Memo- Insitutional Zoning
Memorandum
To: Jim Kerrigan .
From: Nancy Anderson
Date: 04/06/99
Re: Institutional Zoning
The following are the R-l uses that I would see in the institutional zoning district:
. Churches/Synagogues
Congregation Bet Shalom, Hopkins United Methodist Church, St. John the Evangelist Catholic
Church, Zion Lutheran Church
. Schools
AI ice Smith, Eisenhower, St. John, Blake
. Community Facilities
Harley Hopkins, Eisenhower Community Center .
. Essential Public Facilities
Blake water tower
The following uses are in the City but not located in the R-I zoning district. If one of the
following uses locates in the R-l districts, that use would be subject to the institutional zoning
. Nursing homes
. Municipal service structures
.
."
. VESELY, MILLER & STEINER, P.A.
PROFESSIONAL ASSOCIA nON
A TTORNEYS AT LAW
JERRE A. MILLER 400 NORWEST BANK BUILDING JOSEPH C. VESELY (1905-1989)
JEREMY S. STEINER * 1011 FIRST STREET SOUTH
WYNN CURTISS HOPKINS, MINNESOTA 55343
III Real Propeny l.aw Speciailst, certified 612-938-7635
by the Minnesota St&te Bar Association FAX 612-938-7670
MEMORANDUM
DATE: March 3 1, 1999
TO: Steven Mielke
~Kerrigan 1S~
FROM: Jerry Steiner
RE: Single Family Housing Preservation Study
At the March 9 City Council work session, I was asked to provide an opinion whether the
. City would have the authority to include, as one of the requirements for issuance of a Demolition
Permit or Conditional Use Permit, a condition requiring the applicant to demonstrate that the activity
for which the Permit is to be issued has been approved by a majority of the membership of an
institutional applicant. For the reasons stated below, it is my opinion that such a condition should
not be included as one of the requirements for obtaining a Demolition Permit or Conditional Use
Permit for an activity such as the removal of a single family residence.
l. Under Minnesota law, the formation and internal decision-making process of
corporations and other legal entities is governed by state law and is not the subject of municipal
regulation. This means that the internal governance or decision-making process for a business
corporation, religious organization, school district or other legal entity is regulated by the
organization's Bylaws and the provisions of state statutes such as the Minnesota Business
Corporations Act, Minn. Stat. 302A, the Minnesota Nonprofit Corporations Act, Minn. Stat. 317 A,
the Religious Associations Statute, Minn. Stat. Chapter 315, and a number of other state statutes
regulating corporations and other legal entities. Minnesota cities do not establish internal
governance procedures for corporations and legal entities.
In regard to the specific issue of whether the City may condition issuance of a Demolition
Permit or Conditional Use Permit on the approval of a majority of the members, O\vners or
shareholders of a religious organization or other legal entity, it is my opinion that this would not be
a permissible requirement because state law may, in fact, allow the activity for which the Permit is
. being requested to be undertaken without majority approval. It is not lIDusual for a state statute and
the Bylaws adopted by a religious organization, corporation or other legal entity to allow the
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trustees. directors or offict;rs to proceed with an activity such as acquisition of real property or .
demolition of a structure \vithout obtaining majority approval for that specific activity from the
members, owners or shareholders. For example, Minn. Stat. 315.46 and 315.47 provide that a
religious association incorporated under Minnesota Statutes Chapter 315 may create a Board of
Trustees which "shall control the real property of the association". Therefore, it appears the duly-
elected Trustees of a Chapter 315 religious association could proceed with demolition of a structure
owned by the association without first obtaining approval from a majority of its members. If this
is allmved by state law. the City of Hopkins could not impose an additional requirement of maj ority
approval as a condition of issuing a Demulition Permit or Conditional Use Permit.
I t must also be noted that. in the case of ml institutional property owner such as an
independent school district, the decision-making process for activities such as control of rea]
propeliy and demolition of structures would be vested in the schoo] board. not the eligible voters
residing in the schoo] district. It clearly would not be practicable or permissible for the City to
impose a majority approval requirement applicable to all institutional propcliy owners in R-l
districts as such a requirement could not be imposed upon a schoo] district, for example.
I A municipality's authority to rcgu]ak land use activities derives from its power to
-.
adopt ordinances mld regulations to protect public health, safety and welfar~. Courts have generally
sustained municipal requirements and conditions for obtaining permits and approvals for land usc
activities as long as those requirements and conditions protect public health, safety and welfare.
However. if a condition imposed by a municipality as a requirement for obtaining an approval such .
as a Conditional Use PemIit does not bear "a substmltia] relationship to the public health, safety and
\ve]fme of the community". the Courts have j()Und such conditions to be arbitrary and capricious and
not ]eg<tlly pennissib]e as grounds for the denial of a Conditional Use Permit or other municipal
approval. C. R. Investments, Inc. v. Village of Shoreview. 304 N.W.2d 320 (Minn. 1981). Scott
County Lumber v. City of Shakopee. 417 N.W.2d 721 (Minn. App. 1988). I believe there is a
likelihood a Court would determine that a majority approval requirement for obtaining a Demolition
PeImit or Conditional l Tsc Permit does not bear a substantial relationship to the public health, safety
and \vcIfare and would, therefore. not be pt;nnissible.
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In my opinion, the City does have the authority to require that an applicant for a municipal
approv<tL such as a Demolition Permit. Conditional Use Pennit or Plat, demonstrate that the
applicant has the legal authority to bind the property owner to all conditions attached to the
municipal approval. This does not. however. mean that tht; City has the authority to establish the
manner in which that authority must he obtained. It clearly does serve the public health. safety and
welfare for the City to require evidence of eUl applicant's authority to bind the property owner before
a conditional approval is given. The City has a kgitimate interest in ascertaining that it is dealing
with the legally-authorized representative of the property owner so that all conditions attached to the
approval will be binding on tht; owner/applicant. This is a proper suhject matter for municipal
regulation. However. assuming the applicant demonstrates it has the legal authority of the property .
owner, the mmmer in which that authority was obtained or given would not he subject to municipal
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.
,
. regulation. As discussed in Paragraph No. I of this Memo, internal governance procedures for
religious organizations, corporations and other legal entities are not a proper subject for municipal
regulation.
I trust the information contained in this Memo addresses the issue raised at the March 9 work
seSSIOn. Please call me if you have any questions or wish to discuss the items covered by this
Memo.
JSS
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