Opinion ID: 1374075
Heading Depth: 1
Heading Rank: 5

Heading: Authority of Commission to Acquire and Lease Property to State

Text: The Commission first argues that it has the authority to acquire and renovate a building and to lease this building to the State pursuant to a lease-purchase agreement. W. Va.Code, 8-33-4 (1984), grants municipal building commissions the power to: (f)(1) Acquire, purchase, own and hold any property, real or personal, and (2) acquire, construct, equip, maintain and operate public buildings, structures, projects and appurtenant facilities, of any type or types for which the governmental body or bodies creating such commission are permitted by law to expend public funds [.] (Emphasis added). In this regard, the Commission may expend funds for public buildings in the same manner as its creator, the City of Charleston. W. Va.Code, 8-12-5(36) (1989), provides that a municipality has the authority [t]o establish, construct, acquire, maintain and operate public buildings, municipal buildings ... motor vehicle parking lots, or any other public works[.] The Commission suggests that these statutes grant a municipal building commission broad power and authority to conduct the enumerated acts. Citing W. Va. Code, 8-33-12 (1969); County Comm'n of Boone County v. Hill, 194 W.Va. 481, 460 S.E.2d 727 (1995). Thus, these provisions permit the Commission to construct or acquire public buildings such as the Diamond building at issue in this case. The Commission further tenders in support of its position this Court's prior decision in State ex rel. Clarksburg Mun. Bldg. Comm'n v. Spelsberg, 191 W.Va. 553, 447 S.E.2d 16 (1994). In Spelsberg, we upheld an agreement between the Clarksburg Municipal Building Commission and the City of Clarksburg whereby the commission would construct a new municipal building, finance the project through the issuance of bonds, and lease the completed structure to the city. As with the Commission's proposed lease-purchase agreement in the instant case, the Clarksburg venture also anticipated discharging the bond obligation with the lessee's rent payments. See also State ex rel. West Virginia Resource Recovery  Solid Waste Disposal Auth. v. Gill, 174 W.Va. 109, 323 S.E.2d 590 (1984), overruled, in part, on other grounds by Winkler v. State Sch. Bldg. Auth., 189 W.Va. 748, 434 S.E.2d 420 (1993). Thus, the Charleston Building Commission urges this Court to uphold its proposed project because the State office building in this case is a public building substantially similar to the city municipal building of the Clarksburg enterprise. Respondent Dial contests the Commission's authority to acquire the Diamond building and subsequently lease the renovated structure to the State under a lease-purchase agreement. He asserts that while W. Va.Code, 8-33-4(f), permits the Commission to acquire the building and lease it to the City of Charleston for city use, this code section does not indicate that the Commission may similarly obtain a building and lease it to the State of West Virginia for state purposes. Although the proposed project would be a public building, respondent Dial contends that the project proposed by the Commission is ultra vires because the building will ultimately benefit the State of West Virginia rather than the City of Charleston. Consistent with respondent Dial's position, Amici Curiae assert that the City of Charleston has no authority to acquire, renovate, or construct a building designed specifically for state use. The Charter of the City of Charleston, West Virginia, provides, in part: Sec. 76. Power of council as to public buildings[.] The council [of the City of Charleston] shall have the authority to erect, buy, sell and lease all buildings necessary for the use of the city government and to provide for and regulate the same[.] (Emphasis in original). Because the City has no authority to provide a building for the State's use, W. Va.Code, 8-33-4, suggests that the Commission also cannot provide a structure solely for state purposes. [11] See also W. Va.Code, 8-12-1(4) (1969) (permitting municipality to purchase and acquire real property for any municipal purpose); W. Va.Code, 8-12-5 (1989) (enumerating general powers of municipality). [12] In general, we agree with the Commission's contention that it possesses the authority to acquire and renovate a building to be occupied by the State and to further lease this building to the State pursuant to a lease-purchase agreement. However, we arrive at the Commission's authority to do so in a slightly different manner than the arguments set forth above. The Commission correctly establishes that a municipal building commission's authority is derived in large part from the underlying powers of the municipality by which it was created. See W. Va.Code, 8-12-5(36); W. Va.Code, 8-33-4(f). Accordingly, we must look to the specific capacity of the City of Charleston to acquire a building and to lease this building to the State. W. Va.Code, 8-12-5, delineates the general powers of municipalities to include the powers and authority granted by (i) the constitution of this state, (ii) other provisions of this chapter, (iii) other general law, and (iv) any charter, and[,] to the extent not inconsistent or in conflict with any of the foregoing except special legislative charters, the additional powers specified in this statutory provision. (Emphasis added). As Amici Curiae noted in their brief, the Charter of the City of Charleston permits the City, as the State's Capital, to engage in specific property transactions with the State. Specifically, Section 59 of the Charter of the City of Charleston provides, in pertinent part: The City of Charleston is hereby authorized to issue and sell bonds of said city, for the ... purpose of ... acquiring or assisting in acquiring property to be donated, dedicated or conveyed to, or otherwise vested in, the State of West Virginia, as a site for a state capitol and other public buildings, which donation, dedication and conveyance are hereby authorized to be made[.] Therefore, the City of Charleston has the authority to acquire property for the State to use for public buildings. In the same manner, because the Charleston Building Commission derives its authority from the City which created it, the Commission also has the capacity to provide property and public buildings for the State's use. Thus, we find that the Charleston Building Commission has the authority to acquire a building to be occupied by the State. Since renovation of the Diamond building is a necessary prerequisite to the State's ability to occupy this building, we also conclude that the Commission has the power to renovate the property it plans to acquire for use by the State. We next must decide whether the Commission has the authority to enter the lease-purchase agreement proposed in this case. In analogous circumstances, we have determined a lease-purchase agreement to be a proper method of conducting projects such as the one contemplated by the Commission and the DHHR. [13] For example, in State ex rel. Clarksburg Mun. Bldg. Comm'n v. Spelsberg, supra , we upheld the lease-purchase by the City of Clarksburg of a new municipal building constructed and financed by the Clarksburg Municipal Building Commission. We also approved a lease-purchase agreement between the Kanawha County Building Commission and the County Commission of Kanawha County whereby the building commission constructed a judicial annex building to be leased to the county commission. State ex rel. Kanawha County Bldg. Comm'n v. Paterno, 160 W.Va. 195, 233 S.E.2d 332 (1977). Based upon our prior decisions in this realm, we find that the lease-purchase agreement proposed in the instant case is an appropriate method by which the Charleston Building Commission may furnish the renovated property to, and may ultimately vest said property in, the State of West Virginia.