PVI Associates v. Redevelopment Authority (In Re PVI Associates)

181 B.R. 210, 1995 Bankr. LEXIS 554, 1995 WL 251447
CourtUnited States Bankruptcy Court, E.D. Pennsylvania
DecidedApril 28, 1995
Docket15-10916
StatusPublished
Cited by5 cases

This text of 181 B.R. 210 (PVI Associates v. Redevelopment Authority (In Re PVI Associates)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PVI Associates v. Redevelopment Authority (In Re PVI Associates), 181 B.R. 210, 1995 Bankr. LEXIS 554, 1995 WL 251447 (Pa. 1995).

Opinion

OPINION

STEPHEN RASLAVICH, Bankruptcy Judge.

Introduction.

The above debtor, PVI Associates, (“PVI”) a Pennsylvania General Partnership, has filed an adversary action against the numerous above named defendants alleging violations of its constitutional and civil rights. PVI seeks injunctive and declaratory relief with respect to the alleged violations, together with compensatory damages, punitive damages, costs and attorneys fees. The respective defendants have filed three separate Motions to Dismiss the adversary action pursuant to Federal Rule of Civil Procedure 12(b)(6). These Motions have been briefed by all parties and are ripe for adjudication. For the reasons discussed herein, the Motions will be granted in part, and denied in part.

Background.

PVI is the owner of certain improved and unimproved parcels of real property located in the Borough of Conshohocken. The improved properties at issue herein are more specifically known as “One First Avenue,” “2 Elm Street,” and “10 Oak Street.” All of the land owned by PVI lies within an area (the “Redevelopment Area”) which has been identified as “blighted” in an Urban Redevelopment Plan (the “Redevelopment Plan”) prepared by the Planning Commission of the Borough of Conshohocken (the “Planning Commission”), and subsequently adopted, along with a plan of implementation (the “Redevelopment Proposal”) by Defendants, the Borough of Conshohocken (the “Borough”) 1 , the Redevelopment Authority of the County of Montgomery (the “Redevelopment Authority”), and the Commissioners of the County of Montgomery (the “County Commissioners”). The Redevelopment Plan, generally speaking, is a Plan designed to facilitate the reconstruction and rehabilitation of blighted land in the Redevelopment Area.

PVT’s grievances relate to both the inclusion of certain of its unimproved property within the Redevelopment Area, as well as the exclusion of certain other improved realty (10 Oak Street) from the Redevelopment Area. PVI complains, moreover, that the Redevelopment Plan, as amended, is discriminatory in that it provides more favorable treatment for a particular land owner (Donald W. Pulver or a Pulver affiliated entity) which is not generally made available under the Redevelopment Plan to PVI or other owners of property within the Redevelopment Area. In particular, PVI maintains that actions and/or omissions of the Borough, *213 the County Commissioners, and the Redevelopment Authority in connection with adoption and subsequent modification of the Redevelopment Plan, have been arbitrary, capricious and malicious. In its complaint, PVI asserts 6 counts arising from its grievances, as follows:

Count I — Violation of Equal Protection Clause of the 14th Amendment to the United States Constitution.
Count II — Violation of PVTs Civil Rights under the Civil Rights Act, 42 U.S.C. § 1983.
Count III — -Violation of the Takings Clause of the 5th Amendment to the United States Constitution as applied to the States through the 14th Amendment to the United States Constitution.
Count IV — Unlawful taking of property in violation of Article I § 10 of the Constitution of the Commonwealth of Pennsylvania.
Count V — Breach of Contract.
Count VI — Request for Declaratory Judgment.

PVI seeks a broad spectrum of affirmative equitable relief ranging from modification of the Redevelopment Plan to an Order declaring the Redevelopment Plan void. As noted, PVI also seeks compensatory and exemplary damage awards.

Certain of the issues raised by the Defendants in their respective dismissal Motions are common to more than one of them and where appropriate these will be considered jointly.

At the outset the Court notes that there is no disagreement between the parties as to the law applicable to the Court’s consideration of the instant dismissal motions, as indeed there should not be given the well established body of law on this point. The Court must accept as true all well pleaded allegations contained in the Complaint, and must construe them in a light most favorable to the Plaintiff. The Complaint should be dismissed only where it appears beyond a doubt that the Plaintiff can prove no set of facts in support of a claim which would entitle it to relief. Labov v. Lalley, 809 F.2d 220 (3d Cir.1987), citing Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99,101-02, 2 L.Ed.2d 80 (1957). In this respect, too, the Court is to draw all reasonable inferences from the conceded factual allegations, and construe the same in favor of the non-moving party. Greenwood v. Singel, 823 F.Supp. 1207, 1210 (E.D.Pa.1993). Conversely, however, the Court need not accept as true any conclu-sionary allegations of law, nor make any unwarranted inferences of fact. Flanagan v. Shively, 783 F.Supp. 922, 927 (M.D.Pa.1992).

A. THE PLAN AS A PARTICIPATORY PROCESS/THE STATUTORY SCHEME

At the outset, each Defendant group argues that a claim cannot be stated as to it because its role in the adoption of the Plan was tangential compared to the more central roles of others. In this respect, the parties all agree that under the enabling statute (the Pennsylvania Urban Redevelopment Law, 35 P.S. 1701, et seq.) the local municipal planning commission is the entity which is initially empowered to identify blighted or redevelopment areas, and to then create for such areas a redevelopment plan. Thereafter, the local redevelopment authority is charged with preparation of a proposal for redevelopment of all or a portion of the lands within a redevelopment area. The local redevelopment authority submits its proposal back to the local planning commission for a recommendation, and thereafter conveys the proposal to the “governing body,” in this case the County Commissioners. The County Commissioners are charged to conduct a public hearing on the Authority’s proposal. The County Commissioners may thereafter approve the proposal, but they are prohibited from doing so if the local municipality (here, the Borough) has objected. If approved, the redevelopment proposal is returned to the local redevelopment authority for implementation.

In view of the foregoing, each defendant group maintains that it is the wrong entity to be sued. Specifically, all stress the fact that the Planning Commission is the originator of a Redevelopment Plan. While this is of course true, it is likewise readily apparent, indeed it is conceded by the Defendants, that *214 the entire process is a collaborative one in which each defendant group is expected to and does fully participate.

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Bluebook (online)
181 B.R. 210, 1995 Bankr. LEXIS 554, 1995 WL 251447, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pvi-associates-v-redevelopment-authority-in-re-pvi-associates-paeb-1995.