State ex rel. Jackson v. Dolan

398 S.W.3d 472, 2013 WL 2459994, 2013 Mo. LEXIS 29
Supreme Court of Missouri·Decided May 28, 2013·No. No. SC 92717·Published·Cited by 38 cases

Opinion

ZEL M. FISCHER, Judge.

The Southeast Missouri Regional Port Authority (“Port Authority”) sought to purchase a 30.65-acre parcel of land owned by Velma Jackson and Alicia Seabaugh (“Trustees”) in their capacity as trustees of the Lambert Family Trust. After negotiations with the Trustees failed, the Port Authority filed a petition for condemnation in the circuit court of Scott County seeking condemnation of the 30.65-acre parcel. The Trustees filed a motion to dismiss arguing that the sole purpose for the taking was economic development, in violation of § 523.271,1 and that the taking was for a private use, in violation of article I, section 28 of the Missouri Constitution. After an evidentiary hearing, the circuit court ordered condemnation of the property. The circuit court concluded that the taking did not violate § 523.271 because, in addition to promoting economic development, the taking would facilitate construction of a loop track and would improve river commerce. The circuit court also concluded [474] that the taking did not violate article I, section 28 because it served a public purpose and any aid provided to a private entity was incidental to such purpose.

The Trustees petitioned this Court for a writ of prohibition, arguing that the condemnation was unauthorized by law because it violated § 523.271 and article I, section 28. This Court issued a preliminary writ. Because the circuit court failed to find any purpose-for the taking that is not included in the legislature’s definition of “economic development,” the proposed taking is in excess of the Port Authority’s condemnation authority, and the preliminary writ of prohibition is made permanent.

Procedural and Factual History

Velma Jackson and Alicia Seabaugh own 30.65 acres of undeveloped land in their capacity as Trustees. The 30.65-acre parcel abuts land owned by the Port Authority. The Port Authority is a political subdivision of the State of Missouri organized under chapter 68, RSMo, and has the authority to acquire property necessary to its purposes through the power of ' eminent domain pursuant to § 68.025.1(17).2 The Port Authority is also authorized to “[cjonsider and adopt detailed and comprehensive plans for future development and improvement of its port districts and to coordinate such plans with regional and state programs,” to conduct land reclamation and resource recovery, and to buy and sell real property and improvements and personal property necessary to fulfill its purposes. Sections 68.025.1(2), (15) and (16).3

The Port Authority operates a port district that encompasses Scott and Cape Gir-ardeau counties. Within this district, the Port Authority owns between 500 and 600 acres of land. The Port Authority plays two roles with regard to the land it owns. First, it serves as a land developer by developing and leasing land to private companies. In this capacity, the Port Authority provides streets, sewers, utilities, railroad tracks, and access to the harbor contained within the port. The harbor [475] itself is operated by a private entity on land leased by the Port Authority. In its second role, the Port Authority operates a six-mile railroad that connects with two separate rail carriers, Union Pacific and Burlington Northern Santa Fe. This six-mile railroad provides businesses in the area with the ability to transfer freight between barges and trains at the Port Authority’s harbor.

In order to expand its facilities, the Port Authority decided to build a loop track that would enable it to handle unit trains. Unit trains are trains of around 100 cars that come from one shipper and are headed to one particular destination. The Port Authority’s current track is insufficient to handle trains of this magnitude, and it hopes that by constructing a loop track it can reduce freight rates thereby promoting growth in jobs and commerce.

To fund the construction of the loop track, the Port Authority sought to condemn the 30.65-acre parcel of land owned by the Trustees. The Port Authority intends to lease all of the condemned land out to private entities. One such entity has agreed in principle to the terms of a lease.4 This unnamed entity wishes to construct a tank farm on a portion of the Trustees’ land that would hold liquid products for transfer between barge and rail or barge and truck. The Port Authority also has conditional leases in place with other prospective tenants that would build dry storage areas for cargo on the 30.65-acre parcel. None of the facilities would be open to the general public. The private entities would receive the income derived from these facilities.

In exchange for the lease, or as part of the lease,5 each prospective tenant has agreed to provide funding for construction of the loop track. The loop track itself will not be constructed on the 30.65-acre parcel. The Port Authority does not need to condemn the land to have a place to construct the loop track. It already owns that land, but it lacks the funding to build the track.

After the circuit court ordered condemnation, the Trustees petitioned this Court for a writ of prohibition, arguing that the condemnation was not authorized by law because it violates § 523.271 and article I, section 28. This Court entered a preliminary writ of prohibition.

Appropriateness of a Writ of Prohibition

Prohibition is a discretionary writ that may be appropriate to stop condemnation proceedings that are not authorized by law. State ex rel. Broadway-Washington Assocs., Ltd. v. Manners, 186 S.W.3d 272, 274 (Mo. banc 2006); Tierney v. Planned Indus. Expansion Auth. of Kansas City, 742 S.W.2d 146, 149-50, 157-58 (Mo. banc 1987).

The Taking Does Not Violate Article I, Section 28 of the Missouri Constitution

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State ex rel. Jackson v. Dolan, 398 S.W.3d 472, 2013 WL 2459994, 2013 Mo. LEXIS 29 (Mo. 2013).

398 S.W.3d 472 (State ex rel. Jackson v. Dolan) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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