Rosemont Bldg. Sup. v. Hwy. Tr. Auth.

258 N.E.2d 569, 45 Ill. 2d 243
CourtIllinois Supreme Court
DecidedMarch 24, 1970
Docket42765
StatusPublished

This text of 258 N.E.2d 569 (Rosemont Bldg. Sup. v. Hwy. Tr. Auth.) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rosemont Bldg. Sup. v. Hwy. Tr. Auth., 258 N.E.2d 569, 45 Ill. 2d 243 (Ill. 1970).

Opinion

45 Ill.2d 243 (1970)
258 N.E.2d 569

ROSEMONT BUILDING SUPPLY, INC., et al., Appellants,
v.
ILLINOIS HIGHWAY TRUST AUTHORITY et al., Appellees.

No. 42765.

Supreme Court of Illinois.

Opinion filed March 24, 1970.
Rehearing denied May 26, 1970.

*244 *245 SAMUEL J. BETAR and JOSEPH A. LAMENDELLA, both of Chicago, (SCHIPPERS, BETAR, LAMENDELLA & O'BRIEN, of counsel,) for appellants.

WILLIAM J. SCOTT, Attorney General, of Springfield, (PERRY L. FULLER, DOUGLAS M. REIMER, and D. KENDALL GRIFFITH, Special Assistant Attorneys General, of counsel,) for appellees.

NORMAN J. BARRY and M.I. MISHKIN, both of Chicago, and GORDON C. ADLER, of Bloomington, (ROTHSCHILD, STEVENS, BARRY & MYERS, and MERKER AND ADLER, of counsel,) for amicus curiae Illinois Agricultural Association.

Judgment reversed.

Mr. JUSTICE CULBERTSON delivered the opinion of the court:

Rosemont Building Supply, Inc., and James Cuzzone, plaintiffs, initiated this taxpayers' action in the circuit court of Du Page County to challenge the constitutionality of the Illinois Highway Trust Authority Act, (Ill. Rev. Stat. 1969, ch. 121, par. 101-1 et seq.,) which went into effect July 10, 1969. Named as defendants were the Illinois Highway Trust Authority, the Governor and various other State officials. A summary judgment finding the act to be constitutional was entered for defendants and plaintiffs have appealed. On leave granted, the Illinois Agricultural Association, which also adopts the theory that the act is invalid, has filed a brief as amicus curiae.

The act in question created the Illinois Highway Trust Authority as a body politic and corporate to function as a governmental corporation for a stated purpose of "constructing, reconstructing, improving, equipping, and furnishing State highways, bridges, viaducts, interchanges and roadside rest areas," any and all of which purposes or undertakings *246 are subsequently referred to in the act as "projects." (Ill. Rev. Stat. 1969, ch. 121, par. 101-4.) And while not entirely clear, the act apparently contemplates that the Authority may take over highway projects already planned or partially completed by the Department of Public Works and Buildings inasmuch as subparagraph (e) of section 4 permits the Authority: "To acquire projects from the Department by purchase or otherwise, and to construct, improve, equip, and furnish projects." By the provisions of section 3 (par. 101-3) the Authority consists of three members appointed by the Governor with the advice and consent of the Senate, one of whom is designated chairman by the Governor. By implication, the salaries of the members are to be paid by the Authority.

To permit the corporate purposes to be accomplished, subparagraph (d) of section 4 empowers the Authority: "(d) To acquire under agreement with the Department of Public Works and Buildings, State highways, bridges, easements or rights of way necessary or desirable for carrying out the purposes of the Authority and (without limitation of the foregoing) to lease as lessor to the Department of Public Works and Buildings any project at any time constructed or made available for public use by the Authority, and any property, real, personal, or mixed, tangible or intangible, or any interest therein, at any time acquired by the Authority. Such leases may be entered into contemporaneously with any financing to be done by the Authority and payments under the terms of such leases shall begin at any time after execution of any such leases. Such leases shall contain the provision that rents under the leases shall be payable solely from appropriations to be made by the General Assembly from the Road Fund and any revenues derived from the operation of the leased premises. In the event of nonpayment of rents reserved in such leases the Authority shall maintain and operate such facilities or projects, or execute leases thereof to others for any suitable *247 purposes." Complementing provisions of section 13 (par. 101-13) authorize the Department, with the approval of the Governor, to contract with the Authority to lease projects being constructed and, upon completion, to enter into leases for the use of a project for a term not to exceed 30 years.

Subparagraph (h) of section 4 gives the Authority power to "fix, alter, charge and collect rates, rentals and other charges" for the use of its facilities or projects "at rates to be determined by agreement or otherwise," for the purpose of providing payment of the expenses of the Authority, the payment of principal and interest on the bonds or other obligations of the Authority, and the costs of construction, improvement, repair, equipping and furnishing its facilities or properties. A concluding sentence of the subparagraph provides: "However, the Authority is not empowered to charge tolls for the privilege of vehicular or other traffic usage of a Project as defined in Section 2 of this Act except in the event of non-payment of rents reserved in lease agreements with the Department."

The Authority is given no power to tax, but to provide the funds necessary to permit its purposes, or projects, to be accomplished is empowered by subparagraph (i) of section 4: "To borrow money, make and issue negotiable notes, bonds and other evidences of indebtedness or obligations (herein called `bonds') of the Authority, not exceeding $2,000,000,000 in the aggregate, and not exceeding a total of $1,000,000,000 in the first 4 years after the effective date of this Act, for the acquisition, construction, reconstruction and improvement of highway projects in such amounts as to defray the ordinary and contingent expenses of the Authority, and in such amounts as necessary for defraying the cost of such projects and to secure the payment of such bonds, or any part thereof, by pledge or deed of trust of all or any of its revenues, rentals and receipts, and to make such agreements with the purchasers or holders of such bonds or with others in connection with any such bonds, whether issued *248 or to be issued, as the Authority shall deem advisable and, in general, to provide for the security of said bonds and the rights of the holders thereof." Ensuing subparagraphs permit the Authority to borrow money or accept grants from any Federal agency (par. 101-4(1)); to pledge or encumber all revenues and receipts of the Authority as security for its obligation (par. 101-4(m)); and it is expressly provided in subparagraph (n) that the obligations and debts of the Authority shall not be deemed to be obligations of the State or any of its political subdivisions.

Section 6 (par. 101-6) has to do with the terms of the bonds the Authority issues, which must mature in a period not exceeding 30 years and may bear interest at a rate not in excess of 7% per annum, while section 7 (par. 101-7) sets forth the rights and remedies of the bondholders. It is the purport of subparagraph (a) of section 6 that the obligation of the Authority on its bonds may be restricted "to all or any of the rentals or receipts of the Authority from all or any projects or properties." (Emphasis added.) Noteworthy in light of the emphasized words are the provisions of subparagraph (j) of section 4 which give the Authority power: "To convey property, without charge, to the State of Illinois if and when all debts, which have been secured by the income from such property, have been paid."

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Bluebook (online)
258 N.E.2d 569, 45 Ill. 2d 243, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rosemont-bldg-sup-v-hwy-tr-auth-ill-1970.