In re Resolution Reversing the Planning Commission's Decision to Grant the Petition for an Environmental Assessment ...

Court of Appeals of Minnesota·Decided January 29, 2024·No. a230792·Unpublished

Opinion

This opinion is nonprecedential except as provided by Minn. R. Civ. App. P. 136.01, subd. 1(c).

STATE OF MINNESOTA

IN COURT OF APPEALS

A23-0792

In re Resolution Reversing the Planning Commission’s Decision to Grant the Petition for an Environmental Assessment Worksheet (EAW)

for a Hotel at Sundby Road and West Page Street.

Filed January 29, 2024

Affirmed

Reyes, Judge

City of Duluth

File No. 23-0367R

Rebecca Mulenburg, Duluth, Minnesota (self-represented appellant)

Rebecca St. George, Duluth City Attorney, Paige V. Orcutt, Elizabeth Sellers Tabor, Assistant City Attorneys, Duluth, Minnesota (for respondent City of Duluth)

R. Thomas Torgerson, Jesse W. Smith, Hanft Fride, Duluth, Minnesota (for intervenorrespondent Kinseth Hospitality Companies)

Considered and decided by Reyes, Presiding Judge; Segal, Chief Judge; and Connolly, Judge.

NONPRECEDENTIAL OPINION

REYES, Judge In this certiorari appeal, relator challenges respondent-city’s denial of a petition for an environmental-assessment worksheet (EAW) concerning a hotel-construction project proposed by respondent-developer. Relator argues that (1) the city council lacked authority to substitute itself as the responsible governmental unit (RGU) because the city’s planning commission was designated as the RGU by city ordinance; (2) respondent-city erred by

applying its ordinance provisions to allow an appeal of the city planning commission’s decision to the city council; and (3) the city council erred by reversing the city planning commission’s decision that granted relator’s EAW petition. We affirm.

FACTS

To give context to the facts in this case, we begin by providing background on the Minnesota Environmental Policy Act, Minn. Stat. §§ 116D.01-.11 (2022) (MEPA). 1 The legislature enacted MEPA in 1973 to encourage harmony between humans and the environment, promote efforts to prevent or eliminate danger to the environment, and increase understanding of the environment. Minn. Stat. § 116D.01. MEPA’s requirements facilitate informed decisionmaking and environmental review of the impact of governmental actions on the environment. Minn. Stat. §§ 116D.03-.04. “Governmental action” includes projects that are approved by units of government. Minn. Stat. § 116D.04, subd. 1a(d).

An EAW is “a brief document which is designed to set out the basic facts necessary to determine whether an environmental impact statement is required for a proposed action.” Id., subd. 1a(c). An EAW is required when “material evidence accompanying a petition by not less than 100 individuals . . . demonstrates that, because of the nature or location of a proposed action, there may be potential for significant environmental effects.” Id., subd. 2a(e). The petition for an EAW must be submitted to the Minnesota Environmental Quality Board (EQB), and the EQB chair then determines the appropriate RGU and

1 In 2023, the legislature amended Minn. Stat. § 116D.04, subd. 5a. 2023 Minn. Laws ch. 25, § 37, at 20. The amendment does not change the substance of the applicable section.

forwards the petition to it. Id. The RGU must decide whether an EAW is necessary within 15 days after the RGU receives the petition, or within 30 days if the EQB agrees to extend the deadline. Id. “A person aggrieved by a final decision on the need for an [EAW] . . . is entitled to judicial review of the decision under [Minnesota statutes] sections 14.63 to 14.68.” Id., subd. 10.

Minnesota Rules 4410.0200 to 4410.6500 (2021) are authorized by MEPA and apply to all governmental actions. Id., subd. 5a; Minn. R. 4410.0300, subps. 1 and 2. The rules require RGUs to be “responsible for verifying the accuracy of environmental documents and complying with environmental review processes in a timely manner” and provide that decisions by an RGU on the need for an EAW are final. Minn. R. 4410.0400, subps. 2, 4. The rules outline the procedure the EQB must use to determine the appropriate RGU, Minn. R. 4410.0500, .1100, subp. 5; the standard the RGU must use when determining if an EAW should be prepared, Minn. R. 4410.1100, subp. 6, .1700, subp. 7; and the timeline for the RGU to issue its decision, Minn. R. 4410.1100, subp. 7.

With that background, we turn to the facts. On March 14, 2023, the EQB notified respondent City of Duluth (the city) that it had received a petition for an EAW, submitted by relator Rebecca Mulenburg, to be prepared for a hotel-construction project (the project) at a property at Sundby Road and West Page Street in Duluth (the property). The EQB designated the city as the RGU to review the petition. The city notified the EQB that “the decision regarding the petition will be made by the City of Duluth Planning Commission” and extended the deadline for the city’s response to April 25, 2023, which the EQB acknowledged.

Prior to the commission’s meeting, city planning staff (staff) evaluated the petition against the factors specified in Minn. R. 4410.1700, subp. 7, drafted proposed findings of fact, and recommended that the planning commission deny the petition. Staff concluded that “the potential significant environmental effects of the Project have been anticipated and will be controlled through provisions in the City zoning review and building permit process.” Nevertheless, on April 11, 2023, the planning commission heard comments from the public regarding Mulenburg’s petition; identified concerns about hydrology, impacts to the overall watershed, floodplain impacts, and thermal effects to nearby Miller Creek; and voted in favor of requiring an EAW.

On April 14, 2023, the project developer, respondent Kinseth Hospitality Companies (Kinseth), appealed the planning commission’s decision to the city council under the Duluth, Minn., Legislative Code (DCO) § 50-37.1(O)(4) (2023). Kinseth requested that the planning commission’s decision be reversed because the concerns stated in the petition had been fully considered and addressed by the city’s administrative process.

On May 8, 2023, the city council heard the appeal. Mulenburg and other members of the public spoke in favor of requiring an EAW, and Mulenburg challenged the city council’s authority under the DCO to hear the appeal. At the conclusion of the hearing, the city council reversed the planning commission’s decision after determining that the record did not support the commission’s findings and conclusions in the commission’s motion granting the petition.

Mulenburg filed a petition for writ of certiorari.

DECISION

Mulenburg argues that (1) the city erred by allowing the city council to take the place of the planning commission as the RGU; (2) the city council exceeded its authority under the DCO by hearing Kinseth’s appeal from the planning commission’s decision; and (3) the city council made an arbitrary and capricious decision to deny the EAW petition. 2 We address each argument in turn. I. The EQB designated the city as the RGU, consistent with MEPA.

Mulenburg argues first that the city unlawfully and arbitrarily substituted the city council as the RGU after the EQB had accepted the planning commission as the designated RGU. The record belies Mulenburg’s argument. In multiple notifications from the EQB to the city in March 2023, the EQB stated that it had “determined that the City of Duluth is the appropriate governmental unit to decide the need for an EAW.” (Emphasis added.) No subsequent communication between the EQB and the city shows that the EQB accepted the planning commission alone as the RGU.

Furthermore, the EQB’s designation of the city as the RGU was consistent with the requirements of MEPA and the DCO, as well as state law governing municipal structure. As noted above, MEPA and its associated rules govern the EQB’s selection of an RGU. The interpretation and application of statutes and rules to undisputed facts are questions of

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In re Resolution Reversing the Planning Commission's Decision to Grant the Petition for an Environmental Assessment ..., (Mich. Ct. App. 2024).

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