Mississippi Gaming Commission v. Harrison Cnty Bd of Educa

CourtMississippi Supreme Court
DecidedDecember 30, 1994
Docket95-CA-00133-SCT
StatusPublished

This text of Mississippi Gaming Commission v. Harrison Cnty Bd of Educa (Mississippi Gaming Commission v. Harrison Cnty Bd of Educa) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mississippi Gaming Commission v. Harrison Cnty Bd of Educa, (Mich. 1994).

Opinion

IN THE SUPREME COURT OF MISSISSIPPI NO. 95-CA-00133-SCT MISSISSIPPI GAMING COMMISSION; W. W. GRESHAM, CHAIRMAN; VICTOR SMITH, COMMISSIONER; ROBERT ENGRAM, COMMISSIONER; MAJOR GENERAL PAUL HARVEY, EXECUTIVE DIRECTOR; AND MIKE MOORE, ATTORNEY GENERAL v. BOARD OF EDUCATION, HARRISON COUNTY, MISSISSIPPI AND ROYAL CASINO CORPORATION

DATE OF JUDGMENT: 12/30/94 TRIAL JUDGE: HON. JAMES E. THOMAS COURT FROM WHICH APPEALED: HARRISON COUNTY CIRCUIT COURT ATTORNEY FOR APPELLANTS: OFFICE OF THE ATTORNEY GENERAL BY: M. CAROLE BRAND ATTORNEYS FOR APPELLEES: ALBEN N. HOPKINS JAMES B. PERSONS THOMAS A. WALLER ALBERT LIONEL NECAISE NATURE OF THE CASE: CIVIL - STATE BOARDS AND AGENCIES (OTHER THAN WORKER'S COMPENSATION) DISPOSITION: REVERSED AND COMMISSION'S DECISION REINSTATED - 3/20/97 MOTION FOR REHEARING FILED: 4/3/97 MANDATE ISSUED: 5/29/97

BEFORE PRATHER, P.J., BANKS AND McRAE, JJ.

McRAE, JUSTICE, FOR THE COURT:

¶1. The Mississippi Gaming Commission files an appeal from a December 30, 1994 order of the Harrison County Circuit Court finding arbitrary, capricious, and unsupported by the evidence or applicable law its determination that Sixteenth Section land located on Bernard Bayou in Gulfport, Mississippi, which Royal Casino sought to develop, was not a legal gambling site. Aggrieved by the circuit court's ruling, the Commission now asks this Court to consider: (1) whether there is a right to appeal the denial of a preliminary site approval, a licensing decision of the Mississippi Gaming Commission; (2) whether it acted in excess of its statutory authority in denying the preliminary site approval to Royal Casino; (3) whether its finding of fact that Bernard Bayou is a bayou and therefore not a suitable site for gaming operations was arbitrary and capricious; and (4) whether the Board, which was not the license applicant, has standing to appeal a licensing decision made by the Commission.

¶2. We find that the circuit court had jurisdiction to entertain Royal Casino's appeal of the Commission's denial of its preliminary site request and that the Board of Education was a proper party to the action. We further find that the circuit court erred in ruling that the Commission exceeded its authority in determining that Bernard Bayou was not a proper gaming site and that denial of the preliminary site approval was arbitrary, capricious and unsupported by the evidence. Accordingly, we reverse the order of the circuit court and reinstate the Commission's decision.

I.

¶3. Royal Casino Corporation, headquartered in Rochester, New York, leased a parcel of Sixteenth Section land from the Board of Education of Harrison County. On April 20, 1993, Royal Casino filed its Application for State Gaming License with the State Gaming Commission, with the intent of constructing a gaming facility on the 125 acre site. Touted as "The Gateway to the Gulf Coast," the proposed development would include two casinos and a shopping mall. It was estimated that the $300 million project would create eight thousand new jobs and generate $24 million in sales tax and annual gaming taxes of approximately $326 million. The Board anticipated some $180 million in rental revenues over the forty year term of the lease.

¶4. The proposed Royal Casino site is located northeast of the intersection of Interstate 10 and U.S. Highway 49 on Bernard Bayou. Bernard Bayou meanders for more than two miles to the west and north toward the interstate from Big Lake, which is located at the far western end of the Back Bay of Biloxi. Variously described as a bayou and as an estuary, the site experiences some effect from the ebb and flow of the average tide.

¶5. A site assessment hearing was held on April 21, 1994. The Gaming Commission was presented with expert affidavits and testimony regarding the hydrographic properties of the site. Proponents and opponents of the site discussed the economic and social impact of the project. Based on this evidence, maps, a site visit, and the statutes and regulations governing gaming sites, the Commission's Executive Director recommended against approval of the Bernard Bayou site, as reflected in the minutes of the April 21, 1994 site assessment hearing.

Based upon a physical inspection of the site, maps depicting the site and adjacent development, presentations by both the proponents and opponents of the site, a review of statutory and regulatory provisions relating to suitable locations for gaming operations, following commission past practice and directives codified at Mississippi Gaming Commission Regulation No. 2, it is the recommendation of the Executive Director that preliminary site approval be denied. Substantial, if not overwhelming evidence shows the Bernard Bayou site to be located on a bayou. It cannot credibly be defined as a permissible extension of the waters of the Mississippi Sound, St. Louis Bay, Biloxi Bay, or Pascagoula Bay. Bernard Bayou is not a suitable site allowed by state law or the Mississippi Gaming Commission Regulation No. 2. The site, if approved, could and would open the State of Mississippi to inland land-based casino gaming. In order to promote and maintain public confidence and trust in gaming, the Commission intends to strictly regulate the location of gaming operations in Mississippi. In the recognition of public interest in restricting gaming to the waters of the Mississippi Sound, Biloxi Bay and St. Louis Bay, and being consistent with past practice, the Gaming Commission will not recommend sites that are located on tributaries emptying into those waters.

(emphasis added). The Director's recommendation was accepted by a 2-1 vote at the May 31, 1994 Special Interim Commission Meeting.

¶6. The Board of Education of Harrison County and Royal Casino Corporation filed a Petition for Review with the Harrison County Circuit Court on July 18, 1994. The petitioners charged that neither state statutes nor Commission Regulation No. 2 prohibited gaming operations on the proposed site.(1) In the alternative, they argued that if Regulation No. 2 were found to bar development of the site, it should be declared void and in violation of Miss. Code Ann. § 97-33-1 (1993). Keeping all avenues open, they further argued, in the alternative, that § 97-33-1 was unintelligible and unconstitutional.

¶7. In response, the Gaming Commission asserted that the circuit court lacked jurisdiction over the matter because preliminary site approval is not statutorily subject to appeal. The Commission sought to dismiss the complaint against the Commissioners as charged in their individual capacities. It further asserted that the Board of Education of Harrison County, which had not filed the application for site approval, was not a proper party to the case. In its July 28, 1994 Motion to Dismiss Petition for Review, the Commission specifically asserted that the site decision, the initial phase of a licensing decision, was not subject to judicial review pursuant to Miss. Code Ann. § 75-76-127(2). The Commission, in a separate Motion to Dismiss a Party to Petition for Review, sought to dismiss the Board from the appeal, again arguing that it did not have standing.

¶8. A hearing was held on November 21, 1994. On December 30, 1994, the circuit court entered its opinion, reversing the Commission's order and finding that Bernard Bayou was "a lawful and legal site" for a casino. The circuit court further denied the Commission's motion to dismiss the Board of Education as a party and dismissed the action against the Commissioners and the Executive Director in their individual capacities.

II.

¶9.

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Mississippi Gaming Commission v. Harrison Cnty Bd of Educa, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mississippi-gaming-commission-v-harrison-cnty-bd-o-miss-1994.