Tribe v. Salt Lake City Corporation

540 P.2d 499, 1975 Utah LEXIS 755
CourtUtah Supreme Court
DecidedJuly 30, 1975
Docket13856
StatusPublished
Cited by36 cases

This text of 540 P.2d 499 (Tribe v. Salt Lake City Corporation) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tribe v. Salt Lake City Corporation, 540 P.2d 499, 1975 Utah LEXIS 755 (Utah 1975).

Opinions

MAUGHAN, Justice:

Here on appeal is the decision of the district court declaring the Utah Neighborhood Development Act1 constitutional, and that actions taken and proposed to be taken pursuant to those statutory provisions are constitutionally permissible.

Plaintiffs commenced a declaratory judgment action in the court below with the alleged purpose of having the foregoing statutes and actions declared unconstitutional. On appeal plaintiffs raise seven points, any one of the first five of which, if valid, would be sufficient to reverse the action of the lower court, and defeat the proposed project. In summary, the points raised by plaintiffs are:

1. That the Redevelopment Agency proposed is in fact a special commission and contravenes the provisions of Article VI, Section 28, Utah Constitution.
2. The proposed Redevelopment Agency bonds constitute a debt of the City within the meaning of Article XIV, Sections 3 and 4, Utah Constitution, and thus would require approval of the electorate of the City — an action which will not be taken under the proposed plan.
3. The proposed plan contravenes the provisions of Article VI, Section 29, Utah Constitution, because the issuance of the proposed bonds would in fact be a lending of credit in violation of this constitutional provision.
4. The construction and operation of the proposed parking facility will result in the granting of private benefits, and thus contravene Article I, Sections 7, 22, 23 and 24, Utah Constitution, and the Fourteenth Amendment to the United States Constitution.
5. The proposed plan is in violation of Article XIII, Section 5, Utah Constitution, because the tax allocation provisions of the plan are a clear interference with the power of the City and County to collect taxes for all purposes.
6. That the Redevelopment Agency is subject to the budgetary laws applicable to cities.
7. That the proposed allocation of taxes using an assessed valuation base of 1970 constitutes a retroactive application of the enabling law, and thus violates proper principles of statutory construction.

In June of 1969, Salt Lake City Corporation created the Redevelopment Agency of Salt Lake City, (hereinafter referred to as the Agency) pursuant to the provisions of the Utah Neighborhood Development Act (hereinafter referred to as the Act). The Board of Commissioners of Salt Lake City Corporation was designated as the Redevelopment Agency of the City. In February of 1971, the City duly adopted an ordinance approving a redevelopment plan for the project area with which we are here concerned, viz., the blocks and streets adjacent thereto, of the two-block area bounded on the north by First South Street, on the east by Main Street, on the [502]*502south by Third South Street, and on the west by West Temple Street.

The plan recognized that in this project area there were a number of substandard buildings and substandard land use; and that through rehabilitation, in some cases, or acquisition, clearance and rebuilding in other cases, the project area could be improved, with the result, among other things of strengthening the tax base and ameliorating the economic health of the entire community. Within this area the plan called for the construction and operation of a parking facility, to be financed by the issuance of $15,000,000 of tax allocation and parking revenue bonds. These bonds are to be retired by parking revenues and from an allocation of taxes, the formula for which is given in the Act.2 The allocation of taxes comes about in the following fashion: A base year is chosen (in this instance 1970) which year provided the last equalized assessment roll prior to February 11, 1971, the date of the adoption of the original redevelopment plan. On that date there was no possibility of providing for an allocation of taxes to the Agency, because it was not until April 4, 1974, that such a method of financing was provided by the legislature.3 Taxes assessed within the project area will continue to be paid to the various taxing agencies, through normal channels, based on the assessed valuation established by the assessment roll of 1970.

Any increase in valuation, above that established by the assessment roll of 1970, within the project area, will produce an increment in tax revenue. It is this increment which will be diverted directly to retire the Agency bonds. This tax allocation together with the anticipated revenues from the operation of the parking facility will constitute the sole revenues obligated to retire the bonds. The plan provides that this method continues until such time as the bonds are retired, after which the total taxes assessed will find their way, through normal channels, to the various taxing agencies, while the revenue arising from the operation of the parking facility becomes that of the Agency, for use in future redevelopment projects. It is this tax allocation feature which is central to the matters here for consideration.

Are the Agency, and its methods for implementing its objects constitutionally permissible? The answer to this question hinges on whether the objects and purposes of the Act are statewide or local; and whether the Agency, as structured by the Act, is such a one as can concurrently exist with municipal corporations and assessment units.

The concept of redevelopment was enacted by the state legislature, its area of operation is statewide, and deals with a statewide problem, viz., blight. To be sure, the present project area would appear to have only local operation, but it must be remembered that it is a local operation of an act of general statewide scope; and that its local operation hinges on a contingency — the decision of the legislative body of the Agency. A decision motivated by the existence of a condition of statewide concern.

It appears clear that the Agency here concerned is a quasi-municipal corporation, and not a special commission. A quasi-municipal corporation has been defined as a public agency created by the legislature to aid the state in some public work for the general welfare, other than to perform as another community government.4 A municipal corporation is a body politic and corporate, created to administer the internal concerns of the district embraced within its corporate limits; in matters peculiar to such place and not common to the state at large. A special commission is some body or group separate [503]*503and distinct from municipal government. Such a commission is not offensive to the constitution by its creation, but only when such a commission is delegated powers which intrude into areas of purely municipal concern.

The success of plaintiff’s challenges depends upon the character of the agency created by the legislature. If the legislative enactment authorizes the performance of activities, which qualify as a function appropriately performed by a state agency, the constitutional interdiction of Article VI, Section 28, is not applicable. This section applies only to municipal functions, the performance of which are constitutionally limited to the units of local government.5 The problem of “urban blight” we recognize as one of statewide concern, and not merely a local or municipal problem. The agency for that reason does not run counter to Article VI, Section 28.

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Bluebook (online)
540 P.2d 499, 1975 Utah LEXIS 755, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tribe-v-salt-lake-city-corporation-utah-1975.