HOUSING AND REDEVELOPMENT AUTHORITY OF ST. PAUL v. Greenman

96 N.W.2d 673, 255 Minn. 396, 1959 Minn. LEXIS 611
CourtSupreme Court of Minnesota
DecidedMay 29, 1959
Docket37,620
StatusPublished
Cited by39 cases

This text of 96 N.W.2d 673 (HOUSING AND REDEVELOPMENT AUTHORITY OF ST. PAUL v. Greenman) 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
HOUSING AND REDEVELOPMENT AUTHORITY OF ST. PAUL v. Greenman, 96 N.W.2d 673, 255 Minn. 396, 1959 Minn. LEXIS 611 (Mich. 1959).

Opinion

Murphy, Justice.

The principal question presented is whether the respondent, Housing and Redevelopment Authority of the City of St. Paul, a public body corporate and politic created by L. 1947, c. 487, may take property declared to be in a slum or blighted area under the power of eminent domain and later sell such property to private persons pursuant to an area redevelopment plan. The appellant contends that such taking is not *398 for a public use and is in violation of the prohibition of Minn. Const, art. 1, § 13.

In discussing this issue a brief examination of state and Federal statutes relating to housing, redevelopment, and urban renewal projects will be helpful. Since 1932 the Congress of the United States has passed various forms of legislation designed to assist states and cities in removing the blight of unsafe and unsanitary dwellings. These programs had to do primarily with the establishment of low-cost housing projects in slum areas and were administered through various Federal agencies. 1 From the experience gained in these earlier programs it was found that urban public housing projects are best administered through the instrumentality of a local legally constituted housing authority on a loan and grant basis. The low-rent housing projects created by the United States Housing Act of 1937 (50 Stat. 888, 42 USCA, § 1401, et seq.) provided financial assistance to public housing agencies engaged in the development and administration of low-rent housing and slum clearance (42 USCA, §§ 1402[11], 1409, 1410) by (a) loans up to 90 percent of the development or land acquisition cost of a project or (b) by a system of annual contributions to assist in maintaining the low-rent character of the project.

The Housing Act of 1949 (63 Stat. 413, 42 USCA, §§ 1441 to 1460) extended the scope of previous acts so as to permit a state unit with Federal assistance to go beyond the establishment of low-rent projects and engage in broader urban redevelopment purposes. 2 By this act it appears that Congress abandoned the policy of attempting to solve the slum-clearance problem through a piecemeal approach by condemning limited areas for low-cost housing construction. As the United States Supreme Court said in Berman v. Parker, 348 U. S. 26, 34, 75 S. Ct. 98, 103, 99 L. ed. 27, 38, the legislation was intended:

“* * * to redesign the whole area so as to eliminate the conditions that cause slums — the overcrowding of dwellings, the lack of parks, the lack of adequate streets and alleys, the absence of recreational areas, *399 the lack of light and air, the presence of outmoded street patterns. It was believed that the piecemeal approach, the removal of individual structures that were offensive, would be only a palliative. The entire area needed redesigning so that a balanced, integrated plan could be developed for the region, including not only new homes but also schools, churches, parks, streets, and shopping centers. In this way it was hoped that the cycle of decay of the area could be controlled and the birth of future slums prevented.”

In its declaration of policy Congress clearly pointed out 3 that in addition to the elimination of substandard and inadequate housing and the clearance of slum and blighted areas the legislation comprehended the “development and redevelopment of communities and * * * the advancement of the growth, wealth, and security of the Nation.” (Italics supplied.) Congress further declared that a purpose of the act was to enable “the housing industry to make its full contribution toward an economy of maximum employment, production, and purchasing power.” In attaining the objects of the legislation, private enterprise is to be encouraged to serve in its accomplishment, governmental assistance is to be utilized, and appropriate local bodies are encouraged to undertake positive programs to develop “well-planned, integrated residential neighborhoods, the development and redevelopment of communities, * * (Italics supplied.) Local communities are to have governmental assistance in eliminating substandard housing through the clearance of slums and blighted areas. In qualifying for Federal aid in carrying out these projects, the local authority is required under 68 Stat. 623, 42 USCA, § 1451(c), to furnish a “workable program” to include an official plan dealing with urban slums and blight within the community and for the establishment and preservation of “a well-planned community with well-organized residential neighborhoods * * * and prevent the development or spread of, slums and urban blight, to encourage needed urban rehabilitation, to provide for the redevelopment of blighted, deteriorated, or slum areas, * * *.” This legislation comprehends the assembly of a large area of land under the power of eminent domain with power to regulate its future use by providing for it a balanced *400 character having within its area homes, apartments, schools, commercial structures, parks, and playgrounds.

The state legislature by M. S. A. 462.415 (L. 1947, c. 487, § 2; L. 1955, c. 565, § 1; L. 1957, c. 810, § 1) has made it possible for municipalities in Minnesota to take advantage of grants in aid of urban redevelopment provided by Federal law. By this law the legislature has permitted local units of government to acquire blighted areas by eminent domain for the purpose of slum clearance. In its statement of considerations for the enactment of these laws, our legislature has expressed the policy to be consonant with that stated by Congress in passing the Housing Act of 1949. By § 462.415, subds. 2 and 3, specific authority is given to the municipality for the sale and redevelopment of such land by private parties for commercial purposes. The Minnesota legislature has recognized by that statute:

“Subd. 2. * * * that provision must be made to encourage private enterprise to engage in redevelopment or to provide housing facilities ill substandard areas, to be constructed in accordance with such comprehensive plan; that provision must also be made to encourage investment of funds in, and for the acquisition by private enterprise at fair prices of, real property required for such purposes * * * and for public assistance thereto, * * *.
“Subd. 3. It is hereby declared to be the policy to protect and promote the welfare of the citizens of this state by employing all means necessary and appropriate to satisfy the foregoing needs; that * * * the participation in such redevelopment projects * * * properly planned and related to public facilities in such substandard areas, according to a redevelopment plan * * *, by private enterprise, with or without partial tax exemptions, are public uses and purposes for which private property may be acquired and public money may be spent; * * *.”

Section 462:445, subd. 4(13), confers the power:

“To own, hold, and improve real * * * property and to sell, lease, exchange, transfer, * * * or dispose of * * * any interest therein.”

Section 462.525, subd. 1, provides that:

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Bluebook (online)
96 N.W.2d 673, 255 Minn. 396, 1959 Minn. LEXIS 611, Counsel Stack Legal Research, https://law.counselstack.com/opinion/housing-and-redevelopment-authority-of-st-paul-v-greenman-minn-1959.