Site A Landowners and Mahaska County v. South Central Regional Airport Agency, City of Pella, and City of Oskaloosa

CourtSupreme Court of Iowa
DecidedJune 24, 2022
Docket20-1323
StatusPublished

This text of Site A Landowners and Mahaska County v. South Central Regional Airport Agency, City of Pella, and City of Oskaloosa (Site A Landowners and Mahaska County v. South Central Regional Airport Agency, City of Pella, and City of Oskaloosa) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Site A Landowners and Mahaska County v. South Central Regional Airport Agency, City of Pella, and City of Oskaloosa, (iowa 2022).

Opinion

IN THE SUPREME COURT OF IOWA

No. 20–1323

Submitted January 20, 2022—Filed June 24, 2022

SITE A LANDOWNERS,

Appellant,

vs.

SOUTH CENTRAL REGIONAL AIRPORT AGENCY, CITY OF PELLA, and CITY OF OSKALOOSA,

Appellees,

and

MAHASKA COUNTY,

Appellant.

______________________________

CITY OF PELLA and CITY OF OSKALOOSA,

Appellees/Cross-Appellants,

Appellant/Cross-Appellee.

Appeals from the Iowa District Courts for Mahaska and Washington

Counties, Crystal S. Cronk and Shawn Showers, Judges. 2

County appeals from an adverse grant of summary judgment in favor of

two cities regarding the validity of an agreement between the cities and county

to establish a regional airport authority; landowners at the site of the proposed

airport appeal the district court’s determination they lacked standing to

challenge the agreement. REVERSED AND REMANDED.

McDonald, J., delivered the opinion of the court, in which all participating

justices joined. Appel, J., filed a concurrence. Mansfield and McDermott, JJ.,

took no part in the consideration or decision of the case.

Tyler M. Smith (argued) of Smith Law Firm, PLC, Altoona, for appellant

Site A Landowners.

Michael R. Reck (argued), Charles F. Becker, Kelsey J. Knowles, and

Joseph H. Lubben of Belin McCormick, P.C., Des Moines, for appellant/cross-

appellee Mahaska County.

Mark Weinhardt (argued) of the Weinhardt Law Firm, Des Moines, and

Jason C. Palmer and Benjamin R. Erickson (until withdrawal) of Bradshaw,

Fowler, Proctor & Fairgrave, P.C., Des Moines, for appellees/cross-appellants

City of Pella and City of Oskaloosa. 3

Amy Beattie of Brick Gentry P.C., West Des Moines, and David T. Bower

of Nyemaster Goode, P.C., Des Moines, for appellee South Central Regional

Airport Agency. 4

McDONALD, Justice.

Two cities and a county signed an agreement to jointly create an airport

authority that would build and operate a new regional airport. Landowners at

the site of the proposed airport objected to the plan, and a newly-elected slate of

county supervisors opposed to the project sought to extricate the county from

the airport authority. The cities filed suit to enforce the county’s obligations

under the airport authority agreement. The landowners filed a separate suit

against both the cities and the county to have the airport authority declared

illegal and prevent their land from being acquired for the airport by eminent

domain. The district court granted summary judgment in favor of the cities and

against the county and landowners. This consolidated appeal follows.

I.

The complicated procedural history of this case begins a decade ago, but

the material facts are not in dispute. In 2012, the cities of Oskaloosa and Pella

(Cities) along with Mahaska County (County) entered into an agreement to create

the South Central Regional Airport Agency (SCRAA). Oskaloosa is located in

Mahaska County, while Pella is located in neighboring Marion County. Both

cities currently operate their own municipal airports that have become

inadequate for their communities’ needs, so a new regional airport to be built

and operated by the SCRAA and located in rural Mahaska County, midway

between the Cities, was deemed the preferred solution.

The SCRAA was established pursuant to a joint powers agreement

authorized by Iowa Code chapter 28E. That agreement is referred to throughout 5

this opinion as the “28E Agreement.” Iowa Code chapter 28E allows state

agencies (including local units of government) “to provide joint services and

facilities with other agencies and to cooperate in other ways of mutual

advantage.” Iowa Code § 28E.1 (2017). The stated purpose of the 28E Agreement

is to provide for the “joint acquisition, construction, equipping, use and

operation” of the new regional airport. The SCRAA is governed by a six-member

board of directors. Three members are appointed by Pella, two members are

appointed by Oskaloosa, and one member is appointed by Mahaska County.

Under the 28E Agreement, any costs to construct the airport that are not

otherwise funded by the federal government are to be split evenly between the

Cities. The County is not responsible for financing construction of the airport.

The Cities explicitly assert that the County’s participation in the SCRAA is

necessary for the success of the enterprise. This is because, according to the

Cities, they lack the governmental powers necessary to build the airport on their

own. The Cities state that to successfully build the airport, they must rely on the

County’s “regulatory and legislative authority over . . . zoning, road relocations,

and issuing building permits,” as well as the County’s power of eminent domain

over land in unincorporated Mahaska County where the airport is to be located.

To that end, Article X, section 1 of the 28E Agreement allows the SCRAA to either

“bring an action in eminent domain in its own name” or to “request a Party to

bring such action, which the Party shall then do.” Article XII, section 1 of the

28E Agreement requires each party to “cooperate in good faith” with the SCRAA

board and the other parties and requires each party to “use its best efforts to 6

carry out the provisions” of the 28E Agreement. The same provision says the

Cities and the County must work “in good faith to resolve road relocations which

may be required.”

In another key provision, Article XI of the 28E Agreement says that a party

may not amend or terminate the Agreement without “the approval of the

governing Boards of each Party.” This means a party may not unilaterally

withdraw from the SCRAA. Absent the consent of the Cities, the County must

remain a party “for the life of the Airport Facility.” Michael Schrock, Jr.,

Oskaloosa’s city manager, testified that the parties’ goal in drafting this provision

was “to create a binding and long-lasting agreement that could withstand

political changes within the communities.” When asked, Schrock agreed that the

parties’ intent was to create an entity to govern the airport that would have

“certainty and some binding nature for future governmental bodies.” The Federal

Aviation Administration (FAA) apparently required such certainty as to the

long-term cohesiveness and viability of the SCRAA before it would consider

funding the project. An FAA representative wrote to Schrock in 2013 that it was

“not prudent” for the agency to fund an airport project unless it was “assured

that the sponsor has the means and ability to see a project to completion.”

Despite initially agreeing to the terms of the 28E Agreement, the County’s

participation in the SCRAA proved controversial among members of the public.

In 2013, the County’s board of supervisors passed a resolution that sought to

strike the portion of Article X, section 1 of 28E Agreement that permits the

SCRAA to either “bring an action in eminent domain in its own name or . . . 7

request a Party to bring such action, which the Party shall then do.” The

proposed amendment would still have allowed the SCRAA to acquire property by

means other than eminent domain. After reviewing the proposed amendment, an

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Site A Landowners and Mahaska County v. South Central Regional Airport Agency, City of Pella, and City of Oskaloosa, Counsel Stack Legal Research, https://law.counselstack.com/opinion/site-a-landowners-and-mahaska-county-v-south-central-regional-airport-iowa-2022.