Opinions of the Justices to the House of Representatives

250 N.E.2d 547, 356 Mass. 775, 1969 Mass. LEXIS 929
Massachusetts Supreme Judicial Court·Decided August 14, 1969·Published·Cited by 38 cases

Opinion

[795] We are of opinion that a large multi-purpose stadium or an arena for public activities and events, conventions, professional and amateur athletic events, and other large gatherings may be for a public purpose if the expenditure of public funds, the extension of public privileges, powers, and exemptions, and the use, rental, and operation of the projects are adequately governed by appropriate standards and principles set out in the legislation. The Legislature may reasonably determine that there are economic, civic, and social advantages to Boston, to eastern Massachusetts, and to the Commonwealth as a whole, from providing in the largest city in the State a stadium and an arena large enough to attract conventions and similar gatherings and to provide for audiences sufficient to support enterprises of interest to large numbers of people, and suitable to provide recreation and instruction to citizens and others. See Boston v. Merchants Natl. Bank of Boston, 338 Mass. 245, 248-252, and cases cited. See also two recent cases in Pennsylvania, which may go somewhat beyond our own decisions in various respects, Martin v. Philadelphia, 420 Pa. 14, 17; Conrad v. Pittsburgh, 421 Pa. 492, 496.

The provision of such facilities, however, is not as clearly and directly a public purpose as supplying housing, slum [796] clearance, mass transportation, highways and vehicular tunnels, educational facilities, and other necessities. As to such essential enterprises, the public objectives are well understood. The appropriate and usual methods of achieving them also, on the whole, are well established. In such cases, somewhat general standards of public convenience and necessity and principles of prudent, frugal government administration, necessarily to be implied from the essential projects themselves, may adequately guide the expenditure of public funds, even where there may be involved arrangements with private persons or entities operating for profit. See e.g. Massachusetts Bay Transp. Authy. v. Boston Safe Deposit & Trust Co. 348 Mass. 538, 542-553. See also Boston v. Merchants Natl. Bank, 338 Mass. 245, 249-252.

Enterprises like the stadium complex and the arena necessarily contemplate a substantial use of the facilities by nonpublic persons and entities and contracts between such persons and entities and the public agency operating the facilities. Some of these persons and entities will be operating for profit and using the facilities in their operation. If the stadium complex and arena under the proposed legislation can be operated, and if they should in fact be operated, so as in effect to subsidize private organizations operated for profit, then the facilities could not be said to exist for a public purpose, despite the type of legislative declarations, already quoted, made in § 1 of House No. 5486. Compare the situation considered in Gould v. Greylock Reservation Commn. 350 Mass. 410, 425-427, where, because in specific respects statutory authority had been exceeded, it was not necessary to decide whether “the commercial aspects of . . . [that] venture” operated “to deprive the project of any public purpose.” On the other hand, if the legislation itself contains standards and principles governing and guiding the operation of the facilities in a manner which reasonably can be expected adequately (a) to protect all aspects of the public interest and (b) to guard against improper diversion of public funds and privileges for the benefit of private [797] persons and entities, then such enterprises may be found to be for public objectives. We thus must examine House No. 5486 to determine whether it states sufficiently, rather than leaving to be implied, the standards and principles which are to govern the policies of the Authority in operating the facilities.

The standards stated in House No. 5486 are vague and fragmentary. The proposed legislative determinations in § 1 are too indefinite to be the basis of adequate implied standards. For example, House No. 5486 contains no provisions stating the priorities among the several different types of use (civic, educational, athletic, and other) to be permitted as described in § 1 (a) (i) and (ii). No provisions of the bill seem designed to protect the public interest in having the stadium complex and arena used for all the activities mentioned in § 2, without having any one (e.g. professional athletics) fostered to the exclusion of other activities (e.g. civic, philanthropic, and educational meetings, conventions, labor meetings, amateur and school athletics, and the like) which, perhaps, are more usual objects of public expenditure or encouragement.

The definition of “project” § 2 (b) (1), already quoted, merely states that the stadium complex is to be “multi-purpose” and is “to provide facilities” for the listed types of activities. Section 4 (c), also already quoted, imposes no substantial restriction whatsoever upon the type of lease or contract for the use or management of the stadium complex or arena which the Authority may make, except that the Authority is to determine that each such arrangement “is in the public interest” and that any “rent” will enable the Authority to meet its obligations in connection with the leased facilities and except that leases or grants for more than one year shall be subject to the approval of the Governor.

Section 6 permits safeguards for the protection of bondholders in a trust agreement but no such agreement is required. Doubtless, as a practical matter, because of the [798] efforts of bond underwriters and their counsel to protect the bondholders, the public interest to some extent will also be protected. Nevertheless the public interest and the interests of the bondholders may not always coincide.

Under § 7, the Authority is given power to fix its own charges or to reserve the right of supervision of charges and use in the event of any lease or disposition of any of the facilities. No standards, however, other than the adequacy of charges to meet the Authority’s obligations (see § 7, lines 26-34), are stated in § 7 for the exercise by the Authority of the powers so granted. Section 7, lines 21-25, also purports to preclude any governmental administrative review of the Authority’s exercise of these powers.

By § 12, the Authority is subjected to various restraints in the construction of projects, changes of highways, relocation of tracts, and similar matters, and (see lines 117-133) competitive bidding is required with respect to construction contracts.

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Opinions of the Justices to the House of Representatives, 250 N.E.2d 547, 356 Mass. 775, 1969 Mass. LEXIS 929 (Mass. 1969).

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