Fred H. Gillham v. City of Mt. Pleasant

CourtCourt of Appeals of Tennessee
DecidedMarch 29, 2012
DocketM2010-02506-COA-R3-CV
StatusPublished

This text of Fred H. Gillham v. City of Mt. Pleasant (Fred H. Gillham v. City of Mt. Pleasant) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fred H. Gillham v. City of Mt. Pleasant, (Tenn. Ct. App. 2012).

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE August 24, 2011 Session

FRED H. GILLHAM v. CITY OF MT. PLEASANT, ET AL.

Appeal from the Chancery Court for Maury County No. 10222 Robert L. Jones, Judge

No. M2010-02506-COA-R3-CV - Filed March 29, 2012

A residential property owner challenged the procedures used by a planning commission and city commission in granting a rezoning application submitted by two industrial companies. The companies asked that the zoning for 95.2 acres of land be changed from agricultural to special impact industrial for the purpose of developing a landfill to dispose of salt cake produced as a byproduct of their smelting businesses. The property owner also asserted that two of the commissioners had a conflict of interest and that their participation granting the application invalidated the procedure. The defendants filed a motion to dismiss and motion for judgment on the pleadings. The trial court granted the defendants’ motions after concluding the planning commission and city commission complied with the procedural requirements of Tenn. Code Ann. §§13-7-203(a) and 6-20-215 and that the two commissioners had no conflict of interest since they had no ownership interest in the rezoning applicants. We affirm the trial court’s judgment dismissing the property owner’s complaint.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Chancery Court Affirmed

P ATRICIA J. C OTTRELL, P.J., M.S., delivered the opinion of the Court, in which F RANK G. C LEMENT, J R. and A NDY D. B ENNETT, JJ., joined.

Roger Alan Maness, Clarksville, Tennessee, for the appellant, Fred H. Gillham.

E. Leith Marsh, Nashville, Tennessee, for the appellees, City of Mt. Pleasant, Tennessee, Mt. Pleasant Planning Commission, Richard Hendrix, and Maury Colvett; M. Clark Spoden and Corinne Elizabeth Martin, Nashville, Tennessee for the appellees, Tennessee Aluminum Processors, Inc., and Smelter Services Corporation. O PINION

The complainant in this zoning dispute is Fred A. Gillham, a residential landowner in Mt. Pleasant, Tennessee, who lives near real property that was rezoned from Agricultural to M-3 Special Industrial. He filed a complaint challenging the procedure the Planning Commission and City Commission followed in rezoning the land at issue and named the companies seeking the rezoning as well as the city and individual commissioners as defendants. In response to a motion to dismiss and motion for judgment on the pleadings, the trial court dismissed Mr. Gillham’s complaint. Mr. Gillham appeals the trial court’s dismissal of his complaint.

I. M R. G ILLHAM’S C OMPLAINT

Mr. Gillham asserted the following facts in his complaint. Tennessee Aluminum Processors, Inc. (“TAP”) and Smelter Services Corporation (“Smelter Services”) operate aluminum smelting businesses in Mt. Pleasant, Tennessee. The smelting process produces a granular mineral by-product commonly known as salt cake. In December 2009 TAP and Smelter Services submitted an application to the Mt. Pleasant Planning Commission to rezone 95.2 acres of land on Hoover Mason Road from Agricultural to M-3 (Special Impact Industrial) for the purpose of using the property as a landfill for the disposal of their salt cake by-product.

The Planning Commission met on January 5, 2010, to consider TAP and Smelter Services’ request. The Planning Commission voted at that time to forward TAP and Smelter Service’s request to the City Commission with an unfavorable recommendation.

The City Commission met two weeks later, on January 19, and during that session the commissioners considered TAP and Smelter Service’s request, which by that time had become known as Ordinance 2010-906. The ordinance passed on the first reading by a vote of 3 to 2. A public hearing was held nearly a month later, on February 16. A second reading of the ordinance followed the public hearing, and the ordinance passed again by a vote of 3 to 2. The two individual commissioners named as defendants, Richard Hendrix and Maury Colvett, voted in favor of the ordinance on both occasions.

The general manager of the Mt. Pleasant Power System (“MPPS”), Derek Church, prepared a document dated January 5, 2010, that was entitled “The Financial Impact on the Mount Pleasant Power System Due to the Loss of Electrical Power Sales to Smelter Service Corporation and Tennessee Aluminum Processors.” In the first paragraph of the document Mr. Church wrote:

-2- The following study was initiated by the concern of any further loss of sales, particularly to our two largest consumers of electric power, namely Tennessee Aluminum Processors and Smelter Services Corporation. This study is merely a representation of the financial impact that MPPS would experience based on the loss of electric power sales and in no way is an indicator of the beliefs or support by MPPS or its Board of Directors of any project that is associated with these industries.

Mr. Church stated in this document that if TAP and Smelter Services were to relocate their businesses elsewhere, away from Mt. Pleasant, the MPPS would suffer a “devastating financial impact.” Mr. Church estimated the electric power rates would increase by 31% to the remaining customer base, which could be minimized if the city were able to attract other manufacturing facilities or large electric power consumers. Mr. Church explained that he prepared the analysis “to ready the Mount Pleasant Power System and its customers in the event of the additional loss of revenue.”

Defendant Richard Hendrix is the Mayor of Mt. Pleasant and is a member of the City Commission. As Mayor, Mr. Hendrix sits on the board of the MPPS. Defendant Maury Colvett is employed by the MPPS and is also a member of the City Commission.

Mr. Gillham alleged in his complaint that Mr. Church’s document was a “position paper” that contained factual misstatements and was “a lobbying effort generated to created irrational fear in the mind of the public and provide cover for the vote of HENDRIX and COLVETT, in favor of the rezoning application.” Mr. Gillham further asserted that “[i]t is reasonable to conclude that said position paper was produced at the behest of HENDRIX who sits as a member of the power board.”

Debbie McMullin, the City Manager and Chief Financial Officer of Mt. Pleasant, prepared a Memorandum dated January 20, 2010, that was addressed to the Mayor, Vice- Mayor, and Commissioners. Ms. McMullin began her Memorandum by stating:

First of all, let me preface this memo by saying I am in no way trying to influence your vote either way on the upcoming “landfill” issue. . . . The entire purpose of this memo is to fulfill my duty as the Chief Financial Officer for the City to be sure you have all the facts and have weighed all the factors so you can make an informed decision when you cast your vote. I am in no way telling you I believe the two companies involved in this matter will leave Mt. Pleasant if they don’t get the landfill. I am simply making you aware of the financial fallout of such a move if it were to occur.

-3- In her memorandum, Ms. McMullin stated that TAP is one of the top ten taxpayers to the city, and the loss of both TAP and Smelter Services as taxypayers would result in the loss of $30,000 in tax revenue. Ms. McMullin indicated every remaining taxpayer in Mt. Pleasant would have to pay 5% more in taxes to make up for this loss. She also stated that TAP and Smelter Services contribute so much to the city’s water and sewer budget that losing their revenue would require a 5% increase in the water rate and a 2% increase in the sewer rate to maintain the same water and sewer budget. Finally, Ms.

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Fred H. Gillham v. City of Mt. Pleasant, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fred-h-gillham-v-city-of-mt-pleasant-tennctapp-2012.