Matter of City of Shakopee

295 N.W.2d 495, 1980 Minn. LEXIS 1437
CourtSupreme Court of Minnesota
DecidedJune 13, 1980
Docket50171
StatusPublished
Cited by9 cases

This text of 295 N.W.2d 495 (Matter of City of Shakopee) 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
Matter of City of Shakopee, 295 N.W.2d 495, 1980 Minn. LEXIS 1437 (Mich. 1980).

Opinion

KELLY, Justice.

The City of Shakopee petitioned for condemnation of certain land for a street easement. Claiming an interest in the land, the Metropolitan Waste Control Commission (MWCC) intervened. After a hearing, the trial court found that the city had authority to condemn the land and ordered commissioners to ascertain compensation for the owners. The MWCC now appeals from that order. We reverse.

The Metropolitan Waste Control Commission (MWCC) is a subsidiary of the Metropolitan Council set up pursuant to sections 473.501-.549 of the Minnesota Statutes to coordinate waste disposal in the seven-county metropolitan Twin Cities area. As part of the third phase of a three-phase project, the MWCC, sometime around 1975, determined that land should be obtained for a sludge disposal site to facilitate waste disposal from the southwest part of the metropolitan area including the Lake Minneton-ka, Shakopee, and Prior Lake areas. To this end, the MWCC, on December 30,1976, acquired unrecorded options to purchase land located in Shakopee (the Scottland and Whipps parcels). The MWCC has prepared an environmental assessment of the site.

The MWCC authorized the timely exercise of the options on the Scottland and Whipps parcels at a meeting on January 17, 1978. These options were then actually exercised by letters of January 19, 1978. The exercise of the options went unrecorded. Title to the Scottland parcel passed to the MWCC on June 22, 1978, and the deed was recorded on July 11, 1978. Title to the *497 Whipps parcel passed to the MWCC on May 25, 1978, and the deed was recorded on August 23, 1978.

The MWCC attempted to acquire a permit from the Shakopee City Planning Commission for the sludge site. This permit was denied, and the MWCC initiated a declaratory judgment suit to determine that it was exempt from city and county regulations or that the proposed actions were consistent with existing regulations. This case has been recently rendered moot by the passage of 1980 Minn.Laws, ch. 564. See Metropolitan Waste Control Commission v. City of Shakopee, 294 N.W.2d 1 (Minn. 1980).

The City petitioned to condemn a strip of land running across the southern portion of the Scottland and Whipps parcels- for an easement that would extend the Valley View Road to connect County Roads 83 and 21 on March 24, 1978. There is no immediate need for the extension of the road. The indefinite future construction date will depend on the result of a comprehensive plan. The petition named as respondents only the holders of record interests in the land to be condemned and thus did not name the MWCC even though the city administrator had actual knowledge that the MWCC had authorized the exercise of options to purchase the Scottland and Whipps parcels. The Mayor of Shakopee was also present at the meeting at which the exercise was authorized.

The MWCC learned of the condemnation suit and intervened because of its interest in the property. A hearing was held on September 8, 1978. The trial judge in his factual findings found that there was no showing that the MWCC had any interest in the land other than options to purchase and that there was no “clear showing” that the MWCC would put the property to a public use in the future. In the memo accompanying his findings, however, the trial judge recognized that the MWCC had exercised the options at the time of the initiation of the lawsuit. The trial judge thus apparently decided the question on the ground that even though the commission’s exercised options made the land “public property,” the city had authority to condemn because the property was not currently being put to a public use, and there was no clear showing that the property would ever be put to a public use. The city’s petition to acquire the easement was thus allowed, and the MWCC brought this appeal. This case presents the following issues.

1. For the purposes of this action, were the Scottland and Whipps parcels “public property” as of the date of the initiation of the condemnation proceeding?

2. Under its general grant of eminent domain, does the City of Shakopee have an implied statutory right to condemn the MWCC’s interest in the Whipps and Scott-land parcels under the facts of this case? This breaks down into several questions:

a. May the city condemn the land on the ground that it is not currently in public use, and there was no “clear showing” that it would be put to public use in the future?

b. May the city condemn the land on the ground that the proposed extension of the Valley View Road is not substantially inconsistent with the use to which the MWCC intends to put the property?

c. Is the nature of the easement desired by the city such that the road cannot reasonably be constructed without encroaching on public property?

d. Does the legislative framework indicate that the city is authorized to condemn MWCC land?

1. The uncontradicted evidence shows that the MWCC had an interest in the Scottland and Whipps parcels as of the initiation of the petition for condemnation on March 24,1978. The Commission actually exercised its options on the land on January 19, 1978. Once a contract option has been exercised in accordance with its terms, it changes into a contract of purchase and sale; the relationship between the parties changing from optionor and optionee to vendor and vendee. See Shaughnessy v. Eidsmo, 222 Minn. 141, 146, 23 N.W.2d 362, 366 (1946); 91 C.J.S. Vendor and Purchaser *498 § 13, at 863 (1955). A holder of a vendee’s, or equitable, interest in land clearly has an interest that is compensable in a condemnation proceeding. Cf. Hampel v. Gleason, 303 Minn. 55, 57, 225 N.W.2d 844, 846 (1975) (“ ‘The vendee takes the equitable title, subject to the exercise of the right of eminent domain, just as though the title had been conveyed to him.’ ”) (quoting Summers v. Midland Co., 167 Minn. 453, 456, 209 N.W. 323, 324 (1926)).

The Shakopee City Administrator admitted that he knew that the exercise of the options had been authorized by the Commission. The Mayor of Shakopee was also present at the meeting where the exercise was authorized. Under these circumstances, it would appear that the city should have named the MWCC in its original petition under Minn.Stat. §§ 117.055 and 117.-025, subd. 3 (1978). 1

If the Commission should have been named as a party in the first place, it is difficult at this point to accept an argument that the lack of recordation of the Commission’s interest should make a difference in whether the land in question is regarded as “public” for the purposes of a condemnation action. We hold that, under the facts of this case, the MWCC had sufficient interest in the property at the time of the initiation of the petition to raise any defense that the land was in public ownership.

2(a).

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Bluebook (online)
295 N.W.2d 495, 1980 Minn. LEXIS 1437, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-city-of-shakopee-minn-1980.