State, Ex Rel. Eichenberger v. Neff

330 N.E.2d 454, 42 Ohio App. 2d 69, 71 Ohio Op. 2d 443, 1974 Ohio App. LEXIS 2719
CourtOhio Court of Appeals
DecidedSeptember 17, 1974
Docket74AP-54
StatusPublished
Cited by5 cases

This text of 330 N.E.2d 454 (State, Ex Rel. Eichenberger v. Neff) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State, Ex Rel. Eichenberger v. Neff, 330 N.E.2d 454, 42 Ohio App. 2d 69, 71 Ohio Op. 2d 443, 1974 Ohio App. LEXIS 2719 (Ohio Ct. App. 1974).

Opinion

Holmes, J.

This matter involves the appeal of a judgment of the Common Pleas Court of Franklin County wherein the court entered an order on behalf of B. Wilson Neff, the director of the Ohio Department of Public Works and the other defendants, the latter being the president and the trustees of Ohio University, in an action seeking a declaratory judgment, as well as equitable relief, brought by Jerry A. Eichenberger and others, who are noted in the caption of the case to be taxpayers.

The facts upon which this appeal rests are that the Ohio General Assembly enacted B. C. 123.77, effective November 24, 1967, which section of law provides a method whereby surplus state university lands may be leased to private developers. On May 29, 1970, the president and the board of trustees of Ohio University, a state university, adopted a resolution which provided that pursuant to B. C. 123.77, the university should solicit the assistance of the Ohio Department of Public Works for the purpose of leasing certain properties controlled by the university, commonly known as the East State Street airport lands.

*71 Between May 29, 1970, and July 28,1972, Ohio University, acting through its duly delegated officers, and the Ohio Department of Public Works, acting through its director, advertised in newspapers of general circulation in Athens and Columbus, Ohio, advising interested parties of the availability of the land for development and requesting written proposals for such development.

A number of written proposals were in fact submitted to the board of trustees and to a subcommittee, which had been appointed to expedite the handling of negotiations for any surplus land development, and on July 28, 1972, the subcommittee of the board recommended, and the full board resolved to accept a proposal submitted by Skilken for one of the parcels involved, and to accept a proposal of the Big Bear Corporation as to another parcel within the designated surplus lands.

The Big Bear Corporation, not being satisfied with the manner of acceptance of their proposal, and another of the corporations that had submitted a proposal, the Kroger Company, both filed actions for injunctive relief in the Franklin County Court of Common Pleas, which on October 6 and 13,1972, issued orders restraining Ohio University and the Ohio Department of Public Works from proceeding with the lease until further determinations had been made by the board of trustees of such university as to what in fact would be for the best interests of Ohio University, relative to any of the specific proposals.

As a result of such litigation, new lease proposals were made and submitted to the university by Big Bear Corporation and Kroger Company, and on December 8, 1972, defendant E. Wilson Neff, then the director of the Ohio Department of Public Works, wrote to the chairman and members of the board of trustees of Ohio University, recommending a lease with the Kroger Company. Thereafter, on December 14, 1972, the board of trustees of Ohio University resolved to accept the recommendation of the director of public works. Plans and negotiations evolved into the lease agreement and, on May 9, 1973, the board passed a resolution that the proposed lease with the Kroger Company was in the “best interests of the president *72 and trustees of Ohio University,” approved the lease, and directed the director to finalize such. Thereafter, on May 18,1973, the director, on behalf of the state of Ohio, entered into a lease agreement for two described parcels of the surplus university lands.

Subsequently, this action was filed in the Court of Common Pleas seeking an injunction against the performance of such contract, and for other equitable relief. The matter was submitted to the court after full hearings and the filing of exhibits, depositions and extensive briefs on the legal questions presented. The Honorable Frederick T. Williams rendered a decision in favor of the defendants, and thereafter filed separate “Findings of Fact and Conclusions of Law” and entered a final order and judgment, filed on January 10, 1974, dismissing the complaint and entering a final judgment for the defendants. Plaintiffs now appeal to this court, setting forth the following assignments of error:

“1. The Court erred in ruling that Section 123.77 of the Ohio Revised Code is a constitutionally valid statute and is not an unlawful delegation of legislative power.
‘ ‘ 2. The Court erred in ruling that the leasing of Ohio University Airport lands to the Kroger Company for development of a commercial shopping center was not prohibited bv Article I, Section 19 of the Ohio Constitution of 1851.
“3. The Court erred in ruling that the proposed transaction between the Department of Public Works, the President and Board of Trustees of Ohio University, and the Kroger Company, as governed by the terms and conditions contained in the lease agreement between those parties, does not cause the State to become a joint owner in a company or association formed for the purpose of developing a commercial shopping center, in violation of the provisions of Article VIII, Section 4 of the Ohio Constitution of 1851.
“4. The Court erred in ruling that the Agreement entered into between the Department of Public Works, the President and Board of Trustees of Ohio University, and the Kroger Company, does not result in the State lending *73 its credit to a private corporation in violation of Article VIII, Section 4, and Article VIII, Section 5 of the Ohio Constitution of 1851.
4 4 5. The Court erred in ruling that the leasing of surplus state lands for the purpose of increasing revenues for university and educational interests is for a public purpose.
4 4 6. The Court erred in ruling that the President and Board of Trustees of Ohio University are not restricted by the corporate charter of Ohio University from engaging in development of surplus state land as a commercial shopping center.
“7. The Court erred in ruling that the lease agreement entered into by the Department of Public Works, the President and Board of Trustees of Ohio University, and the Kroger Company is in compliance with the statutory provisions of Section 123.77 of the Ohio Bevised Code.”

This matter has been exceptionally well briefed by counsel for the plaintiffs, the appellants herein, and counsel for the defendants. They were presented the issues very informatively and persuasively, their briefs containing very exhaustive arguments and supportive data relative to all positions of the parties. All assignments of error shall, in compliance with App. E. 1.2(A), be passed upon by this reviewing court; however, we shall do so not in the order presented, but in the sequence that we feel will best fit the decisional pattern in response to all questions presented.

We shall first consider the plaintiffs ’ third assignment of error wherein it is alleged that the trial court erred in holding that the lease does not cause the state to become a joint owner in a company or association in this state, contrary to Article VIII, Section 4 of the Ohio Constitution of 1851.

Article VIII, Section 4, in its entirety, reads as follows:

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Bluebook (online)
330 N.E.2d 454, 42 Ohio App. 2d 69, 71 Ohio Op. 2d 443, 1974 Ohio App. LEXIS 2719, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-eichenberger-v-neff-ohioctapp-1974.