In Re Wren

699 N.W.2d 758, 2005 WL 1774043
CourtSupreme Court of Minnesota
DecidedJuly 28, 2005
DocketA04-207
StatusPublished
Cited by5 cases

This text of 699 N.W.2d 758 (In Re Wren) 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
In Re Wren, 699 N.W.2d 758, 2005 WL 1774043 (Mich. 2005).

Opinion

699 N.W.2d 758 (2005)

In the Matter of the Kenneth WREN Residential Relocation Claim.
The Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under Minnesota law, Appellant,
v.
Kenneth Wren, Respondent.

No. A04-207.

Supreme Court of Minnesota.

July 28, 2005.

*759 James J. Thomson, Robert J.V. Vose, Kennedy & Graven, Chartered, Minneapolis, MN, for Appellant.

Jon W. Morphew, Schnitker & Associates, P.A., Minneapolis, MN, for Respondent Kenneth Wren.

David Allan Davenport, Winthorp & Weinstine, P.A., Minneapolis MN, for Intervener Lyndale Gateway LLC.

Susan L. Naughton, League of Minnesota Cities, St. Paul, MN, for Amicus Curiae League of Minnesota Cities.

Heard, considered, and decided by the court en banc.

OPINION

HANSON, Justice.

Appellant Richfield Housing and Redevelopment Authority (HRA) appeals from an administrative order directing it to pay relocation benefits to respondent Kenneth Wren pursuant to the Minnesota Uniform Relocation Act (MURA), Minn.Stat. §§ 117.50-117.56 (2002). The HRA contends that it should not be liable to pay the benefits because it contracted with a private developer to negotiate with Wren for the purchase of his home. The Administrative Law Judge concluded that the HRA had "undertaken acquisition" of Wren's property within the meaning of *760 MURA and held that Wren was entitled to relocation benefits. The court of appeals affirmed. In re Wren, 685 N.W.2d 721, 725 (Minn.App.2004). We affirm the decision of the court of appeals.

In 1993, the City of Richfield through its HRA began efforts to redevelop a "blighted and substandard" area on the 7600 blocks of Lyndale, Aldrich, and Garfield Avenues South. The redevelopment project eventually became known as "Lyndale Gateway West." In January 1999, the HRA contracted with CSM Properties, Inc. to redevelop the area with a mixture of residential, retail, and office structures. By letter, the HRA informed area property owners about the contract and that there would be a process to address property-owner inquiries about "the purchase of their home."

In November 1999, Wren purchased a residence at 7627 Aldrich Avenue South for $116,900, without actual knowledge that the property was within the redevelopment boundaries. Shortly after moving in, Wren received a postcard about a city council meeting where the redevelopment plans were to be discussed. He attended the meeting and later received "general information" about the time line for the project.

The HRA terminated its contract with CSM Properties in May 2001 and sought another developer. In August 2002, the HRA approved a contract with Cornerstone Group, which in turn created Lyndale Gateway, LLC, to acquire property for the project. The "Contract for Private Development" between the HRA and Lyndale Gateway specified that Lyndale Gateway was to "diligently pursue" property acquisitions through negotiation. If those negotiations failed, Lyndale Gateway could ask the HRA to "undertake condemnation" and HRA agreed that it would "in good faith, * * * undertake the steps necessary to acquire fee simple title to the portions of the Property to which the request relates." All properties acquired by the HRA through condemnation would be conveyed to Lyndale Gateway. Lyndale Gateway was "responsible for all acquisition costs and the cost of relocation benefits and assistance provided to any party displaced as a result of the development."

In 2002, the City of Richfield established a Tax Increment Financing (TIF) district to finance the project.[1] In July 2002, a real estate broker hired by Cornerstone Group contacted Wren to discuss the purchase of his property. Ultimately, the broker mailed a purchase agreement to Wren for the purchase of Wren's home by Lyndale Gateway for $170,000. The purchase agreement gave notice that there was a "dual agency" arrangement and, pursuant to Minn.Stat. § 82.197, subd. 2 (2004), disclosed that the broker owed fiduciary duties to both the buyer and seller. The purchase agreement's addendum specified that the seller was waiving any claim to relocation benefits.[2]

*761 Wren negotiated a $10,000 increase to the purchase price. The broker testified at an administrative hearing that "Mr. Wren felt that he should be getting more money in order to move." Ultimately, the parties signed the purchase agreement and addendum, with a sale price of $180,000. Wren closed on the sale of his property on June 5, 2003, and moved the same day. Shortly thereafter, he claimed relocation benefits from the HRA.

The HRA sought an administrative hearing pursuant to Minn.Stat. § 14.55 (2004)[3] to challenge its liability to pay the benefits, and Lyndale Gateway's petition to intervene was granted. The administrative law judge ruled that Wren was entitled to relocation benefits because (1) he was a "displaced person" within the meaning of the statute, (2) the city had "undertaken" acquisition of Wren's property because "the record demonstrates a significant element of involvement and control by the HRA in this redevelopment effort," and (3) Wren's waiver of relocation benefits was ineffective because the HRA failed to meet its statutory duty to provide Wren with information on the benefits. See Minn.Stat. § 117.521, subd. 1 (2004). In his memorandum, the ALJ concluded:

Where an HRA selects a private developer to engage in direct negotiations with property owners it should not be relieved of the requirements of the statute where it remains the moving force behind redevelopment, that is, where it "undertakes" the acquisition of property for redevelopment. To do so would frustrate the beneficial purpose, including the specific notice requirements, set out in MURA and the federal law.

The ALJ also denied the HRA's petition for reconsideration.

On appeal by writ of certiorari, the court of appeals affirmed, holding that the HRA's "significant role" in the project supported the ALJ's conclusion that the HRA had "undertaken" acquisition of the property. In re Wren, 685 N.W.2d at 725. Because the HRA did not challenge the ALJ's ruling that Wren's waiver of relocation benefits was ineffective, the court of appeals did not address that issue. We granted the HRA's petition for review of the issue of whether the acquisition of Wren's property had been "undertaken" by the HRA, within the meaning of MURA.

I.

Statutory interpretation is a question of law reviewed de novo without deference to an administrative decision. In re Denial of Eller Media Co.'s Applications for Outdoor Advertising Device Permits, 664 N.W.2d 1, 7 (Minn.2003). When reviewing an administrative law judge's findings of fact, we determine whether they are "[u]nsupported by substantial evidence in view of the entire record as submitted." Minn.Stat. § 14.69(e) (2004).

The MURA provision for relocation benefits reads in relevant part:

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Cite This Page — Counsel Stack

Bluebook (online)
699 N.W.2d 758, 2005 WL 1774043, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-wren-minn-2005.