People ex rel. Vuagniaux v. City of Edwardsville

Procedural entryThis page is a short order in People ex rel. Vuagniaux v. City of Edwardsville. Read the opinion of the Court — 284 Ill. App. 3d 407
Appellate Court of Illinois·Decided October 16, 1996·No. 5-95-0655·Published

Opinion

                              NO. 5-95-0655

                                 IN THE

                       APPELLATE COURT OF ILLINOIS

                             FIFTH DISTRICT

_________________________________________________________________

THE PEOPLE ex rel. EARL L. VUAGNIAUX  )  Appeal from the

and ALICE G. VUAGNIAUX,               )  Circuit Court of

                                     )  Madison County.

    Plaintiffs-Appellants,           )

                                     )

v.                                    )  No. 94-MR-325

CITY OF EDWARDSVILLE, A Municipal     )

Corporation of the State of Illinois, )  Honorable

                                     )  David Herndon,

    Defendant-Appellee.              )  Judge, presiding.

_________________________________________________________________

    JUSTICE MAAG delivered the opinion of the court:

    The plaintiffs, the People of the State of Illinois ex rel.

Earl L. Vuagniaux and Alice G. Vuagniaux, appeal the trial court's

grant of summary judgment in favor of defendant, the City of

Edwardsville (City).

    The relevant facts are as follows.  In 1968, the City

purchased a parking lot located at Second and St. Louis Streets.

This parking lot was used for public parking.  In December of 1987,

the City's planning department prepared a tax-increment-financing

(TIF) redevelopment plan.  This plan was revised on January 20,

1988.  The City then adopted ordinance No. 4162-3-88 approving the

central-area tax-increment redevelopment plan and redevelopment

project on March 15, 1988.  It is undisputed that the subject

parking lot is located within the physical boundaries of the TIF

district and is within the redevelopment project area.  In May of

1988, ordinance No. 4177-5-88 was passed, authorizing the City's

issuance of central-area redevelopment-project-area general

obligation bonds in the principal amount of $1,400,000 for the

purpose of funding the tax-increment redevelopment plan and project

approved by City ordinance No. 4162-3-88 and providing for a tax

levy for the payment of said bonds.  In July 1988, the redevelop-

ment plan was amended.  On July 28, 1988, Garrett A. Balke, Inc.

(Korte-Balke), sent a letter to Nina Baird, the City's clerk,

stating its development concept.  Within its development concept,

Korte-Balke stated that it intended to relocate Earl Vuagniaux "to

a new building of approximately 10,000 square feet in the City

Parking Lot at Second and St. Louis Streets."  The letter also

requested the City to "[v]acate Second Street between St. Louis and

Vandalia [and] [c]onvey to [Korte-Balke] fee simple title to Lot 55

(the City parking lot) for $1.00 and other considerations."  The

City then passed ordinance No. 4197-8-88 on August 16, 1988,

authorizing the transfer of certain real property pursuant to the

Tax Increment Allocation Redevelopment Act (Ill. Rev. Stat. 1987,

ch. 24, par. 11-74.4-1 et seq. (now see 65 ILCS 5/11-74.4-1 et seq.

(West 1994))).  This ordinance stated as follows:  

         "Section II:  Prior to the execution and delivery of

    title instruments, the City, District and the developers

    shall execute an agreement setting forth the terms upon

    which the City and the Tax Increment Financing District

    shall transfer the real estate to the developers and the

    developer's agreement for development and purchase of the

    parcels.  Said terms shall include, but not be limited

    to:  

         A.  Purchase price:  One Dollar ($1.00) per parcel.

         ***  

         C.  Developers shall, upon the Second and St. Louis

    Street parking lot site, construct at least 10,000 square

    feet of office, retail or compatible general commercial

    space within two years of said parcel being transferred

    to developer."  

The City then solicited and received proposals for the parking lot

in 1989.  One of those proposals was submitted by the Vuagniauxes.

    In August of 1989, a report on the TIF district was prepared

by the City's TIF committee.  This report discussed the fact that

there had been considerable debate over parking in the downtown

area and the fact that the new county administration building was

going to worsen the problem.  The report stated, inter alia, as

follows:  

    "L.  Conversion of Free Parking

         In order to enhance district revenue, the City

    should consider temporarily transferring title to the

    Second and St. Louis Street parking lot to the district.

    The lot could then be upgraded and converted into a

    leased parking lot.  I believe that the market downtown

    would support $25-50 per month fees for each spot."

    On October 12, 1989, Terry Smith, Edwardsville's City Planner,

prepared a letter to the City's finance committee regarding the

"TIF Update" and stated as follows:  

    "The district should consider the disposal of the parking

    lot at St. Louis and Second Street.  At the present time

    no official action has been taken ***.  I would like to

    recommend that serious consideration be given to the

    development of this city owned lot.  I am making this

    recommendation in light of the recent notification of the

    cancellation of the Michael's Chevrolet redevelopment

    project.  I believe that the development of this lot

    would greatly enhance the overall financial stability of

    the TIF district.  I believe that the potential financial

    gains through the development of this lot far exceeds

    [sic] the effects of the loss of 24 public parking

    spaces.  The Council should consider the possibility of

    making a counteroffer to the offer made by the Vaugniaux

    [sic]/Winfield Partnership.  It would  be interesting to

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