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Docket No. 87809-Agenda 16-September 2001.

THE SOUTHWESTERN ILLINOIS DEVELOPMENT 
AUTHORITY, Appellant, v. NATIONAL CITY
ENVIRONMENTAL, L.L.C., et al., Appellees.

Opinion filed April 4, 2002.

JUSTICE GARMAN delivered the opinion of the court:

The issue in this case is whether the Southwestern IllinoisDevelopment Authority (SWIDA) properly exercised the power ofeminent domain to take property owned by National CityEnvironmental, L.L.C., and St. Louis Auto Shredding Company(collectively NCE), and convey that property to GatewayInternational Motorsports Corporation (Gateway). The circuitcourt of St. Clair County ruled that SWIDA had properly exercisedits authority to take the land in question. The appellate courtreversed. 304 Ill. App. 3d 542. On April 19, 2001, we reversed thedecision of the appellate court, but subsequently granted rehearing.We now affirm the decision of the appellate court.

BACKGROUND

SWIDA was created in 1987 by the Illinois General Assemblythrough passage of the Southwestern Illinois DevelopmentAuthority Act (the Act) (70 ILCS 520/1 et seq. (West 1998)(formerly Ill. Rev. Stat. 1991, ch. 85, par. 6151 et seq.)). SWIDAis a political entity and municipal corporation whose statedpurpose is to "promote industrial, commercial, residential, service,transportation and recreational activities and facilities, therebyreducing the evils attendant upon unemployment and enhancingthe public health, safety, morals, happiness and general welfare ofthis State." 70 ILCS 520/2(g) (West 1998).

The Act mandates that SWIDA "promote development withinthe geographic confines of Madison and St. Clair counties." 70ILCS 520/5 (West 1998). It is the duty of SWIDA to assist in thedevelopment, construction, and acquisition of industrial,commercial, housing or residential projects within these counties.70 ILCS 520/5 (West 1998). A "[c]ommercial project" is definedas "any cultural facilities of a for-profit or not-for-profit typeincluding *** racetracks *** [and] parking facilities." 70 ILCS520/3(j) (West 1998).

To accomplish the purposes of the Act, the legislatureempowered SWIDA to issue bonds for the purpose of acquiring,improving or developing projects, including those established bybusiness entities attempting to locate or expand property withinMadison and St. Clair Counties. 70 ILCS 520/7 (West 1998).SWIDA also has the authority to acquire property bycondemnation. According to the Act, SWIDA's "acquisition byeminent domain of such real property or any interest therein by[SWIDA] shall be in the manner provided by the 'Code of CivilProcedure' [735 ILCS 5/1-101 et seq. (West 1998)], *** includingSection 7-103 thereof [735 ILCS 5/7-103 (West 1998)]." 70 ILCS520/8(b) (West 1998).

In June 1996, SWIDA issued $21.5 million in taxable sportsfacility revenue bonds. The proceeds of the bonds were lent toGateway to finance the development of a multipurpose automotivesports and training facility in the region (the racetrack). Gatewaysigned a loan agreement and a note to evince its obligation torepay the loan. Revenues received by SWIDA pursuant to the loanagreement are pledged to secure payment of the bonds. 70 ILCS520/7(d) (West 1998). If at any time SWIDA is unable to pay theprincipal and interest on the bonds, it shall so certify to theGovernor, who then submits the amounts so certified to theGeneral Assembly. As such, the bonds constitute a moralobligation of the state. 70 ILCS 520/7(f) (West 1998).

The racetrack was developed and has flourished. In 1997, theracetrack had a total attendance of 400,000 at various large andsmall events. Seating included 25,000 grandstand seats and 25,000portable seats. In 1998, Gateway increased its seating capacity anddesired to increase its parking capacity as well. It called uponSWIDA to use its quick-take eminent domain powers to acquireland to the west of the racetrack for the purposes of expandedparking facilities. The adjacent 148.5 acre tract of land sought wasowned by NCE.

NCE operates a metal recycling center in an area of St. ClairCounty that, until recently, was National City, Illinois. NCEemploys 80 to 100 persons full time and has been at its presentlocation since 1975. NCE shreds cars and appliances and separatesthe reusable metals. It disposes of nearly 100,000 cars per year.Nonrecyclable by-products of the process, referred to as "fluff,"are deposited in NCE's landfill, located to the east of its recyclingcenter. When this landfill site reaches capacity, NCE plans toexpand its landfill operations onto the 148.5 acre tract of land itowns to the east of the current landfill. NCE uses clay and dirtfrom the 148.5 acre tract to fill and cover fluff in the landfill areacurrently in use.

In early 1998, Gateway attempted to discuss the purchase ofNCE's land with NCE's owner. NCE would not discuss the matterand, initially, Gateway made no offer to purchase the land. Instead,Gateway asked SWIDA to exercise its quick-take eminent domainpowers to take the 148.5 acres of land and transfer it to Gateway.

Gateway completed a "Quick-Take Application Packet" andstated that it wanted to use the land as a parking lot for the purposeof increasing the value of Gateway's racetrack. Gateway paidSWIDA an application fee of $2,500, and the sum of $10,000 tobe applied toward SWIDA's sliding scale fee of 6% to 10% of theacquisition price of property being condemned. In addition,Gateway agreed to pay SWIDA's expenses, including theacquisition price of the property, and other costs associated withthe quick-take process.

Approval of the county board is required before SWIDA canuse its quick-take eminent domain powers within unincorporatedareas of a county. 70 ILCS 520/8(b) (West 1998). On February 23,1998, the St. Clair County board adopted a resolution authorizingSWIDA to exercise its quick-take eminent domain authority toacquire the NCE tract of land for Gateway parking. The boardnoted that dramatic attendance increases could be expected at theracetrack and that it was necessary to create additional parkingfacilities to adequately serve patrons. The board also found thatexpansion of the racetrack facilities would enhance the publichealth, safety, morals, happiness, and general welfare of thecitizens of southwestern Illinois by increasing the tax base in thearea and generating additional tax revenues.

On March 5, 1998, SWIDA held a public meeting to addressthe proposed taking. Notice was given to NCE and adjacentproperty owners. Over the objections of NCE's counsel, SWIDAadopted a resolution manifesting an intent to assist Gateway withracetrack expansion through the acquisition of NCE's property.Like the St. Clair County board resolution, SWIDA's resolutionrecounted the numerous benefits that could be created for theregion. SWIDA found that the acquisition of NCE's property wasessential to the success of the proposed expansion and furtherdevelopment of the racetrack, and authorized its executivedirector, Alan Ortbals, to acquire title to the property by allnecessary and appropriate means, including negotiations andquick-take eminent domain proceedings. SWIDA authorized theexecution of an agreement with Gateway for acquisition of theproperty through quick-take eminent domain proceedings andsubsequent conveyance of the property to Gateway.

In an effort to acquire the property through a negotiated sale,Ortbals attended a meeting on March 17, 1998, at which hedelivered to NCE a written offer to purchase the property for $1million. By letter dated March 19, 1998, NCE rejected the $1million offer but indicated its willingness to meet with SWIDA theweek of March 30, 1998, following an expected appraisal of theproperty. On March 20, 1998, SWIDA made another written offerto NCE to purchase the property for $1 million and advised NCEthat SWIDA would initiate proceedings to condemn the propertyif NCE did not accept the offer by 5 p.m. on March 30, 1998.

NCE did not respond to the second offer and ultimatum untilApril 20, 1998. By letter, NCE indicated that it felt it wasunnecessary to respond to the offer, as SWIDA was aware ofNCE's prior rejection of the earlier offer to purchase the propertyfor the identical sum of $1 million. However, to be clear on thematter, NCE indicated that it was again rejecting the offer of $1million for the sale of its property.

Meanwhile, on March 31, 1998, SWIDA filed a complaint inthe circuit court of St. Clair County seeking condemnation of, andacquisition of fee simple title to, the property. In addition, SWIDAfiled a motion for immediate vesting of title, and asked the circuitcourt to fix a date for quick-take proceedings pursuant to sections7-103 and 7-104 of the Code of Civil Procedure (735 ILCS5/7-103, 7-104 (West 1998)). On the same date, NCE filed amotion to dismiss the complaint and on April 2, 1998, filed atraverse and motion to dismiss. NCE argued that the proposedtaking was for an unconstitutional private use; the proposed takingwas excessive; additional parking at Gateway's racetrack was notneeded; and SWIDA had failed to make a good-faith effort tonegotiate an acceptable purchase price with NCE. In addition,NCE filed a motion to strike SWIDA's request for immediatevesting of title. The circuit court denied both the motion to dismissand the motion to strike the request for immediate vesting of title.

The circuit court held a quick-take hearing and on April 27,1998, ruled in SWIDA's favor. Relying on testimony from MikePritchett of the Illinois Department of Transportation (theDepartment), the circuit court found that the taking was for apublic purpose as there were serious public safety issues involved.Pritchett had testified that the Department was working withGateway to develop a traffic plan that would move traffic into andout of the racetrack facility, while minimizing impact on thesurrounding state and interstate highways. According to trafficpattern data studied by the Department, significant trafficcongestion occurred on Interstate 55-70 when major events wereheld at the racetrack. According to Pritchett, a safety hazard wascreated because drivers do not normally anticipate stopped trafficon the interstate. Pritchett further testified that pedestrians oftencrossed Illinois Route 203 from the parking areas east of thehighway to the racetrack. A traffic signal was in place to allowpatrons to cross Route 203. However, the signals created evenmore automobile traffic delays. There was additional testimonythat there was a risk pedestrians would be struck by automobiletraffic as they crossed Route 203 at improper locations away fromthe designated crossing area and signal. Pritchett testified thatconstruction of a parking lot on NCE's property, as suggested inthe Department's 1996 traffic impact study, would provide parkingto the west of the racetrack and alleviate traffic problems whenmajor events were taking place at the racetrack. Therefore,according to Pritchett, there was some urgency in acquiring theproperty and developing parking facilities to alleviate stress on thehighway system and improve safety.

The circuit court also relied on Ortbals' testimony regardingpublic safety, economic development, and elimination of blight.According to Ortbals, the county was experiencing serious trafficproblems on days the racetrack hosted events. Like Pritchett,Ortbals also referred to congestion on Interstate 55-70 and trafficand pedestrian concerns related to Illinois Route 203. In addition,Ortbals testified that development of a parking facility on theproperty was necessary to promote economic development, as thenumber of spectators, development and expansion of neighboringbusinesses, and other economic spin-off, all had exceeded initialexpectations. Ortbals testified that it was necessary to acquire theentire 148.5 acre tract owned by NCE because areas that hadpreviously been used for patron parking, such as areas nowoccupied by hotels and restaurants and the golf course, were nolonger available. In addition, Ortbals testified that the developmentof the racing facilities had indirectly helped to eliminate blight inthe area.

Rod Wolter, president and general manager of GatewayInternational Raceway, testified that by turning the 148.5 acresowned by NCE into parking for the racetrack, Gateway wouldgrow and profits would increase. Wolter acknowledged thatGateway had discussed developing a parking garage facility tomeet its needs but that it would be much less expensive to haveSWIDA take the property in question from NCE and give it toGateway for ground parking.

The circuit court also heard testimony from a number of othersources, including city officials from the region, area businessmenand other Gateway officials. Most, if not all, testified as to themany benefits that continued expansion of Gateway couldpotentially bring to the area. The court found that the taking wasnot excessive and that NCE had been unwilling to negotiate in ameaningful fashion for the sale of the property. The court foundthat SWIDA had bargained for the property in good faith andNCE's failure to timely reject SWIDA's final offer of sale or topresent a counteroffer was dispositive of this issue. Therefore, thecircuit court held that quick-take procedures were necessary toavoid any negative economic impact to the people of the region.

The circuit court denied NCE's oral motion for a stay ofproceedings (see 735 ILCS 5/7-104(b) (West 1998)) and heardevidence of just compensation for the property (see 735 ILCS5/7-104(c) (West 1998)). On April 28, 1998, the circuit courtmade a preliminary finding that $900,000 was just compensationfor the property. On April 30, 1998, the circuit court entered anorder of taking, vesting SWIDA with title to the property in feesimple and granting it the right to immediate possession of theproperty. See 735 ILCS 5/7-105(a) (West 1998)). On the sameday, SWIDA conveyed title to the property to Gateway by way ofa quit-claim deed. NCE filed an emergency motion in the circuitcourt seeking a stay of the transfer of title or, in the alternative, anorder requiring SWIDA to post a bond of $38 million pendingappeal. The motion was denied.

Pursuant to section 7-104(b) of the Code of Civil Procedure(735 ILCS 5/7-104(b) (West 1998)) and Supreme Court Rule307(a)(7) (188 Ill. 2d R. 307(a)(7)), NCE filed an interlocutoryappeal arguing in part that SWIDA lacked constitutional authorityto take the property and convey it to Gateway. NCE also filed anemergency motion for a stay of the condemnation, which wasgranted.

The appellate court determined that SWIDA had exceeded itsconstitutional authority in taking NCE's land by eminent domainand reversed the decision of the circuit court. 304 Ill. App. 3d 542.

SWIDA filed a petition for leave to appeal pursuant toSupreme Court Rule 317 (134 Ill. 2d R. 317). We granted thepetition and on April 19, 2001, reversed the judgment of theappellate court and remanded the cause. Subsequently, NCEpetitioned this court for rehearing, which we allowed on June 4,2001. 155 Ill. 2d R. 367. On rehearing, we now affirm the decisionof the appellate court.

ANALYSIS

The State of Illinois, as a sovereign, has the inherent right tocondemn property, subject to the state constitutional mandate thatprivate property shall not be taken or damaged for public usewithout just compensation to its owner. Ill. Const. 1970, art. I,