Opinion ID: 1619439
Heading Depth: 1
Heading Rank: 4

Heading: public use or purpose

Text: [5] A taking for a use that is not public is unconstitutional and beyond the right of even the legislature to accomplish. Wisconsin Water Co. v. Winans, 85 Wis. 26, 54 N.W. 1003 (1893); Schumm v. Milwaukee County, 258 Wis. 256, 45 N.W.2d 673 (1951); David Jeffrey Co. v. Milwaukee, 267 Wis. 559, 66 N.W.2d 362 (1954); Cincinnati v. Vester, 281 U.S. 439, 50 S. Ct. 360, 74 L. Ed. 950 (1930). The owners argue that the following uncertainties and contingencies might prevent construction of the power plant and that it cannot now be said that the takings are for a valid public use: (a) Funds have not been obtained, nor is the specific source of the 1.5 billion dollars known; (b) Many of the permits required by the Atomic Energy Commission, Public Service Commission, Department of Natural Resources, and Department of Industry, Labor and Human Relations have not been applied for or issued; (c) Sufficient testing to apply for some permits has not been done; (d) Building plans have not been completed; (e) Environmental reports have not been completed; (f) Participation by other utilities has not been confirmed either as to construction cost or usage; (g) Public hearings are necessary; (h) The plans have been changed since the trial to cut the size by one-half; (i) The Board of Directors of NSP, Minnesota, have not made a final decision to go through with the plant construction. The owners' position is not without support in Wisconsin law, at least in some respects. They rely principally upon Wisconsin Water Co. v. Winans, 85 Wis. 26, 54 N.W. 1003 (1893); New Lisbon v. Harebo, 224 Wis. 66, 271 N.W. 659 (1937); and Schumm v. Milwaukee County, 258 Wis. 256, 45 N.W.2d 673 (1951). Winans involved the water company's attempt to condemn land for a pipeline running to the boundary of the city of Milwaukee, for the purpose of carrying water for sale to customers in Milwaukee from its springs in Waukesha. The taking was challenged on the ground, among others, that the company had not established that it had a legal right to conduct and distribute the water once it arrived in Milwaukee. This contention was upheld, the court concluding that under the circumstances no public use for the land appeared. [4] The New Lisbon Case involved condemnation by the municipality for purposes of constructing a dam, lake and park. The appellants claimed the petition for condemnation was defective in failing to allege that the Public Service Commission had made the findings needed for construction of the dam. The court rejected the municipality's argument that the Public Service Commission could not make the findings before all the land to be flooded was acquired, or at least flowage rights secured, and continued: . . . It is elementary that a municipal corporation may only exercise the power of eminent domain for some public purpose authorized by the statute or constitution. If condemnation of lands for a damsite and flowage were to be permitted prior to the issuance of a permit, which might conceivably never be issued, it is impossible for us to see how at the time of the condemnation proceedings the taking can be said to be for public purposes. The municipal corporation must be able to show at the time of its petition for condemnation that it has a right to construct a dam. 224 Wis. at 74. [5] Finally, the Schumm Case was an appeal from a judgment enjoining condemnation of land for the lakefront war memorial center in Milwaukee. The project was to be created by a nonprofit corporation established for this purpose. The county and the corporation executed what they called a contract to effectuate the plan. The court adopted the assumption, made by the trial court, that the requisite county board resolutions would be passed, and moved to a consideration of further issues. Citing Winans and New Lisbon, the court stated: The right to condemn is an attribute of sovereignty and is often indispensable for the common good but it is, nevertheless, so harsh a right that even the sovereign may not exercise it unless the public purpose is clear and the public use, for which the private owner is to be compelled to surrender his property, is assured. 258 Wis. at 261. The court stated that since the county did not itself intend to construct the project, but intended that the corporation do so, an enforceable contract to that end was required. The court then analyzed the contract, emphasizing the several escape clauses, and said: The matters which the present contract leaves open for the future agreement, or disagreement of the contracting parties are so many and so important to certainty that the public purpose will be fulfilled that from the standpoint of either the plaintiffs or the public it is less a contract than it is a prospectus . . . . Id. at 263. The court also found significant the uncertainty of acquiring additional funds and the need for the county and the corporation to agree upon plans and specifications not yet in existence before construction could go ahead. In conclusion, the court said: . . . If streets cannot be vacated, if money cannot be raised, if plans and specifications to be prepared in the future are not agreed upon, the county's only recourse is to abandon this undertaking. Meantime, if condemnation is permitted, private persons will have been ousted from their homes and business premises. It will not do. While such uncertainties lie between the proposed and the completed project we must say, as we said in the New Lisbon Case, supra (p. 74), `. . . it is impossible for us to see how at the time of the condemnation proceedings the taking can be said to be for public purposes.' Id. at 264-265. The owners draw from these cases the conclusion that a public use can only exist in this state when there are no contingencies that may prevent some or all of the land being sought from being put to public use. They do not argue that the various certificates and permits the Power Company will ultimately need are actually conditions precedent to condemnation. Indeed, sec. 196.49 (4), Stats., expressly provides that the Public Service Commission's certificate of authority is not a condition precedent to condemnation under ch. 32, Stats. The owners do argue that we must look at the question is it `conceivable,' `possible' that their lands might not be used. [6] We are of the opinion that the test advocated by the owners is too extreme to be sustained. There will always be some possibility that a planned improvement will not be completed and put to the use intended. The test cannot be whether it is possible, whether it is conceivable that the project would fail. The test must be whether there is a reasonable assurance that the intended use will come to pass. If there is reasonable probability that the public utility will comply with all applicable standards, will meet all requirements for the issuance of necessary permits, and will not otherwise fail or be unable to prosecute its undertaking to completion, there is a right of condemnation. Winans dealt with a problem quite different than the one in this case. The water company had not shown that it had or would obtain the right to distribute or sell the water once it got to Milwaukee. The analogue here would be if the Power Company had no right to sell power to the public, which clearly is not the case. It is certain that the output of the Tyrone Energy Park will be sold to the public, an undisputedly legitimate public use. Winans, New Lisbon and Schumm should be read to require reasonable assurance of public use. The uncertainties in these cases were so numerous and of such a substantial nature that no reasonable assurance existed. It is only if Northern States Power Company cannot reasonably expect to achieve its public purpose that its right to take land by condemnation should be denied. See Concerned Citizens, United, Inc. v. Kansas Power & Light Co., 215 Kan. 218, 523 P.2d 755, 769-771 (1974); State ex rel. Harlan v. Centralia Elec. Ry. & Power Co., 42 Wash. 632, 85 P. 344 (1906); Sellors v. Concord, 329 Mass. 259, 107 N.E.2d 784 (1952); Seadade Industries v. Florida Power & Light Co., 245 So.2d 209 (Fla. 1971). Turning to the evidence, the testimony does not show any significant doubt that funds can and will be raised. [6] The Company has already spent $11-$12 million on the project. Although there was a question whether the Company has formally committed funds to cover the full cost of construction there was no real evidence that the Company lacked the commitment to complete the project. [7] Francis J. Kripps, Vice President of Power Supply of Northern States Power Company, was examined at some length as to the various permits that would be required. He stated that application had been made to the Public Service Commission for a certificate of convenience and necessity and that as of May, 1974, a five-volume environmental report and a seven-volume preliminary safety analysis report had been submitted. Further reports and testing are necessary. The Commission had held a public hearing, but it had not as yet rendered a decision. These reports were also submitted to the Atomic Energy Commission. It was also brought out that permits were needed from DNR, from DILHR, and from other agencies as well, for some of which applications had not yet been made. Several public hearings must yet be held. Kripps was asked several times whether it was possible or conceivable that some of these permits would not be granted. He answered that it was possible, but we think there is a high probability all of them will be issued. He further testified that he knew no reason why all permits would not be granted. No evidence was adduced to suggest that any necessary permit would not be granted. The evidence amply supports the conclusion that a public use for the lands in question is reasonably assured.