Realty Income Trust v. Eckerd

564 F.2d 447, 183 U.S. App. D.C. 426, 10 ERC 1342, 7 Envtl. L. Rep. (Envtl. Law Inst.) 20541, 10 ERC (BNA) 1342, 1977 U.S. App. LEXIS 12668
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 29, 1977
DocketNos. 76-1062 and 76-1063
StatusPublished
Cited by100 cases

This text of 564 F.2d 447 (Realty Income Trust v. Eckerd) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Realty Income Trust v. Eckerd, 564 F.2d 447, 183 U.S. App. D.C. 426, 10 ERC 1342, 7 Envtl. L. Rep. (Envtl. Law Inst.) 20541, 10 ERC (BNA) 1342, 1977 U.S. App. LEXIS 12668 (D.C. Cir. 1977).

Opinion

Opinion for the Court filed by WILKEY, Circuit Judge.

WILKEY, Circuit Judge:

Realty Income Trust, the appellant, is the owner and operator of two office buildings in downtown Jackson, Mississippi which are rented in significant part to agencies of the federal government. It brought this lawsuit seeking to enjoin the construction of a new federal office building in downtown Jackson into which would be consolidated the various federal agencies in the area, including the agencies located in appellant’s buildings.

Its contended ground for relief was that the appellee, the Administrator of the General Services Administration, was proceeding with construction in violation of the National Environmental Policy Act of 19691 because it had not filed an environmental impact statement at the time it submitted the proposed project for approval by Congressional Committees. Because it found no merit in appellant’s claim, the District Court denied a preliminary injunction and granted appellees’ motion for summary judgment, thus allowing construction to proceed. We disagree and find that an environmental impact statement should have been filed with the proposal to Congress.

However, we do not remand to the District Court for relief because we believe that equitable considerations, particular to the facts of this case, do not presently justify an injunction against the ongoing construction of this building, primarily because the necessary environmental impact statements, adequate except for timeliness, have, in fact, been prepared and issued.

I. LEGAL FRAMEWORK ■

Under the Public Buildings Act of 1959, as amended by the Public Buildings Amendment of 19722, the General Services Administration (GSA) is required to obtain Congressional approval before entering into major leaseholds and purchase-contracts for new federal buildings. The Act directs GSA to submit to the Public Works Committees of the Senate and of the House of Representatives a prospectus describing the [429]*429proposed facility. If both Committees approve the project, GSA is then enabled to proceed with the lease or construction without having to go back to Congress for further authorization or appropriation.

The question presented in this case is whether GSA is required to file an Environmental Impact Statement (EIS) on the proposed project at the time it presents the prospectus to the Congressional Committees.

Section 102 of the National Environmental Policy Act of 1969 (NEPA)3 reads in relevant part as follows:

The Congress authorizes and directs that, to the fullest extent possible . (2) all agencies of the Federal Government shall — (C) include in every recommendation or report on proposals for legislation and other major Federal actions significantly affecting the quality of the human environment, [an environmental impact statement] .

All parties agreeing that the construction of the $25 million office building in Jackson, Mississippi amounts to a major Federal action of environmental significance, the particular NEPA issue here becomes whether the submission of the prospectus is a recommendation or report on a proposal for legislation, requiring a statement, or even if it is not a proposal for legislation, whether the submission is a recommendation or report on a federal action, requiring a statement if sufficiently ripe.

The resolution of these questions involves reference both to the advisory Guidelines issued by the Council on Environmental Quality (CEQ) and to the internal Orders of GSA itself. According to the CEQ, the types of actions covered by NEPA “include but are not limited to . . . (1) Recommendations or favorable reports relating to legislation including requests for appropriations.”4 When an agency acts within the coverage of NEPA, the CEQ Guidelines provide that the EIS, whether draft or final, be available for public and Congressional consideration along with the report or recommendation on the legislative proposal.5 As for the GSA regulations, its relevant Order at the time contained the equivalent, with more specificity:

1. Determination of what is a “major Federal action significantly affecting the quality of the human environment". .
a. Types of major Federal actions requiring environmental impact statements include:
(1) Recommendations or reports relating to legislation with a significant environmental impact, including prospectuses for proposed new Federal buildings under the Public Buildings Act. 6

Having set out the legal backdrop of this appeal, let us now describe the chronology of events in more detail.

[430]*430II. BACKGROUND EVENTS

In May 1974 GSA submitted a prospectus to the Public Works Committees of the Senate and House of Representatives. It proposed the acquisition of 277,000 square feet of space for an office building to be constructed in Jackson, Mississippi by a private developer for subsequent lease by the federal government over a 20-year period. No EIS was filed at that time. The Senate Committee held hearings on 30 July 1974 and despite its own rule requiring receipt of an EIS7 approved the project on 31 July. The House Committee joined in approval on 10 October, both Committees changing the project from a leasehold to a purchase-contract.

On 29 October, less than three weeks after Congressional review, GSA filed a draft EIS with CEQ. The draft statement primarily focussed on the general impact from the building on the Jackson area, particularly the downtown, although no specific site had been selected. According to the draft statement, much of the area in downtown Jackson was subject to periodic flooding from a stream known as Town Creek. The draft EIS noted that the Jackson Redevelopment Authority would be seeking to remedy the problem by relocating the Creek into a tube at a cost of about $8 million. Having previously secured Congressional approval for the project, GSA also proceeded with the formal investigation and ranking of possible sites.

On 27 June 1975, prior to the filing of a final EIS by GSA, the Crosley Building Corporation, the original plaintiff, (hereinafter “Realty Trust”),8 filed its complaint and motion for preliminary injunction in the District Court here. It alleged that it would suffer environmental injury from the construction of the new building due to its impact on vehicular and pedestrian traffic. It also contended that GSA violated NEPA, CEQ Guidelines and its own regulations by failing to file a draft impact statement at the time the prospectus was submitted to the Congressional Committees and sought to enjoin GSA from further action on the project until it complied with NEPA. The complaint stated that the draft EIS would have advised the Committees of certain environmental risks in connection with the project, particularly flooding. As noted, the complaint was accompanied by a motion for preliminary injunction.

In August 1975 GSA filed a final EIS on a site in downtown Jackson that it had selected earlier. The statement described the impact to be expected from the erection of a building on this site, discussed alternatives and contained responses to comments on the draft EIS.

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564 F.2d 447, 183 U.S. App. D.C. 426, 10 ERC 1342, 7 Envtl. L. Rep. (Envtl. Law Inst.) 20541, 10 ERC (BNA) 1342, 1977 U.S. App. LEXIS 12668, Counsel Stack Legal Research, https://law.counselstack.com/opinion/realty-income-trust-v-eckerd-cadc-1977.