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Court denies Bloomington's challenge of 2019 annexation law

By Joe Hren

Posted June 19, 2024

Monroe County Justice Building (Joe Hren, WFIU/WTIU News)

This story has been updated to include reaction from both parties.

A Monroe Circuit Court has ruled against the City of Bloomington in the case challenging the state’s 2019 annexation law.

The law invalidates remonstrance waivers more than 15 years old. Landowners signed these waivers giving up their right to challenge annexation by the city in exchange for getting connected to Bloomington’s sewer system.

The city argued the law violates U.S. and Indiana constitutional provisions preventing the state from breaking existing contracts.

The state said the constitution is meant to protect contracts between private parties, not contracts with local governments and the city waited too long to act on the waivers.

Judge Nathan G. Nikirk agreed in a detailed order issued Tuesday evening. He said the Contract Clause is designed to protect private contracts from unwarranted state interference.

Court denies Bloomington's challenge of 2019 annexation law by Indiana Public Media News on Scribd

“Like the Indiana Supreme Court, the U.S. Supreme Court has held that a city cannot invoke the Contract Clause against the state, explaining that a city is merely a department of the state, and the state may withhold, grant or withdraw powers and privileges as it sees fit,” he wrote.

The court also denied the city’s claim that the new law violated “fundamental fairness” by delaying annexation. The court said it only has the authority to evaluate the boundaries of legislative power, not the wisdom of legislative policy.

Adopted Bloomington Annexation Areas — City council adopted annexation areas. (Courtesy City of Bloomington)

Initially, a hearing on the motions was scheduled for February, but was vacated following the recusal of Special Judge Kelsey B. Hanlon. Judge Nathan G. Nikirk was appointed to preside, and a new hearing was set for March.

The partial summary judgment only covers the constitutional claims, not the claims regarding defective remonstrance petitions for area 5.

In a statement, city communications director Desiree DeMolina said the city is disappointed with the result.

"We always understood that challenging the General Assembly would be difficult. Regardless, we respect Judge Nikirk's ruling and appreciate his thoughtful approach to this matter," she said.

DeMolina said the city is carefully weighing the costs and benefits of an appeal.

County Residents Against Annexation president Margaret Clements said residents who were being annexed into the city against their expressed will are very grateful for Judge Nikirk's decision.

"We are hopeful, also, that this aggressive, expensive, and unpopular overreach by the City of Bloomington could come to an end. The residents would like peace of place. They would like the city to 'Let us be,'” she said.

The ruling applies to areas 1C, 2, 3, 4, and 5. Areas 1A and 1B were dismissed by the city in this case, with a separate bench trial in May that is awaiting a decision.