Judge Rules Roseville Ordinance "Invalid"

A Ramsey County district judge on Wednesday declared "invalid and unenforceable" a Roseville city ordinance that would impose an "impact fee"  on various Twin Lakes property owners who seek to develop their property in the future.

In striking down Ordinance 1417, Judge John Guthmann  found that Roseville's powers were limited, and that the fee exceeded the city’s statutory authority.

Carolyn Curti, a Roseville city spokeswoman, had no immediate comment. "We just received this and will not have a comment until we have time to discuss with the attorneys and City Council," she said.

The Roseville Council adopted the ordinance last September in a move that affects various Twin Lakes property owners who seek to develop their property in the future.

One of the Twin Lakes property owners, XTRA Lease, challenged the ordinance. Robert Hajek, an attorney for XTRA Lease, said Guthmann's decsion is the first time a Minnesota district court has directly tackled this issue. "It is the right decision," he said of Guthmann's ruling.

The Twin Lakes area is generally north of County Road C and east of Cleveland Avenue. The redevelopment area consists of about 275 acres, including about 175 acres that is still vacant.

The city has yet to see much of the area develop and has imposed various development moratoriums and condemnations on Twin Lakes property owners, Hajek said in a press statement. The area has been in play since at least the late 1980s, he addd. 

Hajek contended that Roseville Ordinance 1417 is inappropriate because it seeks to place all the costs for public improvements from future development onto to the landowners. "The city doesn't want to put any skin in the game," he said. 

Meanwhile, Hajek said the XTRA Lease's contention that it has suffered "inverse condemnation" or unjust taking of its property is scheduled for trial in August before Guthmann.

This is not the first time Minnesota courts have invalidated the city’s actions in connection with Twin Lakes, attorneys for XTRA Lease said. In 2006, the Minnesota Court of Appeals sided with a citizens group, known as the “Friends of Twin Lakes,” holding that the city’s approval of a “Costco” development was “arbitrary and capricious,” they said.

Currently, the Twin Lakes area is the subject of a new development proposal: Arkansas-based discounter Wal-Mart wants to build a 160,000 square-foot store on about a 14-acre parcel of land that is bounded by County Road C, Cleveland Avenue, Twin Lakes Parkway and Prior Avenue.  The proposal is also being advanced by owners of the property, Roseville Properties.

The Roseville Council is scheduled at its April 23 meeting to consider Wal-Mart's request for preliminary and final plat approval along with a proposed development agreement between the city and the applicants.

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