Saratoga Development Corp. v. United States

21 F.3d 445, 305 U.S. App. D.C. 351, 1994 WL 126563
CourtCourt of Appeals for the D.C. Circuit
DecidedApril 15, 1994
DocketNos. 92-5019, 92-5020 and 92-5026
StatusPublished
Cited by20 cases

This text of 21 F.3d 445 (Saratoga Development Corp. v. United States) 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
Saratoga Development Corp. v. United States, 21 F.3d 445, 305 U.S. App. D.C. 351, 1994 WL 126563 (D.C. Cir. 1994).

Opinions

Opinion for the Court filed by Circuit Judge WILLIAMS.

Dissenting opinion filed by Circuit Judge WALD.

STEPHEN F. WILLIAMS, Circuit Judge:

The Federal Triangle Development Project will produce a federal office complex second in size only to the Pentagon. The appellant, Saratoga Development Corporation, sought to be selected as the project’s developer, but the government picked the Delta Partnership instead. Saratoga sued in district court, complaining that the Pennsylvania Avenue Development Corporation (“PADC”) — which was in charge of selecting the developer— had failed to follow generally applicable federal procurement law. The PADC claimed that it had not violated those rules, but, more pertinently, it argued that Congress had in fact specified a different set of‘procurement rules for the project — namely, those the PADC had historically used in competitions for private development under PADC supervision. The district court accepted Sarato-ga’s theory as to the applicable rules and found them violated, but held that the violations inflicted no harm on Saratoga. It thus granted summary judgment for the government. Saratoga Dev’t Corp. v. United States, 777 F.Supp. 29 (D.D.C.1991). We agree with the PADC as to the applicable rules, and find no violation.

I. Background

A The Pennsylvania Avenue Development Corporation Act of 1972

Pennsylvania Avenue connects the Capitol and the White House in Washington, D.C. In 1972, finding that the area adjacent to this stretch of the avenue was “blighted” and was not being used “in a manner suitable to its ceremonial, physical, and historic relationship to the legislative and executive branches of the Federal Government”, see 40 U.S.C. § 871, Congress created the PADC as a wholly owned government corporation. See id. § 872. Congress directed the corporation to devise an overall development plan for the area, id. § 874, and gave it two different sorts of authority to implement this plan. Not only could the PADC carry out publicly funded construction and rehabilitation projects, see, e.g., id. § 875(16), but it could also regulate private development of the PADC area. See, e.g., id. § 875(8). Indeed, all private development in the PADC area had to be approved by the corporation. Id. § 876(b). Thus, the PADC acts both as a developer in its own right and as a sort of specialized zoning commission.

Acting in. its first capacity, the PADC has built new parks, widened and repaved the sidewalks along Pennsylvania Avenue, reconstructed the street itself, and installed amenities such as street furniture and trees. As of 1988, the PADC had spent approximately $100 million in public funds for such projects. Joint Appendix (“J.A.”) 425.

But this public spending was intended largely as seed money, designed “to create an entirely new setting for private development”. Indeed, from 1977 (when Congress gave the PADC the go-ahead) until the project at issue in this case was launched, the great bulk of the money flowing into the [450]*450PADC area was private rather than public. See id. (reporting that as of 1988 the PADC’s $100 million investment had “attracted $1.4 billion in new private .investment throughout the development area”). The principal goal of the PADC’s actions as a developer in its own right, then, was to attract private development to be guided by the PADC in its capacity as a zoning commission.

Acting in this latter capacity, the PADC has superintended two different sorts of private development: private development initiated by the developer, and private development initiated by the PADC itself through a “development competition”. The PADC has set forth procedures for its role in these two types of private development in a document called Development Policies and Procedures, originally adopted in 1980 and amended in 1982 and 1984. See Administrative Record (“A.R.”) tab 20. The sections of this document covering the two types are captioned “Policy and Procedures Regarding Development of Privately Owned Sites” and “Policy and Procedures Regarding Development Competitions”.

For the first sort of private development, the PADC’s zoning role is relatively conventional. In essence, people who own land in the area and who want to develop it must submit detañed proposals to the PADC for approval; if they receive that approval they can budd their projects without going through a development competition. (The PADC sometimes helps them assemble the parcels necessary to complete their projects, though they must bear all the costs.)

The second sort of private development superintended by the PADC is initiated by the corporation itself. The PADC acquires whatever parcels are necessary in addition to the ones it already owns. It then holds a “development competition” to decide who wifi develop them. Assuming both parties can hammer out the detaüs, it sells or leases the parcels to the winner, who then proceeds with the project. Though initiated by the PADC, private development conducted under this procedure is privately financed and produces property that is privately owned.

B. The Federal Triangle Development Act of 1987

By August 1987, the PADC had conducted four “development competitions” for multimillion dollar projects. In 1978 it selected the developer for “National Place”, a complex that includes a shopping mall, a hotel, and the National Theater. That same year, the PADC also selected the developer who would refurbish the Willard Hotel. In 1984 came the development competition for Market Square, which combines residential and retad space. Finally, in 1987 the PADC selected the developer for an apartment complex called Lansburgh’s.

Congress apparently was quite pleased with this track record. Though federal procurement law generally provides that only the General Services Administration (“GSA”) can construct public buddings, the Federal Triangle Development Act of 1987 bypassed the normal mechanisms and entrusted the Federal Triangle Development Project to the PADC, subject to various consultation requirements. See 40 U.S.C. §§ 1101-09. The statute transferred the title for the development site from the GSA to the PADC, id. § 1102, and directed the PADC to come up with logistical plans and design criteria for the federal budding complex that Congress envisioned, id. § 1103. Once these plans and criteria cleared a legislative-veto procedure, cf. Immigration & Naturalization Serv. v. Chadha, 462 U.S. 919, 103 S.Ct. 2764, 77 L.Ed.2d 317 (1983), the statute instructed the PADC to select the site’s developer through a competition “conducted in accordance with the existing policies and procedures of the Corporation for a development competition.” 40 U.S.C. § 1104(a)(3).

Although the ultimate cost of the Triangle Project would be borne by taxpayers, Congress arranged not to pay development costs up front.

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Bluebook (online)
21 F.3d 445, 305 U.S. App. D.C. 351, 1994 WL 126563, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saratoga-development-corp-v-united-states-cadc-1994.