Charlottesville Fitness Operators Ass'n v. Albemarle County

CourtSupreme Court of Virginia
DecidedJanuary 10, 2013
Docket110741
StatusPublished

This text of Charlottesville Fitness Operators Ass'n v. Albemarle County (Charlottesville Fitness Operators Ass'n v. Albemarle County) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Charlottesville Fitness Operators Ass'n v. Albemarle County, (Va. 2013).

Opinion

PRESENT: Kinser, C.J., Goodwyn, Millette, Mims, McClanahan, and Powell, JJ., and Russell, S.J.

CHARLOTTESVILLE AREA FITNESS CLUB OPERATORS ASSOCIATION, ET AL. OPINION BY v. Record No. 110741 JUSTICE S. BERNARD GOODWYN January 10, 2013 ALBEMARLE COUNTY BOARD OF SUPERVISORS, ET AL.

FROM THE CIRCUIT COURT OF ALBEMARLE COUNTY Cheryl V. Higgins, Judge

CHARLOTTESVILLE AREA FITNESS CLUB OPERATORS ASSOCIATION, ET AL.

v. Record No. 112233

CHARLOTTESVILLE CITY COUNCIL, ET AL.

FROM THE CIRCUIT COURT OF THE CITY OF CHARLOTTESVILLE Cheryl V. Higgins, Judge

Charlottesville Area Fitness Club Operators Association,

Atlantic Coast Athletic Clubs of Virginia, Inc., and Gym Quest,

Inc., d/b/a Gold's Gym Charlottesville (collectively, the

Fitness Clubs) appeal from judgments entered by the Circuit

Courts of the City of Charlottesville and the County of

Albemarle sustaining demurrers to their declaratory judgment

actions challenging the lease of public property by the City of

Charlottesville to the Piedmont Family YMCA, Inc., (YMCA) and a

use agreement governing the leased property entered into

between the City, Albemarle County, and the YMCA. Because we conclude the plaintiffs failed to assert a justiciable

controversy, we will vacate the circuit courts’ judgments and

dismiss the declaratory judgment actions.

Background 1

In October 2007, the City of Charlottesville advertised

for bidding a proposed lease of property located in McIntire

Park (the Lease) for the purposes of constructing and operating

a non-profit youth and family community recreation facility

(the Facility). 2 The City required that any bids for the lease

be received by October 15 and include a proposed use agreement

setting forth the terms, conditions and requirements for

operation of the Facility (the Use Agreement). The YMCA

submitted the only bid for the lease and, after public

hearings, the leasing of the property was approved by ordinance

adopted by the Charlottesville City Council on December 17,

2007. The YMCA subsequently entered into the Lease with the

1 Although we present this background to provide a context to the proceedings instituted in each case, our analysis of each case is limited to the allegations specific to that case. 2 The notice was advertised on October 4 and October 11 in The Daily Progress pursuant to Code § 15.2-2101(A), which requires the City to advertise notice of the ordinance proposing a lease of property described in Code § 15.2-2100 once a week for two successive weeks in a newspaper having general circulation. Code § 15.2-2100(B) requires the City to publicly receive bids for the lease of public property after due advertisement and prohibits the City from leasing such property for a period longer than forty years.

2 City of Charlottesville, and the Use Agreement with the City

and Albemarle County, both dated January 15, 2008.

Pursuant to the Lease, the City agrees to lease, for an

initial term of 40 years at a nominal rent of $1.00 per year,

approximately three to five acres of property located on the

western side of McIntire Park, the exact boundaries of the

leasehold will be determined by the City following completion

of a "Master Plan" for McIntire Park. The Lease grants the

YMCA permission to occupy the property "for the purposes of

constructing and operating a fitness and recreation center with

such amenities as are provided for in the Use Agreement" and

provides that "the use of the Facility shall be primarily for

the benefit of residents of the City of Charlottesville and

Albemarle County, and non-resident members of [the YMCA]."

The Use Agreement, incorporated as an exhibit to the

Lease, obligates the County to "make a future capital

contribution of $2,030,000 for construction of the Facility"

and the YMCA to "diligently conduct a capital campaign to

solicit contributions from private donors to pay for the cost

of construction of the Facility." The Use Agreement gives the

City and the County each the right to appoint two members to

the YMCA's board of directors and provides for an anticipated

fee structure for residents of the City and County as well as

financial assistance to be provided to residents by the YMCA

3 based on specified income criteria. It also describes the

components and core functions of the Facility and anticipated

hours of operation. Additionally, the Use Agreement states

that the County tentatively set aside $1,250,000 in its capital

budgeting for construction of a family aquatics center and that

the City may also commit to a future capital contribution of

$1,250,000 for that purpose, including a competitive pool with

specified access for the Charlottesville High School swim team.

A. Fitness Clubs' Action Against Albemarle County Board of Supervisors

The Fitness Clubs instituted their declaratory judgment

action against the Albemarle County Board of Supervisors and

the County's chief executive officer, Robert W. Tucker, Jr.

(collectively, the Board), in May 2010. 3 They claim the Board

should have issued either a "Request for Proposals" or an

"Invitation to Bid" for "the provision of fitness services to

County residents at below market rates in exchange for a $2

million payment" pursuant to the Virginia Public Procurement

Act (VPPA), Code §§ 2.2-4300 et seq. According to the Fitness

Clubs, had the Board done so, "one or all of [the Fitness

Clubs] would have responded by submitting a bid and a proposal

which would provide the County with superior services at a cost

3 The Fitness Clubs filed an initial complaint on May 12, 2010, and an amended complaint on September 13, 2010. Charlottesville Area Fitness Club Operators Association was omitted in the amended complaint.

4 to the County less than that provided for in the Use

Agreement."

In Count I, the Fitness Clubs contend the Board's "award

under the Use Agreement to the YMCA" is a contractually

obligated payment for procurement of services "not authorized

by [Code §] 15.2-953." 4 In Count II, the Fitness Clubs contend

the Board made its "award under the Use Agreement to the YMCA

without regard to the requirements of the VPPA." In both

Counts I and II, the Fitness Clubs allege the Board's actions

were "arbitrary and capricious," "exceeded the scope of the

authority of the Board of Supervisors," and "violated [the

Fitness Clubs'] right to equal protection and due process under

the Fifth and Fourteenth Amendments to the Constitution of the

United States, and [Article I], Sections 3 and 11 of the

Constitution of Virginia." The Fitness Clubs seek a

declaration that the actions of the County "are void on each

and all of those grounds" and "that such payment may not be

made."

In Count III, the Fitness Clubs contend the Board's

"decision to award the Use Agreement to the YMCA" was a "de

facto disqualification of [the Fitness Clubs] as prospective

4 Code § 15.2-953 permits localities to "make appropriations of public funds . . . to any charitable institution or association, located within their respective limits or outside their limits if such institution or association provides services to residents of the locality."

5 bidders or offerors on that contract" and "in violation of the

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