Vieux Carre Property Owners, Residents and Associates, Inc. v. Pierce

719 F.2d 1272, 21 ERC (BNA) 1307, 1983 U.S. App. LEXIS 15120
CourtCourt of Appeals for the Fifth Circuit
DecidedNovember 21, 1983
Docket18-60081
StatusPublished
Cited by10 cases

This text of 719 F.2d 1272 (Vieux Carre Property Owners, Residents and Associates, Inc. v. Pierce) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vieux Carre Property Owners, Residents and Associates, Inc. v. Pierce, 719 F.2d 1272, 21 ERC (BNA) 1307, 1983 U.S. App. LEXIS 15120 (5th Cir. 1983).

Opinion

719 F.2d 1272

21 ERC 1307

VIEUX CARRE PROPERTY OWNERS, RESIDENTS AND ASSOCIATES, INC.,
et al., Plaintiffs-Appellants,
v.
Samuel R. PIERCE, Jr., etc., Defendant,
and
City of New Orleans, Defendant-Appellee,
and
Canal Place One, Intervenor-Appellee.

No. 82-3558.

United States Court of Appeals,
Fifth Circuit.

Nov. 21, 1983.

Derbes & Derbes, James G. Derbes, James R. Logan, New Orleans, La., for plaintiffs-appellants.

Barham & Churchill, David A. Marcello, Margaret E. Woodward, New Orleans, La., for City of New Orleans.

Stone, Pigman, Walther, Phillip A. Wittmann, Cathy S. Glaser, New Orleans, La., for intervenor-appellee.

Appeal from the United States District Court for the Eastern District of Louisiana.

Before BROWN and JOHNSON, Circuit Judges, and CASSIBRY, District judge*.

JOHNSON, Circuit Judge:

Appellants, Vieux Carre Property Owners, Residents and Associates, Inc., and the Louisiana Landmark Society, filed this lawsuit against the United States Department of Housing and Urban Development (HUD) and the City of New Orleans (the City) seeking to enjoin the use of federal funds granted to the City pursuant to an Urban Development Action Grant (UDAG). The grant would fund public improvements adjacent to Canal Place, Phase I, to be used in connection with Canal Place, Phase II. Phase II is a hotel, retail and parking development presently under construction in the Central Business District of New Orleans near the foot of Canal Street. Plaintiffs argue that federal funds should be withheld because the City, as the entity delegated responsibility for an environmental and historic preservation review, had not complied with the provisions of the National Environmental Policy Act of 1969 (NEPA), 42 U.S.C. Sec. 4321, et seq., and the National Historic Preservation Act of 1966 (NHPA), 16 U.S.C. Sec. 470, et seq. The developer of Canal Place and beneficiary of the UDAG funds, Canal Place 2,000, intervened in the lawsuit.

A temporary restraining order halting construction was denied and summary judgment was granted by the district court in a well-reasoned opinion on August 10, 1982 in favor of HUD, the City, and Canal Place 2,000, dismissing plaintiffs' lawsuit. Plaintiffs have appealed against the City and Canal Place 2,000, but have not pursued an appeal against HUD. We affirm the district court's decision.

I. Facts

The City of New Orleans is an eligible recipient of UDAG funds under Title I of the Housing and Community Development Act of 1974 (HCDA), as amended 42 U.S.C. Sec. 5301, et seq., and its implementing regulations, 24 C.F.R. Sec. 570, et seq. Action Grants provide assistance to "distressed cities" to stimulate private and public investment and strengthen the economic, employment and tax bases of the urban area. See generally, 24 C.F.R. Sec. 570.450(a).

On January 20, 1981, the City filed a grant application with HUD for UDAG funds to implement public improvements associated with a hotel, retail and parking complex (Canal Place, Phase II) to be constructed near the river end of Canal Street. More particularly, the UDAG project is planned as a 511-room hotel, a 223,000 square-foot multi-level shopping mall and a parking facility to accommodate 1550 vehicles. The federal funds requested in the grant application will be used for the following civic improvements to be enjoyed by the citizenry at large:

1. Sidewalk construction within the vicinity of Canal Place;

2. Streetlighting within the vicinity of Canal Place;

3. Landscaping within the vicinity of Canal Place;

4. Elevated pedestrian walkway from Canal Street to the Mississippi River Ferry;

5. Relocation of New Orleans Public Service, Inc. (NOPSI) power lines and support lines; and

6. NOPSI substation screening.

Canal Place 2,000, a Louisiana ordinary partnership and joint venture, is the developer of the project. Joseph Canizaro, the managing partner, is a well-respected developer of numerous office buildings in downtown New Orleans and is active in various civic organizations concerned with urban growth in New Orleans. Although the City requested a grant in the amount of $10 million, HUD preliminarily approved a $6 million grant for the public improvements in April of 1981. The developer will expend over $100 million of private funds on the UDAG project.

Although the overall Canal Place development was once envisioned as a thirteenacre development extending from Canal Street to Conti Street in the Vieux Carre District and from Decatur Street to the river's edge, the UDAG site actually proposed in the instant case (Canal Place, Phase II) is bounded by Canal Street, North Peters Street, Ibberville Street, and the NOPSI substation. Phase II is adjacent to a presently existing thirty-two story office building (Phase I) in operation since 1979. A master plan developed in the mid-70's contemplated three later phases (a total of five phases) in the complete thirteen-acre development. Although plaintiffs would have the court believe that the five-phase master plan is a "fait accompli," Phases III through V1 are indefinite and speculative in nature; no final plans nor private funding commitments exist as to Phases III through V, and no further design work or land acquisition as to Phases IV and V has been performed since 1978. Indeed, the developer owns none of the land or air rights for Phase IV but owns some but not all the land for Phase V.

Phase II is located in the Central Business District in an area containing numerous hotels. Although the UDAG project area is located within the Vieux Carre National Historic Landmark District, it is not under the jurisdiction of the Vieux Carre Commission. The UDAG is a key component of the economic development strategy for downtown New Orleans and was intended to provide a retail anchor at the lower end of Canal Street, needed hotel rooms to bolster the City's vital tourist industry, and a stimulus for restoration of existing deteriorated buildings in the immediate area.

The private development portion of the UDAG project has been publicly scrutinized since its inception by the City Planning Commission, the Mayor's Office on Special Projects, the Vieux Carre Commission and countless civic organizations and boards. Contrary to the plaintiffs' suggestion, the UDAG project has been assessed, modified, and reassessed in order to arrive at a final Phase II that is in conformity with all applicable zoning ordinances. The Phase II site is a part of the Central Business Plan Community District, a zoning district developed and approved after a lengthy review process before the City Planning Commission and the City Council.

Under NEPA and NHPA, HUD is responsible for conducting an environmental and historic preservation review of this UDAG project.

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719 F.2d 1272, 21 ERC (BNA) 1307, 1983 U.S. App. LEXIS 15120, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vieux-carre-property-owners-residents-and-associates-inc-v-pierce-ca5-1983.