Can a Mississippi economic development district transfer legislatively-conveyed industrial park land to a city for a recreational sports complex?
Plain-English summary
Marion County wanted to develop a recreational sports complex on land formerly part of the Columbia Training School. The land had been transferred over a decade in multiple Legislative actions. Each parcel came with different restrictions:
- MCEDD Parcel 1 (370 acres): Conveyed to Marion County Economic Development District (MCEDD) under Section 43-27-39(4), ratified by HB 132 (2013). Subject to Section 19-5-99 industrial-park use restrictions but no separate Legislative restriction.
- Marion County Parcel 2 (160 acres): Conveyed to Marion County by quitclaim deed. No separate use restriction. Available for the sports complex.
- Airport Authority Parcel 3 (204 acres): Restricted by HB 6 (2017) to airport improvements, adjacent industrial park, or aviation-related facility.
- MCEDD Parcel 4 (406 acres): Same HB 6 (2017) restriction.
- Marion County Parcel 5 (18 acres): Restricted by HB 1533 (2019) to law enforcement training.
- MCEDD Parcel 6 (40 acres): Restricted by HB 1533 (2019) to providing access to the Marion County AirPlex.
The AG concluded:
- Whether a sports complex is an "industrial development" or part of "constructing an adjacent industrial park" is a fact question the AG cannot answer. But on the law: using property restricted by Section 19-5-99 for non-industrial purposes violates that statute, and using property restricted by HB 6 or HB 1533 for non-listed purposes violates those acts.
- Yes, MCEDD can transfer industrial sites under Section 19-5-99 for industrial and warehouse use to public or private entities. The legal authority is there, but the use must remain industrial.
- Yes, new legislation would be required to allow MCEDD to convey property for purposes outside Section 19-5-99 or outside the act-specific restrictions.
The AG also noted that for surplus property, MCEDD may sell it under Section 19-7-3 (per a 2008 Smith opinion), but Legislative use restrictions on specific conveyances would still apply.
What this means for you
For the Marion County Board, MCEDD, or the City of Columbia
The 160-acre Parcel 2 is the only piece of the former Columbia Training School property available for the sports complex without new legislation. If the desired location is anywhere else, you need to ask the Legislature for an act amending the relevant chapter (Chapter 386, Laws of 2017 or its successor) to either lift the use restriction or specifically authorize the recreational use.
A factual finding about whether the sports complex qualifies as an "industrial development" or "adjacent industrial park" rests with the Board, but a sports complex on its face is an unusual fit for those phrases. Don't try to shoehorn it. Get the legislation.
For county attorneys advising similar situations
This is a structural rule: when the Legislature conveys property with use restrictions, the restrictions ride with the title. MCEDD's general authority to transfer industrial sites under Section 19-5-99 doesn't override conveyance-specific Legislative restrictions on a particular parcel.
When evaluating a property's available uses, walk through the chain:
1. What legislative act conveyed this property?
2. What use restriction did that act impose?
3. What is the current Section 19-5-99 framework (industrial and warehouse use)?
4. If the proposed use doesn't fit, can it be analyzed as surplus under Section 19-7-3? (Caveat: Legislative restrictions still apply.)
For state legislators considering economic development conveyances
When drafting an act to transfer state property to a county or local economic development district, think hard about the use restrictions. They lock the property to specific purposes for years (or longer) absent further legislation. Communities outgrow their economic plans. The 2017 Chapter 386 was about an airport-AirPlex use, but five years later Marion County wanted recreation. Your restriction language is going to outlive your political window.
For economic development districts statewide
You can transfer industrial sites to public or private entities under Section 19-5-99 for industrial and warehouse use. Public-private transfers fit. Recreational, residential, or commercial uses do not, unless you have specific Legislative authority overriding Section 19-5-99 for that property.
Common questions
Q: What's the difference between Section 19-5-99 use restrictions and conveyance-act use restrictions?
A: Section 19-5-99 limits all economic development district industrial-park transfers to industrial and warehouse use. The conveyance act (HB 6, HB 1533, etc.) may impose additional restrictions specific to that property: airport, AirPlex access, law enforcement training. Both apply concurrently.
Q: Can a sports complex ever count as industrial?
A: A factual determination, but the AG implicitly suggests no in this case. Industrial typically means manufacturing, warehousing, processing. A recreational facility doesn't fit the standard meaning.
Q: What if MCEDD declares the property "surplus"?
A: Under MS AG Op., Smith (Sept. 26, 2008), economic development districts can sell surplus property under Section 19-7-3. But Legislative conveyance restrictions still apply: declaring something "surplus" doesn't lift the act-specific restriction.
Q: Can Marion County itself transfer Parcel 2 (the 160 acres) to the City of Columbia?
A: The opinion didn't directly answer this, but Parcel 2 isn't subject to act-specific restrictions. Transfer authority for general county property to a municipality runs through other statutes (Section 19-7-3 for surplus, or specific authorizations).
Q: Does the recreational sports complex have to be on county-owned land at all?
A: The opinion analyzes the available state-conveyed properties. If the city or county wants to acquire other land (privately owned, leased, etc.), different legal frameworks apply.
Q: What if the Legislature has since amended Chapter 386, Laws of 2017?
A: Possible. Check the current Mississippi Code and recent session laws. The 2022 opinion reflects the law as of that date.
Q: What's the AirPlex referenced in the conveyance acts?
A: An industrial development centered on the Marion County Airport, established by Legislative act. The 40-acre Parcel 6 was conveyed specifically to provide unobstructed access for AirPlex industrial development.
Background and statutory framework
Mississippi's economic development districts are creatures of statute (Section 19-5-99 and surrounding sections). They have specific powers and limits:
- Authority to acquire industrial sites
- Authority to sell, lease, or trade industrial sites for industrial and warehouse use
- Subject to public-interest standards and minutes-recording requirements
- Subject to specific Legislative restrictions on individual conveyances
When the State conveys property to a district through Legislative act, the act may add use restrictions on top of Section 19-5-99's general framework. Each layer must be respected.
Section 19-7-3 governs sale of surplus public property generally. It does not override act-specific Legislative restrictions.
The AG limits its own authority under Section 7-5-25: it cannot decide fact questions like whether a particular use qualifies as "industrial development." That kind of determination rests with the local body, subject to potential judicial review.
Citations and references
Statutes:
- Miss. Code Ann. § 19-5-99, economic development district powers; industrial-park use restrictions
- Miss. Code Ann. § 19-7-3, sale of surplus public property
- Miss. Code Ann. § 43-27-39, MDHS property transfer authority
Mississippi session laws:
- Chapter 553, Laws of 2012 (HB 621), original conveyance authority for 214 acres
- HB 132 (Regular Session 2013), amendment ratifying conveyances and reducing 214 to 160 acres
- Chapter 386, Laws of 2017 (HB 6), Airport Authority and MCEDD parcels with use restrictions
- HB 1533 (Regular Session 2019), amendments adding 18-acre and 40-acre parcels with new use restrictions
Prior AG opinions cited:
- MS AG Op., Smith (Sept. 26, 2008), economic development districts may sell surplus property under Section 19-7-3
Source
- Landing page: https://attorneygenerallynnfitch.com/divisions/opinions-and-policy/recent-opinions/
- Original PDF: https://attorneygenerallynnfitch.com/wp-content/uploads/2022/03/K.Morgan-February-15-2022-Development-and-Construction-of-Recreational-Sports-Complex-on-Certain-Property-as-Described-in-Chapter-386-Laws-of-2017-as-Amended.pdf
Original opinion text
February 15, 2022
The Honorable Ken Morgan
Mississippi House of Representatives
District 100, Lamar and Marion Counties
1640 Highway 587
Morgantown, Mississippi 39483
Re: Development and Construction of Recreational Sports Complex on Certain Property as Described in Chapter 386, Laws of 2017 as Amended
Dear Representative Morgan:
The Office of the Attorney General has received your request for an official opinion.
Background
According to your request, Marion County and the Marion County Economic Development District (MCEDD) are contemplating transferring property to the City of Columbia for the development of a recreational sports complex. Based on subsequent conversations, we understand that several properties are being considered but some may be subject to use restrictions which would prohibit the development of the recreational sports complex. The properties in consideration, all of which were part of the Columbia Training School, have already been transferred and conveyed to various entities by Legislative action.
A brief history of the property at issue is necessary to fully understand the questions at issue:
MCEDD Parcel 1 (370 acres):
The earliest transfer related to the underlying property in your request is a three hundred seventy (370) acre tract, with improvements located thereof, transferred and conveyed by the Mississippi Department of Human Services (MSDH) to the Marion County Economic Development District (MCEDD) initially by a Special Warranty Deed dated May 3, 2011 and filed in the land records of the Marion County Chancery Clerk on May 5, 2011 in Book 1663 at Page 99, executed pursuant to the authority of Executive Order No. 2011-001 executed by the Executive Director of MDHS on or about April 13, 2011 and Miss. Code Ann. § 43-27-39(4). Neither the Deed nor the Executive Order contained a restriction upon the use of the property by the MCEDD.
This conveyance by Special Warranty Deed was "ratified, approved, confirmed and validated" by House Bill 132 (Regular Session 2013).
Marion County Parcel 2 (160 acres):
Between the conveyance by Special Warranty Deed of MCEDD Parcel 1 and the ratification of the same by House Bill 132 (Regular Session 2013), House Bill 621 (2012 Regular Session) (Section 1, Chapter 553, Laws of 2012) authorized the Department of Finance and Administration (DFA), acting on behalf of the Mississippi Department of Human Services (MDHS), to transfer and convey approximately two hundred fourteen (214) acres, together with improvements thereon, to the Marion County Board of Supervisors. See also, Miss. Code Ann. § 43-27-39.
Section 1, Chapter 553, Laws of 2012 was amended by House Bill 132 (Regular Session 2013). Though not indicated as a part of the amendment, House Bill 132 changed the total acreage from the original two hundred fourteen (214) acres authorized in House Bill 621 to one hundred sixty (160) acres, and likewise set forth a different legal description than that set forth by House Bill 621. The one hundred sixty (160) acres as described by House Bill 132, as opposed to the original two hundred fourteen (214) acres as described by House Bill 621, was transferred and conveyed by DFA to the Marion County Board of Supervisors by Quitclaim Deed dated May 9, 2013 and filed in the land records of the Marion County Chancery Clerk on May 16, 2013 in Book 1719 at Page 428.
Airport Authority Parcel 3 (204 acres) and MCEDD Parcel 4 (406 acres):
Section 1, Chapter 386, Laws of 2017 (House Bill 6 (2017 Regular Session)) authorized DFA to transfer and convey two hundred four (204) acres to the Columbia-Marion County Airport Authority (Airport Authority) and four hundred six (406) acres to the MCEDD only to be "used to make improvements to the Marion County Airport and to construct an adjacent industrial park or other aviation-related facility."
Marion County Parcel 5 (18 acres):
House Bill 1533 (2019 Regular Session) amended Section 1, Chapter 386, Laws of 2017 to authorize the MCEDD to transfer and convey, without cost and without the restrictions imposed by Miss. Code Ann. § 19-5-99(5)(a), approximately eighteen (18) acres of the four hundred six (406) acres previously conveyed to MCEDD by DFA to the Marion County Board of Supervisors "for the purpose of law enforcement training."
MCEDD Parcel 6 (40 acres):
House Bill 1533 further amended Section 1, Chapter 386, Laws of 2017 to authorize DFA to transfer and convey approximately forty (40) acres to the MCEDD "for the purpose of providing unobstructed access for the industrial development of the Marion County AirPlex" on the four hundred six (406) acres previously conveyed to MCEDD,
Questions Presented
- Does the development and construction of a recreational sports complex, on any portion of property conveyed to Marion County or MCEDD, meet the criteria of being defined as an "industrial development" for purposes to satisfy its inclusion in "constructing an adjacent industrial park" as intended by Section 1, Chapter 386, Laws of 2017?
- Does the MCEDD have the authority to transfer any portion under its control to the Marion County Board of Supervisors, the City of Columbia, or any other public or private entity, for purposes specified in Section 1, Chapter 386, Laws of 2017?
- If the answers to inquiries 1 and 2 above are "No," is it true that legislation would be necessary to provide the MCEDD with the authority to transfer and convey property previously conveyed to MCEDD by the State to any governmental, public or private entity for purposes contrary to those specified in Section 1, Chapter 386, Laws of 2017?
Brief Response
- Whether a particular use constitutes an industrial purpose requires a factual determination that this office is unable to make by official opinion. To use the property for something other than an industrial purpose would violate the use restriction imposed by Section 1, Chapter 386, Laws of 2017 as well as Miss. Code Ann. § 19-5-99.
- In response to your second question, yes. Pursuant to Miss. Code Ann. § 19-5-99, the MCEDD may "sell, lease, trade, exchange or otherwise dispose of industrial sites . . . situated within industrial parks to individuals, firms or corporations, public or private, for industrial and warehouse use . . ." (Emphasis added).
- In response to your third question, legislation would be required for the MCEDD to convey property for purposes other than those specified in Section 1, Chapter 386, Laws of 2017 and to exempt any conveyance made by the MCEDD from the use restrictions of Miss. Code Ann. § 19-5-99.
Applicable Law and Discussion
Miss. Code Ann. § 19-5-99 provides, in relevant part, as follows:
(5) Economic development districts established under this section are authorized and empowered:
(a) To sell, lease, trade, exchange or otherwise dispose of industrial sites or rail lines situated within industrial parks to individuals, firms or corporations, public or private, for industrial and warehouse use, as well as the Mississippi Military Department or Mississippi National Guard for military use, upon such terms and conditions, and for such considerations, with such safeguards as will best promote and protect the public interest, convenience and necessity, and to execute deeds, leases, contracts, easements and other legal instruments necessary or convenient therefor. Any industrial lease may be executed by the district upon such terms and conditions and for such monetary rental or other considerations as may be found to be in the best interest of the public, upon an order or resolution being spread upon the minutes of the district authorizing same.
Miss Code Ann. § 19-5-99 (emphasis added).
Section 19-5-99 specifically authorizes economic development districts to transfer industrial sites and rail lines under its control for industrial and warehouse use, upon such terms and conditions, as will best promote and protect the public interest, convenience and necessity. No legislation is necessary for the MCEDD to make conveyances for those specific purposes. For other purposes on land owned by the MCEDD that are outside the scope of industrial and warehouse use, legislation would be required.
In addition to the restriction(s) imposed by Miss. Code Ann. § 19-5-99, previous Columbia Training School property to which MCEDD now holds title is subject to further use restrictions imposed by the Legislature.
Referring to the properties as defined above, MCEDD acquired Parcel 1, Parcel 4, and Parcel 6 through Legislative action. While the use and transfer of Parcel 1 is restricted by Miss. Code Ann. § 19-5-99, House Bill 132 (Regular Session 2013) imposed no further restriction upon the use of these three hundred seventy (370 acres). However, the use of Parcel 4 is further restricted to the making of improvements to the Marion County Airport and to the construction of an adjacent industrial park or other aviation-related facility by House Bill 6 (2017 Regular Session); and the use of Parcel 6 is further restricted to providing unobstructed access for the development of the Marion County AirPlex by House Bill 1533 (2019 Regular Session). Thus, to utilize one of these MCEDD parcels, legislative action would be necessary for any to be used for purposes(s) contrary to Miss. Code Ann. § 19-5-99, or those specified by House Bill 6 (2017 Regular Session) and/or House Bill 1533 (2019 Regular Session). However, the use of Parcel 2, acquired by Marion County by virtue of House Bill 132 and Quitclaim Deed dated May 9, 2013 and recorded in Book 1719 at Page 428 in the office of the Marion County Chancery Clerk, is subject to no use restriction. These one hundred sixty (160) acres, therefore, may be used for the development of the contemplated recreational sports complex.
You do not indicate that any of the property referenced in your request is surplus property. Notably, this office has previously opined that economic development districts may sell surplus property in accordance with Section 19-7-3. MS AG Op., Smith at *1 (Sept., 26, 2008). However, this would be subject to use restrictions imposed by the Legislature in the specific conveyances referenced in your request.
If this office may be of any further assistance to you, please do not hesitate to contact us.
Sincerely,
LYNN FITCH, ATTORNEY GENERAL
By: /s/ Phil Carter
Phil Carter
Special Assistant Attorney General