Benjamin JONES et al., Plaintiffs, Appellants, v. James T. LYNN et al., Defendants, Appellees.
No. 73-1057.
United States Court of Appeals, First Circuit.
Decided March 22, 1973.
Heard March 5, 1973.
477 F.2d 885
Arthur G. Coffey, Asst. Gen. Counsel, Boston, Mass., with whom John C. Conley, Gen. Counsel, Boston, Mass., was on brief, for appellees, Boston Redevelopment Authority and others.
Frederic R. Kellogg, Asst. U. S. Atty., with whom James N. Gabriel, U. S. Atty., was on brief, for appellees, the Secretary of Dept. of Housing and Urban Development, and others.
John Paul Sullivan, Boston, Mass., with whom Lewis H. Weinstein, Boston, Mass., was on brief, for appellees, First Church of Christ Scientist.
Before COFFIN, Chief Judge, ALDRICH and CAMPBELL, Circuit Judges.
COFFIN, Chief Judge.
This appeal, expedited to accommodate all of the parties and interests involved, presents the issue whether a complex area renewal project covering a substantial sector of Boston, the Symphony Area part of the Fenway Urban Renewal Project, the basic planning and federal financial commitment for which had been approved in 1967, but which is yet substantially incomplete, is subject in any way to the requirements of the sub
Appellants, residents of the area, sought to enjoin further demolition and construction in the area until an environmental statement is issued in accordance with NEPA. Appellees are the Department of Housing and Urban Development (HUD), the source of federal financial assistance; the Boston Redevelopment Authority (BRA), the municipal agency in charge of the project; and the First Church of Christ, Scientist, a prominent occupant of the area and source of much of the planning.1 The district court denied injunctive relief, finding that “major federal action” terminated with the signing of the HUD-BRA Loan and Grant Contract in 1967, that HUD‘s continuing role was minor since it was powerless to alter future courses of action, and that NEPA was not intended to be applied retroactively.
I. Facts
Some appreciation of the past history and present status of the project is necessary to recognize the grey zone in which we endeavor to strike a just and practicable balance.
In the early 1960‘s the Church, desirous of establishing an International Center on its present location and of developing the adjacent Symphony Area, commissioned the preparation of a master plan which incorporated these ideas with others calling for residential and commercial development. The Church plan was submitted to BRA and included in BRA‘s larger proposed effort for development of the Fenway Area which was thereafter to consist of the Museum Area, Medical Center Area and the Symphony Area, all three sub-areas being of somewhat equal size and totalling 506 acres. Only questions relevant to the Symphony Area are before us. The entire Fenway Urban Renewal Plan, dated November 1, 1965, was approved by BRA on November 24, 1965; by the Boston City Council on December 20, 1965; by the Mayor of Boston on December 23, 1965; and by the Massachusetts Department of Commerce and Development on April 26, 1967 after the required public hearings. On December 22, 1967 HUD and BRA executed a Loan and Capital Grant Contract to provide federal assistance to this project pursuant to the
While the 1967 contract authorized BRA to sell project loan notes up to $14,488,759, a relocation grant of $719,804 and a capital grant of $8,651,134, these sums were subsequently increased. On August 28, 1968 an amendatory contract added a rehabilitation grant of $12,000. More relevant here were an authorized increase in the amount of interest to be paid on temporary loan notes to be sold by BRA, the result of a June 24, 1970 amendment to the original contract; and an increased relocation grant to $5,660,424 and an increased
A survey of the state of the real estate is more understandable than a financial analysis of monies unexpended. There are 27 parcels and sub-parcels in the part of the project which is before us. From the documents in evidence, we distill the following status, which we list for further reference in groups:
| Group | Number of Parcels | Present Status |
|---|---|---|
| I | 4 | —development wholly or nearly completed (Nos. 2, 11, 16A, 16B-1); no injunction sought as to these parcels. |
| II | 1 | —site cleared; developer tentatively selected; planned for residence for the elderly; no injunction sought as to parcel (No. 5). HUD will subject it to a modified environmental clearance procedure. |
| III | 3 | —site cleared; developers not selected for two parcels (Nos. 6, 16B-2); selected for the other (No. 3). As to this site HUD will submit it to a modified clearance procedure. No. 6 has no final planned purpose (except that it is to be part residential and part commercial); No. 16B-2 is planned for a park; No. 3 is planned for middle income housing with HUD financing. |
| IV | 5 | —sites where no demolition has yet occurred (Nos. 7, 9, 12, 13, 152). Nos. 7 and 15 are tentatively planned to be rehabilitated. Nos. 9, 12, and 13 are planned for low and middle income housing, with HUD financing for at least Nos. 9 and 13. |
| V | 14 | —no plans for acquisition or use (Nos. 1, 4, 8, 10, 14, 17, 18, 19, 19A, 19B, 20, 21, 22, 23). |
It is apparent that the parcels in groups IV and V and some or all of those in group III, a total of from 19 to 22 of the project‘s 27 parcels, fall in the early stages of planning. Nevertheless, the entire project has been in the planning stage for some seven years and has been subject to numerous hearings and deliberations at various levels.
II. General Applicability of NEPA to Previously Planned Projects.
It is against this factual background that we endeavor to assess whether NEPA, enacted subsequent to the basic Loan and Capital Grant Contract, can be the source of any present obligation. We do not start with tabula rasa. The slate has been written on for some years. The question is whether there is at this time any requirement for a NEPA environmental statement—not the unrestricted analysis that might otherwise be expected if the project had not yet been launched, but a statement taking as a given those things which have been done in reliance on a preexisting plan.
We dispose without difficulty of appellees’ contention that Congress intended to exempt from the application of NEPA pertinent projects simply because they had been previously decided upon. An environmental disturbance is no less consequential because of the date of its planning. If appellees are correct, the federal government is in a position
Such a broad proposition finds no support in the statutes, regulations, legislative history or considerations of policy. While Congress could have specifically exempted approved but uncompleted projects from the requirements of NEPA, it did not do so. Neither did it make NEPA specifically applicable to such projects. But it did refer to the “continuing responsibility” of the federal government to “use all practical means . . . to improve and coordinate Federal plans, functions, programs and resources“,
Moreover, the legislative history is supportive of an environmental role for a federal agency so long as it remains meaningfully involved in a project. The Senate Report on the act states that the “[e]nvironmental management functions” required by
Finally, sound public policy requires rejection of appellees’ proposed rule that NEPA is per se inapplicable to projects already underway as of the passage of the act. Among the goals of NEPA is the “preservation and enhancement of the environment“,
III. Applicability of NEPA in this Case.
The first, and basic question, is what are proper limits; what, in other words, can be regarded as prospective, and what not, but must fairly be regarded as vested. The purpose of
The district court‘s treatment of these questions was inadequate. We are all agreed that it adopted too narrow a focus in concluding that the execution of the contract in 1968 ended all possibility of future “major federal actions“. It should have made detailed findings as to the control possible for HUD to exercise under the contract and as to the nature of federal project aid yet to come. It should also have supported with some analysis its conclusion that the two amendments to the contract since the advent of NEPA were not “major federal actions“.
To take the latter point first, we know too little about the eight-fold increase in the relocation grant and the one-third increase in the loan authorization, to dismiss them, in the words of the court in San Francisco Tomorrow v. Romney, 472 F.2d 1021 (9th Cir. 1973), as “but confirmation of the Federal Government‘s earlier decision that the project proposal conformed to HUD requirements and was therefore eligible for a grant and loan.” The availability of eight times as much money for relocation as had been anticipated is understandably asserted to have had environmental repercussions as to the phasing of the plan and the sociological mix of the neighborhood in that a quicker-than-planned eviction of larger numbers of area citizens is substantially altering the community balance. The large increase in the loan authorization is suggestive of an expanded undertaking.
In addition we are unable to assess the contractual rights of HUD, in terms of its present agreement, to affect the performance of the other contracting parties. We would be reluctant not to find a continuing major federal involvement so long as it was established that HUD retained any significant discretionary powers as might permit it to effect an alteration of building or design plans to enhance the urban living environment.
Perhaps the most important area of inquiry, from a realistic point of view, is what future federal participation can reasonably be anticipated. Appellants claim the presence of further contemplated federal action here which goes far beyond that in San Francisco Tomorrow. HUD has recently approved the applications for federal mortgage insurance for two buildings and has stipulated to the preparation of a modified impact statement as to these two parcels. It is maintained that applications for federal mortgage insurance are pending for two other planned edifices, and at oral argument BRA represented that virtually every new building will be the subject of similar applications. It does not appear that the district court considered the relevance of these contentions which, if true, would seem to call for a comprehensive study of the uncompleted aspects of the entire project as being most consistent with the object of evaluating the “cumulatively significant impact” of the anticipated federal role. 36 Fed.Reg., supra at 7725. And one initial comprehensive study, which could be referred to and supplemented by less comprehensive individual studies for each parcel, would appear to reflect a better use of
If the district court is to properly carry out the NEPA mandate, it must, if the planning reveals an expectation of substantial further federal assistance, order HUD to conduct an environmental study of the entire Fenway program under
At the same time, the majority of the court3 does not recognize that future projects, if any, that contemplate no future federal assistance are obliged to come to a halt just because of the receipt of such prior to Congress’ enactment of NEPA. The majority would distinguish the cases cited in the separate opinion. Indeed, the majority feels that F.H.A. v. The Darlington, Inc., 358 U.S. 84, 79 S.Ct. 141, 3 L.Ed.2d 132 (1958), has been substantially miscited.
IV. Futility of a NEPA Statement.
Apart from the legal issue of NEPA‘s application, appellees claim that, even if the post-1970 amendments were major federal actions, if significant powers are reserved, or if major future federal participation is reasonably expected, any environmental study performed at this late date would not justify any additional delay. They point to the lengthy history of planning and public meetings and discount the representations of appellants as to the need for consideration of population density, traffic problems, mix of low, middle, and high income housing, and time phasing of the individual projects as constituting merely an effort to seek review of urban renewal issues already fully aired.
It may prove to be the case that an environmental review of so much of the project as may be subject to feasible alteration will yield few suggestions. But we hesitate to prejudge. The fact is that the planning focus had not had the environmental emphasis that NEPA has brought to the fore. Moreover, changes in the area, unforeseen in 1965 or 1967, have transpired, such as the alleged abandonment of plans for a major adjacent expressway. Were we to pass judgment on the possibilities for alteration in the Symphony Area segment of the Fenway plan mentioned by appellants as being irrelevant, trivial, or prohibitively expensive, we would be short
V. Laches.
Appellees contend that NEPA was passed in 1970, that the Fenway Urban Renewal Project has been ongoing since 1967, and that we should therefore refuse to entertain appellants’ request for injunctive relief at this late date. We see, however, important reasons for rejecting this defense of laches. First, appellants have alleged, without contradiction, that many aspects of the project which trouble them environmentally have only recently been discovered as there are claimed deviations from the original proposal. Second, one of appellants’ major concerns is the increased relocation grant in August 1972, a federal action conceivably affecting various aspects of the entire project. Third, one of the main reasons why laches is recognized as a defense—the assumed prejudice to the party sought to be enjoined, see Environmental Defense Fund v. T. V. A., supra at 1182, cannot be said to exist here. As our prior discussion indicated, NEPA applies only so far as there exist reasonable alternatives to as-yet uncompleted parts of the project. The guidelines we will subsequently enunciate are intended to safeguard appellees from any prejudice which might otherwise result from the timing of this suit. Last, and most fundamental, however, is the observation of Chief Judge Friendly that the “tardiness of the parties in raising the issue cannot excuse compliance with NEPA; primary responsibility under the Act rests with the agency.” City of New York, supra, 337 F.Supp. at 160. See also Arlington Coalition, supra, 458 F.2d at 1329-1330; Environmental Defense Fund v. T. V. A., supra at 1182. We see no reason for not following this rationale here.
VI. Relief.
The task of accommodating the requirements of NEPA to this large and diverse project, where the stages of development of the various parcels range from completion to the absence of any detailed planning, requires imagination and flexibility on the part of HUD, BRA, other agencies and parties involved, and on the part of the court. In an effort to avoid heavy handed or unduly costly interference with those involved in the execution of the project, we set forth the following guidance.
1. The district court shall reexamine, make detailed factual findings, and set forth its conclusions of law on the following questions:
a. Were the post-1970 amendments, regarding the increase in relocation assistance and loan authorization, major federal actions?
b. To what extent, if any, do HUD‘s reserved powers under the basic contract involve the exercise of discretion in such a way as to enable it to alter in any significant way the course or timing of development?
c. Was there explicitly or by necessary implication a reasonable expectation of further major federal financial participation in order to bring the Symphony Area of the Fenway Project to completion?
2. If the answers to all three questions are negative, the prayer for injunctive relief should be denied and the project allowed to proceed.
3. If an affirmative answer is forthcoming to any of the three questions,
a. Existing reports and studies should, where relevant, be utilized. While the old ground need not be plowed again, changes since 1967 affecting the area should obviously be taken into account.
b. The study shall not only be more limited in scope than would be the case if the basic agreement had not been signed and work begun, but it shall be foreshortened in time. Subject to the right of HUD to approach the district court to seek either a shorter or longer period, we think that HUD should be given 90 days to complete a draft environmental statement and that the statement be given, if possible, accelerated review. We note that HUD may request such accelerated review from the Council on Environmental Quality. 36 Fed.Reg., supra at 7726.
4. While all work on the Symphony Area of the Fenway Project shall be immediately enjoined, we authorize the district court, pending its decision on the merits, to release the injunction in the following instances:
a. As to those parcels where completion is near or where such binding commitments to a specific structure and purpose have been made such that changes in purpose, structure, or timing would work substantial injustice or public harm, the burden being on the defendants.
b. As to parcels where there is a showing that there is no continuing or likely federal involvement.
5. We continue the temporary stay of construction subject to further determination by the district court as to any individual situations which may call for modification of the stay order. Such decisions, as well as the district court‘s final order, will be appealable.
COFFIN, Chief Judge (concurring).
As stated in note 3, supra, I would go further than the majority. Even if it were to be concluded, with sufficient support, that the post-1970 amendments to the contract did not amount to “major federal action“, that HUD possessed no significant retained powers under the contract,1 and that future significant federal participation in the project was not reasonably anticipated, I would hold that the Symphony Area of the Fenway Project should be subjected to a restricted environmental review.
In City of Boston v. Volpe, 464 F.2d 254, 258 (1st Cir. 1972), we said that a project had not yet become sufficiently federalized so as to make the action of the local agency become federal action for purposes of NEPA because there existed no firm federal commitment of funds. It would therefore be anomalous to say that action on a project which has become federalized by such commitment ceases to be major federal action for purposes of NEPA upon that very com-
To assign such a label to this relationship does not settle the nature or extent of the parties’ obligations. More precise analysis must be undertaken. Since, were it not for the participation of a non-federal partner, the obligation of HUD would be clear,3 the real question is whether the BRA and those working on the Fenway Project can now be subjected to a duty of restraint during a review process which they did not foresee in 1967.
In urging a narrow construction of NEPA and the concept of partnership here, appellees contend that the
Appellees also allege, however, that whatever relevance the concept of part
have sweeping application and which cannot be said to confer any primary benefits on the United States as a contract party, cf. Perry v. United States, 294 U.S. 330, 55 S.Ct. 432, 79 L.Ed. 912 (1935), compliance with these new laws is a necessary appurtenance to the partnership status of the nonfederal contracting party, whenever the partnership may have commenced.
One of the major legislative ends sought to be achieved by NEPA—the improvement of the “regulatory system” administered by each agency by requiring consideration of environmental factors at all stages of decision-making in federally assisted programs so as to preserve and improve the environment—is so important that “[t]hose who do business in the regulated field cannot object if the legislative scheme is buttressed by subsequent amendments to achieve the legislative end.” F.H.A. v. The Darlington, Inc., 358 U.S. 84, 91, 79 S.Ct. 141, 146 (1958). In that case the Court considered the application of a 1954 amendment to a 1946 housing act under which the federal government had contracted, in 1949, to provide mortgage insurance for an apartment house.7 In finding that the new law, as applied to the old contract, was merely operating prospec-
I also find unpersuasive HUD‘s confession of an absence of power to effectuate any suggestions for change resulting from its NEPA study or other remedial avenues open to it. In the event that it interprets its specific contractual authority too narrowly to enable it to cope with the situation, it is possible that HUD or others who seek to vindicate the goals of NEPA will have available sufficient remedies, if and when the need arises, which may be found in the nature of the legislative scheme, Textile Workers v. Lincoln Mills, 353 U.S. 448, 457, 77 S.Ct. 912, 1 L.Ed.2d 972 (1957), here perhaps in the area of environmental law, see Illinois v. City of Milwaukee, 406 U.S. 91, 93, 92 S.Ct. 1385, 31 L.Ed.2d 712 (1972), or in the area of federal housing legislation, see, e. g., Shannon v. HUD, supra, 436 F.2d at 822, or even as related to the obviously pervasive contracting power of the United States, see, e. g., United States v. Carson, 372 F.2d 429 (6th Cir. 1967), and United States v. Stadium Apartments, Inc., 425 F.2d 358 (9th Cir. 1970).
In the NEPA context, for example, a problem might arise where a federal-nonfederal partnership was engaged in a ten year construction project requiring an initial NEPA statement and periodic updates. If, in the eighth year, a study showed that an uncompleted portion would be environmentally unwise and that it should not be built, it is inconceivable that just because federal money had changed hands years ago, the United States would be without any remedy should its nonfederal partner resist alterations.
I would therefore have preferred to direct that an injunction issue, subject to “escape hatch” clause 4a of the section entitled “Relief“, without the findings required by the majority.