City of St. Charles v. DeVault Management

959 S.W.2d 815, 1997 Mo. App. LEXIS 1858, 1997 WL 664920
CourtMissouri Court of Appeals
DecidedOctober 28, 1997
Docket70806
StatusPublished
Cited by6 cases

This text of 959 S.W.2d 815 (City of St. Charles v. DeVault Management) is published on Counsel Stack Legal Research, covering Missouri 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 St. Charles v. DeVault Management, 959 S.W.2d 815, 1997 Mo. App. LEXIS 1858, 1997 WL 664920 (Mo. Ct. App. 1997).

Opinion

SIMON, Judge.

The City of St. Charles (City) appeals a judgment of the Circuit Court of St. Charles County denying condemnation of apartment buildings in favor of defendants, DeVault Management (DeVault LLC), a limited liability company; DeVault Management (DeVault GC), a general partnership; Gregory Zes and James Zes, individually and as general partners of DeVault GC; and various other individuals and entities.

On appeal, City contends that the trial court erred when it: (1) incorrectly applied a burden of proof in reviewing City’s compliance with the Tax Increment Financing Act (TIF Act), specifically Section 99.810(2) RSMo 1994 (all further references shall be to RSMo 1994 unless otherwise noted); (2) erroneously defined “comprehensive plan” and “conformity” from Missouri statutory provisions; and (3) improperly held City failed to prove its right to an order of condemnation because City presented substantial and unre-butted evidence of all elements required for an order of condemnation and defendants failed to present sufficient evidence to rebut the presumption of legitimacy of City’s actions. We affirm.

Reviewing a court-tried case, we will sustain the trial court’s decision unless there is no substantial evidence to support it, it is against the weight of the evidence, or it erroneously declares or applies the law. Murphy v. Carron, 536 S.W.2d 30, 32 (Mo. banc 1976).

The record reveals that James Zes and Gregory Zes (Zeses), brothers, purchased and managed apartment buildings through partnerships and limited liability companies including DeVault GP and DeVault LLC. In November 1992, DeVault GP purchased the Crestview Apartments (Apartments) from the Resolution Trust Corporation. In late 1994 or early 1995, DeVault LLC acquired Apartments, which currently contain 339 living units, 23 of which are townhouses and the remainder of which are one and two bedroom apartments. Renovation of Apartments began after the purchase.

On May 4, 1993, The City Council of St. Charles (City Council) passed Ordinance No. 93-90, in which it found the existence of one or more blighted areas within City and established a Tax Increment Financing Commission (TIF Commission) to propose redevelopment of certain areas, pursuant to Sections 99.800, et seq.,”Real Property Tax Increment Allocation Redevelopment.” Section 99.810 provides, in pertinent part:

Each redevelopment plan shall set forth in writing a general description of the program to be undertaken to accomplish the objectives and shall include, but need not be limited to, estimated redevelopment project costs, the anticipated sources of funds to pay the costs, evidence of the commitments to finance the project costs, the anticipated type and term of the sources of funds to pay costs, the anticipated type and terms of the obligations to be issued, the most recent equalized assessed valuation of the property within the redevelopment area which is to be subjected to payments in lieu of taxes and economic activity taxes pursuant to section 99.845, an estimate as to the equalized assessed valuation after redevelopment, and the general land uses to apply in the redevelopment area. No redevelopment plan shall be adopted by a municipality without findings that:
(1) The redevelopment project area on the whole is a blighted area, a conservation area, or an economic development area, and has not been subject to growth and development through investment by private enterprise and would not reasonably be anticipated to be developed without the adoption of the redevelopment plan.
(2) The redevelopment plan conforms to the comprehensive plan for the development of the municipality as a whole.

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Subsequently, TIF Commission identified a Redevelopment Area (Area) and prepared a redevelopment plan (Redevelopment Plan) and blighting study. Area consisted of approximately 106 acres in the City of St. Charles, bordered generally by Interstate 70 on the South, Fifth Street on the West, Boonsliek Road on the North, and South Main Street on the East. Apartments occupied 11 acres within the Area.

On June 8,1993, City Council passed Ordinance 93-127, which rezoned most of Area “to Zoning District RF (Riverfront District) from Zoning Districts RM (Multiple Family Residential district), LC (Limited Commercial District), Cl (Neighborhood business District), C2 (General Business district), C3 (Commercial District), Ml (Limited Industrial District) and M2 (General Industrial District) ...” Permitted land uses within the Riverfront District included public, semi-public and private commercial; parks; restaurants; retail; public meeting places and convention centers; floating casinos; multifamily residential; and other residential uses.

On December 21, 1993, City Council passed Ordinance 93-307, which made findings related to blight and adopted and incorporated the Redevelopment Plan, listing several blighting factors, including: a decline in real property values; the impact on public safety; the deterioration of site improvements; the conditions of the streets and street layout within the Area; and zoning conditions within Area and made findings relating to City’s comprehensive plan and the Redevelopment Plan. In pertinent part, the Redevelopment Plan provided:

The City’s Comprehensive Plan for the City dates from 1973 and has had no major update since that time. In general terms, this Redevelopment Plan and the General Land Use Plan contained herein is in conformance with the Comprehensive Plan.
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The only significant divergence between the two land use plans concerns the area along South Main and the Crestview apartment complex property. The Comprehensive Plan, Land Use Plan Map suggests the retention of this area in residential land uses. The General Land Use Plan designates these areas for limited commercial development.
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[I]t is the finding that the implementation of the Redevelopment Plan and redevelopment projects as conceived herein ■will be in general conformance with the Comprehensive Plan and in addition, will serve to enhance and enforce the implementation of the Riverfront District zoning provisions.

The comprehensive plan referred to in the Redevelopment Plan is the “City of St. Charles Comprehensive Plan” (1974 Comprehensive Plan), which was adopted by City Council in 1974.

On August 23, 1994, City Council passed Ordinance 94-214 authorizing City to enter into an agreement with Riverfront Station, Inc., to acquire the land located in Area for development. On September 22, 1994, City and Riverfront Station, Inc. executed an agreement designating Riverfront Station, Inc. as City’s agent to acquire property through eminent domain.

On March 16,1995, Riverfront Station, Inc. sent a letter to “DeVault Management, A Missouri General Partnership” offering to purchase Apartments for $3,300,000. Subsequently, the offer was rejected.

On June 20, 1995, City filed a Petition in Eminent Domain against DeVault GP, the Zeses as individuals and as general partners of DeVault GP and various other individuals and entities.

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Cite This Page — Counsel Stack

Bluebook (online)
959 S.W.2d 815, 1997 Mo. App. LEXIS 1858, 1997 WL 664920, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-st-charles-v-devault-management-moctapp-1997.