Seva Resorts, Inc. v. Hodel

675 F. Supp. 1542, 1987 U.S. Dist. LEXIS 12244, 1987 WL 33199
CourtDistrict Court, D. Arizona
DecidedDecember 8, 1987
DocketCiv 87-1099 PHX-CAM
StatusPublished
Cited by3 cases

This text of 675 F. Supp. 1542 (Seva Resorts, Inc. v. Hodel) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seva Resorts, Inc. v. Hodel, 675 F. Supp. 1542, 1987 U.S. Dist. LEXIS 12244, 1987 WL 33199 (D. Ariz. 1987).

Opinion

FINDINGS OF FACT, CONCLUSIONS OF LAW

MUECKE, District Judge.

This action originated when the plaintiff filed a motion for a preliminary injunction and a complaint. Seva seeks an order com *1544 pelling the Secretary to sign a concessions and a subconcessions contract. Pursuant to Rule 65(a)(2) of the Federal Rules of Civil Procedure, this Court consolidated the motion for a preliminary injunction into a trial on the merits. The request for an injunction raises both questions of law and fact, although most of the facts are undisputed. The facts have been presented through a joint statement of facts filed by the plaintiffs and the defendant, exhibits to the various papers filed, and depositions.

FINDINGS OF FACT

In 1970, the Secretary, through the National Park Service, 1 the Bureau of Indian Affairs, the Bureau of Reclamation, and the Navajo Nation executed a Memorandum of Agreement wherein the parties recognized the desire and intention of the Navajos to develop land contiguous to Lake Powell, located in the Glen Canyon National Recreation Area. In March 1986, the Bureau of Indian Affairs, the Navajo Nation, and the National Park Service issued a Final Development Concept Plan for the development of Antelope Point. The Antelope Point project is an effort to develop a marina and recreational resort along the southern shoreline of Lake Powell on 950 acres of land. Approximately 713 acres of this land are within the boundaries of the Navajo Indian Reservation and the remaining portion is within the boundaries of the Glen Canyon National Recreation Area.

After the execution of the Development Concept Plan, the National Park Service and the Navajo Nation intended for a sub-concessioner to actually develop the project. The National Park Service recognized that the Navajos could not provide the financial resources or managerial expertise necessary for the successful development of Antelope Point. The Navajo Nation therefore requested private developers to submit proposals. The party submitting the proposal accepted by the Navajo Nation would become the subconcessioner and the Navajo Nation would be the con-cessioner.

Seva was one of six parties that submitted proposals. A selection team undertook an evaluation and review of the six applicants. In July 1986, the Navajos announced that Seva was the preferred bidder because their proposal provided the maximum financial benefit to the Navajos, the strongest financial status, the preferred ownership and rental rate, and the most desirable development schedule. Although Ronald E. Everhart of the National Park Service was an observer during the selection process, the Park Service did not conduct an investigation of Seva independent of that conducted by the selection team. The National Park Service, however, was satisfied that Seva had submitted the best proposal.

From August through September 1986, Seva and the Navajo Nation negotiated a Master Lease and Ownership Agreement designed to implement the Development Concept Plan. The lease and ownership agreement were both executed by Seva and the Navajo Nation on October 1, 1986. The Master Lease and the Ownership Agreement were approved through official resolutions of the appropriate committees of the Navajo Tribal Council. In January of 1987, the Bureau of Indian Affairs approved the Master Lease. The Park Service did not take part in the negotiation or approval of the lease.

■ The Master Lease provides that Seva is entitled to lease certain portions of land on the Navajo Nation for 55 years, to begin upon approval by the Secretary through the Bureau of Indian Affairs. Seva was required to pay rent upon the beginning of the lease. Seva made timely payments from January through September 1987. Because of the disputes that caused the instant litigation, the Navajo Nation tendered to Seva all of the lease payments made through September, 1987. Seva refused to accept repayment of its rent.

*1545 During the fall of 1986, the Navajo Nation and the National Park Service negotiated a concessions contract for the project. During the course of negotiations, Seva provided input into the negotiations. In October, the National Park Service submitted the concessions contract to the Navajo Nation. In November, the Navajos signed the contract and returned it to the Park Service for the mandatory 60-day review by Congress. 2 On April 25, 1987, the 60-day review period ended and no changes were proposed or made to the concessions contract.

In January of 1987, the Navajo Nation also submitted to the Park Service the sub-concessions contract between Seva and the Navajo Nation. This contract was negotiated only by representatives of Seva and the Tribe. As required by law, the National Park Service reviewed the subconces-sions contract, found its terms acceptable and submitted it to Congress for review. After the expiration of the 60-day period, Congress made no changes to the subcon-cessions contract.

After the expiration of the period provided for congressional review, the general practice of the Park Service is to sign a concessions contract. In fact, the National Park Service has a manual with a hypothetical timetable in which a concessions contract is signed immediately after the expiration of the 60-day review period. In the instant case, however, the Park Service did not follow this hypothetical timetable.

On April 23, 1987, A1 Henderson met with Ronald Everhart of the National Park Service. A1 Henderson is the director of the Department of Economic Development for the Navajo Nation and principal representative of Peter MacDonald, Chairman of the Navajo Tribal Council. At this meeting, A1 Henderson stated that the Tribe was concerned about its relationship with Seva and that the Tribe wanted to examine its relationship with Seva. Henderson also stated that the Tribe may want the Park Service to hold off execution of the concessions contract. On May 8, 1987, Peter MacDonald sent a letter to the National Park Service formally requesting that the Park Service not sign the concessions and subconcessions contract for the Antelope Point project and that the Park Service sign a concessions and subconcessions contract for the Paiute Farms Marina. The contracts relating to the Antelope Point project were not signed, but the Park Service signed the contracts relating to the Paiute Farms Marina.

On June 11, 1987, The National Park Service sent a letter to Peter MacDonald requesting that by September 1, 1987 the Tribe inform the Park Service of their “intention regarding the contract and your ability to carry it out through a subconces-sioner or otherwise.” On September 1, the Park Service would then decide “whether to execute the existing contract, to withdraw it from further consideration, or take other appropriate action.” On June 11, 1987, the Park Service also wrote a letter to Seva informing them that it was honoring Peter MacDonald’s request to not execute the concessions contract. The Park Service wrote the letter to Seva in response to a letter requesting that the Park Service execute the contracts.

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675 F. Supp. 1542, 1987 U.S. Dist. LEXIS 12244, 1987 WL 33199, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seva-resorts-inc-v-hodel-azd-1987.