State ex rel. County Court of Brooke County v. Kemp

151 S.E.2d 680, 151 W. Va. 349, 1966 W. Va. LEXIS 229
CourtWest Virginia Supreme Court
DecidedDecember 13, 1966
DocketNo. 12623
StatusPublished
Cited by6 cases

This text of 151 S.E.2d 680 (State ex rel. County Court of Brooke County v. Kemp) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. County Court of Brooke County v. Kemp, 151 S.E.2d 680, 151 W. Va. 349, 1966 W. Va. LEXIS 229 (W. Va. 1966).

Opinion

CaRLAN, PRESIDENT:

In this original proceeding in mandamus the record reveals that the petitioner, the County Court of Brooke County, at a regular meeting on January 20, 1966, entered an order resolving that it would, upon the completion of negotiations, take such action as is necessary for the issuance of Industrial Development Bonds to finance the acquisition of an industrial plant and equipment to be leased to the Wheeling Corrugating Company, a wholly owned subsidiary of Wheeling Steel Corporation. The petitioner alleges that it was advised of the desire of the Wheeling Steel Corporation to construct a spiral culvert plant on land owned by it at Beech Bottom, Brooke County, which would he operated by the Wheeling Corrugating Company. This plant, including the necessary equipment, would be valued in excess of one million dollars and would employ a number of industrial workers. The County •Court of Brooke County was also advised, as demonstrated by an affidavit of William L. Doepken, a Vice .President of Wheeling Steel Corporation and President of Wheeling Corrugating Company, which affidavit is attached to the petition as an exhibit, that Wheeling Steel Corporation was without sufficient capital funds to construct the plant and obtain the necessary equipment; that by reason by its expenditure in excess of $165,000,000.00 on a capital improve[351]*351ment program, which, program caused interruptions in its operating facilities resulting in marked decreases in capital funds and current assets, it was in need of financial assistance to proceed with the establishment of the proposed plant. Mr. Doepken further said that a proposal had been made by the office of the Governor of Ohio to induce the corporation to construct the proposed plant on property owned by it in that state and that the obtaining of financial assistance was crucial to its decision in relation to the location of the plant.

The petitioner, recognizing the economic benefits to be derived by the location of a new industrial plant in Brooke County and the increase in employment that would result, advised Wheeling Steel Corporation that if it would agree to construct and operate the plant in Brooke County it would offer financial assistance through the use of Industrial Development Bonds to the extent of one million dollars.

Upon being advised by the corporation that under those conditions it would locate its plant in Brooke County, the petitioner adopted the resolution of January 20,1966, referred to above. Thereafter, Wheeling-Steel Corporation informed the County Court that arrangements had been made with the Irving Trust Company, a banking corporation of New York City, to purchase all the Industrial Development Bonds, which were to bear interest at 4% per cent. Furthermore, it was agreed that the subject property would be leased to Wheeling Steel Corporation, the rental from which would pay the principal and interest on such bonds.

It was the desire of both the County Court and Wheeling Steel to construct the industrial plant and put it into operation as soon as possible. Therefore, it was agreed by the parties that Wheeling Steel should undertake to provide interim financing on a temporary basis to cover the cost of construction and equipment to enable the plant to become operational while the necessary documents for the issue and pur[352]*352chase of the bonds were being prepared and approved by the parties.

Pursuant to that agreement, and with the knowledge and counsel of the County Court, "Wheeling Steel proceeded with the construction of the plant. On April 30, 1966, the Wheeling Steel Corporation effected a consolidation with its wholly owned subsidiary, "Wheeling Corrugating Company, which was to operate the industrial, facility, and so advised the County Court of Brooke County. Subsequently, on June 2, 1966, the County Court adopted a resolution wherein it resolved to continue its financing arrangement with Wheeling Steel. The plant was completed and commenced operation in July, 1966, but despite diligent efforts to expedite the preparation of the documents necessai’y to consummate the industrial bond issue and sale, such procedure was not completed until early in October, 1966.

On October 22, 1966, the County Court of Brooke County unanimously adopted the resolution which (1) authorized the acquisition of the industrial plant and equipment and the leasing thereof to "Wheeling Steel Corporation; (2) authorized the issuance of one million dollars of Industrial Development Bonds, Series A, to finance the cost of acquisition; (3) prescribed the form of mortgage and deed of trust to secure the bonds; and (4) authorized the execution of said lease, mortgage and deed of trust for the security, rights and remedies of the holders of said bonds. Pursuant to that resolution the petitioner, by its president, executed a lease of the industrial plant and equipment to Wheeling Steel Corporation. Also executed by the president, on behalf of the court, was Bond No. 1 of the Brooke County Industrial Development Bonds, Series A. The lease and bond were presented to Hazel G. Kemp, Clerk of the County Court of Brooke County, respondent herein, for the purpose of having the seal of the County Court affixed thereto and attested. The respondent, being advised by counsel that there may be a question as to the validity of this acquisition [353]*353under the Industrial Development Bond Act, declined to affix the seal of the County Court to the lease and bond.

Upon, the respondent’s continued refusal to affix the County Court’s seal to the lease and bond, the petitioner instituted a mandamus action in this Court seeking a writ commanding the respondent to so act. A rule to show cause why the writ should not be granted was issued on October 31, 1966, and was made returnable November 5, 1966. On the return day the matter was submitted for decision upon the petition, with its exhibits, the demurrer and answer of the respondent, and upon the briefs and oral arguments of counsel for the respective parties.

The constitutionality of Ch. 13, Art. 2C, Code, 1931, as amended, known as the Industrial Development Bond Act, having been determined and upheld in State ex rel. County Court of Marion County v. Demus, 148 W. Va. 398, 135 S. E. 2d 352, and in State ex rel. County Court of Mineral County v. Bane, 148 W. Va. 392, 135 S. E. 2d 349, the only issue to be resolved in this proceeding is whether the proposed acquisition, through the issuance of Industrial Development Bonds, is permissible under the provisions of the foregoing statute. Specifically, the respondent takes the position that Ch. 13, Art. 2C does not authorize a county court to issue bonds for financing the acquisition of an existing industrial facility.

In resolving the narrow issue presented in this case it is essential to consider the circumstances under which the acquisition of the industrial plant is proposed. Also, we must examine the pertinent provisions of Ch. 13, Art. 2C. Section 2 thereof declares as a matter of legislative finding that the lack of employment and business opportunities in many areas of this state has created a critically adverse condition; that the development of new commercial, industrial and manufacturing plants is essential to relieve such condition; that the health, happiness, safety, right of [354]

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Bluebook (online)
151 S.E.2d 680, 151 W. Va. 349, 1966 W. Va. LEXIS 229, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-county-court-of-brooke-county-v-kemp-wva-1966.