Superior-FCR Landfill, Inc. v. County of Wright

59 F. Supp. 2d 929, 1999 U.S. Dist. LEXIS 12204, 1999 WL 592660
CourtDistrict Court, D. Minnesota
DecidedAugust 6, 1999
DocketCIV. 98-1911 (JRT/FLN)
StatusPublished
Cited by1 cases

This text of 59 F. Supp. 2d 929 (Superior-FCR Landfill, Inc. v. County of Wright) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Superior-FCR Landfill, Inc. v. County of Wright, 59 F. Supp. 2d 929, 1999 U.S. Dist. LEXIS 12204, 1999 WL 592660 (mnd 1999).

Opinion

MEMORANDUM OPINION AND ORDER ON DEFENDANT’S MOTION TO DISMISS AND FOR SUMMARY JUDGMENT

TUNHEIM, District Judge.

Plaintiff Superior FCR Landfill, Inc. (“Superior”) brought this action against Wright County (“the County”) asserting a number of federal and state-law claims. Superior owns a landfill within the County that it had sought to expand to an adjoining piece of property. It alleges that the County’s enactment of zoning regulations combined with activities — in an attempt to monopolize the landfill market within its borders — violates federal antitrust laws, constitutes a taking under both the state and federal constitutions, and contravenes the “dormant, Commerce Clause.” In addition, Superior claims that the County acted tortiously by delaying acceptance of a conditional use permit (“CUP”) application and that the County’s wrongful conduct estops it from enforcing its zoning regulations in these circumstances.

This matter is before the Court on the County’s motion for dismissal of Superior’s takings claims under Rule 12(b)(1) of the Federal Rules of Civil Procedure, and summary judgment on all claims pursuant to Rule 56. Because the County has now made a “final decision” regarding Superi- or’s pending rezoning application, the takings issues are ripe for review and, hence, the Rule 12(b)(1) portion of its motion must be denied. For the reasons set forth below, the County’s motion for summary judgment is granted in part and denied in part.

BACKGROUND

In 1990, the County commissioned a $14 million composting facility. Superior alleges that, after this decision, the County began undertaking a series of measures to destroy competition for waste within the County. In 1992, the County implemented an interstate designation (“Waste Designation Ordinance”), which required all waste *931 generated within the County to be delivered to the composting facility. Shortly thereafter, it modified the ordinance by adopting an “in-state” designation, which exempted all county waste that crossed state lines, but still required all other waste to be delivered to the County’s compost facility. According to Superior, the County soon realized that this modification- — -which allegedly was adopted to make the regulation less conspicuously unconstitutional under the dormant Commerce Clause — did not succeed in generating revenue for the facility. Superior further claims that, as a result of these previously unsuccessful attempts to make the composting facility viable, the County turned to “confiscatory zoning” as a means of preventing competition.

Superior purchased its landfill in 1-994. By 1996, the landfill was the last in the County and was approaching the limit of its permit capacity. On January 12, 1996, Superior entered into an agreement, entitled “Option Agreement,” to buy an adjoining farm. The relevant provisions of this agreement are as follows:

In consideration of the payment by Purchaser to Seller of the sum of Ten Thousand Dollars (“10,000.00”) upon the signing hereof and the mutual covenants and agreements set forth herein, the parties agree as follows:
1. Option. Seller hereby grants Purchaser the option to purchase [the farm] ....
2. Option Price. If Purchaser exercises its option to purchase the Property, the purchase price shall be [$576,000.00], payable in case at the closing (the “Purchase Price”). The amounts paid by Purchaser as consideration for the option granted by this Agreement shall be credited against the Purchase Price. The amounts paid as consideration for the option granted by this Agreement shall not be refundable if the option is not exercised.
3. Exercise of Option. Purchaser may exercise the option to purchase the Property at any time on or before December, 31, 1996. The option shall be exercised by delivery of written notice to Seller and payment of the Purchase Price, as provided above, and may be extended for four (4) years total, by receipt of payments according to the following schedule ....
All additional payments shall be treated as provided in Item 2, above.
Purchaser agrees to use its best efforts to obtain the permits necessary to operate a solid waste disposal facility on the Property in as expedient a manner as possible. The parties acknowledge, however, that although the process involved in permitting and developing the Property for use as a solid waste disposal facility generally takes approximately 3$ years, there may be circumstances beyond Purchaser’s control that may delay the issuance of the necessary permits. “Best efforts” shall include giving first priority to the licensing of this location with others adjoining the present fill site.
4. Closing. Closing shall take place at a time and location specified by Purchaser in its exercise notice, no later than ninety (90) days after the necessary permits are received by Purchaser ....

According to Superior, its representatives formally notified the County in February 1996 that it intended to expand the landfill into the adjacent property. At the time, this expansion would have conformed to the County’s zoning regulations. Superior alleges that, in response, County personnel twice instructed Superior that they would not accept any request for a CUP application until Superior had completed an environmental assessment worksheet *932 (“EAW”)- At that time, the County did not have a written policy regarding whether it could refuse to accept or consider a CUP application based on a pending EAW. Superior alleges that this refusal was a willful attempt by the County Board of Commissioners (“County Board”) to thwart Superior, or at least a negligent refusal by the County’s staff.

On November 4, 1996, two weeks before Superior’s EAW would be complete, the County enacted a one-year moratorium on ten categories of development, including landfill expansion. In October, 1997, the County extended that moratorium. The County gathered information regarding these categories of development during the moratorium period. In March 1998, the County enacted a new zoning ordinance (“New Zoning Ordinance”) restricting all waste handling to specified districts that effectively precluded any possibility of Superior’s expansion. On August 12, 1998, Superior exercised its option to purchase the adjoining farm, even though landfill is neither a permitted nor conditional use for that site under the New Zoning Ordinance.

Superior filed applications with the County for rezoning and a variance, seeking the expansion under the current ordinance. Without awaiting the outcome of those applications, Superior brought this lawsuit. On April 6, 1999, after the County’s motion had been briefed and argued, the County Board issued a final decision denying the applications.

After receiving approval from the Magistrate Judge, Superior filed a Second Amended Complaint in May 1999. The Second Amended Complaint alleges new claims, including inter alia, violations of state zoning laws and violation of substantive due process under the Constitution. The Court need not consider these new claims in addressing this motion.

ANALYSIS

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Bluebook (online)
59 F. Supp. 2d 929, 1999 U.S. Dist. LEXIS 12204, 1999 WL 592660, Counsel Stack Legal Research, https://law.counselstack.com/opinion/superior-fcr-landfill-inc-v-county-of-wright-mnd-1999.