Judge hears city’s motion to dismiss lawsuit over old depot

Published 12:11 am Friday, February 19, 2016

NATCHEZ — A hearing concerning a lawsuit filed by a resident against the City of Natchez over its plans for the former railroad depot on the bluff came before a judge Thursday, but no decision was made.

Sixth District Circuit Court Judge Forrest Johnson took under advisement the city’s motion to dismiss the case, in which local property owner Gwendolyn Ball alleges the city did not properly surplus the former Mississippi River Valley Railroad Depot building on Broadway Street before entering into a lease on the property.

City Attorney Hyde Carby said the Natchez Board of Aldermen voted on Sept. 8 to sign a letter of intent to work with the Mississippi River Visitor Depot LLC.

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New Orleans hotelier Warren Reuther owns the LLC and intends to turn the historic train station into a small visitor information provider, which may include a small shop or refreshment stand.

On Nov. 12, the aldermen signed a development lease agreement, which is a short-term lease designed to allow Reuther to renovate the property before a 15-year lease is signed.

Another contractor is renovating the exterior of the building using state grant funds obtained by the city,

Mayor Butch Brown said at the Nov. 12 meeting that the short-term lease would allow Reuther to begin renovating the inside at the same time, moving the project along more quickly.

The terms of the 15-year agreement would be dependent on how much Reuther spent in renovating the interior, along with other factors, Carby said.

The aldermen were split in the Nov. 12 vote, with Ward 1 Alderwoman Joyce Arceneaux-Mathis, Ward 2 Alderman Rickey Gray and Ward 4 Alderman Tony Fields voting in favor. Ward 3 Alderwoman Sarah Carter Smith, Ward 5 Alderman Mark Fortenbery, and Ward 6 Alderman Dan Dillard voted against. Mayor Butch Brown broke the tie, voting in favor.

On Dec. 4, Gwendolyn Ball and her attorney, Christina Daugherty, filed an appeal of the city’s Nov. 12 action, saying it was illegal for the city to enter into the lease because the property had not been properly declared surplus.

Carby said Thursday the Sept. 8 letter included a clause that declared the property surplus under Mississippi statute 57-7-1.

The city made a motion to dismiss the plaintiff’s appeal of the city’s action, because the lawsuit was not filed within the deadline required by law. Appeals of this kind must be filed within 10 days after the meeting in which the city took the action, Carby said.

“We contend the court doesn’t have jurisdiction to consider her other arguments,” Carby said. “(The appeal) is just late, under the statute.”

The city also argued Ball had no standing to sue, because the decision did not affect her more than any other citizen.

Daugherty said the time limit does not apply because the city’s action was illegal.

“There is case law that says the court has the ability to challenge those decisions without a statue of limitations,” Daugherty said. “An illegal action is reviewable at any time.”

Daugherty described the depot renovations as an ongoing issue, rather than a single action, because a future long-term lease is expected.

“If we wait until (the 15-year lease) is signed, it’s way too late for citizens of Adams County. They wouldn’t be able to undo what has already been done.”

The aldermen who voted Nov. 12 to go forward with the deal did not understand what was being done, Daugherty said.

Ball had standing to appeal the decision, Daugherty said, because Ball has property in the downtown area, and her property values are affected by the city’s actions concerning the depot.

Judge Johnson asked Carby whether the city would consider putting the matter to another vote, in order to clarify whether the board’s decision was truly informed.

“The city would consider any recommendation of the court,” Carby said. “Only a voting member can reopen the question, and presumably (the) vote would be the same.”

Johnson said he would take the matter under advisement for no more than 30 days, and that it was a very serious issue that required timely action.

“I think there’s some issues about an anticipated formal lease at some point,” Johnson said. “If it’s decided that it is too late (to appeal) this decision, you have more opportunities.”