Friends of the Parks v. Chicago Park District
2016 WL 427565, 160 F. Supp. 3d 1060, 2016 U.S. Dist. LEXIS 13187 (2016)
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Rule of Law:
A long-term lease of public trust land to a private entity, even without an outright transfer of fee simple title, can constitute an unlawful relinquishment of state control and violate the public trust doctrine and due process if it lacks sufficiently specific legislative authorization and primarily benefits a private interest over the public good.
Facts:
- Plaintiff Friends of the Parks is a nonprofit park advocacy organization dedicated to preserving Chicago’s parks, and Plaintiffs Sylvia Mann and John Buenz are residents of Illinois.
- Defendant Chicago Park District is a body politic and corporate, and Defendant City of Chicago is a body politic and municipal corporation.
- In May 2014, a task force recommended parking lots south of Soldier Field as the site for the Lucas Museum of Narrative Art (LMNA), a nonprofit corporation dedicated to exhibiting narrative art.
- On September 8, 2014, the Chicago Park District entered into a memorandum of understanding (MOU) with LMNA regarding the construction, use, and operation of the museum.
- On April 23, 2015, the Illinois General Assembly amended the Park District Aquarium and Museum Act to authorize park districts to permit corporations to erect and operate museums within public parks, including those on formerly submerged land, under conditions of public access and a reversionary interest.
- On October 14, 2015, the Park District and LMNA entered into a Ground Lease for a term of 99 years (with two 99-year renewal options) to construct and operate the Museum on land south of Soldier Field, which is located within Burnham Park and consists entirely of land recovered from Lake Michigan.
- The Ground Lease stipulates that LMNA assumes full and sole responsibility for the proposed building and has exclusive control over its construction, maintenance, operation, repair, and management, and that the museum building itself 'shall be owned by Lucas Museum of Narrative Art' for the term of the lease, with the property interest conveyed for ten dollars.
- On October 28, 2015, the City Council approved a zoning amendment for the Project Area.
Procedural Posture:
- On November 13, 2014, Plaintiffs Friends of the Parks, Sylvia Mann, and John Buenz initiated this action in the United States District Court for the Northern District of Illinois, seeking to enjoin Defendants Chicago Park District and City of Chicago from proceeding with the construction of a museum.
- Defendants filed a Motion to Dismiss the Complaint.
- On March 12, 2015, the District Court denied in part and granted in part Defendants' Motion to Dismiss.
- Following an amendment to state legislation and a new agreement between the Park District and LMNA, Plaintiffs filed a First Amended Complaint (FAC), asserting federal claims under § 1983 for due process and unlawful taking (Count I), and state-law claims for ultra vires actions (Count II) and public trust violation (Count III).
- Defendants moved to dismiss the First Amended Complaint under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim.
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Issue:
Does a long-term lease of public trust land by a park district to a private entity for the construction and operation of a museum, even with a general legislative amendment to the Museum Act, plausibly violate the Fourteenth Amendment's Due Process Clause, exceed the park district's authority (ultra vires), or breach the public trust doctrine, thereby preventing dismissal of the plaintiffs' claims?
Opinions:
Majority - John W. Darrah
No, the defendants’ motion to dismiss the plaintiffs’ First Amended Complaint is denied because the plaintiffs have plausibly stated claims that the long-term lease of public trust land for the Lucas Museum of Narrative Art violates their due process rights, exceeds the Park District's authority, and breaches the public trust doctrine. Regarding the Due Process claim (Count I), the court affirmed that Illinois taxpayers have a constitutionally protected property interest in public trust property. Plaintiffs sufficiently alleged a deprivation without due process by claiming the General Assembly’s amended Museum Act did not provide specific approval for the alienation, forfeiture, or disposition of the specific land subject to the lease. The court must accept these allegations as true for purposes of a motion to dismiss, thus allowing the procedural due-process claim under the Fourteenth Amendment to proceed. For the Ultra Vires claim (Count II), the court found that plaintiffs plausibly stated that the Park District acted beyond its legal authority by entering into the lease without specific authorization from the General Assembly. While the legislature can delegate authority for execution, it cannot delegate its general legislative power to determine what the law shall be, especially concerning public trust land. The court noted that the amended Museum Act’s general language did not explicitly refer to the alienation or disposition of the subject land, raising a question as to its sufficiency for transferring control of public trust land to a private entity. The defendants' argument that specific authorization would violate the special legislation clause of the Illinois Constitution was not found compelling, as similar public trust transfers have been upheld without raising this clause as a bar. Concerning the Public Trust claim (Count III), the court emphasized that the State of Illinois holds title to submerged land in trust for the people and cannot abdicate control over such property for private use without promoting public interest and without substantially impairing the public interest in remaining lands and waters. The court distinguished the 99-year Ground Lease, which grants LMNA ownership of the museum building and exclusive control, from a mere permit as in Friends of Parks v. Chicago Park Dist. (the Soldier Field case). It cited precedent indicating that a long-term lease can convey a substantial interest in real property, effectively surrendering control. The court rejected the argument that the public trust doctrine is only implicated by a complete conveyance of title, pointing to Illinois Central Railroad Co., which spoke of relinquishing 'control.' Plaintiffs plausibly alleged that the lease effectively surrenders control of the Museum Site and primarily benefits the LMNA’s private and/or commercial interests, rather than the public, thus warranting further examination under the public trust doctrine. The court reiterated that it must be critical of attempts to surrender valuable public resources to private entities and prevent legislative decisions from merely 'rubber stamping' alleged public gains.
Analysis:
This case reinforces the rigorous scrutiny applied to governmental transfers or long-term leases of public trust land, particularly formerly submerged lands. It clarifies that even a lease, if it effectively surrenders control and allows private ownership of improvements for an extended period, can be treated as an impermissible abdication of the public trust, rather than a permissible use. The ruling emphasizes the need for highly specific legislative authorization for any disposition of public trust property, signaling judicial reluctance to 'rubber stamp' general legislative grants that might circumvent public trust protections. Future cases involving public-private partnerships on public lands will likely face increased challenges if legislative approval is not explicit and the public benefit is not overwhelmingly clear.
