Opinion ID: 1604162
Heading Depth: 1
Heading Rank: 4

Heading: did the city prove a public use for thomas' property?

Text: The City contends that the taking of Thomas' property was an effort to further revitalize the City's Urban Renewal Area by the development of a land based riverboat gaming enterprise. The City bases its contention on numerous grounds. The City asserts that the benefits achieved by the contract with Harrah's include increased employment of the citizenry, attraction of tourists, upgrading City facilities by $500,000 received under the contract, over $15 million added to City tax rolls, and $60,000 for the construction of a park in the Urban Renewal Area. The City argues that a public use can legitimately be served by involving private enterprise in the execution of public programs. Pearl River Valley Water Supply v. Brown, 248 Miss. 4, 156 So.2d 572 (1963); Paulk v. Housing Authority, 195 So.2d 488 (Miss. 1967); and Berman v. Parker, 348 U.S. 26, 75 S.Ct. 98, 99 L.Ed. 27 (1954). Through the contract with Harrah's, the City contends that it contracted and negotiated for a redeveloped waterfront which will aesthetically and economically be of public benefit. Thomas contends that his property was not being taken for a public use. He asserts that under the contract, Harrah's could leave the property as is or use the property for any private enterprise allowed under the City's zoning ordinances, as may he. As such, Thomas contends that Harrah's is the primary beneficiary of the taking and his use is not sufficiently subordinate to the public use as to be incidental to it. Therefore, the taking is unlawful. Swann Lake v. United States of America, 381 F.2d 238 (5th Cir.1967); Morely, 632 So.2d at 1284. The trial court's finding of no public use is supported by the evidence. First, the trial court apparently reasoned that if the property acquisition was part of an urban renewal project, the City was bound to follow the statute with regard to competitive bids. Because it did not, it follows that urban renewal was not the purpose of the acquisition. The contract provision relinquishing Thomas' property to Harrah's without further competitive bidding is in violation of Mississippi Code Annotated § 43-35-19(b) (1972). Although the City argues that competitive bids are required starting at $456,500, the contract clearly provides that fee simple ownership will be transferred to Harrah's without additional compensation. In addition, Rogers testified that to his knowledge the City failed to offer any additional support of its contention that bids are required. Thus, the contract violates the competitive bidding requirement. We have clearly held that there must be a primary and public purpose for a taking. Paulk, 195 So.2d at 488. We have also held that the purported purpose must be direct. An indirect and speculative purpose is insufficient. Morely, 632 So.2d at 1284. In Berman, Paulk, and Brown, all cases relied on by the City, the subject property was relinquished to private parties subject to conditions to insure that the proposed public use will continue to be served. Although the City cites a list of alleged public benefits from Harrah's gaming enterprise, it has failed to show how the public will directly benefit from the use of Thomas' land. Unlike Berman, Paulk, and Brown, the City failed to provide conditions, restrictions, or covenants in its contract with Harrah's to ensure that the property will be used for the purpose of gaming enterprise or other related establishments. In fact, testimony indicates that Harrah's may do anything it wishes with Thomas' property, limited solely by a thirty year reversionary interest in the City. The facts of this case support the trial court's conclusion that Harrah's is the primary beneficiary of the taking of Thomas' land. Because the use of Thomas' land will be at the whim of Harrah's, the private use of Thomas' property by Harrah's will be paramount, not incidental, to the public use and any public benefit from the taking will be speculative at best. The trial court had sufficient basis to dismiss the City's condemnation petition. The judgment of the trial court is affirmed. AFFIRMED. HAWKINS, C.J., DAN M. LEE and PRATHER, P.JJ., and SULLIVAN, PITTMAN, McRAE, JAMES L. ROBERTS, Jr. and SMITH, JJ., concur.