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Olon v. COM., DEPT. OF CORRECTIONS
626 A.2d 533
Pa.
1993
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*1 Here, sufficient incidents ownership. Authority pur- R.R.M., chased all of transferred, the stock of the land was and all of the officers R.R.M. resigned and were replaced by Authority officials. March the Authority From had control of the of the Landfill. The operation only interest prior stockholders R.R.M. maintained was the right repurchase the if it was property determined that the Authori- ty could not successfully expand and use the land for the stated operating Thus, the Landfill. it is clear that present owner of the property Authority, is and that there no was reservation of beneficial interest that was potentially Further, in Owen present J. Roberts. the fact that the landfill was operated through the R.R.M. corporate vehicle did not alter R.R.M., the fact that the Authority controlled land, owned the operated the site. such,

As we find that no to deny there basis the Authority immunity local taxes for case.6 Order Reversed.

626 A.2d 533 Olon, Mary Richard OLON and Jennifer a/k/a Olon, wife, Appellees, Jennifer his Pennsylvania, COMMONWEALTH of OF DEPARTMENT Pennsylvania, CORRECTIONS Department Services, Appellants. of General

Supreme Pennsylvania. Court of

Argued May 1993.

Decided June 1993. Reargument July Dеnied immune, 6. Since we have found the entire to be we do not exemption have to reach the issues. *2 Knorr, III, Foerster, Attys. Deputy John G. T. Jerome Gen., appellants. ‍​​​​​‌​‌‌‌​​‌​‌‌‌​‌‌‌​​​​‌‌​​​​‌‌‌‌​​‌‌‌​‌​‌​‌‌‌‍Meadville, Millin, for appel- K. Jeffrey R. Irwin and

James lees. ZAPPALA, FLAHERTY, NIX, C.J., LARSEN,

Before MONTEMURO, PAPADAKOS, JJ. CAPPY THE OF COURT OPINION FLAHERTY, Justice. for review of actions

Neighboring petitioned landowners a former of Corrections to renovate Department state prison in violation site for as a state college use demurred, аn act of alleging that department ordinances. The project. The authorized the Court held that the bill appropriations ordinances, did not inferentially negate local overruled the demurrer. interlоcutory appeal allowance, we hold that the statutorily superseded ordinance, and reverse the order of the. Commonwealth Court.

On December the General Assembly enacted the 1990-91, Capitаl Budget Project Itemization Act for Act 1990, effective which immediately, authorized the incurrence of $8,876,000 of debt for “[acquisition and renovation of former Polish National College Alliance for use as a State 22,1990, Correctional Institution.” On December the Depart- $2,500,000. ment Corrections acquired property for departments corrections and general services under- took the renovation and conversion of the to serve as a prison. County The Crawford facility located partially *3 Borough Cambridge Springs, district, the in a residential partially in the Township Cambridge, in an educational and institutional district. municipality’s Neither zoning оrdi- nance the permits property to be used aas correctional institution.

Neighboring property petition owners filed a for review the Commonwealth a complaint Court the nature of equity, seeking permanent injunction against the conversion college and use of the a prison, former as alleging that such use would violate the local The depart- ordinances. ments of general correctiоns and services filed preliminary demurrer, objections the nature contending by the of the college site for conversion and as use prison, any overrode local zoning and land use controls. The court рreliminary objec- ‍​​​​​‌​‌‌‌​​‌​‌‌‌​‌‌‌​​​​‌‌​​​​‌‌‌‌​​‌‌‌​‌​‌​‌‌‌‍overruled the tions entered an order that the stating decision involved controlling “a question law as to which there is substantial ground for difference of an opinion, and appeal immediаte from this order may materially advance the ultimate termi- matter,” nation of this 702(b), § as in 42 prescribed Pa.C.S. and this court permitted interlocutory appeal pursuant Pa.R.A.P. 1311. decision, discussed the Commonwealth Court reaching its Area Ogontz General Services v. holding Dep’t (1984), concluding Ass’n, 614, 483 A.2d 448

Neighbors that the to infer a “refused that this court powers, land use agency preemptive Commonwealth statement explicit legislative indicаted that thereby Common- Olon v. zoning powers.” negate required Corrections, 606 A.2d wealth, 147 Pa.Cmwlth. Dep’t of (1992). noth- Court found 1241, 1242-43 Commonwealth legislation “which states in the ing by preempted are regulations administering constructing prisоns. charged with conferring preemp- automatically us from only not prohibits agency but also a Commonwealth powers upon tive use land powers by inference.” attributing rejects at 1243. Id. at 606 A.2d Harrisburg v. relied on

Insteаd, the Court 543 A.2d Corp., 117 Pa.Cmwlth. Capitol Housing (1988). case, Pennsylvania Education Higher In that (PHEAA) granted legislative had been Agency Assistance name of the and hold title in the “acquire House, including the known as the Towne to the ... and to make such Annex leased thereto acquisi- finance such may necessary as arrangements amended, 24 P.S. P.L. as August tions.” Act (Act 130). 5104(12), § PHEAA attempted When of the redevel- the Towne House in violation and use property, plan governing opment use, grant that “Act 130 did not prohibited holding such *4 regulation” the local land use supersede PHEAA the to more, legislation agency a state authorizing and that “without local land use con- inferentially negate does not the Corrections, 26, 147 Pa.Cmwlth. at 606 v. Dep’t trols.” Olon A.2d at Ogontz correctly thus understood

The Commonwealth Court municipal specific intent to override require will be deemed powers agency before Commonwealth zoning ‍​​​​​‌​‌‌‌​​‌​‌‌‌​‌‌‌​​​​‌‌​​​​‌‌‌‌​​‌‌‌​‌​‌​‌‌‌‍nevertheless, such an land use preemptive powers; to possess 94 is in evident the legislation underlying this case.

Capitol Housing Corp. on case relied the cases urged appеllees, e.g. City Pitts- Commonwealth, burgh (1976), A.2d do not, however, justify the result reached in the Commonwealth Court. legislation involved empowering department (DPW)

public welfare acquire relocating patients formerly at housеd Pennhurst State Hospital, School and facility, mental health depart- and the ment purchased twelve sites Philadelphia. When the Com- agency sought monwealth to construct a new facility at one of sites, city zoning authority permission denied due to the proposed failure to facility’s comply with the local zoning ordinance. This court was presented with the question wheth- er the Mental Health and Retardation Act of Act of amended, October Special Sess. No. P.L. 96 as § P.S. 4101 et seq., plan, DPW supervise, operate, acquire property for mental health and retarda- tion facilities at state, various locations throughout the or Act 256 of allocating funds to develop DPW to a regional program to patients relocate from Pennhurst State School and Hospital, created DPW to override local land use restrictions. We concluded general grant that the of authority acquire land did not imply a legislative intent that the agency given was powers, subject jurisdiction was to the respect stated, board with to local use rеstrictions. We how- course, ever: “Of should the determine that one or more Commonwealth projects empow- should be ered to local land use regulations, it need only pass legislation to that effeсt.” Ogontz, 505 at Pa. 483 A.2d at 455. This think we did in this case. legislation

This distinguishable the cases discussed supra respect: here the General Assembly specified both to be acquired and the of the property. None the other cases involved this combi- they natiоn factors: either authorized an

95 Ogontz, supra, specific purpose, e.g. a unspecified property Commonwealth, autho- supra, they v. Pittsburgh City of unspecified for an specific property an aсquire rized In supra. Housing Corp., e.g. Capitol purpose, College proper- Alliance Polish National acquisition of the institution, the as a state correctional be used specifically toty local intent to override expressed an Assembly clearly General of property. such use prohibited which zoning ordinances must therefore The of the Commonwealth Court order reversed. reversed.

Order LARSEN, J., dissenting files opinion. a Justice, ‍​​​​​‌​‌‌‌​​‌​‌‌‌​‌‌‌​​​​‌‌​​​​‌‌‌‌​​‌‌‌​‌​‌​‌‌‌‍LARSEN, dissenting. because the General majority

I The holds that dissent. National of the Polish Assembly acquisition authorized specifically to be as state College property Alliance used Budget Projеct Itemiza- Capital institution in the correction (“Act 223”), Assemble for 1990-1991 the General tion Act local an intent to override the ordi- clearly expressed The could reach its decision only way majority nancеs. intent. Commonwealth today by inferring legislative of Services v. Pennsylvania, Department General Association, 483 A.2d Neighbors Area (1984), legislative refused to infer a intent that this court powers. correctly I held that the think or оverride the necessary preempt clear Cambridge Springs Borough ordinances in Act 223. cannot be found Township Cambridge 3(l)(ii) merely provides appropriation Act 223 Section College the Alliance authorization to general prison. granting convert to a it parcel of “does not clothe [an right domain or the with of eminent agency] regulations”. Harrisburg City local land use Capital Housing Corporation, Pa.Cоmmw. 543 A.2d (1988). *6 In Ogontz, supra, majority a of this stated: court course, legislature Of should the determine that one or more or projects empowered should local regulations, it need only pass legislation to that effect.

Id., Pa. at 483 A.2d at 455. his concurring opinion, Justice noted: Zappala acts,

Through zoning enabling Legislature has granted municipalities power su- carefully plan and pervise comprehensive of their land. Yet development specific grant would be highly illusory, and its thwarted, if another wеre public entity able I by implication. override it would hold simply absent legislative grant a exempting zoning regulations, local must regulations control. J., 505 Pa. at

Ogontz, A.2d at (Zappala, concur- McDermott, JJ., ring, joining) origi- Larsen and in (emphasis nal).

If the nullify intended to or negate any local controls, or other land use any they easily could have provided including specific such intent language relat- subject ‍​​​​​‌​‌‌‌​​‌​‌‌‌​‌‌‌​​​​‌‌​​​​‌‌‌‌​​‌‌‌​‌​‌​‌‌‌‍ing matter Act nothing 223. Therе is in the Act which states that regulations are preempted by by the agencies charged with constructing administering and prisons.

Merely providing appropriation for an location for use as a state or fаcility provide institution does not specific legislative nullify regulations intent to local zoning would, effect, accept ordinances. To majority’s decision overrule and would allow the Commonwealth and thе Assembly General to override local merely appropri- ating money specific purpose. clearly for a This is not what this Court intended nor fit Ogontz; seen Ogontz. to “overrule” of the Commonwealth

Therefore, the decision I would affirm Court.

626 A.2d 537 BLUM, minor, by parents natural his Jeffrey BLUM, guardians, and Joan and Fred Joan Appellants, Blum, right, own Fred their INC., PHARMACEUTICALS, MERRELL DOW Pharmacy, Appellees. Rite-Aid *7 Pennsylvania. Supreme Court of Argued 1992. Jan.

Decided June

Case Details

Case Name: Olon v. COM., DEPT. OF CORRECTIONS
Court Name: Supreme Court of Pennsylvania
Date Published: Jun 1, 1993
Citation: 626 A.2d 533
Court Abbreviation: Pa.
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