Nohrr v. Brevard County Educational Facilities Authority, 39805

• Decision Date: 21 April 1971
• Docket Number: No. 39805,39805
• Citation: 247 So.2d 304
• Parties: Philip F. NOHRR, State of Florida et al., Appellants, v. BREVARD COUNTY EDUCATIONAL FACILITIES AUTHORITY, Appellee.
• Court: Florida Supreme Court

Page 304

247 So.2d 304

Philip F. NOHRR, State of Florida et al., Appellants, v. BREVARD COUNTY EDUCATIONAL FACILITIES AUTHORITY, Appellee.

No. 39805.

Supreme Court of Florida.

April 21, 1971.

Philip F. Nohrr, in pro. per.

Eric W. Pappas of Storms, Pappas & Krasny, Melbourne, for appellee.

Frank L. Watson, Jacksonville, as amicus curiae.

ADKINS, Justice.

This is a direct appeal from the final judgment of the Circuit Court of Brevard County, Florida, validating certain revenue bonds. Fla.Const., art. V, § 4(2), F.S.A.; F.A.R., Rule 2.1(a), (5)(a), 32 F.S.A.; Fla.Stat. § 75.08, F.S.A.

The revenue bonds were authorized under the provisions of Ch. 69--345, Laws of Florida, Fla.Stat. (1969) § 243.18 et seq., F.S.A., known as the 'Higher Educational Facilities Authorities Law,' (hereinafter referred to as the Educational Facilities Law). When this law was enacted the Legislature made a finding that there was an urgent need existing among institutions of higher education in Florida to obtain financing for expansion and improvement of higher educational facilities in order to meet the growing public demand. Fla.Stat. § 243.19, F.S.A. The Educational Facilities Law permitted the various Florida counties, wherever and whenever a need and public purpose was declared, to create a 'County Educational Facilities Authority' which would assist institutions of higher education to obtain the necessary financing to develop and expand their educational facilities.

On December 31, 1969, the Board of County Commissioners of Brevard County, Florida, found that public need existed in the county and that the public interest would be served if a 'County Educational Facilities Authority' (hereinafter referred to as the Authority) was created. The Board then adopted the resolution creating the Authority.

Subsequently, Florida Institute of Technology, a private higher educational institution in Brevard County (hereinafter referred to as F.I.T.) applied to the Authority for assistance in financing the construction at F.I.T. of a dormitory-cafeteria, together with necessary equipment and other facilities. After discussion and negotiation, the Authority adopted a resolution authorizing the issuance of $880,000 in revenue bonds at not more than seven and one-half per cent per annum, the proceeds of which would be used to construct the dormitory-cafeteria at F.I.T. and to pay for all expenses and costs incurred in connection therewith. The rents and other revenues received from the project, as well as the project, are to be assigned, pledged and mortgaged as security for the payment of the principal and interest on the revenue bonds.

A complaint seeking the validation of the revenue bonds was filed by the Authority and the State of Florida filed its answer denying generally the validity of the bonds.

At the final hearing, an intervenor, Philip F. Nohrr (hereinafter referred to as Defendant) was permitted to file an answer in which he attached the validity of the proposed revenue bonds.

Final judgment was rendered validating the bonds and Defendant Nohrr appealed. The State of Florida did not appeal.

The Educational Facilities Law contains no reference to validation proceedings and Defendant says that the Authority was not within the classification of Plaintiffs set forth in Fla.Stat. § 75.02, F.S.A., so as to be authorized to bring validation proceedings.

Fla.Stat. § 75.02, F.S.A., provides that,

'Any county, municipality, taxing district or other political district or subdivision of this state, including the governing body of any drainage, conservation or reclamation district, and including also state agencies, commissions and departments authorized by law to issue bonds, may determine its authority to incur bonded debt or issue certificates of debt. * * *'

This section then authorizes such entities to file a complaint for the purpose of validating bonds or certificates of indebtedness.

The Authority, by statute, is 'a public body corporate and politic' and is constituted 'as a public instrumentality,' Fla.Stat. § 243.21(1), F.S.A.

Fla.Stat. § 75.02, F.S.A., was amended in 1949 to include stage agencies, commissions and departments authorized to issue bonds. When the Authority deemed it necessary to validate the revenue bonds, the Circuit Court was authorized to entertain jurisdiction of the validation proceedings. State v. Inter-American Center Authority, 84 So.2d 9, 11 (Fla.1955). This contention of the Defendant is without merit.

Defendant also urges that the Educational Facilities Law violates the First and Fourteenth Amendments to the United States Constitution and Fla.Const., art. I, § 3, calling for a separation of church and state. In other words, Defendant says that the law permits the authorities to issue revenue bonds in order to aid religious schools, as well as secular schools.

The Educational Facilities Law discloses that no aid is granted at public expense. All expenses are required to be borne by the educational institution involved and no other source of payment, which might otherwise be available for the public generally, is to be used in any manner whatsoever in connection with the project.

The Educational Facilities Law was enacted to promote the general welfare by enabling institutions of higher education to provide facilities and structures sorely needed for the development of the intellectual and mental capacity of our youth.

A state cannot pass a law to aid one religion or all religions, but state action to promote the general welfare of society, apart from any religious considerations, is valid, even though religious interests may be indirectly benefited. If the primary purpose of the state action is to promote religion, that action is in violation of the First Amendment, but if a statute furthers both secular and religious ends, an examination of the means used is necessary to determine whether the state could reasonably have attained the secular end by means which do not further the promotion of religion. Johnson v. Presbyterian Homes of Synod of Fla., Inc., 239 So.2d 256 (Fla.1970). See also, Murray v. Comptroller of Treasury, 241 Md. 383, 216 A.2d 897 (1966) (cert. den. sub nom. Murray v. Goldstein, 385 U.S. 816, 87 S.Ct. 36, 17 L.Ed.2d 55). Walz v. Tax Commission of the City of New York, 397 U.S. 664, 90 S.Ct. 1409, 25 L.Ed.2d 697 (1970).

The Educational Facilities Law does not violate the First Amendment to the United States Constitution nor does it do violence to Art. 1, § 3, of the Florida Constitution.

The next question is whether the Educational Facilities Law violates Fla.Const., art. VII, § 10, by granting the credit of the state or county, or an agency of either, to the revenue bonds issued.

Fla.Stat. Ch. 243, F.S.A., authorizes a board of county commissioners to establish a county educational facilities authority to issue revenue bonds for financing the construction of facilities for private higher educational institutions in the county. Such an authority cannot be created without a declaration of the board of county commissioners that it is needed. Fla.Stat. § 243.31, F.S.A., Fla.Stat. §§ 243.24 and 243.25, F.S.A., authorize the county educational facilities authority to take title, by purchase or gift, of lands, structures, property, etc., in its name or in the name of the private educational institution as its agent; however, after the revenue bonds financing any acquisition or construction of such a project are liquidated the authority must convey the structures or other facilities to the educational institution free and clear of all liens. Fla.Stat. Ch. 243, F.S.A., was enacted after the adoption of the 1968 Constitution.

Fla.Stat. § 243.29, F.S.A. (Educational Facilities Law), provides as follows:

'Revenue bonds issued under the provisions of this part shall not be deemed to constitute a debt or liability of the state or of the county or a pledge of the faith and credit of the state or of any such county, but Shall be payable solely from the funds herein provided therefor from revenues. All such revenue bonds shall contain on the face thereof a statement of the effect that neither the State of Florida nor the authority shall be obligated to pay the same or the interest thereon except from revenues of the project or the portion thereof for which they are issued and that neither the faith and credit nor the taxing power of the State of Florida or of any political subdivision thereof is pledged to the payment of the principal of or the interest on such bonds. The issuance of revenue bonds under the provisions of this part shall not directly or indirectly or contingently obligate the state or any political subdivision thereof to levy or to pledge any form of taxation whatever therefor or to make any appropriation for their payment.' (Emphasis supplied)

Fla.Const., art. VII, § 10 (1968), provides:

'Pledging credit.--

'Neither the state nor any county, school district, municipality, special district, or agency of any of them, shall become a joint owner with, or stockholder of, or give, lend or use its taxing power or credit to aid any corporation, association, partnership or person; but this shall not prohibit laws authorizing:

'(a) the investment of public trust funds;

'(b) the investment of other public funds in obligations of, or insured by, the United States or any of its instrumentalities;

'(c) the issuance and sale by any county, municipality, special district or other local governmental body of (1) revenue bonds to finance or refinance the cost of capital projects for Airports or port facilities, or (2) revenue bonds to finance or refinance the cost of capital projects for Industrial or manufacturing plants to the extent that the interest thereon is exempt from income taxes under the then existing laws of the United States, when, In either case, the revenue bonds are payable solely from revenue derived from the sale, operation or leasing of the projects. If any...