BETTY WILSON, ) MICHAEL MACMANN, ) ) ) Plaintiffs ) v. ) Case No. 14BA-CV02668 ) CITY OF COLUMBIA ) ) MIKE MATTHES, ) ) ) Defendants. )
PLAINTIFFS' RESPONSE TO MOTION TO INTERVENE OF OPUS DEVELOPMENT COMPANY, LLC AND HSRE-ODC II MIZZOU, LLC
Plaintiffs initiated this lawsuit to protect their civil rights under the Columbia City Charter, the Missouri Constitution, and the U.S. Constitution. On Friday, August 13, two apparently related entities filed a motion to intervene: (1) Opus Development Company, LLC, and (2) HSRE-ODC II MIZZOU LLC. These entities contend that this Court's protection of the civil rights of the Plaintiffs will interfere with their interests. As we will see below, there is a material difference between the two parties seeking to intervene in this lawsuit. Opus Development Company has been the public entity involved with this student housing development since March 2014. The obscurely named HSRE-ODC II MIZZOU LLC did not exist in any legal form in March 2014, and only became authorized to do business in Missouri on July 30, 2014, the day before the second referendum petition relating to this student housing development was certified as sufficient by the City of Columbia (and six weeks after the first ordinance authorizing this development to proceed was repealed by the City Council). Under Rule 52.12(a), the proposed intervenor must establish three elements: (1) an interest relating to the property or transaction which is the subject of the action; (2) that the Case 2:14-cv-04220-NKL Document 3-3 Filed 08/22/14 Page 1 of 20 2
applicant's ability to protect the interest is impaired or impeded; and (3) that the existing parties are inadequately representing the applicant's interest. State ex rel. Nixon v. Am. Tobacco Co., 34 S.W.3d 122, 127 (Mo. Banc 2000) (internal quotations omitted). The proposed intervenor carries the burden of establishing the presence of all three elements required for intervention as a matter of right. Kinney v. Schneider Nat'l Carriers, Inc., 200 S.W.3d 607, 611 (Mo. App. W.D.2006) (internal quotation omitted). [A] motion to intervene as of right under Rule 52.12(a)(2) may properly be denied if even one of these three elements is not established. Kinney, 200 S.W.3d at 611. Although Rule 52.12(c) is clear that a party wishing to intervene has to attach a "pleading setting forth the claim or defense for which intervention is sought," neither party attached such a pleading to their Motion to Intervene. Absent such a pleading, neither Plaintiffs nor this Court are in a position to understand the nature of the intervention being sought. Do they seek to intervene as relief defendants merely as to the injunctive relief being sought? Do they seek to intervene as Plaintiffs to pursue breach of contract claims against the Defendant City, as alleged in the affidavit of Joseph Downs? And if the latter, why is their participation in this civil rights lawsuit, rather than pursuit of their own remedies, necessary to vindicate those interests? Having failed to describe the nature of their proposed intervention, they cannot meet their burden. This Court should deny the motion to intervene. I. THE MOTION TO INTERVENE IS DEFECTIVE BECAUSE OPUS DEVELOPMENT COMPANY AND HSRE-ODC II MIZZOU LLC ARE FACTUALLY AND LEGALLY DISTINCT ENTITIES. Opus Development Company and HSRE-ODC II MIZZOU LLC seek to be treated as identical entities in their Motion to Intervene. As a matter of fact and law they are entirely separate. Opus Development Company has entered into contracts with the City of Columbia and Case 2:14-cv-04220-NKL Document 3-3 Filed 08/22/14 Page 2 of 20 3
arguably applied for permits to proceed with the student housing development at Eighth and Locust. 1
HSRE-ODC II MIZZOU LLC is a limited liability corporation incorporated under the laws of Delaware. When Plaintiffs signed and gathered signatures for the referendum petition to repeal Bill 62-14, HSRE-ODC II MIZZOU LLC did not exist. It did not exist in any form in any state until June 12, 2014, when it was apparently incorporated in the State of Delaware. 2 It did not receive authorization to conduct any business in the State of Missouri until July 30, 2014. This is after the City of Columbia repealed Bill 62-14, after Plaintiffs had signed and gathered signatures on the referendum petition to repeal Bill 130-14, and the day before the referendum petition to repeal Bill 130-14 was certified as sufficient. Thereafter, on August 7, it apparently purchased three parcels of real property in Boone County, Missouri, and recorded the deeds thereto on August 8, 2014. Opus Development Company, L.L.C., by contrast, was incorporated in Delaware in October 2012, and was authorized to do business in Missouri on January 8, 2013. 3 With full knowledge that a referendum petition was circulating in the community regarding the development agreement authorized by Bill 62-14, Opus Development Company LLC recorded the first development agreement with Defendant City of Columbia on April 1, 2014. This agreement acknowledges that "inadequate water, fire protection, electric, storm water and sanitary sewer facilities exist to serve the proposed increase in use of the Developer Tract which
1 Exhibit 5 to the Downs Affidavit shows correspondence to Crockett Engineering, not to Opus Development Company LLC; Exhibit 6 to the Downs Affidavit reveals a demolition permit filed by Peggy Tomlins, who apparently no longer owns the subject property; Exhibit 8 to the Downs Affidavit is correspondence to a Mr. Lewis at the "Opus AE Group" not the Opus Development Company LLC regarding permits. 2 See Exhibit 1 to the Affidavit of Jeremy A. Root, attached hereto as Exhibit A (July 30, 2014 authorization of HSRE-ODC II MIZZOU LLC to do business in Missouri). 3 See Exhibit 2 to the Affidavit of Jeremy A. Root, attached hereto as Exhibit A (authorization of Opus Development Company, LLC to do business in Missouri). Apparently, this is a distinct legal entity from Opus Development Corporation, an Illinois corporation with the same officers and business address, that revoked its authorization to do business in Missouri in March 2013. See Exhibit 3 to the Affidavit of Jeremy A. Root, attached hereto as Exhibit A. Case 2:14-cv-04220-NKL Document 3-3 Filed 08/22/14 Page 3 of 20 4
will result from the Project construction." 4 Opus also agreed not to "diminish or usurp the inherent rights and powers of the City" in that first development agreement. 5 Opus Development Company, LLC, alleges in the affidavit of Joseph Downs that the City of Columbia breached this development agreement. Downs Aff. 7 ("The City breached the Development Agreement") HSRE-ODC II MIZZOU LLC made no such agreements with the Defendant City. Due to these stark factual and legal differences between the two entities, it is impossible for the Court or the parties to discern the nature of the interests that each is seeking to protect in their joint motion to intervene. The Proposed Intervenors should be required to file separate motions to intervene that state clearly their interests in this civil rights lawsuit before they are permitted to intervene. II. THE MOTION TO INTERVENE SHOULD BE DENIED AS TO HSRE- ODC II MIZZOU LLC BECAUSE ITS INTERESTS WILL NOT BE IMPAIRED OR IMPEDED IN ANY WAY. HSRE-ODC II MIZZOU LLC bought this real estate on August 8, 2014. Nothing in this petition will affect the ownership of real estate in any way, nor is it alleged that it will do so. HSRE-ODC II MIZZOU LLC was not authorized to do business in Missouri until after the Plaintiffs had fully exercised their rights under the Columbia City Charter, Missouri Constitution and the U.S. Constitution, and the Defendants had commenced repeated violations of those rights. HSRE-ODC II MIZZOU LLC has not applied for any permits relating to this development, and it has no interest that will be affected by the outcome of this civil rights case. Its motion to intervene should be denied outright.
4 Downs Affidavit Ex. 1 at 1. 5 Downs Affidavit Ex. 1 at 8, 24. Case 2:14-cv-04220-NKL Document 3-3 Filed 08/22/14 Page 4 of 20 5
III. THERE IS NO EVIDENCE THAT THE DEFENDANTS WILL NOT ADEQUATELY PROTECT THE INTERESTS OF THE PROPOSED INTERVENORS. The third requirement for intervention as of right is that the existing parties will not protect the interests of the proposed Intervenors. Taken together, the allegations of the Petition and the assertions in the affidavit of Mr. Downs draw a compelling picture of the lengths that the Defendants are willing to go to advance the interests of the Proposed Intervenors. The Defendants sought to thwart the Plaintiffs' first repeal petition through the proposal and adoption of an identical development agreement with an ordinance that contained provisions designed expressly to discourage the use of the referendum. Subsequent to Council's repeal of Bill 62-14, and with a repeal of Bill 130-14 pending, the Defendants provided approval letters to the Proposed Intervenors regarding their project. Downs Affidavit, 11. Defendants apparently also gave some private assurance to the Proposed Intervenors that all permits would issue by August 25. See Downs Affidavit, 12-13. Defendants have done little else but advance the Proposed Intervenors' interests since March 2014, and the Proposed Intervenors provide no reason to believe that the Defendants will discontinue that support for their interests now. The Defendants have yet to file a pleading, so the Court has no way to determine whether the interests of the Proposed Intervenors, ill-defined as they are by their Motion to Intervene, will be adequately protected by the current parties to this dispute. CONCLUSION For the reasons set forth above, the Motion to Intervene of Opus Development Company, LLC and HSRE-ODC II MIZZOU LLC should be denied at this time.
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Respectfully submitted, STINSON LEONARD STREET LLP
By: /s/ Jeremy A. Root Jeremy A. Root, No. 59451 230 W. McCarty Street Jefferson City, MO 65101 (573)636-6263 (573)636-6231 (fax) Jeremy.root@stinsonleonard.com
HOLDER SUSAN SLUSHER OXENHANDLER
Josh Oxenhandler, No. 51645 107 N. Seventh Street Columbia, MO 65201 Oxenhandler@gmail.com
ATTORNEYS FOR PLAINTIFFS
CERTIFICATE OF SERVICE
I certify that a copy of the foregoing was served upon the Defendants via email to Nancy Thompson, City Counselor, at njthomps@gocolumbiamo.com on August 18, 2014.
A copy of the above was served upon Tom Harrison, counsel for the Proposed Intervenors, via email at tom@vanmatre.com on August 18, 2014.
/s/ Jeremy A. Root Case 2:14-cv-04220-NKL Document 3-3 Filed 08/22/14 Page 6 of 20 Case 2:14-cv-04220-NKL Document 3-3 Filed 08/22/14 Page 7 of 20 Ex. A to Plaintiffs' Response to Motion to Intervene Case 2:14-cv-04220-NKL Document 3-3 Filed 08/22/14 Page 8 of 20 Ex. 1 to Affidavit of Root Regarding Motion to Intervene Case 2:14-cv-04220-NKL Document 3-3 Filed 08/22/14 Page 9 of 20 Ex. 1 to Affidavit of Root Regarding Motion to Intervene Case 2:14-cv-04220-NKL Document 3-3 Filed 08/22/14 Page 10 of 20 Ex. 1 to Affidavit of Root Regarding Motion to Intervene Case 2:14-cv-04220-NKL Document 3-3 Filed 08/22/14 Page 11 of 20 Ex. 1 to Affidavit of Root Regarding Motion to Intervene Case 2:14-cv-04220-NKL Document 3-3 Filed 08/22/14 Page 12 of 20 Ex. 1 to Affidavit of Root Regarding Motion to Intervene Case 2:14-cv-04220-NKL Document 3-3 Filed 08/22/14 Page 13 of 20 Ex. 2 to Affidavit of Root Regarding Motion to Intervene Case 2:14-cv-04220-NKL Document 3-3 Filed 08/22/14 Page 14 of 20 Ex. 2 to Affidavit of Root Regarding Motion to Intervene Case 2:14-cv-04220-NKL Document 3-3 Filed 08/22/14 Page 15 of 20 Ex. 2 to Affidavit of Root Regarding Motion to Intervene Case 2:14-cv-04220-NKL Document 3-3 Filed 08/22/14 Page 16 of 20 Ex. 2 to Affidavit of Root Regarding Motion to Intervene Case 2:14-cv-04220-NKL Document 3-3 Filed 08/22/14 Page 17 of 20 Ex. 3 to Affidavit of Root Regarding Motion to Intervene Case 2:14-cv-04220-NKL Document 3-3 Filed 08/22/14 Page 18 of 20 Ex. 3 to Affidavit of Root Regarding Motion to Intervene Case 2:14-cv-04220-NKL Document 3-3 Filed 08/22/14 Page 19 of 20 Ex. 3 to Affidavit of Root Regarding Motion to Intervene Case 2:14-cv-04220-NKL Document 3-3 Filed 08/22/14 Page 20 of 20