UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
FRIENDS OF THE PARKS; )
SYLVIA MANN; and JOHN BUENZ,, )
)
Plaintiffs, )
) Case No. 14-cv-09096
v. )
Judge John W. Darrah
CHICAGO PARK DISTRICT and )
CITY OF CHICAGO, J
)
Defendants. )
MEMORANDUM OPINION. R
Plaintiffs brought this action, seeking to bar or enjoin Defendants from approving or
otherwise proceeding with the construction of a museum on land that is adjacent to
Lake Michigan. Defendants have moved, pursuant to Federal Rules of Civil Procedure 12(b(1)
and 12(b)(6), to dismiss the Complaint.
BACKGROUND
‘The following is taken from the Complaint, which is assumed to be true for purposes of a
motion to dismiss. See Reger Dev., LLC v. Nat'l City Bank, 592 F.3d 759, 763 (7th Cir. 2010).
Plaintiff Friends of the Parks (“FOTP”) is a nonprofit park advocacy organization, dedicated to
preserving, protecting, and improving Chicago’s parks and forest preserves. Plaintiffs
Sylvia Mann and John Buenz are residents of Illinois. Defendant Chicago Park Distriet (“Park
District”) is “a body politic and corporate” established by state law. 70 ILL. Comp. Star.
§ 1505/3. Defendant City of Chicago is a body politic and municipal corporation. (Compl. $f 6-
10.)In May 2014, a task force appointed by Chicago Mayor Rahm Emanuel issued a report
recommending the parking lots south of Soldier Field as the site for constructing a museum, to
bbe known as the Lucas Museum of Narrative Art. The Museum is to be operated by a nonprofit
corporation also called the Lucas Museum of Narrative Art (“the LMNA”) and will be dedicated
to the exhibition of “narrative art” selected by the LMNA. ‘The Mayor has publicly endorsed the
proposed location, (Id. ff 13-16, 27.)
On or about September 8, 2014, the Park District entered into a memorandum of
understanding (“MOU”) with the LMNA, attached to the Complaint as Exhibit A. The MOU
memorializes the terms discussed between the Park District and the LMNA, including the
construction, use and operation of the Museum. (Jd. Ex. A at 2,4 G.) It provides that the
Museum will be located on the plot of land recommended by the task force and endorsed by the
Mayor:
‘The Museum will be located in the Museum Campus in the area generally lying
between East Waldren Drive on the north and the McCormick Place Lakeside
Center (East Building) on the south (the “Project Area”)
(Id. Ex. A at 2,1.) The “Project Area” is located within Burnham Park and consists entirely of
land recovered from the navigable waters of Lake Michigan, most of it during the 1920s. (Id.
$22.) Under the MOU (as more fully set out below), the LMNA “will have the exclusive right
to occupy, use, maintain, manage and control the Museum Building and the Museum Site.” (Id
Ex. A at 10.) The MOU does not specify whether the Museum will be owned by the LMNA,
the City or the Park District. (Jd. {¥] 28-29.)
On November 13, 2014, Plaintiffs filed a four-count Complaint, asserting federal claims
under § 1983 for violation of due process and equal protection (Counts I and Il, respectively) and
state law claims that Defendants acted ultra vires and in violation of the public trust (Counts IIT
2and IV, respectively). Defendants have moved to dismiss the Complaint under Rule 12(b)(1) for
lack of standing and lack of ripeness and under Rule 12(b)(6) for failure to state a claim.
LEGAL STANDARD
12(b)(1) Motion
A Rule 12(b)(1) motion challenges standing and ripeness. Fed. R. Civ. P. 12(b)(1).
Under Article III § 2 of the United States Constitution, federal courts are limited to hearing
“cases” and “controversies.” Allen v. Wright, 468 U.S. 737, 750 (1984). This case-or-
controversy limitation requires “a claim that is ripe and a plaintiff who has standing.”
Ind. Right to Life, Ine, v, Shepard, 507 F.3d 545, 549 (7th Cir. 2007). ‘These concepts are related
but distinct: “Whereas ripeness is concerned with when an action may be brought, standing
focuses on who may bring a ripe action.” Id. (quoting Pic-A-State Pa. v. Reno, 76 F.3d 1294,
1298 n. 1 (3rd Cir. 1996) (emphasis in original)). The plaintiff bears the burden of alleging facts
sufficient to establish standing and ripeness. See, e.g., Scanlan v. Eisenberg, 669 F.3d 838, 841-
42 (7th Cir. 2012). The court may look outside of the complaint’s allegations and consider
whatever evidence has been submitted on these issues. Ezekiel v. Michel, 66 F.3d 894, 897 (7th
Cir, 1995).
12(b)(6) Motion
A Rule 12(b)(6) motion tests the legal sufficiency of the complaint. Christensen v,
County of Boone, 483 F.3d 454, 458 (7th Cir. 2007). To survive a 12(b)(6) motion, a complaint
must allege “enough facts to state a claim to relief that is plausible on its face.”
Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570 (2007). “Threadbare recitals of the elements
of a cause of action, supported by mere conclusory statements, do not suffice.” Ashcroft v. Igbal,
556 U.S. 662, 678 (2009) (citing Twombly, 550 U.S. at 555). Rather, the complaint must provide
3a defendant “with ‘fair notice’ of the claim and its basis.” Tamayo v. Blagojevich, 526 F.3d
1074, 1081 (7th Cir. 2008) (quoting Fed. R. Civ. P. 8(a)(2) and Twombly, 550 U.S. at 555).
For purposes of a motion under Rule 12(b)(1) or Rule 12(b)(6), the court accepts all well-
pleaded factual allegations as true and construes all reasonable inferences in favor of the
plaintiff. Scanlan, 669 F.3d at 841; Tamayo, 526 F.3d at 1081.
ANALYSIS
Standing and Ripeness
Defendants first argue that Plaintiffs’ claims fail to satisfy the requirements of standing
and ripeness because they are contingent on future events, specifically the approval of the
Museum by the Chicago Plan Commission, the Chicago City Council and the board of the Park
District, Plaintiffs respond that under the MOU, the Park District has already committed to a
transfer of exclusive control of the public property to the LMNA, in breach of the public trust (as
discussed more fully below) without legislative approval, and consequently, Plaintifis are
suffering an injury to their beneficial interest they hold in the property as citizens of Illinois.
Standing exists where a plaintiff can show: (1) a concrete and particularized injury that is
actual or imminent; (2) a causal connection between the injury and the defendant's action; and
(3) a likelihood that the injury can be redressed if the court finds in the plaintif?’s favor. Lujan v.
Defenders of Wildlife, 504 U.S. 555, 560-61 (1992). “All that a plaintiff need show to establish
standing to sue [in the Article III sense] is a reasonable probability ~ not a certainty — of
suffering tangible harm unless he obtains the relief that he is seeking in the suit.” Hoover v.
Wagner, 47 F.3d 845, 847 (7th Cir. 1995) (citing Pennell v. San Jose, 485 U.S. 1, 8 (1988));
Sierakowski v. Ryan, 223 F.3d 440, 443 (7th Cir. 2000) (“[A] plaintiff in search of prospective
equitable relief must show a significant likelihood and immediacy of sustaining some direct
4injury.”). Thus, standing is not precluded simply because the harm is not immediate, but rather
likely to occur in the near future, “Standing depends on the probability of harm, not its temporal
proximity.” 520, Michigan Ave. Assocs., Lid. v. Devine, 433 F.3d 961, 962 (7th Cir. 2006).
In Paepeke v. Public Building Comm'n, 263 N.E.2d 11, 18 (Ill. 1970), the Illinois
Supreme Court addressed the standing of a group of taxpayers who sued to prevent the
implementation of plans to construct facilities on public parks. ‘The court held that the plaintifts
had standing to contest the proposed construction because they are beneficiaries of lands held in
the public trust:
If the “public trust” doctrine is to have any meaning or vitality at all, the members
of the public, at least taxpayers who are the beneficiaries of that trust, must have
the right and standing to enforce it. To tell them that they must wait upon
governmental action is often an effectual denial of the right for all time. The
conclusion we have reached is in accord with decisions in other jurisdicti
e.g, Robbins v, Department of Public Works, 355 Mass. 328, 244 N.E.2d 577,
and Gould v. Greylock Reservation Com., 350 Mass. 410, 215 N.E.2d 114,
wherein plaintiffs’ rights as residents in a trust of public lands were enforced
without question
Id; see also Booth v. Lemont Mfg. Corp., 440 F.2d 385, 386n2 (7th Cir. 1971) (citing Paepcke,
263 N.E.2d 11, and noting that no special injury was needed to provide the requisite standing in a
public trust suit); Friends of the Parks v. Chicago Park Di
t, 786 N.E.2d 161 (Ill. 2003)
(plaintiffs, including present Plaintiff FOTP, brought public trust suit related to renovations made
to stadium owned and operated by Chicago Park District); Lake Michigan Fed'n v. U.S. Army
Corps of Engin’rs, 742 F. Supp. 441 (N.D. Ill. 1990) (plaintiffs, a not-for-profit corporation and
individual taxpayers, brought public trust suit to enjoin construction of lakefill by private
university).
Under Paepeke, itis clear that Plaintifi’s have standing to assert their public trust and the
related ultra vires state claims, Plaintiffs further have alleged their rights under the public trust
5doctrine are being deprived without procedural due process and in violation of equal protection,
so as to violate the federal Constitution, Plaintiffs have identified a concrete injury ~ that the
lands held in the public trust are imminently in danger of being altered by the actions of
Defendants ~ and this injury can be redressed by a favorable court decision. See Lujan, $04 U.S.
at 560-61. Consequently, Plaintiffs have established that they have standing to pursue their state
and federal claims.
In determining whether a case is ripe, courts will consider: (1) “the fitness of the issues
for judicial decision” and (2) “the hardship to the parties of withholding court consideration.”
Pac. Gas & Elec. Co. v. State Energy Res. Conservation & Dev. Comm'n, 461 U.S. 190, 201
(1983) (quoting Abbott Labs. v, Gardner, 387 U.S. 136, 149 (1967)). “Claims that present
purely legal issues are normally fit for judicial decision.” Wis. Right to Life State PAC v.
Barland, 664 F.3d 139, 148 (7th Cir. 2011) (citing Abbott Labs., 387 U.S. at 149).
Here, the Park District has signed an agreement, the MOU, with the LMNA regarding the
terms of the construction of the Museum. Although Defendants argue that the Museum will need
additional approvals before it is constructed, the MOU makes clear that the Park District has
already committed to transferring control of public park land to the LMNA. Plaintiffs’ claimsare based on that transfer of control of public trust land to a private entity. Consequently,
Plaintiffs’ claims are ripe for adjudication."
Defendants’ Motion to Dismiss is denied on the basis of standing and ripeness.
Public Trust Claim
In Count IV of the Complaint, Plaintiffs allege that Defendants have engaged in a breach
of trust to Plaintiffs and other members of the public with respect to the subject property. The
United States Supreme Court announced the public trust doctrine in [inois Central R. Co. v.
Ilinois, 146 U.S. 387 (1892). The Supreme Court held:
that the same doctrine as to the dominion and sovereignty over and ownership of
lands under the navigable waters of the Great Lakes applies which obtains at the
common law as to the dominion and sovereignty over and ownership of lands
under tide waters on the borders of the sea, and that the lands are held by the same
right in the one case as in the other, and subject to the same trusts and limitations.
Mlinois Cent. R. Co., 146 US. at 437. In other words, “the State holds title to submerged land, as
is involved here, in trust for the people, and . .. in general the governmental powers over these
lands will not be relinquished.” People ex rel. Scott v. Chicago Park Dist., 360 N.B.24 773, 779
(al 1976).
Under the public trust doctrine, the State cannot “abdicate its trust over property in which
the whole people are interested . .. so as to leave them entirely under the use and control of
' Defendants also contend that Plaintiffs’ claims violate the separation of powers
doctrine, on the basis that those claims seek judicial interference in legislative actions.
Specifically, they argue that Plaintiffs are asking this Court to enjoin the City Council from
approving the zoning for the Museum before the City has even taken any action. Plaintifis
respond that they are not seeking relief against the Plan Commission or the City Council and that
any zoning approvals are irrelevant to the question whether the Park District has violated a legal
duty by proceeding without state authority, Plaintiffs’ claims do not run afoul of the separation
of powers doctrine. Rather, as discussed below, judicial oversight is necessary to ensure that the
proposed transfer is consistent with preserving the public trust.private parties.” Illinois Cent, R, Co., 146 U.S. at 453 (emphasis added). State control over
public lands cannot be relinquished “except as to such parcels as are used in promoting the
interests of the public therein, or can be disposed of without any substantial impairment of the
public interest in the lands and waters remaining.” Id.
[Lletit be said that this court is fully aware of the fuet that the issues presented in
this case illustrate the classic struggle between those members of the public who
would preserve our parks and open lands in their pristine purity and those charged
with administrative responsibilities who, under the pressures of the changing
needs of an increasingly complex society, find it necessary, in good faith and for
the public good, to encroach to some extent upon lands heretofore considered
inviolate to change, The resolution of this conflict in any given case is for the
legislature and not the courts.
Paepcke, 263 N.E.24 at 21, However, the purpose “of the public trust doctrine is to police the
legislature’s disposition of public lands.” Lake Michigan Fed'n, 742 F. Supp. at 446. “If courts,
were to rubber stamp legislative decisions, ..., the doctrine would have no teeth. The legislature
would have unfettered discretion to breach the public trust as long as it was able to articulate
some gain to the public.” Id.
Three basic principles can be distilled from this body of public trust case law.
First, courts should be critical of attempts by the state to surrender valuable public
resources to a private entity. . . . Second, the public trust is violated when the
primary purpose of a legislative grant is to benefit a private interest. .. . Finally,
any attempt by the state to relinguish its power over a public resource should be
invalidated under the doctrine,
Id, at 445 (internal citations omitted).
This is not to say that the State can never relinquish control over lands held in the public
trust, For example, in People ex rel, Attorney Gen. v. Kirk, the Illinois Supreme Court held that
the conveyance of formerly submerged land to private parties was permissible:Under the authorities, the law seems to be well settled that the legislature was
clothed with power to enact a law authorizing the extension of the driveway over
and upon the waters of the lake, so long as the extension did not interfere with
navigation, commerce, and the right of fishery upon the lake; and we see no
reason why the submerged lands reclaimed by the extension of the driveway may
not, as provided in the act, be appropriated for the payment of the improvement.
People ex rel. Attorney Gen. v. Kirk, 45 NE. 830, 834-35 (Ill. 1896). The benefit to the private
parties was to further the public purpose of extending Lake Shore Drive and was incidental to
that purpose. See id. The Illinois Supreme Court further explained the public trust doctrine in
regard to submerged lands in Droste v, Kerner: “The proper execution of this public trust with
respect to submerged lands requires that the conveyance of any particular parcel to a shore owner
be consistent with the public interest and not impair the interest of the public in the lands and
waters remaining.” Droste v. Kerner, 217 N.E.2d 73, 76 (IIL. 1966). In contrast, the legislative
grant of submerged land to Loyola University of Chicago was struck down because “while the
project has some aspects which are beneficial to the public, the primary purpose of the grant is to
satisfy a private interest.” Lake Michigan Fed’n, 742 F. Supp. at 445. The legislature can
alienate the State’s interest in public trust land if the primary purpose is not to satisfy a private
interest and does not impair the interest of the public in the remaining lands and waters.
Plaintiffs claim that the construction of the LMNA will unduly encroach on open space.
Plaintiffs apply the “Wisconsin test” to this claim and argue that the LMNA fails the test.
However, while the “Wisconsin test” was discussed in Paepeke, it was not adopted as applicable
in public trust cases’, and the Illinois Supreme Court again declined to use the test in Friends of
the Parks. See Friends of the Parks, 786 N.E.2d at 170 (citing Paepcke, 263 N.E.2d at 18-20).
2 The “Wisconsin test” was set out in Paepcke: “the Supreme Court of Wisconsin
approved proposed diversions in the use of public trust lands under conditions which
demonstrated (1) that public bodies would control use of the area in question, (2) that the area
9‘The most recent Illinois Supreme Court decision analyzing a ssue is Friends of
the Parks. In Friends of the Parks, the Illinois Supreme Court distinguished the Soldier Field
renovation from the situation in /Ilinois Central Railroad where submerged land would be
.E.2d at 169. The court stated:
irretrievably lost to a private party. Friends of the Parks, 786
There is litte similarity between MMinois Central or Scott and the case before us.
The Park District is, and will remain, the owner of the Burnham Park property,
including Soldier Field. Neither the Act, the implementing agreements, nor the
project documents provide for a conveyance of the Soldier Field property to the
Bears. There is no abdication of contro! of the property to the Bears.
in the owner of
Id. at 170. The Illinois Supreme Court noted that the Park District would rer
the Burnham Park property, there was no abdication of control of the property to the Bears, the
Park District would remain as landlord under a lease agreement with the Bears, and the Park
District would remain the owner of the remainder of Bumham Park. Jd. Therefore, there was no
need to determine whether transferred land would be used in promoting the interests of the
public therein, or could be disposed of without any substantial impairment of the public interest
in the lands and waters remaining. See Illinois Cent. R. Co., 146 U.S. at 453. The Court did not
reach the question of whether “a public trust challenge might be made on the basis that a
diversion from the previously designated use of trust property is not justified unless certain,
standards are met.” Friends of the Parks, 786 N.E.2d at 170. Instead, the Court adopted the
would be devoted to public purposes and open to the public, (3) the diminution of the area of
original use would be small compared with the entire area, (4) that none of the public uses of the
original area would be destroyed or greatly impaired and (5) that the disappointment of those
wanting to use the area of new use for former purposes was negligible when compared to the
greater convenience to be afforded those members of the public using the new facility.”
Paepcke, 263 N.E.2d at 19. The court in Paepcke referred to the test as a “useful guide for future
administrative action.” Id. at 20 (emphasis added).
10rationale in Paepcke that legislative intent controlled in analyzing the tradeoff’ between public
benefits. Id.
‘The Memorandum of Understanding between the Park District and the LMNA outlines
‘the agreement to build the museum, “The land on which the Museum will be located is owned
by the Park District.” (MOU, Recitals D.) Regarding an Operating Agreement, the MOU states:
LMNA and the Park District will enter into an agreement governing the use of the
Museum Site consistent with this MOU. The operating agreement will provide
that, subject to the rules and regulations of the Park District, LMNA will have the
exclusive right to occupy, use, maintain, manage, and control the Museum
Building and the Museum Site. In furtherance of the foregoing, it is understood
that notwithstanding the Park District’s ownership of the Museum Site, so long as
LMNA is operating the Museum for the Museum Purpose, LMNA shall have full
and exclusive operational control of the Museum Building and any other
improvements located on the Museum Site to permit LMNA (a) to make all
repairs and improvements to the Museum Building and Museum Site, subject to
Park District approval for material and substantial changes (to be defined in the
operating agreement), and (b) to conduct all business and affairs related to the
operation of the Museum, including, without limitation, the employment of all
employees; the selection of content and manner of presentation of all programs,
lectures and exhibits; the purchasing of all materials, supplies and equipment; the
making of all interior alterations; and such other activities as may be necessary or
appropriate to the operation of the Museum.
(MOU, Understandings { 10.) The MOU states that it “is intended to provide a general
framework for the subsequent negotiation of definitive agreements regarding the development
and operation of the Museum and is not intended to create any binding contractual obligations on
any party.” (MOU, Understandings 19.) If the Park District and LMNA “do not execute a
development agreement and an operating agreement, each as described above, within twelve (12)
‘months of the date hereof, this MOU shall terminate.” (Jd.)
Defendants argue that the MOU “does not grant or convey anything . . . it merely
provides the general framework for subsequent negotiations.” (Internal citations omitted.) (Def.
Park District Reply at p. 8.) Defendants further argue that, under the MOU, the Park District will
W‘maintain ownership of the land, but ownership does not necessarily equal control. The MOU
states that the Park District currently owns the land in question. However, the MOU also states
the LMNA and the Park District will enter into an operating agreement, consistent with the
MOU, which “will provide that... [the] LMNA will have the exclusive right to occupy, use,
maintain, manage, and control the Museum Building and the Museum Site.” (Emphasis added.)
This language could be reasonably construed that the parties intend any future operating
agreement will give LMNA exclus
fe control over public land
Unlike the situation in Friends of the Parks, the MOU, as pled, could cause an abdication
of control of the property to the LMNA. See Friends of the Parks, 786 N.E.2d at 170. There is,
also no indication the Park District will remain the owner of the property or would remain as a
landlord under a lease agreement. However, as explained above, the Park District cannot
abdicate its trust over public land so as to leave it entirely under the use and control of private
parties. Illinois Cent, R. Co., 146 U.S. at 453. The Complaint alleges enough facts to state that
Defendants intend to transfer the exclusive right to use and control the Museum Site to a private
entity, (See MOU, Understandings § 10.) The Complaint plausibly states a claim that the
agreement violates the public trust doctrine.
Ultra Vires Claim
In Count III of the Complaint, Plaintifi’s allege that the Park District is acting ultra vires
and without a specific authorization from the General Assembly. Defendants respond that the
legislature has given the Park District control over public parks within Chicago and has given the
Park District power to convey park lands for the proposed museum through the Park District
Aquarium and Museum Act, 70 ILL. Comp. STAT. § 1230/1 ef seg. Burnham Park, the proposed
location of the LMNA, is owned by the Park District, The Legislature created the South Park
12Commission in 1869 to acquire land to be transformed into parks. See 1869 Ill. Laws 358. In
1903, the Legislature passed the Park Commissioners Water Control Act, which granted park
‘commissioners “control over any public park ... bordering upon any public waters . . . the power
to extend such park . .. over and upon the bed of such public waters,” to connect and extend park
lands, See 70 ILL. Comp, STAT. § 1230/1 er seg. These Acts vested the park distriots with the
authority of the Legislature over public park lands:
The city of Chicago, to the extent of the jurisdiction delegated to it by its charter,
is but an effluence from the sovereignty of Illinois, governs for Illinois, and its
authorized legislation and local administration of law are legislation and local
administration by Llinois through the agency of that municipality.” Byrne v.
Chicago General Railway Co., 169 I. 75, 85, 48 N-E. 703, 705. The city held,
and the park commissioners now hold, the park in the exercise of governmental
powers in trust for the public.
Ward v. Field Museum of Natural History, 89 N.E. 731, 736 (Ill. 1909). Thus, the Park Districts
act as delegates of the legislature in holding the parks in trust for the public.
In 1934, the Park District was created when the City’s existing park districts were
consolidated, See 70 It. Come, Star. § 1501/1. The Park District was given “title to all lands,
property and funds of every description now owned or held by the park districts and corporate
authorities superseded by the Chicago Park District.” Jd. at § 1505/12, Further, the Illinois
‘Supreme Court has recognized that the Park District is the owner of Bumham Park. See Friends
of the Parks, 786 N.E.2d at 170 (“The Park District is, and will remain, the owner of the
Burnham Park property . ..”).
‘The park districts’ power to build and maintain museums in public parks, or to permit the
directors or trustees of museums to do the same, comes from the Park District Aquarium and
Museum Act, 70 ILL. Comp. Star. § 1230/1 ef seq. As originally written, the Museums in Parks
13Act, “which
ited the privilege to museums located in a public park on the first day of July,
1903, was intended to apply, and as a matter of fact did apply, only to {the Field Museum].”"
S. Park Comm'rs v. Montgomery Ward & Co., 93 N.E. 910, 912 (Ill. 1910). However, the
legislature amended the Museums in Parks Act and gave “the corporate authorities of park
districts power to erect and maintain museums within any park, and to permit the directors or
trustees of any museum to erect the same in any park and to charge an admission fee, except on
certain days named.” Ward, 89 N.E. at 735 (emphasis added).
Plaintiffs contend the legislature did not intend to give the Park District such broad
authority. As the Journal of the Senate reflects, the reason the legislature amended the statute
‘was to prevent a suit accusing the State of giving a special privilege to the Field Museum. See
Journal of the Senate of the 47th General Assembly of the State of Illinois p. 941-42;
S. Park Comm'rs, 93 N.E. at 912. The City and the Park District respond that the legislature
chose to explicitly allow the construction of any museum: “[T]he corporate authorities of cities
and park districts having the control or supervision of any public park or parks, are hereby
authorized ... to permit the directors or trustees of any museum... to erect and maintain its
‘museum or museums within any public park now or hereafter under the control or supervision of
any city or park district, and to contract with the directors or trustees of any such museum or
museums relative to the erection and maintenance thereof.” 1911 Ill. Laws 435. When statutory
Janguage “has a plain and unambiguous meaning with regard to the particular dispute in the
case,” that meaning controls and the court’s “inquiry must cease.” KM Enters., Inc. v. Global
Traffic Techn,, Inc., 725 F.3d 718, 728 (7th Cit. 2013) (quoting Robinson v. Shell Oil Co., 519
U.S. 337, 340 (1997)).
14However, Plaintiffs also argue that the legislature can never abdicate control of property
held in public trust. As discussed above, the seminal case, Illinois Central Railroad, (see Lake
Michigan Fed’n, 742 F. Supp. at 444), holds that the state cannot “abdicate its trust over property
in which the whole people are interested.” Illinois Cent. R. Co., 146 U.S. at 453 (emphasis
added). There is a difference between public lands owned by the state and public lands subject
to the public trust doctrine:
That the State holds the title to the lands under the navigable waters of Lake
Michigan, within its limits, in the same manner that the State holds title to soils
under tide water, by the common law, we have already shown; and that title
necessarily carries with it control over the waters above them, whenever the lands
are subjected to use. Bul it is a title different in character from that which the
State holds in lands intended for sale. It is different from the title which the
United States hold in the public lands which are open to preemption and sale. It is
a title held in trust for the people of the State, that they may enjoy the navigation
of the waters, carry on commerce over them, and have liberty of fishing therein,
freed from the obstruction or interference of private parties.
Id, at 452 (emphasis added); see also People ex rel. Scott, 360 N.E.2d at 779 (“It can be seen that
the State holds title to submerged land, as is involved here, in trust for the people, and that in
general the governmental powers over these lands will not be relinquished.”) (emphasis added).
The State has the authority to relinquish control over public trust lands, but itis a limited ability
compared to public lands not held within the public trust.
Several cases involving the transfer of lands subject to the public trust doctrine have
analyzed state legislation. In Kirk, a case in which a grant to a private entity was upheld, the
Illinois Supreme Court considered whether the transfer of public trust land to private parties was
valid “under an act of the legislature of the state of Illinois passed in the year 1889, and for the
purpose of having removed the filling, breakwaters, and extension of the drive already made
under said contracts.” Kirk, 45 N.E. at 830. In Paepcke, the Illinois Supreme Court analyzed
15“whether there has been a sufficient manifestation of legislative intent” to permit a school and
park facility in Washington Park. See Paepcke, 263 N.E.2d at 15-20. In People ex rel. Scott v.
Chicago Park Dist., the Illinois Supreme Court analyzed whether a bill conveying submerged
land to the United Steel Corporation violated the public trust doctrine. People ex rel. Scott, 360
N.E.2d at 777-781. The Illinois Supreme Court held that the public purpose contained in the bill
was unpersuasive, and declared the bill void, because the dominating purpose was private. Id. at
71
Whether the use of land protected by the public trust doctrine is permissible has been
determined in light of authorizing legislation of the Illinois General Assembly. Land in the
public trust is “held by the whole people for purposes in which the whole people are interested.”
Illinois Cent, R. Co., 146 U.S. at 456 (emphasis added). Defendants have not presented a case,
beginning with the recognition of the public trust doctrine in Illinois Central Railroad to the
present, where a lesser representative public body than the Tilinois legislature transferred or
attempted to transfer an interest in public trust land to a private party on its own authority. All of
these cases involved specific legislative enactments. The case law suggests action by the Illinois
General Assembly is required to initiate the transfer of public land held in trust for all the
citizens of Illinois. Therefore, Plaintiffs have plausibly stated a claim that conveyance of park
lands by the Park District is ultra vires for the purposes of a motion to dismiss under 12(b)(6).
Due Process Claim
In Count I of the Complaint, Plaintiffs allege a Fourteenth Amendment due process
claim. “Due process is a flexible concept which ‘calls for such procedural protections as the
particular situation demands.” Buttitta v. City of Chicago, 9 F.3d 1198, 1201 (7th Cir. 1993)
(quoting Morrissey v. Brewer, 408 U.S. 471, 481 (1972)). In order to state a Fourteenth
16‘Amendment procedural due process claim, Plaintiffs must allege that “(1) [they] had a
constitutionally protected property interest, (2) {they] suffered a loss of that interest amounting to
a deprivation, and (3) the deprivation occurred without due process of law.” LaBella Winnetka,
Inc. v, Vill. of Winnetka, 628 F.3d 937, 943-44 (7th Cir. 2010). The Constitution does not create
property interests; rather, protected property interests must derive from an independent source
such as state law. Buttitta, 9 F.3d at 1201 (citing Cleveland Bd. of Educ. v. Loudermill, 470 US.
532, 538 (1985), and Bd. of Regents v. Roth, 408 U.S. 564, 570 (1972)).
Here, Plaintiffs allege that Defendants are violating due process because Defendants are
transferring control of the lakefront property to the LMNA without first obtaining authorization
from the Illinois General Assembly. (Compl. §§ 42-43.) Citing the Illinois Supreme Court's
decision in Paepcke, 263 N.E.2d at 18, Plaintifi’ argue that each taxpayer of Ilinois has a
fractional beneficial interest in the property which the state of Illinois holds in trust for them, so
as to create a protectable property interest. Plaintiffs distinguish their claims from the typical
taxpayer standing cases, such as in Booth, 440 F.2d at 386-87, where a plaintiff sues on behalf of
the government to bar the misuse of public funds and does not have a property right at stake,
Plaintiffs argue that here, they are not suing on behalf of the government, but rather, to enforce
their own rights as beneficiaries of property held in the public trust. Plaintiffs further contend
that they have been deprived of the chance to oppose Defendants’ conveyance of property to the
LMNA in the proper forum, the General Assembly of Illinois.
Construing the allegations in Plaintiffs’ favor, as required, Plaintiffs have sufficiently
stated a procedural due process claim under the Fourteenth Amendment. Plaintiffs have alleged
a state-created property interest in the lakefront property and that Defendants’ actions are
depriving Plaintiffs of that interest. Plaintifis further have alleged that Defendants have not
17provided sufficient process for that deprivation by failing to obtain approval from the General
Assembly, Consequently, Defendants’ Motion to Dismiss is denied with respect to Count I
Equal Protection Claim
In Count Il, Plaintiffs assert a Fourteenth Amendment equal protection claim, Equal
protection claims are claims of discrimination: “The purpose of the equal protection clause of
the Fourteenth Amendment is to secure every person within the State’s jurisdiction against
intentional and arbitrary discrimination, whether by express terms of a statute or by its improper
execution through duly constituted agents.” Vill. of Willowbrook v. Olech, 528 U.S. 562, 564
(2000) (quoting Sioux City Bridge Co. v. Dakota County, 260 U.S. 441, 443 (1923)) (intemal
quotation marks omitted). Typically, such claims target “governmental classifications that
‘affect some groups of citizens differently than others.” Engquist v. Or. Dep't of Agric. 553
U.S. 591, 601-02 (2008) (quoting McGowan v. Maryland, 366 U.S. 420, 425 (1961)). Less
common are “so-called ‘class of one™ equal protection claims, where a plaintiff alleges that “she
has been irrationally singled out” for discriminatory treatment, Engquist, 553 U.S. at 601 (citing
Olech, 528 U.S. 562). Where plaintiffs are not part of a protected class, their equal protection
claims will be subject to a rational relationship scrutiny. Zambrano v. Reinert, 291 F.3d 964,
970 (7th Cir. 2002).
Here, Plaintiffs do not allege that they are part of a group of citizens that have been
irrationally subjected to a discriminatory treatment by the government. Furthermore, in their
Response brief, Plaintiffs concede that they are not making a “class of one” challenge. Rather,
the basis of Plaintiffs’ equal protection claim is that Defendants are granting the LMNA a
“windfall” by “arbitrarily” granting the LMNA a special right to lakefront property. These
allegations are insufficient to allege that there is no rational basis for Defendants’ actions. See
18Wroblewski v. Washburn, 965 F.2d 452, 460 (7th Cir. 1992) (“{t]o survive a motion to dismiss
for failure to state a claim, a plaintiff must allege facts sufficient to overcome the presumption of
rationality that applies to government classifications”).
‘As Plaintifiés have failed to state an equal protection claim, Count II of the Complaint is
dismissed pursuant to Rule 12(b)(6).
CONCLUSION
For the reasons set forth above, Defendants’ Motions to Dismiss (19, 22] are denied in
part and granted in part. The Motions are denied as to Counts I, II and IV. Count II of the
Complaint is dismissed without prejudice. Plaintiffs are granted leave to amend this claim, if
they can do so in accordance with Rule 11, within thirty days of this Order.
Date:_March 12, 2015
JOHN W. DARRAH
United States District Court Judge
19