Drey v. McNary
| Decision Date | 10 November 1975 |
| Docket Number | No. 58867,58867 |
| Citation | 529 S.W.2d 403 |
| Parties | Kay DREY et al., Appellants, v. Gene McNARY, St. Louis County Supervisor, et al., Respondents. |
| Court | Missouri Supreme Court |
Lewis C. Green, St. Louis, for appellants.
Thomas Wehrle and Morton Golder, and George W. Lang, II, Wayne B. Wright, Clayton, for respondents.
In this action plaintiffs sought both a declaratory judgment and an injunction relative to (1) the use that may be made of the proceeds of general obligation bonds and revenue bonds approved by the people of St. Louis county for public parks and recreational facilities purposes; and (2) the validity of pledges by the County of (a) specified revenues to payment of the revenue bonds, and (b) other revenue in general to payment of the cost of operating and maintaining the recreational facilities. The trial court granted part of the relief requested, but denied other parts and from that part of the judgment plaintiffs appealed to the Court of Appeals, St. Louis District. The case was transferred to this court for review after an opinion had been filed in the court of appeals. We utilize parts of the opinion of that court.
Plaintiffs are residents, property owners and taxpayers of St. Louis county and active members in organizations interested in preserving open space and parks in the county. The defendants are the Supervisor, the Director of Parks and Recreation, and the members of the County Council of St. Louis County.
In early 1969 plaintiffs and defendants were allies actively supporting the approval of two bond issues by the voters of St. Louis county. Those bond issues, approved at an election held June 3, 1969, were for the purpose of acquiring new park sites in the county and the erection of certain new recreational facilities. One proposition authorized general obligation bonds; the other revenue bonds. As submitted to the voters, the two bond issues were:
Proposition to issue the bonds of St. Louis County, Missouri, to the amount of NINETEEN MILLION, THREE HUNDRED EIGHTY THOUSAND DOLLARS ($19,380,000) to provide funds for the purpose of purchasing, improving, and equipping lots, tracts and parcels of ground, and land to be used as public parks and playgrounds and for recreational purposes.
Proposition to issue Public Recreation System Revenue Bonds of St. Louis County to the amount of FIVE MILLION FIVE HUNDRED THOUSAND DOLLARS ($5,500,000) to provide funds for the purpose of establishing, equipping and developing a system of public recreation, including parks and other recreational grounds, playgrounds, recreational centers, swimming pools and any and all other recreational areas, facilities and activities; said bonds to be payable, both principal and interest, from revenues to be derived from the facilities acquired through the issuance of said bonds.
The route by which these propositions reached the ballot is pertinent. Under the St. Louis County Charter 1 the Supervisor is required to submit to the County Council a budget, a capital program and an accompanying message. The capital program 'shall contain at least (1) a clear, general summary of the program, (2) the capital improvements pending and proposed to be undertaken during the five fiscal years next ensuing, together with the estimated cost of each improvement and the pending or proposed method of financing it, * * *.' (Emphasis supplied.)
Pursuant to this directive, the Supervisor on March 27, 1969, submitted to the County Council a summary of the proposed St. Louis County Capital Improvement Program for the years (presumably fiscal) 1970 through 1974. Under the proposals for parks and recreational facilities was a recommendation for $19,348,734 in general obligation bonds to (1) acquire seven new parks ($11,278,950), (2) acquire approximately 800 acres of land to be utilized for three eighteen-hole golf courses ($4,305,779), and (3) improve existing parks ($3,764,005). Also included was the statement: 'To develop these golf courses, plus three ice-skating/hockey rinks, and three swimming pools for all the people of St. Louis County, an issue of $5,484,060 in revenue bonds is proposed. The people who use these facilities would pay the cost of the bonds with 'user-fees. " Listed among the 'New Parks' was what is known as the Queeny Tract. Listed as a proposed public golf course was the Northwest Golf Course site (to include golf course, swimming pool, ice-skating/hockey rink) located some considerable distance north and east of the Queeny Tract.
In the letter of transmittal accompanying the summary the Supervisor recommended that the 'County Council take the necessary legislative action' to place the proposed bond issues on the June 3, 1969, ballot. This letter of transmittal again delineated between the general obligation bonds of $19,380,000 for acquisition of new parks and land for recreational complexes and the revenue bonds of $5,500,000 to develop golf, ice-skating/hockey rink and swimming pool facilities on land acquired with the general obligation bonds.
On April 24, 1969, the County Council, pursuant to the Charter, passed ordinance 5040 which called a special election on June 3, 1969, to authorize the general obligation and revenue bond indebtedness. The first paragraph of that ordinance begins:
'WHEREAS, the County Supervisor in a report dated March 27, 1969, recommended to the County Council that an election be held in said County to authorize the incurring of indebtedness and the issuance of General Obligation bonds of said County in the following amounts for the following purposes, to-wit: . . .
'NINETEEN MILLION, THREE HUNDRED EIGHTY THOUSAND DOLLARS ($19,380,000) to provide funds for the purpose of purchasing, improving, and equipping lots, tracts and parcels of ground, and land to be used as public parks and playgrounds and for recreational purposes.'
The second paragraph read in part:
'WHEREAS, the aforesaid report of the County Supervisor recommended that at an election to be held in said County a proposal be submitted to authorize the issuance of Public Recreation System Revenue Bonds of said County in the following amount for the following purpose, to-wit:
'FIVE MILLION, FIVE HUNDRED THOUSAND DOLLARS ($5,500,000) to provide funds for the purpose of establishing, equipping and developing a system of public recreation . . ..'
Plaintiffs introduced voluminous evidence that prior to the election an extensive publicity campaign was conducted in support of the bond issues. Citizens groups, environmental groups and county officials were part of this campaign. We need not review the evidence in detail other than noting that Proposition 2 was treated in the campaign as bonds for the acquisition of land for parks and improvement of existing parks. Proposition 3 was treated as bonds for development of three ice-skating/hockey rinks, three golf courses and three swimming pools to be paid for by users at 'no cost to taxpayer.'
Following the election a feasibility study of the potential market for the revenue bonds was made. The results were discouraging at best. It was determined that the market for revenue bonds backed only by the income from county recreational facilities was poor and, if salable at all, required a high rate of return. The record warrants the conclusion, that faced with this financial picture and cognizant of the desires of the electorate as evidenced by the election, the county administration sought ways to improve the marketability of the bonds by increasing their security. The ultimate result encompassed several proposals.
The Queeny Tract of 569 acres was acquired by the county with general obligation bond money. A master plan for the development of that site had been prepared for the county by Sverdrup and Parcel and Associates, Inc., engineers, architects and planners. That plan called for development on the Queeny Tract of a family recreational center. Included would be an 18-hole golf course, an ice-skating arena, a swimming pool, clubhouse, children's play area, tennis courts and parking. In addition a large area of the tract containing a hardwood forest would be left in its natural state for hiking, picnicking, and other similar activities. In contemplation of development of the site in accord with the master plan of Sverdrup and Parcel, and conditioned upon such development, Mrs. Edgar Queeny entered into a contract for gift with St. Louis County. In exchange for her gift of $1,000,000 the county promised (1) to name the park after the donor's husband, (2) to procure from another donor at least $1,000,000 to defray development costs, and (3) to appropriate from the 1969 Park Bond Issue Fund (the general obligation bonds) $1,800,000 as the county's portion of the costs of development of Phase I of the master plan. The second $1,000,000 gift was obtained from the private Greensfelder Foundation. The recreational complex in Queeny Park would take the place of one of the three recreational centers originally proposed in the Capital Improvement plan.
Thereafter, the County Administration developed a prospectus relating to the proposed sale of the $5,500,000 in revenue bonds authorized by Proposition 3, which prospectus was furnished to potential bidders on the bonds. Contained therein are the following statements:
(1) 'All costs of . . . engineering, and architectural fees (for the three recreational complexes) have been paid or will be paid from the General Obligation bonds . . .'; (2) 'The County will pay for the construction and operating costs of the ice rink and swimming pool facilities . . .' at Queeny Park; (3) 'the gross revenues of all three golf, ice and swimming facilities will be pledged for the payment . . .' of the revenue bonds; (4) 'The County will make up any deficit from other funds available'; 2 (5) as to Queeny Park 'Architectural and engineering fees of $265,000,...
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