City of Pocatello v. Peterson, 10646
| Citation | 473 P.2d 644,93 Idaho 774 |
| Decision Date | 07 August 1970 |
| Docket Number | No. 10646,10646 |
| Parties | CITY OF POCATELLO, a municipal corporation of the State of Idaho, Plaintiff-Respondent, v. George H. PETERSON and Dean G. Nielson, d/b/a a joint venture, Defendants-Appellants. |
| Court | United States State Supreme Court of Idaho |
Racine, Huntley, Herzog & Olson, Pocatello, for defendants-appellants.
Johnson and Olson, Pocatello, for plaintiff-respondent.
Robert M. Robson, Atty. Gen., and Richard H. Greener, Asst. Atty. Gen., Boise, amici curiae.
Seward H. French, Pros. Atty., Bonneville County, Idaho Falls, amicus curiae.
Ellison M. Matthews, Pros. Atty., Ada County, Boise, amicus curiae.
This action was initiated by the City of Pocatello, plaintiff-respondent, for the purpose of seeking a declaratory judgment as to the validity of a lease agreement proposed by the city, but rejected by George H. Peterson and Dean G. Nielson, the defendants-appellants. The appellants rejected the lease agreement since they had a question as to its legality. The parties stipulated that the cause be submitted to the district court for decision upon the pleadings and exhibits attached thereto, and further stipulated:
'That all of the allegations of Plaintiff's Complaint and Defendants' Answer are true and correct and that it is stipulated and agreed that the reasonable rental value of the subject facility is the sum of $6,000.00 per month.'
The facts set forth by the pleadings, the exhibits, and stipulation disclose that on September 12, 1969, the Pocatello City Council enacted an ordinance declaring its intention to sell sertain described unimproved lands owned by it. These lands were part of the Pocatello Municipal Airport and were situated near the runways of the airport. At this same time the city published a notice calling for competitive bids in accordance with certain contract documents. In calling for bids the city proposed that the successful bidder would purchase the unimproved land and construct an airport terminal building thereon in accordance with the specifications and requirements of the bid documents, and thereafter lease the completed structure on the purchased land back to the city. The structure to be built was to be used as an airport terminal facility to accommodate airlines serving the community, travelers on the airlines, and in addition to provide space for the Federal Aeronautics Administration, the Weather Bureau, and other related facilities.
Appellants Peterson and Nielson, doing business as joint venturers, submitted both a bid for the purchase of the property and a proposal to construct the terminal building and to lease it back to the city. In substance the proposed lease provided that the lessor was to construct a building on the property deeded by the city to them, construction to be in accordance with the plans and specifications which were a part of the bid documents and for the city to pay a rental of $6,000 per month for a twenty year period.
On December 8, 1969, the overall bid of the appellants was accepted by the respondent city as the lowest and best bid. On February 9, 1970, the city tendered to the appellants a lease agreement for execution but the appellants refused to sign it since they were uncertain whether the city could constitutionally enter into such an agreement. The city then initiated this action seeking a declaratory judgment to determine whether the lease agreement violates the provisions of the Idaho Const., Article 8, § 3. 1 The trial court, basing its conclusions of law on the stipulated record, ruled that the agreement was a lease and not a conditional sales contract and that the rentals provided in the agreement are not a debt or liability prohibited by Article 8, § 3 of the Idaho Constitution. The court also concluded that the lease agreement creates an ordinary and necessary expense authorized by the laws of this state and that execution of such an agreement is within the authority of the city and not prohibited by the constitution. The court furthermore concluded that the defendants could lawfullyy execute such an agreement and, accordingly, entered judgment for the city. It is from that judgment that this appeal has been taken.
Amicus curiae representing Bonneville County contends that the drafters of the Idaho Constitution intended that expenses authorized by the general laws of the state for units of local government to incur are the ordinary and necessary expenses to be excluded from the limitations of the constitutional provision. The attorney general as amicus curiae has adopted the brief and position of respondent (City of Pocatello).
At the outset it is to be pointed out that there is no issue before this Court as to whether there was a compliance with the provisions of I.C. Chapter 40, Title 31, as discussed in Swensen v. Buildings, Inc., 93 Idaho 466, 463 P.2d 932 (1970).
The principal issue presented by this appeal is whether the repair and improvement of the municipal airport by the City of Pocatello is an ordinary and necessary expense falling within the pertinent constitutional provision. 2 This Court emphasizes that it is meaningless to consider the broad question as to whether the repair, maintenance or construction of an airport is to be considered an ordinary and necessary expense without also taking into account the contextual framework peculiar to the City of Pocatello. In other words, whereas an airport may be considered an ordinary and necessary expense for some municipalities, it may not be for others. The repair, maintenance and construction of airports are not inherently 'ordinary and necessary expenses' falling within the 'proviso clause' of Article 8, § 3 of the Idaho Constitution. 3 Research fails to disclose cases which have considered the question except for several in North Carolina. 4 However these cases, 5 without analyzing the factual backgrounds therein involved, merely state in the abstract that:
Vance County v. Royster, supra, 271 N.C. at 64, 155 S.E.2d at 798. "'If the purpose is the maintenance of the public peace or the administration of justice, if it partakes of a governmental nature or purports to be an exercise by the city of a portion of the state's delegated sovereignty, if, in brief, it involves a necessary governmental expense."
When thus tested, an airport is not a necessary governmental expense.' Sing v. City of Charlotte, supra, n. 4, 213 N.C. at 64, 195 S.E. at 273.
Thus these cases are of little help to this Court in considering the Idaho constitutional proviso as it relates to the facts of this case.
By I.C. § 50-321 6 the legislature in broad terms has authorized cities to acquire, operate and maintain airports. Additional legislative authority is to be found in I.C. § 21-401. 7
It is fundamental, however, that insofar as the position of amicus curiae representing Bonneville County is concerned, statutes enacted by the legislature in this context cannot contravene constitutional limitations. In other words, even though the legislature may have authorized various expenditures by counties or cities and villages, if such expenditures are contrary to the constitutional provision, they cannot be made. The proviso to Article 8, § 3 requires both that the expenditure be authorized by the general laws of the state and that it be an ordinary and necessary one. The mere fact that the lease here is authorized by the general laws of the state does not ipso facto bring the expenditure within the proviso as an ordinary and necessary expense.
This Court will now consider whether the operation of an airport can be considered as an 'ordinary and necessary' expense within the constitutional provision. As stated previously, few cases have been passed upon by the courts involving the precise issue presented by the instant case. However, in an analogous situation, courts have on frequent occasion determined whether the operation of an airport is of such public use or necessity that the state or its subdivisions can use the power of eminent domain to condemn land for airports.
'Eminent domain is the power of the sovereign to take property for public use without the owner's consent * * *. The 'public use' element is set forth in some definitions as the 'general welfare,' the 'Welfare of the public,' the 'public good,' the 'public benefit,' or 'public utility or necessity." 1 Nichols on Eminent Domain, § 1.11, pp. 4-6, Rev. 3d ed. 1964. (emphasis supplied).
The construction, maintenance, and operation of airports is generally considered to be for a public use justifying the exercise of the power of eminent domain for the purpose of acquiring private property for such use. See, City of Caldwell v. Roark, 92 Idaho 99, 437 P.2d 615 (1968); Ferguson v. City of Kenosha, 5 Wis.2d 556, 93 N.W.2d 460 (1958); 8 Am.Jur.2d Aviation, § 47, p. 667; Annot. 135 A.L.R. 756. As heretofore stated, in the State of Idaho, pursuant to I.C. § 21-401, 8 cities are permitted to acquire, via the power of eminent domain, lands for the construction and maintenance of airports.
Thus the construction and maintenance of an airport facility is a valid justification for employing the power of eminent domain since airports are constructed and operated for the public benefit, utility and necessity. Examining the factual situation presented by the case at bar, it appears that the City of Pocatello has operated a municipal airport since 1947, but presently finds that the airport must be expanded if it is to remain of any value. The passenger terminal is an unsound structure. The observation room, technician's shop, teletype room, weather bureau, office space and storage areas are all inadequate to accommodate the needs of the people. Furthermore the facility is inadequate to...
To continue reading
Request your trial
-
Loomis v. City of Hailey
...allows reserves to be accumulated for maintenance and rehabilitation of the system. See also I.C. § 50-1033. In City of Pocatello v. Peterson, 93 Idaho 774, 473 P.2d 644 (1970), we reaffirmed the proposition stated in Hickey v. City of Nampa, 22 Idaho 41, 124 P. 280 (1912), that an expendit......
-
Asson v. City of Burley
...that the expense be ordinary and necessary, and (2) that it be authorized by the general laws of the state. City of Pocatello v. Peterson, 93 Idaho 774, 777, 473 P.2d 644, 647 (1970). We will address the "ordinary and necessary" requirement Early cases interpreted the "ordinary and necessar......
-
City of Boise v. Frazier
..."authorized by the general laws of the state ... ." This exception is referred to as the "proviso clause." City of Pocatello v. Peterson, 93 Idaho 774, 778, 473 P.2d 644, 648 (1970). In the present case, the district court ruled that the parking expansion was an ordinary and necessary expen......
-
Board of County Com'rs of Twin Falls County v. Idaho Health Facilities Authority
...companies within the meaning of Article 8, § 4. because the county is not required to operate a hospital. In City of Pocatello v. Peterson, 93 Idaho 774, 473 P.2d 644 (1970), it was held that the repair, maintenance and construction of an airport which the city was by law allowed, but not r......