Visina v. Freeman

89 N.W.2d 635, 252 Minn. 177, 1958 Minn. LEXIS 600
CourtSupreme Court of Minnesota
DecidedApril 11, 1958
Docket37,510
StatusPublished
Cited by61 cases

This text of 89 N.W.2d 635 (Visina v. Freeman) 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
Visina v. Freeman, 89 N.W.2d 635, 252 Minn. 177, 1958 Minn. LEXIS 600 (Mich. 1958).

Opinion

Knutson, Justice.

This action was brought by plaintiff as a resident freeholder and taxpayer of the city of Duluth, county of St. Louis, and State of Minnesota, for a judgment declaring that L. 1957, cc. 648, 831, and 849, are unconstitutional for several reasons and for a declaration that such acts are void.

The case was submitted to the trial court on a stipulation of facts. The parties, on appeal, have agreed upon a statement of facts which substantially sets forth the matters which must be considered in order to dispose of the legal questions involved. In so far as there is no dispute in the statement of facts we shall adopt them for the purpose of this opinion.

Port Authority of Duluth was organized on January 24, 1930, following passage of L. 1929, c. 61. On June 2, 1955, Port Authority of Duluth was reorganized pursuant to L. 1955, c. 685, § 2, to provide for the appointment of members of Port Authority Board by the board of county commissioners of St. Louis County and by the governor of the State of Minnesota.

In anticipation of the opening of the Great Lakes-St. Lawrence water *180 way that will enable oceangoing vessels to traverse the Great Lakes, our legislature, in 1957, adopted three separate acts. Chapters 648 and 831, for the most part, were amendments of existing statutory provisions codified under M. S. A. c. 458. Chapter 849 added new provisions. The portion of these acts now under attack relates to the financing of the reclamation of land and the construction of terminal port facilities by Seaway Port Authority of Duluth. While the three provisions under consideration were adopted as separate chapters, they involve a legislative plan calling for aid to a seaway port authority from the state (c. 849); from the county (c. 648); and from the city of Duluth (c. 831), in which city such seaway port is located.

Under c. 849 the state’s money is to be raised upon sale of certificates of indebtedness issued in anticipation of the revenue to be derived from a special tax levied in aid of port development, the proceeds of which are to be credited to an account designated as “Minnesota Seaway Property Conservation Fund.” The state contribution is granted to a seaway port authority in the discretion of the executive council on a matching basis with local funds, and state money shall be used only for the reclamation, conservation, development, and protection of the land upon which port terminal improvements are erected and not for the improvements.

Under c. 648 a county in which the county board has the right to appoint members of a seaway port authority board may issue general obligation bonds in an amount not to exceed $4,000,000 and pay the proceeds from such sale to the seaway port authority for its use in the construction of port facilities.

Under c. 831 a city in which such seaway port authority operates may issue its general obligation bonds in a sum not to exceed $1,000,000 and pay the proceeds from such sale to the seaway port authority for its use in the construction of port facilities.

By statutory definition, a port authority may be established only in cities having a population of over 50,000 inhabitants, and seaway port authorities are defined as “port authorities now or hereafter having jurisdiction over harbors located on the Great Lakes-St. Lawrence seaway system.”

Only St. Louis, Lake, and Cook Counties border on the Great Lakes- *181 St. Lawrence Seaway System, so it follows that only municipalities in these counties could qualify under the acts involved, and of these only Duluth has a population in excess of 50,000 inhabitants; consequently, at the present time these statutory enactments could apply only to the city of Duluth.

Chapter 648 limits the right to issue general obligation bonds in aid of port development to a county in which the board of county commissioners may appoint members of a seaway port authority board. At the present time only St. Louis County could qualify under this provision.

The issuance by a city of general obligation bonds, the proceeds of which are to be used to further seaway port development, is limited by c. 831 to a city entitled to appoint members of a seaway port authority. Only the city of Duluth could qualify under this definition.

As a matter of practical operation under this plan, Seaway Port Authority of Duluth must first ascertain the type of development suited to the potential of its harbor, considering as separate problems the reclamation, conservation, protection, and development of land on the one hand and the construction of the improvements necessary for port development on the other. Not more than one-half of the total cost can be attributed to construction of port facilities, and the cost of the total development must not exceed $10,000,000 if the port authority is to take full advantage of these three legislative provisions because the state may make contribution only for the reclamation, development, protection, and conservation of land, and the total state contribution shall not exceed $5,000,000, which contribution must be matched by an equal amount derived from other sources.

In these legislative enactments the following steps have been taken:

(1) The State of Minnesota by defendant Stafford King, state auditor, has commenced levy of a tax in an amount sufficient to produce the sum of $333,333.34 for the year 1957, which is collectible in the year 1958 pursuant to the act.

(2) The board of county commissioners of St. Louis County, pursuant to a required notice, held a public hearing at which all who were interested were permitted to be heard, after which the board adopted *182 a resolution upon the affirmative vote of all six commissioners finding that the development of the Duluth port would inure to the benefit and welfare of the community at large; that such efforts would constitute an essential government function; and that this function could best be performed through the medium of Port Authority of Duluth. The board of county commissioners further resolved that it would consider the issuance of general obligation bonds of the county as soon as conditions precedent had been met; that is, as soon as the city of Duluth had taken the necessary steps to issue its general obligation bonds in furtherance of this development.

(3) By unanimous vote of the city council of the city of Duluth, legal proceedings have been commenced for the issuance of $1,000,000 in general obligation bonds of the city. On December 9, 1957, a resolution was adopted setting forth the terms or conditions of the proposed bond issue, the form of the bond, and the conditions of sale. The purpose stated was:

“* * * to provide funds for and to make the same available to * * * Seaway Port Authority, to pay for the purchase, construction, extension and improvement of port and terminal facilities owned and to be owned and operated by such Port Authority; * * *.”

(4) Port Authority of Duluth has engaged the services of engineers and other technical experts to plan the development and erection of a port terminal in the Bay of St.

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Bluebook (online)
89 N.W.2d 635, 252 Minn. 177, 1958 Minn. LEXIS 600, Counsel Stack Legal Research, https://law.counselstack.com/opinion/visina-v-freeman-minn-1958.