8.1. SR 01-21-1997 - Laserfiche WebLink

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~HRIS SMITH Court decisions Temporary revocation of a rental dwelling license is not a compensable taking Facts Pursuant to a city ordinance, a landlord's rental dwelling license was revoked for three instances of disor- dcrly use of the licensed Premises within a one-year period, namely drug dealing and associated violence. The landlord sued the city, seeking rein- statement of the rental dwelling license and compensation for the alleged taking of his license. Decision and analysis The city revoked the landlord's license by means of a regulatory ordinance, but did not physically appropriate any land. A general roperty regulation will not result in a taking unless the property owner demonstrates that the regulation has resulted in a severe economic loss to the property owner, and that the government action is not rationally related to any legitimate government interest. Protection of the public has long been recognized to carD, some individual burdens, including the regulator),, prohibition of certain uses private property. This ordinance, viewed in light of the city's intent in passing it, is an example of a harm- prevention regulation. The ordinanc designed to sen'e a legitimate public interest-deterring criminal activity residential neighborhoods by enlisti: the aid of landlords. The tics ascribed to landlords are and may be properly to operating rental dwellings in an urban area. Accordingly, Supreme Court held that the tempe taking of a rental dwelling not result in a compensable taking under the Minnesota or United Sta~ constitutions. Zeman v. City may require mobile home park owner to pay relocation costs upon park closing Facts The city adopted an ordinance requiring that mobile home park owners who close their parks pay FundBalance More than just software. It~ the proven solution. Changes in technology are giving you more choices than ever. Don't to go? There's only ONE WAY: FundBalance Plus, With over 1,000 municipal clients nationwide, we're the leader in fund accounting solutions, Financial Systems Utility Billing Cemetery Management 30-day 100% satisfaction guarantee Training and Consulting 'if your goal is to make the job of running your local municipality easier, then I recommend using FundBalance Plus software." There are many choices, but only one solution: FundBalance Plus. displaced residents the reasonable cost of relocating their mobile homes to another park within a 25-mile radius, or to pa)' compensation equal to the tax assessed value of the homes. To protect the park owner's investment, the ordinance had a cap limiting to:al compensation to 20 percent of the purchase price of the park. Mobile home park owners brought suit alleging that the ordinance constituted a regulatory taking without just compen- sation, and is unconstitutional under due process and equal protection grounds. Decision and analysis While the value of the property may diminish as a result of the ordinance, that alone is insufficient to demonstrate that an actual or per sc taking has occurred. The issue is whether the ordinance substantially advances a legitimate governmental purpose. The purpose of this ordinance is to protect mobile home park residents from severe or complete loss of substantial investments in their homes when the park owner decides to close the park. By requiring a park owner to pay mitigation fees or relocation costs to displaced residents, the ordinance has a direct nexus to the interest of lessening the economic devastation imposed on displaced residents. Legislation is constitutional as long as it promotes a public purpose: is not an unreasonable, arbitrary,', or capricious interference with a private interest; and the means chosen bear a rational relation to the intended public purpose to be served. Applying these principles, the Minne- sota Supreme Court determined that the ordinance did not constitute a regulator), taking without just compen- sation, and withstands equal protection and due process challenges. Arcadia Dev. Corp. v. City of Bloomington, N.W.2d __ (Minn. Aug. 13, 1996). Quick takes Whistleblower Act waives statutory immunity defense The executive director of a state regulatory board alleged he had been 28 ~.~1 MINNESOTA CITIES / OCTOBER 1996