Amcon Corp. v. City of Eagan

348 N.W.2d 66, 1984 Minn. LEXIS 1315
CourtSupreme Court of Minnesota
DecidedApril 20, 1984
DocketCO-83-935
StatusPublished
Cited by24 cases

This text of 348 N.W.2d 66 (Amcon Corp. v. City of Eagan) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amcon Corp. v. City of Eagan, 348 N.W.2d 66, 1984 Minn. LEXIS 1315 (Mich. 1984).

Opinion

AMDAHL, Chief Justice.

Plaintiffs appeal from an order and a judgment of dismissal entered on May 17, 1983, by the Dakota County District Court after having heard arguments of counsel and reviewed affidavits, files, records, and proceedings generated by plaintiffs’ efforts to obtain rezoning of their property by defendant, City of Eagan (city).

The procedural development of this case has been exceedingly protracted and complex, but a recital of its history is essential to understanding the current postures of the parties. The original application for rezoning filed by Amcon Corporation and O-J Sporting Goods Company on September 23, 1981, was denied by the city on August 3, 1982. Plaintiffs then commenced an action in Dakota County District Court for declaratory relief or, in the alternative, damages in the amount of $5,000,-000 for an unconstitutional taking.

The city commenced third-party proceedings against the State of Minnesota, Department of Transportation, Commissioner of Transportation (hereafter MnDOT), and the Metropolitan Airports Commission (hereafter MAC), alleging that various omissions by these agencies had placed the city in a position of potential liability and that these agencies were therefore required to indemnify the city for any damages assessed against it.

By order of February 11, 1983, the trial court granted the motions of third-party defendants to dismiss the third-party complaints for failure to state a claim upon which relief could be granted. 1 The motion *69 for summary judgment on behalf of the city was denied in the same order.

The Eagan City Council subsequently agreed on March 1, 1983, to grant a planned development (PD) zoning classification to plaintiffs, but plaintiffs contended that an underlying roadside business (RB) classification was a necessary concomitant to the supplementary PD zoning. After a hearing held on March 3, 1983, the trial court concluded that RB zoning is not necessary to effectuate PD zoning and that, because plaintiffs had not requested RB zoning prior to the declaratory judgment action, the issue was not properly before the court. The action was dismissed. Plaintiffs appeal from the lower court’s denial of their request for a court order requiring the initiation of RB zoning for plaintiffs’ land.

We conclude that the question as to whether planned development zoning requires a concomitant underlying rezoning is properly before this court on appeal. EAGAN, MINN. Code § 11.20, subd. 8 (1983) (hereinafter cited as Code) is ambiguous as to whether planned development zoning should be granted only when supplementary to an underlying classification. Because we conclude that on both policy and factual grounds this is the better rule, we reverse and remand to the district court to direct the city council to accomplish an underlying reclassification.

Plaintiff O-J Sporting Goods is an Illinois corporation qualified to do business in Minnesota and is the owner of 20 acres in the city of Eagan. Plaintiff Amcon Corporation is a Wisconsin corporation also qualified as a foreign corporation to do business in Minnesota. Plaintiffs plan a joint venture to develop the property, originally zoned as agricultural (A), into a high-rise hotel-office building complex. Their application for rezoning provided for two multistory office buildings and a 225-room hotel at a projected cost of between $30 and $40 million dollars.

Plaintiffs claim their rezoning application was a request for a change from agricultural to planned development with an underlying roadside business classification in case the planned development was not granted. The city claims that no application for roadside business was ever received and that the initial request was only for a PD designation. The applications themselves, both the original and the reapplication of May 7, 1982, are silent as to which classification was requested. Plaintiffs contend that the zoning ordinance requires an underlying commercial zoning of RB with an overlaying PD zoning but that the staff personnel of the city incorrectly advised plaintiffs not to pursue a roadside business designation.

The city declares that the issue of roadside business zoning did not arise until a week before the hearing on the declaratory judgment action and that all the proceedings to date have dealt solely with planned development.

Code § 11.20, subd. 8 (1983), describes the purpose and intent of the planned development district as being—

[Supplementary to all other zoning districts contained in this ordinance, the purpose of which is to encourage, under appropriate circumstances, a more creative, varied and efficient use of residential land in Eagan township. Where such supplementary zoning is approved it shall be deemed supplementary and superimposed over the basic zoning of the property under consideration * * *.

(Emphasis added). Applicants for PD zoning must submit a detailed “preliminary plan with data, drawings, exhibits, plans, specifications, time projections * * * finan *70 cial information and any other materials that the Advisory Planning Committee and/or the Board of Supervisors shall deem necessary and appropriate * * The Advisory Planning Committee then reviews the applications to determine if the PD will

(a) better adapt itself to its physical and esthetic [sic] setting and that of surrounding lands than does development of the underlying zoning district; (b) be feasible for the owner and developer economically to complete according to proposed plans; and (e) benefit the community at large to a greater degree than would development of the underlying zoning district.

(Emphasis added). No building permit will be issued without approval of the PD application. Upon approval and prior to construction the applicant must submit detailed final plans. If the PD zoning is approved but the application fails to comply with the approved plans, as determined upon an annual review, the superimposed planned development zoning will be revoked and “the land area within the planned development shall automatically revert to its prior basic zoning classification.” Eagan City Code § 11.20, subd. 8. (Emphasis added).

Code § 11.20, subd. 3(a)(b) (1975), describes the permitted, conditional, and accessory uses of a parcel that is zoned agricultural. These basically include only agricultural pursuits and residential dwellings with no provision for any commercial activity that is not agriculturally related.

The permitted conditional and accessory uses within a roadside business district include a motel or hotel but apparently do not allow the construction of a multistory office complex. 2

A comprehensive guide plan has been adopted by the city. The accompanying maps-approved by the city council on January 22, 1974, and in February 1980 designate plaintiffs’ property as roadside business.

The comprehensive guide plan states that it is—

[M]eant to serve as a guide and as such, should possess a degree of flexibility * *.

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Bluebook (online)
348 N.W.2d 66, 1984 Minn. LEXIS 1315, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amcon-corp-v-city-of-eagan-minn-1984.