Louisiana Public Facilities Authority v. All Taxpayers, Property Owners, Citizens of the State & Nonresidents Owning Property or Subject to Taxation Therein

868 So. 2d 124, 2003 La.App. 1 Cir. 2738, 2003 La. App. LEXIS 3649
CourtLouisiana Court of Appeal
DecidedDecember 23, 2003
DocketNos. 2003 CA 2738, 2003 CA 2739
StatusPublished
Cited by10 cases

This text of 868 So. 2d 124 (Louisiana Public Facilities Authority v. All Taxpayers, Property Owners, Citizens of the State & Nonresidents Owning Property or Subject to Taxation Therein) 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
Louisiana Public Facilities Authority v. All Taxpayers, Property Owners, Citizens of the State & Nonresidents Owning Property or Subject to Taxation Therein, 868 So. 2d 124, 2003 La.App. 1 Cir. 2738, 2003 La. App. LEXIS 3649 (La. Ct. App. 2003).

Opinions

J^PETTIGREW, J.

This is an appeal of a judgment rendered in favor of the Board of Supervisors (“Board”) of Louisiana State University Agricultural and Mechanical College (“LSU”) and the Louisiana Public Facilities Authority (“the Authority”), declaring valid and legal a bond issuance and related contracts prepared in conjunction with a cooperative endeavor between LSU and [126]*126the Tiger Athletic Foundation (“Foundation”) to make improvements to Tiger Stadium and for the construction of a Football Operations Center, amounting to some $90,000,000.00. In a consolidated suit, filed by an LSU student, a petition for injunction seeking to enjoin a proposed raise in the price of Tiger Stadium football tickets was dismissed. For the reasons that follow, we affirm.

FACTS AND PROCEDURAL HISTORY

On August 21, 2003, a special meeting of the LSU Board was held for the purpose of voting on a new “General Pricing Policy For Home Football Games” for the 2004 football season and thereafter (“general pricing policy”). The new policy was passed. In the general pricing policy, the price of single game football tickets was raised from $32.00 to $36.00, with season tickets to be priced at $252.00 for seven home games and $216.00 for six home games. A previously existing $4.00 surcharge on single tickets and a previously existing season ticket surcharge of either $25.00 or $50.00 per seat per season was discontinued. However, the requirement of a “donation” or “contribution” in support of the LSU athletic department, ranging from $85.00 to $400.00 per seat per year for season tickets, was inserted into the pricing policy.1

1 ¡¡On September 26, 2003, a “Cooperative Endeavor and Lease Agreement” (“Cooperative Endeavor”) was signed by Mark A. Emmert, Chancellor of LSU; William L. Jenkins, President of Louisiana State University System; and R.G. Richard, CEO of the Foundation. The Cooperative Endeavor provided for a lease of the property and facilities at issue from LSU to the Foundation in exchange for the Foundation’s paying an annual rental of $25,000.00, and the Foundation’s agreement to complete the specified repairs, renovations, and construction projects. The lease term for the ground was to be fifty years, while the lease term for the facilities was to commence on the date of “Substantial Completion” of the improvements and terminate on March 31, 2041, with a renewal option.2

In the Cooperative Endeavor, the Foundation agreed to lease the facilities to LSU, excepting a certain number of “Foundation Club Seats,” upon payment by LSU of $2,500,000.00 per year beginning on September 1, 2005. In addition to other agreements, provisions, and terms not pertinent to this litigation, the Cooperative Endeavor further provided that the Foundation would arrange for construction of the improvements in accordance with plans and specifications contained therein. It was agreed that construction would commence not later than twelve months from the approval of the plans and specifications or from the effective date of the agreement, whichever was later. The Foundation further agreed not to encumber the property without prior LSU approval, “other than the pledge and assignment of, and grant [127]*127of security interest in and to the LSU Rent, and the donations, rents, revenues, premiums, and profits derived from the sale of tickets by Foundation in Tiger Stadium and revenues received by Foundation pursuant to Qualified Corporate Sponsorships [corporate scoreboard sponsorships] |4to secure its obligations relating to the Bonds and to any Credit Enhancement Provider [issuer of letters of credit or bond insurance].”3

Financing of the project was evidenced by a “Loan Agreement” between the Authority and the Foundation, as well as by a “Trust Indenture” between the Authority and Bank One, both of which were dated November 1, 2003. In addition, an “Act of Assignment of Pledged Revenue and Security Agreement” was entered into between the Foundation and Hibernia National Bank (“Hibernia”), which included a pledge of revenue generated from Tiger Stadium. The affidavits of Elizabeth St. Paul, Vice President of Hibernia, and LSU President William L. Jenkins, were made a part of the record; these affidavits attested that the validity of the football ticket pricing policy at issue herein and the pledge of that revenue was an integral part of the financing arrangements for the overall project.

Prior to the hearing on this matter, Mr. Hodge, LSU, and the Authority entered into a written “Joint Stipulation of Facts,” which was introduced into evidence and revealed the following facts: On August 21, 2003, the LSU Board authorized execution of a Cooperative Endeavor between LSU and the Foundation and authorized Jenkins to do all things necessary to implement the agreement; the board of directors of the Foundation authorized the Cooperative Endeavor; execution of the Cooperative Endeavor will result in more than $55 million in improvements to Tiger Stadium to be constructed by the Foundation; the Foundation will also construct a new West Side Upper Deck; general stadium improvements will be transferred to LSU pursuant to the Cooperative Endeav- or; the combined costs to the Foundation will be $67 million; pursuant to the lease agreement, the Foundation and LSU agreed the Foundation will construct a | fifootball operations center costing $15 million; over the past three years, the LSU Athletic Department contributed approximately $2.5 million of its revenue to the LSU Board for academic purposes; lease of the completed West Side addition by the Foundation to LSU will be recorded on the financial statements of the LSU Board as an operating lease; as an operating lease, the payment obligation of the LSU Board will not constitute a “net state tax supported debt” under 1993 La. Acts, No. 813, the Debt Limitation Law; the Authority adopted a resolution to authorize issuance of the bonds; an executed copy of the cooperative endeavor was attached to the stipulations; the “Trust Indenture,” loan agreement, and assignments were legally approved; there was evidence of requisite publication; the State Bond Commission and the Attorney General’s office were properly notified; and all pertinent minutes, associated documents, and proofs thereof were submitted to the court. It was further verbally stipulated on the day of the hearing that, “[t]he authority having been delegated, the LSU Board of Supervisors does not act at formal meetings to give specific approval for each of the fol[128]*128lowing items: number one, housing rent; number two, concession prices; number three, bookstore merchandise; number four, veterinary services; number five, copy costs; number six, theater tickets; number seven, fees paid by students for pharmacy, laboratory and x-ray services.”

Following the November 18, 2003 hearing, the trial court rendered judgment in favor of the Authority in suit number 512,-751, validating the bond issuance and LSU ticket pricing policy, and against the plaintiff in suit number 512,930, denying injunc-tive relief. Mr. Hodge filed the instant appeal, which was assigned expedited status in accordance with La. R.S. 13:5121 et seq.4 On appeal, Mr. Hodge assigns |fias error the trial court’s finding that the “fee assessed by [LSU] for the right to purchase season tickets, is not a fee as understood by Art. VII, Sec. 2.1 of the Louisiana State Constitution.”

DISCUSSION

The constitutional provision at issue in this dispute is La. Const. Art. VII, § 2.1, which provides as follows:

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868 So. 2d 124, 2003 La.App. 1 Cir. 2738, 2003 La. App. LEXIS 3649, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-public-facilities-authority-v-all-taxpayers-property-owners-lactapp-2003.