# Opposition Brief — People for Responsible Omaha Urban Development v. Army Corps of Engineers

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Opposition Brief
- **Published:** January 1, 1990
- **Citation:** 495 U.S. 957

## Text

»uprems Court, U,
In The RIVED

Supreme Court of the United StfatesPR 26 1999

October Term, 1989 JOSEPH F. SPANIOL,
e a CLERK

PEOPLE FOR RESPONSIBLE OMAHA URBAN
DEVELOPMENT (PROUD),

)
state oY
Petitioner

ARMY CORPS OF ENGINEERS, NATIONAL PARK
SERVICE, INTERSTATE COMMERCE COMMISSION
CONAGRA, INC., OMAHA DEVELOPMENT FOUNDA
TION, CITY OF OMAHA, COUNTY OF DOUGLAS

»> ———_—
~

On Writ Of Certiorari To The United States
Court Of Appeals For The Eighth Circuit

— _—— —-—&— — ——— - -

NON-FEDERAL RESPONDENTS’ BRIEF IN OPPOSI-
TION TO PETITION FOR WRIT OF CERTIORARI

QUenene ¢ —---—--
JouHN E. Norrn”® Henry L. W
*Counseil of Record MicHiagen W. Am
Ropert G. DaILey Omaha/ Douglas Civic Center
McGratH, Norru, M \ 1819 Farnam Street
& Kratz, P.C Omaha, Nebraska 68183
Suite 1100
One Central Park Plaza
222 South Fifteenth Street M VR. A
Omaha, Nebraska 68102 FRANK |
(402) 341-3071 \BRAHAMS, Ka
. 8712 W. Dodge Rd
forneys for ‘
Omaha, Nebrask 8114
CHaries K. Bus
Omaha/ Douglas Civic Center
1819 Farnam Street, Ste. 804
Omaha, Nebraska 68183
ney r City of O |
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arn me

al shat aan”? Valen LL aa. & A

QUESTIONS PRESENTED FOR REVIEW

1. Whether Petitioner’s cause of action is moot.

2. Whether the decision cf the District Judge sitting
as a finder of fact was so clearly wrong that the decision
may be overturned by appellate standards of review.

3. Whether any of the reasons set forth in Rule 10 of
the Supreme Court of the United States are present to
warrant a review of this case.

ii

TABLE OF CONTENTS

Page
Questions Presented For Review................... i
Puen OE FO oe eo sing va 55 sh 2s tase iv
RUE pou sabe ne sh sae sec tekne deen creep eee 1
eeeeenee OF Tee Ge... 2. on cnt cedanaedeeneeee l
RY OE ONE oi sino ev owes een ee pee 6
PIE oo nc cnvetenbcktiss eae eee 7

Cores ee

ili

APPENDIX

Description

Order and Memorandum and
Order Denying Motion For Tem-
porary Restraining Order and
Preliminary Injunction

Magistrate’s Findings & Recom-
mendations

District Court’s Memorandum
on Plaintiffs’ and Intervenor’s
Objections to the Magistrate’s
Findings of Law and Fact and
Their Motion to Reject Part of
the Magistrate’s Recommenda-
tions

Omaha Development Founda-
tion’s Motion and Memoran-
dum to Dissolve the Injunction
Dated March 1, 1989, or to Re-
quire the Plaintiffs and Inter-
venor to Post a Sufficient Surety
Bond

Date

4/13/88

1/20/89

2/14/89

3/28/89

Page

App. 1

App. 17

App. 115

App. 133

iv

TABLE OF AUTHORITIES
Page
Cases CITED

Bereny v. District Director, Immigration and Naturaliza-
tion Service, 385 U.S. 630, 87 S. Ct. 666 (1967) ....10, 25

Biderman v. Morton, 497 F.2d 1141 (2nd Cir. 1974)

KUM EAL Va Oh GSS COGN NER Meare ge hone eee oan ae 12, 16, 17
Brockington v. Rhodes, 396 U.S. 41, 90 S. Ct. 206

ae rer re. eyo eRe eae ry Pe 7
Bywater Neighborhood Association v. Tricarico, 879

eo eM Re Oren Pare eer aee yer re 8
Chick v. Hills, 528 F.2d 445 (1st Cir. 1971)........... 18

Citizens for Responsible Area Growth v. Adams, 680
eo ey as PPR C eRe eT eT eee 18

Crounse Corp. v. I.C.C., 791 F.2d 1176 (6th Cir. 1986) .... 20
Edwards v. First Bank of Dundee, 534 F.2d 1242 (7th

RE re Pee POE CT ee Tere er 20
Foundation on Economic Trends v. Heckler, 756 F.2d

ae eR ee ee err ee 12, 16
Graver, Inc. & Manufacturing Co. v. Linde Air Prod-

ucts Co., 336 U.S. 271, 69 S. Ct. 535 (1949)..... 10, 25
Hall v. Beals, 396 U.S. 45, 90 S. Ct. 200 (1969)....... 7
Houston Oil Co. of Texas v. Goodrich, 245 U.S. 440,

Pe i le, ER A he veeva bee hvaieeeces see es 10, 25
Layne & Bowler Corporation v. Western Well Works,

inc., 261 US. 367, 43 S. Ct. 422 925)... ........ 24
Marsh v. Oregon Natural Resources Council, 109 S.

CRs Cee MN ew Gerda lsh s ee ese bs eRe ee mes
Maryland Conservation Council v. Gilchrist, 808 F.2d

ee Bo Ree re ne ey ll, 16

ee

TABLE OF AUTHORITIES - Continued

Page
Missouri Coalition For The Environment v. Corps of
Engineers, 866 F.2d 1025 (8th Cir. 1989)............ 21
Morris County Trust for Historic Preservation v.
Pierce, 714 F.2d 271 (3rd Cir. 1983)......... 11, 14, 15
N.A.A.C.P. v. Medical Center, Inc., 584 F.2d 618 (3d
Le Rl RR rah or 19
Natural Resources Defense Council, Inc. v. U.S. Envi-
ronmental Protection Agency, 822 F.2d 104 (D.C.
Js BGR et is ioe ZS ah i aa 21
North Carolina v. Rice, 404 U.S. 244, 92 S. Ct. 402,
ge ER Ag | Sag pa ee 7
Rice v. Stoux City Memorial Park Cemetery, Inc., 349
Me a Me 2) 24
Ringsred v. City of Duluth, 828 F.2d 1305 (8th Cir.
UES ence rr nea s wee dase e ese ee 4k oes osu .13, 20
Robertson v. Methow Valley Citizens Council, 109 S.
a ee er ee 22, 23
Save Our Wetlands, Inc. v. Sands, 711 F.2d 634 (5th
8 ae er a ee a 19
Save the Bay, Inc. v. United States Corps of Engineers,
610 F.2d 322, cert. denied, 449 U.S. 900, 101 S.Ct.
ie ER I oo 6 6 hs om evn edeneweeccvecces Pn
Sierra Club v. Hodel, 848 F.2d 1068 (10th Cir. 1988)
ket VRE eae CARPET Ree Eee Se eke s KS's acne 8s ca, 32, 20

Southern Power Co. v. North Carolina Public Service
Co., 263 U.S. 508, 44 S. Ct. 164 (1924)....... 10, 2

J!

vi

TABLE OF AUTHORITIES - Continued
Pa

Sylvester v. U.S. Army Corps of Engineers, 884 F.2d
394 (Sth Cig. PORRPp. cee eevee essa. sess tm te

United States v. Johnston, 268 U.S. 220, 45S. Ct. 496
(1925) . . .. .:..«-0:0%/e pare ie aera Col os ag 10

Vieux Carre Property Owners, Residents and Associ-
ates, Inc. v. Brown, 875 F.2d 453 (5th Cir. 1989) ..8

WATCH v. Harris, 603 F.2d 310 (2nd Cir. 1979) ...12,

Winnebago Tribe of Nebraska v. Ray, 620 F.2d 269
(8th Cir, 19GRR.

16 U.S.C. § 470f
42 U.S.C. § 4332

RULES

Rule 10 of U.S. Supreme Court ............... 6, 11

ge

21

oe

19
15

ie.

—*

OPINIONS

Respondents accept the Opinions attached to Peti-
tioner’s Petition for Writ of Certiorari and contained in
the Appendix attached thereto. Respondents also attach
as an Appendix to this brief the Magistrate’s Findings &
Recommendations dated January 20, 1989, the District
Court’s Memorandum dated February 14, 1989, and the
District Court’s Order and Memorandum denying Mo-
tions for Temporary Restraining Order and Preliminary
Injunction dated April 13, 1988 (See Appendix attached
hereto).

sé.
—

STATEMENT OF THE CASE

This case involved a six block warehouse district
located in a 113-acre redevelopment project (the “Re-
development Project”) located between the Missouri Riv-
er and the center of downtown Omaha. The broad area
from 10th Street on the west to the river on the east, and
Douglas Street on the north to Jackson Street on the
south, contain the project and its related environment.
Going east to west one finds the following: the Missouri
River, a federally controlled navigable river; the City’s
levee for flood control; the Union Pacific-Burlington
Northern Railroad tracks; a large area of vacant and
undeveloped land, part of which is owned by Douglas
County and held for park purposes; and the former site
of Jobber’s Canyon located in a six-block area from 8th to
10th Streets and from Farnam to Jackson Streets.

The buildings in Jobber’s Canyon, which were the
subject of this litigation, originally consisted of 21 build-
ings, all of which have been demolished.

In January of 1988, the City of Omaha generated a
Riverfront Redevelopment Plan which set forth the pro-
posed redevelopment of separate parts of the area de-
fined above. The plan envisioned the cooperative efforts
of Douglas County, City of Omaha, Omaha Development
Foundation (“ODF”) and ConAgra in constructing a $280
million redevelopment project in downtown Omaha. The
plan formed the basis for the Redevelopment Agreement,
which represents the guidelines for the implementation
of the Redevelopment Project. The Redevelopment Agree-
ment defines the cooperative obligations of ConAgra, the
City, the County, ODF and the Peter Kiewit Foundation
with respect to the implementation of the Redevelopment
Plan and concept. It is clear from the Redevelopment Plan
and the Redevelopment Agreement that the Redevelop-
ment Project was a local and cooperative undertaking.

In the Redevelopment Agreement, each party re-
tained its independence to develop its separate project in
a manner consistent with its legal obligations, prior com-
mitments, and responsibility to its constituents. Nowhere
in the Redevelopment Agreement does it set forth a need
for or intent to obtain any federal funding or licensing.
(Petitioner’s Appendix, pp. 3-4). In fact, the parties to the
Redevelopment Agreement testified that the Redevelop-
ment Agreement did not call for, nor did it contemplate,
federal involvement of any kind. (Petitioner’s Appendix,
pp. 3-4). The Redevelopment Agreement is the vehicle by

tate

which the downtown redevelopment concept was accom-
plished by local political subdivisions, non-profit
charitable corporations and private companies without
any federal involvement or aid.

One of the projects carried out for the development
was the demolition of 21 buildings located in Jobber’s
Canyon. The land in Jobbers Canyon was cleared and
now contains a series of recently constructed buildings,
owned and operated by ConAgra as its home offices.

Though the Redevelopment Agreement and Re-
development Project did not call for nor require any
federal funding or aid or permits of any kind (Petitioner’s
Appendix, pp. 3-4), Petitioner has attempted to prove
federal involvement in connection with a flood wall lo-
cated four blocks from Jobbers Canyon, a spur railroad
track located one or two blocks from Jobbers Canyon and
a county park, at the closest point across the street from
Jobbers Canyon.

For instance, Petitioner attempted to show that a
permit was needed from the United States Army Corps of
Engineers since the Redevelopment Project contemplated
that the City would reroute some of its own sewers.
According to Petitioner’s argument, since these sewers
eventually lead to connections running under the levee
originally built by the Corps of Engineers, a permit
would be required from the Corps of Engineers before the
City could reroute its own sewers. The court below af-
firmed findings of fact that the Corps of Engineers had no
approval authority with respect to these sewers. (Peti-
tioner’s Appendix, pp. 28-31; 85-86; 115).

hearers

The Redevelopment Project also contemplated the
relocation of some railroad side track to make room for
additional development. Petitioner claimed that the re-
routing of this railroad track would require approva
from the Interstate Commerce Commission. The court
below affirmed that the trial court’s finding of fact that
the “side hill lead” two blocks from Jobbers Canyon was
an “industrial” track which could be relocated withou
ICC approval, and it was. (Petitioner’s Appendix, pp. 26
81; 83; 115).

Finally, Petitioner claims that the National Park Ser
vice was involved since Douglas County’s park land wa:
originally acquired partially with National Park Servic:
money, and the park land had been converted and the
contract for federal funds had been violated, among othe:
things. The courts below affirmed findings of fact agains
Petitioner on all the issues relating to the park, whicl
would require National Park Service approval for devel
opment and use of the park. (Petitioner’s Appendix, pp
31-68; 95-105; 115; Appendix attached hereto, pp. 78-112
125-132).

Petitioner sought to enjoin demolition of warehouse
in Jobbers Canyon. However, all Petitioner’s claims an
evidence related to places outside of Jobbers Canyon - ,
railroad “industrial” track; a city levee and seawall; and |
county park. Petitioner sought to prove that changes i
those areas under the Redevelopment Project in Omah
would trigger federal involvement and the requirement
for federal control. However, even with respect to th
places outside of Jobbers Canyon that Petitioner sough
to establish federal control, Petitioner failed in its proo:
The magistrate found, and the District Judge and Circui

—

*

Court affirmed the findings of fact that relocation of the
“industrial” railroad track was not subject to I.C.C. ap-
proval (Petitioner’s Appendix, pp. 26; 81; 83; 115); that
the incidental changes in the City sewer system were not
subject to Corps of Engineers’ approval (Petitioner’s Ap-
pendix, pp. 28-31; 85-86; 115); and that the development
and completion of the County Park as projected was not
subject to National Park Service approval. (Petitioner’s
Appendix, pp. 54; 115). On the basis of these findings,
Petitioner has failed to lay a factual basis to present any
legal issue to this Court, to say nothing of a legal issue
creating a conflict between circuits or a conflict with
decisions of this Court.

The profound “off-site impact issue” which Petitioner
evidently seeks to raise does not exist in this case. There
cannot be an off-site impact of federal inaction unless
there is an on-site right for the federal government to act.
The findings below are that the federal government had
no control over the local action taken with respect to the
railroad track, the sewers and the park.

Oblivious to the foregoing, Petitioner seeks to argue
before this Court the off-site impact of the federal control,
found not to exist, of the railroad track, the sewers and
the park on the warehouses in Jobbers Canyon. Factually,
the impact is none. Legally, it could hardly be more than
that.

The National Historic Preservation Act, 16 U.S.C.
§ 470f (“NHPA”) and the National Environmental Protec-
tion Act, 42 U.S.C. § 4332 (“NEPA”) require consultation
procedures and an environmental review only in the case

of a federally assisted undertaking (NHPA) or major fed-
eral action (NEPA), where the action may affect historic
properties. Petitioner has pointed to nonexistent federal
involvements as being federally assisted undertakings or
federal actions implicating the NHPA and NEPA, despite
the fact that there is no federally assisted undertaking or
major federal action in connection with the activities car-
ried out pursuant to the Redevelopment Agreement;
there is no federally assisted undertaking or major feder-
al action which in any way affects Jobber’s Canyon; and
there is no federally assisted undertaking or major feder-
al action, which, if enjoined, could prevent ODF from
demolishing Jobber’s Canyon (which has long since oc-
curred).

Petitioner twice requested the District Court to im-
pose a preliminary injunction enjoining Omaha Develop-
ment Foundation from demolishing Jobber’s Canyon. On
both occasions, the District Court denied this request
(Appendix attached hereto, pp. 1-16; Petitioner’s Appen-
dix, pp. 106-107).

i.
_

SUMMARY OF ARGUMENT

1. This proceeding is moot because there is no longer
any case or controversy.

nN

Petitioner has failed to show any facts indicating that
the Redevelopment Project was a federally-assisted
undertaking or major federal action implicating the
NHPA or NEPA.

3. This proceeding is not proper for certiorari under
U.S. Supreme Court Rule 10.

,%
vr

ARGUMENT
I.
MOOTNESS.

This action was instituted by Petitioner to enjoin the
demolition of warehouse buildings located in a six block
area in Omaha, Nebraska. The buildings have been total-
ly demolished. As Petitioner referring to the warehouse
buildings so aptly puts it: “Now nothing remains.” Peti-
tion for Writ, p. 20. This case is moot.

This Court has uniformly refused to assume jurisdic-
tion when a case is moot because no case or controversy
exists under Article III of the United States Constitution.
North Carolina v. Rice, 404 U.S. 244, 92S. Ct. 402, 404, 30 L.
Ed. 2d 413 (1971); Hall v. Beals, 396 U.S. 45, 90 S. Ct. 200
(1969); Brockington v. Rhodes, 396 U.S. 41, 90 S. Ct. 206
(1969).

The warehouse area which Petitioner sought to
“save” has been completely demolished, replatted, re-
graded, redesigned and reconstructed into an office park
consisting of five office buildings. No vestige, historical
or otherwise, remains where the demolished warehouses
once stood. Petitioner’s action for an injunction to re-
strain demolition of the warehouses is moot.!

1 In two comprehensive decisions, the Magistrate found
no evidentiary support for Petitioner’s factual claims (Peti-
tioner’s App., pp. 1-73; Appendix attached hereto, pp. 17-114).
On four occasions the District Judge found the same (Peti-
tioner’s Appendix, pp. 74-105; 106-107; Appendix attached
hereto, pp. 1-16; 115-132). Similarly the Court of Appeals found

(Continued on following page)

(Continued from previous page)

the same (Per Curiam Opinion of Eighth Circuit Court, Peti-
tioner’s Appendix, pp. 112-15). Upon representations of coun-
sel for Petitioner, including the National Trust for Historic
Preservation, that they did not have funds for a bond, the
Eighth Circuit Court granted a limited injunction without re-
quiring Petitioner to put up a bond. (Order of Eighth Circuit
Court, Petitioner’s Appendix, pp. 108-109). Shortly after the
Eighth Circuit Court’s attention was directed to the fact that
the National Trust had uncommitted assets in the amount of
$18,000,000 (Omaha Development Foundation’s Motion and
Memorandum to Dissolve the Injunction Dated March 1, 1989,
or to Require the Plaintiffs and Intervenor to Post a Sufficient
Surety Bond, filed March 30, 1989, see Appendix attached
hereto, p. 133), the injunction was dissolved (Order of Eighth
Circuit Court, Petitioner’s Appendix, pp. 110-111). Although
there have been at least seven different determinations that
Petitioner’s cause of action below was without merit, Peti-
tioner continues to harass Respondents. When the time to
request certiorari from this Court was about to expire, counsel
for The National Trust for Historic Preservation requested an
extension of time to file its petition for certiorari. After The
National Trust filed and received its Request for Extension, it,
declined to file a Petition for Certiorari (though PROUD did
file its Petition). Counsel for Petitioner are well aware G-avci-
sions indicating that only federal agencies are subject to NHPA
and not defendants like the City of Omaha, Douglas County,
The Omaha Development Foundation and ConAgra. Vieux Car-
re Property Owners, Residents and Associates, Inc. v. Brown, 875
F.2d 453 (Sth Cir. 1989); Bywater Neighborhood Association v.
Tricarico, 879 F.2d 165 (5th Cir. 1989). However, The National
Trust, by requesting the extension to file, and PROUD, by filing
the present Petition, continue to harass defendants and waste
local taxpayers’ (Omaha and Douglas County) funds by need-

lessly prolonging litigation which is not only frivolous, but
moot.

Il.

PETITIONER FAILED TO CARRY ITS BURDEN
OF PROOF BEFORE THE DISTRICT COURT.

As the decisions of the United States Magistrate and
District Court indicate, Petitioner failed to show any facts
indicating that the Redevelopment Project was a federally
assisted undertaking or major federal action implicating
the NHPA or NEPA.

Before Petitioner could have shown that the demoli-
tion of Jobbers Canyon was a federally-assisted undertak-
ing or major federal action implicating the NHPA or
NEPA, Petitioner would have had to establish factually
that the demolition of Jobbers Canyon was under the
control of a federal agency because it was accomplished
with federal funding or would have required, prior to
demolition, some federal authorization, permit or license.
The District Court correctly found there was no showing
of any kind on the part of Petitioner that ODF was
assisted in the demolition of Jobbers Canyon by federal
funds or that ODF had to obtain some sort of federal
authorization, permit or license to demolish Jobbers Can-
yon.?

2 Petitioner has made several statements regarding agency
control over the Redevelopment Project which Respondents
perceive to be misstatements of law and fact. In its Petition,
Petitioner claims that: (1) the federal agencies involved had
approval power over the Redevelopment Project (Petition for
Writ, p. i); (2) the abandonment of the Side Hill Lead and
shared line agreement were subject to ICC approval (Petition
for Writ, p. 12); (3) changes in the park design were subject to
National Park Service approval (Petition for Writ, pp. 12-13);

(Continued on following page)

10

This factual determination by the District Court was
upheld by the Eighth Circuit which said that none of the
factual determinations made the District Court were
clearly erroneous. This Court has long held that it does
not grant certiorari to review evidence and discuss spe-
cific facts. United States v. Johnston, 268 U.S. 220, 227, 45 S.
Ct. 496, 497 (1925). See also, Houston Oil Co. of Texas v.
Goodrich, 245 U.S. 440, 38 S. Ct. 140 (1918); Southern Power
Co. v. North Carolina Public Service Co., 263 U.S. 508, 44 S.
Ct. 164 (1924). Where the District Court and Circuit Court
have reviewed the facts and reached the same conclusion,
the Supreme Court will find no reason to review those
facts itself. “A court of law, such as this Court is, rather
than a court for correction of errors and fact finding,
cannot undertake to review concurrent findings of fact by
two courts below in the absence of a very obvious and
exceptional showing of error.” Graver, Inc. & Manufactur-
ing Co. v. Linde Air Products Co., 336 U.S. 271, 275, 69 S. Ct.
535, 538 (1949); Bereny v. District Director, Immigration and
Naturalization Service, 385 U.S. 630, 635, 87 S. Ct. 666, 670
(1967).

(Continued from previous page)

and (4) sewer lines could not be relocated without Corps of
Engineers’ approval (Petition for Writ, p. 13). However, the
Magistrate and the District Judge ruled that: (1) there was no
federal agency that had approval power over the Redevelop-
ment Project (Petitioner’s Appendix, pp. 72; 93; 94; 105; Ap-
pendix attached hereto, pp. 20; 113); (2) the abandonment of
the Side Hill Lead and the shared line agreement were not
subject to ICC approval (Petitioner’s Appendix, pp. 26; 81; 83);
(3) any changes made in the Park design were not subject to
National Park Service approval (Petitioner’s Appendix, p. 54);
and (4) the sewer lines could be relocated without the Corps of
Engineers’ approval (Petitioner’s Appendix, pp. 28-31; 85-86).

11

III.

NOT PROPER FOR CERTIORARI UNDER
U.S. SUPREME COURT RULE 10.

Whether a review on writ of certiorari will be
granted is controlled by U.S. Supreme Court Rule 10
which states:

-1. A review on writ of certiorari is not a mat-
ter of right, but of judicial discretion. A petition
for a writ of certiorari will be granted only when
there are special and important reasons therefor. The
following, while neither controlling nor fully
measuring the Court’s discretion, indicate the
character of reasons that will be considered

(a) When a United States court of appeals
has rendered a decision in conflict with the
decision of another United States court of
appeals on the same matter;

(b)

(c) Whena... United States court of ap-
peals has decided an important question of
federal law which has not been, but should be,
settled by this Court, or has decided a federal
question in a way that conflicts with applicable
decisions of this Court. [emphasis added]

1. No conflict of Circuit Court decisions

Petitioner claims that the decision of the Eighth Cir-
cuit in this case conflicts with the following decisions
from other circuit courts: Morris County Trust for Historic
Preservation v. Pierce, 714 F.2d 271 (3rd Cir. 1983); Sierra
Club v. Hodel, 848 F.2d 1068 (10th Cir. 1988); Maryland
Conservation Council v. Gilchrist, 808 F.2d 1039 (4th Cir

12

1986); Foundation on Economic Trends v. Heckler, 756 F.2d
143 (D.C. Cir. 1985); Biderman v. Morton, 497 F.2d 1141
(2nd Cir. 1974); and WATCH uv. Harris, 603 F.2d 310 (2nd
Cir. 1979).

Though Petitioner never articulates why there is a
conflict between these decisions, it apparently believes
that the Eighth Circuit’s interpretation of the statutory
term “federally-assisted undertaking” as it applies to
nonfederal projects that require federal approval or li-
censing was too narrow as compared to these other Cir-
cuit decisions. Petitioner apparently believes that the
Eighth Circuit was too restrictive when determining the
extent to which federal agencies are required to consider
indirect or “off-site” impacts of their actions under the
NHPA and the NEPA.

Before analyzing these other Circuit decisions to
show why they are entirely consistent with the Eighth
Circuit’s decision in this case, it is helpful to outline the
general analysis developed by various circuit courts
when assessing off-site impacts.

The best analysis so far of the extent to which an
agency must consider off-site impacts of their actions was
rendered in Sylvester v. U.S. Army Corps of Engineers, 884
F.2d 394 (9th Cir. 1989). In that case, the court said an
agency should not draw an analogy comparing environ-
mental impacts to ripples following the casting of a stone
in a pool. To do so would suggest that the entire pool
must be considered each time a substance heavier than a
hair lands upon its surface. 884 F.2d at 400. The Sylvester
Court said that a better image is that of scattered bits of a
broken chain, some segments of which contain numerous

13

links, while others have only one or two. Each segment
stands alone, but each link within each segment does not.
If two separate portions of a project should be considered
two links of a single chain, then the agency should con-
sider the off-site impacts. However, if the two separate
segments are not two links of a single chain, then the
agency is not required to look to the off-site impact. 884
F.2d at 400.

The decision in this case, as well as previous Eighth
Circuit cases, is entirely consistent with the Sylvester case.
The Eighth Circuit previously ruled on the extent to
which a federal agency must consider indirect or off-site
impacts of their actions under the NHPA and NEPA. See
Winnebago Tribe of Nebraska v. Ray, 620 F.2d 269 (8th Cir.
1980) and Ringsred v. City of Duluth, 828 F.2d 1305 (8th Cir.
1987). The Winnebago and Ringsred analysis is that in
determining whether or not the NEPA or NHPA is impli-
cated, one cannot look at the effect of the entire project on
the environment, but only the effect of the federal portion
of the project. If the federal portion of the project does
not have an effect on the environment, then the Acts are
not implicated. The analysis then is what portion of the
project is “federal”. To make this determination, the
Court must study the federal agency’s statutory duties to
determine whether federal action is a legal condition
precedent to completing the project. In both cases, the
Eighth Circuit ruled that there was no federal action
required which was a legal condition precedent to any
portion of the project which affected the environment.
These cases define the extent to which the NEPA requires
compliance in a nonfederal portion of fundamentally
nonfederal projects.

14

Respondents do not dispute the statement of Peti-
tioner that generally nonfederal projects are considered
federal actions for NEPA and NHPA purposes if they
cannot “begin or continue without prior approval of a
federal agency” (Petition for Writ, p. 16), or that the six
purportedly “conflicting” circuit decisions stand for this
proposition. However, in each case where these courts
have stated this proposition, the respective courts recog-
nized that the NEPA or NHPA only applied where the
activity sought to be enjoined was to be accomplished
with federal funds or could not proceed forward without
a federal permit or license. This is entirely different from
the case at hand where ODF sought to demolish buildings
it owned with its own money and did not need to obtain
a federal permit to demolish such buildings.

One of the “conflicting” Circuit decisions cited by the
Petitioner, Morris County, presents an entirely different
scenario. In Morris County, HUD provided funds to the
town of Dover, New Jersey to facilitate a redevelopment
plan. Some of these funds were to be used directly for the
demolition of a historic structure. Even though the funds
had been disbursed prior to the demolition of the historic
structure, the plaintiffs claimed HUD was still involved
in the project since under the HUD loan contract, HUD
still had the authority to require alteration of the plan.

3 Respondents do object to any implication by Petitioner
that a federal court would have authority under the NEPA or
NHPA to enjoin the actions of a private party when the NEPA
and NHPA speak only to the actions of federal agencies. See
Footnote 1, page 7, supra.

15

The court agreed and ruled that there was federal in-
volvement in a project where the federal agency had
authority to require alteration to the plan where such
alteration would enhance the environment (NEPA) or
modify its impact on historic properties (NHPA). This is
an important distinction between the Morris County case
and the present case. In Morris County, the federal agency
could require a modification to the plan which would
preserve a historic building since the demolition of the
building was the subject of the HUD funding contract. In
the present case, even if the National Park Service for
instance could require an alteration to Douglas County’s
plan for acquisition and construction of the Park, such an
alteration would only operate within the borders of the
Park and would not reach into Jobber’s Canyon which is
entirely outside the Park.

The facts in WATCH v. Harris, 603 F.2d 310 (2nd Cir
1979) are virtually identical to the facts in Morris County.
In WATCH, HUD funds were to be used directly for the
demolition of historic structures. All of the HUD funds
had not yet been disbursed. As a result, HUD still had the
authority to require alteration of the project before dis-
bursing any more funds.

In Sierra Club v. Hodel, 848 F.2d 1068 (10th Cir. 1988),
county officials proposed constructing a road through
federal lands. The court determined that the Bureau of
Land Management was obligated, pursuant to the Federal
Land Policy and Management Act, to insure that the
county’s construction of that road did not unnecessarily
degrade the condition of the federal property. As a result,
under the Federal Land Policy and Management Act, the

16

Bureau of Land Management had direct regulatory con-
trol over how the county constructed its road.

In Maryland Conservation Council, the Fourth Circuit
Court ruled that the NEPA did apply where the defen-
dant sought to construct a highway through a state park
which was originally acquired partially with federal
funds. It was very clear that the National Park Service
would have to issue a permit before the county could
construct a road through this park. Therefore, the activity
sought to be enjoined could never occur without action
on the part of a federal agency. The Maryland Conservation
Council case presents an interesting comparison to the
case at hand. For the case at hand to be analogous to
Maryland Conservation Council, it would have been neces-
sary for Jobbers Canyon, not the Douglas County Park, to
have been acquired with the National Park Service funds.
Under that fanciful scenario, ODF would have to obtain
permission from the National Park Service to demolish
buildings acquired with federal money.

In Foundation on Economic Trends ». Heckler, 756 F.2d
143 (D.C. Cir. 1985), the plaintiffs sought to enjoin an
experiment proposed by University ot California scien-
tists to release genetically engineered organisms into the
open environment. Before the scientists could release
these organisms into the open environment, they first had
to obtain approval from the National Institutes of Health.
As a result, the scientists had to obtain a permit from the
federal government to conduct this activity.

Biderman v. Morton is actually an odd case for Peti-
tioner to cite. In that case, the plaintiffs sought to enjoin

17

the local municipal authorities from issuing building per-
mits and zoning variances. The plaintiff’s theory in the
Biderman case revolved around Congress’ Fire Island Na-
tional Seashore Act, which authorized the appropriation
of funds to condemn beachfront properties in the area of
these municipalities in order to preserve the natural state
of these sites. The National Park Service was to carry out
these condemnations and prepared a master plan for
determining which sites to acquire. The National Park
Service itself determined that the preparation of the mas-
ter plan constituted a major federal action and therefore
undertook preparation of an environmental impact state-
ment in conjunction with the development of the master
plan. At the time the action was commenced, the National
Park Service had not yet completed the environmental
impact statement. As a result, the plaintiffs’ claimed that
the municipal authorities, which were subject to neither
the Fire Island National Seashore Act nor the NEPA,
could not issue any permits or zoning variances until the
environmental impact statement was complete.

The Circuit Court in Biderman ruled that the agency’s
authority under the Fire Island National Seashore Act did
not give that agency “go ahead” power over the zoning
and permitting decisions of the municipalities. The va-
lidity and operative effect of the !ocal zoning and permit
ordinances did not depend upon any approvals to be
granted by the federal agency pursuant to the Fire Island
National Seashore Act. As a result, the Court ruled that
the local municipalities’ acts of granting construction per-
mits and zoning variances did not trigger the NEPA, even
though such acts had an obviously detrimental effect on
the very environment which the Fire Island National

18

Seashore Act sought to protect. Similarly, ODF did not
need to obtain any permits from the National Park Ser-
vice, the I.C.C. or the Army Corps of Engineers to demol-
ish Jobbers Canyon.

In all of the “conflicting” decisions cited by the Peti-
tioner, it was the very act sought to be enjoined which the
federal agency had direct regulatory control over or con-
tributed funds to. There is no conflict between circuits.
All of the circuit courts which have considered this issue
have followed the same standard as the Eighth Circuit in
this case.

First Circuit. In Citizens for Responsible Area Growth v.
Adams, 680 F2d 835 (1st Cir. 1982), land leased from an
airport to build a hangar did not trigger NEPA even
though the original airport facilities were federally
funded. The trial court was led to believe that any expan-
sion of the airport was enjoinable under NEPA whether
or not there was federal involvement in that expansion.
The circuit court vacated the injunction because “NEPA
applies only to ‘federal’ actions” and “a project such as
this one, which is not itself federally funded nor signifi-
cantly bound up in a federally funded project, is not
‘federal.’ ” 680 F.2d 835, 839. Chick v. Hills, 528 F.2d 445
(Ist Cir. 1971), involved a tract of land that had been
segmented and separated from a HUD financed project.
Plaintiffs insisted that it should have been included in the
project. The district court found there was no planned
federal participation in the segmented portion of the
project. The court of appeals affirmed saying the “plain-
tiffs had the burden to show that the federal government
had plans to participate in future projects on excluded

19

segments of the parcel.” The court pointed out that the
question of whether a project is federal for NEPA pur-
poses is one of fact and the district court’s findings can
only be set aside if they are clearly erroneous. 528 F.2d
448.

Third Circuit. In N.A.A.C.P. v. Medical Center, Inc., 584
F.2d 618 (3d Cir. 1978), the existence of required minis-
terial approval by the Secretary of H.E.W. of capital ex-
penditures by a private hospital did not trigger NEPA.
The Secretary’s Section 1122 approval action was not
“major” because “(1) the agency only had ministerial
responsibilities relating to the relocation plan, (2) the
agency gave no direct financial aid to the project, and (3)
the overall federal involvement in the project was not
sufficient to turn essentially private action into federal
action.”

Fifth Circuit. In Save Our Wetlands, Inc. v. Sands, 711
F.2d 634 (5th Cir. 1983), plaintiffs filed suit to enjoin
construction of a 25-mile electric transmission line along
the west bank of the Mississippi River. The federal agen-
cy involved decided not to develop an impact statement.
The trial court denied the injunction and the court of
appeals affirmed. The court noted: “the record in this case
does not show that this permitting process is sufficient to
‘federalize’ this action thus requiring an environmental
impact statement...” A private act does not become a
federal act, albeit a major one, merely because of some
incidental federal involvement. 711 F.2d at 644, note 9. See
also Vieux Carre Property Owners, Residents & Associates,
inc. v. Brown, 875 F.2d 453 (5th Cir. 1989) and Save the Bay,
Inc. v. United States Corps of Engineers, 610 F.2d 322, cert.
denied, 449 U.S. 900, 101 S.Ct. 269 (5th Cir. 1980).

20

Sixth Circuit. The court of appeals approved an I.C.C.
authorization for merger of a railroad and a barge line.
With respect to the environmental impact, the court said:
“we do not believe that, in assessing the environmental
impact of the merger, the Commission was obligated to
assess the impact of contemplated projects which the
Commission has no power to approve, which are not an
inherent component of the proposed merger, and which
will be subject to environmental review should they ever
reach the actual proposal stage.” Crounse Corp. v. I.C.C.,
781 F.2d 1176 (6th Cir. 1986).

Seventh Circuit. In Edwards v. First Bank of Dundee, 534
F.2d 1242 (7th Cir. 1976), the court concluded that a
private entity could demolish a historic building it owned
even though the Comptroller of Currency must approve
an application by the private party to move its bank to
the site of the demolished building. The court pointed
out: “the Bank’s project of demolishing the privately
owned structure for clearance of the property to facilitate
the construction of a new building is a private act over
which the Comptroller has no authority, either expressed
or implied...” 534 F.2d 1246.

Eighth Circuit. In Ringsred v. City of Duluth, 828 F.2d
1305 (8th Cir. 1987), a citizen sought to enjoin construc-
tion of a parking ramp next to gambling facility operated
by the Indian Commission. The injunction was denied
because the Secretary of Interior’s actions in approving a
contract between the Indians and the City concerning the
parking ramp to be constructed next to bingo facility was
too incidental to the parking ramp project to constitute
major federal action requiring environmental assessment.
The court pointed out that no federal action was a legal

21

condition precedent to construction of the parking lot.
The court also relied on the following three factor test: (1)
the degree of discretion exercised by the agency over the
federal portion of the project; (2) whether the federal
government has given any direct financial aid to the
project; and (3) whether “the overall federal involvement
with the project is sufficient to turn essentially private
action into federal action.” 828 F.2d at 1308. In Winnebago
Tribe of Nebraska v. Ray, 620 F.2d 269, cert. denied, 449 U.S.
836, 101 S. Ct. 110 (8th Cir. 1980) and ‘Missouri Coalition
For The Environment v. Corps of Engineers, 866 F.2d 1025
(8th Cir. 1989), the Eighth Circuit Court of Appeals ap-
plied the same standard.

Ninth Circuit. In Sylvester v. U.S. Army Corps of Engi-
neers, 884 F.2d 394 (9th Cir. 1989), the court reviewed
recently adopted Corps of Engineers regulations relating
to the segmentation of projects and concluded the broken
chain rule applies. Each segment stands alone, but each
link within a segment does not. The court ruled that a
golf course and a resort were unconnected segments, not
connected links within a segment. 884 F.2d 400.

Tenth Circuit. Sierra Club v. Hodel, 848 F.2d 1068 (10th
Cir. 1988), expresses the rule, in this manner: “The touch-
stone of major federal action, .. . is an agency’s authority
to influence significant nonfederal activity.” This influ-
ence must be more than the power to give nonbinding
advice to the nonfederal action.

D.C. Circuit. A permit to discharge waste requirement
does not give the agency authority to regulate construc-
tion of the building from which the discharge will ulti-
mately come. Natural Resources Defense Council, Inc. v.

22

U.S. Environmental Protection Agency, 822 F.2d 104 (D.C.
Cir. 1987). The court said: “NEPA, as a procedural device,
does not work a broadening of the agency’s substantive
powers . . . whatever action the agency chooses to take
must, of course, be within its province in the first in-
stance. In the circumstances at hand, the ‘major federal
action’ which is subject to environmental review is the
issuance of a permit to discharge pollutants; it is not the
authorization of construction.” 822 F.2d 129.

The circuits are unanimously agreed that the agency
must have authority over some aspect of the federal
portion of the project which would directly impact the
nonfederal portion. In the case at hand, development of
the park, relocating the railroad, and altering the sewers
are not only not subject to any federal agency control,
they have no bearing, immediate or remote, on ODF’s
demolition of the warehouses in Jobbers Canyon — which,
in fact, has already occurred.

2. No conflict with applicable decisions of this
Court.

Petitioner claims that certiorari should be granted
pursuant to U.S. Supreme Court Rule 10.1(c) since the
decision of the Eighth Circuit in this case conflicts with
this Court’s decisions in Robertson v. Methow Valley Citi-
zens Council, 109 S. Ct. 1835 (1989) and Marsh v. Oregon
Natural Resources Council, 109 S. Ct. 1851 (1989). Petitioner
claims that this Court recently acknowledged the duty to
consider off-site impacts and that the Eighth Circuit dis-
regarded this doctrine. However, this case does not even
share any issues with the Robertson and Marsh cases. The
case for which certiorari is now sought by Petitioner dealt

23

with whether or not federal agencies are required to
consider indirect or off-site impacts of the activities of a
private developer when determining whether or not
NEPA was applicable to the project. In the Robertson case,
there was no issue as to whether or not the NEPA ap-
plied. The federal defendant in that case, the Forest Ser-
vice, made its own determination that the permit it issued
was a major federal action and that NEPA did apply. The
issues in Robertson dealt with what had to be contained in
the environmental impact statement after it was deter-
mined that the NEPA applied.

Therefore, there is no relationship at all between this
case and the Robertson case, and the ruling in this case
certainly does not conflict with the Robertson case.

Respondents cannot determine for what purpose Pe-
titioner has cited the Marsh case, which only involved the
activities of a federal agency (no private developer was
involved) which made its own decision that the NEPA
was implicated by its activities. There was no discussion
of the off-site impact at all in the Marsh case. As a result,
it is hard to imagine how the Eighth Circuit’s decision in
this case is at odds with the Marsh case.

3. No important question of federal law which has
not been, but should be, settled by this Court.

Given the fact that there is no conflict concerning this
issue between the various circuit courts or with this
Court, there is no question of federal law, much less

24

important question, which has not been, but should be,
settled by this Court.

4. No special or important reasons for granting
writ of certiorari.

U.S. Supreme Court Rule 10.1 first and foremost re-
quires that before review on writ of certiorari will be
granted there must exist special and important reasons
therefor. Generally, the importance arises out of issues
affecting the public in general as distinguished from im-
portance to the particular parties involved. See for in-
stance, Layne & Bowler Corporation v. Western Well Works,
Inc., 261 U.S. 387, 393, 43 S. Ct. 422, 423 (1923) where this
Court originally granted certiorari then dismissed the
same despite the fact that there was a conflict in the
decisions of the 5th and 9th Circuit Courts. This Court
stated that it was very important that it be consistent in
not granting a writ of certiorari except in cases involving
principles, the settlement of which is important to the
public, as distinguished from that of the parties, and in
cases where there is a real and embarrassing conflict of
opinion and authority between the circuit courts. See also,
Rice v. Sioux City Memorial Park Cemetery, Inc., 349 U.S. 70,
79, 75 S. Ct. 614, 619-620 (1955).

Further, though an issue may be important in the
sense that it is interesting, this Court has ruled that
importance implies a reach to a problem beyond the
academic or the episodic. Rice, 349 U.S. at 74, 75 S. Ct. at
616.

In its ruling in this case, the Eighth Circuit stated that
none of the Appellants’ arguments persuaded the Eighth

—s

25

Circuit that any of the federal defendants had the degree
of de jure or de facto control over Jobbers Canyon neces-
sary to trigger consultation procedures and environmen-
tal review under the NEPA or NHPA. Nonetheless,
Petitioner claims the involvement of the federal defen-
dants was sufficient to invoke the requirements of the
NEPA and NHPA. As a result, Petitioner is simply claim-
ing that the district court and circuit court considered the
factual evidence incorrectly. However, this Court has pre-
viously stated that it does not grant certiorari to review
evidence and discuss specific facts. United States v. John-
ston, 268 U.S. 220, 227, 45 S. Ct. 496, 497 (1925). See also,
Houston Oil Co. of Texas v. Goodrich, 245 U.S. 440, 38 S. Ct.
140 (1918); Southern Power Co. v. North Carolina Public
Service Co., 263 U.S. 508, 44 S. Ct. 164 (1924).

Where the district court and circuit court have re-
viewed the facts and reached the same conclusion, this
Court ordinarily will find no reason to review those facts
itself. “A court of law, such as this Court is, rather than a
court for correction of errors and fact finding, cannot
undertake to review concurrent findings of fact by two
courts below in the absence of a very obvious and excep-
tional showing of error.” Graver, Inc. & Manufacturing Co.
v. Linde Air Products Co., 336 U.S. 271, 275, 69 S. Ct. 535,
538 (1949); Bereny v. District Director, Immigration and Nat-
uralization Service, 385 U.S. 630, 635, 87 S. Ct. 666, 670
(1967).

*

26

CONCLUSION

The trial Court clearly acted properly as did the
Eighth Circuit Court and their decisions should not be
disturbed. Petitioner failed to establish any state of facts
indicating that the demolition of Jobbers Canyon required
or involved any federal funding, approvals, permits or
licenses which might establish that the demolition of
Jobbers Canyon was a federally assisted undertaking or
major federal action.

Respectfully submitted,

NONFEDERAL RESPONDENTS,
CONAGRA, INC., CITY
OF OMAHA, DOUGLAS
COUNTY AND OMAHA
DEVELOPMENT FOUNDATION

By Joun E. NortH

Rosert G. DaltLey

McGratH, NortH, MuLtin
& Kratz, P.C.

One Central Park Plaza

222 South Fifteenth Street

Omaha, Nebraska 68102

(402) 341-3070

Attorneys for ConAgra, Inc.

and

27

By Mitton R. AsRatiams
FRANK F. PospisHit
ABRAHAMS, Kastow & CAssMAN
8712 West Dodge Road
Suite 300
Omaha, Nebraska 68114

Attorneys For Omaha Development
Foundation

and

By Cnarves K. BUNGER
Assistant City Attorney
Suite 804
Omaha/Douglas Civic Center
Omaha, Nebraska 68183

Attorney For City Of Omaha
and

By Micnaet W. Ampor
Henry L. WeNptT
Deputy Douglas County
Attorney
Suite 909
Omaha/Douglas Civic Center
Omaha, Nebraska 68183

Attorneys For Douglas County

APPENDIX

Description

Order and Memorandum and
Order Denying Motion For Tem-
porary Restraining Order and
Preliminary Injunction

Magistrate’s Findings & Recom-
mendations

District Court’s Memorandum
on Plaintiffs’ and Intervenor’s
Objections to the Magistrate’s
Findings of Law and Fact and
Their Motion to Reject Part of
the Magistrate’s Recommenda-
tions

Omaha Development Founda-
tion’s Motion and Memoran-
dum to Dissolve the Injunction
Dated March 1, 1989, or to Re-
quire the Plaintiffs and Inter-
venor to Post a Sufficient Surety
Bond

Date

4/13/88

1/20/89

2/14/89

3/28/89

App. 1

App. 17

App. 115

App. 133

App. 1
APPENDIX

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEBRASKA

PEOPLE FOR RESPONSIBLE ) CV88-0-247
OMAHA URBAN
DEVELOPMENT, et al., ) ORDER ON
visitas. ) MOTIONS FOR
) TEMPORARY
vs. ) RESTRAINING
INTERSTATE COMMERCE ) ORDER AND
COMMISSION et al. ) PRELIMINARY
: ) INJUNCTION
Defendants. )
) (Filed
) Apr. 13, 1988)

In accordance with the memorandum of today,

IT IS ORDERED that the plaintiffs’ motion for tempo-
rary restraining order and preliminary injunction, filing
6, are denied.

Dated April 13, 1988.

BY THE COURT

/s/ Warren K. Urbom
United States District Judge

App. 2

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEBRASKA

PEOPLE FOR RESPONSIBLE
OMAHA URBAN
DEVELOPMENT, et al.,

Plaintiffs,

CV88-0-247

)

)

) MEMORANDUM

) AND ORDER

) ON MOTIONS
os. ) FOR TEMPORARY
INTERSTATE COMMERCE RESTRAINING
COMMISSION et al., .
)
)

Defendants.

ORDER AND
PRELIMINARY
INJUNCTION

(Filed
April 13, 1988)

EVIDENCE

At the hearing on these motions on April 12, 1988,
eighty-four documents were submitted on behalf of the
plaintiffs and seven on behalf of the defendants. | de-
clined to rule on receipt of the exhibits because of the
press of time, but reserved ruling. I now make the evi-
dentiary rulings, although the parties must understand
that i have studied, at least to the extent that appeared to
be necessary for a proper ruling on the motions, all the
documents presented. The formal rulings are as follows:

1. these exhibits are received in evidence and
the objections overruled: plaintiffs’ Exhibits
8, 12, 14, 16, 17, 18, 19, 21, 27, 82, 83, and 84;
and defendants’ Exhibits 101, 102, 103, 104,
105, 106, and 107:

N

objections on grounds of foundation, reie-
vancy and hearsay are sustained as to the
remaining documents.

App. 3

I note only briefly that the plaintiffs are correct in
suggesting that there should be a looser standard at a
hearing on preliminary motions than at the trial, but the
standard cannot be so loose that weight is given to docu-
ments neither athenticated [sic], nor shown to have any
effect on anything done or planned to be done, nor to be
the product of someone having personal knowledge of
‘he contents. Such is the nature of many of the documents
Otiered by the plaintiffs. For example, the only support
offered for Exhibits 31 through 54 is the affidavit of Mark
Himes, Exhibit 82, which says:

“These Exhibits came from three sources. One
was an examination and copying by Ed Fogarty
of the file of Oliver Wolf, Federal Benefits Coor-
dinator at the State Park and Game Commission
in Lincoln, Nebraska in about mid-March 1988.
Other documents came during informal discov-
ery by Ed Fogarty with County Property Direc-
tor Hogan in the presence of Deputy County
Attorney Henry Wendt on 4/6/88. The other
documents in this group came from an examina-
tion and copying of documents by Edward F.
Fogarty at the National Park Service office at
Braiker-Brandeis Building, Omaha, Nebraska,
on or about 4/6/88.”

That gives absolutely no ground for any weight to be
given tc such documents. It provides neither authenticity
nor a likelihood of personal knowledge of facts stated.
The one case drawn to my attention by the plaintiffs’
counsel is Asseo v. Pan American Grain Co., Inc., 805 F.2d
23 (Ist Cir. 1986). It says that a trial court committed no
error in receiving as evidence for purposes of a prelimi-
nary injunction transcripts from a hearing before an ad-
ministrative law judge, which were claimed on appeal to

App. 4

have been hearsay but which may not have been objected
to on the grounds of hearsay at the time of the hearing
before the district court. The court said:

“Affidavits and other hearsay materials are of-
ten received on preliminary injunction proceed-
ings. The dispositive question is not their
classification as hearsay but whether, weighing
all the attendant factors, including the need for
expedition, this type of evidence was appropri-
ate given the character and objectives of the
injunctive proceedings... .”

The plaintiffs also call my attention to the Notes of the
Advisory Committee on Rules to the 1966 amendment of
Rule 65(a)(2) which says:

“Subdivision(a)(2) — This new subdivision pro-
vides express authority for consolidating the
hearing of an application for preliminary injunc-
tion with a trial on the merits. The authority can
be exercised with particular profit when it ap-
pears that a substantial part of the evidence
offered on the application will be relevant to the
merits and will be presented in such form as to
qualify for admission on the trial proper.”

This has to do with consolidation of the hearing on the
preliminary injunction with the trial on the merits. There
is no indication that any of the parties wanted a consol-
idation and the subject has not been discussed with the
court. Suffice it to say, however, that in my judgment
there is not a likelihood that can be based on anything
other than pure speculation that most of the excluded
exhibits would be presented at a trial in a form that
would make those documents admissible. It is conceiv-
able, of course, that information in some of the docu-
ments could be presented by live witnesses, but the

App. 5

documents themselves would for the most part be inad-
missible. In any event, a consideration of the substance of
all those documents would not change the outcome of my
ultimate ruling on the motion now before me.

I have exercised some liberality in putting into evi-
dence some of the matters offered. For example, the de-
position of Richard Niedergeses, Exhibit 84, is in
evidence, although it has not been signed by the depo-
nent, the reading and signing of the deposition have not
been waived by anyone, and there was no stipulation
waving any of those requirements. The affidavit of Mark
Himes, Exhibit 82, also is in evidence although lacking
any declaration that he has personal knowledge of the
source of the documents mentioned and saying nothing
that tends to establish any feature of the admissibility of
the documents.

Il. BACKGROUND

This action was prompted by development plans af-
fecting the Jobbers Canyon Historic District, a six and
one-quarter block warehouse district in downtown
Omaha that is included in the National Register of His-
toric Places. On February 2, 1988, the City Council of
Omaha adopted a “Riverfront Redevelopment Plan” ap-
proving a redevelopment project that includes Jobbers
Canyon. On March 15, 1988, the Omaha City Council
approved a redevelopment agreement between the City
of Omaha, the Omaha Development Foundation (ODF),
ConAgra, Inc., Douglas County, and the Peter Kiewit
Foundation. Completion of the redevelopment project

App. 6

will require demolition of the buildings in Jobbers Can-
yon. The plaintiffs allege that ‘his demolition “will
represent the largest single destruction of historic register
properties in the twenty years that the National Trust for
Historic Preservation has been [mlJonitoring these mat-
ters.” Complaint ¥ 21.

The area included in the $275 million redevelopment
project is bounded by Tenth Street on the west, the Mis-
souri River on the east, Farnam Street and Interstate 480
on the north, and Leavenworth Street on the south. Job-
bers Canyon lies within the redevelopment project area
between Tenth and Eighth Streets on the west and east,
and Farnam and Jackson Streets on the north and south.

The plaintiffs include People for Responsible Omaha
Urban Development (PROUD), a not-for-profit corpora-
tion dedicated to historic preservation, Mercer Manage-
ment Company (Mercer), the “main developer” of the
Old Market Historical District adjacent to Jobbers Can-
yon, and Roger Durand, who resides in the Old Market.

The defendants include parties to the redevelopment
agreement (the City of Omaha, Douglas County, ODF,
and ConAgra), the mayor of Omaha (Bernie Simon), and
several federal agencies (Interstate Commerce Commis-
sion, National Park Service, Army Corps of Engineers,
Federal Aviation Agency) and their heads.

The plaintiffs allege that the defendants are violating
the National Environmental Policy Act (NEPA) and the
National Historic Preservation Act (NHPA) by proceed-
ing with the redevelopment project without following the
review procedures in those acts. They seek to enjoin the
imminent demolition of buildings in Jobbers Canyon

App. 7

pending a ruling on the merits of the case. The de! en-
dants contend that the plaintiffs lack standing to bring
this action. Responding to the merits of the plaintiffs’
legal argument, the defendants argue that the redevelop-
ment project does not require the federal involvement
necessary to trigger the review requirements of either
NEPA or the NHPA.

I]. STANDING

The power of this court to decide this matter is
granted by Article III of the constitution. To ensure that
federal courts assume jurisdiction only over Article III
“cases and controversies,” Supreme Court decisions have
instructed that

at an irreducible minimum, Art. III requires the

party who invokes the court’s. authority to

“show that he personally has suffered some ac-

tual or threatened injury as a result of the put-

atively illegal conduct of the defendant,”
. and that the injury “fairly can be traced to

the challenged action” and “is likely to be re-
dressed by a favorable decision. . . .”

Valley Forge Christian College v. Americans United for Sep-
aration of Church and State, Inc., 454 U.S. 464, 472 (1982)
(citations omitted).

A. PROUD

PROUD’s primary purpose is “advocat[ing] preserva-
tion of sites, buildings and objects of cultural and historic
significance as part of responsible urban planning for the
City of Omaha and to conduct public education programs
through lectures, tours and publications.” Complaint J 1.

App. 8

Of its “approximately 200 members, some. . . own prop-
erty in the Old Market historic district, and some

. reside in the Old Market and the Jobbers Canyon
Historic Districts, and all... derive benefit from Jobbers
Canyons’ significance as a cultural and historic land-
mark.” Id. PROUD alleges that it will suffer “injury in
fact” from the defendants’ noncompliance with NEPA
and the NHPA. Id.

PROUD’s allegations do not establish that it has
standing to assert its own interests in this case. It has not
shown how the challenged actions will injure its ability to
pursue its objectives. See Sierra Club v. Morton, 405 U.S.
727, 735, 735 n.8 (1972) (requiring that association allege
that “it or its members would be affected” in “their
activities or pastimes by the. . . development”; an asso-
ciation must have more than an interest in a problem).
Nevertheless, “[e]ven in the absence of injury to itself, an
association may have standing solely as the representa-
tive of its members.” Warth v. Seldin, 422 U.S. 490, 511
(1975).

“{A]n association has standing to bring suit on
behalf of its members when: (a) its members
would otherwise have standing to sue in their
own right; (b) the interests it seeks to protect are
germane to the organization’s purpose; and (c)
neither the claim asserted nor the relief request
requires the participation of individual mem-
bers in the lawsuit.”

International Union, United Automobile, Aerospace and Agri-
cultural Implement Workers of America v. Brock, 54 U.S.L.W.
4764, 4766 (U.S. June 25, 1986), quoting and reaffirming
Hunt v. Washington Apple Advertising Comm'n, 432 U.S.
553, S43 (VST 7}.

App. 9

The second two elements of the three-part Hunt test
easily are satisfied in the present case. Concerning the
first element, the complaint alleges that some members
own land immediately adjacent to Jobbers Canyon and
that some live in Jobbers Canyon or immediately adja-
cent. Yet, while the complaint contains generalized alle-
gations of harm to PROUD, it says nothing about the
injury to its members. CF. Weintraub v. Rural Electrification
Administration, 457 F. Supp. 78, 88 (M.D.Pa. 1978) (asso-
ciation has standing under NHPA because it alleged that
“the aesthetic and cultural well-being of the area in
which” its members resided “will be damaged”). PROUD,
therefore, lacks standing both in its individual and repre-
sentative capacities.

B. Durand

Roger Durand alleges that he resides “in the Old
Market Historic District which is immediately adjacent
to... Jobbers Canyon,” and that his “use and enjoyment
of the Jobbers Canyon National Historic District will be
adversely affected by the actions of the Defendants. . . .”
Complaint 7 3. His other allegations add nothing material
for purposes of analyzing standing. He fails to show a
relevant interest and how it might be injured by the
defendants’ alleged statutory noncompliance.

C. Mercer

Mercer Management Company alleges that it “owns
property within the Old Market Historic District, located

immediately adjacent to . . . Jobbers Canyon,” and is the

App. 10

“main developer of Omaha’s ‘Old Market’. . . .” Com-
plaint J 2. It alleges that it will suffer injury from non-
compliance with NEPA and the NHPA, and that the “the
destruction of Jobber[s] Canyon will change adversely
the ambience of the Old Market.” I/d.

The defendants argue that the only injury alleged by
Mercer is economic, not aesthetic or environmental, and
that allegations only of economic injury do not bring it
within the “zone of interests” protected by NEPA and the
NHPA. There are at least two problems with the defen-
dants’ attack. First, their arguments are based solely on
unfavorable inferences from the complaint. Mercer does
not allege economic injury, and there is no basis for
concluding that it is motivated solely by pecuniary inter-
ests. See Monarch Chemical Works, Inc. v. Exon, 452 F. Supp.
493, 499 (D. Neb. 1978), aff’d sub nom. Monarch Chemical
Works, Inc. v. Thone, 604 F.2d 1083 (8th Cir. 1979).

Second, even assuming that Mercer’s concerns large-
ly are economic does not take it outside the zone of
interests of the NEPA and the NHPA. The zone of inter-
ests requirement is a prudential principle, not an Article
III limit on federal court jurisdiction. Valley Forge, 454
U.S. at 475. The Supreme Court recently explained that,
although sometimes generally listed as a prudential con-
sideration, zone of interests analysis primarily is applied
in cases involving claims under the Administrative Pro-
cedure Act, and that “the test is most usefully understood
as a gloss on the meaning of § 702.” Clarke v. Securities
Industry Ass'n, 55 U.S.L.W. 4111, 4114 n.16 (U.S. Jan. 14,
1987).

a

App. 11

The cases cited by the defendants for the proposition
that Mercer is not within the zone of interests of NEPA
are distinguishable on their facts. See Robinson v. Knebel,
550 F2d 422 (8th Cir. 1977); Churchill Truck Lines, Inc. v.
United States, 533 F.2d 411 (8th Cir. 1976); Monarch, 452 F.
Supp. 493. Similarly, I do not read Weintraub, 457 F. Supp.
78, to support the defendants’ contention that Mercer is
outside the zone of interests to be protected by the
NHPA. Thus, Mercer’s allegations are barely sufficient to
establish that its interest in the ambiance of the Old
Market will be injured by the defendants’ failure to seek
review of its plans for Jobbers Canyon, and that that
injury is within the zone of interests protected by NEPA
and the NHPA.

Ill. WHETHER AN INJUNCTION SHOULD ISSUE

It is the plaintiff’s burden to show that it is entitled to
have demolition of the buildings in Jobber’s Canyon en-
joined.

Whether a preliminary injunction should issue
involves consideration of (1) the threat of irrepa-
rable harm to the movant; (2) the state of the
balance between this harm and the injury that
granting the injunction will inflict on other par-
ties litigant; (3) the probability that movant will
succeed on the merits; and (4) the public inter-
est.

Dataphase Systems, Inc. v. C L Systems, Inc., 640 F.2d 109,
113 (8th Cir. 1981).

App. 12

A. Harm to the Litigants

“[T}he act of demolition is irrevocable.” Boston Water-
front Residence Ass'n v. Romney, 343 F. Supp. 89, 91
(D.Mass. 1972). The plaintiff stresses that, unless en-
joined, ODF immediately will begin demolition of Jobbers
Canyon, resulting in the irretrievable loss of a “historic
and cultural resource,” Plaintiffs’ brief at 19, affecting the
“ambience” of the area.

Balanced against the interests asserted by the plain-
tiff are the defendants’ interests. Delay of the redevelop-
ment project may result in its abandonment. Exhibit 107.
ODF estimates that if the redevelopment plan is not im-
plemented, it will incur a loss of at least $10 million.
Exhibit 106. ConAgra estimates that delays will cost it
approximately $8.5 million per year in product research
and development revenues, $4.178 million in aggregate
annual duplicate rentals, and probable loss of key person-
nel. Exhibit 107. The litigants on both sides assert signifi-
cant interests.

B. The Public Interest

Similarly, the public interests advanced by both the
plaintiff and the defendants are important. The plaintiff
seeks to protect Jobbers Canyon “so that its vital legacy of
cultural, educational, aesthetic, inspirational, economic,
and energy benefits will be maintained and enriched for
future generations of Americans.” 16 U.S.C. § 470(b).
Although omitted from the plaintiffs’ assertions, the
court takes notice of the strong national policy, embodied

in NEPA, of environmental protection.

App. 13

The defendants argue that this case illustrates the
public interest in guarding the proper working of federal-
ism so that local authorities may choose to pursue proj-
ects without federal involvement. They argue that the
City of Omaha has sought for nearly two decades to
develop the “blighted and undeveloped” area included in

the redevelopment plan, and that it is in the interest of
the city and its inhabitants that the plan not be aban-
doned. Defendants’ brief at 40. Both the plaintiff and the
defendants assert weighty public interests.

C. Probability of Success on the Merits

The National Environmental Policy Act requires that
an environment impact statement be prepared for “major
Federal actions significantly affecting the quality of the
human environment... .” 42 U.S.C.A. § 4332(2)(C). “Ma-
jor Federal action,” as used in NEPA,

includes actions with effects that may be major
and which are potentially subject to Federal con-
trol and responsibility. Major reinforces but does
not have a meaning independent of significantly
(§ 1508.27 [defining “significantly” as it applies
to impact]). Actions include the circumstances
where the responsible officials fail to act and
that failure to act is reviewable by courts or
administrative tribunals under the Administra-
tive Procedure Act or other applicable law as
agency action.

(a) Actions include new and continuing
activities, including projects and programs en-
tirely or partly financed, assisted, conducted,
regulated, or approved by federal agencies; new

NS ee

App. 14

or revised agency rules, regulations, plans, poli-
cies, or procedures; and legislative pro-
posals....

(b) Federal actions tend to fail within one
of the following categories:

* + +

(4) Approval of specific projects, such as
construction or management activities located in
a defined geographic area. Projects include ac-
tions approved by permit or other regulatory
decision as well as federal and federally assisted
activities.

40 C.RR. § 1508.18 (1987).

There is absolutely no evidence in this case of any
“major Federal actions” involved in the redevelopment
plan, and all of the evidence on this point affirms that no
federal involvement is contemplated. Exhibits 102-107.
The defendants, therefore, have no NEPA obligations in
connection with the redevelopment plan. See Citizens for
Responsible Area Growth v. Adams, 680 F.2d 835 (1st Cir.
1982); Ely v. Velde, 497 F.2d 252 (4th Cir. 1974); Biderman v.
Morton, 497 F.2d 1141 (2d Cir. 1974); Bradford Township v.
Illinois State Toll Highway Authority, 463 F.2d 537 (7th Cir.),
cert. denied, 409 U.S. 1047 (1972); cf. Proetta v. Dent, 484
F.2d 1146 (2d Cir. 1973). The plaintiff's arguments of
speculative future federal involvement does not trigger
the review requirements of NEPA for this redevelopment
project. See, e.g., City of Oak Creek v. Milwaukee Metro-
politan Sewerage Dist., 576 F. Supp. 482 (E.D.Wis. 1983);
O’Brien v. Brinegar, 379 F. Supp. 289 (D.Minn. 1974).

There is, therefore, no likelihood of success on the
merits of the NEPA claim.

App. 15

The National Historic Preservation Act requires that

The head of any Federal agency having direct or
indirect jurisdiction over a proposed Federal or
federally assisted undertaking in any State and
the head of any Federal department or indepen-
dent agency having authority to license any un-
dertaking shall, prior to the approval of the
expenditure of any Federal funds on the under-
taking or prior to the issuance of any license, as
the case may be, take into account the effect of
the undertaking on any district, site, building,
structure, or object that is included in or eligible
for inclusion in the National Register
[and] .. . shall afford the Advisory Council on
Historic Preservation . . . a reasonable oppor-
tunity to comment with regard to such under-
taking.

16 U.S.C.A. § 470. For purposes of the NHPA,

“Undertaking” means any project, activity, or
program that can result in changes in the char-
acter or use of historic properties, if any such
historic properties are located in the area of
potential effects. The project, activity, or pro-
gram must be under the direct or indirect juris-
diction of a Federal agency or licensed or
assisted by a Federal agency. Undertakings in-
clude new and continuing projects, activities, or
programs and any of their elements not previ-
ously considered under section 106.

36 C.F.R. § 800.2(0)(1987).

There is no evidence that the redevelopment project
will utilize federal funds or require federa! licenses or
permits. The evidence on this point is to the effect that
the defendants intentionally designed the plan to exclude

federal involvement and that none is necessary. Exhibits
102-107. The plaintiffs efforts to argue possible and past

App. 16

federal connections either are too speculative or removed.
Cf. Edwards v. First Bank of Dundee, 534 F.2d 1242 (7th Cir.
1976); Weintraub, 457 F. Supp. 78 (M.D.Pa. 1978).

As with the NEPA claim, there is no likelihood of
success on the merii» 9 the plaintiff's NHPA claim. Al-
though asserting significant harm to itself and to the
public interest, the plaintiff has not shown any proba-
bility of success on the merits, thus failing to meet its
burden of proving that it is entitled to the extraordinary
relief sought.

Dated April 13, 1988.

BY THE COURT

/s/ Warren K. Urbom
United States District Judge

App. 17

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEBRASKA

PEOPLE FOR RESPONSIBLE ) CV88-0-247
OMAHA URBAN
DEVELOPMENT, (PROUD),

et al.,

Plaintiffs, FINDINGS AND
NATIONAL TRUST FOR RECOMMENDATIONS
HISTORIC PRESERVATION
IN THE UNITED STATES, (Filed

Intervenor, Jan. 20, 1989)

VS.

INTERSTATE COMMERCE
COMMISSION et al.,

Defendants.

A

Presented to me in my capacity as a magistrate and a
court-appointed master (filing 108) for determination at
trial commencing on December 5, 1988 and concluding on
December 8, 1988 were the last three issues necessary for
the final resolution of this case. The three questions were
framed in a supplemental progression order (filing 275)
and in the pretrial order (filing 429). No party appealed
from the progression order issued in August of 1988,
which first framed these issues:

1. whether the plaintiffs and the intervenor have
standing and capacity to sue in this case,

2. whether all indispensable, proper or necessary
parties have been joined in this case such that the court
can provide adequate relief, and

App. 18

3. whether title to the Central Park East is defec-
tive, thereby causing a conversion under the Land and
Water Conservation Fund Act resulting in some basis by
which the court may generally take remedial measures as
to Jobbers Canyon or the Redevelopment Project. (Filing
429).

Also for resolution by me are the dispositive motions
held in abeyance pursuant to my previous findings and
recommendations (filing 261, part VII) submitted on July
28, 1988 (which findings and recommendations resolved
all other issues except those set for trial in December or
otherwise explicitly held in abeyance), and the disposi-
tive motions asserted in connection with the December 5,
1988 trial, with respect to which I took under advisement
All evidence previously received regarding the issues
described in the previous findings and recommendations
(filing 261) was considered by me, pursuant to the pre-
trial order (filing 429), regarding the three issues tried in
December of 1988. Posttrial briefs have been received,
and oral argument has been heard. These findings and
recommendations are considered by me to constitute
findings of fact and conclusions of law interchangeably,
and are not intended to modify, alter or amend the prior
findings and recommendations (filing 261) except to the
extent explicitly stated, if at all, in these findings and
recommendations.

I
A.

People for Responsible Urban Development
(“PROUD”), Mercer Management Company (“Mercer”),

App. 19

and Roger Durand, collectively referred to as the plain-
tiffs, filed this case on March 25, 1988. (Filings 1, 30 and
325). The plaintiffs wanted to stop the demolition of a
part of downtown Omaha, Nebraska referred to as “Job-
bers Canyon.” Jobbers Canyon consists of about six and
one-quarter square blocks and includes a number of
large-scale, primarily early twentieth-century, ware-
houses having historic significance. Jobbers Canyon is
listed on the National Register of Historic Places (“Na-
tional Register”), 16 U.S.C. § 470a, by nomination of the
City of Omaha, Nebraska on December 4, 1986. (Exhibits
284, 285 and 286).

The plaintiffs sued various federal defendants, in-
cluding the Interstate Commerce Commission (“ICC”),
the National Park Service (“Park Service”), and the Army
Corps of Engineers (“Corps”), collectively referred to as
the federal defendants. The plaintiffs also sued the City
of Omaha (“City”), the County of Douglas, Nebraska
(“County”), the Omaha Development Foundation
(“ODF”), and ConAgra, Inc., collectively referred to as
the nonfederal defendants. On April 13, 1988, Judge Ur-
bom denied the plaintiffs’ request for a temporary re-
straining order and preliminary injunction. (Filing 25).

On April 28, 1988, the National Trust for Historic
Preservation in the United States (“Trust”) requested
leave to intervene (filing 32), asserting a position similar
to that of the plaintiffs (Intervenor’s Complaint, filing 32,
attachment; filing 326). This request was granted on May
20, 1988. (Filing 98). The Trust should not be confused
with the Advisory Council on Historic Preservation (“Ad-
visory Council”); the Trust is a corporation created by
Congress, while the Advisory Council is an independent

App. 20

agency of the United States. Compare 16 U.S.C. § 468 with
id. § 470i. The Advisory Council did not attempt to be-
come a party to this litigation.

B.

About the time that Judge Urbom denied the motion
for a temporary restraining order and preliminary injunc-
tion, demolition of Jobbers Canyon began. The land and
buildings comprising Jobbers Canyon are under the con-
trol of or are owned by the ODF (Exhibit 202; Vol. I, TR
91:8-92:9), a private nonprofit corporation (Vol. I, TR
84:9-18). The demotion of Jobbers Canyon is a part of the
implementation of a significant effort by the nonfederal
defendants to revitalized downtown Omaha by, among
other things, constructing a corporate office “campus” to
be used by ConAgra, and developing the presently unde-
veloped, but dedicated, county-owned park known as
“Central Park East.” This proposed revitalization is gen-
erally described in the so-called Riverfront Redevelop-
ment Plan” (“Redevelopment Plan”), (Exhibit 201), and
exhaustively detailed in the “Redevelopment Agree-
ment,” (Exhibit 202). The Redevelopment Agreement was
signed by all nonfederal defendants and became effective
about May 3, 1988. The Agreement was not signed by the
federal defendants. (Exhibit 202).

From a plain reading of the Redevelopment Agree-
ment, and from listening to all the testimony and reading
all relevant exhibits, the redevelopment project does not
intentionally or explicitly: (a) call for the use of federal
financial aid to implement the redevelopment, except to
the extent that the use of Central Park East could be

App. 21

characterized as using federal funds expended prior to
the redevelopment project; or (b) call for the issuance of
any federal licenses, permits, or approvals, except to the
extent that federal licenses, permits or approvals, if sub-
sequently required, are required as an unintended and
incidental consequence of some part of the redevelop-
ment. As stated by the nonfederal defendants in their
brief, “the parties to the Riverfront Redevelopment
Agreement have desired from the outset to design and
implement a project totally local in character and absent
federal assistance or involvement.” Trial Brief of Non-
Federal Defendants at 34 (Brief submitted in conjunction
with the trial held an July 11, 1988 through July 14, 1988).

Jobbers Canyon is generally bounded by 8th Street,
10th Street, Farnam Street, and Jackson Street. (Exhibit
201, page 3 and figure 5). One building in the Canyon is
not being demolished, but rather is being developed (Ex-
hibit 284 (map on last page); Vol. I, TR 180:4-181:13). The
ODF requires no federal approvals to demolish the Can-
yon, and has not and will not seek any federal assistance
regarding the Canyon. (Exhibit 106). Central Park East is
located to the east of Jobbers Canyon, and, when devel-
oped, will generally be described as having boundaries
extending east, from the present terminus of the Central
Park Mall (a previously developed park/mall not to be
confused with Central Park East) at 8th Street to the
Burlington Northern riverfront line, and from the north,
bounded by the 1-480 bridge, to the south, corresponding
approximately with the extended south right-of-way line
of Howard Street. (Exhibit 201, page 12, figures 5 and 6).
Exhibit 1026 depicts the park concept. The ConAgra cam-
pus will not be located in Central Park East, but will

App. 22

generally be located to the south and west of the park.
(Exhibit 201, pages 12-13, figures 4, 5 and 6; Exhibit 202,
attached exhibit 4). The park will remain a public park.
(Exhibit 202). Additionally, Central Park East is not lo-
cated on land where Jobbers Canyon sits.

The concept of Central Park East started in 1978
when the State of Nebraska, through the Game and Parks
Commission, acting at the request of, and essentially for,
the County, submitted an application, (Exhibit 217, pages
1-6; Exhibit 221), to what is now known as the Park
Service for federal funds to acquire and develop park
property under the Land and Water Conservation Fund |
Act. 16 U.S.C. § 4601-1-8. Subsequently, the application
was granted on June 16, 1978, and a contract was entered
into by and between the State of Nebraska and the prede-
cessor to the Park Service. (Exhibit 217, pages 1-6).

Prior to the 1978 agreement being entered into, the
predecessor of the Park Service issued a “negative decla-
ration,” indicating that the project — to acquire and devel-
op Central Park East - would not significantly affect the
quality of the environment within the meaning of the
National Environmental Policy Act. (Exhibit 217, page
35). After the negative declaration was issued, the State
Historic Preservation Office advised by letter on May 30,
1978 that the project had been reviewed by that office and
the project would have no effect upon properties enrolled
in or eligible for inclusion on the National Register. (Ex-
hibit 217, page 26). Jobbers Canyon was considered in
this 1978 review. (Vol. IV, TR 800:1-4).

App. 23

The original agreement was divided into two stages:
stage 1 was for acquisition, and stage 2 was for develop-
ment. (Exhibit 217, pages 1-6). The application was
amended six times (Exhibits 217A, 217B, 217C, 217D,
217E and 271F), and the last amendment, dated February
6, 1986, deleted stage 2. (Exhibit 217F). The County ac-
quired the land, about 14.3 acres, with $750,000 from the
LWCFA grant and other sources, and the project was
“closed out” on February 19, 1986 by the Midwest Re-
gional Office of the Park Service, indicating that the proj-
ect was complete. (Exhibit 232).

The concept of Central Park East used in the instant
redevelopment project includes the acquisition of addi-
tional land, without the use of federal funds, and devel-
opment of the park, including the creation of a lake,
without federal funds. (Exhibit 202, section 4; Exhibit
1026). The Central Park East development contemplates a
park where “passive” recreation will take place. (Exhibit
202, attached exhibit 4).

The area to be redeveloped includes old railroad
trackage. Relocation of one Union Pacific industrial track,
the “side hill lead,” will be required. (Exhibit 201, pages
7-8, 21, figure 4; Vol. II, TR 469:19-470:10; 472:1-473:16).
This trackage is not located upon land where Jobbers
Canyon sits.

On the easterly edge of the area to be redeveloped is
the Missouri River, and adjacent to the river, on the
Omaha side, is a levee system providing flood protection.
(Vol. IV, TR 940:25-941:3). The ground upon which the
levee is situated is owned by the City, but the levee is
supervised by the Corps (Vol. IV, TR 986:5-13;

App. 24

940:25-941:3), pursuant to a quite detailed operations and
maintenance manual (Exhibit 293). The levee is not lo-
cated upon land where Jobbers Canyon sits.

c

Since the demolition of Jobbers Canyon threatened to
make this litigation moot, the parties were placed on an
expedited discovery schedule, and trial on two limited
issues commenced on July 11, 1988. (Filing 104). The two
issues argued at that trial were:

1. whether, based upon the then existing Riv-
erfront Redevelopment Agreement, including all ap-
proved pians, specifications and construction drawings as
of the date of trial, there was any federal funding, federal
licensing or other federal involvement requiring a section
106 hearing under the National Historic Preservation Act
(“NHPA”) or otherwise implicating the National Environ-
mental Policy Act (“NEPA”) or the Land and Water Con-
servation Fund Act (“LWCFA”); and

2. if the answer to the foregoing question was
in the affirmative, whether a section 106, 16 U.S.C. § 470f,
hearing (or other action required under the NHPA, the
NEPA or the LWCFA) could result in a federally required
retention of one or more buildings in Jobbers Canyon.

I submitted findings and recommendations pursuant
to the July, 1988 trial, recommending that judgment on
the limited issues presented be entered for the defendants
and against the plaintiffs and the intervenor. | found that
the answer to the first issue was in the negative, i.e.,
based upon the then existing Riverfront Redevelopment

App. 25

Agreement (including all approved plans, specifications,
and construction drawings as of July 11, 1988), there was
no federal funding, licensing or other involvement re-
quiring a section 106 review under the NHPA, or other-
wise implicating the NEPA or the LWCFA. Also, |
determined that, insofar as the ODF and ConAgra are
concerned, a section 106 review (or other action under the
NHPA, NEPA or LWCFA) could not result in a federally
required retention of one or more buildings in Jobbers
Canyon. (Filing 261). The plaintiffs and the intervenor
moved to reject the above findings and recommendations
(Filing 268 and 269). Judge Urbom denied such motions
and withheld judgment in the matter until all issues are
concluded. (Filing 448).

To restate, the three remaining issues necessary for
the final resolution of this case are:

1. whether the plaintiffs and the intervenor
have standing and capacity to sue in this case;

2. whether all indispensable, proper or neces-
sary parties have been joined in this case such that the
court can provide adequate relief; and

3. whether title to the Central Park East is de-
fective, thereby causing a conversion under the Land and
Water Conservation Fund Act resulting in some basis by
which the court may generally take remedial measures as
to Jobbers Canyon or the Redevelopment Project. (Filing
429).

II.

I turn first to the issues of standing and capacity
Although closely related, the issues of standing and

App. 26

capacity in my view are not the same. | believe that it
may be possible for an entity to have standing under
article III of the Constitution, yet not have the capacity to
institute the suit. I turn then to the issues of standing and
capacity. I shall briefly and generally set out the issues,
and then address the issues in relation to each plaintiff
and intervenor.

As to standing, as Judge Urbom observed when he
denied the motion for a temporary restraining order and
preliminary injunction, the power of a federal court is
both granted and limited by article III of the Constitution

The power of this court to decide this mat-
ter is granted by Article III of the constitution.
To ensure that federal courts assume jurisdiction
only over Article III “cases and controversies,”
Supreme Court Decisions have instructed that

at an irreducible minimum, Art. III requires
the Party who invokes the court’s authority
to “show that he personally has suffered
some actual or threatened injury as a result
of the putatively illegal conduct of the de-
fendant,” ... and that the injury “fairly can
be traced to the challenged action” and “is
likely to be redressed by a favorable deci-
oe

Valley Forge Christian College v. Americans United for

Separation of Church and State, Inc., 454 U.S. 464, 472
(1982) (citations omitted).

(Filing 25, pages 4-5).

In a general sense, the “standing” issues in this case turn
on determination of whether the complaining party sut-

fers or will likely suffer any cognizable injury by the acts

App. 27

complained of in the complaint which are alleged to have
been done or threatened by the defendants.

As to capacity, this issue arises with regard to the
meaning and scope of the “sue and be sued” clause of the
congressional enactment creating the nonprofit inter-
venor, the National Trust for Historic Preservation in the
United States (“Trust”), 16 U.S.C. § 468c(b). The question
arises in the context of the Trust’s suit in this case against
federal defendants and nonfederal defendants in an ef-
fort, among other things, to enforce the “anticipatory
demolition” regulations of a federal agency, the Advisory
Council on Historic Preservation (“Advisory Council”) by
forcing a so-called “section 106” consultation with the
Advisory Council. Id. § 470f. The Intervenor’s Amended
Complaint for Declaratory and Injunctive Relief (filing
326) alleges in pertinent part that the Trust brings the
action to require the defendants to comply with federal
law including the “regulations of the Advisory Council
on Historic Preservation implementing the NHPA” and
seeks an injunction preventing “the defendants from un-
dertaking anticipatory demolition within the Jobbers
Canyon Historic District until defendants have complied
fully with the applicable statutory and regulatory re-
quirements.” (Filing 326, page 2)

The Trust is a nonprofit corporation created by Con-
gress, while the Advisory Council is an independent
agency of the United States. Compare id. § 468 with id
§ 470i. The Advisory Council did not seek to become a
party to this litigation, but instead has indicated by way
of affidavit received into evidence that although Congress
granted it the power to litigate, id. § 470m(b), the Adviso-
ry Councii questions its authority to sue sister federal

App. 28

agencies and rather relies upon the Trust to advance in
litigation the interests of Advisory Council. (Exhibit
246(23), Affidavit of John M. Fowler, General Counsel of
the Advisory Council).

Specifically, the capacity issue is whether Congress
has authorized the Trust to sue federal agencies and
nonfederal defendants, where the Trust has no present or
contemplated future interest in the buildings being de-
molished, save for its generalized interest in preservation
of historic buildings, particularly where the Advisory
Council questions whether the Advisory Council’s “suit
powers” extend to other federal agencies. Thus, the court
should determine whether the Trust’s “sue and be sued”
clause must be narrowly construed to prohibit suits
against federal agencies and nonfederal defendants. See
Loeffler v. Frank, 56 U.S.L.W. 4554, 4555-56 (U.S. June 13,
1988) (broadly interpreting the “sue and be used” clause
regarding the United States Postal Service); Federal Hous-
ing Admin. v. Burr, 309 U.S. 242, 245 (1940) (broadly
interpreting the “sue and be sued” clause regarding the
Federal Housing Administration)

This analysis is to be undertaken with the under-
standing that when Congress charters a corporation such
as the Trust and authorized it to engage in business or
commercial ventures with the public, and permits it to be
“sue and be sued,” one cannot lightly assume that restric-
tions on that capacity should be implied. See Burr, 309
U.S. at 245. Rather, if the general authority to “sue and be
sued” is to be impliedly limited, one of the following
must be shown: (1) certain types of suits are not consis-

tent with the statutory or constitutional scheme; (2) an

App. 29

implied restriction is necessary to avoid grave inter-
ference with the performance of a governmental function;
or (3) “for other reasons it was plainly the purpose of
Congress to use the ‘sue and be sued’ clause in a narrow
sense.” Id.

Normally, issues of standing should be dealt with at
an early stage. Gladstone, Realtors v. Village of Bellwood, 441
U.S. 91, 115 n.31 (1979). However, it sometimes remains
to be seen whether the factual allegations of the com-
plaint necessary for standing will be supported ade-
quately by evidence at trial. Id. See Neighborhood Dev
Corp. v. Advisory Council on Historic Preservation, 632 F.2d
21,24 & n.2 (6th Cir. 1989) (stating that a complaint under
the National Historic Preservation Act was sufficient to
withstand a motion to dismiss where “use” of the historic
buildings was alleged, but the plaintiffs would be re-
quired to particularize the use at trial). Accordingly, |
took under advisement the motions to dismiss and mo-
tions for summary judgment directed at the standing
issues. | now recommend that said motions, both oral and
written, be denied, and the issues of standing and capaci-
ty be determined on the evidence adduced at trial

A

Judge Urbom has not had occasion to rule with re
gard to the issue of standing insofar as the Trust is
concerned. As to the issue of standing, the Trust claims
standing for itself and as a representative of its members
| shall discuss these related standing concepts - standing

for the corporation and as a representative of its members

- separately.

App. 30

(1)

I find that the Trust has standing for itself to assert
the allegations of the Trust’s amended complaint (filing
326).

The Trust has a statutory role in the implementation
of the NHPA by virtue of its membership in the Advisory
Council. 16 U.S.C. § 47011i(a)(8); (Exhibit 4011,
149:7-152:1-15 (Walter Deposition)). Accordingly, I believe
that the Trust has demonstrated a sufficient claim of
“injury in fact,” causation and “redressability” to find
standing.

In a similar situation, the court in Weintraub v. Rural
Electrification Admin., 457 F. Supp. 78 (M.D. Pa. 1978) held
that a state historic preservation officer had standing to
bring an action to enforce the NHPA because of the
statutorily assigned role of state historic preservation
officers in the designation and review process under the
NHPA. /d. at 88. Similarly, in this case, if the consultation
provision of the NHPA, 16 U.S.C. § 470f, is triggered by a
finding that there is a legally significant federal involve-
ment regarding Jobbers Canyon, then the Trust, through
its chairman, 16 U.S.C. § 470i(a)(8), would be entitled to
participate in a consultation designed to preserve Jobbers
Canyon.

Although the Advisory Council, and therefore the
Trust, does not have a veto over the destruction of histor-
ic sites as a result of the consultation, the process of
consultation is the congressional means by which federal
actions involving the destruction of historic sites are rec-
onciled with national historic preservation policy. Id.

ee ee oe

App. 31

§ 470f. Scholars have noted that it a “plaintiff is protest-
ing a claimed invasion of a generalized constitutional
injury, the Court appears to be more reluctant to find
standing .. . than in cases where the plaintiff is arguably
within the zone of interests protected by a federal statute,
or a statute appears to grant standing in the case.” 1 R.
Rotunda, J. Nowak & J. Young, Treatise on Constitutional
Law: Substance and Procedure 129-30 (1986). Thus, the stat-
utory remedy of consultation confers standing on an enti-
ty entitled by statute to participate in the consultation
Weintraub, 457 F. Supp. at 88. See Defenders of Wildlife v
Hodel, 851 F.2d 1035, 1037, 1039-1041 (8th Cir.1988) (hold-
ing that procedural injury may be a judicially cognizable
injury in fact for standing purposes, where conversation
groups claimed, among other things, that they would
suffer harm in fact by increased rates of extinction of
animals because the Secretary of the Interior had failed to
publish regulations requiring federal agency consultation
with the Secretary under the Endangered Species Act,
even though the Secretary could not veto the proposed
federal action as a part of the consultation under 16
U.S.C. § 1536(a)(2)).

The defendants argue that even if injury in fact and
causation have been shown, | must find that all parties
lack standing because I have previously found that the
court would not be authorized to enjoin the purely pri-
vate actions of the ODF and ConAgra (filing 261, part VI)
and thus, it is argued, that the injury is not redressable by
this court. If the injury is not redressable, then there is no
real controversy for the court to decide and standing is
lacking. However, I believe the defendants misunder-
stand the issue of redressability.

App. 32

While I continue to believe that this court is without
authority to en‘oin the purely private action of the ODF
and ConAgra regarding the Canyon, it does not follow
that the claimed injury is not redressable by the Court.
Defendants confuse the merits of the claim with the issue
of standing. As I have previously stated: “Certainly, if the
ODF were required to seek something,—or had sought
something, from a federal agency regarding the Canyon,
the agency and the court would have the power to control
the ODF insofar as the subject of the ODF’s involvement
with the agency.” (Filing 261, page 73). However, I found
on the merits that even if the ICC, the Corps of Engineers
or the Park Service had to conduct a full review of the
project, the agencies and therefore the court had no au-
thority to control the purely private actions of the ODF or
ConAgra. I came to this conclusion after reviewing the
evidence as to what ConAgra and the ODF intended to
do with the project in general and specifically the Can-
yon. After understanding these facts, I was able to deter-
mine that the agencies had no generalized regulatory
power over the ODF and ConAgra, and that the agencies
did not have specialized power to grant or withold
anything from the ODF and ConAgra regarding the Can-
yon because the ODF and ConAgra need not seek any-
thing from the agencies. (Filing 261, pages 72-73). Had
the facts been otherwise, the injury would have been
redressable by an injunction requiring consultation prior
to demolition.

The doctrine of standing “eschews evaluation of the
merits,” Coalition for the Environment v. Volpe, 504 F.2d
156, 168 (8th Cir. 1974) (referring to United States v. Stu-
dents Challenging Regulatory Agency Procedures, 412 U.S

App. 33

669, 689 (1973)). More pointedly, our circuit has specifi-
cally held, in the face of an argument that redressability
was not present, that “Congress itself has legislated the
requisite c. sation and redressability” under the Endan-
gered Species Act, where a private party sought injunc-
tive relief requiring the Secretary of the Interior to
publish regulations requiring federal agencies to consult
with the Secretary on actions taken abroad potentially
impacting upon endangered species. The court so held,
(a) even though the consultation might not stop the ac-
tion threatening the endangered species because the Sec-
retary after consultation could not veto the project, (b)
even where particular federal “action” agencies were not
parties to the suit, and (c) even where the foreign govern-
ments would not be required to halt the proposed action
by any steps taken by the Secretary or the agencies.
Defenders of Wildlife, 851 F.2d at 1041-44. The consultation
process examined in Defenders of Wildlife is the Endan-
gered Species Act (“ESA”), 16 U.S.C. § 1536(a)(2), which
is very similar to the consultation process provided for in
the NHPA, id. § 470f. The right of individuals to bring
suit for enforcement of the ESA, id. § 1540, is somewhat
similar to the “citizen suit” provisions found in the
NHPA, id § 470w-4. Thus, for essentially the same reasons
that the circuit court found the claimed injury “redress-
able” for standing purposes in Defenders of Wildlife, I find
the claimed injury here redressable for standing pur-
poses.

(2)

As Judge Urbom has observed (filing 25, pages 4-5),
in this case representational, or derivative, standing,

App. 34

wherein an entity asserts the interests of its members,
exists where three circumstances are present: (1) the indi-
vidual members would have standing to bring the action;
(2) the action is germane to the purpose of the entity; and
(3) neither the claim nor relief requires the participation
of the individual members. Hunt v. Washington Apple
Advertising Comm'n, 432 US. 333, 343 (1977); Warth v
Seldin, 422 US. 490, 511 (1975).

The Trust bases its claim to representational standing
on the testimony of two persons. The testimony of George
Haecker (Vol. IV, TR 1049:i-1084:17) establishes the fol-
lowing: he is a member of the Trust and wishes that the
Trust represent him; he is an architect living in Omaha,
Nebraska whose office is within three blocks of Jobbers
Canyon; for some twenty years he has been involved in
preserving historical sites in Omaha, Nebraska through
serving on public boards such as the Nebraska Historic
Preservation Board and the Omaha Landmarks Commis-
sion; he frequently tours Jobbers Canyon; he has held
walking tours of Jobbers Canyon for fellow professionals
and has sought consulting work with regard to buildings
within Jobbers Canyo.: and the adjacent Old Market area;
and as a professional architect, he believes that the loss of
the Canyon threatens him both professionally and per-
sonally, as the Canyon is one of the most important
collections of turn-of-the-century warehouses in the na-
tion.

Likewise, the testimony of Clark Strickland (Vol. IV
TR 1084:22-1132:10) establishes the following: he is a
member of the Trust and wishes that the Trust represent
him: he is a historian employed by the Trust as Regional!
Director of the Trust; while he lives in Denver, Colorado,

App. 35

he has visited Omaha, Nebraska often, both before and
after this litigation, having toured Jobbers Canyon on
each occasion; as a professional historian, he believes that
the loss of the Canyon threatens him both professionally
and personally, as the Canyon is one of the most impor-
tant collections of turn-of-the-century warehouses in the
nation.

Parenthetically, there is no factual dispute about the
historical and architectural significance of Jobbers Can-
yon, as the Canyon is listed on the National Historic
Register. The City of Omaha’s National Register nomina-
tion form describes the reasons why the Canyon is histor-
ically and architecturally important. (Exhibit 284).

The association need not have a large number of
members. United States v. Students Challenging Regulatory
Agency Procedures, 412 U.S. 669, 689-90 (1973) (holding
that an association of five law students had standing).
Not all members of the association must suffer the injury
for the association to have standing; indeed, if “its mem-
bers, or any one of them, are suffering immediate or threat-
ened injury as a result of the challenged action of the sort
that would make out a justiciable case had the members
themselves brought suit,” standing exists, if other ele-
ments of standing are established. Warth, 422 U.S. at 511
(emphasis added). See Pesticide Pub. Policy Found. v. Vil-
lage of Wauconda, 622 F. Supp. 423, 433-34 (N.D. Ill. 1985),
aff'd, 826 F2d 1068 (7th Cir. 1987) (holding that one
affidavit of one member was sufficient for standing, but
that the association lacked standing because the individu-
al participation of all members in the suit was required);
Action Alliance for Senior Citizens v. Shapp, 400 F. Supp.
1208, 1213-14 (E.D. Pa. 1975) (holding that the interests of

App. 36

six out of three thousand five hundred members were
sufficient to provide standing for an association).

What is difficult to determine is whether the alleged
“use” of Jobbers Canyon by the standing witnesses is the
type of use which makes out a “distinct and palpable”
injury for standing purposes when the use is threatened.
Warth, 422 U.S. at 501. Or stated otherwise: does the
“use” of Jobbers Canyon, which is comprised of privately
owned buildings in which none of the witnesses claim
any ownership interest nor even the legal right to touch
the buildings, create a distinct and palpable injury for
standing purposes, if, as here, the threatened “use,”
which defines the claimed injury, is essentially the ability
to view the private property from a public street?

If | were to write on a clean slate, | would hold that
the denial of the ability to view a privately owned, but
historically significant building, from a public street,
even by architects and historians having a professional
interest therein, is not a “distinct and palpable” injury.
See Landmarks Preservation Council v. City of Chicago, 1988
Ill. LEXIS 122 (Ill. Sup. Ct., Sept. 22, 1988) (holding that
neither a local preservation association nor the Chicago
Chapter of the American Institute of Architects, or the
members of such groups, had standing under state law to
claim injury based upon denial of the right to view histor-
ically significant buildings from a public street, although
also holding that the Trust had standing in its own right
because it was congressionally chartered to assert such
interests). However, I do not write on a clean slate.

App. 37

Our circuit has recognized in an environmental
standing case, based upon a concession of the govern-
ment, that “physical damage to a place an individual
personally visits . . . is a type of injury sufficient to confer
standing under Article III.” Defenders of Wildlife, 851 F.2d
at 1041. The Sixth Circuit Court of Appeals has stated the
following ina NHPA case: “We do not believe that injury-
in-fact is suffered only by residents of the neighborhood
in which the historically and architecturally significant
buildings are located. .. . [T]he [NHPA] created an inter-
est in the preservation of architecturally and historically
significant buildings to be protected by users of such
buildings.” Neighborhood Dev. Corp., 632 F.2d at 24. The
court also made clear its view that “[bly alleging ‘use’ of
the buildings’ aesthetic and architectural value, plaintiffs
met the Sierra Club standard,” id. at 23-24, even where at
least some of the threatened buildings, e.g., the Will Sales
Building, were privately owned. /d. And in another
NHPA case, a federal court found standing where a his-
toric courthouse was threatened based, in part, upon the
prior use of the courthouse by a lawyer who thus “be-
came acquainted with the purported esthetic values of
the Courthouse.” Save the Courthouse Comm. v. Lynn, 408 F.
Supp. 1323, 1332 (S.D.N.Y. 1975).

Here the court is presented with witnesses — an archi-
tect and a historian - who “use” the Canyon, albeit from
the street, and whose “use” of the Canyon is sufficiently
distinct from those who merely pass by the Canyon so
that, according to precedent, one can fairly conclude that
they have been injured in fact by the proposed demoli-
tion. I so find, and in finding so conclude that the mem-
bers of the Trust would have had individual standing to

App. 38

bring this action. The Trust has established that its mem-
bers have or will suffer sufficient injury in fact, the chal-
lenged action may be traced to the defendants, and the
challenged action may be redressed by a favorable deci-
sion. Furthermore, it is obvious that this action is “ger-
mane” to the Trust’s purpose and that neither the claim
nor the relief requires the participation of the individual
members. Accordingly, I conclude that the Trust has rep-
resentational standing.

B.

Judge Urbom found that the plaintiff known as Peo-
ple for Responsible Omaha Urban Development, Inc.
(“PROUD”), a Nebraska nonprofit corporation, lacked
standing because its institutional interests were nothing
more than a generalized interest in the demolition of
Jobbers Canyon, and its members would not otherwise
have standing to sue in their own right. (Filing 25, pages
4-5). Specifically, Judge Urbom found:

PROUD'’s primary purpose is “advocat[ing]
preservation of sites, buildings and objects of
cultural and historic significance as part of re-
sponsible urban planning for the City of Omaha
and to conduct public education programs
through lectures, tours and publications.” Com-
plaint ¥ 1. Of its “approximately 200 members,
some... own property in the Old Market histor-

ic district, and some .. . reside in the Old
Market and the Jobbers Canyon Historic Dis-
tricts, and all . . . derive benefit from Jobbers

Canyons’ [sic] significance as a cultural and his-
toric landmark.” Id. PROUD alleges that it will
suffer “injury in fact” from the defendants’ non-
compliance with NEPA and the NHPA. Id.

App. 39

PROUD ’s allegations do not establish that it
has standing to assert its own interests in this
case. It has not shown how the challenged ac-
tions will injure its ability to pursue its objec-
tives. See Sierra Club v. Morton, 405 U.S. 727, 735,
735 n.8 (1972) (requiring that association allege
that “it or its members would be affected” in
“their activities or pastimes by the . . . deve-
lopment”; an association must have more than
an interest in a problem). Nevertheless, “[e]ven
in the absence of injury to itself, an association
may have standing solely as the representative
of its members.” Warth v. Seldin, 422 U.S. 490,
511 (1975).

“{AJn association has standing to bring suit
on behalf of its members when: (a) its mem-
bers would otherwise have standing to sue
in their own right; (b) the interests it seeks
to protect are germane to the organization's
purpose; and (c) neither the claim asserted
nor the relief requested requires the partici-
pation of individual members in the law-
suit.”

International Union, United Automobile, Aerospace
and Agricultural Implement Workers of America v.
Brock, 54 U.S.L.W. 4764, 4766 (U.S. June 25,
1986), quoting and reaffirming Hunt v. Washing-
ton Apple Advertising Comm'n, 432 U.S. 333, 343
(1977).

The second two elements of the three-part
Hunt test easily are satisfied in the present case.
Concerning the first element, the complaint al-
leges that some members own land immediately
adjacent to Jobbers Canyon and that some live
in Jobbers Canyon or immediately adjacent. Yet,
while the complaint contains generalized allega-
tions of harm to PROUD, it says nothing about
the injury to its members. Cf. Weintraub v. Rural
Electrification Administration, 457 F. Supp. 78, 88

App. 40

(M.D.Pa. 1978) (association had standing under
NHPA because it alleged that “the aesthetic and
cultural well-being of the area in which” its
members resided “will be damaged”). PROUD,
therefore, lacks standing both in its individual
and representative capacities.

(Filing 25, pages 4-5).

Nothing changed at trial which would allow me to
conclude that Judge Urbom’s finding was incorrect re-
garding PROUD’s lack of standing for itself. Specifically,
unlike the Trust, PROUD can claim no statutory right to
participate in the sought-after consultation. Therefore, |
too find that PROUD lacks standing to maintain this
action for itself.

However, PROUD did generally sharpen it’s claim of
representational standing at trial generally, and specifi
cally regarding the first prong of the Hunt test. For exam-
ple, PROUD presented the testimony of Cynthia S. Tooker
Vol. VI. TR 1215:12-1228:10), a member of PROUD and
an Omaha, Nebraska architect who convinced me that she
had both a personal and professional interest in the Can-
von. For further example, PROUD presented the testi
mony of Douglas Meier (Vol VI, TR 1231:25-1268:25) a
member of PROUD and an Omaha, Nebraska structural
engineer with both a personal and professional interest in
jobbers Canyon. Nothing changed at trial to convince me
that Judge Urbom’s finding was wrong — that the second
and third prongs of the Hunt test are satisfied insofar as

PROUD’s claim to representational standing is con-
-erned. Thus, since I now find that the first prong of the
Hunt test was satisfied by PROUD at trial, and for sub-
stantially the same reasons that I found the Trust had

App. 41

representational standing to assert the interests of its
members, see part II(A)(2) of these findings, I also find
that PROUD has representational standing to assert the
interests of its members.

of

Judge Urbom found that plaintiff Roger Durand lack-
ed standing because Mr. Durand failed to show a relevant
interest in Jobbers Canyon and hew that interest might be
injured by the alleged noncompliance by the defendants
(Filing 25, page 5). Mr. Durand testified at trial (Vol VII,
TR 1612:2-1637:14). I find that Mr. Durand presented at
trial sufficient evidence to allow me to now conclude that
he has standing. I shall briefly summarize his testimony
as follows.

Mr. Durand is an architectural and graphic designer
who has done work on buildings in the so-called “Old
Market” area of Omaha, Nebraska adjacent to Jobbers
Canyon, and he has lived in the area for about twenty
years. Mr. Durand served the City of Omaha as a member
of both the Zoning Board of Appeals and the Landmarks
Heritage Commission. The Landmarks Heritage Commis-
sion exists to advise the City of Omaha on issues involv-
ing historic properties. Mr. Durand is still a member of
the Commission. Mr. Durand testified that as recently as
of April or May of 1988 he had completed for a client a
design for a restaurant to be located in the John Deere
building, which is a building situated in the Canyon. Mr
Durand frequently walks through the Canyon. Mr. Du-
rand testified among other things that the destruction of
jobbers Canyon has injured him in that it “completely

ell

App. 42

alters the environment of [his] home.” (Vol VII, TR
1625:5). He explained that he was damaged because the
adjacent Old Market area in which he lived was a “Na-
tional Registered district” adjacent and contiguous to the
Canyon and that the destruction of the one historic dis-
trict would damage the other historic district, thus dam-
aging Mr. Durand’s home apparently by changing the
aesthetic environment thereof. Mr. Durand also claims
injury to his business in that he will have fewer buildings
available to redesign compared to what existed in the
past when Jobbers Canyon and the Old Market area were
intact and available for renovation. As a member of the
City’s Landmarks Heritage Commission, Mr. Durand has
participated in hearings before the Commission and the
City Council and anticipates that he would participate, 1!
given the opportunity, in federal consultations regarding
the destruction of the Canyon

I believe that Mr. Durand has established himself as a
‘user” of Jobbers Canyon, whose interest in the Canyon
is unique and sufficiently particular that the destruction
of the Canyon will in fact cause him injury in the same
sense that I believed members of the Trust would have
had standing in their own right. See part II(A)(2) of these
findings. Much like the neighbors who “used” the histor-
ic buildings in Neighborhood Dev. Corp., 632 F.2d at 24, or
the lawyer who used the historic courthouse in Save the

Courthouse Comm'n, 408 F. Supp. at 1332 Mr. Durand has
standing in this case

App. 43

D.

Judge Urbom found that the plaintiff Mercer Man-
agement Company, a Nebraska for-profit corporation,
had alleged sufficient factual assertions to find standing
albeit only barely. (Filing 25, page 6). Judge Urbom stat-
ed:

Mercer Management Company alleges that
it “owns property within the Old Market Histor-
ic District located immediately adjacent to .
Jobbers Canyon,” and is the “main developer of
Omaha’s ‘Old Market’... .” Complaint 42. It
alleges that it will suffer injury from noncom-
pliance with NEP and the NHPA, and that “the
destruction of Jobber[s] Canyon will change ad-
versely the ambience [sic] of the Old Market.”
Id.

The defendants argue that the only injury
alleged by Mercer is economic, not aesthetic or
environmental, and that allegations only of eco-
nomic injury do not bring it within the “zone of
interests” protected by NEPA and the NHPA
There are at least two problems with the defen-
dants’ attack. First, their arguments are based
solely on unfavorable inferences from the com-
plaint. Mercer does not allege economic injury.
and there is no basis for concluding that it is
motivated solely by pecuniary interests. See
Monarch Chemical Works, Inc v. Exon, 452 F
Supp. 493, 499 (D. Neb. 1978), aff'd sub nom
Monarch Chemical works, Inc. v Thone, 604 F.2d
1083 (8th Cir. 1979).

Second, even assuming that Mercer’s con-
cerns largely are economic does not take it out-
Side the zone of interests of NEPA and the
NHPA. The zone of interests requirement is a
prudential principle, not an Article II limit on
federal court jurisdiction. Valley Forge, 454 US

App. 44

at 475. The Supreme Court recently explained
that, although sometimes generally listed as a
prudential consideration, zone of interests anal-
ysis primarily is applied in cases involving
claims under the Administrative Procedure Act,
and that “the test is most usefully understood as
a gloss on the meaning of S 702.” Clarke v. Secu-
rities Industry Ass'n, 55 U.S.L.W. 4111, 4114 n.16
(U.S. Jan. 14, 1987).

The cases cited by the defendants for the
proposition that Mercer is not within the zone of
interests of NEPA are distinguishable on their
facts. See Robinson v. Knebel, 550 F.2d 422 (8th
Cir. 1977); Churchill Truck Lines, Inc. v. United
States, 533 F.2d 411 (8th Cir. 1976); Monarch, 452
F. Supp. 493. Similarly, | do not read Weintraub,
457 F.Supp. 78, to support the defendants’ con-
tention that Mercer is outside the zone of inter-
ests to be protected by the NHPA. Thus,
Mercer’s allegations are barely sufficient to es-
tablish that its interest in the ambiance of the
Old Market will be injured by the defendants’
failure to seek review of its plans for Jobbers
Canyon, and that that injury is within the zone
of interests protected by NEPA and the NHPA.

(Filing 25, at page 6).

The testimony at trial of Mark Mercer (Vol VI, TR
1397-1430) did not detract from Judge Urbom’s initial
conclusion that standing existed, and I likewise so find. (1
note that Mercer may not actually “own” buildings in the
Old Market area, but it does manage, under contract,
certain buildings. A trust owns the buildings. This man-
agement interest is real and appears very nearly equiva-
lent to ownership, since the shareholders of the
corporation are the same as the trust beneficiaries who
hold equitable title to the buildings.)

App. 45

E.

Also at issue is the capacity of the Trust, a congres-
sionally chartered corporation, to sue federal agencies
and their head administrators as well as nonfederal de-
fendants. At oral argument, I asked counsel for the feder-
al defendants whether he was authorized to state that the
United States challenged the capacity of the Trust to sue
federal agencies. Counsel for the federal defendants indi-
cated that he had explicitly inquired of the Justice De-
partment and that he was authorized to so state. With this
understanding, I turn to the issue of capacity.

As to capacity, this issue arises with regard to the
meaning and scope of the “sue and be sued” clause of the
congressional enactment creating the nonprofit inter-
venor, the Trust, 16 U.S.C. § 468c(b). The question arises
in the context of the Trust’s suit in this case against
federal defendants and nonfederal defendants in an etf-
fort, among other things, to enforce the “anticipatory
demolition” regulations of a federal agency, the Advisory
Council on Historic Preservation (“Advisory Council”) by
forcing a so-called “section 106” consultation with the
Advisory Council. Id. § 470f. The Intervenor’s Amended
Complaint for Declaratory and Injunctive Relief (filing
326) alleges in pertinent part that the Trust brings the
action to require the defendants to comply with federal
law including the “regulations of the Advisory Council
on Historic Preservation implementing the NHPA” and
seeks an injunction preventing “the defendants from un-
dertaking anticipatory demolition within the Jobbers
Canyon Historic District until defendants have complied
fully with the applicable statutory and regulatory re-
quirements.” (Filling 326, page 2).

App. 46

The Trust is a nonprofit corporation created by Con-
gress, while the Advisory Council is an independent
agency of the United States. Compare id. § 468 with id
§ 470i. The Advisory Council did not seek to become a
party to this litigation, but instead has indicated by way
of affidavit received into evidence that although Congress
granted it the power to litigate, id. § 470m(b), the Adviso-
ry Council questions its authority to sue sister federal
agencies and rather relies upon the Trust to advance in
litigation the interests of Advisory Council. (Exhibit
246(23), Affidavit of John M. Fowler, General Counsel for
the Advisory Council)).

Specifically, the capacity issue 1s whether Congress
authorized the Trust to sue federal agencies and non-
federal defendants, where the Trust has no present or
contemplated future interest in the buildings being de-
molished, save for its generalized interest in preservation
of historic buildings, particularly where the Advisory
Council questions whether the Advisory Council’s “suit
powers” extend to other federal agencies. Thus, the court
should determine whether the Trust’s “sue and be sued”
clause must be narrowly construed to prohibit suits
against federal

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385020_1301%3A2. Public record. Not legal advice.
