Larsen v. City & County of San Francisco

313 P.2d 959, 152 Cal. App. 2d 355, 1957 Cal. App. LEXIS 1904
CourtCalifornia Court of Appeal
DecidedJuly 10, 1957
DocketCiv. 17618
StatusPublished
Cited by17 cases

This text of 313 P.2d 959 (Larsen v. City & County of San Francisco) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Larsen v. City & County of San Francisco, 313 P.2d 959, 152 Cal. App. 2d 355, 1957 Cal. App. LEXIS 1904 (Cal. Ct. App. 1957).

Opinion

BRAY, J.

Plaintiff brought this taxpayer’s suit to restrain the city and county of San Francisco from appropriating $2,000,000 to purchase a parcel of real property at Fifth and Mission Streets, and to restrain all defendants from carrying out the provisions of an agreement 1 entered into between defendant Shoppers Downtown Parking, a corporation, and the city. Plaintiff appeals from the judgment in favor of defendants.

Questions Presented

1. Are the parking laws unconstitutional because of alleged arbitrary powers conferred upon the Parking Authority?

2. Is the agreement invalid ?

3. Does the procedure adopted to acquire the parking site violate the city charter?

4. Is a public off-street parking facility a public utility?

5. Are the findings supported ?

Facts

The city, by ordinance in 1955, appropriated $2,000,000 from the unappropriated balance of the 1947 Off-Street Parking Bond Fund, to acquire the above mentioned property for *359 a public off-street parking facility with a capacity of approximately 1,000 automobiles to be constructed and operated thereon. The site was designated and recommended to the board of supervisors by the parking authority of the city on the basis of studies and reports conducted over a period of approximately eight years and was approved by the board. February 28, 1956, the board adopted a resolution authorizing the acquisition of the property by eminent domain proceedings for a public off-street automobile parking site. July 24, 1956, the board passed a resolution authorizing the execution of an agreement between the city and Shoppers Downtown Parking, a nonprofit corporation. The substance of that agreement follows: (1) The city will acquire the above mentioned site. (2) The corporation will at its own expense construct thereon the garage facility required by the city and the title to the facility will vest in the city upon construction. (3) The corporation will finance the cost of construction by borrowing money, which loan will be evidenced by notes of the corporation designated as construction finance notes. (4) All the corporation’s stock will be placed in trust for the city. (5) The city will call for bids for an operating lease of the facility. The form of lease is attached to the agreement. The lease requires that the construction finance notes will be paid from the revenues of the project, whether the lease be awarded to the corporation or to some other person, firm or corporation. (6) The corporation is permitted to bid for the lease on the same footing as any other bidder, and agrees to submit a bid for the operating lease which will be equal to 100 per cent of the net receipts, i. e., the amount remaining at the end of each year after payment of the expenses of the facility and debt service upon the construction finance notes out of gross revenues. (7) The corporation shall have no recourse against the city for payment for the construction of the facility and agrees to look solely to payments made by the lessee upon the construction finance notes for reimbursement for such costs.

The form of lease provides: (1) a term of 50 years, subject to the right of the city to terminate the lease any time after the construction finance notes have been paid. (2) Lessee shall pay the indebtedness incurred by the corporation to finance the construction of the facility, as evidenced by the construction finance notes. (3) Lessee shall pay all gross receipts from operation of the facility to the bank which is authorized to disburse them as follows: (a) all amounts payable on account of the indebtedness incurred by the corpora *360 tion to finance construction; (b) to lessee, all normal and reasonable operating expenses, subject to examination, audit and approval of the city controller; (c) to lessee, all administrative and management expenses not to exceed $10,000 per year; (d) to the corporation, all monthly operating expenses such as franchise taxes, etc., approved by the city controller; (e) to the bank, for the account of the city the agreed percentage of the net receipts; (f) to lessee, the amount, if any, remaining. (4) The premises will be used solely for the operation of a public automobile parking facility and for the incidental sale of petroleum and petroleum products. (5) The rates and charges for parking will be established by the city from time to time, and, subject to modification by the city, an initial rate of 15 cents per hour is fixed.

1. Constitutionality of Parking Laws.

The claimed unconstitutionality of these laws is based primarily upon the contention that the Parking Authority provided therein is granted arbitrary powers and is a “legal Frankenstein.” These laws create in each city a public body corporate and politic known as the Parking Authority of the city. Such authority shall not function until the legislative body of the city by resolution declares that there is need for the authority to function therein. (The board of supervisors by resolution declared such necessity.) Sections 32800-32956, Streets and Highways Code, set forth the powers of the authority. They are many and broad. It is not necessary to detail them here. They are similar to, and, in many respects, the same as the powers granted the Housing Authority by the Housing Authorities Law and the Housing Cooperation Law. 2 These laws were held to be constitutional in Housing Aiithority v. Dockweiler, 14 Cal.2d 437 [94 P.2d 794], reaffirmed in Kleiber v. City of San Francisco, 18 Cal.2d 718, 719 [117 P.2d 657]. The provisions of the Parking Law of 1949 are similar to the provisions contained in the Community Redevelopment Law (Health & Saf. Code, §§ 33000-33954) held to be constitutional in Redevelopment Agency v. Hayes, 122 Cal.App.2d 777 [266 P.2d 105].

These cases demonstrate that the powers given the Parking Authority created by the parking laws are not “an unconstitutional delegation of executive, legislative and judicial powers, to an irresponsible body which is described *361 as a ‘public body corporate and politic . . .’ ” The power given the Parking Authority of eminent domain, the power to make contracts and leases, to make regulations to carry into effect the purposes of the parking laws and all the other powers provided by those laws, are similar to and no more arbitrary than those granted Housing Authorities by the housing laws above mentioned and which were held to be constitutional in Housing Authority v. Dochweiler, supra, 14 Cal.2d 437. The purposes to which the parking projects are to be devoted are public ones, and that “necessarily answers the contention addressed to the exercise of the right of eminent domain by the authorities created to carry on such projects.” (P.

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Bluebook (online)
313 P.2d 959, 152 Cal. App. 2d 355, 1957 Cal. App. LEXIS 1904, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larsen-v-city-county-of-san-francisco-calctapp-1957.