General Building Contractors, L.L.C. v. Board of Shawnee County Commissioners

66 P.3d 873, 275 Kan. 525, 2003 Kan. LEXIS 191
CourtSupreme Court of Kansas
DecidedApril 18, 2003
Docket89,029
StatusPublished
Cited by30 cases

This text of 66 P.3d 873 (General Building Contractors, L.L.C. v. Board of Shawnee County Commissioners) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Building Contractors, L.L.C. v. Board of Shawnee County Commissioners, 66 P.3d 873, 275 Kan. 525, 2003 Kan. LEXIS 191 (kan 2003).

Opinion

The opinion of the court was delivered by

Larson, J.:

This is a landowner appeal from the denial of injunctive relief where the ultimate first impression issue is whether a Kansas county has the power under home rule to exercise eminent domain rights and condemn land for purposes of industrial or economic development.

Numerous issues are raised. We elect to reach the ultimate issues despite possible mootness and hold (1) Shawnee County has the power of eminent domain under home rule and related statutes, (2) such power of eminent domain is to be exercised by resolution rather than motion, (3) the taking of private property for *526 industrial and economic development is a valid public purpose, and (4) none of the four prerequisites of Wichita Wire, Inc. v. Lenox, 11 Kan. App. 2d 459, 462, 726 P.2d 287 (1986), for the granting of temporaiy or preliminary injunctions were met, and the trial court correctly denied the requested injunction.

Facts and Procedural Background

The facts leading up to the instant appeal are not in dispute, and we set them forth in considerable detail as they drive the result we reach.

In November 2000, Shawnee County voters approved a one-quarter of one cent sales tax to be used for economic development. After this approval, an economic development specialist, Doug Kinsinger, was hired as director of the nonprofit corporation, Growth Organization of Topeka/Shawnee County, Inc. (GO Topeka).

The City of Topeka and Shawnee County entered into an inter-local agreement as allowed by K.S.A. 12-2901 et seq., relating to financing countywide infrastructure development and economic development to be funded by the voted sales tax revenue. This agreement created a Joint Economic Development Organization (JEDO) comprised of leaders from the City of Topeka and Shawnee County. JEDO has the authority to own and hold real property, but any property so held by JEDO at its termination would revert joindy to the county and city. JEDO commissioned a market target survey which indicated Topeka/Shawnee County lacked a site with significant contiguous acreage suitable for industrial development.

Several groups with economic development expertise were hired to review the availability and suitability of potential industrial development sites. Both groups highly recommended the land between 49th and 57th Streets and between U.S. Highway 75 bypass and Topeka Boulevard. Efforts began to acquire this property for the industrial development site.

Representatives of JEDO successfully acquired options for nine parcels of real property. At the same time, negotiations were underway for a major commercial tenant to utilize the property. On March 14, 2002, Kinsinger approached the Board of County Com *527 missioners of Shawnee County, Kansas (Board), and requested it consider acquisition of the remaining parcels through eminent domain because only a small portion of the acreage remained to be acquired and time was of the essence in the negotiations for usage of the property.

The Board was told that three parcels amounting to approximately 7 acres were needed to complete the project. A motion was made, seconded, and carried 3-0 to authorize the county counselor’s office to begin eminent domain proceedings to obtain the final three parcels of land.

On March 19, 2002, the county filed a petition for eminent domain pursuant to K.S.A. 26-501 et seq., in Shawnee County District Court, seeking to acquire the real property owned by three parties which included General Building Contractors, L.L.C. (GBC) and Robert D. Tolbert. The county invoked its home rule powers under K.S.A. 19-101 et seq., with the stated purpose of establishing an industrial park to attract economic development within Shawnee County.

On March 29,2002, GBC and Tolbert filed a separate injunction action pursuant to K.S.A. 60-901 et seq., seeking a temporary restraining order prohibiting the county from going forward with eminent domain proceedings and a permanent injunction prohibiting the county from taking their properties by eminent domain. Shortly thereafter, they moved to consolidate the injunction action with the eminent domain proceeding and requested an immediate hearing. The trial judge joined the two actions and conducted an evidentiary hearing on the injunction action on April 17, 2002. Numerous exhibits were stipulated, and it was also agreed that the subject property of eminent domain action would ultimately be transferred to a private entity to be used in a private enterprise.

Tolbert testified on his own behalf and as a managing member of GBC. Together they owned five lots located within Thompson Industrial Park zoned for industrial use. The lots all abut 57th Street and have street improvements and sewer and utility service. The acreage was purchased in December 2000, and GBC completed a building on lot 10 in October 2001.

*528 Kinsinger testified on behalf of the county stating GO Topeka was in the process of acquiring all of the site for the purpose of creating jobs and enhancing the tax base by attracting a large private employer. He said the options to purchase in the target area consisted of approximately 400 acres,except for the lots owned by GBC and Tolbert. He stated that if the options were exercised, title would initially go to Shawnee County, but eventually the land would be sold to private companies at a later date.

Kinsinger explained the recommendations of consultants, and in response to a question from the court indicated that while GBC would be a supplier or vendor to a company that sells a product or service outside the county’s traditional market area, what was wanted were employers who import new dollars and employment and provide a new demand for service. He indicated the GBC property was located where foundations of a new building could be expected and major employers would require control of adjoining property.

Kinsinger testified that, in his experience, the types of public benefits created by the kind of industrial park envisioned included “[tjhousands of jobs, increased payroll, increased standard of living, opportunities for many people in the community, plus [a] greatly enhanced tax [base].”

Shawnee County Commissioner Miller also testified that the public purpose served by taking the action was the creation of high paying jobs and expansion of the tax base of the community, as well as its overall economic health.

The district court received briefs and on April 26, 2002, issued its memorandum decision and order as a final judgment concerning the injunction issue.

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Bluebook (online)
66 P.3d 873, 275 Kan. 525, 2003 Kan. LEXIS 191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-building-contractors-llc-v-board-of-shawnee-county-kan-2003.