865 N.W.2d 689
Minn.2015Background
- Minnesota DOT owned three parcels (Tract N, Lot 18, Alley Parcel) no longer needed for I-394 and proposed to convey them under Minn. Stat. § 161.44 to the Golden Valley HRA.
- The HRA had agreed to transfer Tract N to Global One for an $85M residential project (senior and multi-family housing); Lot 18 and the Alley Parcel were to become public right-of-way.
- Webb Golden Valley, LLC owned adjacent property and a remainder interest in the Alley Parcel; Webb sued seeking declaratory and injunctive relief, arguing the § 161.44 conveyance was not for a public purpose and seeking either the property or a public auction.
- The district court: denied dismissal as to the Alley Parcel (remainder interest) but dismissed claims as to Tract N and Lot 18 for lack of standing (loss of opportunity to bid insufficient); later ordered Webb to post a $3.2M surety bond under Minn. Stat. §§ 469.044-.045 based on risk of lost investors and tax revenue; Webb failed to post and the suit was dismissed with prejudice.
- Court of appeals reversed both the partial standing dismissal and the bond dismissal; this court granted further review.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to challenge State conveyance under Minn. Stat. § 161.44 | Webb: loss of opportunity to bid on Tract N and Lot 18 is a concrete, particularized injury-in-fact | State/Intervenors: Webb lacks any legal interest in those parcels, so mere lost bidding opportunity is insufficient | Held: Webb has standing — loss of a particularized opportunity to bid is an injury-in-fact |
| District court’s order requiring a surety bond under Minn. Stat. §§ 469.044-.045 | Webb: suit does not challenge HRA authority; evidence of public harm (lost investors, tax revenue) is speculative and cannot rely on § 117.025 public-purpose definition | HRA/State: litigation threatens HRA/Project authority; evidence shows investor withdrawal, delayed project, lost jobs and tax revenue supporting bond | Held: Court did not abuse discretion; Webb’s suit draws into question HRA authority and record evidence supports potential public/taxpayer harm; § 117.025 public-purpose definition is inapplicable |
Key Cases Cited
- Lorix v. Crompton Corp., 736 N.W.2d 619 (Minn. 2007) (standing requires injury-in-fact or statutory grant)
- In re Custody of D.T.R., 796 N.W.2d 509 (Minn. 2011) (standing is a jurisdictional issue reviewed de novo)
- Snyder’s Drug Stores, Inc. v. Minn. State Bd. of Pharmacy, 221 N.W.2d 162 (Minn. 1974) (distinguishing private interest from general public grievance for standing)
- Anderly v. City of Minneapolis, 552 N.W.2d 236 (Minn. 1996) (public corporation may obtain surety bond where litigation can impair projects or public interest)
- Day Masonry v. Independent Sch. Dist. 347, 781 N.W.2d 321 (Minn. 2010) (appellate preservation of alternate theories for affirmance)
