Kleiser, Inc. v. Airport Commission of Airport District No. 1 of Jefferson Davis Parish

640 So. 2d 751, 93 La.App. 3 Cir. 1513, 1994 La. App. LEXIS 1618, 1994 WL 234288
CourtLouisiana Court of Appeal
DecidedJune 1, 1994
DocketNo. 93-1513
StatusPublished
Cited by2 cases

This text of 640 So. 2d 751 (Kleiser, Inc. v. Airport Commission of Airport District No. 1 of Jefferson Davis Parish) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kleiser, Inc. v. Airport Commission of Airport District No. 1 of Jefferson Davis Parish, 640 So. 2d 751, 93 La.App. 3 Cir. 1513, 1994 La. App. LEXIS 1618, 1994 WL 234288 (La. Ct. App. 1994).

Opinion

jjDOUCET, Judge.

This case concerns the propriety under the public bid laws of the award of a lease by the Airport Commission of Airport District No. 1 of Jefferson Davis Parish (Airport Commission).

The Airport Commission owns a tract of land located on Louisiana Highway 26 in Jennings, Louisiana. Located on the proper[752]*752ty are improvements formerly used as a Chevron Station. In late December 1991, and early January 1993, the Airport Commission advertised for bids for the lease of the property, as follows:

j¿PUBLIC NOTICE

The Airport Commission of Airport District # 1 of Jefferson Davis Parish, Courthouse, Jennings, Louisiana, will open bids on the 8th day of January, 1992 at 8:30 a.m. at the office of the Airport Commission, Jennings Airport, for a service station lease for the facility known as the Chevron Service Station located approximately at the corner of Interstate 10 and Louisiana Highway 26. A lease form containing the terms of the lease may be obtained by writing W.J. Riley, III, P 0 Box 1188, Jennings, Louisiana 70546. The minimum terms of the said lease shall be as follows:

A rental of five (5) cents per square foot on a 200 by 200 foot bases shall be charged as a minimum rental or TWO THOUSAND ($2000.00) dollars/month.

Further, there shall be a charge on all motor fuels sold as follows:

One (1) cent on the first twenty-five thousand (2500) gallons; one-half cent on the next twenty-five thousand (2500) and one-quarter cent per gallon on the remaining gallons of motor fuel sold.

The initial term of said lease shall be for ten (10) years commencing upon execution of the lease. There will be two (2) five (5) year option periods. The said base rental referred to above shall increase ten (10) percent during the first five (5) year option period over and above the preceding periods rental and a ten (10) percent increase will be in effect for the second five (5) year option period based upon an increase over the previous five (5) year option period. Further, the purpose of the lease is to operate a retail outlet for petroleum and grocery production and other related services. Any additional business can be operated with the prior written approval of the Commission. Perspective bidders must attach to their bids a commitment letter from a motor fuel wholesaler for the supply of motor fuels. Bidders must make arrangements with the current occupant of the said premises for the purchase and ownership of any and all fuel storage tanks located on or under the subject property. Bidders must commit to removal of tanks and pipes at the termination of the lease. The Airport Commission hereby reserves the right to reject any and all bids. Certification that bidder is an equal opportunity employer is required.

s/Ethelyn Caldewell Secretary Airport Commission of Airport District # 1 of Jefferson Davis Parish, Louisiana

(emphasis in record; added at trial level).

laThree bids were received and opened. The bid from Kleiser, Inc. consisted of a proposal to pay a monthly rental of $2,657.00 in addition to the charge on all motor fuels sold.

Shop Rite, Inc. (Shop Rite) bid a monthly rental of $2,300.00 in addition to the charge on all motor fuels sold. Shop Rite also included in its bid, a proposal to change the form lease sent to each potential bidder to allow sale of high alcohol content liquor. It further proposed a lease of additional property at the rear of the advertised property to accommodate a diesel fueling operation. Additionally, Shop-Rite outlined its plan for operation of the property, including a plan to demolish the existing building and construct a “3,200 square foot modem food store/fast food operation” and to upgrade the fueling facility to include multi dispensers at an estimated cost to Shop Rite of $500,000.00. Finally, Stop Rite included an outline of its corporate structure, financial references, and photographs of other Shop Rite facilities.

Cody’s Enterprises, Inc. (Cody’s) also submitted a bid which included a proposal to demolish the existing structure and build a new facility at an estimated cost of $250,-000.00. Cody’s also included projected gasoline sales, a market study, references, and financial statements of other similar businesses it owns.

[753]*753After taking the bids under advisement the Airport Commission awarded the lease to Shop Rite.

Kleiser, Inc., Kirkland Kleiser and Vicki Kleiser filed suit against the Airport Commission alleging that the Airport Commission violated the public bid law by failing to award the lease to Kleiser, Inc. since it had the highest bid, and asking for damages resulting to them.

The trial was bifurcated. On February 24, 1993, a trial held on the issue of whether the Airport Commission properly awarded the lease to Shop Rite. At the conclusion of the plaintiffs’ ease, the defendants moved for an involuntary dismissal, which the trial judge granted. Plaintiffs appeal.

|40n appeal, the plaintiffs contend that the trial judge erred in granting the defendants’ motion because the plaintiffs established their ease by a preponderance of the evidence. They argue that they introduced evidence to show that Kleiser, Inc. was the highest bidder; that Shop Rite’s bid was invalid; and that the Airport Commission was arbitrary and capricious in awarding the bid to Shop Rite.

VALIDITY OF SHOP RITE’S BID

We will first consider the plaintiffs’ contention that Shop Rite’s bid was invalid because it went beyond the specifications of the public notice and included reference to the bidder’s intention to build a new building.

The law is well-settled that it is only where there is “a substantial variance between bid specifications and a bid,” that the bid must be rejected. Tide Equipment Company v. Pointe Coupee Parish Police Jury, 312 So.2d 154 (La.App. 1st. Cir.1975), writ denied 315 So.2d 38 (La. 1975); Toye Bros. Yellow Cab Co. v. City of New Orleans, 264 So.2d 768 (La.App. 4th Cir.1972), writ refused 263 La. 102, 267 So.2d 210.

King Cold Storage v. New Orleans, 522 So.2d 169, 171 (La.App. 4 Cir.), writ denied, 530 So.2d 82 (La.1988).

Shop Rite’s bid met all bid specifications. Additionally, Shop Rite further exceeded the bid requirements by outlining its plans for improvement and operation of the facility. Both Shop Rite and Cody’s included documentation supporting their ability to successfully operate the facility, as well as outlines of their plans to improve the property. We cannot say that Shop Rite’s bid varied substantially from the bid specifications by going beyond the bare mínimums required by the bid specification to include supporting documentation.

HIGH BID

The plaintiffs further assert that the Airport Commission was required by La.R.S. 41:1215 to award the lease to the highest Ifibidder. They further argue that since on its face Kleiser, Inc.’s bid was the highest, the Airport Commission was arbitrary and capricious in awarding the bid to Shop Rite.

The situation before us is similar to that presented in Plantation on the Green, Inc. v. Gamble, 441 So.2d 299 (La.App. 4 Cir.), writ denied, 443 So.2d 600 (La.1983). That case concerned bids solicited by the Audubon Park Commission for lease of a restaurant located in the Audubon Zoo.

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640 So. 2d 751, 93 La.App. 3 Cir. 1513, 1994 La. App. LEXIS 1618, 1994 WL 234288, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kleiser-inc-v-airport-commission-of-airport-district-no-1-of-jefferson-lactapp-1994.