Title: Ostrand v. Village of North St. Paul
Citation: 147 N.W.2d 571
Docket Number: 40017
State: Minnesota
Issuer: Minnesota Supreme Court
Date: December 30, 1966

147 N.W.2d 571 (1966) George OSTRAND, Respondent, v. VILLAGE OF NORTH ST. PAUL, Appellant. No. 40017. Supreme Court of Minnesota. December 30, 1966. Rehearing Denied January 13, 1967. *572 Seldon H. Caswell, North St. Paul, for appellant. John E. Daubney, St. Paul, for respondent. THOMAS GALLAGHER, Justice. This action is for a declaratory judgment that plaintiff, George Ostrand, as owner of certain property in defendant village is entitled to a permit from defendant to construct an apartment building thereon. After defendant's denial of the application for such permit, this action in the district court was instituted. Therein the court held that defendant's actions were arbitrary, capricious, and unlawful, and that the zoning ordinance upon which they were based in so far as it applied to plaintiff's property deprived him of it without due process. This appeal is from an order denying defendant's motion for a new trial. Plaintiff, a general contractor and real estate developer, purchased the property on May 12, 1962. At that time under Ordinance No. 169 it was zoned as class C residential property which authorized its use for multiple-residential purposes if a special permit therefor was obtained from the village council. Plaintiff was then advised that the village was contemplating a new comprehensive zoning ordinance which, if adopted, would limit the use of plaintiff's property to single-family dwellings. He was advised, however, by the village manager, Mr. Orville Johnson, that, if prior to the adoption of this ordinance a permit for multiple-dwelling use were granted him, the construction of such multiple dwellings would be valid under a contemplated nonconforming-use clause in the new ordinance. On May 21, 1962, plaintiff made application for the permit to construct a multiple dwelling on his property under the ordinance then in existence. He also petitioned for certain improvements on the property, including the installation of sewers, water mains, sidewalks, and alleys, and for street surfacing. On that date the village council determined that a public hearing on both applications should be held on June 4, 1962. *573 On May 24 defendant's village manager wrote plaintiff as follows: At the hearing on June 4, 1962, no evidence was presented with respect to the need for limiting the use of plaintiff's property to single-family residences or to indicate that if a multiple dwelling were erected thereon problems as to public health, safety, or welfare would arise. Notwithstanding this and notwithstanding that plaintiff's application and proposed plans and specifications were consistent with the zoning ordinance then in effect and met all requirements of defendant's building code, his application for the multiple-dwelling permit was denied "for the best interests of the Village." At the same time the village granted his application for the installation of the utilities and other improvements. On July 23, 1962, the village adopted the new master zoning ordinance which became effective on August 29, 1962. As stated above, this limited the permitted use of plaintiff's property to single-family residences although it was established that a recommendation of the village planner indicated that multiple-resident development in the location of plaintiff's property would be practical. The present action was commenced after the denial of plaintiff's application described. At the trial it was established that plaintiff's property had a value of $33,000 for multiple-resident purposes and only $18,000 for single-family residential construction. In a memorandum opinion, the court stated: After consideration of the evidence and because of the absence of anything to justify defendant's position, the court remanded the case for an additional hearing by the village council. This hearing was held by the council on August 10, 1964. Written reports from the police, fire, health, and engineering departments of the village and from its planning board and professional planner were submitted as evidence at this hearing. These reports were made part of the minutes of this meeting. In them there is no indication that any problems as to health, safety, or public welfare would arise in case the proposed construction were completed. At the close of this meeting the council again denied plaintiff's application, this time on the ground that the granting of the permits would "create problems of safety, traffic and the present and future development of our village," and such problems would "endanger the safety and welfare of the Village." On November 5, 1964, the district court proceedings were reopened and after considering the evidence submitted at the August 10, 1964, hearing, the court determined that the action of the village in denying plaintiff's application was arbitrary and illegal because not based upon any valid considerations of health, safety, or welfare. In a memorandum opinion the court stated: 1. We are in accord with the court's determination that defendant acted arbitrarily and unlawfully in denying plaintiff's application for a permit to construct a multiple-dwelling structure on his property. His application met all existing standards of the building and zoning ordinances of the village then in effect and appears to have been rejected principally because of neighborhood opposition. In denying it, the village council did not follow the recommendations of its planning commission or consider the reports of its police, fire, or health departments to the effect that no potential hazards would follow if an apartment building were constructed on plaintiff's property. The only other evidence received at the hearing were statements of property owners whose properties were adjacent to plaintiff's property to the effect that in their opinions their properties might be devalued if the permit were granted. Such argument has no legality. Alexander v. City of Minneapolis, 267 Minn. 155, 125 N.W.2d 583; Olsen v. City of Minneapolis, 263 Minn. 1, 115 N.W.2d 734. As stated in the Olsen case (263 Minn. 11, 115 N.W.2d 741) 2. With respect to the special permit required, it is significant that the ordinance in question established no criteria or standards of procedure under which such permits would be granted or denied except that it would be after a hearing before the village council. After such a hearing plaintiff's application was denied, and as indicated, no valid reason for this was given by the council. It seems clear to us, as it did to the trial court, that in denying the application the council acted in an arbitrary and capricious manner and without justification for denial under the special permit ordinance. As stated in Olsen v. City of Minneapolis, 263 Minn. 1, 8, 115 N.W.2d 734, 739: 3. The language of Ordinance No. 320, upon which the council determined that existing zoning ordinances could be ignored until action was taken upon the contemplated general comprehensive zoning, is indefinite. We are inclined to agree with the trial court's concept of it as a "stopgap" ordinance, although its language makes any conclusion as to its meaning extremely uncertain. It was adopted August 15, 1960, almost 2 years before the new zoning ordinance was adopted. As the trial court stated, "[I]t appears to be an effort to freeze all zoning as of a certain date unless the council decides otherwise." We have held that an ordinance of this kind constitutes taking of property without due process contrary to constitutional requirements. In such light it must be held irrelevant in the present proceedings. See, Alexander v. City of Minneapolis, 267 Minn. 155, 125 N.W.2d 583. The order appealed from is affirmed. Affirmed.