Opinion ID: 1921785
Heading Depth: 2
Heading Rank: 3

Heading: Caselaw on Pending Appeal.

Text: ¶ 27. The appellants contend that their February 3, 2006, appeal, filed after the January 24, 2006, meeting, prohibited the City from extending the option agreement at subsequent meetings while the appeal was pending before the circuit court. The appellants rely upon South Central Turf, Inc. v. City of Jackson, 526 So.2d 558 (Miss.1988), and Gatlin v. Cook, 380 So.2d 236 (Miss.1980), for authority. ¶ 28. However, we find that the appellants' argument is misplaced. The City's final decision was the conveyance of the property to Worley Brown, not the extension of the option agreement. Unlike the extension at the January 24 meeting, Gatlin and South Central Turf considered the final decisions of the municipalities. This Court in South Central Turf held: As in Gatlin v. Cook , the City of Jackson was without authority to reconsider the matter which it had already finally decided on April 8, 1986, when the Mayor signed the minutes of the April 1 meeting, thereby giving effect to the Council's decision to award the contract to E-Z-Go. Mississippi Code Annotated § 21-8-17(2) (Supp.1987); City of Oxford v. Inman, 405 So.2d 111 (Miss.1981). South Central Turf, 526 So.2d at 562-63. This Court finds that the final conveyance of the property to Worley Brown at the May 30, 2006, meeting, not the extensions of the option agreement, was the final, appealable decision of the City. 4. May 30 Meeting and Sale. ¶ 29. The appellants contend that the trial court erred by failing to determine that the sale of the Natchez Pecan Factory Site was arbitrary, capricious, illegal, and unsupported by the evidence. The appellants claim that the City conducted the sale of the property pursuant to an incorrect statute. Further, the appellants contend that the City failed to follow the requirements of the statute. Finally, the appellants argue that the sale was an unlawful donation by the City to Worley Brown. ¶ 30. This Court has set forth the standard of review as follows: We apply the same standard of review to the Board's legislative act as we apply in our review of administrative agency decisions. Barnes v. Bd. of Supervisors, DeSoto County, 553 So.2d 508, 511 (Miss.1989). Such decisions or orders are to be upheld unless the agency order was unsupported by substantial evidence; was arbitrary or capricious; was beyond the agency's scope or powers; or violated the constitutional or statutory rights of the aggrieved party. Bd. of Law Enforcement Officers Standards & Training v. Butler, 672 So.2d 1196, 1199 (Miss.1996). Falco Lime, Inc. v. Mayor & Aldermen of Vicksburg, 836 So.2d 711, 721 (Miss.2002). A. The Applicable Statute. ¶ 31. The appellants argue that the City improperly used Mississippi Code Annotated Section 57-7-1 to bypass the bid process in Mississippi Code Annotated Section 21-17-1. Mississippi Code Annotated Section 21-17-1(13) (Rev.2007) provides the following: The powers conferred by this section shall be in addition and supplemental to the powers conferred by any other law, and nothing contained in this section shall be construed to prohibit, or to prescribe conditions concerning, any practice or practices authorized under any other laws. (Emphasis added). Mississippi Code Annotated Section 57-7-1 (Rev.2003) provides: In the event that any municipality, county, supervisors district, municipal airport authority, regional airport authority or other governmental subdivision shall have surplus airport land or other lands which are not needed for airport purposes or for other governmental purposes, then such property so designated and described may be set aside and improved for industrial and commercial purposes and the same may thereafter be operated or the same may be leased or sold upon such terms and conditions as a municipality, county, municipal airport authority, regional airport authority or governmental subdivision shall prescribe. In order to provide for the improvement of such property for industrial and commercial purposes, the municipality or other authority shall be authorized to provide all necessary utilities therefor and to lay out, construct and/or improve and hard-surface roadways, streets, driveways and access roads, railroads and spur tracks, and provide for the grading, drainage, sewer, lights and water, and all other necessary or proper utilities as may be necessary or proper to make such land desirable or useful as a site or sites for industrial and commercial enterprises. The cost and expense of such improvements to said real estate shall be paid for from funds made available from the lease or sale of such lands to the extent such funds are available. ¶ 32. The provisions of Mississippi Code Annotated Section 21-17-1(13) clearly and unambiguously state that the powers conferred by Section 13 are in addition and supplemental to other laws and nothing contained in this section shall be construed to prohibit, or to prescribe conditions concerning, any practice or practices authorized under any other laws. [3] Therefore, the City had authority to proceed pursuant to Mississippi Code Annotated Section 57-7-1. B. The Statutory Language. ¶ 33. The appellants also contend that the City failed to apply the statute correctly. First, the appellants contend that the City failed to set aside and improve the land and thereafter sell the land. Secondly, the appellants contend that the statute requires the development to be for commercial use, not residential development of condominiums.
¶ 34. The appellants argue that the City failed to comply with Mississippi Code Annotated 57-7-1. Specifically, the appellants contend that the statute requires that the surplus lands must be set aside and improved for industrial and commercial purposes and thereafter be sold pursuant to the terms and conditions prescribed by the municipality. The statute provides, in part, that the property may be set aside and improved for industrial and commercial purposes and the same may thereafter be operated or the same may be leased or sold upon such terms and conditions as a municipality or governmental subdivision shall prescribe. See Miss.Code Ann. § 57-7-1 (Rev.2003). ¶ 35. The clear and unambiguous language of the statute does not mandate that the surplus land must be set aside and improved by the municipality. The language of the statute states that the municipality may set aside and improve the land for industrial and commercial purposes and the same may thereafter be operated or the same may be leased or sold upon such terms and conditions as prescribed by the municipality. Miss.Code Ann. § 57-7-1 (Rev.2003). Additionally, Mississippi Code Annotated Section 57-7-1 does not mandate that the property can be sold only after improvements are made by the municipality. The statute does not mandate that improvements must be made on surplus land, therefore, the sale of the land is not dependent on whether improvements have been made to the land prior to its conveyance. [4] The second paragraph of Section 57-7-1 provides that if improvements are made, then [t]he cost and expense of such improvements to said real estate shall be paid for from funds made available from the lease or sale of such lands to the extent such funds are available. Miss.Code Ann. § 57-7-1 (Rev. 2003). This language implies that the monies for the improvements would be available after a lease or sale is finalized unless there is an unusual arrangement for prepayment of all or a portion of the lease payments or sale of the property. Therefore, a municipality would begin the improvements after it received payments for the lease or sale. In addition, should a municipality make improvements before a lease or sale is finalized, then the municipality would place its funds at risk in the event that the lease or sale should fail to be consummated. [5] Accordingly, we find that this issue is without merit.
¶ 36. The appellants contend that the trial court erred by classifying the proposed development of condominiums as commercial property. The City argues that the property is not zoned as residential, industrial, or commercial property. The property is zoned as Waterfront Development District property, which is intended to be a mixed-use district of property. The City contends that the condominiums would be similar to resort condominiums in Gulf Shores, Alabama, and Destin, Florida. Furthermore, the City cites attorney general opinions concerning Mississippi Code Annotated Section 57-7-1 for authority. ¶ 37. While attorney general opinions are not binding on Mississippi courts, they can be persuasive authority for consideration by our courts. DuPree v. Carroll, 967 So.2d 27, 31 (Miss.2007). The City of Tupelo intended to develop a portion of the City with a master plan that call[ed] for the development of office buildings, townhouses, parks and innovative downtown uses. Op. Att'y Gen., Cofer (June 19, 1998). The opinion by the Attorney General's Office provided that Mississippi Code Annotated Section 57-7-1 permitted the disposal of surplus property for industrial and commercial purposes. Id. ¶ 38. The trial court did not err by finding that the proposed development of the condominiums was commercial in nature. This issue is without merit. C. Donation. ¶ 39. The appellants argue that the City effectively has donated the property to Worley Brown. The City proposed to sell the property to Worley Brown for $500,000, to make some improvements on the property, and to provide some tax incentives. This Court has not addressed this issue in prior rulings. The statutory language of Mississippi Code Annotated Section 57-7-1 does not address whether the proceeds from a lease or sale are for valuable consideration versus a donation. In contrast, Mississippi Code Annotated Section 21-17-1 provides, in part, that the lease or sale of property is awarded to the highest bidder or for a fair market price determined by an average of three appraisals. See Miss.Code Ann. 21-17-1(2)(a) and (b) (Rev.2007). However, Mississippi Code Annotated Section 57-7-1 is an economic development statute. Therefore, the objective of the City's sale or lease of surplus property may not be to receive the highest purchase price. In other words, the lease or sale may be tied to a vision for a city development plan. The City had a Riverfront Development Plan. In addition, numerous opinions by the Attorney General's Office have opined that a lease or sale should be for good and valuable consideration and not necessarily fair market value. See Op. Att'y Gen., O'Neal (September 1, 2006); Op. Att'y Gen., Wagner (March 31, 2006). The goal of economic development may be more than the immediate receipt of the highest bid or appraisal value offered for surplus property. Indeed, other factors impact economic development plans, such as increased tourism, creation of jobs, increased support industries, increased need for housing, and collection of property taxes. See Op. Att'y Gen., Wagner (March 31, 2006). Accordingly, the trial court did not err by finding that the price of the property accepted by the City was reasonable for the sale of the Natchez Pecan Factory Site. 5. Walkway. ¶ 40. On cross-appeal, the City contends that the trial court erred by finding that any restriction of access by the general public of the existing sidewalk and walkway was unreasonable. The City has devoted limited argument to this issue, and the appellants do not address the issue at all. Notwithstanding the limited argument by the City, the trial court did not err by prohibiting access to the sidewalk and walkways, as the option agreement provided for such access by the general public. Accordingly, this issue is without merit.