City of Huntington Woods v. City of Detroit

761 N.W.2d 127, 279 Mich. App. 603
CourtMichigan Court of Appeals
DecidedJuly 15, 2008
DocketDocket 276021
StatusPublished
Cited by63 cases

This text of 761 N.W.2d 127 (City of Huntington Woods v. City of Detroit) is published on Counsel Stack Legal Research, covering Michigan 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 Huntington Woods v. City of Detroit, 761 N.W.2d 127, 279 Mich. App. 603 (Mich. Ct. App. 2008).

Opinion

TALBOT, J.

Defendant, city of Detroit, appeals as of right the order granting plaintiffs’, city of Huntington Woods, Bonnie Sheehy Nielsen, Kellie Treppa, and John Steinberg, motion for summary disposition and request for a declaratory judgment pertaining to the sale of the Rackham Golf Course. 1 Flaintiffs cross-appeal certain *606 parts of the trial court’s order. We affirm in part, reverse in part, and remand for further proceedings.

I. FACTUAL HISTORY AND BACKGROUND

This lawsuit involves a dispute concerning the authority of defendant to sell or convey its interest in the Rackham Golf Course, which comprises approximately 121 acres and is situated in plaintiff city of Huntington Woods. Originally, this parcel was part of a recorded plat identified as the “Bronx Subdivision.” In 1922, on petition by the Baker Land Company, a portion of the land platted within the Bronx Subdivision property, which now comprises the Rackham Golf Course, was removed from the plat by vacation of that part of the plat by order of the Oakland Circuit Court. Approximately six months after entry of the order removing this portion of the property from the subdivision plat, the owner, the Baker Land Company, deeded the property to Horace Rackham and his wife, Mary Rackham (hereinafter referred to as the Baker deed). The remaining portion of the Bronx Subdivision was developed as residential property. At the time of this conveyance, it appears there were no particular improvements or development with regard to the property. There is no dispute that this conveyance was in fee simple and contained the following relevant provision: “It is part of the consideration hereof that the land transferred by this deed shall be used only as a public park or golf course or for other similar purpose.” The Rackhams constructed an 18-hole golf course, with a clubhouse, on the property.

In 1924, the Rackhams deeded the improved property, containing the golf course and the clubhouse, to defendant (hereinafter referred to as the Rackham deed). The Rackham deed included several conditions, *607 along with a reversionary clause. Specifically, the Rack-ham deed provided, in relevant part:

Provided always, however, that these presents are upon the several express conditions and limitations following, to-wit: FIRST: That the said premises shall be perpetually maintained by the said party of the second part exclusively as a public golf course for the use of the public under reasonable rules, regulations and charges to be established by second party. SECOND: That the course and the turf thereon shall be maintained at a standard condition at least equal to its condition at the time of the acceptance of this grant. THIRD: That beverages containing any alcoholic content whatever shall not he brought upon, kept, used or sold on said premises by any party hereto or by any person or persons, firm or corporation. FOURTH: First parties hereby reserve the right to restrict or limit the use of the premises hereby conveyed in such manner as to them shall seem proper in order to carry out and fulfill the purpose for which said course was built and improvements made. FIFTH: That if any of the foregoing conditions shall be broken then the estate hereby granted shall be forfeited and the said premises shall revert to the parties of the first part and their heirs and assigns who shall thereupon have the right to re-enter and re-possess the same.

The parties acknowledge that since this conveyance, in 1924, defendant has continuously operated and maintained the property as a public golf course.

II. PROPERTY BIDS

In 2006, the Detroit Planning and Development Department received an unsolicited inquiry from Premium Golf, LLC, seeking to acquire defendant’s interest in the Rackham Golf Course. Defendant communicated this offer to the Detroit City Council, indicating:

We are in receipt of a request from Premium Golf LLC, a Michigan Limited Liability Company, to purchase the ... property for the amount of $5,000,000. Premium Golf LLC *608 has offered to purchase the property and continue to use it as a golf course. Given the City’s financial condition and in an effort to meet our land sales projections we are recommending this sale.

Concerned that maximum value be obtained by defendant for the property, an additional term of the proposed agreement indicated that defendant would receive substantial remuneration beyond the referenced sale price if Premium Golf, LLC, were successful in removing the use conditions and was able to develop the property for residential construction. 2 In response to questions raised by the city council, defendant’s planning and development department indicated:

The City received an unsolicited offer from Premium Golf, LLC to purchase Rackham Golf Course with the deed restriction in tact [sic] with the immediate plan to continue to operate it as a golf course. Premium Golf is in negotiations with the Rackham heirs to buy out the deed restriction.

While the offer from Premium Golf, LLC, was under consideration, plaintiff city of Huntington Woods also submitted an unsolicited bid to purchase the property from defendant for the sum of $5,500,000 contingent on the approval of a bond issue by voters.

After this lawsuit was initiated, defendant’s planning and development department authorized the issuance of a request for proposals (hereinafter referred to as the RFP), which basically sought bids for the acquisition of the golf-course property. The RFP provided, in pertinent part:

The intent of this Request for Proposal is to retain an experienced and qualified Developer who has the potential *609 and financial capacity to purchase the Rackham Golf Course for the existing use or demonstrate the ability to obtain re-zoning for other uses....
The City of Detroit has established a minimum bid price of $6,250,000 for sale of the Rackham Golf Course .... In the event that the respondent is able to remove the deed restriction, the City of Detroit will require a minimum of $5,000,000 in additional compensation.
There is an existing deed restriction that the property be maintained as a public golf course.

Shortly thereafter, plaintiff city of Huntington Woods, responding to defendant’s RFR authorized the submission of an offer to purchase the property, with appurtenances, for $6.25 million.

III. LOWER-COURT PROCEEDINGS

Plaintiffs filed their initial complaint on June 20, 2006, seeking a declaratory judgment. Shortly thereafter, plaintiffs filed an amended complaint for a declaratory judgment and an injunction. Plaintiffs alleged that defendant held the golf course in public trust subject to restrictions regarding its use. Plaintiffs argued that defendant’s attempt to sell the property to a private entity was contrary to the deed restrictions and, therefore, precluded.

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Cite This Page — Counsel Stack

Bluebook (online)
761 N.W.2d 127, 279 Mich. App. 603, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-huntington-woods-v-city-of-detroit-michctapp-2008.