Iowa Hotel Association v. State Board of Regents

114 N.W.2d 539, 253 Iowa 870, 1962 Iowa Sup. LEXIS 666
CourtSupreme Court of Iowa
DecidedApril 3, 1962
Docket50593
StatusPublished
Cited by20 cases

This text of 114 N.W.2d 539 (Iowa Hotel Association v. State Board of Regents) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Iowa Hotel Association v. State Board of Regents, 114 N.W.2d 539, 253 Iowa 870, 1962 Iowa Sup. LEXIS 666 (iowa 1962).

Opinion

Snell, J.

This is an action in equity to enjoin the State Board of Regents from proceeding with the construction and financing of additions to the Iowa Memorial Union at the State University of Iowa under the provisions of chapter 185, Laws of the Fifty-eighth General Assembly. Plaintiffs allege that the law violates the Constitution of the state of Iowa and that the proposed facilities are not authorized or within the power of the Board of Regents or the state of Iowa.

Chapter 262 of the Code, as amended, provides for a State Board of Regents to govern the State University of Iowa, Iowa State University of Science and Technology, State College of Iowa and other institutions of learning and service to the people.

*873 Chapter 185, Laws of the Fifty-eighth General Assembly, entitled “Self-Liquidating College Buildings”, authorizes the State Board of Regents to set aside and use such portions of the respective campuses of the institutions of higher education under its control as the board shall determine to be suitable for the construction thereon of self-liquidating and revenue producing buildings and facilities, which the board deems necessary for the comfort, convenience and welfare of students and suitable for the purposes for which the institutions were established, “including student unions, recreational buildings, auditoriums # # * an¿ additions to or alterations of existing buildings or structures now or hereafter used for any or all of the purposes aforesaid.” The law declares the erection of such buildings, improvements and facilities for educational institutions of higher learning to be a public necessity. The title to all real estate so acquired and improvements erected thereon shall be in the name of the state.

Under this law the Board of Regents is authorized to charge and collect from all students in attendance, or from any specified class or part thereof for which facilities are deemed necessary, fees and charges for the use and availability of such buildings and facilities and for the services and benefits made available therefrom. The fees and charges shall be applied to the costs of acquisition, construction, maintenance and financing of the improvements.

In carrying out the powers the board is authorized to borrow money on the credit of the income and revenues to be derived from the operation or use of the facilities and from fees or charges made by the board to students for whom such facilities are made available and to issue notes, bonds or other evidence of indebtedness in anticipation of the collection of such income, revenues, fees and charges, and pledge the same for the discharge of the indebtedness.

The law specifically provides that no obligation created thereunder shall ever be or become a charge against the state of Iowa.

The last section of the law provides: “All such self-liquidating projects under this Act shall be first approved by the budget and financial control committee.”

*874 The Iowa Memorial Union on the campus at the State University of Iowa in Iowa City is composed of what is known in the record as units I, II and III. These units were constructed, built and paid for by the Iowa Memorial Union Corporation, a private corporation, and thereafter were conveyed to the state of Iowa for the use and benefit of the state university. These units were completed in 1926, 1927 and 1955 respectively. The Board of Regents now proposes, under the authority of chapter 185, Laws of the Fifty-eighth General Assembly, the construction of additions known as units IV, V and VI. Unit IV, as proposed, will be a ground floor and first-floor addition. Unit V will be constructed above and on unit IV and will consist of three additional floors. Unit VI will be constructed above and on the present unit III. The units will be connected by halls. There will be elevator service (self-service) to the upper floors.

The proposed construction has been under consideration by the university authorities and the Board of Regents for several years. The Board of Regents in December 1959 approved the proposed project and asked approval by the budget and financial control committee of the legislature.

Negotiations for the financing of the improvements led to a commitment from institutional lenders to finance the cost not exceeding $4,500,000. The indebtedness so incurred was to be evidenced by notes issued by the Board of Regents maturing July 1, 1992, bearing interest at the rate of five per cent per annum payable semiannually. There will be 50 level semiannual payments of principal and interest. As security for the loan the Board of Regents and the Iowa Memorial Union are to pledge allocated student fees, together with net revenues from Iowa Memorial Union activities, for the payment of the notes. The Board of Regents covenants to charge, collect and allocate to the payment of the notes University of Iowa student fees in an amount which, together with other net revenues of the Memorial Union, will be sufficient to pay the principal and interest in accordance with the mandatory amortization schedule. Under this plan the Board of Regents, through the university, will assess student fees in the amount of $8.50 per student per semester or $17 per academic year and $4.00 per summer quarter attended. Approximately 75% of the total cost for the debt *875 retirement will be met by these student fees and approximately 25% from the operating income of the Memorial Union. The percentages of income derived from various sources are estimates and vary slightly but are sufficiently accurate for the purposes of this case.

The budget and financial control committee of the Fifty-eighth General Assembly approved the project on January 6, 1960.

Proposed unit IV is essentially a new food-service unit with kitchen, dining rooms, storage facilities, lockers and equipment facilities.

Proposed unit V is essentially a guesthouse section with both double and single rooms, elevator service, cleaning sendee and maid service. University guests will be eligible to stay in the guest rooms. These include organization personnel, faculty, guest speakers, guest instructors, visiting orchestras, athletic teams, lecturers, alumni and groups brought to the campus for specific purposes.

Proposed unit VI will consist of conference rooms, meeting rooms and a ballroom also serving as a banquet and meeting room. While the units are separately described, they will all be a part of one building.

Compliance with the provisions of the statute has not been challenged.

Plaintiffs, The Iowa Hotel Association, Iowa Motor Court Association, Iowa Restaurant Association, other resident taxpayers and a student at the university, seek injunctive relief, urging that the law under which the regents are proceeding violates the Constitution of the state and that the proposed facilities are not authorized or within the power of the Board of Regents or the state of Iowa. Defendants ask for a declaration of constitutionality and legality of the proposed construction.

The trial court found that the provisions of chapter 185, Laws of the Fifty-eighth General Assembly, and the proposed construction and financing by the Board of Regents do not violate any constitutional or statutory provisions of the law. Plaintiffs have appealed.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Churchill v. BOARD OF TRUSTEES, ETC.
409 So. 2d 1382 (Supreme Court of Alabama, 1982)
John R. Grubb, Inc. v. Iowa Housing Finance Authority
255 N.W.2d 89 (Supreme Court of Iowa, 1977)
State Board of Regents v. Lindquist
188 N.W.2d 320 (Supreme Court of Iowa, 1971)
Moye Ex Rel. Moye v. Board of Trustees of the University of South Carolina
177 S.E.2d 137 (Supreme Court of South Carolina, 1970)
Farrell v. State Board of Regents
179 N.W.2d 533 (Supreme Court of Iowa, 1970)
Goreham v. Des Moines Metropolitan Area Solid Waste Agency
179 N.W.2d 449 (Supreme Court of Iowa, 1970)
Frost v. State
172 N.W.2d 575 (Supreme Court of Iowa, 1970)
Brack v. Mossman
170 N.W.2d 416 (Supreme Court of Iowa, 1969)
Lee Enterprises, Inc v. Iowa State Tax Commission
162 N.W.2d 730 (Supreme Court of Iowa, 1968)
Iowa Natural Resources Council v. Van Zee
158 N.W.2d 111 (Supreme Court of Iowa, 1968)
Lacher v. Board of Trustees
221 A.2d 625 (Court of Appeals of Maryland, 1966)
Kruck v. Needles
144 N.W.2d 296 (Supreme Court of Iowa, 1966)
Green v. City of Mt. Pleasant
131 N.W.2d 5 (Supreme Court of Iowa, 1964)
Lewis Consolidated School District v. Johnston
127 N.W.2d 118 (Supreme Court of Iowa, 1964)
State v. Stump
119 N.W.2d 210 (Supreme Court of Iowa, 1963)

Cite This Page — Counsel Stack

Bluebook (online)
114 N.W.2d 539, 253 Iowa 870, 1962 Iowa Sup. LEXIS 666, Counsel Stack Legal Research, https://law.counselstack.com/opinion/iowa-hotel-association-v-state-board-of-regents-iowa-1962.