407 S.W.3d 635
Mo. Ct. App.2013Background
- TIF Act authorizes redevelopment plans in blighted areas to generate new sales tax revenue.
- City created two TIF districts (1996 and 2005) with County participation; County representatives served on the TIF Commission.
- City pledged TIF funds and issued bonds to finance district projects (Wal-Mart, Lowe’s, roads).
- County continued to receive increased sales tax revenues from TIFs and allocated half to County and half to City until 2009 pause.
- After TIFs, County voters adopted an E-911 tax; up to 2010 the TIF districts generated nearly $1 million in E-911 revenue not allocated to City.
- Trial court granted summary judgment that TIFs were valid and E-911 tax was subject to TIF allocation; County and Board appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the TIF districts are void ab initio due to delay. | County argues 1996/2005 TIFs invalid;/ | City contends districts valid; County waited to challenge. | La ches/estoppel bars challenge; districts valid. |
| Whether laches/estoppel apply between public bodies. | County asserts laches/estoppel do not apply between government entities. | Court should apply laches/estoppel given prolonged conduct and reliance. | Laches/estoppel apply between public bodies; claims barred. |
| Whether E-911 tax is subject to TIF allocation. | E-911 revenues not allocated to City; tax not subject to TIF. | Quiktrip/Lohman create exception; E-911 revenues fall within TIF allocations. | E-911 tax is subject to TIF allocation; not excluded under 99.845. |
| Whether the 1996/2005 TIF districts met statutory requirements at time amendments were considered. | County argues amendments/facts not properly raised; void ab initio. | Amendments consistent with TIF Act; City acted within law. | Court did not reach due to laches/estoppel; districts upheld. |
Key Cases Cited
- State ex rel. Village of Bel-Ridge v. Lohman, 966 S.W.2d 356 (Mo.App.1998) (tIf districts generating revenues create exemptions/allocations in accordance with TIF Act)
- QuikTrip Corp. v. County of Jefferson, 912 S.W.2d 487 (Mo. banc 1995) (establishes TIF allocation framework and exceptions)
- State ex rel. York v. Daugherty, 969 S.W.2d 226 (Mo. banc 1998) (estoppel principles applying to void judgments and actions)
- Troll v. City of St. Louis, 168 S.W. 167 (Mo. 1914) (laches as delay that harms others; ties to estoppel)
- Green v. Lebanon R-III Sch. Dist., 13 S.W.3d 278 (Mo. banc 2000) (concurring views supporting restraint on unwarranted claims)
- UAW-CIO Local No. 31 Credit Union v. Royal Insurance Co., 594 S.W.2d 276 (Mo. banc 1980) (laches and estoppel interplay in Missouri law)