Title: Ramer v. City of Hoover
Citation: 437 So. 2d 455
Docket Number: N/A
State: Alabama
Issuer: Alabama Supreme Court
Date: July 22, 1983

437 So. 2d 455 (1983)
Richard O. RAMER
v.
CITY OF HOOVER, an Alabama Municipal Corporation, et al.
81-820.

Supreme Court of Alabama.
July 22, 1983.
Rehearing Denied August 19, 1983.
*456 William M. Acker, Jr., J. Terrell McElheny and Susan Dominick Doughton of Dominick, Fletcher, Yeilding, Acker, Wood &amp; Lloyd, Birmingham, for appellant.
Jack H. Harrison of Harrison, Jackson &amp; Lee, Edwin A. Strickland, Birmingham, for appellees Chriss Doss, Ben Erdreich and Ray Moore as Commissioners of Jefferson County, Ala.
John P. Scott, Jr., and Randolph H. Lanier of Balch, Bingham, Baker, Hawthorne, Williams &amp; Ward, Birmingham, for appellee The Harbert-Equitable Joint Venture.
*457 David P. Whiteside, Jr. and Michael L. Hall of Johnston, Barton, Proctor, Swedlaw &amp; Naff, Birmingham, for amicus curiae The Personnel Bd. of Jefferson County, Ala.
MADDOX, Justice.
This case arises out of the annexation of the Riverchase development into the City of Hoover, and the primary issue is whether a landowner had a right to tie-in to a trunk sewer line which ran through his property. The appellant, Richard Ramer, owner of a tract of land through which the sewer passed, contends that the trial court committed numerous errors in this case, but he asks this Court to consider only the most "glaring errors." Those errors are stated thusly:
Ramer's 58-acre tract of property is located in Jefferson County. Ramer resides in the county, but he neither resides in nor votes as an elector in Hoover. He sued the City of Hoover, the Harbert-Equitable Joint Venture (HEJV), and the County Commissioners of Jefferson County, claiming that by their combined actions, they had blocked the development of his property. The trial court made extensive findings of fact. We incorporate pertinent portions, which we find are sustained by the evidence:
In 1974 HEJV started the Riverchase development. The planned community covers some 3,000 acres of land in Jefferson and Shelby Counties. The development includes commercial and residential construction. HEJV maintains that the scale of the project demands access to a large volume of water for sewage treatment capacity. HEJV asserts that the Jefferson County Commission in letters of commitment promised to provide adequate treatment capacity for Riverchase from the then existing Cahaba River Treatment Plant.
In 1979, HEJV began negotiations with the City of Hoover for the annexation of Riverchase into Hoover. An annexation agreement between HEJV and Hoover included the following provisions: (1) residents of Riverchase would be exempt from any increase in ad valorem taxes for 15 years; (2) workers in Riverchase would be exempt from any increase in occupational taxes for 15 years; (3) Hoover would purchase the Riverchase Plant from HEJV; and (4) Riverchase would have exclusive use of the Riverchase Plant. The administration of the City of Hoover ratified the agreement.
A proposed bill was introduced in the Alabama Legislature to annex Riverchase to Hoover. In its Opinion of the Justices, 381 So. 2d 632 (Ala.1980), this Court questioned the adequacy of the legal notice given for the proposed legislation regarding the annexation and raised doubts about portions of the annexation agreement, specifically the tax exemption provisions. Another proposed bill was enacted into law (1980 Ala.Acts 590).
On September 9, 1980, Hoover conducted the Riverchase annexation election. A majority of the electors who voted did vote for annexation. Ramer argues that because: (1) the electors of Hoover did not vote in the election; (2) the Boards of Registrars for Jefferson and Shelby Counties allegedly failed to provide a list of qualified voters for the election; and (3) portions of the annexation agreement are invalid, that this Court must nullify the election. Ramer also questions the propriety of Hoover's *459 planned purchase and use of the Riverchase Plant.
In August 1979, Hoover adopted the Planned Unit Development (PUD) HEJV submitted to the municipality which altered the zoning ordinance of the City of Hoover. Ramer argues this plan exceeded the powers granted to Hoover by law.
Ramer commenced this action against the appellees to have the annexation election and various portions of the annexation agreement declared invalid. Ramer also sought to have the trial court order Jefferson County to make a sewage allocation to him for his 58 acres. The trial court, hearing evidence presented ore tenus, refused to invalidate the election or to require the county to allocate Ramer any sewage tonnage capacity. In its final judgment, the trial court held that the portions of the annexation agreement exempting Riverchase from ad valorem and occupational tax increases for fifteen years violated Alabama law.
Ramer appeals from the trial court's final judgment.
Ramer argues that the sewer right of way deed that his predecessor in title executed reserved a benefit for his property, "if and when" the county constructed a sewer line, to hook into the sewer trunk line. The pertinent language in the right of way deed reads:
The trial court reviewed the deed and in its judgment stated:
After reviewing the entire deed, we agree with the trial judge that Jefferson County was not under a legal obligation to provide the grantor a "sewer connection at any time, under any circumstances."
Regarding Ramer's argument that the County's actions constitute a taking of his property without just compensation in violation of the Fifth Amendment to the United States Constitution, the County, in brief, has directed the Court's attention to recently decided federal cases which address the issue of whether a governmental moratorium on sewage allocation constitutes a taking of property without just compensation. In Kent Island Joint Venture v. Smith, 452 F. Supp. 455 (D.Md.1978), a landowner-developer brought suit against local officials for blocking his development plans. The landowner alleged in part that the defendants misrepresented the effects of certain proposed amendments to the county sewage plan. In addressing the land developer's claim that the defendants were taking his property without just compensation, the Court held:
452 F. Supp.  at 460.
Ramer argues this Court should declare the annexation election a nullity. In support of his position, he sets forth three reasons: (1) the electors in Hoover did not participate in the election; (2) the Boards of Registrars of Jefferson and Shelby Counties allegedly failed to provide election officials with a list of qualified voters; and (3) material contractual commitments between HEJV and Hoover to induce a favorable annexation vote are void and unenforceable.
At trial, the appellees asserted that Ramer did not have standing to contest the annexation election, but the trial judge in his order held: "Ramer, though not a Hoover elector, is a property owner and taxpayer of Hoover. As a taxpayer, he has a right to protect and the totality of his annexation claims assert a misuse of corporate power. The Court thus holds that Ramer has standing to assert these issues...."
After consideration of the standing issue, we hold that the trial judge correctly found that Ramer had standing to contest the annexation election; therefore, we will address the contentions Ramer makes regarding the annexation election, viz: (1) the Boards of Registrars of Jefferson and Shelby Counties failed to furnish a proper list of the qualified electors in the area to be annexed, and (2) when two crucial provisions of the annexation agreement between HEJV and Hoover, which were inducements to vote for annexation, were declared invalid by the court, then the favorable vote for annexation should not be effective and binding. The trial court, in a lengthy decree, addressed these issues as follows:
The trial judge correctly held that the advisory opinion of this Court, Opinion of the Justices, 381 So. 2d 632 (Ala.1980), only addressed the question of the adequacy of notice to the electors of the annexing and the annexed territory. Even though this Court did quote a Harvard Law Review article in that advisory opinion which suggests that electors in both the annexing municipality and the proposed annexed area should vote, the law of this state is that the Legislature, in the exercise of its sovereign power, can alter the territorial limits of a municipality without the approval of the municipality's electors. City of Birmingham v. Norton, 255 Ala. 262, 50 So. 2d 754 (1950).
Ramer argues that the Boards of Registrars of Shelby and Jefferson Counties failed to provide the Hoover city clerk with "a list of qualified electors in the area to be annexed," and thus failed to comply with 1980 Ala.Acts 590. The trial judge, in his final judgment, found and concluded, as follows:
We hold that the trial judge was justified in concluding that the lists the registrars provided sufficiently complied with the requirements of the annexation statute.
The trial judge, finding Ramer had standing to challenge the Annexation Agreement, declared two provisions of the Annexation Agreement void.
The trial judge addressed the agreement, as follows:
The trial judge concluded that "the tax exemption aspect of the agreement is void to the extent that it exceeds the authority granted by Act No. 787, 1977." The trial court addressed the tax exemption issue, as follows:
"Section 2 of the Act provides that,
"Section 3 of the Act provides, however, that,
It should be noted that the Act No. 787, 1977 Ala.Acts, would allow a total exemption for a period of five years from city ad valorem and occupational taxes, while the annexation agreement only exempted the *465 property owners of the annexed Riverchase area from "increases in the rate of ad valorem taxation in effect on the effective date of such annexation for the period of fifteen (15) years from such date" and "the imposition of any new or additional occupational taxes during such fifteen (15) year period...." (Emphasis added.)
Ramer contends that the tax exemption portion of the agreement was an inducement to obtain favorable votes for annexation, and when the trial court voided these provisions insofar as they exceeded the authority granted by Act 787, 1977, that there was a "failure of consideration" and that the annexation election should have been declared invalid.
We disagree. Prior to annexation, property owners within the Riverchase area were not subject to any municipal taxes. Additionally, the evidence showed that there had been no increases in taxes since the date of the annexation election, and the evidence further showed that all property owners within the annexed area were paying the same rate of city taxes as were being paid by property owners similarly situated in other areas of the city. Furthermore, Act No. 787 would have authorized the City of Hoover to grant property owners a full exemption for five years.
While we recognize that the exemption from new taxes constituted an inducement for property owners to vote favorably for annexation, City of Mobile v. Salter, 287 Ala. 660, 255 So. 2d 5 (1971), we cannot say that the trial court erred in refusing to invalidate the entire agreement and the annexation election because a portion of this inducement was held to be beyond the authority of the city to grant. The City of Hoover was authorized by Act No. 787 and under the authority of the City of Mobile decision to grant tax exemptions for the annexed territory for a period of time, and the exemptions actually made by the city were considerably less favorable to the annexed area than otherwise could have been granted under the full tax exemption allowed under the statute. In view of all these circumstances, therefore, we hold that the trial court did not err by refusing to find a "failure of consideration" which would void the entire agreement and the election.
Regarding Ramer's argument that the annexation agreement provided that planning and engineering standards of Riverchase would supersede inconsistent ordinances and regulations of the city of Hoover, the trial judge held:
It has been held that a person who seeks to challenge exclusionary zoning practices must allege specific, concrete facts demonstrating that the challenged practices harm him, and that he would personally benefit in a tangible way from the court's intervention. Warth v. Seldin, 422 U.S. 490, at 508, 95 S. Ct. 2197, at 2210, 45 L. Ed. 2d 343. The court, although allowing Ramer to present evidence, nevertheless found as above-quoted, that "the evidence has failed to show that there exists any ordinance or regulations of Hoover that are superseded. This appears to be an empty agreement and presents no controversy to adjudicate."
Ramer has failed, on appeal, to cite any ordinance or regulations of Hoover that the annexation agreement supersedes. He does correctly cite authority which prohibits a municipality from relinquishing certain legislative powers. See City of Leeds v. Town of Moody, 294 Ala. 496, 319 So. 2d 242 (1975). The evidence does show that the City of Hoover passed ordinance No. 321 which adopted the Planned Unit Development (PUD) HEJV submitted for Riverchase, and when Hoover enacted the PUD, the planning and engineering standards *466 HEJV drafted for Riverchase became part of the zoning code for Hoover, but we find evidence to support the trial court's finding that Hoover never relinquished any legislative duties. The trial court was authorized to find that Hoover exercised its legislative powers and adopted the planning and engineering standards set forth in the annexation agreement. While Ramer has made various accusations about the motives of Hoover when it accepted the annexation agreement, he has failed to produce enough evidence to convince this Court that the trial court's findings were palpably wrong or unjust.
The appellant's final challenge to the annexation agreement regards Hoover's purchase of the Riverchase plant from HEJV. Ramer contends that the annexation agreement illegally gives the residents of Riverchase exclusive use of the Riverchase plant and, thereby violates Section 22, Constitution of Alabama, which prohibits making "exclusive grants of special privileges or immunityes." He also contends that the purchase violates Section 94 of the Constitution of Alabama, which prohibits any municipality from lending its "credit or to grant public monies * * * to any individual, firm, association or corporation whatsoever." Alabama Constitution, Art. I, § 22, provides:
Ramer contends that Hoover's agreeing to allow residents of Riverchase exclusive use of the Riverchase plant equates to "exclusive grants of special privileges or immunities." The trial court correctly answered Ramer's arguments regarding Ala. Const., Art. I, § 22, when it held:
The trial court also correctly addressed Ramer's arguments regarding the purchase of the Riverchase plant and any possible violation of Ala. Const., Art. IV, § 94. That section of the Constitution provides:
The trial court correctly relied on Rogers v. City of Mobile, 277 Ala. 261, 268, 169 So. 2d 282 (1964), and found:
In this instance, Hoover's proposed purchase of the Riverchase plant from HEJV is "an ordinary commercial contract" that does not violate Ala. Const., Art. IV, § 94.
Further, Ramer contends that any purchase of the Riverchase plant must be assessed to the residents of Riverchase that actually have use of the facility and cannot come from monies in the general fund of the City of Hoover. He relies on § 11-50-71, Code 1975, which provides:
When read with other statutes authorizing the construction, maintenance and purchase of sewage facilities, it becomes clear that § 11-50-71 provides one alternative to finance the purchase of sewer plants. Code 1975, § 11-50-78, provides that the municipal councils may purchase a sewage plant "out of the general funds of the city...." The trial court's judgment correctly held that Code 1975, §§ 11-47-3(a), 11-48-4, 11-50-50, and 11-50-71, grant the City of Hoover the power to "purchase, to contract for the construction, operate, maintain and incur debt for and in connection with sanitary sewer systems." No grounds are presented on appeal which require that this Court declare Hoover's proposed purchase of the Riverchase plant illegal.
Ramer finally argues that the "totality of circumstances" in this case compound to deny him due process and equal protection guaranteed in the United States Constitution, Amendment XIV. Basically, he contends that the appellee's treatment of him while he was attempting to secure a sewage allocation has violated notions of "fundamental fairness." In part, Ramer questions the propriety of an attorney that represented the Jefferson County Commission and who also served as a member of the Moratorium Committee, which denied Ramer's request for a sewage allocation. Ramer made no objection to the attorney's membership on the Moratorium Committee when he took his allocation request before the committee or during the lower court trial. Therefore, this issue cannot now be raised on appeal. McDuffie v. Hooper, 294 Ala. 293, 315 So. 2d 573 (Ala.1975).
Ramer contends that the appellees' combined actions constitute an unlawful "taking" of his property. He claims that the decision of the Jefferson County Commission to allot HEJV a large percentage of the available sewage allocation is arbitrary and capricious. Further, he argues that the appellants negotiated "sweetheart deals" that afforded HEJV special treatment and, *468 therefore, violated his equal protection rights.
We have reviewed the vast record in the case and examined Ramer's argument and the appellees' rebuttal. We turn again to the learned trial court's final judgment where he made this statement about the final issue Ramer raises on appeal:
The trial was lengthy, and the issues were varied and complex, but the trial was presided over by a learned trial judge, and we could have substantially adopted his extensive findings of fact and conclusions of law as our own.
For the reasons stated, the trial court's judgment is due to be affirmed.
AFFIRMED.
JONES, ALMON, SHORES and BEATTY, JJ., concur.