Condemnation of 110 Washington Street Ex Rel. Redevelopment Authority of Montgomery

767 A.2d 1154, 2001 Pa. Commw. LEXIS 105
CourtCommonwealth Court of Pennsylvania
DecidedFebruary 13, 2001
StatusPublished
Cited by32 cases

This text of 767 A.2d 1154 (Condemnation of 110 Washington Street Ex Rel. Redevelopment Authority of Montgomery) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Condemnation of 110 Washington Street Ex Rel. Redevelopment Authority of Montgomery, 767 A.2d 1154, 2001 Pa. Commw. LEXIS 105 (Pa. Ct. App. 2001).

Opinions

KELLEY, J.

R & J Holding Company (Condemnee) appeals from the order of the Court of Common Pleas of Montgomery County (trial court) that sustained in part and overruled in part Condemnee’s preliminary objections to the Declaration of Taking filed by the Redevelopment Authority of the County of Montgomery (Condemnor). We reverse.

On January 1, 1986, Condemnor entered into an agreement (1986 Agreement) with the Greater Conshohocken Improvement Corporation (GCIC), whose principal is Donald Pulver (Pulver), which provided for a process intended to lead to the adoption of a redevelopment proposal in the Boroughs of Conshohocken and West Consho-hocken to eliminate blight. Under the 1986 Agreement, Condemnor was to acquire properties in a specified project area in the boroughs by eminent domain, and to convey them to Pulver for development. Specifically, under Section 3(c) of the 1986 Agreement, Condemnor was to, inter alia, “[ajcquire by Eminent Domain, any real property, including improvements and fixtures for the public purposes of the Urban Redevelopment Law [ (URL)1] ...” R.R.2 at 1065a. However, Section 3(d) of the 1986 Agreement also stated that “Notwithstanding anything to contrary contained herein, [Condemnor] shall not undertake any of the activities set forth in section[ ] ... 3(c) of this Agreement except at the specific request of [GCIC] ...” Id. at 1066a. In turn, GCIC was required to compensate Condemnor for all direct and indirect costs incurred in the course of these activities, and was to provide security for any takings in accordance with a formula set out in the agreement. See Id. at 1066a — 1069a.

On October 13, 1993, Condemnor again entered into an agreement (1993 Agreement) with GCIC which specifically related to Condemnee’s property. Under Section 1(a) of the 1993 Agreement, Condemnor agreed to “[fjorthwith, commence legal acquisition proceedings against [Con-demnee’s] property ...” Id. at 1328a— 1329a. Likewise, under Section 1(c) of the 1993 Agreement, Condemnor agreed to “[t]ake whatever steps are necessary to acquire, pursuant to the Eminent Domain Code [ (Code)3], and any other applicable statute, title to the fee and possession of [Condemnee’s] premises ...” Id. at 1329a. Pursuant to Section 1(d) of the 1993 Agreement, Condemnor was to fund the acquisition of Condemnee’s property by using the funds provided by a grant from the Commonwealth. Id. Under Section 2 of the 1993 Agreement, GCIC was to [1157]*1157cover all direct condemnation costs that exceeded the grant amount. See Id. at 1329a — -1332a. Finally, pursuant to Section 7 of the 1993 Agreement, it was agreed that “[n]either the Borough nor [Condemnor] are authorized to file a Declaration of Taking of [Condemnee’s property] without the prior written consent of [GCIC].” Id at 1335a.

On March 14, 1995, Condemnor entered into an agreement (Surety Agreement) with TBFA Partners (TBFA), whose principal is Pulver, in which the rights and obligations of GCIC under the 1993 Agreement were assigned to TBFA. Id. at 1075a. The Surety Agreement recognized that among the responsibilities and obligations which TBFA agreed to assume are those to pay any funds necessary for the acquisition of Condemnee’s property which are not covered by the grant from the Commonwealth, and to provide surety to Con-demnor that such payments would be forthcoming when due. Id. The Surety Agreement also stated that TBFA was desirous that Condemnor initiate condemnation proceedings to acquire Con-demnee’s property, and that TBFA was to post security for the taking in the amount of $775,000 less $247,035 attributed to costs already paid. Id. In particular, Paragraph 1 of the Surety Agreement stated that “[t]his surety is posted to induce [Condemnor] to commence acquisition and condemnation proceedings in order to acquire [Condemnee’s property].” Id. at 1076a.

On March 15, 1995, Condemnor offered to purchase Condemnee’s property for $1,180,000 plus reasonable relocation costs. Id. at 1302a. On July 11, 1996, Condem-nor filed a Declaration of Taking for Con-demnee’s property.4 Id. at 7a — 15a. On August 26, 1996, Condemnee filed preliminary objections to the Declaration of Taking. Id. at 18a — 30a. On June 4, 1997, Condemnee filed amended preliminary objections to the Declaration of Taking. Id. at 124a — 139a. The preliminary objections alleged, inter alia, that the Declaration of Taking be set aside because: (1) Condem-nor had unlawfully delegated its eminent domain powers to Pulver; (2) Condemnor had acted in bad faith in condemning the subject property; and’(3) inadequate security had been posted for the condemnation.

On December 17, 1998, the trial court issued an order disposing of Condemnee’s preliminary objections. The trial court overruled Condemnee’s preliminary objections relating to unlawful delegation and bad faith. However, the trial court determined that the security that had been posted was inadequate, and ordered Con-demnor to post an additional $750,000 in security. Condemnee then filed the instant appeal in this Court.

In this appeal, Condemnee claims: (1) the trial court erred in overruling its preliminary objection that Condemnor had unlawfully delegated its eminent domain powers to Pulver; (2) the trial court erred in overruling its preliminary objection that Condemnor had acted in bad faith; and (3) the trial court’s evidentiary errors during the hearing on the preliminary objections requires a new hearing.

We initially note that where a trial court has either sustained or overruled preliminary objections to a Declaration of Taking, our scope of review is limited to determining whether the trial court abused its discretion or committed an error of law. In re Condemnation [1158]*1158Proceeding by the Township of Lower Macungie, 717 A.2d 1105 (Pa.Cmwlth.1998), petition for allowance of appeal denied, 558 Pa. 648, 738 A.2d 458 (1999); Olson v. Whitpain Township, 141 Pa.Cmwlth. 270, 595 A.2d 706 (1991). In addition, our review of the URL condemnation cases is to see that the redevelopment authority has not acted in bad faith or arbitrarily, that it has followed the mandated statutory procedures in preparing a redevelopment plan, and that there are no constitutional violations. In re City of Scranton, 132 Pa.Cmwlth. 175, 572 A.2d 250 (1990), petition for allowance of appeal denied, 527 Pa. 619, 590 A.2d 760 (1991).

Condemnee first claims that the trial court erred in overruling its preliminary objection that Condemnor had unlawfully delegated its eminent domain powers to Pulver. In particular, Condemnee argues that the provisions of the 1986 Agreement and the 1993 Agreement under which Con-demnor was contractually precluded from acquiring its property by eminent domain constitutes an unlawful delegation of these powers. According to Condemnee, neither the URL nor the Code authorize a redevelopment authority to give private parties control over the authority’s functions relating to condemnation.

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Bluebook (online)
767 A.2d 1154, 2001 Pa. Commw. LEXIS 105, Counsel Stack Legal Research, https://law.counselstack.com/opinion/condemnation-of-110-washington-street-ex-rel-redevelopment-authority-of-pacommwct-2001.