Campbell v. Bethlehem Parking Authority

Decision Date05 November 1975
Citation20 Pa.Cmwlth. 445,342 A.2d 114
PartiesHarold S. CAMPBELL, Appellant, v. The BETHLEHEM PARKING AUTHORITY et al.
CourtPennsylvania Commonwealth Court

Richard A. Sprague, Philadelphia, for appellant.

Robert W. Rudas, City Sol., Robert J. Washko, Assistant City Sol., Bethlehem, for appellee City of Bethlehem.

Thomas M. Kittredge, Philadelphia, Hugh M. Morrison, for The Bethlehem Parking Authority.

Michael E. Riskin, Bethlehen, for The Redevelopment Authority of the City of Bethlehem.

Before BOWMAN, President Judge, and CRUMLISH, Jr., KRAMER, WILKINSON, MENCER, ROGERS and BLATT, JJ.

OPINION

KRAMER, Judge.

This is an appeal filed by Harold S. Campbell from orders 1 of the Court of Common Pleas of Northampton County dismissing Campbell's complaint in equity which sought to enjoin (a) the Bethlehem Parking Authority; (b) the Redevelopment Authority of the City of Bethlehem; and (c) the City of Bethlehem. 2 The case involves the proposed construction of a parking garage in the City by the Parking Authority which Campbell contends is to be constructed 'for the predominant purpose of serving parking desires of two private commercial interests in the Center City Urban Renewal areas . . ..' The court below found and held that the garage was predominately and primarily a public use with any private gain only incidental.

Shortly after World War II, the City, like many metropolitan areas of our State, commenced a study through independent experts to provide planning with respect to the City's urban renewal. That study culminated in 1956 with a report providing for a 14-stage program of community development. In 1963 the City commenced its urban renewal program with one of its major projects concentrated in what is known as the Central Business District. All of the experts who made any proposals to the City recognized that off-street parking in the Central Business District would be an indispensable part of any renewal program. In 1960, a comprehensive plan was prepared which was approved by the City's Planning Commission and Council. Once again the necessity for off-street parking facilities was recognized. The City commenced its first urban renewal project in the Central Business District in 1962. Some of the early projects were a new city hall, city council rotunda, and city library.

On July 8, 1968, the City's Planning Commission certified the Central Business District as a blighted area, and in that same year, through independent experts, the City prepared an 'update' to its planning for the Central Business District. On November 25, 1969, the City Council approved the updated report (hereinafter the '1969 report') which was later approved by the City's Planning Commission and a special citizens' task force (which had been established by the City's Mayor). The 1969 report recommended that a municipal parking authority be formed to provide off-street parking for a total of 3,000 vehicles in five parking garages in the Central Business District. It also called for a new hotel, concert hall, exhibit hall, office and professional buildings, transportation center, retail shopping center, two new department stores, and other improvements. The 1969 report also recommended that assurance be given to prospective developers that parking facilities would be adequate to make the Central Business District competitive with suburban shopping centers. Thereafter the City organized an extensive effort to attract redevelopers locally and from distant places. All the prospective redevelopers insisted upon commitments for adequate parking facilities.

On June 2, 1970, the City created the Parking Authority, which engaged consulting engineers to assist in its planning. After more than two years of unsuccessful effort to attract redevelopers, the Redevelopment Authority entered into a redevelopment contract with the First Valley Bank for the construction of an 11-story office and professional building at the corner of New and Walnut Streets. About a year later, a partnership of local businessmen, known as Bethlehem Plaza, entered into a redevelopment contract for the construction of a retail shopping mall west of the First Valley Bank building. At the time these contracts were made, a parking garage was planned as a part of the complex on the northerly side of Walnut Street. Later, when the plans for Walnut Street were redesigned so that the street could be widened, the redevelopment plan was amended, and a public parking garage was proposed directly across Walnut Street (which was the location which was originally recommended in the 1969 report). The 1969 report included a recommendation for an elevated pedestrian walkway from the garage on the south side of Walnut Street to the shopping mall on the north side, as did the final plan.

Eventually the Redevelopment Authority obtained title to the property (including air rights over what is known as the Fretz property) necessary for the construction of the proposed Parking Authority garage on the south side of Walnut Street. The Redevelopment Authority conveyed the necessary real estate and air rights to the Parking Authority.

During all of the period in which the various planning, study and negotiations took place, the City had an ordinance requiring off-street parking in its Central Business District. This ordinance had been in effect since 1960. Because of the City's failure to attract redevelopers, caused by the lack of adequate parking facilities, City Council on November 26, 1974, enacted an ordinance repealing the off-street parking requirements. This had the effect of amending the City zoning ordinance. There was no appeal taken by anyone from this amendment, and, although Campbell appeared to challenge that amendment in his original complaint, counsel for Campbell made it clear on the record that Campbell was raising no issue concerning the legality of the amendment to the City's zoning ordinance.

On November 4, 1974, City Council approved the construction of the parking garage and approved a lease of the garage by the City under a contract providing that the Parking Authority would operate the garage. Application for approval of this contract and the financing was filed by the City with the Department of Community Affairs of the Commonwealth of Pennsylvania, pursuant to the provisions of the Local Government Unit Debt Act, Act of July 12, 1972, P.L. 781, 53 P.S. § 6780--1 et seq (Supp.1975--1976). The Department of Community Affairs approved the project on November 14, 1974. No appeal was taken by anyone from this approval as is provided by section 809 of the Local Government Unit Debt Act, 53 P.S. § 6780--359 (Supp.1975--1976). Although Campbell challenged the financing arrangement by the City and the Parking Authority in his complaint, counsel for Campbell at the hearing before the court below agreed to strike that challenge from the case. Counsel also stated that he was not challenging in any way the Power of the Redevelopment Authority to convey the subject property to the Parking Authority. Campbell does not suggest any fraud, misrepresentation or other improper action by any public official. He acknowledges that there is not even the slightest hint of any benefit or gain to be derived by any government or authority official.

On November 13, 1974, Campbell commenced this action by the filing of a writ of summons and, after having been ruled upon to file a complaint the following day, the complaint was filed on December 4, 1974. After eliminating the issues relating to the legality of the zoning ordinance amendment and the financing of the parking garage, the sole issue remaining is Campbell's allegation that the parking garage is intended to accommodate predominately private interests and that the parking garage will impose an enormous financial burden on the taxpayers, without sufficient public benefit.

Our summary of the facts would not be complete without a more specific reference to Campbell. For more than 40 years he has been a real estate developer in Bethlehem. He is well-versed in municipal affairs, particularly as they pertain to real estate development. He and his family own the Westgate Shopping Mall, a shopping center of about 40 retail stores located only one and one-half miles from the Central Business District. Interestingly, about half of the leases in the Westgate Shopping Mall have provisions for rents to be determined partially as a function of the sales volume of the tenants. It is quite obvious that the result of this case will have a direct effect on Campbell's personal financial affairs.

After the First Valley Bank and the Bethlehem Plaza redevelopers had acquired their respective land on the north side of Walnut Street and the design work for the garage on the sourth side of Walnut Street was completed, the Parking Authority advertised for bids for the construction of the garage. Bids were received on October 22, 1974, and, on October 29, 1974, the Parking Authority accepted the proposal for the purchase of Parking Authority bonds to finance the garage. The proposal provided that a certificate be delivered at the time of the settlement stating...

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