346 So.3d 406
Miss.2022Background
- In Feb. 2010 the Long Beach Port Commission (later merged into the City) leased two parcels to Blue Ridge/Long Beach Harbor Resort (Parcel A north of Highway 90 for the casino building; Parcel B south of Highway 90 as a parking lot/restaurant). The lease permitted restaurant/parking uses in support of a gaming establishment but prohibited actual gaming south of Highway 90.
- In May 2011 the Secretary of State (as trustee of the Public Trust Tidelands) and the City executed a Boundary Agreement and a Tidelands Lease that: (1) identified tidelands within the harbor including part of Parcel B; (2) authorized the City to use the tidelands for development uses (including dining and parking) and to lease them, and (3) expressly recognized preexisting City leases, including the 2010 Resort Lease.
- The Resort later entered an Option Agreement with the Secretary of State (2017) to negotiate a direct tidelands lease; the option expired in 2018 and no separate tidelands lease was executed.
- The Resort obtained Mississippi Gaming Commission site approval (2019) and used the parking lot on the tidelands to satisfy proximity requirements for its onshore gaming area.
- The Resort sued (2019) for a declaratory judgment that it need not obtain a separate tidelands lease from the Secretary of State. The chancery court granted summary judgment to the Resort on the ground that the City/Port had authority to lease the property and that the Secretary of State’s 2011 Tidelands Lease ratified the prior Resort Lease. The State appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Must Resort obtain a separate tidelands lease from the Secretary of State, or does the City lease suffice? | Resort: City/Port lease already covers the property; the State ratified that lease in the 2011 Tidelands Lease so no separate State lease required. | State: City lacked authority to lease public trust tidelands; State/Secretary as trustee must approve direct tidelands leases. | Held: Court affirmed that the Secretary of State ratified the preexisting Resort Lease via the Boundary Agreement/Tidelands Lease, so the Resort has a valid leasehold. |
| Is the disputed parcel part of the Public Trust Tidelands? | Resort: argued it was not (cited statutes/legislation). | State: asserted the parcel is public trust tidelands and requires State approval. | Held: Discovery established the land is tidelands, but ratification of the Resort Lease by the State rendered the need for a separate lease moot. |
| Does Mississippi Gaming Commission site approval eliminate need for Secretary of State approval? | Resort: gaming-site approval satisfied regulatory requirements and obviated separate State approval. | State: Gaming approval does not displace the Secretary of State’s trustee authority over tidelands. | Held: Court did not base decision on the Gaming Commission argument; it relied on ratification. The trial court had denied the Resort’s motion on this point. |
| Does the Secretary’s alleged lack of express approval for the Resort’s sublease render the Resort Lease void? | Resort: The Tidelands Lease expressly acknowledged the Resort Lease and authorized partial assignments; the State’s acceptance ratified the Resort’s rights. | State: No express State approval was given to the Resort, so the City’s lease cannot convey valid tidelands rights to the Resort. | Held: Tidelands Lease expressly recognized preexisting leases (including the Resort Lease) and allowed partial assignments; the Secretary’s actions amounted to ratification. |
Key Cases Cited
- Phillips Petroleum Co. v. Mississippi, 484 U.S. 469 (U.S. 1988) (states own lands under tidal waters upon entry to the Union)
- RW Dev., LLC v. Miss. Gaming Comm’n, 307 So. 3d 404 (Miss. 2020) (discussing purpose and operation of the Public Trust Tidelands Act)
- Sec’y of State v. Wiesenberg, 633 So. 2d 983 (Miss. 1994) (Tidelands Act constitutionality; Secretary mapping tidelands)
- Columbia Land Dev., LLC v. Sec’y of State, 868 So. 2d 1006 (Miss. 2004) (recognizing Secretary of State as trustee for public lands/tidelands)
- Bayview Land, Ltd. v. State ex rel. Clark, 950 So. 2d 966 (Miss. 2006) (tidelands may be alienated only by statutory authority and consistent with public trust)
- Northlake Dev. LLC v. BankPlus, 60 So. 3d 792 (Miss. 2011) (definition and legal effect of ratification)