Halstead v. McHendry
| Decision Date | 30 June 1977 |
| Docket Number | No. 50985.,50985. |
| Citation | 1977 OK 131,566 P.2d 134 |
| Parties | Bill G. HALSTEAD, Petitioner, v. Ira L. McHENDRY, Jere Johnson, and Ray M. Fields, constituting the Board of County Commissioners of Garfield County, Oklahoma, and the Trustees of the Garfield County Regional Health Facilities Authority, Respondents. |
| Court | Oklahoma Supreme Court |
Bill G. Halstead, Mitchell, Mitchell, DeClerck, Cox & Halstead, Enid, for petitioner.
J. Scott Brown, Fagin, Brown, Bush, Selvidge & Tinney, Oklahoma City, for respondents.
Bill J. Halstead (Petitioner) commenced this original proceeding seeking to have this Court assume original jurisdiction and to enjoin or otherwise prohibit the execution of a lease agreement between the Board of County Commissioners of Garfield County and the Garfield County Regional Health Facilities Authority (Authority), and to enjoin or otherwise prohibit the issuance of revenue bonds by Authority. Petitioner is a resident and taxpayer of Garfield County. The individuals named respondents constitute the Board of County Commissioners of Garfield County and are also Trustees of Authority.
These proceedings involve a revenue bond/lease agreement between the Board of County Commissioners and Authority. Authority proposes to issue revenue bonds and with the proceeds from the sale, acquire certain real property and construct facilities to be used by the Garfield County Health Department. The County proposes to lease the facilities from Authority and then sub-lease them to the Garfield County Health Department for its use.
Petitioner challenges the legality of the lease agreement and the proposed issuance of the revenue bonds on the grounds that the manner in which respondents propose to finance the construction of the County Health Building and incur and pay the bonded indebtedness, violates Art. X, & 26, of the Oklahoma Constitution.
Petitioner presents a controversy over which this Court will not ordinarily exercise its original jurisdiction. As petitioner freely admits, the District Court of Garfield County would have jurisdiction over this case. Petitioner and respondents join in urging this Court to assume original jurisdiction because the issue involved is of special public importance and because of the pressing need to provide for the relocation of the health department renders a remedy in the District Court inadequate. The Court considers the question publici juris and a proper subject for the exercise of original jurisdiction. State ex rel. Freeling v. Ross, 76 Okl. 11, 183 P. 918 (1919); State ex rel. West v. Cobb, 24 Okl. 662, 104 P. 361 (1909). Furthermore, it is noted that the issue is of great local concern and that there is a real and pressing need for an early determination of the case. Morrison v. Ardmore Industrial Development Corporation, Okl., 444 P.2d 816 (1968). The Court, therefore, assumes jurisdiction.
The parties stipulated that:
1. At an election held for such purpose on the 24th day of May, 1966 a majority of the qualified voters of Garfield County, Oklahoma, voting at said election, approved the following proposition:
2. The Garfield County Health Department is presently leasing facilities from a private individual and the rentals are paid from collections under the mill levy approved in 1966. This present lease will terminate and will not be renewed.
3. The Board of County Commissioners and Authority, pursuant to proper resolutions, entered into a lease agreement which provides that Authority will issue its bonds in the sum of $750,000.00 and use the net proceeds to acquire the land and construct and equip a building thereon to be leased to the County to house the County Health Department.
4. The Board of County Commissioners has sublet the facilities to the Garfield County Health Department at an annual rental of $120,000.00. This $120,000.00 paid by the County Health Department from the collection of the 2 1/2 mill levy is more than sufficient to pay the rentals required to be paid by the County to Authority and to operate and maintain the facilities.
The lease agreement between the County and Authority commits County to the rental of the facility for a primary term of one year or less, depending on the exact date of closing, and contains an option in favor of County to renew the lease from year to year. Rent is calculated in an amount adequate to retire Authority's bonds with interest over a fifteen year term. Upon the natural termination of the lease, which includes all annual extensions, County has the option of continuing the lease without any obligation to pay rent (County would be obligated to pay operation and maintenance expense etc.) or County is entitled to purchase the facilities for One Dollar ($1.00).
Petitioner challenges the legality of the proposed bond/lease agreement package transaction on the grounds that it violates Art. X, § 26, of the Oklahoma Constitution, which, in part, provides:
"Except as herein otherwise provided, no county, city, town, township, school district, or other political corporation, or subdivision of the State, shall be allowed to become indebted in any manner, or for any purpose, to an amount exceeding, in any year, the income and revenue provided for such year, without the assent of three-fifths of the voters thereof, voting at an election, to be held for that purpose, * * *."
In Independent School District No. 1, McIntosh County v. Howard, Okl., 336 P.2d 1097 (1959), we held:
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