Crestwood Commons Redevelopment Corp. v. 66 Drive-In, Inc.
| Decision Date | 25 June 1991 |
| Docket Number | INC,No. 57645,DRIVE-I,57645 |
| Citation | 812 S.W.2d 903 |
| Parties | CRESTWOOD COMMONS REDEVELOPMENT CORPORATION, Plaintiff-Appellant, v. 66, et al., Defendants-Respondents. |
| Court | Missouri Court of Appeals |
Gerard Timothy Carmody, Sheila K. O'Malley, Thomas C. Walsh, St. Louis, for plaintiff-appellant.
Daniel T. Rabbitt, William T. Kacerovskis, St. Louis, for defendants-respondents.
Crestwood Commons Redevelopment Corporation ("Crestwood Commons") appeals from a judgment of the Circuit Court of St. Louis County, after a five day trial, in which the trial court found three ordinances of the City of Crestwood, Missouri invalid. We reverse and remand.
At issue is a tract of land located on Watson Road in the heart of Crestwood, Missouri. It is commonly known as the home of 66 Drive-In, Inc. ("66 Drive-In"), a drive-in movie theater that has operated seasonally for over forty years. In order to understand the current controversy, a chronological perspective is essential.
Beginning in March, 1983, the City of Crestwood commissioned the Urban Programming Corporation ("UPC") to analyze the condition of the Watson Road Corridor. The UPC identified fourteen parcels of property, including 66 Drive-In, that needed attention. The UPC then conducted a two-step process. First, it met with each property owner that was involved with the parcels, together with the Mayor and the City Administrator. The UPC informed the parcel owners of what the City of Crestwood felt were good uses for their property. Second, it asked the permission of each property owner to allow the parcels to be shown at a workshop that was held for metropolitan area developers. The purpose was to unite developer interest with potential properties. All but three of the parcel owners subsequently redeveloped their property. 66 Drive-In did not.
Between 1985 and 1987, the Mayor of the City of Crestwood, Patricia Killoren, had ongoing conversations with both Dierbergs and Schnucks. She tried to get Dierbergs to build a store in Crestwood, and also get Schnucks to expand its Crestwood store or build a new one. In the Spring of 1986, the Crestwood Board of Aldermen ("the Board of Aldermen") passed Ordinance 2053, which specifically regulated drive-in movie theatres. Despite its enactment, the City of Crestwood never cited 66 Drive-In for a violation of it.
Sometime in early 1987, John Brancaglione, the manager of the Planning Division for Campbell Design Group, suggested using one of the redevelopment statutes to improve the 66 Drive-In parcel. The City of Crestwood subsequently asked the Campbell Design Group to perform a blighting study. 1
In the meantime, the City of Crestwood passed an ordinance that set forth certain standards regulating properties. Part of this ordinance consisted of "anti-blight standards". Despite enactment of this ordinance, the City of Crestwood never cited 66 Drive-In for a violation of it. About this same time, Schnucks decided to build a supercenter to serve the greater Crestwood market. Schnucks desired to build it either on the 66 Drive-In property, or elsewhere at another location within the Western Watson Road corridor.
In December, 1987, the City of Crestwood's Watson Road Redevelopment Committee met. Brancaglione informed the Mayor and the Board of Aldermen that Schnucks was on a month-to-month lease and would soon be moving out because it wanted a larger store. The Mayor confirmed that she had heard from some of Schnuck's employees that Schnucks was closing. Though it is unclear who raised the issue of the 66 Drive-In property, clearly someone suggested at this meeting that this site was a prime spot for the development of a grocery store. In fact, the Mayor and several members of the Board of Aldermen considered this the only site available for a superstore. Therefore, someone suggested the use of Chapter 353 to redevelop it.
On January 26, 1988, the Board of Aldermen held a public meeting during which they discussed initiating a redevelopment program under the provisions of Chapter 353. Kent Leichliter, the Crestwood's City Administrator, read a memo to all of the Aldermen which states:
[a]s this is the last large site available for development, particularly large enough for the development of a grocery store, we believe it necessary to initiate a redevelopment program under the provisions of Chapter 353 of the Missouri Statutes. Using this mechanism, the City can initiate the redevelopment of this site while maintaining control of the type and extent of development as well as who the developer will be.
On January 29, 1988, Schnucks contacted the Mayor and was directed to Brancaglione. On February 4, 1988, Schnucks met with Brancaglione. Brancaglione: (1) outlined the City's plans for the Drive-In site; (2) suggested Schnucks team up with a well-liked developer: either Hycel or Sansone; and (3) advised Schnucks against teaming up with Ronald Krueger, President of Wehrenberg Theatres, owner of stock in 66 Drive-In, beneficiary of stock in 66 Drive-In, and eventual owner of the 66 Drive-In property.
Subsequently, in February, 1988, the Campbell Design Group completed its blighting study, entitled "An Analysis For Blighting Factors, Watson Road Development Area". At Crestwood's February 23, 1988 aldermanic meeting, the Campbell Design Group discussed its findings. Brancaglione indicated that the study area included 66 Drive-In, as well as adjoining commercial strip store tenants. He concluded that the study area evidenced many examples of building, structures and land uses which, because of age, obsolescence, inadequate or outmoded design, or physical deterioration have resulted in economic and social liabilities to the City and its residents. He also concluded that such conditions foster and are conducive to ill health, transmission of disease, crime or inability to pay reasonable taxes and thus may be found to be a blighted area. Brancaglione suggested that the study area be redeveloped so that the property consisted of a mixed use scenario. He recommended a state of the art grocery superstore, townhomes/condominiums, office space and retail/commercial space. During this meeting, Alderman Johnson, whose son works for Schnucks, asked Brancaglione to estimate the sales taxes generated by a superstore. Brancaglione indicated that the grocery store alone would generate approximately $280,000 annually in sales taxes.
In late February, or early March, 1988, Schnucks teamed up with Hycel Properties, Co., thereby forming Crestwood Commons.
At Crestwood's March 8, 1988 aldermanic meeting, the "Watson Road Redevelopment Area Blighting Ordinance, Bill No. 61-87, was first introduced." This ordinance declared blighted all the property recommended by Brancaglione. Also introduced at this meeting was the "Watson Road Redevelopment Area/Procedures Ordinance", No. 62-87. Both bills were held for additional consideration.
On March 16, 1988, Crestwood's Mayor met with the strip store operators. She promised that if they collectively decided that they wanted to be removed from the redevelopment area, she would make this recommendation to the Board of Aldermen. We note, however, that the Mayor did not give 66 Drive-In this same option.
On March 18, 1988, 66 Drive-In contracted to purchase the Drive-In property from the fee owner, Marguerite Crain, for a total sales price of $3,500,000. 66 Drive-In's attorney, Gus Nations, notified the Board of Aldermen of this at the March 22, 1988 aldermanic meeting. He explained that 66 Drive-In intended to retain an architect so that 66 Drive-In could develop the property itself. He indicated that 66 Drive-In would prepare a development plan and would submit an application for a special use permit. Nations requested that the Aldermen withdraw Bill Nos. 61-87 and 62-87. Despite this request, said bills were read for a second time. The Aldermen did, however, agree to hold both bills until the April 12, 1988 aldermanic meeting. After the March 22, 1988 reading, the Aldermen opened the floor to comments. Lee Wagman, president of Hycel Properties, Co., thanked the Board of Aldermen for initiating the 353 procedure. The strip store operators also presented 1,400 signatures in support of not blighting their businesses. After the meeting, Alderman Franz approached Nations and informed him that since 66 Drive-In became the owner of the 66 Drive-In property, the City would now work with them. Additionally, Hycel Properties Co. and Schnucks met and decided to schedule a meeting with the Mayor to discuss which Aldermen needed to be approached for support.
On March 28, 1988, Schnucks met with both Crestwood's Mayor and City Administrator to discuss the reasons why the blighting process should proceed. Nevertheless, the Mayor refused to meet with 66 Drive-In.
On March 30, 1988, Hycel and Schnucks sent letters to the Crestwood Aldermen urging them to vote to blight the drive-in. Hycel and Schnucks sent a substantially similar letter to the Mayor on April 4, 1988. On April 12, 1988, the Mayor introduced Bill No. 61A, a substitute bill for Bill No. 61-87. The substitute bill removed the strip stores from the blighted area. It was read both for a first and second time. Then, Alderman Murray moved to suspend the rules of procedure so that Bill No. 61A could be read for a third time. This motion passed unanimously. Attorney Nations subsequently asked to address the Board before a third reading. The Mayor refused, stating that Nations could speak after the vote. Thereafter, the Bill was read for a third time. By a vote of 7 to 1, the Board voted to blight the Drive-In pursuant to Chapter 353, RSMo 1986. Bill No. 61A was assigned Ordinance No. 3056.
Also on April 12, 1988, the Board of Aldermen passed Bill No. 62-87 by a vote of 8 to 0....
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