Millennium Park Joint Venture, LLC v. Houlihan
241 Ill. 2d 281
| Ill. | 2010Background
- Millennium Park Joint Venture entered a 20-year concession agreement with the Chicago Park District to operate food concessions in Millennium Park, with potential extensions up to 30 years.
- Exempt status of Millennium Park and the Park District forbids taxation of the land itself, but allows taxation on a lessee's leasehold interest under 35 ILCS 200/9-195 when a lease exists.
- The agreement divided the property into two portions: the “premises” (building and tunnel) and the “concession area,” with multiple defined operating components and shared control.
- The contract imposed extensive Park District control over operations, approvals, staffing, branding, pricing, and enforcement, and contained a disclaimer claiming an independent-contractor relationship.
- Assessor issued a 2004 tax assessment of the plaintiff’s interest; plaintiff challenged the assessment as unauthorized by law; county circuit court initially granted partial relief and the appellate court affirmed the license-not-lease conclusion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the circuit court had subject matter jurisdiction over an unauthorized-by-law claim | Millennium Park argues the circuit court may adjudicate unauthorized-by-law challenges | Houlihan/Pappas contend jurisdiction lies under statutory remedies | Circuit court had jurisdiction |
| Whether the Park District agreement created a license or a lease governing taxability | Agreement is a license, not a lease, hence nonassessable and non taxable | Agreement constitutes a lease, subject to taxation under 9-195 | Agreement creates an untaxable license (not a lease) |
Key Cases Cited
- Jackson Park Yacht Club v. Department of Local Government Affairs, 93 Ill.App.3d 542 (1981) (permits/licenses do not create assessable leaseholds)
- Clarendon Associates v. Korzen, 56 Ill.2d 101 (1973) (exhaustion of administrative remedies; unauthorized-by-law exception cited)
- North Pier Terminal Co. v. Tully, 62 Ill.2d 540 (1976) (remedies and equitable relief in tax disputes)
- Owens-Illinois Glass Co. v. McKibbin, 385 Ill. 245 (1943) ( Owens-Illinois exception to general exhaustion rule in tax cases)
- County of Knox ex rel. Masterson v. The Highlands, L.L.C., 188 Ill.2d 546 (1999) (unauthorized-by-law analogy; agency jurisdiction vs. court jurisdiction)