HOUSING & REDEV. AUTH. OF CITY OF ST. PAUL v. Schapiro

210 N.W.2d 211, 297 Minn. 103, 1973 Minn. LEXIS 1066
CourtSupreme Court of Minnesota
DecidedAugust 3, 1973
Docket44104
StatusPublished
Cited by5 cases

This text of 210 N.W.2d 211 (HOUSING & REDEV. AUTH. OF CITY OF ST. PAUL v. Schapiro) 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 & REDEV. AUTH. OF CITY OF ST. PAUL v. Schapiro, 210 N.W.2d 211, 297 Minn. 103, 1973 Minn. LEXIS 1066 (Mich. 1973).

Opinion

*104 MacLaughlin, Justice.

An action was commenced in March 1972 by the Housing and Redevelopment Authority of the City of St. Paul to condemn certain property owned by respondents, Peter and Evelyn Nerenberg. Respondents asserted that the petition for condemnation should be denied because, among other things, the taking was not for a public purpose and the Authority acted in bad faith. The trial court found that the taking was for a public purpose and that the Authority had not acted in bad faith. Respondents appeal to this court from the denial of their alternative motion for amended findings of fact, conclusions of law, and order for judgment, or for a new trial. We affirm.

Respondents own land in downtown St. Paul which is improved with a building where they operate a retail furniture store known as the Northern Furniture Company. The property is located in an urban renewal development project designated by the city of St. Paul as Central Core, Minn. A-l-5 and adopted pursuant to the Municipal Housing and Redevelopment Act, Minn. St. 462.411 to 462.711. The project receives Federal financial assistance under Neighborhood Development Programs, 82 Stat. 518, 42 USCA, § 1469, et seq.

Respondents’ land is on the southeast corner of a downtown block known in these proceedings as Block 36. The block was designated by the Authority as a clearance area after a study disclosed that 9 of the 14 buildings in the block were substandard and that it contained the highest incidence of substandard structures in the Central Core Project. Respondents’ building, however, was not designated as substandard.

Other blocks in downtown St. Paul were also designated as clearance areas after studies by the Authority. The testimony revealed that the St. Paul City Council would not authorize the clearance of any of these areas until it was assured of a developer for the property. The Authority therefore sought out developers by conducting interviews with area businessmen.

*105 Norman B. Mears, who owned property near Block 36, expressed an interest in developing Block 36. Mears wrote a letter to the mayor and to the city council on June 4, 1971, expressing his intent to submit a proposal for the development of the south half of Block 36, including respondents’ property, if it was made available by the Authority.

The Authority then submitted to the city council its proposal to clear the south half of Block 36. Developer Mears indicated to the council that respondents could relocate their furniture business in the Harris Building, which Mears owned, located across Sibley Street from respondents’ property. 1 On June 17, 1971, in spite of respondents’ objections, the city council approved the taking, including respondents’ property.

Subsequently, because of continuing objections by respondents, the Authority made studies to consider the possibility of developing Block 36 without taking respondents’ property. Respondents expressed a willingness to rehabilitate their building consistent with any plans adopted by the Authority. Authority officials made a trip to Florida to, among other things, suggest to developer Mears a plan which excluded taking respondents’ property. However, Mears took the position, based partly on the strategic corner location of respondents’ property, that he would not be willing to redevelop Block 36 if respondents’ property was not taken.

The Authority then commenced the present action to condemn respondents’ property. Respondents objected to the taking, and the trial court found that the taking was for a valid public purpose and was done in good faith.

The principal issue is whether the taking of respondents’ *106 property by the Authority is for a public purpose or whether, as respondents contend, it is an unconstitutional taking of t>rivate property for a private purpose.

It is elementary that the power of condemnation may be exercised only for a public use or purpose. E.g., Visina v. Freeman, 252 Minn. 177, 89 N. W. 2d 635 (1958); Asch v. Housing & Redevelopment Authority, 256 Minn. 146, 97 N. W. 2d 656 (1959); Housing & Redevelopment Authority v. Greenman, 255 Minn. 396, 96 N. W. 2d 673 (1959); Housing & Redevelopment Authority v. Minneapolis Metropolitan Co. 259 Minn. 1, 104 N. W. 2d 864 (1960); Port Authority of City of St. Paul v. Fisher, 269 Minn. 276, 132 N. W. 2d 183 (1964); Housing & Redevelopment Authority v. Coleman’s Service, Inc. 281 Minn. 63, 160 N. W. 2d 266 (1968); Port Authority of City of St. Paul v. Groppoli, 295 Minn. 1, 202 N. W. 2d 371 (1972). If private property is taken for a use that is not public, the owner’s constitutional rights are infringed. Port Authority of City of St. Paul v. Groppoli, supra.

Respondents contend that, because developer Mears would not redevelop Block 36 unless respondents’ property was included, the taking is for Mears’ private use and is therefore unconstitutional. Respondents rely on Port Authority of City of St. Paul v. Groppoli, supra, in which we held improper the taking of a beer warehouse because the condemning authority was committed to lease the building “as is” to a third-party private concern for 30 years. We held that the property was not being acquired for the purpose of development or redevelopment and that it was an unconstitutional taking of private property for a private use.

This case is clearly distinguishable from Groppoli. Here, respondents’ property is being acquired for redevelopment. The Authority and Mears have entered a contract, which is in evidence, requiring the Authority to demolish and remove from respondents’ land all existing buildings, structures, and improvements. The trial court states in its memorandum that it is intended that respondents’ land be cleared so that it can be used in keeping with the overall plan of development. Respondents have *107 pointed to no evidence to contest the fact that the land is to be cleared for redevelopment purposes.

That the Authority intends to transfer the condemned property to a private developer does not alone make this an improper taking. The acquisition and clearing of blighted areas itself serves a public purpose, and subsequent transfer of such lands to private parties is incidental to the main public purpose. Housing & Redevelopment Authority v. Greenman, supra; Asch v. Housing & Redevelopment Authority, supra; Housing & Redevelopment Authority v. Coleman’s Service, Inc. supra. Nor does the fact that respondents’ building is not substandard invalidate the taking. The problem of eliminating blighted parts of a community may be attacked on an area basis rather than a structure-by-structure basis. This very issue was discussed and decided in the Minneapolis Metropolitan Co. case:

“As to the contention of the company that the building should not be taken because it is a sound building, we can only refer to Berman v. Parker, 348 U. S. 26, 75 S. Ct. 98, 99 L. ed.

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Bluebook (online)
210 N.W.2d 211, 297 Minn. 103, 1973 Minn. LEXIS 1066, Counsel Stack Legal Research, https://law.counselstack.com/opinion/housing-redev-auth-of-city-of-st-paul-v-schapiro-minn-1973.