Old Omaha Ass'n v. City of Omaha

513 N.W.2d 329, 2 Neb. Ct. App. 618, 1994 Neb. App. LEXIS 62
CourtNebraska Court of Appeals
DecidedMarch 8, 1994
DocketA-91-901
StatusPublished
Cited by4 cases

This text of 513 N.W.2d 329 (Old Omaha Ass'n v. City of Omaha) is published on Counsel Stack Legal Research, covering Nebraska Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Old Omaha Ass'n v. City of Omaha, 513 N.W.2d 329, 2 Neb. Ct. App. 618, 1994 Neb. App. LEXIS 62 (Neb. Ct. App. 1994).

Opinion

Sievers, Chief Judge.

With this lawsuit, Old Omaha Association (Association) seeks to stop the City of Omaha (City) from building a multilevel parking garage in the Old Market area of Omaha. The Association sued to enjoin the City from using the power of eminent domain to acquire the surface parking lot which the Association now owns and operates, and upon which the City proposes to build a multilevel parking facility. The district court for Douglas County denied the Association’s request for injunctive relief. A timely appeal was perfected to this court.

FACTUAL BACKGROUND

The Old Market area of Omaha is a district of retail shops, dining and entertainment establishments, and residential quarters, which area was formerly Omaha’s wholesale produce and public market, originally developed during the last two decades of the 19th century. Most of the old buildings which had fallen into disuse and disrepair have been restored and preserved so that the original character and structural appearance of the buildings have been retained while the area itself has been transformed. The evidence is that the Old Market is now the city’s most frequented historical site as well as a greatly popular shopping, dining, and entertainment destination.

*620 The land at the heart of this controversy is Lots 1 through 4, Block 152, Original City of Omaha, which lots are located within the Burlington-Old Market Redevelopment Plan (Burlington Plan) area. This plan was adopted November 2, 1976, by the City pursuant to the Community Development Law, Neb. Rev. Stat. § 18-2101 et seq. (Reissue 1991, Cum. Supp. 1992, &Supp. 1993).

The Burlington Plan states as follows with respect to the subject of parking:

The primary circulation problem facing the Burlington-Old Market Area at the present time is the lack of adequate vehicle parking space. This problem can be relieved to a small extent by rearranging existing curb-side spaces from parallel to diagonal parking. However, the most ideal solution is the designation and development of adequate off-street parking facilities as provided in this redevelopment plan. Some public participation in site acquisition may be necessary in order to insure that sufficient off-street parking is provided as additional restoration and redevelopment take place.

The plan, in the section entitled “Capital Improvement Program,” provided for parking lot development in the amount of $187,500 for site acquisition and $254,700 for improvements, to be funded by a community development block grant and private funding, respectively. Several drawings which are part of the plan show proposed parking at the site now owned by the Association.

Pursuant to the Community Development Law, the land at issue was declared in the Burlington Plan to be “substandard and in need of redevelopment.” The City acquired the premises by condemnation in 1978, except for the eastern 22 feet of Lot 4, Block 152. Proposals for the construction of a parking facility at 10th and Harney Streets, the location of the involved premises, were solicited by the City. The Association responded with a proposal dated December 6, 1978, for the construction and operation of a parking facility. The statement of purpose of the proposal recognized that there was an “acute need for adequate parking facilities” within the Old Market area and proposed a three-phase project beginning with a surface *621 parking lot with 104 customer spaces and 28 spaces reserved for long-term rental. The first phase was to be operational within 1 year from the date of possession. In the second phase, within 1 to 5 years, there would be landscaping, lighting, and “initial construction of multi-use facilities ... as long as the parking facility provides adequate spaces for customer parking ...” Shops, restaurants, and apartments were the proposed “multi-use facilities for the area.” The Association’s proposal for the third phase, within 5 to 20 years, was “the possible installation ... of a multi-level parking structure with additional multi-use structures.”

On December 26,1978, the City and the Association entered into a redevelopment agreement under the authority of the Community Development Law. On March 1, 1979, the City deeded the property to the Association by warranty deed, and on October 28, 1981, Samuel D. Mercer, who had acquired the eastern 22 feet of Lot 4, Block 152, deeded it to the Association, thereby placing the entire parking lot premises under the ownership of the Association. Since 1979, the Association had operated the premises as á surface parking facility for the general public. In 1984, the Association and the Artists Cooperative Gallery began operating an art gallery in a garage space on the premises. Additionally, between the years 1985 and 1987, the Association developed a sculpture garden across the alley from the parking lot.

In April 1988, the Omaha City Council adopted by resolution the Downtown East Redevelopment Plan (Downtown East Plan), covering an area bounded by Capitol Avenue on the north, 10th Street on the east, Leavenworth Street on the south, and 14th Street on the west. The area included the Association’s parking lot. This plan recited that the “area is located within the Central Business District which has been declared a ‘blighted and substandard’ area in need of redevelopment pursuant to the Nebraska Community Development Law.” The plan documents asserted that the area involved has “experienced substantial redevelopment and revitalization within the last ten years.” The plan made extensive reference to the Central Park Mall and its impact on the area in conjunction with the Old Market located close by. *622 The plan extensively discussed the four districts within the area: the South Frame, the Old Market, the Central Park Mall, and the North Frame.

We quote the Downtown East Plan on the Old Market section with reference to parking:

3. New Development: While the Old Market puts an overwhelming emphasis on adaptive reuse projects, it presents some opportunities for new development. The most strategic of these is the Old Market parking lot, south of Harney between 10th and 11th Streets. Possible development for this site could include a public parking structure, with retail use along the important 11th Street frontage. Any new development in the Old Market must complement the scale, materials, and design of the historic core of the district.

Public notice of the Downtown East Plan was published and a hearing set before the city council on April 19, 1988, which resulted in the adoption of the plan.

In early 1990, the City announced its intention to construct a multilevel parking garage on the site occupied by the Association’s parking facility. On April 10, 1990, the Omaha City Council approved the necessity ordinance which expressly authorized the taking by eminent domain of the Association’s land should negotiations for acquisition be unsuccessful. The ordinance, No. 32037, provided that the purpose of the acquisition was for “redevelopment, parking and other public purposes.” The Downtown East Plan, in the section entitled “Project Implementation,” states: “1.

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513 N.W.2d 329, 2 Neb. Ct. App. 618, 1994 Neb. App. LEXIS 62, Counsel Stack Legal Research, https://law.counselstack.com/opinion/old-omaha-assn-v-city-of-omaha-nebctapp-1994.