City of Midwest City v. House of Realty, Inc.

2008 OK 28, 198 P.3d 886, 2008 Okla. LEXIS 32, 2008 WL 880537
CourtSupreme Court of Oklahoma
DecidedApril 1, 2008
Docket104349, Consol. w/104526
StatusPublished
Cited by11 cases

This text of 2008 OK 28 (City of Midwest City v. House of Realty, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Midwest City v. House of Realty, Inc., 2008 OK 28, 198 P.3d 886, 2008 Okla. LEXIS 32, 2008 WL 880537 (Okla. 2008).

Opinions

WATT, J.

#1 The companion appeals are considered together and consolidated for the sole purpose of promulgating one opinion 1 addressing the three issues presented. The first is whether the landowner's due process 2 rights were denied by the City's publication notice of meetings at which blight 3 determinations were adopted. Second, whether the City complied substantially with the statutory requirements of 11 0.8.2001 § 38-106(B) 4 providing that a municipal governing body shall 5 not approve an urban renewal plan unless the governing body has determined, by resolution, that the area is blighted and [890]*890may acquire properties subject to the plan only after its approval. Finally, whether the City acted arbitrarily, capriciously and in bad faith in making the blight determination.

T2 As to the first issue, we hold that the City complied with due process requirements in providing publication notice6 of meetings at which blight determinations were made. The determination is supported by: Isaacs v. Oklahoma City, 1966 OK 267, 437 P.2d 229,7 cert. demied, 389 U.S. 825, 88 S.Ct. 68, 19 L.Ed.2d 79 (1967) in which this Court recognized that blight determinations are legislative rather than adjudicatory proceedings 8 coupled with a long line of Oklahoma jurisprudence holding that due process protections do not apply in legislative proceedings; 9 the lack of any requirement in either the Local Development Act or the Urban Renewal Act for personal notice of blight proceedings; 10 and the landowner's opportunity to enjoy the full range of due process protec[891]*891tions in the condemnation proceedings.11

T3 Second, under the facts presented, it is clear that blight determinations were made before the urban renewal plan was adopted and the City renewed its attempt to condemn the property at issue after the plan's adoption. Therefore, we determine that the City complied substantially with the statutory requirements of 11 0.8.2001 § 38-106(B).12

{4 Finally, we may overturn the City's blight determinations only if, in making the findings, it acted arbitrarily or capri-clously. 13 There is no evidence of abuse. Rather, we hold that the record contains sufficient evidence to support a finding of blight.

FACTS AND PROCEDURAL HISTORY14

T5 In City of Midwest City v. House of Realty, Inc. [Realty IJ, 2004 OK 56, 100 P.3d 678, the Court held that the City did not possess authority to exercise powers of eminent domain for purposes of economic development and the removal of blighted property under the Local Development Act, 62 0.8. 2001 § 850, et seq. We held in House of Realty, Inc. v. City of Midwest City [Realty II], 2004 OK 97, 109 P.3d 314 that: 1) the issue of whether the City could use a general power of eminent domain combined with the Local Development Act was rendered moot by the City's abandonment of attempts to condemn the landowner's property; 2) the cause should be remanded for a determination of whether authority existed exempting the public trust from the general prohibition against operating a retail outlet contained in 60 0.S$.2001 § 178.4; 15 and 8) the amended and restated trust indenture of the public trust required a vote of the people before monies derived from the trust's compounded principal could be invested in the economic development project.

T6 The companion appeals represent the third and fourth causes arising originally from a joint plan of the City and the Midwest City Memorial Hospital Authority (Hospital Authority) to redevelop approximately eighty acres on S.E. 29°" Street (development area) in Midwest City. In these appeals, the only portion of the tract subject to condemnation is the landowner's one and one-forth (1 1/4) acre holding located near the northeast corner of S.E. 298,

T 7 We recognized in Realty I that the City made a determination that the area at issue was blighted as early as May 28, 2002.16 In [892]*892response to the decisions in Realty I and Realty II, the City adopted Resolution No. 2004-19 on September 14, 2004. The resolution acknowledged that blight, consistent with the definition encompassed within Oklahoma's urban renewal laws, existed in the development area. The City also confirmed the May 28, 2002, finding of blight and directed that an urban renewal plan be prepared for the development area.17 On Octo ber 12, 2004, the City adopted Resolution No. 2004-25, which specifically referred to the May 28, 2002, finding of blight and cited Realty I for the proposition that the Oklahoma urban renewal laws allowed municipalities to acquire properties through condemnation. Furthermore, the resolution adopted the Midwest City Downtown Urban Renewal Plan and authorized the acquisition of property through condemnation as identified in the plan. 18 The City's urban renewal plan provides for the obtaining of any properties not previously acquired by the Hospital Authority.19

T8 The original commissioners' report issued on March 15, 2002; and the assessed damages were deposited with the court clerk. Requests to stay Realty I and Realty II were denied both by the trial court and this Court in the spring of 2004. Following the issuance [893]*893of mandate in Realty I, on April 29, 2004, the City took possession of the landowner's property, demolishing the structures on the tract. Except for the existence of one retail outlet, the entire project area was cleared by July of 2004.

T9 On November 204" and 21°, 2006, a two day bench trial was held to resolve issues on remand from Realty II and in response to the City's declaratory judgment action requesting approval of the City's Urban Renewal Plan along with the renewed attempt to condemn the landowner's property. The trial court consolidated the two causes; sustained the City's findings of blight; found the City's urban renewal plan to have been validty adopted in accordance with the urban renewal laws, 11 0.S8.2001 § 38-101, et seq.; and denied the landowner's exceptions to the commissioners' report. Petitions in error were filed in the two causes in February and March of 2007, respectively. On April 13, 2007, the landowner filed a motion to consolidate the related appeals. The City requested that the causes be retained in its motion of May 3, 2007. We made the causes companion cases and granted the motion to retain. The briefing cycle was completed on December 11, 2007.

DISCUSSION

{10 a. The City met due process requirements by providing publication notice of meetings at which blight determinations were made.

111 The landowner asserts that the City's blight determinations were judicial in that they were adjudications of the "character of the use" pursuant. to the Oklahoma Constitution art. 2, § 24. 20 He also contends that due process required that he receive: personal notice of the City's meetings in which blight determinations were considered; a full hearing on the blight issue; the opportunity to present witnesses; and the right to cross examine the City's witnesses.

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Cite This Page — Counsel Stack

Bluebook (online)
2008 OK 28, 198 P.3d 886, 2008 Okla. LEXIS 32, 2008 WL 880537, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-midwest-city-v-house-of-realty-inc-okla-2008.