Minneapolis Community Development Agency v. Opus Northwest, LLC

582 N.W.2d 596 (1998)

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Minneapolis Community Development Agency v. Opus Northwest, LLC

Minnesota Court of Appeals
582 N.W.2d 596 (1998)

  • Written by Tanya Munson, JD

Facts

The City of Minneapolis (the city) (plaintiff) sought to invoke the power of eminent domain to take two parcels of property owned by Opus Northwest, LLC (Opus) (defendant) located on Nicollet Mall in downtown Minneapolis. The city tried unsuccessfully to bring development projects to south Nicollet Mall for several years. The city made detailed findings supporting a decision to designate the area as a redevelopment district and a tax increment financing district that would increase employment and improve the general economy of the state. The city contracted with Ryan Corporation (Ryan) for the construction, development, and eventual ownership of a project on the property where the Dayton Hudson Corporation (Dayton Hudson) would own and operate a retail store (the project). Opus had bid on the project, but it was not chosen because, among other reasons, it could not secure a retailer to operate as an anchor tenant on the property. Opus objected to the condemnation proceedings and instead proposed to build a $120 million office building. The city presented evidence that the ultimate objective of creating an economically viable retail corridor would not be achieved by Opus’s plan. State law required the owner-occupant of a tax-increment-financed project to file an affirmative action plan with the city before doing business. Dayton Hudson did not file such a plan. Opus, as a private taxpayer under the tax increment financing statutes, challenged the legality of the overall project, arguing that the project was not permitted by law because Dayton Hudson did not file an affirmative action plan.

Rule of Law

Issue

Holding and Reasoning (Schumacher, J.)

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