Knoxville's Community Development Corp. v. Wright

600 S.W.2d 745, 1980 Tenn. App. LEXIS 334
CourtCourt of Appeals of Tennessee
DecidedApril 11, 1980
StatusPublished
Cited by6 cases

This text of 600 S.W.2d 745 (Knoxville's Community Development Corp. v. Wright) 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
Knoxville's Community Development Corp. v. Wright, 600 S.W.2d 745, 1980 Tenn. App. LEXIS 334 (Tenn. Ct. App. 1980).

Opinion

OPINION

SANDERS, Judge.

In this condemnation case the Defendants have appealed from a judgment of the circuit court holding the Petitioner had a right to condemn Defendants’ property.

The Petitioner-Appellee, Knoxville’s Community Development Corporation, is a public body corporate and politic organized under the Tennessee Authorities Law as set forth in T.C.A. § 13-20-101 et seq., as amended, for the purposes of blighted area clearance and redevelopment and operates under Chapter 114 of the Public Acts of 1945 and as provided in T.C.A. § 13-20-201, et seq. Under the statutes a housing authority such as Petitioner has a right to acquire, through condemnation or otherwise, property that has been legislatively declared by the city to be a blighted area for the purpose of clearance and redevelopment.

In July, 1977, the City Council for the City of Knoxville approved an urban renewal plan known as Center City Redevelopment Project No. 4 (Lower Second Creek) and authorized the Petitioner to implement this plan. The plan encompasses some 67 acres which the city council and the Petitioner determined to be a blighted area. Generally, it is bounded on the north by Jackson Avenue and Western Avenue, on [747]*747the south by Neland Drive, on the west by Fort Sanders neighborhood and the University of Tennessee and on the east by Henley Street. The redevelopment plan for the area includes upgrading and relocating streets and alleys, improving utilities, elimination of inadequate lot sizes and rezoning to intensify growth and development, preservation and restoration of the area's historical and architecturally important structures, removing the blighted influence in the area, intensifying commercial development in the Henley Street corridor and the location of permanent structures in the area which would be used for the Knoxville International Energy Exposition in 1982 and then used for business and commercial purposes thereafter. Included in the plan is the widening of Henley Street which will require an additional 40 feet of right-of-way on the westerly side.

Defendants-Appellants, Arthur L. Wright, Executor of the Estate of William C. Dunn, and Arthur L. Wright and wife, Margaret S. Wright, individually, own two lots located within the project. The lots face 50 feet on the westerly side of Henley Street and have a depth of 228 feet. A building is located on one of the lots. It fronts on Henley Street and has a depth of approximately 80 feet.

In August, 1979, the Petitioner filed suit in the Circuit Court of Knox County seeking to condemn the Defendants’ property. The Defendants filed an answer in which they challenged the right of the Petitioner to condemn their property. As pertinent to this appeal, the Defendants contended in their answer the Petitioner had agreed to lease their property to Knoxville International Energy Exposition, a private corporation, and at the conclusion of the Energy Exposition to sell it to private developers for commercial use, and this is not a legitimate public use within the meaning of the statutory authority relied upon by the Petitioner.

The case was heard by the circuit judge on the single issue of the right of the Petitioner to take the property. The judge held the Petitioner had the right to take the property and the Defendants were granted an interlocutory appeal on that issue.

The material factual issues are not in dispute. They show that in September, 1979, about six weeks after suit was filed but about six months before the case was tried, a Mr. Alex Harkness, the principal for Harkness Corporation, submitted to the Petitioner, the City of Knoxville and Knoxville International Energy Exposition a plan for developing approximately 10 acres of the 67 acres within the project. The proposed plan was designed to be in keeping with the original over-all redevelopment plan of the area. It encompassed an area in the northeasterly corner of the project bounded generally by Western Avenue on the north, Clinch Avenue on the south and Henley Street on the east. About six acres of the land in the area belonged to L & N Railroad and the remaining four acres covered property which Petitioner owned or would be required to acquire from others, including the property of the Defendants. The plan called for the acquisition and renovation of the railroad station on the L & N property and the erection of an additional building or buildings on the portion of the remaining property. The plan called for the leasing of the buildings and property to Knoxville International Energy Exposition until the latter part of 1982, after which the property would be used for commercial use including office space.

The Harkness plan was approved by the Petitioner, the City of Knoxville and the Knoxville International Energy Exposition on or about September 24, 1979. The record reflects that on the same date the Petitioner agreed to sell Harkness the four acres of land needed for the project in addition to the L & N property. This included the Defendants’ property which is the subject of this litigation. There is no contract of sale for the property between the Petitioner and Harkness in the record but in our determination of the case we shall treat the understanding between the parties as an enforceable contract.

As pertinent here, the Appellants have presented the following issues for consideration on this appeal:

[748]*748ISSUE ONE—“Is Knoxville’s Community Development Corporation’s determination to take Defendant-Appellants’ property and sell it to Harkness Corporation based on its resolution approving the Harkness Development Plan for the four (4) acres (for erection of an office building and commercial complex, including a motel on Defendant-Appellants’ property, to be owned and built by the private commercial development company), but in the absence of a Legislative Act by the Knoxville City Council adopting said plan, an act beyond KCDC’s delegated powers?
“Is such determination an abuse of its discretion?”
ISSUE TWO—“Is the KCDC condemnation suit, where KCDC acquires Defendant-Appellants’ property pursuant to an agreement to sell it to Harkness for its commercial development, a condemnation for a public use or a private use? Is this proposed taking prohibited by Article 1, Sec. 21 of the Constitution of the State of Tennessee, and the 14th Amendment of the Constitution of the United States?”

In discussing the first issue in their brief, the Defendants say, “. . . Defendant-Appellants insist that KCDC filed its petition without legislative authority from the Knoxville City Council and exceeded its delegated authority. . . . ”

This issue was not raised in the trial court and is raised for the first time on this appeal. We do not think it is controlling. However, since the case was not tried on this theory, nor was the issue raised below, it cannot now be raised for the first time in this court. Murphy v. Reynolds, 31 Tenn.App. 94, 212 S.W.2d 686; McDaniel v. Owens, 39 Tenn.App. 73, 281 S.W.2d 259; Thomas v. Noe, 42 Tenn.App.

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Bluebook (online)
600 S.W.2d 745, 1980 Tenn. App. LEXIS 334, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knoxvilles-community-development-corp-v-wright-tennctapp-1980.