Annexation that Shuts Down Fireworks Business Is Not a Regulatory Taking

Tuesday, November 13, 2018 2:21 am
November 2018 - Volume 46 Number 11

Lessee is not entitled to actual notice that leased land will be annexed to neighboring city, even though the annexation will effectively terminate the lessee’s business.

Facts: In 2003, Pearson’s Fireworks (Pearson’s) leased land outside the city limits of the City of Hattiesburg, Mississippi. Pearson’s sold fireworks on the land during the month before the Fourth of July and during the weeks before New Year’s Eve. In 2006, the property’s owner, who had leased the land to Pearson’s, asked the City to annex the property. The City followed Mississippi’s annexation procedures and, in 2007, annexed the property.

The City banned the sale of fireworks within its borders in 1950, and after the annexation, the City notified Pearson’s that it could no longer sell fireworks on its leased property. Pearson still had [..]