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Over the next several months, the content of this newsletter will begin its transition to a blog. In the future, we will be providing updates from our practice on our North Star Land Use Blog. There, you will have access to expanded information about the world of real estate, land use and construction law throughout the Upper Midwest. And you will continue to see updates from our practice. Make sure to check out the blog and subscribe, which you can do by clicking the link above.
What Next, Now That Transportation Fees Have Been Ruled Illegal in Minnesota?
by Gary Van Cleve
The Minnesota Supreme Court’s ruling in Harstad v. City of Woodbury, that cities do not have authority to charge transportation fees for future road improvements, has answered a one big question for developers, but others remain. Can a city demand payment of transportation fees if the developer agreed to pay them before Harstad was decided? Is a transportation fees provision in a fully- executed city development contract still enforceable after Harstad under contract law? Can a developer that has paid transportation fees to a city force their refund?
Read More
Financial Disclosures Complicate Property Tax Appeals
by Tim Rye
When
a property tax appeal is filed on an income-producing property in
Minnesota, certain financial disclosures are required to be submitted to
the county before Aug. 1. The disclosures are required by a Minnesota
state statute sometimes referred to by the tax court as the disclosure
rule (and formerly known as the 60-day rule). Recently, Wal-Mart had two
cases dismissed because of failure by the petitioning taxpayer to
adhere strictly to the disclosure rule. The disclosure rule is meant to
provide information “useful to the appraisal process” so that counties
can conduct thorough and accurate assessments. However, in light of
recent decisions, is the application of the disclosure rule
accomplishing that goal?
Read More
Mind the Gaps
by James Sander
Are you minding the gaps in your construction buy/sell agreement? Article 2 of the Uniform Commercial Code (UCC), as adopted across the country, may be changing your contract risk exposure. Constructing a building involves thousands of physical parts and pieces. Each of them is “movable” when the builder purchases it. These parts and pieces are legally defined as “goods,” which puts them in the ambit of Article 2 of the UCC.
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News and Notes
Peter Coyle interviewed Minnesota United FC owner Bill McGuire about the Allianz Field construction project in St. Paul and plans for the surrounding Midway area at Bisnow’s “Mixed-Use & Entertainment CRE Development” event Sept. 12. The conversation touched on a variety of topics related to the project, including the mixed-use nature of the properties around the stadium, building heights and why McGuire decided to get involved in the stadium project.
Gary
Renneke, Paul
Linstroth, Dave
Hammargren and Peter
Coyle contributed the chapter on Minnesota real estate, construction, real
estate finance and tax law in the 2018 edition of the USA Regional Real Estate
guide, published by Chambers and Partners. Chambers Global Practice Guides are
prestigious, independent referral directories providing in-house counsel with
expert legal commentary on main practice areas in key jurisdictions around the
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Larkin Hoffman welcomes Sonali Garg to its real estate litigation team as an associate attorney. She graduated from Mitchell Hamline School of Law in 2018 after working at Larkin Hoffman as a summer associate throughout law school. Sonali will be sworn in this month.
The litigation team of Rob Stefonowicz, Gary Van Cleve, and Bryan Huntington secured a unanimous decision from the Minnesota Supreme Court affirming lower court rulings striking down a nearly $1.4 million fee that the City of Woodbury sought to charge Larkin Hoffman client Martin Harstad as a condition for approving his 183-unit residential development. The case has been watched closely in the state and across the country because the holding is likely to have an impact on the greater issue of housing affordability for potential home buyers.
Jim Sander and Sonali Garg presented on Minnesota mechanics lien law at the Regional Credit Conference of the North Central affiliate of the National Association of Credit Management.
Tamara O’Neill Moreland and Inga Schuchard were successful in obtaining a decision from the Hennepin County District Court declaring amendments to Minneapolis’ civil rights ordinance unconstitutional. Under the city’s amendments, a landlord would be deemed to have committed discrimination in real estate if the landlord declined to participate in the voluntary federal Section 8 housing choice voucher program, even if a landlord’s choice not to opt in was for legitimate business reasons. The amendment also included language under which a landlord would be deemed to have committed discrimination in real estate if the landlord declined to participate in any other public assistance program, even programs which have not yet been created. The court held that the amended ordinance violated landlords’ due process and equal protection rights under the Minnesota Constitution.
Larkin Hoffman is pleased to co-host the Third Annual Minnesota Surety Conference on October 24, 2018 with the Minnesota Surety Association. Jim Sander will present about design and performance specifications. Inga Schuchard will present on consideration of extraordinary warranties in performance bonds. Sonali Garg will also provide a surety law case update. Our guest speaker will be Jim Mack, head of the Travelers Home Office bond claim department, who will speak about the producer’s role in the claim process.
Jake Steen will serve as moderator for the upcoming seminar, “Twin Cities Multifamily Boom,” which will be held Oct. 31 at the Kimpton Grand Hotel’s Chain of Lakes Ballroom in Minneapolis. Jake will facilitate discussions on affordable housing, investment in multi-family developments and other topics affecting the Twin Cities real estate market. The seminar will be hosted by Bisnow, a commercial real estate news website and event company.
Dave Hammargren, Tamara O’Neill Moreland, Rob Stefonowicz, Jim Susag, and Gary Van Cleve were each selected for inclusion in the 2018 Minnesota Super Lawyers list. Tim Rye and Inga Schuchard were each selected as “Rising Stars.”
Dave Hammargren, Paul Meyer, Jim Susag, and Gary Van Cleve were each selected by their peers for inclusion in The Best Lawyers in America® list for 2019.
Larkin Hoffman launched its Employment and Labor Law Blog. Please subscribe to receive updates from Larkin Hoffman’s employment, labor and benefits practice group with insights on employment law for today’s employer.
Larkin Hoffman’s Appellate Advice and Advocay team secured a favorable ruling from the United States Supreme Court clarifying its client’s rights in Patent Office proceedings.
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Our Attorneys
Gary Van Cleve, chair
David Hammargren
Paul Meyer
Tamara O'Neill Moreland
Rob Stefonowicz
James Susag
James Sander
Timothy Rye
Bryan Huntington
Inga Schuchard, editor
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