# Petition for Writ of Certiorari — CLEAN v. City of Spokane

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 1998
- **Citation:** 525 U.S. 812

## Text

® Supreme Court, U.S.
FILED

J @T1807 NYS 18

No.

OFFICE OF THE CLERK

In The

Supreme Court of the United States

October Term, 1997
*
CLEAN (Citizens for Leaders with Ethics

and Accountability Now!), a Washington
non-profit corporation, et al.,

Petitioners,

CITY OF SPOKANE, et al.,

Respondents.
+

On Petition For Writ Of Certiorari
To The Supreme Court Of Washington

¢
PETITION FOR WRIT OF CERTIORARI

*
Counsel of Record Additional Counsel for
MicHaAeL. W. GENDLER Petitioners
BrRICKLIN & GENDLER, LLP STEPHEN K. EuGsTER
1424 Fourth Avenue Eucster Haske, P.S.C.
Suite 1015 100 Minnesota Building
Seattle, WA 98101 423 West First Avenue
(206) 621-8868 Spokane, WA 99204-0206

(509) 624-5566

SHAWN TimoTHY NEWMAN
1212 Jefferson Street
Suite 201

Olympia, WA 98501
(360) 357-7437

COCKLE LAW BRIEF PRINTING CO., (800) 225-6964
OR CALL COLLECT (402) 342-2831

QUESTION PRESENTED

Does the First Amendment protect citizens’ state-
created right of referendum against infringement by leg-

islative declarations of emergency which are not sup-
ported by compelling justifications and are not subject to
exacting judicial scrutiny?

PARTIES TO THE PROCEEDING

The petitioners are: CLEAN (Citizens for Leaders
with Ethics and Accountability Now!), a Washington non-
profit corporation; Spokane Research and Defense Fund,
a Washington non-profit corporation, Coalition for a New
Spokane, a Washington non-profit corporation; Priorities
First, a Washington political committee; Richard Adams,
an individual; John J. Talbott, an individual; and Marga-
ret Leonard, an individual.

The respondents are: City of Spokane, a Washington
first class charter city; Spokane Public Development
Authority, a City of Spokane public corporation; Citizens
Realty Company, a Washington corporation; and Lincoln
Investment Company of Spokane, a Washington corpora-
tion.

LIST OF PARTIES, PARENT COMPANIES,
AND NONWHOLLY OWNED SUBSIDIARIES

Pursuant to Rule 14.1(b) and Rule 29.6, petitioners
state that three of the petitioners are Washington non-
profit corporations and that none of them have any par-

ent companies or nonwholly owned subsidiaries.

ili

TABLE OF CONTENTS

Page

SERAMP EMRE. © PMP EIIOD, 65 osc isco es casvccccsncasns i

cemseee? 10) ities PROCEEDING ....... 0550 ccce es. ii
LIST OF PARTIES, PARENT COMPANIES, AND

NONWHOLLY OWNED SUBSIDIARIES.......... ii

I. OPINIONS AND ORDERS BELOW .......... 1

i I oa sees dinias'se ved ose db kew'ee « 1
Ill. CONSTITUTIONAL PROVISIONS AND

ORDINANCES INVOLVED .............2005 1

iv. Santumeems OF THE CASE.........5.6...... 3

V. REASONS FOR GRANTING THE PETITION... 12

ee RNAI ks pu et Ss 4 v'do sv osu e saag bans 21
EE Be any cc ned kee ckdwseccun la
ME MEL GSS Ce res pi Nak oleae kda'e ee ecco. 4la

APPENDIX C (excluding Appendices A and B of
the Order, consisting of the supe-
rior court’s docket sheet and a stip-
ulation pertaining to the contents

er ED yee ceive cececs 42a
8 Re ANGE CaN Rie? aca ay ee Ce na ERE IN 68a
seek Udy abu ioe Ws aw dd dels oA dees 74a
SEN, Bench os 00a 6 ¥ 0 0c eee Re ER inten s rdamaeee 93a
A a eel ss bk oe 100a

ie es 0s Cine ges ae edb bi 4s cle dn’ 104a

iv

TABLE OF AUTHORITIES

Page
FEDERAL CASES
Brown v. Hartlage, 456 U.S. 45 (1982) ......--+.++: 15-16
Buckley v. Valeo, 424 U.S. 1 fb Ge re ene te 15
Carey v. Brown, 447 U.S. 455 (1980)... 2.2. cc avev evens 19
Flood v. Kuhn, 407 U.S. 258 (1972)... 2.2... eee cere eee 15
Marbury v. Madison, 5 U.S. 137 (1803) ....--+++++++:> 20
Meyer v. Grant, 486 U.S. 414 (1988)....... 12, 15, 16, 17
PruneYard Shopping Center v. Robins, 447 U.S. 74
2 RE MUO EMER TET ce LONE te st CT ite 17
Simon & Schuster, Inc. v. New York Crime Board,
502 U.S. 105 (1991) ........ 2c cece eeewnseces 18, 19
Strate CASES
CLEAN uv. City of Spokane, 133 Wn.2d 455, 947 P.2d
We ees ree eter tree eRe Ly, 1, passim
CLEAN v. State, 130 Wn.2d 782, 928 P.2d 1054
Cin, | rT rere eee eee. oe 8-11, 13-15, 19-20
County of Spokane v. Valu-Mart, Inc., 69 Wn.2d 712,
419 P2d 993 (19GB) . 5. cece ec cce see cer esseccses 19
Save Our State Park v. Hordyk, 71 Wn. App. 84,
856 P.2d 734 (1993) ..... 2c crcceesnces 14, 18, 19, 21
State ex rel. Mullen v. Howell, 107 Wash. 167, 181 P.
20 CASTS) oko eines Vann eke 6 haan es ce vaaes 14

State v. Green, 94 Wn.2d 216, 616 P.2d 628 (1980) .... 12

Urevich v. Woodard, 667 P.2d 760 (1983)........-----. 17

Vv

TABLE OF AUTHORITIES - Continued
Page

CONSTITUTIONAL PROVISIONS
United States Constitution, First Amendment.. i, passim
Washington Constitution Article i Wa ee 9, 10

Washington Constitution Article XXIII, OE kts dv arcs 18

FEDERAL STATUTES AND REGULATIONS

oe OA 8 Se a eas ee 1

City OF SPOKANE REGULATIONS

meena Lary ties, 6 19 ae
Spokane City Charter, TN "a § ROSE terre) y ae tee
sponane City Charter § 19(b)...................... 2, 4
pponene City Charter 685 255 2, 3, 4
Spokane Municipal Code, § 2.02.130................ 4,5

Court Rutes

epee Cee Wa 0 a ee 13
Supreme Court Rule 10(c) ................... 13, 17, 18
apres: Count Rule 06. tla)... oS cs 15
wuprene Tort Bide 103 a ii
Pere SOONER P98 oo ee ce ii

Washington Rule of Appellate Procedure 2.5(a)(3) .... 12

Washington Rule of Appellate Procedure 12.4(d)..... 12

vi

TABLE OF AUTHORITIES - Continued

Page
TREATISES AND OTHER AUTHORITIES
Eule, Judicial Review of Direct Democracy, 99 Yale
L.J. 1503 (1990).....----++e+5: St pS eT TE es ok 18
Hamilton, Federalist Number 78.....+-++++++000crrees 20
Story, Commentaries on the Constitution of the
United States, § 451 (Thomas Cooley ed., 5th ed.
BOOTS 2c. coc vcs Koowapamany choskacs Saw imrn sO cone 19

|

:
;

PETITION FOR WRIT OF CERTIORARI

Petitioners CLEAN, et al., petition for a writ of cer-
tiorari to review the judgment of the Washington
' Supreme Court in this case.

I. OPINIONS AND ORDERS BELOW

The opinion of the Washington Supreme Court (App.
A, infra, 1a-40a) is reported at 133 Wn.2d 455, 947 P.2d
1169. The Washington Supreme Court’s order denying
petitioners’ motion for reconsideration (App. B, infra,
4la) is unreported. The order of dismissal of the trial
court (App. C, infra, 42a-67a) is unreported.

II. JURISDICTION

The Washington Supreme Court issued its opinion on
November 13, 1997. Petitioners timely moved for recon-
sideration on December 1, 1997. App. D, infra, 68a-73a.
On February 5, 1998, the Washington Supreme Court
issued its Order Denying Motion for Reconsideration.
The jurisdiction of this Court is invoked under 28 U.S.C.
§ 1257(a).

Ill. CONSTITUTIONAL PROVISIONS
AND ORDINANCES INVOLVED

The First Amendment to the United States Constitu-
tion provides, in relevant part:

Congress shall make no law... . abridging the
freedom of speech, or of the press; or the right
of the people peaceably to assemble, and to

petition the Government for a redress of griev-
ances.

Section 83 of the Spokane City Charter provides:
Section 83. Referendum.

If, prior to the date when any ordinance shall
take effect, a petition signed by qualified elec-
tors in number at least equal to ten percentum
of the total number of votes cast at the last
preceding general municipal election, shall be
filed with the clerk, protesting against the enact-
ment of such ordinance, it shall be suspended
from taking effect. Thereupon the council shall
reconsider such ordinance and, if it does not
entirely repeal the same, shall submit it to popu-
lar vote at the next municipal election; or, the
council, in its discretion, may call a special elec-
tion for that purpose; and such ordinance shall
not take effect, unless a majority of the qualified
electors voting thereon at such election shall
vote in favor thereof.

Section 19(a)(1) and (b) of the Spokane City Charter
provide:

Section 19. Ordinances — When Effective.

(a) The following ordinances may be passed by
the city council on the first reading by title and
shall take effect immediately upon passage,
unless otherwise provided in the ordinance:

1. An ordinance necessary for the immedi-
ate preservation of the public peace, health or
safety or for the immediate support of city gov-
ernment and its existing public institutions; pro-
vided it has in its preamble or body a statement

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of the facts giving rise to the necessity for imme-
diate effectiveness and it is passed by a vote of
one more than a majority of the council;

* + *

(b) All other ordinances enacted by the city
council shall take effect thirty days after the
date of their passage unless a later date is fixed
therein, in which event they shall take effect at
such later date.

IV. STATEMENT OF THE CASE

Petitioners seek review of decisions abridging their
fundamental right of referendum regarding an ordinance
to provide public financial support for a parking garage
and shopping mall project in downtown Spokane, Wash-
ington. App. A, infra, 2a.

As originally proposed, the ordinance committing the
City of Spokane to subsidize this project contained no
“emergency” clause. Accordingly, the ordinance would
have been subject to the public right of referendum
secured in § 83 of the Spokane City Charter. App. A, infra,
15a. However, on the day the ordinance came before the
Spokane City Council for a vote, the mall developer
delivered a letter demanding that the ordinance be
passed with an emergency clause making it “immediately
effective.” App. F, infra, 93a-99a. In response to the devel-
oper’s letter, the City Council of Spokane added a new
section 14 asserting an emergency and enacted Ordinance
No. C31823. App. E, infra, 74a-92a.

The effect of section 14 was to preclude exercise of
the right of referendum which otherwise was available to

the voters of the City of Spokane pursuant to § 83 of the
Spokane City Charter (reprinted on page 2, supra). Pur-
suant to § 83, the submission of a petition signed by ten
percent of the number of voters who voted in the last
preceding general elections suspends an ordinance from
taking effect, if the petition is submitted prior to the
effective date. Id. Upon submission of such a petition, the
City Council may either repeal the challenged ordinance
or submit it to popular vote. Id. The ordinance does not
become effective unless a majority of the voters vote in
favor of it. Id.

Spokane ordinances generally take effect 30 days
after the date of their passage. Spokane City Charter,
§ 19(b) (reprinted on page 3, supra). Accordingly, the City’s
voters have 30 days in which to obtain and submit the
required voters’ signatures for their petition. Here, peti-
tioner Priorities First presented a referendum petition to
the Spokane City Clerk three days after enactment of
Ordinance C31823, on January 30, 1997.1 After discus-
sions with the Clerk and City Attorney, Priorities First's
petition was assigned the number “Referendum Petition

1 This was done in accordance with Spokane Municipal
Code § 2.02.130, Commencement of Referendum, which provides:

A legal resident or political committee begins the
referendum process by requesting from the city clerk
the assignment of a referendum number and
identifying the ordinance, or section[s] thereof,
sought to be referred. If the clerk is satisfied that the
person is entitled to sponsor the petition, and if the
ordinance has not yet taken effect, then the Clerk
assigns the measure a number and furnishes to the
sponsor a copy of the ordinance.

97-1,” thereby certifying the City Clerk’s “satisf[action]
that the person is entitled to sponsor the petition
and ... the ordinance has not yet taken effect.” SMC
2.02.130, reprinted in note 1, supra.

The referendum proponents thereafter secured and
submitted nearly twice the number of signatures required
in support of their petition. Within 30 days, they submit-
ted referendum petitions signed by more than 8,000 elec-
tors, needing but 4,300 to qualify. (A copy of the petition
is reproduced as App. G, infra, 100a-103a. The proponents
submitted 550 pages with signatures.) Notwithstanding
the City Clerk’s prior assignment of a petition number,
the City refused to honor the referendum petition on the
basis that Ordinance No. C31823 had taken effect imme-
diately pursuant to the § 14 “emergency clause” which
was tacked onto the ordinance after the developers sub-
mitted their letter.

Section 19(a)(1) of the Spokane City Charter provides
for the immediate effectiveness of:

An ordinance necessary for the immediate pres-
ervation of the public peace, health or safety or
for the immediate support of city government
and its existing public institutions; . . .

See page 2, supra. Ordinance C31823 recited that
Spokane’s central business district (CBD) “has experi-
enced a serious economic decline . . . adversely affecting
the citizens of the City and causing deterioration of the
public and private investment in improvements and ser-
vices in the CBD...” App. E, infra, 80a. The ordinance
then recited the City’s receipt of the developer’s letter
“containing Project information and a deadline indicating

that time is of the essence concerning the Project and the
Facility, such that immediate assurances must be given by
the City in order for the Developer to proceed with the
Project, ...” App. E, infra, 81a.

These recitals set up § 14 of the ordinance, entitled
“Urgency and Emergency; Effective Date.” App. E, infra,
90a-92a. Section 14 stated that the ordinance will “have
the direct benefit of promoting the creation of employ-
ment in the CBD,” that it will “have the effect of stimu-
lating the economy,” and that it would provide other
recreational, cultural, and economic benefit. Id. Section 14
then stated that the mall and garage project could not
proceed unless the ordinance took effect immediately:

The City further recognizes that the Developer
must immediately execute leases to commit
Nordstrom, plus other major tenants to the Pro-
ject otherwise the Project will not be ready for
occupancy and operation by the dates contrac-
tually required. If this contractual promise can-
not be performed the Project will not be built
and severe economic and other consequences
will ensue.

Id. at 91a. Section 14 concluded:

Based on such facts, the Council finds and
declares that an urgency and emergency exists
such that this Ordinance shall be immediately
effective upon adoption in order to preserve the
public peace, health or safety and provide sup-
port of the City government and its existing
public institutions, facilities, and infrastructure.

Id. at 92a.

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These statements were based on the developer’s let-
ter submitted on the day that the emergency clause was
tacked on and the ordinance adopted. The developer
stated:

If the City’s action in pledging the parking
meter revenue is not effective and finalized
tonight, these retailers will not commit to the
required time schedule to come downtown. A
delay of 30 days or even two weeks is fatal
because the final approval of the HUD 108 loan,
private financing, and issuance of the bonds are
all contingent on each other . . . If these retailers
cannot be assured within the next week that the
City has made its final irrevocable commitment
to the garage through pledging of parking meter
revenues, the other components of the project
cannot be timely finalized in order to begin
Spring demolition and construction to meet Sep-
tember 1997 and March 1999 deadlines. To put it
simply, a delay of 30 days while awaiting effec-
tuation of the off-street parking ordinance will
kill the project.

App. F, infra, 96a-97a.2

? The developer’s statements later proved false. Demolition
did not begin in the spring, but rather began some six months
later (a delay 12 times longer than the developer asserted would
be “fatal” and six times longer than the developer stated
“would kill the project”) on October 14, 1997. In November, 1997
when the Washington Supreme Court wrote that “the project
must begin construction in September 1997” (App. A, infra, 17a)
that date already had passed without commencement of
construction or even demolition.

Similarly, section 14 recited that “the Developer must
immediately execute leases to commit Nordstrom.” The

Petitioners challenged the ordinance in three separate
superior court lawsuits which were consolidated. Peti-
tioners appealed dismissal of their consolidated actions
to the Washington Supreme Court. Petitioners challenged
the City’s financial participation in the mall and garage
project on a number of grounds, relying upon state law
and the Washington Constitution. The Washington
Supreme Court refused to inquire into the City Council's
emergency declaration, instead deferring to that declara-
tion “unless it is ‘obviously false and a palpable attempt
at dissimulation.’” App. A, infra, 17a.

The court quoted the City Council’s findings that
downtown Spokane has “experienced a serious economic
decline” and that the commitments “ ‘must immediately
be received’ by the Developers in order for the project to
be completed on time.” Jd. The court made no inquiry
into whether these statements of urgency established that
immediate effectiveness was necessary “for the immedi-
ate preservation of the public peace, health, or safety,” or
“for the immediate support of city government and its
existing public institutions.” Spokane City Charter,

§ 19(a)(1).

The court held that its decision was controlled by its
recent decision in CLEAN uv. State, 130 Wn.2d 782, 928 P.2d
1054 (1996). App. A, infra, 16a. There, the court had
upheld an emergency clause in a state law passed to
provide public support for a new baseball stadium on the
basis that the Legislature reasonably could believe that

developer announced the signing of a lease with Nordstrom
more than a year later.

: losing the Seattle Mariners major league baseball team
“would produce a detrimental economic effect.” App. A,
infra, 16a. In the baseball stadium case, the court held that
the term “public peace, health, or safety” was coextensive
with the state’s “police power.” CLEAN v. State, 130
Wn.2d at 804, 928 P.2d at 1065. The only limitation on
exercise of the police power, and hence the only restric-

tion on the government's ability to preclude the citizenry
' from exercising their reserved constitutional right of ref-
erendum, was whether an action would “reasonably tend
to promote some interest of the State...” Id. at 804-05,
928 P.2d at 1065.5

Four justices of the Washington Supreme Court
4 expressed their concern that the majority’s decision in
this case, together with the recent decision in CLEAN v.
State, had eviscerated citizens’ right of referendum. Jus-
tice Guy had dissented in CLEAN v. State, but now
acceded to the principle established in the two cases that
“the economic welfare of a region may give rise to the
kind of ‘emergency’ for which emergency legislation may
be validly used.” App. A, infra, 21a. Justice Madsen (who
7 also had dissented in CLEAN v. State) now concurred
because “CLEAN v. State dramatically altered judicial
review.” App. A, infra, 22a. She explained:

* CLEAN wv. State involved the referendum power reserved
to the people of Washington in Washington Constitution Article
II, § 1(b). In this case, the court found that the earlier CLEAN
decision “is controlling” because “Section 19 of the Spokane
City Charter is identical in relevant part to the constitutional
provision interpreted in CLEAN [v. State].” App. A, infra, 16a.

10

After CLEAN, this Court no longer conducts an
independent analysis of whether a law is neces-
sary for the immediate preservation of the pub-
lic peace, health, or safety within the meaning of

_Const. art. IL, § 1(b). The emergency exception is
now coextensive with police powers.

App. A, infra, 22a-23a.

Justice Sanders (who authored the dissent in CLEAN
v. State) concurred “reluctantly.” He expressed his “great-
est reluctance” with the majority’s “imprimatur to the
preposterous notion that a new parking garage for Nord-
strom’s is ‘necessary for the immediate preservation of
the public peace, health or safety ...’” App. A, infra,
23a. Justice Sanders recognized the effect of the first
CLEAN decision:

But this result is compelled by the majority deci-
sion in CLEAN v. State, 130 Wn.2d 782, 928 P.2d
1054 (1996) wherein this court virtually repealed
the citizens’ constitutional right to referendum
by allowing the Legislature to inoculate itself
against referendums through conclusory emer-
gency clauses not subject to meaningful judicial
review ...

Id. Justice Sanders concluded:

Once the constitutional well has been poisoned,
we all must drink from it lest the incentive to
correct our mistakes in a principled fashion be
lost by inconsistently imposing them.

App. A, infra, 24a. Even Spokane City councilmembers
who voted to include the emergency clause recognized
that there was no true “emergency” in the ordinary

Pe, ae

11

(“Webster’s definition”) of the word, and that the emer-
gency existed only in the “legalese” established by
CLEAN v. State. App. H, infra, 104a-105a. A second coun-
cilmember found “very troubling” the use of the word
“emergency” outside the context “of public safety,” id.,
107a, but also voted for the clause.

Chief Justice Durham (who had joined in the majority
opinion in CLEAN v. State) dissented. After tracing the
judicial history of cases in which the Washington
Supreme Court had invalidated emergency clauses
because “the factual bases for the alleged emergencies
were not emergent,” App. A, infra, 25a-29a, she quoted
from a 1945 opinion of the court:

We think it too clear to require argument that
the legislature cannot defeat the constitutional
right, reserved by the people . . . by merely
inserting in an act...

“This act is necessary for the immediate preser-
vation of the public peace, health and
safety...”

App. A, infra, 29a (emphasis in court’s 1945 opinion).

Upon completing her review of the case law, Chief
Justice Durham summarized:

Thus, this court has never given conclusive
effect to the assertion of emergency itself. To do
so would be to abdicate our duty to evaluate the
constitutionality of legislative action. It would
be no different than deferring to a legislative
declaration that an act were necessary to further
a compelling state interest. Instead, this court
has upheld declarations of emergency only

12

when the facts established a need for immediate
response to public peril.

App. A, infra, 38a.

In response to the majority’s decision that emergency
clauses thwarting the fundamental right of referendum
no longer are subject to meaningful judicial review in
Washington, petitioners sought reconsideration. Peti-
tioners’ motion for reconsideration asserted that the
majority decision imposed a new burden on core political
speech in violation of the First Amendment. App. D,
infra, 68a-73a. Petitioners argued that the Washington
Supreme Court’s new deferential standard of review did
not satisfy the standard of this Court’s cases applying
“exacting scrutiny” to state action which burdens core
political speech, quoting Meyer v. Grant, 486 U.S. 414, 420
(1988).4 The Washington Supreme Court called for a
response to the motion for reconsideration pursuant to
RAP 12.4(d), but thereafter deniéd the motion without
opinion. App. B, infra, 41a.

V. REASONS FOR GRANTING THE PETITION

The Washington Supreme Court has changed the
rules by which state and local governments may deny

* Under Washington law, a constitutional right may be
raised for the first time on appeal. State v. Green, 94 Wn.2d 216,
231, 616 P.2d 628 (1980); Washington Rules of Appellate
Procedure (RAP) 2.5(a)(3). Respondents’ response to
petitioners’ motion for reconsideration acknowledged
petitioners’ entitlement to raise the constitutional issue at this
stage of the proceedings.

iota ca al

13

Washington citizens their fundamental right of referen-
dum. Prior to that court’s decision in this case and in
CLEAN wv. State, supra, the rule was that only those laws
“necessary for the immediate preservation of the public
peace, health, or safety” are excepted from the citizens’
referendum power, and that Washington courts would
look behind legislative declarations of emergency to
determine whether the declared facts truly constitute an
emergency. Now, however, the exacting requirement that
a law must be necessary “for the immediate preservation
of the public peace, health, or safety” before the people’s
fundamental right of referendum could be denied has
been replaced by a rule that any law within the Legisla-
ture’s authority can be excepted by an unreviewable dec-
laration of emergency. CLEAN v. State, 130 Wn.2d at
830-41, 928 P.2d at 1078-83 (Sanders, J., dissenting). As
Justice Sanders stated, the “new rule” is:

If the Legislature says that the legislation is
exempt from referendum, it is.

Id. at 842, 928 P.2d at 1084.

This Court should grant review because the Washing-
ton Supreme Court has decided an important question of
federal law that has not been, but should be, settled by
this Court. Supreme Court Rule 10(c). Because the Wash-
ington court’s decision confirmed that a new constitu-
tional rule has been substituted by that court in place of
the plain language of the provision itself, this is not a case
where the asserted error consists of “the misapplication
of aproperly stated rule of law.” Supreme Court Rule 10.
Moreover, Justice Sanders made clear that the Washing-
ton Supreme Court must now stand by its erroneous new

14

rule, as correcting the mistake would confirm that the
Constitution had been bent to accommodate baseball.
App. A, infra, 24a.

The Washington court’s new constitutional rule thus
is established in two of the court’s decisions, CLEAN 2.
State and this case. Petitioners believe that the critical
error below worthy of this Court's attention is the substi-
tution of a lax and deferential “police power” standard
for the exacting language of the Washington Constitution
and Spokane City Charter, which demanded that an ordi-
nance be “necessary for the immediate preservation of
the public peace, health, or safety” before the right of
referendum could be abridged. Further, in establishing a
new rule of deference to the Legislature, the Washington
court neglected its own prior recognition that the
reserved right of initiative and referendum is “the first of
all the sovereign rights of the citizen — the right to speak
ultimately and finally in matters of political concern.”
State ex rel. Mullen v. Howell, 107 Wash. 167, 171, 181 P. 920
(1919). The Washington court's new rule of deference fails
to appreciate that the issue “is not a question involving
the separation of judicial from legislative power but the
separation of the power of the people from legislative
encroachment.” CLEAN v. State, 130 Wn.2d at 827, 928
P.2d at 1076 (Sanders, J., dissenting). See also Save Our
State Park v. Hordyk, 71 Wn. App. 84, 91, 856 P.2d 734
(1993) (deference should be given to “the people and
their right of initiative” rather than to the legislative body
seeking to deny that right).

Accordingly, petitioners essentially are asking this
Court to review both of the Washington court’s recent
decisions, as the constitutional error pervades both of

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15

them.* As Justice Sanders pointed out in this case, “the
constitutional well has been poisoned” by the need per-
ceived in CLEAN v. State to ensure that major league
baseball remains in Seattle. App. A, infra, 24a. Accord-
ingly, a “subsidiary question fairly included” (Supreme
Court Rule 14.1(a)) is:

Is Ken Griffey, Jr. more important than the Con-
stitution?®

Of course, the more important question fairly
included within this petition is whether these fundamen-
tal constitutional rights are protected by the United States
Constitution as well as by state constitutions and local
charters. This Court’s decision in Meyer v. Grant, 486 U.S.
414 (1988) protected on First Amendment grounds citi-
zens’ right to pay initiative signature gatherers in support
of their state constitutional initiative right. The Court
held that signature gathering was “core political speech,”
486 U.S. at 420, such that state restrictions must be subject
to “exacting scrutiny.” Id., citing Buckley v. Valeo, 424 U.S.
1, 45 (1976). See also Brown v. Hartlage, 456 U.S. 45, 60

° Of course, the judgment in CLEAN v. State is final and not
subject to this Court’s direct review. But it is the flawed
constitutional rule established in the two cases which this Court
can and should correct.

® Mr. Griffey is a star player for the Seattle Mariners
baseball team. Petitioners do not presume, as did the
Washington Supreme Court, that this Court has special
expertise with respect to the importance of a major league
baseball team to a community. CLEAN v. State, 130 Wn.2d at 781,
n.8, quoting Flood v. Kuhn, 407 U.S. 258, 266 (1972). Nor will
petitioners speculate as to the expertise and sentiments of this
Court regarding shopping centers, Nordstrom stores, and
parking garages.

16

(1982) (“the State’s fear that voters might make an ill-
advised choice does not provide the State with a compel-
ling justification for limiting speech”).

The Court in Meyer did not decide whether a state
may restrict not only the manner in which these citizens’
rights are pursued but also the very core of the right,
consistent with the First Amendment. See id. at 424 (“the
First Amendment protects appellees’ right not only to
advocate their cause but also to select what they believe
to be the most effective means for so doing”). However,
several of the Court's statements provide strong support
for petitioners’ contention here that this right is federally
protected. This Court quoted with approval the Court of
Appeals’ en banc decision it was affirming, including that
court’s holding:

Having decided to confer the right, the State
was obligated to do so in a manner consistent
with the Constitution because . . . this case
involves “core political speech.”

Id. at 420.

The Court itself observed two separate restrictive
effects inherent in the Colorado law which it found to be.
of federal constitutional dimension. In addition to limit-
ing the number of voices who can convey the sponsor’s
message:

Second, [the prohibition on paid signature gath-
erers] makes it less likely that appellees will
garner the number of signatures necessary to
place the matter on the ballot, thus limiting their
ability to make the matter the focus of statewide
discussion.

aah ili le ie NL ay

17

Id. at 422-23. This second consideration demonstrates the
Court’s recognition that the initiative (and referendum)
process itself is deserving of First Amendment protection,
in addition to the protection afforded speech promoting
an initiative measure. The Washington court’s new rule
aliows the state routinely to prevent citizens from placing
matters on the ballot and making them a “focus of state-
wide discussion,” rather than merely “limiting” citizens’
ability or making their measure “less likely” to qualify. Id.

The Meyer Court again linked First Amendment pro-
tection directiy to the initiative process in describing as a
“burden on First Amendment expression” (id. at 423) a
Colorado statute which the Colorado Supreme Court said
“limit[s] the power of the people to initiate legislation.”
Id., quoting Urevich v. Woodard, 667 P.2d 760, 763 (1983)
(holding that statute must be “closely scrutinized”). In
other contexts, this Court has recognized that state con-
stitutional rights of speech and petition can exist on a co-
equal level with federally protected constitutional rights.
See, e.g., PruneYard Shopping Center v. Robins, 447 US. 74,
88 (1980) (state may enforce state constitutional right of
speech and petition against shopping center owner’s
right of private property).

In Meyer v. Grant, this Court stated its agreement
with the Court of Appeals’ conclusion that the Colorado
statute “trenches upon an area in which the importance
of First Amendment protections is ‘at its zenith.’ ” 486
U.S. at 425. That the people’s direct exercise of their
lawmaking authority deserves the highest First Amend-
ment protections demonstrates that the question not yet
decided in Meyer v. Grant should now be settled by this
Court in this case. Supreme Court Rule 10(c).

18

The right of referendum respecting legislative enact-
ments is secured by the people of 24 states. Eule, Judicial
Review of Direct Democracy, 99 Yale L.J. 1503, 1509 & n.22
(1990). Citizens of 21 states may enact ordinary legisla-
tion directly by initiative. Id. The large number of states
whose citizens’ rights of direct legislative power are
threatened by the prospect of judicial encroachment such
as that in the decision below is further reason why this
case presents an “important question” which “should be
settled by this Court.” Supreme Court Rule 10(c). See
Simon & Schuster, Inc. v. New York Crime Board, 502 U.S.
105, 115 (1991) (granting certiorari because “the Federal
Government and most of the states have enacted statutes
with similar objectives” such that “issue is significant and
likely to recur”).

This case does not raise the question whether a state
may repeal provisions of its Constitution, or add new
restrictions to rights of initiative and referendum through
constitutional amendment, without offending the First
Amendment.” Nor does the case require this Court to cast
about without firm footings to establish a proper consti-
tutional benchmark to secure protection of the citizens’

” An amendment of the Washington Constitution requires
approval of a majority of Washington’s voters. Washington
const. art. XXIII, § 1. Thus, only the people themselves can
restrict this fundamental right. The reservation of the right of
initiative and referendum was adopted as a constitutional
amendment by the people of Washington in 1912 “because they
had become impressed with the profound conviction that the
Legislature had ceased to be responsive to the popular will.”
Save Our State Park v. Hordyk, 71 Wn. App. 84, 89, 856 P.2d 734
(1993) (citation omitted).

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19

rights, for the proper standard is stated plainly in the
Washington Constitution and Spokane City Charter.

Had the Washington court applied the standards
stated plainly in the applicable provisions rather than
create a new judicial rule allowing abridgment of referen-
dum rights whenever the Legislature acted within its
“police power,” the court would have been acting consis-
tently with this Court’s First Amendment jurisprudence.
If an action is “necessary for the immediate preservation
of public peace, health, or safety,” Spokane City Charter,
§ 19(a)(1), then the state would be well placed to demon-
strate an “emergency” which provides “compelling justi-
fication” for denying a referendum. Compare Simon &
Schuster, Inc. v. New York Crime Board, 502 US. at 120-21
(compelling state interest in compensating crime victims
does not justify law limiting royalties to criminals
because law did not further the interest); Carey v. Brown,
447 U.S. 455, 461 (1980) (no compelling justification for
law prohibiting peaceful labor picketing of residences). It
is noteworthy that the constitutional and charter standard
here does not include the term “welfare,” the broad term
which almost always accompanies “public health and
safety” in the boilerplate formulation of the scope of a
government's police powers. E.g., County of Spokane v.
Valu-Mart, Inc., 69 Wn.2d 712, 716, 419 P.2d 993 (1966).
These standards should be construed in accordance with
their plain and ordinary meaning, especially because they
are constitutional words. See CLEAN v. State, 130 Wn.2d
at 826 & n.24, 928 P2d at 1075 & n.4, quoting Story,
Commentaries on the Constitution of the United States, § 451
(Thomas Cooley ed., 5th ed. 1891). See also Save Our State
Park v. Hordyk, 71 Wn. App. at 91.

20

If the Washington court had given these words their
plain and ordinary meaning as anyone who read the
Washington Constitution or Spokane City Charter would
understand them, it would have recognized that these
words demand exacting judicial scrutiny before restric-
tion of the right of referendum can be upheld. The Wash-
ington Constitution and Spokane City Charter already
incorporated this Court’s high standards for protection of
core political speech. The Washington court's “basic fal-
lacy” was its substitution of a much laxer standard which
allowed abridgment of this fundamental right for vir-
tually any reason the legislature might assert. CLEAN v.
State, 130 Wn.2d at 830, 928 P.2d at 1078 (Sanders, J.,
dissenting).

A second and equally basic fallacy which goes to the
heart of the First Amendment protection that should be
provided here is the Washington court’s extreme defer-
ence to the legislative declaration of emergency. Again,
the dissenting and reluctantly concurring decisions below
make clear that this deference is a new rule and not the
misapplication of a properly stated rule of law. E.g., App.
A, infra, 24a (Durham, C. J., dissenting) (“this court has
never granted such deference to a Legislature’s con-
clusory assertion that an emergency exists”). See also
CLEAN wv. State, 130 Wn.2d at 828-29 & nn. 27-28, 928 P.2d
at 1076-77 & nn.7-8 (majority’s new rule of deference is
contrary to principles of constitutional adjudication, quo-
ting extensively from the Federalist Number 78 and from
Marbury v. Madison, 5 U.S. 137, 176-80 (1803)). This
extreme deference is inconsistent with the “exacting scru-
tiny” courts must apply to state action which restricts
core political speech. See App. A, infra, 38a (Durham, ae

21

dissenting) (criticizing deference by majority here as “no
different than deferring to a legislative declaration that
an act were necessary to further a compelling status
interest”).

The Washington court’s new rule of deference is par-
ticularly disturbing because such deference opens the
door wide to abuse of the referendum right. Fifty years
ago the Washington Supreme Court better appreciated
this concern and “chided the Legislature for what it per-
ceived was an attempt to thwart the people’s constitu-
tional right of referendum” by adopting a “custom of
attaching emergency clauses to all sorts of bills, many of
which cannot by any stretch of the imagination be
regarded as actually emergent.” Save Our State Park v.
Hordyk, 71 Wn. App. at 90, n.6 (citation omitted). That
court has now forgotten its own historical knowledge of
the reasons for zealous judicial protection of the people’s
rights, as well as the rule itself. This Court’s review is
warranted to enable the Court to decide whether the First
Amendment's protection of core political speech against
such legislative (and now judicial) curtailment encom-
passes the exercise of initiative and referendum rights
secured by a state’s constitution.

VI. CONCLUSION
The Petition for Writ of Certiorari should be granted.

Respectfully submitted,
Brickun & GenpDLER, LLP

Micuaet W. GENDLER
Counsel of Record for Petitioners

MAY, 1998

la

APPENDIX A

CLEAN (Citizens for leaders with Ethics and
Accountability Now!), a Washington nonprofit
corporation; Spokane Research & Defense
Fund, a Washington nonprofit corporation;
coalition for a new Spokane, a Washington
non-profit corporation; Priorities First, a Wash-
ington politicat committee; Richard Adams,
John Talbott, and Margaret Leonard, Appel-
lants,

Vv.

CITY OF SPOKANE, a Washington first class
charter city; the Spokane City Council; and
Spokane Public Development Authority, a City
of Spokane public corporation, Respondents,

and

Citizens Realty Company, a Washington corpo-
ration; and Lincoln Investment company, a
Washington corporation, Respondents.

No. 65262-7.

Supreme Court of Washington,
En Banc.

Argued June 18, 1997.
Decided Nov. 13, 1997.

Eugster & Haskell, Stephen K. Eugster, Spokane, for
Appellants.

Stanley M. Schwartz, Laurie Connelly, Asst. City
Attys., Perkins, Coie, Thomas F. Kingen, Witherspoon,
Kelley, Davenport & Toole, Duane M. Swinton, Spokane,
for Respondents.

DOLLIVER, Justice.

2a

CLEAN et al. challenge by direct review a Spokane
ordinance providing public support for a new parking
garage in downtown Spokane.

Respondents/Intervenors Citizens Realty Company
and Lincoln Investment Company (Developers) own
River Park Square shopping mall and garage in down-
town Spokane. In early 1995, the Developers approached
the City of Spokane (City) asking for assistance with the
renovation and expansion of the mall parking garage as
part of a plan to redevelop River Park Square (RPS). The
redevelopment includes a new Nordstrom store to
replace the existing store on which Nordstrom’s lease will
expire January 31, 1999. Nordstrom has not stated for the
record whether it will remain downtown if the RPS pro-
ject fails to materialize. Project Proponents predict that
the RPS redevelopment will create jobs, increase tax reve-
nue, and improve cultural and recreational opportunities
in downtown Spokane.

The Developers will renovate the parking garage and
then sell it to the Spokane Downtown Foundation, a
nonprofit corporation (Foundation). The Foundation
intends to issue tax-exempt bonds on behalf of the City
payable from garage revenues. The Foundation will lease
the garage to the Spokane Public Development Authority
(PDA), which will operate the facility. The Developers
will lease the land to the Foundation and the Foundation
will assign that lease to the PDA.

When the bonds issued by the Foundation are
retired, the City will acquire ownership of the garage at
no cost. The City has contingently pledged parking meter
revenue to cover the garage operating expenses and the

3a

ground lease payments in the event garage revenues are
insufficient to meet the facility’s expenses.

The City applied for an Economic Development
Grant (EDI) and a section-108 guaranteed development
loan from the United States Department of Housing and
Urban Development (HUD). HUD has awarded the City a
$1 million EDI grant. The section-108 loan application
was still pending as of the date the Respondents’ brief
was submitted to this court. The City has pledged its
future Community Development Block Grant funds to
repay the section-108 loan if the Developers default.

The Developers submitted a State Environmental Pol-
icy Act (SEPA) checklist to the City. The City issued a
Mitigated Determination of Nonsignificance for the pro-
ject on July 2, 1996. This decision was not appealed
administratively.

On January 27, 1997, the Spokane City Council
approved Ordinance C31823 (the Ordinance) which
authorizes City support for the RPS garage. On January
30, 1997, Appellant Priorities First presented a referen-
dum petition to the Spokane City Clerk, seeking to over-
turn the Ordinance. Although referendum proponents
collected over 8,000 signatures, the City refused to honor
the referendum petition because the City Council
declared that an emergency existed when it adopted the
Ordinance, rendering the Ordinance effective imme-
diately and precluding a referendum.

CLEAN et al. (Appellants) brought this action in
Spokane County Superior Court to challenge several
aspects of the City and PDA’s participation in the project,
seeking declaratory and injunctive relief. The trial court

4a

granted summary judgment to the City, PDA and Devel-
opers (Respondents). This court granted direct review on
May 9, 1997.

The standard ot review of a trial court's order grant-
ing summary judgment is de novo. Wilson v. Steinbach, 98
Wash.2d 434, 437, 656 P.2d 1030 (1982). Summary judg-
ment is appropriate where the parties’ pleadings, affi-
davits, and depositions establish that there are no
genuine issues of material fact and that the movant is
entitled to a judgment as a matter of law. Wilson, 98
Wash.2d at 437, 656 P.2d 1030. When considering a
motion for summary judgment, the court shall consider
the evidence in the light most favorable to the nonmoving
party. Wilson, 98 Wash.2d at 437, 656 P.2d 1030.

(1) Has the City acted in excess of its municipal author-
ity under the off-street parking statutes - RCW
35.86.050 and RCW 35.86.010?

Appellants first argue the City violated RCW
35.86.050 because it failed to develop a comprehensive
parking plan before enacting the Ordinance. The statute
provides:

In the establishment of off-street parking
space and/or facilities, cities shall proceed with
the development of the plan therefor by making
such economic and physical surveys as are nec-
essary, shall prepare comprehensive plans there-
for, and shall hold a public hearing thereon
prior to the adoption of any ordinances relating
to the leasing or acquisition of property. .. .

RCW 35.86.050.

5a

Respondents correctly observe that the statute does
not discuss the level of specificity required of a compre-
hensive plan. The only case interpreting RCW 35.86.050 is
In re Petition of City of Auburn, 65 Wash.2d 560, 398 P.2d
723 (1965). In City of Auburn, this court observed that,
“there seem to be no guiding principles for the prepara-
tion of ‘comprehensive plans.’ ” 65 Wash.2d at 563, 398
P.2d 723. Respondents argue that, if the Legislature had
so intended, it could have prescribed a very specific set of
criteria for municipalities to follow when preparing com-
prehensive plans under RCW 35.86.050, as is evidenced
by the specificity called for in the Growth Management
Act (RCW 36.70A.070).

Lacking case law interpreting the level of specificity
required by this particular statute, the trial court relied by
analogy upon Hutchinson v. Port of Benton, 62 Wash.2d
451, 383 P.2d 500 (1963). In Hutchinson, we held the Port
of Benton had satisfied a statutory requirement that it
adopt a comprehensive harbor development plan before
expanding the port because it had given “a fairly detailed
picture” of what the project entailed. Hutchinson, 62
Wash.2d at 457, 383 P.2d 500. We acknowledged that the
plan was not a “model of preciseness,” but upheld the
project because the plan was sufficient to inform the
taxpayers of how their money was to be spent. Hutchin-
son, 62 Wash.2d at 457, 383 P.2d 500.

The trial court in this case held the City had com-
plied with RCW 35.86.050 because the statute does not
require a specific checklist but rather a process that pro-
vides the public with specific information about the pro-
ject. Because the City commissioned both a parking study
and a financial feasibility study and held three public

6a

hearings to elicit comments on the plan, the trial court
found the City had complied with RCW 35.86.050.

Respondents point out that, in addition to these mea-
sures, the City has adopted a Downtown Spokane Devel-
opment Plan (Plan), which addresses downtown parking
needs. In their Reply Brief, the Appellants claim the RPS
facility violates this Plan because the Plan calls for park-
ing at the Davenport Hotel. This assertion is false. The
Plan encourages the development of a parking facility
“near” the Davenport Hotel and the Opera House/Con-
vention Center. Ex. 6 at 13. The RPS garage is two blocks
to the north of the Davenport Hotel.

Appellants’ argument that the City violated RCW
35.86.050 is not persuasive. The City has held hearings
and commissioned studies for the project and has also
established that the facility conforms to the City’s com-
prehensive plan. These steps satisfy the requirements of
RCW 35.86.050, given case law defining “comprehensive
plan.”

Appellants also contend the City lacks the authority
to purchase the parking garage because the RCW requires
city parking facilities to serve, as their primary purpose,
persons who use the park or civic center facilities. RCW
35.86.010 states:

Cities . . . are authorized to provide off-
street parking space and facilities located on
land dedicated for park or civic center purposes,
or on other municipally-owned land where the
primary purpose of such off-street parking facil-
ity is to provide parking for persons who use
such park or civic center facilities. In addition a
city may own other off-street parking facilities

7a

and operate them in accordance with RCW
35.86A.120.

Appellants’ argument is without merit. The second sen-
tence of RCW 35.86.010 plainly authorizes a city to own
“other off-street parking facilities.” Appellants contend
that, because this portion of the statute requires such
facilities to be operated in accordance with RCW
35.86A.120 and because chapter 35.86A RCW allows cities
to establish parking commissions, the City is not allowed
to own “other off-street parking” unless it has created a
parking commission. RCW 35.86.010 merely states that
such facilities must be operated in accordance with RCW
35.86A.120 (which specifies under which circumstances a
city may or may not operate one of its parking facilities),
not that such a facility can be acquired only after a city
appoints a parking commission. The trial court properly
found the City was not required to create a parking
commission as a prerequisite to owning the RPS garage.

(2) Has the City failed to comply with the State Envi-
ronmental Policy Act?

The Developers submitted an environmental check-
list to the City as required by the State Environmental
Policy Act (SEPA) (RCW 43.21C). The City issued a Miti-
gated Determination of Non-significance on July 2, 1996.

Appellants sought review of this determination in supe-
rior court. The trial court barred the SEPA claim after
finding that Appellants failed to appeal the City’s deter-
mination through administrative channels.

8a

A plaintiff alleging noncompliance with SEPA must
exhaust administrative remedies before filing suit. Citi-
zens for Clean Air v. City of Spokane, 114 Wash.2d 20, 26,
785 P.2d 447 (1990). Where an agency has an appeal
procedure in place, an aggrieved person is required to
seek redress under that procedure before seeking judicial
review. RCW 43.21C.075(4). The City of Spokane has
adopted a specific administrative appeal process for
SEPA rulings. See Spokane Municipal Code (SMC)
11.10.170.

Appellants fail to prove or even allege they have
done anything to exhaust their administrative remedies.
There is no evidence in the record that Appellants filed
an administrative appeal. Where the record fails to show
that an aggrieved party has attempted to use the adminis-
trative appeals process, the court will conclude that no
appeal was made. Citizens for Clean Air, 114 Wash.2d at
27, 785 P.2d 447. The trial court therefore properly dis-
missed the SEPA claim.

(3) Has the City failed to comply with the Growth
Management Act?

Appellants assert the City has violated the Growth
Management Act (RCW 36.70A.120) by failing to follow
its comprehensive plan. The City responds it has yet to
adopt a comprehensive plan under the Growth Manage-
ment Act (the Act) and, therefore, cannot have violated
the Act. The trial court agreed and adopted the City’s
reasoning without elaboration.

The Growth Management Act requires first-class
cities to implement comprehensive plans by July 31, 1997.

9a

RCW 35.22.695. As of the date of oral argument, Spokane
had yet to implement a comprehensive plan under the
Act. Because there is no plan in place to violate, the City
cannot be said to have violated the Act.

(4) Has the City failed to comply with its comprehen-
sive plan?

Without citing to a specific ordinance, Appellants
also contend the City has violated its existing comprehen-
sive plan. Spokane adopted a comprehensive plan in
1983. See chapter 11.20 SMC. The plan allows for a broad
range of activities downtown. Appellants argue the RPS
redevelopment project violates the comprehensive plan’s
arterial street plan because it would close Post Street, an
arterial.

The City responds that Appellants have identified no
section of the arterial street plan that would prohibit the
vacation of an arterial. The City contends the RPS project
actually furthers the Spokane comprehensive plan
because the plan encourages development of projects that
attract shopping and entertainment in the downtown
area. The City is correct. The Appellants have failed to
allege any genuine violation of the Spokane comprehen-
sive plan.

(5) Has the City violated the Clean Air Act?

Appellants next assert the RPS project violates the
Washington Clean Air Act (RCW 70.94) because the City
has not obtained an air quality conformity determination.
Although Appellants do not cite which portion of the

10a

statute the City is allegedly violating, they are presuma-
bly referring to RCW 70.94.037, which would prevent the
City from approving the RPS project without first certify-
ing that the project conforms to the State implementation
plan of the federal Clean Air Act. The Respondents claim
that project developers prepared an air quality analysis as
part of the SEPA review process, and that this analysis
concluded that the project and its mitigation measures
will actually reduce carbon monoxide emissions.

Appellants’ argument is completely without merit.
The Developers prepared an air quality analysis (Ex. 85 at
01805-01822), and the City determined the project con-
formed to the Clean Air Act.

(6) Does the Ordinance violate article VI, section 1, of
the Washington Constitution by failing to serve a
public purpose?

Appellants next argue the RPS project violates article
VIL, section 1 (amend.81), of the Washington Constitution,
which states that all taxes “shall be levied and collected
for public purposes only.” Appellants contend the RPS
garage does not serve a public purpose because its expan-
sion is designed solely to meet the retail shopping needs
of the renovated RPS, a private entity.

We recently addressed this issue in CLEAN v. State,
130 Wash.2d 782, 792-93, 928 P.2d 1054 (1996). In CLEAN,
we held that public development of a major league base-
ball stadium serves a public purpose even though the
Seattle Mariners baseball club, a private entity, would
also benefit from the expenditure of public funds.

lla

CLEAN, 130 Wash.2d at 792-97, 928 P.2d 1054. We
explained:

“An expenditure is for a public purpose when it
confers a benefit of reasonably general character
to a significant part of the public.” In re Marriage
of Johnson, 96 Wash.2d 255, 258, 634 P.2d 877
(1981). “Where it is debatable as to whether or
not an expenditure is for a public purpose, we
will defer to the judgment of the legislature.”
Anderson v. O’Brien, 84 Wash.2d 64, 70, 524 P.2d
390 (1974).

The fact that private ends are incidentally
advanced is immaterial to determining whether
legislation furthers a public purpose.

CLEAN, 130 Wash.2d at 793 & 796, 928 P.2d 1054 (citation
omitted). We acknowledged in CLEAN that the degree to
which the baseball stadium would improve the economy
and quality of life was “debatable,” but held that this
question was best resolved by the people’s elected repre-
sentatives. CLEAN, 130 Wash.2d at 796-97, 928 P.2d 1054.

We must therefore defer to the judgment of the
Spokane City Council if the public benefit of this project
is at least “debatable.” The Ordinance contains at least 10
separate paragraphs articulating the reasons why the pro-
ject will benefit Spokane and meet a public need. Based
upon studies, documents, and public testimony, the City
found the project would create jobs, stimulate the econ-
omy, provide cultural opportunities, increase tax revenue,
thwart the economic decline of the downtown area, and
improve the quality of life. Given the fact that the City

12a

relied upon evidence that the project would confer var-
ious benefits, the public benefit of this project is at least
debatable. The project meets the public purpose test of
article VII, section 1, of the Washington Constitution.

(7) Does the Ordinance constitute a gift or a loan of the
credit of the State in violation of article VIII, sec-
tion 7, of the Washington Constitution?

Appellants next contend the RPS project amounts to
a gift of public funds and a lending of credit in violation
of the Washington Constitution. Respondents assert that
public support for the project does not constitute a gift or
a lending of credit because the City will receive a parking
garage in exchange for its assistance.

Article VIII, section 7, of the Washington Constitu-
tion states:

No county, city, town or other municipal
corporation shall hereafter give any money, or
property, or loan its money, or credit to or in aid
of any individual, association, company or cor-
poration, except for the necessary support of the
poor and infirm. . .

Appellants claim the City is violating this constitutional
provision in three ways: (a) the garage lease and ground
lease payments to be paid to the Developers are exces-
sively high, and the difference between the negotiated
prices and the market prices amounts to an unconstitu-
tional gift; (b) HUD assistance to the Developers is an
unconstitutional gift; (c) the pledge of parking meter
revenues is an unconstitutional lending of credit. Because

13a

the HUD assistance comes from the federal government,
not the City or State, this claim is meritless on its face.

CLEAN v. State employed a two-part test for analyz-
ing potential violations of article VIII, section 7. CLEAN,
130 Wash.2d at 797, 928 P.2d 1054. First, the court asks if
the funds are being expended to carry out a fundamental
purpose of the government. If the answer to this question
is yes, then no gift of public funds has been made. If not,
the court focuses on the consideration received by the
public and the donative intent of the appropriating body.
CLEAN, 130 Wash.2d at 798, 928 P.2d 1054.

Because it is highly questionable that the building of
a parking garage for a business district serves a “funda-
mental purpose” of government, we turn to the second
prong of the CLEAN test - whether there was consider-
ation or donative intent. We addressed this issue in City
of Tacoma v. Taxpayers, 108 Wash.2d 679, 703, 743 P.2d 793
(1987):

“Unless there is a proof of donative intent or a
grossly inadequate return, courts do not inquire
into the adequacy of consideration.” (Italics
ours.) Adams [v. University of Wash., 106 Wash.2d
312, 327, 722 P.2d 74 (1986) }. . . . Absent a
showing of donative intent or gross inadequacy,
trial courts should only apply a legal sufficiency
test, under which a bargained-for act or for-
bearance is considered sufficient consideration.

Appellants fail to prove either that the City intended
to donate public funds to the Developers or that the
consideration received for the City’s participation in the
project is “grossly inadequate.” In exchange for its assis-
tance;the City will receive a parking garage - an item

l4a

that would unquestionably constitute legally sufficient
consideration. Although Appellants may view the trans-
action as an unwise use of public funds that unduly
benefits the Developers, the wisdom of the plan is not for
this court to consider. See Louthan v. King County, 94
Wash.2d 422, 427, 617 P.2d 977 (1980).

Appellants next argue that, even if this court finds
the lease payment arrangement is not an unconstitutional
gift, we should still hold that the contingent pledge of
parking meter revenue is an unconstitutional lending of
credit. Again, CLEAN v. State is directly on point. The
appellants in CLEAN argued that the Stadium Act
amounted to an unconstitutional lending of credit
because it was a “ ‘financing conduit for private enter-
prise.” “ CLEAN, 130 Wash.2d at 799, 928 P.2d 1054. We
rejected this argument on the basis that the stadium was
to remain in public hands. In so holding, we distin-
guished the case from Lassila v. City of Wenatchee, 89
Wash.2d 804, 576 P.2d 54 (1978), in which we struck down
the City of Wenatchee’s purchase of property with intent
to sell it to a private party. CLEAN, 130 Wash.2d at 799,
928 P.2d 1054. Because the City of Wenatchee in Lassila
received nothing of value for its expenditure of public
money, it was unconstitutionally acting as a “middle per-
son for a private enterprise.” CLEAN, 130 Wash.2d at 799,
928 P.2d 1054. The Stadium Act, in contrast, provided that
ownership of the facility would remain in public hands.
CLEAN, 130 Wash.2d at 799, 928 P.2d 1054. Because the
State was not acting as a financing conduit for a private
entity, the Stadium Act did not amount to an unconstitu-
tional lending of credit. CLEAN, 130 Wash.2d at 799, 928
P.2d 1054.

15a

Because the RPS facility will ultimately belong to the
City, the City’s pledge of parking meter revenues is not
an unconstitutional lending of credit under CLEAN. The
pledge is clearly not a financing conduit for a private
entity because it was made to the PDA, a public entity, for
the sake of a publicly-owned facility.

(8) Is the emergency clause of the Ordinance invalid?

When the Ordinance was adopted, the City Council
found that “an urgency and emergency exists,” and
accordingly declared the Ordinance “effective upon
adoption in order to preserve the public peace, health or
safety and provide support of the City government and
its existing public institutions, facilities and infrastruc-
ture.” Ex. 142 at 10. The fact that the Ordinance became
effective immediately precluded a referendum on the pro-
ject under section 83 of the Spokane City Charter, which
allows for a referendum where the requisite number of
Signatures are presented to the City “prior to the date
when any ordinance shall take effect.”

Section 19(a) of the Spokane City Charter provides
that certain ordinances “shall take effect immediately
upon passage,” including:

An ordinance necessary for the immediate
preservation of the public peace, health or safety
or for the immediate support of city government
and its existing public institutions; provided it
has in its preamble or body a statement of the
facts giving rise to the necessity for immediate

16a

effectiveness and it is passed by a vote of one
more than a majority of the council[.]

Spokane City Charter § 19(a)(1).

Appellants argue the emergency clause of the Ordi-
nance is invalid and that therefore a referendum is
required. Again, CLEAN v. State is directly on point. In
CLEAN, this court interpreted article Il, section 1(b)
(amend. 72), of the Washington Constitution, which sub-
jects all state legislation to referendum except laws that
are “necessary for the immediate preservation of the pub-
lic peace, health or safety.” Given that section 19 of the
Spokane City Charter is identical in relevant part to the
constitutional provision interpreted in CLEAN, CLEAN is
controlling.

When reviewing legislative declarations of emergen-
cies, we give substantial deference to the Legislature.
“ ‘Legislative declarations of fact, such as the existence of
an emergency, are deemed conclusive unless they are
“obviously false and a palpable attempt at dissimula-
tion.” ’ ” CLEAN, 130 Wash.2d at 808, 928 P.2d 1054 (quot-
ing City of Tacoma v. Luvene, 118 Wash.2d 826, 851, 827
P.2d 1374 (1992)). Where an act is “doubtful” in this
regard, the doubt will be resolved in favor of the declara-
tion of emergency. CLEAN, 130 Wash.2d at 808, 928 P.2d
1054. In CLEAN, we found the emergency clause of the
Stadium Act was valid because the Legislature was acting
on a “clear and present danger” that the Seattle Mariners
would leave the state. CLEAN, 130 Wash.2d at 808, 928
P.2d 1054. Since the Legislature could reasonably believe
such a result would produce a detrimental economic

17a

effect, we deferred to the Legislature’s declaration of
emergency. CLEAN, 130 Wash.2d at 808-09, 928 P.2d 1054.

Appellants assert CLEAN v. State is inapposite
because there is no proof in the record that Nordstrom
will leave downtown if the project does not go forward. It
is true that Respondents have failed to establish Nord-
strom will leave downtown Spokane if the RPS project
fails to materialize. Nevertheless, CLEAN v. State requires
this court to defer to the City Council’s emergency decla-
ration unless it is “obviously false and a palpable attempt
at dissimulation.” CLEAN, 130 Wash.2d at 808, 928 P.2d
1054 (quoting Luvene, 118 Wash.2d at 851, 827 P.2d 1374).

The City Council found, among other things, that
downtown Spokane has “experienced a serious economic
decline.” Ex. 142 at 4. The Council also found that the
RPS project would create jobs, stimulate the economy,
provide cultural opportunities, and improve the quality
of life in the downtown area. Ex. 142 at 4. The Council
further found that commitments from the City and from
prospective RPS tenants “must immediately be received”
by the Developers in order for the project to be completed
on time. Ex. 142 at 5. Because the viability of the RPS
project depends upon Nordstrom’s presence and the pro-
ject must begin construction in September 1997 to accom-
modate the expiration of Nordstrom’s lease in 1999, it
was arguably necessary for the City to render the Ordi-
nance effective immediately. We cannot say the City’s
declaration of emergency is either “obviously false,” or a

“palpable attempt at dissimulation.”

18a

(9) Has the City violated City Charter section 85 by
failing to honor the petition for a referendum?

Appellants next contend the City has violated
Spokane City Charter § 85(a), which requires all “capital
expenditures . . . requiring indebtedness of the tax-
payers” to be approved by a vote of the people. However,
section 85(a) exempts “expenditures of an emergency
nature” from the referendum requirement. Because we
have upheld the declaration of emergency, the RPS pro-
ject is exempt from section 85 of the charter.

(10) Has the City acted in excess of its authority under
RCW 35.21.730 by contracting with the PDA to
operate the garage?

Appellants also claim the PDA lacks the authority to
lease and operate the garage. RCW 35.21.730 allows cities
to create public corporations “to improve the administra-
tion of authorized federal grants or programs, to improve
governmental efficiency and services, or to improve the
general living conditions in the urban areas. . . . ” Appel-
lants argue the PDA lacks the authority to exist because it
serves none of these functions. However, the PDA will
undeniably facilitate the administration of the federal
EDI grant. It arguably serves the other two purposes as
well. Therefore, the City has not acted in excess of RCW
35.21.730.

Appellants also contend the PDA is in violation of
RCW 35.21.730(4), which sets forth three potential func-
tions for a PDA: to administer federal grants, receive

private assistance, and perform any lawful public pur-
pose. Appellants argue the Spokane PDA is violating this

19a

portion of the law because, worded conjunctively, the
statute requires a PDA to perform all three of these
functions. This argument is meritless. The plain language
of the statute states that a city “may” create a public
corporation for these varied purposes. Although it is true
the word “and” appears in the statute, all three statutory
elements need not be present for a PDA to be acting
lawfully. Mount Spokane Skiing Corp. v. Spokane County, 86
Wash.App. 165, 173, 936 P.2d 1148 (1997).

(11) Has the City improperly delegated its authority?

Appellants assert without explanation that the City
has improperly delegated its authority “to consummate
the transactions” identified in the Ordinance. Br. of
Appellants at 55. Appellants fail to identify to whom the
City has improperly delegated its authority and failed to
clarify this point in their Reply Brief, despite the fact that
Respondents argued Appellants’ argument was unclear.
Lacking this basic information, we are unable to address
this claim.

(12) Did the trial court err in allowing the Developers
to intervene in this case?

Appellants next argue the trial court improperly
allowed the Developers to intervene. CR 24(a)(2) allows
an interested party to intervene as a matter of right where
“the disposition of the action may... impair .. . his
ability to protect that interest, unless the applicant's
interest is adequately represented by existing parties.”

20a

Respondents contend that the Developers’ interests
will not necessarily be protected by the City and the PDA
because the interests of the Developers are distinct from
those of the City and the PDA. The Respondents reason
that, whereas the City is charged with representing the
interests of all its residents, the Developers represent a
more narrow private interest. Given that the disposition
of this action could most certainly impair the Developers’
ability to protect their interests, the trial court did not err
in allowing the Developers to intervene.

(13) Did the trial court err in exempting from public
disclosure an addendum to a report prepared by
Coopers & Lybrand?

Appellants also claim the trial court erred in sealing
an addendum to a report prepared for the City by Coop-
ers & Lybrand. After reviewing the documents in camera
the trial court refused to compel the City to produce the
information, finding it was exempt from the scope of the
Public Records Act, RCW 42.17.310. RCW 42.17.310(1)(r)
exempts from public disclosure “(financial and commer-
cial information and records supplied by businesses or
individuals . . . during application for economic develop-
ment loans or program services provided by any local
agency.”

Where the record consists solely of documentary evi-
dence, the standard of review of a trial court’s public
disclosure ruling is de novo. Dawson v. Daly, 120 Wash.2d
782, 788, 845 P.2d 995 (1993). The trial court did not err in
exempting the addendum from public disclosure. The
addendum is exempt from disclosure under RCW

Soar ae

2la

42.17.310(1)(r) because the project’s HUD loan was pend-
ing at the time the trial court made its ruling.

(14) Are Appellants entitled to attorney fees?

Appellants ask this court to “fashion a new equitable
standard for attorneys [’] fees in proceedings of this
kind.” Br. of Appellants at 57. We decline to do so.

Affirmed.

SMITH, JOHNSON, ALEXANDER and TALMADGE,
JJ., concur.

GUY, Justice (concurring).

[ concur in the result of the majority opinion. I write
separately to explain my position on the issue regarding
the emergency clause of the Spokane City Charter. While
I dissented in CLEAN v. State, 130 Wash.2d 782, 928 P.2d
1054 (1996), concerning the Stadium Act and whether
raising money for the building of a new baseball stadium
was an “emergency,” I lost that issue. I now defer to the
decision of the majority on this issue. If the funding of a
new stadium for the Mariners was valid emergency legis-
lation, then a legislative body’s conclusion that the
redevelopment and revitalization of a downtown area
may also be such legislation. The majority of this Court
essentially held in the Mariner’s case that the economic
welfare of a region may give rise to the kind of “emer-
gency” for which emergency legislation may be validly
used. Therefore, we held that when a legislative body
decides that the economic welfare of a region is an emer-
gency in a given setting, then the majority of this court
will defer to the judgment of that legislative body.

22a

I also write separately to disagree with the conclu-
sion of the dissent that the danger to be remedied in
Spokane is not emergent because “the economic decline
has already happened.” That is not so. Elected officials
have a duty to strive to keep alive the economic vitality of
their city. The downtown of Spokane is the center of that
city and surrounding area. To allow a downtown to lose
its business activity is to allow its people to lose their
sense of belonging to the community. It is within the duty
of city officials to attempt to keep their downtown safe,
convenient and economically healthy.

MADSEN, Justice (concurring in the majority).

I agree with Durham, C.J., dissenting, that prior to
CLEAN v. State, this Court repeatedly and consistently
held in its review of emergency legislation under Const.
art. Il, § 1(b) that “the declaration to which deference is
granted [by the Court] is not the assertion of an emer-
gency itself, but the declaration of the facts constituting
the emergency.” Dissent at 1180, 1181. However, CLEAN
v. State dramatically altered judicial review. This Court
declared in CLEAN that it will defer to the assertion of an
emergency as long as the facts relied upon by the Legisla-
ture in declaring an emergency are not “ ‘obviously false
and a palpable attempt at dissimulation.’ ” City of Tacoma
v. Luvene, 118 Wash.2d 826, 851, 827 P.2d 1374 (1992)
(quoting State ex rel. Hamilton v. Martin, 173 Wash. 249,
257, 23 P.2d 1 (1933)).

After CLEAN, this Court no longer conducts an inde-
pendent analysis of whether a law is necessary for the
immediate preservation of the public peace, health, or
safety within the meaning of Const. art. II, § 1(b). The

23a

emergency exception is now coextensive with police
powers. I consider this an unfortunate reading of the
State Constitution. However, because CLEAN is the law, I
must concur with the majority in its result in this case.

SANDERS, Justice (concurring).

Reluctantly I concur with the majority. My greatest
reluctance is with issue seven (Majority at 1174) regard-
ing unconstitutional gifts of public funds and issues eight
and nine (Majority at 1175-1176) which grant this court's
imprimatur to the preposterous notion that a new parking
garage for Nordstrom’s is “necessary for the immediate
preservation of the public peace, health or Safety....”
Spokane County Charter art. III, § 19(a)(1); compare Const.
art. II, § 1(b). But this result is compelled by the majority
decision in CLEAN v. State, 130 Wash.2d 782, 928 P.2d
1054 (1996) wherein this court virtually repealed the citi-
zens’ constitutional right to referendum by allowing the
Legislature to inoculate itself against referendums
through conclusory emergency clauses not subject to
meaningful judicial review, as well as King County v.
Taxpayers of King County, 132 Wash.2d 360, 938 P.2d 309
(1997) which emasculated Const. art. VIIL, § 7’s prohibi-
tion against gifts of public funds to private persons by
adopting a “legally sufficient” consideration test. See
Majority at 1175. Compare Taxpayers, 132 Wash.2d at 393,
938 P.2d 309 (Sanders, J., dissenting). As my objections to
both decisions were stated for naught in the accompany-
ing dissents, I concur this case is within the four corners
of those majorities and agree stare decisis requires like
result in all other cases unless or until these decisions are
appropriately overruled to restore that measure of consti-
tutional protection our citizens are justly entitled.

24a

I agree with all of the observations set forth by the
Chief Justice in her dissenting opinion, save and except
her effort to distinguish CLEAN v. State, which, in my
judgment, is fairly indistinguishable. Once the constitu-
tional well has been poisoned, we all must drink from it
lest the incentive to correct our mistakes in a principled
fashion be lost by inconsistently imposing them.

DURHAM, Chief Justice (dissenting).

I disagree with the majority regarding the validity of
the declaration of emergency in the Spokane ordinance at
issue. Relying on CLEAN uv. State, 130 Wash.2d 782, 928
P.2d 1054 (1996), the majority concludes that a bare legis-
lative assertion of an emergency, unless obviously false,
forecloses the people’s referendum right. This court has
never granted such deference to a Legislature’s con-
clusory assertion that an emergency exists. Rather, defer-
ence is granted only to the declaration of facts that
constitute the alleged emergency. It remains a judicial
question whether those facts indeed constitute an emer-
gency. Because the Spokane ordinance responds only to a
continuing problem of economic decline in the downtown
retail area, it cannot be said to address an emergent
threat. It therefore fails to state an emergency and should
be subject to referendum.

ANALYSIS

The majority relies on some language from CLEAN v.
State that at first blush seems to foreclose any inquiry into
the validity of a legislative declaration of emergency:

‘“Legislative declarations of fact, such as the existence of

25a

an emergency, are deemed conclusive unless they are ‘obvi-
ously false and a palpable attempt at dissimulation.’ ” ’ 1
This language, however, must be considered in light of its
application in the cases from which it was born. As the
forthcoming discussion illustrates, similar language has
been used in many of our emergency clause cases.2 Not-
withstanding such broad language of deference, however,
this court has routinely invalidated legislative declara-
tions of emergency. We have done so without ever con-
cluding that the Legislature had falsely declared an
emergency. This would not be possible were deference
granted, as the majority mistakenly believes, to the mere
legislative assertion that an emergency exists.

SUMMARY OF OUR EMERGENCY CLAUSE CASES

Were it the case that courts must defer to a declara-
tion of emergency itself, courts would never need to

' Majority at 1176 (quoting CLEAN v. State, 130 Wash.2d,
782, 808, 928 P.2d 1054 (1996) (quoting City of Tacoma v. Luvene,
118 Wash.2d 826, 851, 827 P.2d 1374 (1992) (quoting State ex rel.
Hamilton v. Martin, 173 Wash. 249, 23 P.2d 1 (1933)))).

* There are two separate exceptions to the people’s
referendum right: one for laws necessary for the immediate
preservation of the public peace, health, or safety; and another
for laws in support of the state government and its existing
public institutions. See CLEAN v. State, 130 Wash.2d at 804 n. 7,
928 P.2d 1054 (discussing Const. art. II, § 1(b)). Since this case
involves application of the first exception only, my discussion of
our relevant case law will be confined to those emergency
clause cases addressing the first exception. As the majority
correctly points out, the standard for evaluating declarations of
emergency in state legislation is equally applicable to the city
ordinance in the present case.

26a

discuss the factual bases for legislation absent allegations
of legislative deceit. Legislative declarations of emer-
gency would rarely, if ever, be contested since the Legis-
lature would need only declare an emergency to foreclose
virtually any challenge. Instead, deference has been
granted only to the legislative declaration of facts consti-
tuting the emergency. This point was expressly made in
State ex rel. Hamilton v. Martin, 173 Wash. 249, 23 P.2d 1
(1933), which is the original source of the language in
CLEAN v. State regarding the conclusive nature of legisla-
tive declarations of emergency.°*

In Hamilton, this court considered the validity of
declarations of emergency in two depression-era acts pro-
viding relief in response to state-wide unemployment
and poverty.* The Legislature declared that “ ‘[d]iscon-
tent, social unrest and incipient insurrection exist. Acts of
insurrection are occurring.’ “> The appellant did not
argue that insurrection was insufficiently emergent to
suspend the referendum right. Rather, the appellant dis-
puted the Legislature’s factual assertion that there was
such a degree of social unrest. The court made clear that
the courts will defer to legislative declarations of facts
constituting an emergency:

We have always held to the rule that the
legislative declaration of the facts constituting the
emergency is conclusive, unless, giving effect to

3 See supra note 1.

4 State ex rel. Hamilton v. Martin, 173 Wash. 249, 251-54, 23
P.2d 1 (1933).

> Hamilton, 173 Wash. at 256-57, 23 P.2d 1 (quoting
Rem.Stat. § 9992 (Supp.1933)).

PIR ei Sere Xe

27a

every presumption in its favor, the court can say
that such legislative declaration, on its face, is
obviously false and a palpable attempt at dis-
simulation.[®]

Having given conclusive effect to the legislative declara-
tion that insurrection was occurring, it was a simple
matter for the court to conclude that insurrection was a
sufficiently emergent threat to justify suspension of the
referendum right.”

In the next three emergency clause cases, the court
affirmed this principle by taking legislative declarations
of the facts at face value. Yet, the court gave no conclu-
sive effect to the declarations of emergency themselves.
Instead, the court invalidated the declarations of emer-
gency in all three cases because the factual bases for the
alleged emergencies were not emergent.

First, in State ex rel. Robinson v. Reeves, 17 Wash.2d
210, 135 P.2d 75, 146 A.L.R. 280 (1943), the court consid-
ered the validity of a declaration of emergency in an act
relating to public utilities funding and operations. In
holding the declaration of emergency invalid, the court
emphasized that the referendum power is suspended
only upon an immediate threat to the public peace,
health, or safety. The court concluded that the acquisi-
tion and operation of public utilities, while in the public

© Hamilton, 173 Wash. at 257, 23 P.2d 1 (emphasis added).
” Hamilton, 173 Wash. at 259, 23 P.2d 1.

8 State ex rel. Robinson v. Reeves, 17 Wash.2d 210, 215-16, 135
P.2d 75 (1943).

28a

interest, was not an emergency, notwithstanding the Leg-
islature’s declaration that it was.?

“Promotion of the public welfare” is not a
criterion by which we may be guided in deter-
mining whether or not an emergency exists
which defeats the right to refer the act to the
people. ...

To uphold a legislative declaration of emer-
gency such as this would destroy the referen-
dum and would permit the legislature, or a
group of electors barely sufficient to invoke an
initiative, to impose its will upon the majority in
any instance where it is seen fit to attach to an
act a declaration of emergency.[?°]

Next, in State ex rel. McLeod v. Reeves, 22 Wash.2d 672,
157 P.2d 718 (1945), the court invalidated a declaration of
emergency in an act amending the game code. The court
rejected the suggestion that the amendments were emer-
gency measures necessary to correct an alleged constitu-
tional problem with the then existing code.!! Again, the
court emphasized that it is a judicial question whether
the factual bases for legislation constitute an emergency. !2
The court concluded that the need to reorganize the game

9 Robinson, 17 Wash.2d at 216-17, 135 P.2d 75.
10 Robinson, 17 Wash.2d at 217, 135 P.2d 75.

11 State ex rel. McLeod v. Reeves, 22 Wash.2d 672, 675, 157
P.2d 718 (1945).

12 McLeod, 22 Wash.2d at 674, 157 P.2d 718.

29a

commission was not sufficiently emergent to suspend the
referendum right.13

Then, in State ex rel. Kennedy v. Reeves, 22 Wash.2d
677, 157 P.2d 721 (1945), the court invalidated a declara-
tion of emergency in an act regarding the administration
of state timber resources. The court rejected arguments
that the act was immediately necessary as an economic
measure to quash duplicative timber management func-
tions and to consolidate control over timber resources.14
The court expressly held that the referendum right could
not be defeated by the mere declaration of emergency:

We think it too clear to require argument
that the legislature cannot defeat the constitu-
tional right, reserved by the people. . . by merely
inserting in an act... .

“This act is necessary for the immediate
preservation of the public peace, health and
Safety... . “15

Notwithstanding the beneficial nature of the act, it did
not address an emergent threat and was, therefore, sub-
ject to referendum.16

This brings us to State ex rel. Pennock v. Reeves, 27
Wash.2d 739, 179 P2d 961 (1947), in which the court
erroneously stated in dictum that conclusive effect is

‘3 McLeod, 22 Wash.2d at 674-75, 157 P.2d 718.

14 State ex rel. Kennedy v. Reeves, 22 Wash.2d 677, 682-83, 157
P.2d 721 (1945).

'S Kennedy, 22 Wash.2d at 681, 157 P.2d 721 (quoting Laws
of 1945, ch. 202, p- 579) (emphasis in original).

'¢ Kennedy, 22 Wash.2d at 682-84, 157 P.2d 721.

30a

given to a legislative declaration of emergency itself. In
Pennock, the plaintiff sought a writ of mandate to compel
the Secretary of State to accept filings for referendum
against parts of two amendatory welfare acts. The court
held, on the only issue before it, that when any portion of
a law addresses an emergency, the entire law is immune
from referendum.’” Since the plaintiff conceded that the
appropriations provisions of the acts were emergent and
in support of an existing state institution,’® his writ was
necessarily denied. Yet, the court went on to state in
dictum:

In each of the statutes in the cases at bar is a
declaration that the act is necessary for the
immediate preservation of the public peace,
health, and safety. We have consistently held
that such legislative declaration of emergency
and necessity for the enactment is conclusive
and must be given effect, unless the declaration
on its face is obviously false; and, in determin-
ing the truth or falsity of the legislative declara-
tion, we will enter upon no inquiry as to the
facts, but must consider the question from what
appears upon the face of the act, aided by the
court’s judicial knowledge. State ex rel. Hamilton
v. Martin, 173 Wash. 249, 23 P.2d 1. We must give
to the action of the legislature and its declara-
tion of an emergency every favorable presump-
tion.[?9]

17 State ex rel. Pennock v. Reeves, 27 Wash.2d 739, 743, 179
P.2d 961 (1947).

18 Pennock, 27 Wash.2d at 741, 179 P.2d 961.

19 Pennock, 27 Wash.2d at 743-44, 179 P.2d 961.

3la

In doing so, the court misstated the rule it cited from
Hamilton. As discussed earlier, the Hamilton court stated
that the court had always given conclusive effect to legis-
lative declarations of facts constituting an emergency, and
the Kennedy court expressly rejected the suggestion that
the declaration of emergency itself was given conclusive
effect.

Fortunately, there is no precedential effect to this
misstatement because the doctrine of stare decisis does
not apply to language that is unnecessary to the conclu-
sion reached.?° It is well established that the precedential
effect of such general statements is confined to the facts
and issues before the court.2! The plaintiff never chal-
lenged the validity of the declarations of emergency;
indeed, he conceded their validity. He sought only to
subject the nonemergency provisions of the acts to refer-
endum. Thus, the court's misstatement, though often
repeated, is not binding authority.

Unfortunately, this court has often turned, ill
advisedly, to Pennock for the scope of judicial deference in
emergency clause cases. However, subsequent emergency
clause cases purporting to apply this rule from Pennock,
up to and including CLEAN v. State, make clear that the
declaration of emergency itself is given no conclusive
effect. Rather, in order for the court to uphold the validity
of a declaration of emergency, there must be facts that are
legally sufficient to constitute an emergency. This court

20 In re Electric Lightwave, Inc., 123 Wash.2d 530, 541, 869
P.2d 1045 (1994),

*1 In re Estate of Burns, 131 Wash.2d 104, 113, 928 P.2d 1094
(1997).

32a

has not hesitated to hold legislation subject to referen-
dum despite a legislative declaration of emergency when
the facts did not demonstrate an emergent threat to the
public.

In the next emergency clause case after Pennock, this
court struck down a declaration of emergency in a city
ordinance much like the present one. At issue in State ex
rel. Gray v. Martin, 29 Wash.2d 799, 189 P.2d 637 (1948)
was a Tacoma ordinance authorizing the purchase of
property to construct a municipal airport. The ordinance
stated that a public emergency existed and that in order
to provide adequate transportation facilities it was imper-
ative that the ordinance take effect immediately. Like the
Spokane charter in the present case, the Tacoma charter
provided for suspension of the referendum right upon a
declaration of emergency in an ordinance. The City
argued that the declaration of emergency was conclusive
since it was not obviously false on its face and there were
no judicially noticeable facts indicating falsity.22 The ordi-
nance at issue provided in relevant part:

Section 4. That in order to provide adequate
transportation facilities for the inhabitants of the
City of Tacoma and for the support of the City
government it is imperative that the provisions
of this ordinance become effective without delay
and by reason thereof a public emergency is
hereby declared to exist making it necessary
that this ordinance take effect immediately after

22 State ex rel. Gray v. Martin, 29 Wash.2d 799, 805-06, 189
P.2d 637 (1948).

33a

publication and that the same shall take effect
immediately after publication.[23]

The court quoted the Pennock court’s assertion that a
legislative declaration of emergency is conclusive unless
obviously false.24 Nevertheless, the court invalidated the
declaration of emergency, holding that the ordinance
failed to state an emergency.25

In doing-so the court clarified that the declaration to
which deference is granted is not the assertion of an
emergency itself, but the declaration of the facts constitu-
ting the emergency. Therefore, no weight was given the
city council’s opinion that the public transportation need
was emergent. Rather, the court concluded that the ordi-
nance, by failing to declare facts that constituted an emer-
gency, failed to declare any emergency to which
deference could be granted.

23 Gray, 29 Wash.2d at 802-03, 189 P.2d 637 {quoting Tacoma
Ordinance 13082 (Apr. 16, 1947)) (emphasis omitted).

*4“We have consistently held that such legislative
declaration of emergency and necessity for the
enactment is conclusive and must be given effect,
unless the declaration on its face is obviously false;
and, in determining the truth or falsity of the
legislative declaration, we will enter upon no inquiry
as to the facts, but must consider the question from
what appears upon the face of the act, aided by the
court’s judicial knowledge. State ex rel. Hamilton v.
Martin, 173 Wash. 249, 23 P.2d 1. We must give to the
action of the legislature and its declaration of an
emergency every favorable presumption.”

Gray, 29 Wash.2d at 804, 189 P2d 637 (quoting Pennock, 27
Wash.2d at 743-44, 179 P.2d 961).

2° Gray, 29 Wash.2d at 806, 189 P.2d 637.

34a

The Gray court explained that an emergency is that
“which calls for immediate action or remedy; pressing
necessity; exigency; a sudden or unexpected happen-
ing.” Although the ordinance stated facts regarding the
need for public transportation, there were no facts that
explained why public transportation was so inadequate
that emergency measures were required:

[T]he ordinance contains no statement that a
public emergency exists with reference to trans-
portation facilities in Tacoma. True, the state-
ment “to provide adequate transportation
facilities” may be interpreted to imply that there
is a need for such facilities; but the statement
does not declare, nor can it be construed to
mean, that the transportation facilities in Tac-
oma are so insufficient or inadequate as to
require immediate additional facilities.[?7]

The court adhered to this principle in its next emer-
gency clause case by striking down yet another legislative
declaration of emergency. In State ex rel. Humiston v.
Meyers, 61 Wash.2d 772, 380 P.2d 735 (1963), the court
attempted to clarify the ambiguity created by the Pennock
dictum. At issue was the validity of a declaration of
emergency in an act authorizing certain gambling activ-
ities. The court noted that “[i]t would be inaccurate to say
that our former decisions have been consistent in discuss-
ing and announcing the rule to be applied.”28 By way of

26 Id. (quoting State ex rel. Porter v. Superior Court, 145 Wash.
551, 559, 261 P. 90 (1927)).

27 Gray, 29 Wash.2d at 808, 189 P.2d 637 (emphasis in
original).

28 State ex rel. Humiston v. Meyers, 61 Wash.2d 772, 778, 380
P.2d 735 (1963).

35a

example, the court quoted the Pennock court’s overstate-
ment of the rule.?? In holding the declaration of emer-
gency invalid, the court then clarified that no conclusive
effect is given the declaration of emergency itself:

The touchstone of the rule is “ . . . what
appears upon the face of the act, aided by the
court's judicial knowledge.”

The face of the act is patently devoid of any
facts relating to an emergency (with the excep-
tion of the emergency clause itself)... . We do
not indicate that the inclusion of a legislative
declaration of policy in an act would, ipso facto,
remove the emergency clause from the ambit of
the court’s constitutional duty to project and
test the clause upon the backdrop of the consti-
tution.[5°]

The court could hardly have been more clear in its rejec-
tion of the idea that the declaration of emergency itself is
entitled to deference:

“[T]he legislature has no right to tack an emer-
gency clause onto an act in order to prevent the
people from exercising their right of referen-
dum, unless that act is clearly within the excep-
tion set forth in the amendment.” [31]

*° Humiston, 61 Wash.2d at 778, 380 P.2d 735 (quoting State
ex rel. Hoppe v. Meyers, 58 Wash.2d 320, 326, 363 P.2d 121, 100
A.L.R.2d 304 (1961) (quoting State ex rel. Pennock v. Coe, 42
Wash.2d 569, 257 P.2d 190 (1953) (quoting Pennock, 27 Wash.2d
at 743-44, 179 P.2d 961))).

30 Humiston, 61 Wash.2d at 778, 380 P.2d 735.

1 Humiston, 61 Wash.2d at 776, 380 P.2d 735 (emphasis in
original).

36a

The next time (and last time before CLEAN v. State)
that this court considered a challenge to a declaration of
emergency was in an appeal from a conviction for drug
loitering. In City of Tacoma v. Luvene, 118 Wash.2d 826, 827
P.2d 1374 (1992), the defendant challenged the ordinance
on overbreadth, vagueness, and preemption grounds. A
minor issue was the defendant’s novel argument that an
invalid declaration of emergency rendered the drug
loitering ordinance unenforceable. The court stated that
legislative declarations of fact, including declarations of
emergency, are conclusive unless “ ‘obviously false and a
palpable attempt at dissimulation.’ “32 In doing so, the
court repeated the error of the Pennock court by incor-
rectly paraphrasing State ex rel. Hamilton v. Martin, 173
Wash. 249, 23 P.2d 1 (1933). Yet, in upholding the declara-
tion of emergency the court did not simply defer to the
declaration of emergency, but looked to the facts constitu-
ting the emergency. The ordinance provided, in part:

“That time is of the essence in this matter
because the City’s drug problems are increasing
rapidly, causing imminent danger to the public
health and safety and to property in the area
where drug use is taking place. . . . ”[33]

The court concluded that there was no falsehood or dis-
simulation behind the factual assertion of the City’s rap-
idly increasing drug problems. It was clear, therefore, that

32 City of Tacoma v. Luvene, 118 Wash.2d 826, 851, 827 P.2d
1374 (1992) (quoting State ex rel. Hamilton v. Martin, 173 Wash.
249, 23 P.2d 1 (1933)).

33 Luvene, 118 Wash.2d at 851, 827 P.2d 1374 (quoting
Tacoma Ordinance 24167 § 2).

37a

such a threat was sufficiently emergent to validate the
declaration of emergency.

This brings us to CLEAN v. State, 130 Wash.2d 782,
928 P.2d 1054 (1996), upon which the majority relies for
the proposition that a legislative declaration of emer-
gency itself is conclusive. In CLEAN v. State, the court
was asked to evaluate the validity of a declaration of
emergency in a financing act for the new Seattle Mariners
major league baseball stadium. The court cited to both
Humiston and Luvene for the proposition that legislative
declarations of emergency are conclusive unless obvi-
ously false.*4 Yet, as this court had done in every emer-
gency clause case, the inquiry did not end with the
legislative declaration of emergency. Instead, the court
acknowledged “[t]he more knotty question” of whether
the financing act was immediately necessary, before inde-
pendently evaluating whether the factual underpinning
of the declaration of emergency were legally sufficient to
constitute an emergency.°5 The court noted that the Mari-
ners had informed the King County Executive that with-
out a new stadium the Mariners would be offered for sale
after October 30, 1995.36 With only a few weeks to act, on
October 11, 1995, the governor called a special session of
the Legislature solely to address financing for a new
stadium.*” The session concluded a week later when the
Legislature adopted a financing act, which included a

34 CLEAN v. State, 130 Wash.2d 782, 807-08, 928 P.2d 1054
(1996).

3° CLEAN v. State, 130 Wash.2d at 807, 928 P.2d 1054.
36 CLEAN v. State, 130 Wash.2d at 788, 928 P.2d 1054.
37 Id.

38a

declaration of emergency.** The court was satisfied that
the Legislature acted in response to a “clear and present
danger” that the State’s only major league baseball team
would be lost without prompt action.°?

Thus, this court has never given conclusive effect to
the assertion of emergency itself. To do so would be to
abdicate our duty to evaluate the constitutionality of
legislative action. It would be no different than deferring
to a legislative declaration that an act were necessary to
further a compelling state interest. Instead, this court has
upheld declarations of emergency only when the facts
established a need for immediate response to public peril.

THE SPOKANE ORDINANCE FAILS TO DECLARE AN
EMERGENT THREAT

It is apparent that the factual underpinnings of the
Spokane ordinance do not constitute an emergency. Of
course, we should give conclusive effect to the Spokane
City Council’s declaration of the facts constituting the
emergency. We should accept as true that the downtown
area has suffered an economic decline and that the ordi-
nance will revitalize the area.” We should also accept as
true that the developer must immediately execute leases
to commit tenants to the project in order for the project to

38 CLEAN v. State, 130 Wash.2d at 790-92, 928 P.2d 1054.
* CLEAN v. State, 130 Wash.2d at 808-09, 928 P.2d 1054.

*# Majority at 1176 (quoting Spokane Ordinance C31823
(Jan. 27, 1997)).

39a

go forward.*! Yet, the danger to be remedied is not emer-
gent because the economic decline has already happened.

Although the revitalization of downtown, like the
construction of an airport in Gray, may be a project in the
interest of improving the public welfare, it is not necessary
for the immediate preservation of the public welfare. The
failure of the project to proceed would not alter the status
quo; it would be merely a lost opportunity to remedy
what appears to be a long-standing problem. Thus, the
Spokane ordinance is nothing more than an economic
stimulus plan precisely of a type upon which the Spokane
taxpayers should be allowed to vote. As the Gray court
observed:

[The city council] must set forth in the ordi-
nance a statement specifying not a mere conclu-
sion, nor merely the purpose of the ordinance,
but an actual existing public emergency. To hold
otherwise would be to nullify the power with-
held by the people of the city . . . when they
provided for a referendum in their city charter,
for it would mean a waiver of their express right
to referendum whenever their city council chose
to declare a certain situation an emergency. [#2]

CONCLUSION

Despite the majority’s assertion to the contrary, this
case is in stark contrast to CLEAN v. State, where there
was an immediate threat that the State could lose its only
major league baseball team and the Legislature took the

41 Jd.
42 Martin, 29 Wash.2d at 808-09, 189 P.2d 637.

40a

extraordinary action of calling a special legislative ses-
sion solely to address this impending threat. There is no
similarly impending threat in the present case. Even giv-
ing conclusive effect to the Spokane City Council’s con-
cern that the project would fall through without
immediate action, a potentially missed opportunity to
correct a long-standing problem is not an emergency. The
declaration of emergency in the ordinance, therefore, is
legally insufficient to suspend the right of referendum the
citizens of Spokane reserved to themselves in their city
charter.

4la

APPENDIX B
THE SUPREME COURT OF WASHINGTON

CLEAN (Citizens for NO. 65262-7
—— an ogy ORDER DENYING
i apuny ), MOTION FOR
ae RECONSIDERATION

Appellants,
v.

CITY OF SPOKANE, a
Washington first class
charter city, et al.,

Respondents.
and

CITIZENS REALTY
COMPANY, a
Washington corporation,
et al.,

)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
Respondents. ‘

The Court having considered the Motion for Reconsideration
of Appellants;

~ Now, therefore, it is hereby
ORDERED:
That the Appellants’ motion for reconsideration is denied.
DATED at Olympia, Washington this 5th day of February,
1998.

/s/ Durham CJ
CHIEF JUSTICE

42a

APPENDIX C

SUPERIOR COURT OF THE STATE OF WASHINGTON
FOR SPOKANE COUNTY

CLEAN (Citizens for Leaders) NO. 96-2-06361-9

yt evr eae ORDER OF DISMISSAL
ccountability Now!), a AND/OR SUMMARY

Washington non-profit E
corporation; SPOKANE a peng teos _ USE

RESEARCH AND DEFENSE

FUND, a Washington non- pil es used
profit corporation; and
COALITION FOR A NEW
SPOKANE, a Washington
non-profit corporation,

Plaintiffs,
v.

CITY OF SPOKANE, a
Washington first-class
charter city;

the SPOKANE CITY
COUNCIL; and SPOKANE
PARKING PUBLIC
DEVELOPMENT
AUTHORITY, a City of
Spokane public corporation,

Defendants
and

CITIZENS REALTY
COMPANY and LINCOLN
INVESTMENT COMPANY
OF SPOKANE,

Intervenors

)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
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)
)

43a

PRIORITIES FIRST, a ) Consolidated with
Washington political action ) ry a
committee, RICHARD D. NO. 97-2061
ADAMS, an individual,

Plaintiffs

—

V.

CITY OF SPOKANE, a
Washington first class

charter city, :
Defendant
and

CITIZENS REALTY
COMPANY and LINCOLN
INVESTMENT COMPANY

OF SPOKANE,

Intervenors Consolidated with
MARGARET LEONARD, an NO. 97-2-00644-3
individual,

Plaintiff

CITY OF SPOKANE, a
Washington first class
charter city,

Defendant
and

CITIZENS REALTY
COMPANY and LINCOLN
INVESTMENT COMPANY
OF SPOKANE,

Intervenors.

)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
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)
)
)

I. HEARING

1.1 Hearing. This matter came before the Court for
hearing on April 9, 1997, on the Motion for Dismissal or
in the Alternative Summary Judgment on behalf of the
defendants, City of Spokane and Spokane Parking Public
Development Authority, and the Intervenors, Citizens
Realty Company and Lincoln Investment Company of
Spokane.

1.2 Appearances. Thomas F. Kingen appeared on
behalf of Defendants, Spokane Public Development
Authority and the City of Spokane, Duane Swinton,
appeared on behalf of Intervenors, Citizens Realty and
Lincoln Investments, and Stephen K. Eugster appeared on
behalf of plaintiffs, CLEAN, Spokane Reserach and
Defense Fund, Coalition for a New Spokane, Priorities
First, Richard Adams, John Talbott and Margaret
Leonard.

1.3 Evidence. In rendering this order, this Court
has considered the documents and evidence contained in
the court docket for Cause Nos. 96-2-06361-9,
97-2-00645-1, and 97-2-00644-3, attached hereto as Exhibit
“A” incorporated by this reference herein, together with
the Stipulation dated March 18, 1997, attached hereto as
Exhibit “B” and incorporated by this reference herein.

Il. FINDINGS

This court, having considered oral arguments of
counsel, having reviewed the above-mentioned evidence
and pleadings presented, and being fully advised in the
matter, finds that there is no genuine issue as to any

45a

material fact in this action, and therefore, the City of
Spokane, the Spokane Public Development Authority,
and the Intervenors, Citizens Realty and County [sic] and
Lincoln Investment Company are entitled to judgment as
a matter of law.

Il. JUDGMENT

On the basis of the foregoing findings, NOW,
THEREFORE, IT IS HEREBY ADJUDGED, ORDERED
AND DECREED that:

1. The Complaint for Declaratory and Injunctive
Relief dated February 7, 1997, (Amending the Application
for Writ of Prohibition and Complaint for Declaratory
and Injunctive Relief dated October 22, 1996) is hereby
dismissed in Cause No. 96-2-06361-9.

2. The Complaint for Declaratory Relief dated Feb-
ruary 3, 1997, (together with the Amended Complaint for
Declaratory Relief and Application for Writ of Mandamus
in Cause No. 97-2-00645-1 is dismissed.

3. The Complaint for Declaratory Relief dated Feb-
ruary 3, 1997, in Cause No. 97-2-00644-3 is dismissed.

4. The Intervenor’s motion to dismiss the Plaintiff
CLEAN, in Cause No. 96-2-06361-9 is denied.

5. Defendants’ Joint Motion to Strike the Declara-
tion of Stephen K. Eugster is granted as to paragraphs 3
and 4 of the declaration and denied as to all other por-
tions of the declaration.

6. Upholds as exempt from public disclosure the
addendum to the Coopers & Lybrand Report (Item 138 of

46a

the Stipulation dated March 18, 1997) pursuant to RCW
42.17.310(r) and (h).

7. The Court’s Memorandum Decision dated April
11, 1997, attached hereto as Exhibit “C” fully states the
Court’s decision dismissing the actions set forth in para-
graphs 1, 2 and 3 of this judgment.

DONE IN OPEN COURT THIS 16th day of April,
1997.

KATHLEEN M. O’CONNOR
HONORABLE
KATHLEEN O’CONNOR
Spokane County Superior
Court Judge

PRESENTED BY:

PERKINS COIE

/s/

Thomas F. Kingen, WSBA #6692
Attorney for Defendant, Spokane PDA

CITY OF SPOKANE

JAMES C. SLOANE
City Attorney

By: /s/

Stanley M. Schwartz, WSBA #15518
Assistant City Attorney
Attorneys for Defendant, City of Spokane

47a wz

WITHERSPOON KELLEY DAVENPORT & TOOLE
By: /s/

Duane Swinton, WSBA #8354
Attorney for Intervenors
NOTICE OF PRESENTMENT WAIVED:

EUGSTER HASKELL

/s/
Stephen K. Eugster, WSBA #2003
Attorney for Plaintiffs

48a

SUPERIOR COURT OF THE STATE OF WASHINGTON
IN AND FOR THE COUNTY OF SPOKANE

CLEAN (Citizens for Leaders _)

with Ethics and Accountability )

Now!), a Washington non-profit )

corporation; SPOKANE )

RESEARCH & DEFENSE FUND,) No. 96-2-06361-9
a Washington non-profit
corporation; and COALITION
FOR A NEW SPOKANE, a
Washington non-profit
corporation,

Plaintiffs,

(Consolidated with
97-2-00645-1 and
97-2-00644-3)

MEMORANDUM
DECISION

VS.

)

)

)

)

)

)

)

)
CITY OF SPOKANE, a )
Washington first class charter )
city; the SPOKANE CITY )
COUNCIL; and, SPOKANE )
PUBLIC DEVELOPMENT )
AUTHORITY, a City of Spokane)
public corporation,
Defendants, )

and )

)

)

)

)

)

)

)

)

)

CITIZENS REALTY COMPANY,
a Washington corporation; and
LINCOLN INVESTMENT
COMPANY, a Washington
corporation,

Intervenors-Defendants.

49a

PRIORITIES FIRST, a Washington )

political action committee;
RICHARD D. ADAMS, an
individual; and, JOHN
TALBOTT, an individual,

Plaintiffs,

VS.

CITY OF SPOKANE, a
Washington first class charter
city; and its CITY COUNCIL,

Defendants,
and

CITIZENS REALTY COMPANY,
a Washington corporation; and,
LINCOLN INVESTMENT
COMPANY, a Washington
corporation,

Intervenors-Defendants.

MARGARET LEONARD, an
individual,

Plaintiff,
Vs.

CITY OF SPOKANE, a
Washington first class charter
city,

Defendants,

and

)
)
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)
)
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No. 97-2-00645-1

No. 97-2-00644-3

50a

CITIZENS REALTY COMPANY,
a Washington corporation; and,
LINCOLN INVESTMENT

corporation,

Intervenors-Defendants.

)
)
)
COMPANY, a Washington )
)
)
)

THIS MATTER came before the court for oral argu-
ment on April 9, 1997, on Intervenor-Defendants’ Motion
to Dismiss for Lack of Standing and Intervenor-Defen-
dants’ Motion to Dismiss, or in the Alternative Motion for
Summary Judgment. The court has received the following
pleadings pertinent to these motions:

\f

10.

Note for Hearing - Issue of Law re Motion for S.J.
and Motion to Dismiss

Replacement Memorandum in Support of Inter-
venor-Defendants’ Motion to Dismiss, or in the
Alternative Motion for Summary Judgment

Response to Intervenor-Defendants Motion to
Dismiss for Lack of Standing

Declaration of Stephen K. Eugster (April 1, 1997)

Response of Plaintiffs to Memorandum of Devel-
opers

Brief of Plaintiffs Priorities First et al. (Emergency
Legislation Issue)

Brief of Plaintiff Leonard
Notice of Application
Application for Writ of Mandamus

COPY OF CASE: Clean, et al. v. The State of
Washington, 130 Wn.2d 782

5la

STATEMENT OF THE CASE

The Intervenor-Defendants’ (Developers’) own prop-
erty in downtown Spokane bounded by Spokane Falls
Boulevard, Main Avenue, Lincoln Street and Wall Street.
This property includes the River Park Square shopping
mall and garage. In early 1995 the Developers
approached the City of Spokane seeking their assistance
in the redevelopment of River Park Square. In order to
facilitate expansion, the River Park Square garage should
be expanded from 750 car parks to 1,304 parking spaces.
The retail portion of the project includes construction of a
new building at the corner of Lincoln Street and Main
Avenue to be occupied by Nordstrom, Inc., and addi-
tional retail space. This project will also require the vaca-
tion of a portion of Post Street and an alley between Post
Street and Wall Street.

Pursuant to City Council Resolution 95-73 the City
applied to the Department of Housing and Urban Devel-
opment (HUD) for an Economic Development Grant
(EDI) and a HUD Section 108 guaranteed development
loan. HUD approved a $1,000,000 EDI grant on June 20,
1995. The Section 108 application is currently being eval-
uated by HUD.

The Developers submitted a State Environmental
Protection [sic] Act (SEPA) checklist and the City issued a
Mitigated Determination of Non-Significance on July 2,
1996 (LR 85). Notice of this decision was published. No
appeal was taken from this decision.

The legislative record in this case consists of some
158 documents including a transcript of public testimony
on October 17, 1996, January 13, 1997, and January 27,

52a

1997 (LR 152). The record reflects the changes that were
made in the City’s proposed participation in the project;
specifically, the City decided not to purchase the garage
outright. As Ordinance No. C31823 indicates, the Devel-
opers will build the garage and sell the building, not the
land on which it sits, to the Spokane Downtown Founda-
tion (Foundation). The Foundation is a nonprofit corpora-
tion which intends to issue tax-exempt bonds on behalf of
the City payable over 21 years from the revenues from
the garage.

In turn, the Foundation will lease the garage to the
Spokane Public Development Authority (PDA) which has
been created pursuant to RCW 35.21.730 et seq. which
will operate the facility. In addition, the Foundation will
enter into a ground lease with the Developers and assign
that lease to the PDA. When the bonds issued by the
Foundation have been repaid, the City will acquire title to
the garage at no cost.

Through Ordinance No. C31823 the City also created
a parking meter revenue fund. Parking meter revenue
will be deposited into the fund and “contingently
pledged” to pay the operating expenses of the garage and
the ground lease payments in the event the garage reve-
nues are not sufficient to maintain the garage in a “first-
class condition” (LR 142, Bates 02347).

As of the date of this opinion the Section 108 HUD
loan has not been approved; however, as a condition of
application, the City agrees to pledge its future Commu-
nity Development Block Grants as repayment of the loan
if the Developers default.

—

53a

Ordinance No. C31823 was passed on January 27,
1997. On January 30, 1977 [sic], plaintiffs, Priorities First,
Richard Adams and John Talbott, presented a referendum
petition to the Spokane City Clerk. The City Clerk
assigned a number to the petition and the plaintiffs sub-
sequently collected over 8,000 signatures. The City has
indicated it will not honor the referendum petition.

On February 3, 1997, plaintiffs Priorities First and
Margaret Leonard filed Complaint(s) for Declaratory
Relief, indexed as cause numbers 97-2-00645-1 and
97-2-00644-3 respectively. Plaintiffs CLEAN, et al., filed
an amended Complaint for Declaratory and Injunctive
Relief on February 7, 1997. All three files were consoli-
dated by order of the court on February 21, 1997.

Subsequently, Intervenor-Defendants filed the
Motion to Dismiss for Lack of Standing and a Motion to
Dismiss (CR 12 (b)), or in the Alternative a Motion for
Summary Judgment (CR 56). All of the pleadings are
listed above including a Notice of Application and Appli-
cation for Writ of Mandamus filed by all plaintiffs on
April 1, 1997.

ISSUES
1. DOES PLAINTIFF CLEAN (CITIZENS FOR
LEADERS WITH ETHICS AND ACCOUNTABILITY
NOW!) HAVE STANDING TO BRING THIS
ACTION?

Intervenor-Defendants assert CLEAN, a nonprofit
corporation with headquarters in Tacoma, Washington,
does not have standing to bring this action in Spokane
County because there are no state tax funds implicated

54a

and the City is not using tax funds to participate in the
project.

Plaintiffs assert CLEAN has standing because plain-
tiffs Adams and Talbott (1) are members of CLEAN, (2)
are residents and taxpayers of the City of Spokane, and
(3) park their cars on city streets arid use parking meters.
Mr. Eugster’s Declaration filed April 1, 1997, also indi-
cates he asked the Attorney General of the State of Wash-
ington to take action in this matter and the Attorney
General declined to do so. Thereafter, this private tax-
payer action commenced.

Plaintiffs Adams and Talbott are residents and tax-
payers and are members of CLEAN. I am satisfied there is
a sufficient nexus between CLEAN and this case, through
Adams and Talbott, to allow CLEAN to continue as a
party. Intervenor-Defendants’ Motion to Dismiss for Lack
of Standing is denied.

hN

DOES THE CITY OF SPOKANE (CITY) AND THE
SPOKANE PUBLIC DEVELOPMENT AUTHORITY
(PDA) HAVE THE AUTHORITY TO PARTICIPATE IN
THE RIVER PARK SQUARE PARKING GARAGE
PROJECT?

Plaintiffs contend that the City and the PDA do not
have the ability to acquire and operate a garage as the
City is not in compliance with RCW 35.86 and RCW
35.86A.

RCW 35.86.010 provides:

“Cities of the first, second, and third classes are
authorized to . . . In addition a city may own

io eae ec ec aac nan ecanaet

55a

other off-street parking facilities and operate
them in accordance with RCW 35.86A.120.”

The Supreme Court in In the Matter of the Petition of
The City of Auburn, The City of Auburn v. Roy M. Hawkins,
et al., 65 Wn.2d 560, 398 P2d 723 (1965), confirmed at
page 566:

“The statute was intended to enable cities to
prevent or alleviate traffic congestion and thus
to enable streets to serve the purpose for which
they were primarily intended, i.e. to enable the
traveling public to get from one place to
another. In this age of traffic congestion, the
right to furnish off-street parking is a necessary
adjunct to the right to regulate and control traf-
fic. (citations omitted)”

The City has not elected to use the general provisions
of RCW 35.86A nor is there any authority submitted to
this court that they are required to do so. However, RCW
35.86.010 does require that the operation of a garage be in
accordance with RCW 35.86A.120 which outlines a public
bidding process for soliciting a private entity to operate
the facility.

However, the City must comply with RCW 35.86.050
which essentially requires development of a plan, doing
physical and economic surveys, if necessary, preparing a
comprehensive plan and holding public hearings. This
Statute does not require a specific checklist or statutory
process but rather a process whereby the public can have
specific information on the nature of the proposed acqui-
sition; its cost/benefit to the City; and the financing
mechanisms.

56a

Intervenor-Defendants point to the original Down-
town Spokane Development Plan adopted in 1992 (LR 6)
as a starting point. In addition, the City commissioned a
parking study from Walker Consultants (LR 93) and a
financial feasibility study from Coopers & Lybrand (LR
138 and 140) on the proposed project. Public hearings
were held on October 17, 1996, January 13, 1997, and
January 27, 1997, where the plan and economic issues
were extensively discussed. Ordinance No. C31823 was
passed and its findings address what the City is intend-
ing to do with respect to the garage and what the financ-
ing mechanism is.

In the case of Hutchinson v. Port of Benton, 62 Wn.2d
451, 383 P.2d 500 (1963), cited by both sides, the Supreme
Court reviewed an analogous planning process with
respect to a Port District and looked at the substance of
the information provided to taxpayers. As the court
stated at page 457:

“We think the foregoing comprehensive plan,
while not held to be a model of preciseness, is
sufficient to give the taxpayers a fairly detailed
picture of what the port will do with this land if
and when it is acquired, and informs the tax-
payers of the manner and purposes for which
their money will ve spent.”

In reviewing all of the materials in the record I am
satisfied the City complied with RCW 35.86.050 and pro-
vided a plan, necessary studies and an opportunity for
public comment before the adoption of Ordinance
C31823.

As noted in the Statement of Facts, the PDA was
created pursuant to RCW 35.21. The record also reflects

57a

the incorporation of RCW 35.21 provisions in the Spokane
Municipal Code (SMC) (LR 124) and Ordinance C31810
which amended the SMC to allow the PDA to acquire and
operate off-street parking facilities (LR 125). The plain-
tiffs allege the PDA does not have the authority to engage
in these activities.

However, a simple reading of RCW 35.21.730 indi-
cates that cities do have the authority to create public
corporations for many purposes including the execution
of federal grants. In fact, one of the express purposes of
RCW 35.21.730 is to “improve the administration of
authorized federal grants or programs .. . ”. This court
recognizes the plaintiffs’ primary argument goes to the
issue of “public purpose” which will be addressed below:
however, as a mechanism for the administration of fed-
eral grants, the creation of a PDA is proper under RCW
35.21.730 including the authority of the PDA to acquire
and operate off-street parking facilities.

3. DOES THE RIVER PARK SQUARE GARAGE PRO-
JECT FULFILL A PUBLIC PURPOSE?

Plaintiffs argue the expansion of the River Park
Square Parking Garage will primarily benefit the private
developer who should undertake the financing of the
project themselves. Intervenor-Defendants assert the pub-
lic will benefit from the project and further the use of
City funds is limited and contingent.

In December 1996 the Washington State Supreme
Court decided CLEAN, et al. v. The State of Washington, 130
Wn.2d 782. That case does address the standards a
reviewing court should use when asked to evaluate a

58a

claim of “public purpose”. As a general principle, it is not
the role of the court to substitute its judgment for the
judgment of elected officials acting in their legislative
capacity. In this case it is the Mayor and the City Council
_ who listen to the testimony of all interested parties; com-
mission necessary studies and surveys to evaluate a pro-
ject; review funding mechanisms and articulate the public
benefits of legislation. It is the role of the court to insure
that legislative bodies act within the scope of their
authority as defined by the Washington State Constitu-
tion and Revised Code of Washington.

The CLEAN court at page 792 and 793 reiterates the
basic premise

“ ... that public funds cannot be used to benefit
private interests when the public interest is not
primarily being served. (citation omitted). Pub-
lic expenditures must, therefore, further public
purposes. (citation omitted). An expenditure is
for a public pu

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386006_1505%3A1. Public record. Not legal advice.
