State v. Dade County by Bd. of County Com'rs, Dade County Port Authority, 36867
Decision Date | 08 May 1968 |
Docket Number | No. 36867,36867 |
Citation | 210 So.2d 200 |
Parties | STATE of Florida et al., Appellants, v. COUNTY OF DADE, Florida, By its BOARD OF COUNTY COMMISSIONERS Acting as DADE COUNTY PORT AUTHORITY, Appellee. |
Court | Florida Supreme Court |
Richard E. Gerstein, State Atty., and Charles D. Edelstein, Asst. State Atty., for the State.
Paul & Sams, Miami, for Dan Paul.
Thomas C. Britton, Stuart Simon, Miami, Mitchell, Petty & Shetterly, New York City, for appellee.
This is an appeal from a decree validating revenue certificates.
Phenomenal growth of the Miami International Airport required considerable further expansion and in 1967 the County of Dade, acting through the Dade County Port Authority, which will hereafter be referred to as the 'Authority,' entered into what might be termed a revised agreement with National Airlines, hereafter referred to as 'National.' The sum and substance of the revised agreement is for the Authority to lease to National for a period of thirty (30) years about seventy-five (75) acres of land of the airport for a ground rent of something more than $350 per acre as an annual rent and in addition, National is to pay a rental on the improvements to be erected thereon sufficient to retire revenue producing bonds of $34,640,000 over the thirty (30) year period. This is in fact a conventional lease agreement designed to finance buildings on the leased area to accommodate National's expansion, which in turn also contributes primarily to the continued development of Miami International Airport. This lease covers a relatively small part of the entire airport.
The lease is necessarily lengthy and it must of necessity be comprehensive. We are, however, not concerned and it's not our function to override the business judgment of the contracting parties (see Town of Medley v. State, 162 So.2d 257, Fla.1964). We have, however, examined it to the point of ascertaining that on the whole it is an agreement entered at arm's length for the mutual advantage of the two contracting parties and the whole undertaking is for a public purpose. The rental payments are necessarily scheduled to enable the Authority to issue revenue bonds in such fashion as to render them acceptable to the money market.
The State, through the State's Attorney and the interested taxpayer, the Honorable Dan Paul, has challenged the decree of validation in that it violates Section 10, Article IX, of the Florida Constitution, F.S.A., which reads as follows:
Frankly we do not feel that this is an open question. This Court has consistently gone along with the Authority as appears from our opinions cited herein. National, as in the previous cases, is not just a private corporation which might be classified as a newcomer. It has demonstrated its experience and it likewise is a public service corporation engaged in serving the public in a great transportation system. To reverse our field now and strike down this decree would be difficult to understand in the light of our previous holdings in this very situation. We are still convinced that this overall project of the Dade County Airport is a public project. To now hold that we were wrong and invalidate this decree would naturally perplex thoughtful and concerned people as well as create great consternation. The tremendous growth of this airport lends support to our position rather than demonstrates error.
The interested taxpayer in the proceedings before the Chancellor indulged the hypothesis that our decision in the case of State of Florida v. Jacksonville Port Authority, 204 So.2d 881 (1967), had the effect of receding from the line of cases which we have decided on this subject. In this he is very much in error. The Jacksonville Port Authority did not persuade this Court that the functionary was sufficiently public in nature as to warrant them in approving the plan of financing. Likewise is there a distinction in State of Florida et al. v. Manatee County Port Authority, 193 So.2d 162 (Fla.1966), from the one now before us. In the Manatee case the overall purpose was private rather than public.
It is our conclusion that we upheld the validity of this act in State of Florida et al. v. Dade County, 157 Fla. 859, 27 So.2d 283 (1946), and in the other cases which have come to us under this act from the identical airport. See also Seaboard Air Line R. Co. v. Peters, 43 So.2d 448, Fla.1949. We have upheld validations under similar lease agreements. Therefore we see no reason to condemn this one.
We likewise distinguish this decree from our holding in State of Florida et al. v. Clay County Development Authority, 140 So.2d 576 (1962). In the latter case the Court was of the opinion that the overall purpose was private and not public because there they were dealing with a private corporation with the thought of engaging in the plastic business, a private as distinguished from a public purpose. In no sense was that a public project.
The interested taxpayer has further questioned the validity of the agreement as violative of Sections 1, 5 and 10 of Article IX and Section 16 of Article XV of the Florida Constitution. We have duly examined the whole record and we are not persuaded that these contentions have merit. We have likewise considered the other questions posed and we find that they relate to isolated and fragmentary elements in the lease agreement and when standing alone they might be offensive, but considering the broad scope of the entire lease agreement we are convinced that the facility will be built and serve as part and parcel of the public functionary, to-wit the airport. There is a complete absence of any obligation on Dade County to levy any tax to support this endeavor. It is our conclusion that this undertaking is no different in principle and character to that of the other issues which have been brought to this Court pursuant to this act and the amended acts of the Legislature.
Appellants object to the plan to construct parking facilities, a restaurant and training school. We will not condemn this project because the contracting parties concluded in their judgment all of these were essential and added to the effectiveness of the prime purpose. This falls in their area of judgment so long as we find that the expenditure for them is incidental to the prime objective.
We consider an objection made by the State's Attorney to this mode of financing and we quote his brief:
Our answer to this criticism lies in the fact that this Court is not a policy-making institution. In retrospect the machinery for this kind of undertaking stems from the policy of the Legislature by creating the authority, granting the powers and determining the purpose. It is the duty of the Court to honor the legislative act unless we are convinced beyond a reasonable doubt that it contravenes the Constitution of our State. Suffice it to say here the cited cases in this opinion show that this Court many years ago approved the validity of the enabling act. Be it remembered also that the Legislature has met many times and not only seen fit to let the act stand, but in their wisdom they have re-enacted it with suitable changes. It would be presumptuous and most improper for us to invade the prerogative of the Legislature. In spite of all the objection which is registered relative to the parking facilities, restaurant and training school, we can well understand that these can be facilities essential to more effectively carrying out the real purpose of the airport facility. Objection is made because National is to have the exclusive use and control of this facility and that they will no doubt earn profits on the same. It is quite obvious that National must make a profit to stay in business. It is a well-known fact that they are not running agreat airline as an eleemosynary institution. On the other side the Authority has an obligation to avail itself of competent and dependable agencies such as National, as chosen in this case, to perform this public function for the use and benefit of the public. It would seem to follow that National must of necessity have control of the premises upon which they are paying the lease.
This is a common method used the world over to finance public improvements. There are some areas where the money is to be found and there are other areas where the know-how is to be found and one of the many functions of government is to utilize these two in promoting those functions which are so highly essential and necessary for the public and as...
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