City of Hammond v. Marina Entertainment Complex, Inc.

733 N.E.2d 958, 2000 Ind. App. LEXIS 1202, 2000 WL 1101039
CourtIndiana Court of Appeals
DecidedAugust 8, 2000
Docket56A05-9902-CV-87
StatusPublished
Cited by9 cases

This text of 733 N.E.2d 958 (City of Hammond v. Marina Entertainment Complex, Inc.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Hammond v. Marina Entertainment Complex, Inc., 733 N.E.2d 958, 2000 Ind. App. LEXIS 1202, 2000 WL 1101039 (Ind. Ct. App. 2000).

Opinion

OPINION

FRIEDLANDER, Judge

This appeal arises out of an eminent domain proceeding initiated in 1995 by the City of Hammond, Indiana against Great Lakes Inland Marina, Inc. (fee owner) and Marina Entertainment Complex, Inc. (lessee/optionee) [the Landowners]. At that time, the Landowners held a 13.679-acre parcel of real property [the parcel] located in Hammond adjacent to the city-owned Hammond Marina, which was the anticipated site for the development of a riverboat casino on Lake Michigan. The City of Hammond sought to condemn a permanent and a temporary construction easement on the parcel in order to build an overpass to the Hammond Marina. The overpass was part of an overpass and public roadway project planned by the City. At the conclusion of trial, the jury returned a verdict in excess of $5.2 million in favor of the Landowners. The trial court entered judgment in accordance with the verdict. The City of Hammond now appeals. 1

The following restated issues are presented in this appeal:

1.Did the trial court err in allowing the Landowners to present damages evidence for loss of access resulting from the closing of Calumet Avenue, and was the verdict contrary to law in that damages were awarded for an adverse change in the property’s highest and best use caused by the closing of Calumet Avenue?
2. Did the trial court err in allowing testimony regarding the enhanced value of the Landowners’ property based on its proximity to the Hammond Marina, where a riverboat casino project was being developed?
3. Did the trial court err in allowing the Landowners to present evidence pertaining to a letter of intent entered into between the City and one of the applicants for the casino license, and did error occur when the Landowners argued in closing that the owner of Great Lakes Inland Marina, Inc. “got screwed” when the City sought to preserve the possible financial benefits of that letter of intent by closing Calumet Avenue?

We affirm.

The facts most favorable to the judgment are as follows. Michael Strain formed Great Lakes Inland Marina, Inc. and, in late 1989 or early 1990, it purchased the parcel from the Penn Central Railroad for $200,000. The parcel was located west of Calumet Avenue between the Conrail and the CSX railroad tráfcks and only a few hundred feet south, along Calumet Avenue, of the lakefront where the Hammond Marina was to be located. Great Lakes Inland Marina, Inc. thereafter went into business and provided boat storage services to the Hammond Marina, which opened in either 1990 or 1991.

After riverboat gambling legislation was introduced in the Indiana General Assembly in January 1993, Great Lakes Inland Marina, Inc. sent out letters advising that it had the only privately owned property near the Hammond Marina that might be used for a riverboat gambling development. On February 18, 1993, Great Lakes Inland Marina, Inc. and Alan Gull, a real *961 estate developer acting for and under the corporate name of Marina Entertainment Complex, Inc., entered into an agreement that granted Marina Entertainment Complex, Inc. an exclusive option to lease or purchase the parcel.

The gaming bill that provided for a riverboat casino to be located at the Hammond Marina went into effect in July 1993. Numerous companies hoped to obtain the Hammond riverboat gaming license.

The City formed a committee for the purposes of considering candidates for the Hammond license and recommending which of the candidates the City should endorse. The committee sent out a request for qualifications to candidates interested in securing the City’s endorsement. Lake Michigan Charters (now known as the Empress), Carnival, Boyd, Mirage, and Gamma responded to the request for qualifications. In September 1993, the City entered into an agreement (Letter of Intent) with Lake Michigan Charters to endorse Lake Michigan Charters and to support its effort before the Indiana Gaming Commission to obtain the Hammond gaming license. Pursuant to the agreement, the City would endorse Lake Michigan Charters in return for three percent of the gross gaming revenues and payment of $3 for each casino patron’s car parked on city-owned property.

After a Hammond gaming referendum passed in November 1993, Marina Entertainment Complex, Inc. advised Great Lakes Inland Marina, Inc. that it was exercising the lease/purchase option on the parcel. Marina Entertainment Complex, Inc. thereafter signed a lease agreement. Pursuant to the lease, which was for a ten-year term and contained other terms and conditions, Marina Entertainment Complex, Inc. would pay Great Lakes Inland Marina, Inc. rent of $25,000 per month for the first two years and rent of $200,000 per month for the next eight years. The lease further provided for an option to purchase the parcel during the term of the lease. Pursuant to the terms of the lease, Marina Entertainment Complex, Inc. could purchase the parcel for $10 million during the first year of the lease, but the purchase price would increase by $1 million each subsequent year thereafter.

The lease commenced on January 1, 1994. By April 1994, three of the four gaming applicants for the Hammond license had made it known that they intended to use the parcel for their gaming development. The plans of the three gaming applicants showed Calumet Avenue open to the lakefront in order to facilitate their developments. Great Lakes Inland Marina, Inc. also began to develop potential plans, including placing a parking lot on the parcel.

In April 1994, Hammond commenced a condemnation suit against the Landowners. The City sought two easements on the parcel in order to build an' overpass to the Hammond Marina. The Landowners contended at that time that Hammond was condemning their property not. for the public good, but for the Empress’s benefit. According to the Landowners in this appeal:

The basis for the property owners’ contention [in this regard] was the contract between Hammond and the Empress (“Letter of Intent”) that required the Empress to. design, build and pay for the overpass including any expenses and damages incurred in condemnation suits. Hammond countered that the overpass project and the casino project were separate and distinct projects and were not connected in any way, notwithstanding the .fact that the Empress was paying for the condemnation. Ultimately, an appeal on that issue was commenced by the Landowners. In November 1994, just weeks before trial on the first condemnation suit, Hammond dismissed the suit without prejudice. The trial court awarded fees and expenses to the Landowners, which was affirmed on appeal.

Appellee’s Brief at 5 (footnotes omitted).

On January 19, 1995, the City of Hammond’s Board of Public Works and Safety *962 adopted a resolution (the Acquisition Resolution) that approved the purchase or condemnation of two easements on the parcel in order to build the overpass: 1) a permanent easement for an overpass right-of-way across a 0.458-acre portion of the parcel, and 2) a temporary construction easement on an adjacent 0.559-acre portion of the parcel.

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Cite This Page — Counsel Stack

Bluebook (online)
733 N.E.2d 958, 2000 Ind. App. LEXIS 1202, 2000 WL 1101039, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-hammond-v-marina-entertainment-complex-inc-indctapp-2000.