Pfeifer, Iii v City of Little Rock

• Decision Date: 01 November 2001
• Docket Number: 01-302
• Parties: EUGENE M. PFEIFER, III; CITIZENS FIDELITY INSURANCE COMPANY; AND PULASKI COUNTY, ARKANSAS, APPELLANTS, VS. CITY OF LITTLE ROCK, APPELLEE.SUPREME COURT OF ARKANSAS 1 November 2001 APPEAL FROM THE PULASKI COUNTY CHANCERY COURT, THIRD DIVISION NO. EOT 99-5039, HON. HOBSON VANN SMITH, JUDGE, AFFIRMED. JIM HANNAH, Associate Justice Appellant Eugene M. Pfeifer, III, appeals the Pulaski County Chancery Court's grant of summary judgment to Appellee City of Little Rock ("the City") in this eminent domain proceeding taking approximately 2.9 acres of Pfeifer's property for a fair market value of $400,000 for part of the park grounds for the Clinton Presidential Library, Complex, and Park District. The crux of Pfeifer's argument on appeal is that the City did not need all of his property for the library and complex grounds and, that even if all of the property was needed, the creation of the library and complex is not a proper statutory purpose for taking the property. We affirm. The idea for the creation of the library and complex began soon after President William J. Clinton was elected to the presidency in 1992. At that time, a faction of his supporters began work to find property in Arkansas to establish the Clinton Presidential Center to house the presidential letters and archives from his administration. This Clinton Presidential Library Study Commission (the Commission) suggested approximately thirty sites in Little Rock and North Little Rock as possible locations for the complex and surrounding park areas, and ultimately decided on a location along the river front in downtown Little Rock east of Interstate 30. In relation to this proposal, the City began considering this location for a park area to be used in conjunction with the presidential library complex. Ultimately, the City issued 10.5 million dollars in bonds to acquire the proposed property and prepare the property as "site ready" for building in anticipation that the William J. Clinton Presidential Library Foun
• Court: Arkansas Supreme Court

EUGENE M. PFEIFER, III; CITIZENS FIDELITY INSURANCE COMPANY; AND PULASKI COUNTY, ARKANSAS, APPELLANTS VS CITY OF LITTLE ROCK, APPELLEE

No. 01-302

SUPREME COURT OF ARKANSAS

1 November 2001

APPEAL FROM THE PULASKI COUNTY CHANCERY COURT, THIRD DIVISION NO. EOT 99-5039, HON. HOBSON VANN SMITH, JUDGE, AFFIRMED.

JIM HANNAH, Associate Justice

Appellant Eugene M. Pfeifer, III, appeals the Pulaski County Chancery Court's grant of summary judgment to Appellee City of Little Rock ("the City") in this eminent domain proceeding taking approximately 2.9 acres of Pfeifer's property for a fair market value of $400,000 for part of the park grounds for the Clinton Presidential Library, Complex, and Park District. The crux of Pfeifer's argument on appeal is that the City did not need all of his property for the library and complex grounds and, that even if all of the property was needed, the creation of the library and complex is not a proper statutory purpose for taking the property. We affirm.

The idea for the creation of the library and complex began soon after President William J. Clinton was elected to the presidency in 1992. At that time, a faction of his supporters began work to find property in Arkansas to establish the Clinton Presidential Center to house the presidential letters and archives from his administration. This Clinton Presidential Library Study Commission (the Commission) suggested approximately thirty sites in Little Rock and North Little Rock as possible locations for the complex and surrounding park areas, and ultimately decided on a location along the river front in downtown Little Rock east of Interstate 30. In relation to this proposal, the City began considering this location for a park area to be used in conjunction with the presidential library complex.

Ultimately, the City issued 10.5 million dollars in bonds to acquire the proposed property and prepare the property as "site ready" for building in anticipation that the William J. Clinton Presidential Library Foundation (the Foundation), the private funding arm of the library and complex project, would properly bid to lease a portion of the park area on which to build the library and complex buildings. The site encompasses approximately 26.6 acres of land. According to Little Rock Mayor Jim Dailey's deposition testimony, while the Foundation and the City had not made a "commitment" to the project, it was anticipated that this would be the project that would anchor the proposed park grounds. This was further reflected in a letter from James L. "Skip" Rutherford, President of the Foundation, who wrote the City on April 21, 1998, confirming that the library would be located in Little Rock and outlining tentative plans for the lease of the property by the Foundation and the federal government. The letter indicated that the Foundation would lease a portion of the property from the City for ninety-nine years at the rate of $1.00 per year, and that federal government could use the property in perpetuity without transfer of title. However, Dailey also indicated that the City itself was not preparing any plans for a library complex nor consulting with any of the Foundation's planners as Dailey indicated that the City's sole purpose was acquiring the property for the park, with additional plans to follow later.

During 1997, 1998, and 1999, the City passed several resolutions affecting the river front property included in the proposed park areas. In Resolution 10,125 passed on November 7, 1997, the City declared a moratorium for a period of six months to stop the issuance of building permits or acceptance of rezoning applications for "the area of the Clinton Presidential Library" and for other purposes. The description of "The Clinton Presidential Park District" described the following general area as shown in the attached Exhibit B to that Resolution:

South of the Arkansas River, east of Interstate 30, north of the mid-line between 6th Street and Capitol Avenue west of Pepper Street and north of Capitol Avenue east of Pepper Street, and west of Pepper Street south of Capitol Avenue and west of Bond Street north of Capitol Avenue.

The larger map in Exhibit B contains the described property in the resolution. Two other maps were also included with the resolution, including the map in Exhibit A entitled "Proposed Clinton Presidential Library" making up a portion of the total 26 acres proposed to be taken by the City. Resolution 10,374, passed on October 6, 1998, continued the moratorium established in Resolution 10,125 with the same property description but lacking the larger map detailing that property description attached as Exhibit B in the 1997 moratorium resolution. Finally, on April 6, 1999, the City again continued the moratorium in Resolution 10,518, but amended the boundaries as "South of the Arkansas River, east of Interstate 30, north of East 4th Street and west of John Street" as indicated in that resolution's Exhibit B. This amended description minimized the moratorium area; however, in all of these resolutions, the moratorium area continually included all of Pfeifer's property.

The City began acquiring property in 1998 and 1999. On December 15, 1998, the City passed Resolution 10,441 providing authorization to begin eminent domain proceedings. This resolution named three parcels of property, one of which was listed as "115 East Second Street, Eugene M. Pfeifer, III." Several months later after unsuccessfully negotiating with Pfeifer for the sale of his entire tract of property, the City filed a Complaint in Eminent Domain on July 30, 1999, claiming condemnation power over Pfeifer's property totaling 2.944 acres along the southeast border of the proposed library complex site. In its complaint, the City indicated that it was acquiring the property for "the purpose of construction and operation of a public park and other lawful and permitted purposes." Attached to the complaint was a description of Pfeifer's property titled "(The former) MAY SUPPLY COMPANY PROPERTY, 115 East Second Street." The description of the property includes two tracts. The first tract contained 29,109 square feet or .668 acres more or less, and the second tract contained 99,138 square feet or 2.276 acres more or less. This constituted all of Pfeifer's property, and the old May Supply Company Building still exists on the entire piece of property. Pfeifer answered on August 17, 1999, disputing the purpose for which the City asserted for taking the property. Pfeifer did concede, however, that the $400,000 deposited with the court constituted the fair market value of the property.

Per Pfeifer's request, the action was transferred from circuit to chancery court on September 22, 1999, for a determination of whether the Arkansas Legislature delegated to the City the power to condemn private property for the purpose of providing a site for the construction of a private facility. On December 22, 1999, Pfeifer filed a motion for summary judgment arguing that the true purpose of the condemnation proceeding was for the City to acquire property for a "building ready" site for the complex, and that this purpose is not one which the Arkansas Legislature delegated to the City for purposes of eminent domain. Pfeifer argued that, from the beginning, the acquisition of property was not for a city park, but rather only for the complex as indicated by the City's complete lack of planning for the use of the property outside of the plans for the complex. On February 4, 2000, the City filed a cross-motion for summary judgment, arguing that the purpose for which the City wanted the land is a proper public purpose in that the City may take property to establish a park and for other proper purposes. Further, the City argued that Pfeifer's issues are not ripe for review because no final determination had been made about any issues related to the complex or its location. The trial court issued its decision on May 4, 2000, denying both motions for summary judgment. The court determined that while the City claimed that the property would be used for a public park, the City issued bonds to finance the property to be "site ready" for the complex although the City also represented that it would lease the property in an open-bid process despite the Rutherford's proposal that the Foundation would lease the property. As such, the court found that because these facts were contradictory and because the City had provided no plans for its intended use of the park, the court could not determine whether the City would, in fact, use the land for a public park, although the concept of a public park might incorporate such structures and purposes as those proposed in the complex and surrounding grounds. Furthermore, the court also indicated that the parties missed the point as to whether the taking was for "other lawful purposes" as allowed under Ark. Code Ann. § 18-15-301(a) (Supp. 2001).

Given this ruling by the court, the City amended its complaint on May 12, 2000, indicating that the statutory grant of power of eminent domain to the City encompassed such an act of condemning property to create a park, to be known as the William Jefferson Clinton Presidential Park, which is intended to include the library and museum as well as other structures and recreational and educational facilities. The City more fully declared its intentions to the property including that it intended to maintain ownership while leasing portions to selected entities. The City once again attached the description of all of Pfeifer's property as an exhibit to the complaint. Pfeifer answered on May 31, 2000, and denied that the proposed purpose is proper, that all of his property is necessary to accomplish the proposed purpose, that use of the property as a residence is a public purpose, and that the cited statutes allow the City to condemn his property for such proposed purposes. Pfeifer once again conceded that $400,000 was...