prayer was that the court declare: (1) that Chapter 353 RSMo 1969, V.A.M.S., and more particularly §§ 353.130 and 353.140 thereof, and Chapter 35, revised Ordinances of Kansas City, and more particularly §§ 36.3, 36.23 and 36.24 thereof are contrary to the Constitution of Missouri and in violation of the Constitution of the United States; (2) that Ordinance 37566, (a) is contrary to the statutes and the Constitutions of Missouri and of the United States, (b) contrary to the public policy of this State, and (c) is invalid because in passing the ordinance the City Council acted capriciously and arbitrarily, and without sufficient evidence; and (3) that all are, therefore, null and void. Plaintiffs also prayed that the court declare that 'the redevelopment area is not blighted,' and that the Redevelopment Corporation did not submit the 'financial proof required by Ordinance 36.7,' and for that reason Ordinance 37566 and the contract between the City and the Redevelopment Corporation are void, and further, that the Redevelopment Corporation and the City be enjoined from proceeding with the redevelopment project. We note that this prayer for relief is substantially the same as that in the petition in Annbar Associates v. West Side Redevelopment Corporation, 397 S.W.2d 635 (Mo. banc 1965), but that appellants assert that 'None of the issues raised in (this) case were ruled in the Annbar case.'

The case was submitted on the pleadings, a stipulation of facts with numerous exhibits, oral testimony, and exhibits consisting of depositions and some documentary evidence. The trial court entered detailed findings of fact and conclusions of law, and entered judgment for defendants. Plaintiffs have appealed. We affirm.

In Annbar Associates v. West Side Redevelopment Corporation, 397 S.W.2d 635 (Mo. banc 1965), it was held that Chapter 353 was constitutional. In the opinion in that case this court set forth a detailed statement of the changes in conditions which brought about the need for 'The Urban Redevelopment Corporations Law,' which is Chapter 353.

Appellants' first point is that the trial court erred 'in failing to find that the legislative determination in * * * Ordinance 37566 that the area of the redevelopment project was blighted was not supported by any evidence and/or was arbitrary and unreasonable in view of the facts that:

(a) Forty-nine percent of the property is open land, already cleared.

(b) Approximately 47% of the property is currently used as surface parking lots.

(c) No further clearance or development is required as to said 49% open land by the redevelopment Contract.

(d) Only approximately 28% of the buildings in the project area are deteriorated or substandard to a degree requiring clearance * * * and only approximately 14% of the entire area is occupied by such buildings.

(e) The structural deficiencies * * * are insufficient to qualify the project as blighted under the City's guidelines for determining blight.'

Appellants further assert that 'such arbitrary and unreasonable determination of blight cannot be the basis for condemnation * * * and any taking of property in the project area pursuant to the Ordinance and Contract * * * constitutes a taking of private property for private pur poses * * *.'

The term 'blighted area' is defined in § 353.020(2) as 'that portion of the city within which the legislative authority of such city determines that by reason of age, obsolescence, inadequate or outmoded design or physical deterioration, have become economic and social liabilities, and that such conditions are conducive to ill health, transmission of disease, crime or inability to pay reasonable taxes.' The Code of Kansas City, § 36.4 adopts the same definition for blighted area, and § 36.51 thereof provides that any application for approval of a development plan must be supported by factual evidence of blight as follows:

(1) Evidence must relate to area generally.

(2) Evidence must relate to each specific property proposed to be acquired.

(3) Evidence must be sufficient to show that by reason of age, obsolescence, inadequate or outmoded design or physical deterioration, the properties involved are either economic or social liability; or are conducive to ill health, transmission of disease, crime or inability to pay reasonable taxes.

(4) The City Plan Commission shall analyze the evidence submitted and, to the extent necessary, conduct its own study in order to prepare a report to the City Council either confirming the conditions of blight or setting out such exceptions or modifications as may be appropriate.

(5) Evidence must be sufficiently complete that City Council can make finding of blight as required by state statute.

The first question is the scope of our review. Both parties apparently agree that in making its determination of fact that the area is blighted, the City Council acted in its legislative capacity. Judicial review is limited to whether the legislative determination was arbitrary or was induced by fraud, collusion or bad faith, or whether the City exceeded its powers. State ex rel. Dalton v. Land Clearance For Redevelopment Authority of Kansas City, Missouri et al., 364 Mo. 974, 270 S.W.2d 44 (banc 1954); Annbar Associates, Inc. v. West Side Redevelopment Corporation, supra, 397 S.W.2d at p. 650; Graham v. Houlihan, 147 Conn. 321, 160 A.2d 745 (1960). Appellants do not contend that the City Council acted fraudulently or in bad faith, and in view of the ruling in Annbar Associates v. West Side Redevelopment Corporation, supra, they cannot with justification contend that it exceeded its powers, except on the basis of acting arbitrarily. This leaves only the question of whether the City Council acted arbitrarily and unreasonably in its determination that the area was blighted.

Appellants contend that the five circumstances previously set forth establish an arbitrary and unreasonable determination. Before considering this contention, certain basic and established principles should be set forth.

In order to have a blighted area it is not necessary that the total area, or any particular portion of it, constitute what is generally known as a slum. Levin v. Township Committee of Township of Bridgewater, New Jersey,57 N.J. 506, 274 A.2d 1, (banc 1971); Cannata v. City of New York, 11 N.Y.2d 210, 227 N.Y.S.2d 903, 182 N.E.2d 395 (1962). Also, an area may properly be determined to be blighted even though it may contain some vacant land or structures which are not themselves offensive. Cordova v. Tucson,16 Ariz.App. 447, 494 P.2d 52 (1972); Pet Car Products, Inc. v. Barnett,150 Conn. 42, 184 A.2d 797 (1962).

Appellants have set forth in their point, and have then argued, that by reason of the facts there set forth, the City Council could not reasonably have determined that the area was blighted. Certain observations are appropriate. They contend in their subpoint (c) that 49% of the property is open land and already cleared, and that the contract with the Redevelopment Corporation calls...

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