Meramec Valley R-III School District v. City of Eureka

281 S.W.3d 827, 2009 Mo. App. LEXIS 706, 2009 WL 790309
CourtMissouri Court of Appeals
DecidedFebruary 24, 2009
DocketED 91678
StatusPublished
Cited by15 cases

This text of 281 S.W.3d 827 (Meramec Valley R-III School District v. City of Eureka) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Meramec Valley R-III School District v. City of Eureka, 281 S.W.3d 827, 2009 Mo. App. LEXIS 706, 2009 WL 790309 (Mo. Ct. App. 2009).

Opinion

SHERRI B. SULLIVAN, Judge.

Introduction

Meramec Valley R-III School District (School District) appeals from the judgment of the trial court granting summary judgment in favor of the City of Eureka, Missouri (City) and JBA Eureka, LLC (Developer). We affirm.

Factual and Procedural Background

In the underlying action, School District challenged the propriety of City’s adoption of an ordinance authorizing the use of tax increment financing (TIF) for a redevelopment project.

TIF Act

The Real Property Tax Increment Allocation Redevelopment Act (TIF Act), Sections 99.800-99.865, 1 was enacted in 1982, to allow urban renewal of blighted areas by permitting tax abatements to be used for the redevelopment of these areas. City of Arnold v. Tourkakis, 249 S.W.3d 202, 205 (Mo.banc 2008). The TIF Act authorizes a city or municipality to utilize eminent domain to take property to facilitate redevelopment, Id., and undertake a redevelopment project under certain conditions laid out in Section 99.810. See State ex rel. City of Desloge v. St. Francois County, 245 S.W.3d 855, 858 (Mo.App. E.D.2007). Funds for the redevelopment project come essentially from the future increase in the value of the land once the redevelopment project is complete. City of Desloge, 245 S.W.3d at 858.

The TIF Act calls for the city implementing the plan to create a TIF Commission to formulate the plan and oversee its implementation. City of Desloge, 245 S.W.3d at 858, Sections 99.820.2 and 99.820.3. The Commission’s actions are subject to the final approval of the governing body of the municipality. City of Desloge, 245 S.W.3d at 858, Section 99.820.3. The Commission’s recommendations go into effect upon the municipality’s adoption of them by ordinance or resolution. City of Desloge, 245 S.W.3d at 858, see, e.g., Sections 99.820.1(14); 99.820.3; 99.825; 99.835.

*830 Once the redevelopment plan is in place, the municipality begins to accumulate funding in a special allocation fund. City of Dedoge, 245 S.W.3d at 858. Each year that the post-plan assessed value of the taxable real property within the redevelopment project area exceeds the pre-plan assessed value, property taxes on the increase in value are abated. Id. Instead of paying taxes, the landowners make payments in lieu of taxes equal to the amount the taxes would have been after improvements. Id., Section 99.805(10).

City’s Past, Failed Redevelopment Plans

On September 1, 1992, the Board of Aldermen of City (the Board) duly constituted the Tax Increment Financing Commission of the City of Eureka (the TIF Commission). In 1996, the TIF Commission considered a proposal to redevelop an area of City encompassing 382 acres, which was blighted in many significant respects, as defined in Section 99.805, and had not been, nor was reasonably anticipated to be, subject to development through investment by private enterprise.

The City considered plans for the redevelopment of this area in 1996 and 1997, adopting TIF for the 1997 plan via Ordinance 1306. The City then authorized the execution of a redevelopment agreement. However, the redevelopment plan did not proceed and the redevelopment agreement was terminated.

Current Redevelopment Plan

On May 2, 2005, Peckham Guyton Al-berts & Viets, Inc. Urban Consulting (PGAV) prepared a new plan for redevelopment for the TIF Commission’s consideration. This plan was titled “Tax Increment Financing Redevelopment Plan— Eureka S. 1-44 Redevelopment Area” (Redevelopment Plan), consisting of approximately 938 acres in the City (Redevelopment Area or Area). On May 16, 2005, Developer, in response to the City’s solicitation of proposals for developing the Redevelopment Area, submitted a proposal (Redevelopment Proposal).

The Plan’s Detailed Conditions of the Redevelopment Area

PGAV prepared the detailed analysis of the factors that characterize the Redevelopment Area as qualified for TIF development. In compiling the information detailing the conditions of the Redevelopment Area for the Redevelopment Plan, a number of sources of information were relied upon, including PGAV’s exterior conditions field investigations conducted in January of 2004 and February of 2005. Also, information on assessment, site improvements, building conditions and market conditions was gathered from data and records of the City and the St. Louis County Assessor. The evidence gleaned from the Redevelopment Plan was presented to the trial court prior to the time the motion for summary judgment was taken under consideration and consists of the following uncontrovert-ed facts.

Defective and Inadequate Street Layout

At the time the 2005 Redevelopment Plan was proposed and submitted, the Redevelopment Area demonstrated defective or inadequate street layout as follows.

In 1973, the “St. Louis County Report 2” noted that “... roads are in very poor condition; they are of gravel, full of potholes, and have steep grades.” In 2005, these conditions, as noted in 1973, had not been eliminated and therefore still existed. The PGAV report found that “[njearly all of the intersections within the central portion of the [Redevelopment] Area are poorly designed and so overgrown with weeds *831 that appropriate sight triangles do not exist.” 2

The streets in the Redevelopment Area were found to be either platted, but not constructed, or obsolete and inadequate. Specifically, with the exception of a few, 3 the remaining streets in the Redevelopment Area represented an inadequate overall street system incapable of supporting any significant development.

The PGAV report noted that the paved road surfaces in the Redevelopment Area, except for Wengler Road, are badly deteriorated and have no curbs or gutters. The remaining streets in the Redevelopment Area are narrow and unpaved. The PGAV report observed that the streets frequently allow for the passage of only one vehicle, thereby making them obsolete, inadequate and outmoded in design and function. The ditches adjacent to the roads are severely eroded, creating dangerous conditions.

O’Sullivan Avenue Bridge

The bridge over the railroad tracks at O’Sullivan Avenue was determined to be inadequate and obsolete. A 2001 study entitled “Eureka South 1-44 Access Feasibility Study” by Crawford Bunte and Brammeier Traffic and Transportation Engineers (CBB) described the access problems of the O’Sullivan Avenue Bridge:

The (O’Sullivan Avenue) bridge is less than 20 feet wide with substandard approaches to the adjacent intersections.

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Bluebook (online)
281 S.W.3d 827, 2009 Mo. App. LEXIS 706, 2009 WL 790309, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meramec-valley-r-iii-school-district-v-city-of-eureka-moctapp-2009.