OXFORD ASSET PARTN. LLC v. City of Oxford

970 So. 2d 116, 2007 WL 3025822
CourtMississippi Supreme Court
DecidedOctober 18, 2007
Docket2006-CA-01712-SCT
StatusPublished
Cited by5 cases

This text of 970 So. 2d 116 (OXFORD ASSET PARTN. LLC v. City of Oxford) 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
OXFORD ASSET PARTN. LLC v. City of Oxford, 970 So. 2d 116, 2007 WL 3025822 (Mich. 2007).

Opinion

970 So.2d 116 (2007)

OXFORD ASSET PARTNERS, LLC
v.
CITY OF OXFORD, Mississippi and State of Mississippi.

No. 2006-CA-01712-SCT.

Supreme Court of Mississippi.

October 18, 2007.

*118 Danny A. Drake, David W. Mockbee, Jackson, attorneys for appellant.

Paul B. Watkins, Jr., Pope S. Mallette, Oxford, Office of the Attorney General by Mary Jo Woods, attorneys for appellees.

Before WALLER, P.J., EASLEY and GRAVES, JJ.

WALLER, Presiding Justice, for the Court.

¶ 1. This appeal is taken from the Lafayette County Circuit Court's dismissal of Oxford Asset Partners' request for a declaratory judgment that House Bill 1671 is unconstitutional and from the grant of *119 summary judgment in favor of the City of Oxford. House Bill 1671 is a private law which enables the City of Oxford to obtain municipal parking facilities in exchange for the conveyance of air and development rights. H.B. 1671, Reg. Sess. (Miss.2006). Because we find the last sentences of Sections 3 and 4 of House Bill 1671 unconstitutional, we affirm in part and reverse and render in part the circuit court's grant of summary judgment to the City of Oxford.

FACTS

¶ 2. On April 5, 2005, the Mayor and Board of Aldermen of the City of Oxford, Mississippi, ("the City") resolved to solicit proposals to increase the availability of parking in downtown Oxford. The City published requests for proposals on April 8, 2005, and again on April 15, 2005. After receiving three proposals, the City formed a committee to consider two of the three proposals, both of which contemplated the City conveying land to a private developer who would build a parking garage and a hotel. The developer would then convey the parking garage back to the City.

¶ 3. On August 18, 2005, following the withdrawal of one proposal, the City authorized the negotiation of a non-binding letter of intent with the remaining developer, Craigside Leasing Corporation of Greenwood, Mississippi ("Craigside"). The Craigside project consisted of a six-story structure on the parking lot behind City Hall, the first three floors of which would consist of a municipal parking garage, while the top three floors would be a hotel. In exchange for the air and development rights to operate a hotel above the parking garage, Craigside would construct and then re-convey the parking garage to the City. On October 10, 2005, the City executed a non-binding Preliminary Development Agreement with Craigside.

¶ 4. To determine whether the proposal could be executed under the general laws of Mississippi, the City requested an opinion from the Attorney General's office regarding the legality of the transaction. In an opinion dated January 26, 2006, the Attorney General maintained that the construction of such a facility under the proposed agreement would violate existing general laws. 2006 WL 753077 (Miss. A.G.).

¶ 5. In an attempt to address the Attorney General's opinion, Noel Akins, representative of House District 12, and Warner F. McBride, representative of House District 10, introduced House Bill 1671 during the 2006 Regular Session of the Mississippi Legislature. H.B. 1671, Reg. Sess. (Miss.2006).[1] The bill authorized the City to negotiate with any public or private actor for the construction or expansion of municipal parking facilities in exchange for air and development rights. The bill was signed into law on April 5, 2006.

¶ 6. House Bill 1671, Section 2, expressly exempts the Mayor and the Board of Aldermen of the City of Oxford from the provisions of Mississippi Code Sections 21-37-23 and 21-37-25, which dictate the process to acquire and operate a municipal parking facility. Miss.Code Ann. §§ 21-37-23, 21-37-25 (Rev.2001). House Bill 1671, Section 3, further exempts City officials from the restrictions in Section 21-17-1 governing the disposition of municipal property. Miss.Code Ann. § 21-17-1 (Rev.2001). Finally, House Bill 1671, Section 4, exempts City officials from Section 31-7-13, which requires advertisements *120 for bids on government projects. Miss. Code Ann. § 31-7-13 (Rev.2005).

¶ 7. Oxford Asset Partners, LLC ("Oxford Asset") filed its complaint against the City on May 15, 2006, arguing that H.B. 1671 violates Article IV, Sections 87 and 90 of the Mississippi Constitution. Oxford Asset notified the Attorney General of its constitutional challenge, as required by law, and the Attorney General joined the City's defense of H.B. 1671. The trial judge heard oral arguments on August 31, 2006. The trial judge dismissed Oxford Asset's request for declaratory judgment and granted summary judgment to the City on September 26, 2006.

STANDARD OF REVIEW

¶ 8. This Court reviews a circuit court's grant of summary judgment de novo. Myers v. City of McComb, 943 So.2d 1, 4 (Miss.2006). In considering the constitutionality of a legislative enactment, this Court recognizes that duly enacted statutes and laws have a strong presumption of constitutionality, and that the party challenging the constitutionality of a law must prove beyond a reasonable doubt that the law is in "palpable conflict with some plain provision of the constitution." In the Interest of T.L.C., 566 So.2d 691, 696 (Miss.1990). This Court will invalidate a statute on constitutional grounds only "where it appears beyond all reasonable doubt that such statute violates the constitution." Richmond v. City of Corinth, 816 So.2d 373, 375 (Miss.2002) (quoting Wells v. Panola County Bd. of Educ., 645 So.2d 883, 888 (Miss.1994)).

DISCUSSION

¶ 9. On appeal, Oxford Asset asserts that H.B. 1671 violates two provisions of the Mississippi Constitution. First, Oxford Asset argues that H.B. 1671 violates Article IV, Section 87 of the Mississippi Constitution by suspending multiple general laws for the benefit of a private entity. Second, Oxford Asset argues that H.B. 1671 violates Article IV, Section 90 of the Mississippi Constitution by vacating public property in the form of air and development rights above a publicly owned parking garage.[2]

I. WHETHER HOUSE BILL 1671 OFFENDS ARTICLE IV, SECTION 87 OF THE MISSISSIPPI CONSTITUTION.

A. The Restrictions Placed Upon Private Laws by Section 87.

¶ 10. Article IV, Section 89 of the Mississippi Constitution sets forth a procedure through which local and private legislation may be passed by the Legislature, and emphasizes that laws enacted pursuant to Section 89 must be given effect by this Court. Miss. Const. art. IV, § 89 (1890). At the same time, Article IV, Section 87 of the Mississippi Constitution limits the Legislature's authority to enact private legislation.[3]

*121 ¶ 11. Oxford Asset argues that H.B. 1671 violates the second clause of Section 87, which prohibits the enactment of special or local laws that suspend any general law for the benefit of individuals or private corporations or associations. Miss. Const. art. IV, § 87. In order for a private law to offend the second clause of Section 87, the private law must: (1) suspend a general law or laws (2) for the benefit of an individual or private corporation or association. Id.

B. Whether House Bill 1671 Suspends any General Laws.

¶ 12.

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970 So. 2d 116, 2007 WL 3025822, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oxford-asset-partn-llc-v-city-of-oxford-miss-2007.