Ex Parte City of El Paso

563 S.W.3d 517
Court of Appeals of Texas·Decided November 7, 2018·No. 03-17-00566-CV·Published·Cited by 5 cases

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

NO. 03-17-00566-CV

Ex parte City of El Paso

FROM THE DISTRICT COURT OF TRAVIS COUNTY, 250TH JUDICIAL DISTRICT NO. D-1-GN-17-001888, HONORABLE AMY CLARK MEACHUM, JUDGE PRESIDING

OPINION

This appeal arises from a bond-validation proceeding brought by the City of El Paso under Chapter 1205 of the Government Code. El Paso voters approved the issuance of the underlying bonds to finance various “quality of life” projects, including a “multipurpose performing arts and entertainment facility” located in downtown El Paso. The district court validated the bond election, the bonds, and the City’s authority to use bond proceeds to finance the design and construction of the various projects, but limited the scope of the “multipurpose performing arts and entertainment facility” by prohibiting the City from making that facility “suitable for a sports arena.” Based on our conclusion that the plain language of the ordinance does not prohibit sports uses, we will reverse and render in part and affirm in part.

Background

In 2012, the City of El Paso adopted an ordinance ordering an election on, among matters, a proposed bond issue for various “quality of life” projects, including—

MUSEUM, CULTURAL, PERFORMING ARTS, AND LIBRARY FACILITIES PROPOSITION

“SHALL the City Council of the City of El Paso, Texas, be authorized to issue general obligation bonds of the City in the principal amount of $228,250,000 for permanent public improvements and public purposes, to wit: acquiring, constructing, improving, renovating and equipping new and existing library, museum, cultural and performing arts facilities and improvements, including the acquisition of land and rights-of-way for such projects, and acquiring and installing public art related to and being a part of some or all of the foregoing; such projects to include the following:

Museum

Children’s Museum;

Digital wall at History Museum;

Improvements to existing City museum facilities;

Cultural

Hispanic Cultural Center;

Arts & Entertainment

Multipurpose performing arts and entertainment facility located in Downtown El Paso;

Library

Improvements at [various El Paso branch libraries];

New Bookmobile;

Technology Mobile; Library Materials;

and in providing for the above public improvements, the City Council shall have the option to utilize other funds available for such purposes and, after making due provision for the improvements listed above, the City Council may, in its discretion, use any excess funds for acquiring, constructing, improving, equipping and renovating other library, museum, cultural and performing arts facilities, and/or to benefit or promote the cultural and performing arts, libraries, and/or museums, and the acquisition of land and rights-of way for such·projects; . . . ?”

(“Ordinance”). Voters approved the proposition.

The City thereafter began taking steps to create the “Multipurpose performing arts and entertainment facility” (“Facility”), including issuing bonds, identifying a site for the Facility, and beginning to acquire the site property. The City also issued “requests for qualifications” (RFQs)—the first step in soliciting bids for the Facility—from entities interested in undertaking various aspects of the Facility’s design, construction, and operation. The City’s RFQs proposed the development and construction of a “Multipurpose Cultural and Performing Arts Center,” describing the project as “a mid-sized arena anticipated to have between 12,000 and 15,000 seats” and noting that the City’s objective was to build “a first-class, sustainable arena that provides a flexible and usable sports and entertainment venue to the public.”

Concerned about possible opposition to the Facility, the City filed the underlying suit in Travis County District Court under Chapter 1205 of the Government Code. See generally Tex. Gov’t Code §§ 1205.001–.152 (titled “Public Security Declaratory Judgment Actions,” but often referred to as the “Expedited Declaratory Judgments Act” or “EDJA”). The EDJA creates an “in rem” and “class action” proceeding that allows an “issuer” of “public securities”—here, the City of El Paso—to obtain declarations establishing the “legality” or “validity” of the securities and certain related official proceedings (termed “public security authorizations”) through an expedited process in which the Attorney General is presumptively the only other party participating personally. See id. §§ 1205.021, .023, .041–.44, .062–.063, .065; Hotze v. City of Houston, 339 S.W.3d 809, 814 (Tex. App.—Austin 2011, no pet.) (citing Rio Grande Valley Sugar Growers, Inc. v. Attorney Gen., 670 S.W.2d 399, 401 (Tex. App.—Austin 1984, writ ref’d n.r.e.) (describing EDJA)). In its EDJA suit, the City asserted, among other matters, that there was opposition to the construction of a

Facility that could accommodate sports because, according to the opponents, sports was not specifically identified as a form of entertainment in the Ordinance. In connection with the sports-use issue, the City asked the district court to declare that the proposed Facility could be used for sports and sporting events.

Although, as noted, the Attorney General is the only other party specifically involved in such a suit, the EDJA prescribes publication notice directed to four categories of unidentified “interested parties,” whose members, potentially subject to a bond requirement, may appear personally in the lawsuit, and regardless are deemed to comprise a “class” that is bound by the judgment. See Tex. Gov’t Code. §§ 1205.023, .044, .062, .101–.104, 151(b). Here, several “interested parties” appeared personally to challenge the City’s suit, including—

• Appellee Max Grossman, who asserted that the Ordinance did not authorize the type of facility contemplated by the City because, Grossman contends, the Ordinance authorized a facility for “performing arts,” not for “sports,” while the Facility as proposed by the City was for sports;

• Appellees Antonio Flores Morales, Candelaria Garcia, Emily Saenz Gardea, and Olga Lopez (collectively, “Morales”), who argued that the City could use bond funds only to improve an existing facility, not to build a new facility; that the failure to specify the downtown location on the ballot was fraudulent; and that the Facility could host only “cultural and performing arts,” not sports;

(sometimes collectively, “Opponents”). Additionally, appellant Leonard “Tripper” Goodman, III, appeared in support of the City’s suit.

The Attorney General filed an answer that declined to either admit or deny the City’s allegations. See id. § 1205.063 (requiring Attorney General to challenge proceeding if Attorney General questions validity of public security, its authorization, or related expenditure). At trial, however, the Attorney General announced that it was his position that the Facility was authorized

under the Ordinance “if it includes performing arts events and entertainment events, which would include sports.”

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Ex Parte City of El Paso, 563 S.W.3d 517 (Tex. Ct. App. 2018).

563 S.W.3d 517 (Ex Parte City of El Paso) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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