Columbia Land Development, LLC v. Secretary of State

CourtMississippi Supreme Court
DecidedNovember 14, 2001
Docket2002-CA-02025-SCT
StatusPublished

This text of Columbia Land Development, LLC v. Secretary of State (Columbia Land Development, LLC v. Secretary of State) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Columbia Land Development, LLC v. Secretary of State, (Mich. 2001).

Opinion

IN THE SUPREME COURT OF MISSISSIPPI

NO. 2002-CA-02025-SCT

COLUMBIA LAND DEVELOPMENT, LLC, COLUMBIA MARKETPLACE, LTD AND COLUMBIA GOLF RESORT & CASINO CORPORATION

v.

THE SECRETARY OF STATE OF THE STATE OF MISSISSIPPI, ERIC CLARK

DATE OF JUDGMENT: 11/14/2001 TRIAL JUDGE: HON. THOMAS WRIGHT TEEL COURT FROM WHICH APPEALED: HARRISON COUNTY CHANCERY COURT ATTORNEYS FOR APPELLANTS: PAUL J. DELCAMBRE, JR. BEN HARRY STONE SCOTT E. ANDRESS PATRICIA ANN BAILEY ATTORNEYS FOR APPELLEE: DANIEL L. SINGLETARY DAVID M. McMULLAN, JR. NATURE OF THE CASE: CIVIL - STATE BOARDS AND AGENCIES DISPOSITION: AFFIRMED - 03/25/2004 MOTION FOR REHEARING FILED: MANDATE ISSUED:

BEFORE SMITH, P.J., COBB AND CARLSON, JJ.

CARLSON, JUSTICE, FOR THE COURT:

¶1. In today’s appeal, this Court is requested to determine the authority of the Secretary of State under

the Public Trust Tidelands Act to finally approve or disapprove a proposed lease of this State’s public

tidelands. The Mississippi Gaming Commission had previously conditionally approved the site for gaming,

but the Secretary of State disapproved the proposed lease. The property owners challenged that disapproval by filing a Petition for Declaratory Action and Mandatory Injunction in the Chancery Court of

the First Judicial District of Harrison County. The chancellor denied the petition and the subsequent Motion

to Reconsider, For a New Trial, or Entry of Judgment as a Matter of Law. For the following reasons, this

Court affirms the decision of the chancellor.

FACTS AND PROCEEDINGS IN THE AGENCIES AND CHANCERY COURT

¶2. Two corporate entities, Columbia Land Development, LLC (“Columbia LLC”) and Columbia

Marketplace, LTD (“Columbia LTD”)1 collectively own approximately four hundred acres of real property

fronting the Bay of St. Louis in the First Judicial District of Harrison County, Mississippi. The property is

leased to Columbia Golf Resort & Casino Corporation (“Columbia GR&C”) for purposes of developing

a resort, including a golf course, hotel, and gaming vessel.

¶3. The property is located on the tip of a peninsula which is bordered by the Wolf River to the north,

the Bayou Portage to the south, and the Bay of St. Louis to the west. The peninsula lies north of the City

of Pass Christian and south of the community of De Lisle. Specifically, the location of the proposed casino

gaming vessel is in the waters of the Bay of Bayou Portage at the northeastern end of the Henderson

Avenue (Portage) bridge. The waters upon which the casino vessel would sit are also commonly referred

to as “Bay of Portage” or “Bayou Portage.” The tidelands where the proposed casino gaming vessel would

be located carry a “commercial” designation under the Coastal Wetlands Use Plan. Although the vessel

location, being in an unincorporated area, carries no municipal zoning designation, the land immediately

1 The appellants are Columbia Land Development, LLC, Columbia Marketplace, LTD, and Columbia Golf Resort & Casino Corporation. They will quite often throughout this opinion be referred to collectively as simply “Columbia.”

2 south of the site is zoned commercial by the City of Pass Christian. Permits have previously been granted

by the Mississippi Department of Marine Resources and the United States Army Corps of Engineers for

the construction of a marina on the site.

¶4. On March 22, 1996, Columbia LLC filed an “Application for Standard Lease of Public Trust

Tidelands” with the Secretary of State for the purpose of construction of a marina and a gaming vessel.

The Secretary of State acknowledged receipt of the application, which was practically identical to that

submitted by the previous owner. The Secretary of State had issued a permit to the previous owner for

a marina on the site, however, that project was never completed. The previous owner had indicated that

the marina would be constructed on Bayou Portage, but Columbia’s application indicated the site was on

the Bay of St. Louis. Noting the discrepancy, the Secretary of State required a ruling from the Mississippi

Gaming Commission that the site was on the Bay of St. Louis and not on a river or bayou leading into the

Bay.

¶5. Columbia GR&C filed an application with the Mississippi Gaming Commission for a license to

conduct gaming. The Gaming Commission conducted a preliminary site assessment and held a public

hearing to determine the suitability of the site. The Gaming Commission unanimously voted to grant site

approval, and there was no challenge to the Gaming Commission’s action.

¶6. Despite the approval from the Gaming Commission, by letter dated September 18, 1996, the

Secretary of State denied the lease and stated that the site did not satisfy the geographical requirements of

the Mississippi Gaming Control Act of 1990, Miss. Code Ann. §§ 75-76-1 et seq. (Rev. 2000). That

same letter notified Columbia LLC that if a marina were built on the site rather than a casino gaming

3 development, the lease application would be processed. Several meetings were held between

representatives of the corporate entities and officials from the Secretary of State’s Office, including

Secretary of State Eric Clark, in an effort to “work it out” but to no avail. The Columbia entities contend

that they were informed the main reason for denial of the lease application was Dr. Clark’s personal

conviction against gaming. However, Dr. Clark testified at the hearing before the chancellor (and the

chancellor so found), that there were additional reasons for the denial other than the location, including:

(1) the rural/residential nature of the area, its remoteness effecting [sic] the viability of a casino, the lack of infrastructure, and its incompatibility with a casino; (2) the added impairment of the pollution in Bay St. Louis; (3) negative environmental effect on the tidelands and uplands due to casino development; the relatively pristine nature of the site and surroundings; and (5) the costs to the community in taxes and infrastructure costs. Additionally, the Secretary of State stated that there was no casino operator/developer with sufficient financial resources committed to the project and the effects of a failed casino were harmful to the environment.

(footnotes omitted).

¶7. Columbia LLC filed a Petition for Declaratory Judgment and Mandatory Injunction in the First

Judicial District of Harrison County Chancery Court on January 17, 1997. The Secretary of State filed

a Motion to Dismiss on the grounds of lack of subject matter jurisdiction and failure to state a claim upon

which relief may be granted. The Secretary of State’s motion was denied. After discovery, a Renewed

Motion to Dismiss, or in the alternative, for Judgment on the Pleadings was filed by the Secretary of State

on May 21, 1999. That motion was also denied.

¶8. A trial was held before Chancellor Thomas W. Teel on November 8, 2001, and by Order entered

on November 14, 2001, the chancellor denied the requested relief and dismissed the petition for

declaratory and injunctive relief. The Motion to Reconsider, For a New Trial, or for Entry of Judgment

4 as a Matter of Law was filed on November 26, 2001. However, Chancellor Teel left office on February

21, 2002, and an Order of Recusal was subsequently signed by all four chancellors of the Eighth Chancery

Court District and entered on May 20, 2002. Thus, by Order of this Court, Honorable Denise S. Owens

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