Cheape v. Town of Chapel Hill

359 S.E.2d 792, 320 N.C. 549, 1987 N.C. LEXIS 2342
CourtSupreme Court of North Carolina
DecidedSeptember 3, 1987
Docket96PA87
StatusPublished
Cited by43 cases

This text of 359 S.E.2d 792 (Cheape v. Town of Chapel Hill) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cheape v. Town of Chapel Hill, 359 S.E.2d 792, 320 N.C. 549, 1987 N.C. LEXIS 2342 (N.C. 1987).

Opinion

FRYE, Justice.

Plaintiffs raise four issues before this Court. Initially, they contend that the case should be remanded to the Superior Court, Orange County, for a determination of their standing to bring the instant action. On the merits, they argue that Chapter 961, Session Laws of 1984, is unconstitutional because it is a local act regulating trade and because it permits the Town of Chapel Hill *551 to engage in a joint venture not for a public purpose, acts prohibited by the North Carolina Constitution. Plaintiffs also specifically attack the sale of air rights by defendant Town to Fraser Development Company of North Carolina as being an invalid transaction. We hold:

1) plaintiffs’ contention that their standing remains an issue is without merit;
2) Chapter 961, Session Laws of 1984, does not regulate trade in violation of Article II, section 24(j) of the North Carolina Constitution;
3) the agreement between the Town of Chapel Hill and Fraser Development Company does not create a joint venture;
4) the Town of Chapel Hill has the power to convey air rights as discussed herein.

On 22 June 1984, the General Assembly ratified House Bill 1563, which accordingly became Chapter 961, Session Laws of 1984. This act (hereinafter called “The Chapel Hill Act”) provides as follows:

An Act to allow the Town of Chapel hill to participate IN ECONOMIC DEVELOPMENT PROJECTS.
The General Assembly of North Carolina enacts:
Section 1. Chapter IV of the Charter of the Town of Chapel Hill, being Chapter 473, Session Laws of 1975, is amended by adding a new Article to read:
“Article 4.
“Economic Development Projects.
“Sec. 4.20. Definition. As used in this Article “economic development project” means an economic capital development project within a certain defined area or areas of the Town as established by the Town Council, comprised of one or more buildings or other improvements and including any public and/or private facilities. Said project may include programs or facilities for improving downtown development, “pocket of poverty” or other federal or State assistance programs which the Town Council determines to be in need of *552 economic capital development or revitalization and which qualify for capital assistance under applicable federal or State programs.
“Sec. 4.21 Authorization.
(a) In addition to any other authority granted by law, the Town of Chapel Hill may accept grants, expend funds, make grants or loans, acquire property and participate in capital economic development projects, which the Town Council determines will enhance the economic development and revitalization of the Town in accordance with the authority granted by this Article. Such project may include public and/or private buildings or facilities, financed in whole or in part by federal or State grants (including but not limited to urban development action grants), and may include any capital expenditures which the Town Council finds necessary or desirable to complement the project and improve the public tax base and general economy of the Town. By way of illustration, but not limitation, such a project may include the construction or renovation of any one or combination of the following projects:
(1) Privately owned hotel.
(2) Privately owned office building.
(3) Housing.
(4) Parking facilities.
Such project may be partially financed with Town funds received from federal or State sources and being granted or loaned to the private owner for said construction or renovation; in addition, other Town funds from any sources may be used for acquisition, construction, leasing and/or operation of facilities by the town for the general public and for capital improvements to public facilities which will support and enhance the private facilities and the general economy of the Town.
(b) When the Town Council finds that it will promote the economic development or revitalization in the Town, the Town may acquire, construct and operate or participate in the acquisition, construction, ownership and operation of an *553 economic development project or of specific buildings or facilities within such a project and may comply with any State or federal government grant requirements in connection therewith. The Town may enter into binding contracts with one or more private parties or governmental units with respect to constructing, owning or operating such a project. Such a contract may, among other provisions, specify the responsibilities of the Town and the developer or developers and operators or owners of the project, including the financing of the project. Such a contract may be entered into before the acquisition of any real property necessary to the project by the Town or the developer or other parties.
“Sec. 4.22. Property Acquisition. An economic development project may be constructed on property acquired by the developer or developers, or on property directly acquired by the Town, or on property acquired by the redevelopment commission while exercising the powers, duties and responsibilities pursuant to G.S. 160A-505.
“Sec. 4.23. Property Disposition. In connection with an economic development project, the Town may convey interests in property owned by it, including air rights over public facilities, as follows:
(1) If the property was acquired under the urban redevelopment law, the property interests may be conveyed in accordance with that law.
(2) If the property was acquired by the Town directly, the Town may convey property interests by any procedure set forth in this charter, or the general law or by private negotiation or sale.
“Sec. 4.24. Construction of the Project. A contract between the Town and the developer or developers may provide that the developer or developers shall be responsible for the construction of the entire economic development project. If so, the contract shall include such provisions as the Town Council deems sufficient to assure that any public facilities included in the project meet the needs of the Town and are constructed at a reasonable price. Any funds loaned by the Town pursuant to this paragraph to a private developer or *554 developers and used by said developer or developers in the construction of a project hereunder on privately owned property shall not be deemed to be an expenditure of public money.
“Sec. 4.25. Operation. The Town may contract for the operation of any public facility or facilities included in an economic development project by a person, partnership, firm or corporation, public or private.

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Bluebook (online)
359 S.E.2d 792, 320 N.C. 549, 1987 N.C. LEXIS 2342, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cheape-v-town-of-chapel-hill-nc-1987.