Summary 2011 WY 13

Summary of Decision February 1, 2011

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Case Name: Gronberg v. Teton County Housing Authority

Citation: 2011 WY 13

Docket Number: S 10 0018

URL: http://tinyurl.com/4wev8no

Appeal from the District Court of Teton County, The Honorable Nancy J. Guthrie, Judge

Representing Appellants (Plaintiffs): Peter F. Moyer, Jackson, Wyoming.

Representing Appellee (Defendant) Teton County Housing Authority: James L. Radda, Deputy County Attorney, Jackson, Wyoming.

Representing Appellees (Defendants) Mantey: Andrea L. Richard of Richard Law Firm, Jackson, Wyoming.

Date of Decision: February 1, 2011

Facts: Appellants sued the Appellees, claiming they violated Wyoming’s Public Meetings Act, improperly purchased land for investment purposes and incurred debt in violation of the Wyoming Constitution and Wyoming Statutes. The district court dismissed some claims under W.R.C.P. 12(b)(6) and granted summary judgment in favor of Appellee on other claims. Appellants appealed those rulings.

Issues: I. Whether Appellee could ratify a real estate sale over 9 months after an illegal meeting occurred approving the transaction and over 4 months after the actual closing, where Appellee acknowledged that the only vote at the meeting was taken during a secret executive session resulting in a “null and void” approval? II. Whether after the real estate closing occurred, is Appellee, as a public Wyoming agency, entitled to keep secret an 8 page transcript and tape recording of the illegal meeting, where it improperly approved the expenditure of $2.1 Million in public funds for the real estate purchase? III. Whether Appellee is entitled to pursue a “land banking” real estate investment program, not housing projects, where the applicable specific purpose excise tax (SPET) funding was approved by the voters for “affordable housing projects,” and Wyoming Statutes limit the use of SPET funds to the purposes approved by the voters, and where Wyoming Statutes strictly limit investments by public agencies? IV. Whether Appellee as a public Wyoming agency, is entitled to mortgage its properties and to pledge future tax receipts? V. Whether Appellants can present these issues in a declaratory judgment action?

Holdings: The Court found the purpose of Wyoming’s Public Meetings Act is to require open decision making, not to permanently condemn a decision or vote in violation of the Act, therefore holding that an agency may “cure” a “void” action made in violation of the Public Meetings Act by conducting a new and substantial reconsideration of the action in a manner which complies with the Act.

The Court found the factual issue remained as to whether Appellee purchased the property as an investment, or for direct use as part of an affordable housing and project and held that the district court improperly dismissed the Appellants’ claim demanding a record of the session.

The Court found that purchase of property for direct utilization in an affordable housing project was authorized by the SPET ballot, where purchase of property for indirect utilization was not authorized. The Court further found that Wyo. Stat. Ann. § 15-10-103(a)(viii) is unambiguous, and Appellee could only invest in property if that property was such that a savings bank could invest in it, holding that the district court erroneously dismissed this claim.

The Court also found that the district court incorrectly determined that Wyo. Stat. Ann. § 15-10-103 authorized the Appellee housing authority to purchase land for any purpose and to borrow funds for any purpose. That statute does not authorize borrowing. In addition, Wyo. Stat. Ann. § 15-10-108, provides specific limitations on when borrowing may occur and does not authorize borrowing to purchase property as an investment.

In regards to the constitutional debt limit issue, the Court observed that the Appellee housing authority was simply an agent of the county, and that the county is clearly subject to the debt limits of Wyoming Constitution Article 16, §§ 3, 4, and 5. However, the Court found that debt properly incurred under the Housing Projects Statutes, Wyo. Stat. Ann. § 15-10-101 et. seq., is not limited by Wyoming Constitution Article 16, §§ 3, 4, or 5. The district court’s dismissal of the Appellants’ constitutional claims was appropriate.

In summary, the Court affirmed the district court on the Public Meetings Act and Wyoming Constitutional issues, but reversed on the Rule 12(b)(6) dismissals of claims for improperly purchasing the land and financing the purchase. Affirmed in part, reversed in part and remanded to the district court for further proceedings consistent with the opinion.

District Judge Kautz delivered the opinion for the court.