Berg Development Co. v. City of Missouri City, A2380

• Decision Date: 09 July 1980
• Docket Number: No. A2380,A2380
• Citation: 603 S.W.2d 273
• Parties: BERG DEVELOPMENT CO., Appellant, v. CITY OF MISSOURI CITY, Appellee. (14th Dist.)
• Court: Texas Court of Appeals

Page 273

603 S.W.2d 273

BERG DEVELOPMENT CO., Appellant, v. CITY OF MISSOURI CITY, Appellee.

No. A2380.

Court of Civil Appeals of Texas, Houston (14th Dist.).

July 9, 1980.

Rehearing Denied July 30, 1980.

B. Edward Williamson, Houston, for appellant.

William A. Olson, Jr., Olson & Olson, Houston, for appellee.

PAUL PRESSLER, Justice.

Appellants sought a Summary Judgment declaring appellee's Park Dedication Ordinance unconstitutional and appeals from its denial. We reverse and render.

Appellant is a real estate subdivider and developer with a project known as Meadowcreek, Section V located within appellee's city limits. Appellant was informed that its plat for this section would be approved upon compliance with the provisions of the Park Dedication Ordinance, No. 0-77-28. Missouri City is a home rule city, operating under a Charter adopted pursuant to Tex.Const. art. XI, § 5. On March 18, 1974, appellee adopted a comprehensive subdivision ordinance promulgating general rules and regulations governing plats and the subdivision of realty. This ordinance is authorized by Section 2.02 of appellee's Home Rule Charter and Tex.Rev.Civ.Stat.Ann. art. 974a (Vernon 1963). The Park Dedication Ordinance (hereinafter referred to as "the ordinance") was adopted in December 1977 as an amendment to such ordinance. It states in part:

5. The developer of a residential subdivision shall dedicate a site or sites within such subdivision to the City of Missouri City, Texas, for public park purposes at a location or locations and configuration approved by the Parks and Recreation Director and the City of Missouri City Planning Commission.

a. The amount of land to be dedicated for public park purposes shall be calculated on the basis of one-half acre of park land for every 150 persons in a residential subdivision. The number of persons in a residential subdivision shall be determined at the rate of 3.5 persons per single-family residential lot or 2.4 persons per multi-family living unit. In making such calculation, the number of multi-family living units shall be the maximum number allowed by the ordinances of the City of Missouri City, Texas.

b. The City Council of the City of Missouri City in its discretion may elect to accept money in lieu of the dedication of park land. The amount of money in lieu of the dedication of park land shall be the fair market value of the acreage that would otherwise be required to be dedicated. The fair market value of such acreage shall be equal to its ratio to the fair market value of the unimproved land within the entire subdivision. All money received in lieu of the dedication of park land shall be used exclusively for the purchase, improvement, or maintenance of public parks within the City of Missouri City.

Appellant refused compliance and brought this action. Appellee notified appellant that it elected to receive money in lieu of the property as permitted by the ordinance. The fair market value of the land to be dedicated was calculated by appellee to be $22,462.50. In order to mitigate any damages, the parties entered into an Escrow Agreement whereby the sum requested in lieu of realty was deposited with an escrow agent in exchange for plat approval. Motions for Summary Judgment were submitted to the trial court accompanied by appropriate affidavits. The trial court overruled appellant's motion and granted appellee's.

Appellant contends it was error for the trial court to overrule appellant's Motion for Summary Judgment and to grant appellee's Motion for Summary Judgment because it was established as a matter of law that the ordinance is in violation of Tex.Const. art. I, § 17 and U.S.Const. Amend. V and XIV and that the appellee exceeded its statutory powers as a municipality in enacting the ordinance.

Although the exact question in this case is one of first impression in the State of Texas, the question of the balance between government control and the exercise of personal property rights has required constant examination.

The ordinance clearly permits the city to appropriate realty without compensation. Further, it permits the city to require the payment of the fair market value of the realty in cash rather than the dedication of the realty itself. There is no requirement in the ordinance that such cash be expended to purchase new park areas or that any such areas purchased be located in or near the subdivision. There is also no time limit as to when the funds must be used. Therefore, the ordinance places a special economic burden ultimately upon the purchasers of homes and lots within the subdivision with no guarantee that the recreational facilities for which they have paid will be soon obtained or located close to their subdivision.

Tex.Const. art. 1 § 17 states in part No...