David Jeffrey Co. v. City of Milwaukee

• Decision Date: 05 October 1954
• Citation: 66 N.W.2d 362,267 Wis. 559
• Parties: DAVID JEFFREY CO., an Illinois corporation, Appellant, v. CITY OF MILWAUKEE, a municipal corporation et al., Respondents.
• Court: Wisconsin Supreme Court

Page 362

66 N.W.2d 362

267 Wis. 559

DAVID JEFFREY CO., an Illinois corporation, Appellant, v. CITY OF MILWAUKEE, a municipal corporation et al., Respondents.

Supreme Court of Wisconsin.

Oct. 5, 1954.

Action by plaintiff, David Jeffrey Company, an Illinois Corporation, as property owner and taxpayer of the city of Milwaukee on behalf of itself and others, for a declaratory judgment under sec. 269.56, Stats., to determine the validity and constitutionality of sec. 66.43, Stats., entitled 'Blighted Area Law.' The defendant, City of Milwaukee, is a municipal corporation, and the defendant, Virgil H. Hurless, is the Comptroller of that city. The defendant, Housing Authority of the city of Milwaukee, is a public body corporate and politic, created by the Common Council of the city of Milwaukee and organized and existing by virtue of sec. 66.40, Stats.

The plaintiff seeks a declaration that sec. 66.43, Stats., (Blighted Area Law), and the resolutions, ordinances, acts, contracts and proceedings adopted, executed or taken and the further acts to be taken by the city of Milwaukee thereunder, are illegal and void, in that they violate various provisions of the State and Federal Constitutions. Plaintiff also seeks to enjoin the defendants from further action under the statute. The defendants demurred to the complaint and the trial court by order sustained the demurrer. This appeal is taken from such order.

The Legislature by its enactment of sec. 66.43, Stats., found the existence of substandard, unsanitary, deteriorated, slum and blighted areas in cities of the State. It declares the need for the elimination of such areas and the impotency of existing means or methods, public or private to deal effectively with such conditions. It empowers cities of the State to eliminate and redevelop areas of that type and to such end, acquire property by purchase, eminent domain or otherwise, and to hold, improve, sell or lease property so acquired, and to use its credit and expend tax funds for the accomplishment of such purpose.

In substance the amended complaint alleges that acting under the provisions of sec. 66.43, Stats., the defendant, City of Milwaukee, has engaged in effort with regard to slum clearance and redevelopment of seven areas in that city, one of which is Hillside Neighborhood Redevelopment Area, known also as 'Hillside Area'; and that unless the relief sought is granted, the city will proceed to demolish and redevelop that area; and that for such purpose the city of Milwaukee has obtained a grant from the United States of America, and will receive further grants, and will borrow money, and expend public funds, in its endeavor to acquire property in the area for demolition and redevelopment purposes. Specifically, the complaint assails the constitutionality of the Blighted Area Law and the invalidity of acts thereunder upon the following bases:

'(a) The acquisition by the exercise of the power of eminent domain of all the land and structures comprising the Hillside area and for the purpose of redevelopment thereof by private corporations and individuals for their private use and profit is in violation of Article I, Section 13 of the Constitution of the State of Wisconsin and the Fourteenth Amendment to the Constitution of the United States of America in that such acquisition and use of such property is for a private as distinguished from a public use and purpose; the acquisition by such power of eminent domain, within said Hillside area, of parcels of vacant land, and of structures which are themselves safe, sanitary and sound, further violates the aforesaid provisions of the Constitutions of the State of Wisconsin and the United States of America as the acquisition thereof serves or promotes no public use or purpose.

'(b) The appropriation of $500,000 of public funds of the City of Milwaukee and the issuance and sale of $750,000 of general obligation bonds of said City to aid in financing such slum clearance and urban redevelopment projects including the Hillside area are in violation of the provisions of Article VIII, Section 3 of the Constitution of the State of Wisconsin in that the use and application of such funds for such purposes are the giving or lending and expenditures of public funds and credit for private purposes in aid of individuals, associations or corporations.

'(c) The designation of the boundaries, and the determination of given areas as blighted areas by the City of Milwaukee, the determination of types of re-use of any such area, the selection of purchasers or lessees of such property, the fixing of sales and lease prices, and the imposition of restrictions on re-use of the land in any such areas, are in violation of Article IV, Section 1 of the Constitution of the State of Wisconsin in that the said 'blighted area law' as amended, authorizing such actions, does not provide with regard thereto adequate standards and criteria.'

Amicus curiae also raised the question:

'Does adoption by the Housing Authority of the City of Milwaukee of Boundaries of a redevelopment project area under the provisions of 66.43 Stats., without giving notice of hearings to property owners within the area and without findings upon which it bases its determination as to the boundaries of the project area of 'Blight' violates the 'Due Process' clause of Section 1, of the 14th Amendment of the United States Constitution.'

Attached to the complaint and made a part thereof by reference are reports, surveys and studies, including findings, made by several departments of the city government as to blight conditions in the 'Hillside Area.'

The trial court determined that a justiciable controversy exists and that the entry of a declaratory decree will terminate the uncertainty or controversy giving rise to the proceeding.

A somewhat detailed reference to the enactment of the Legislature is necessary to an understanding of the issues involved and the contentions made.

Sec. 66.43, Stats., provides:

Sub. (1) provides that the act shall be known and may be cited and referred to as the "blighted area law."

Sub. (2) sets forth the Legislature's findings and declaration of necessity. It reads:

'It is hereby found and declared that there have existed and continue to exist in cities within the state, substandard, insanitary, deteriorated, slum and blighted areas which constitute a serious and growing menace, injurious and inimical to the public health, safety, morals and welfare of the residents of the state; that the existence of such areas contributes substantially and increasingly to the spread of disease and crime (necessitating excessive and disproportionate expenditures of public funds for the preservation of the public health and safety, for crime prevention, correction, prosecution, punishment, and the treatment of juvenile delinquency and for the maintenance of adequate police, fire and accident protection, and other public services and facilities), constitutes an economic and social liability, substantially impairs or arrests the sound growth of cities, and retards the provision of housing accommodations; that this menace is beyond remedy and control solely by regulatory process in the exercise of the police power and cannot be dealt with effectively by the ordinary operations of private enterprise without the aids herein provided; that the acquisition of property for the purpose of eliminating substandard, insanitary, deteriorated, slum or blighted conditions thereon or preventing recurrence of such conditions in the area, the removal of structures and improvement of sites, the disposition of the property for redevelopment incidental to the foregoing, and any assistance which may be given by cities or any other public bodies in connection therewith, are public uses and purposes for which public money may be expended and the power of eminent domain exercised; and that the necessity in the public interest for the provisions herein enacted is hereby declared as a matter of legislative determination. * * *' Sub. (2m) provides that there shall be no discrimination as to race, color, creed, or national origin with regards to rights or privileges under the act.

Sub. (3) is a glossary.

Sub. (4) pertains to powers of cities under the act and reads in part:

'(a) Every city is hereby granted (in addition to its other powers) all powers necessary or convenient to carry out and effectuate the purposes and provisions of this section, including the following powers in addition to others herein granted:

'1. To prepare or cause to be prepared redevelopment plans and to undertake and carry out redevelopment projects within its corporate limits.

'2. To enter into any contracts determined by the local legislative body to be necessary to effectuate the purposes of this section.

'3. Within its boundaries, to acquire by purchase, eminent domain or otherwise, any real or personal property or any interest therein, together with any improvements thereon, necessary or incidental to a redevelopment project; to hold, improve, clear or prepare for redevelopment any such property; to sell, lease, subdivide, retain for its own use, mortgage, or otherwise incumber or dispose of any such property or any interest therein; to enter into contracts with redevelopers of property containing covenants, restrictions, and conditions regarding the use of such property in accordance with a redevelopment plan and such other covenants, restrictions and conditions as it may deem necessary to prevent a recurrence of blighted areas or to effectuate the purposes of this section; * * *.

'4. To borrow money and issue bonds, and to apply for and accept advances, loans, grants, contributions, and any other form of financial assistance from the federal, state or county government, or other public body or from any sources, for the purpose of this section; * * *.

'(b) Condemnation proceedings for the acquisition of real property necessary or incidental to...