In re In re Annexation of Certain Real Prop. to the City of Proctor from Midway Twp.
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In re In re Annexation of Certain Real Prop. to the City of Proctor from Midway Twp.
Opinion of the Court
Appellants argue that the district court erred by vacating the chief administrative law judge's order approving the City of Proctor's annexation by ordinance. We reverse.
FACTS
In January 2013, respondents City of Duluth and Midway Township entered into an orderly annexation agreement (OA Agreement) and designated certain land in Midway as an Orderly Annexation Area. Midway abuts both Duluth and appellant City of Proctor. The OA Agreement divided the Orderly Annexation Area into three parcels identified as Parcel I, Parcel II, and Parcel III.
Julia Ann (Hovland) Savalas and George Hovland III own approximately 92 acres of real property (the property) located within Parcel II. In May 2014, the owners executed a petition requesting annexation by ordinance to Proctor. In August 2014, Proctor adopted an ordinance to annex the property. Duluth objected to the proposed annexation by ordinance on the grounds that the property is subject to the OA Agreement and was therefore not eligible for annexation by ordinance into Proctor. In October 2014, the chief administrative law judge (chief ALJ) issued an order annexing Parcel I into Duluth. Neither Duluth nor Midway has commenced proceedings to annex Parcel II or Parcel III.
In October 2016, the chief ALJ issued her findings of fact, conclusions of law, and order approving Proctor's annexation by ordinance. Duluth and Midway appealed to the district court, which vacated the chief ALJ's order and determined that once real property is subject to an orderly annexation agreement, that property cannot subsequently be annexed by ordinance. This appeal followed.
ISSUES
Did the district court err by concluding that once parties execute an orderly annexation agreement with respect to a designated area, nonparties cannot subsequently seek to annex real property within the designated area by ordinance?
ANALYSIS
Appellant Office of Administrative Hearings (OAH) and Proctor argue that the district court erred by concluding that Proctor could not annex the property by ordinance because the property was already subject to the OA Agreement between Duluth and Midway.
"The object of all statutory interpretation is to ascertain and effectuate the intention of the Legislature." Cocchiarella v. Driggs ,
If this court concludes that a statute is ambiguous, then we may consider the factors set forth in
(1) the occasion and necessity for the law; (2) the circumstances under which it was enacted; (3) the mischief to be remedied; (4) the object to be attained; (5) the former law, if any, including other laws upon the same or similar subjects; (6) the consequences of a particular interpretation; (7) the contemporaneous legislative history; and (8) legislative and administrative interpretations of the statute.
Under the annexation-by-agreement statute, one or more townships or municipalities may, through an agreement, designate a certain area as appropriate for annexation.
An orderly annexation agreement is a binding contract upon all parties to the agreement and is enforceable in the district court in the county in which the unincorporated property in question is located. The provisions of an orderly annexation agreement are not preempted by any provision of this chapter unless the agreement specifically provides so. If an orderly annexation agreement provides the exclusive procedures by which the unincorporated property identified in the agreement may be annexed to the municipality, the municipality shall not annex that property by any other procedure.
Under the annexation-by-ordinance statute, a municipal council may by ordinance declare land annexed to the municipality if
the land abuts the municipality and the area to be annexed is 120 acres or less, and the area to be annexed is not presently served by public wastewater facilities or public wastewater facilities are not otherwise available, and the municipality receives a petition for annexation from all the property owners of the land.
*463Except as provided for by an orderly annexation agreement, this clause may not be used to annex any property contiguous to any property either simultaneously proposed to be or previously annexed under this clause within the preceding 12 months if the property is or has been owned at any point during that period by the same owners and annexation would cumulatively exceed 120 acres.
Ambiguity
OAH and Proctor argue that the annexation-by-agreement statute is ambiguous as to whether an annexation agreement trumps an attempt to annex by ordinance. They assert that (1) subdivision 1(e) does not preclude a municipality from annexing part of a designated area by ordinance and (2) the "preemption" clause in subdivision 6 is ambiguous as to whether a valid annexation agreement is binding on nonparties.
Under section 414.0325, subdivision 1(c), an annexation agreement confers the chief ALJ with jurisdiction over annexations in designated areas. Subdivision 1(e) provides two possible mechanisms by which "an annexation of any part of the designated area may be initiated."
OAH and Proctor also argue that the district court erroneously read the "preemption" clause as barring nonparties from initiating annexation by ordinance in a designated area. The second sentence of subdivision 6 states that "[t]he provisions of an orderly annexation agreement are not preempted by any provision of this chapter unless the agreement specifically provides so."
The first sentence of subdivision 6 states that "[a]n orderly annexation agreement is a binding contract upon all parties to the agreement ...."
Under section 414.01, subdivision 1a(5) (2016), "joint resolutions for orderly annexation ... should be encouraged." However, that does not necessarily imply that these agreements are binding upon nonparties. Encouraging orderly annexation agreements is equally consistent with OAH and Proctor's reading of the annexation-by-agreement statute-once parties have entered into an agreement, they cannot circumvent the agreement by pursuing annexation by alternative means.
In 2002, the Minnesota House of Representatives Local Government and Metropolitan Affairs Committee discussed the bill that added the preemption language in section 414.0325, subdivision 6 (2004). The bill's author, Representative Howes, described it as follows: "What this bill does is an agreement between the city and the township, it basically makes it a binding contract and both parties have to adhere to that." Hearing on H.F. No. 1620 Before H. Comm. on Local Gov't & Metro. Affairs (Feb. 20, 2002). Representative Howes then introduced Kent Sulem from the Minnesota Association of Townships, who described the bill as follows:
[I]t is just clarifying that when [orderly annexation] agreements are entered into between a city and a township ... that agreement will be binding, that there won't be any loopholes that either side can use, that the two parties ... will honor their word as entered into in that orderly agreement.
In LaCrescent Twp. v. City of LaCrescent , the Township of LaCrescent and the City of LaCrescent entered into an orderly annexation agreement with respect to certain township property.
*465Reading the legislative committee testimony together with LaCrescent , we discern that the legislative intent behind section 414.0325, subdivision 6, was to prevent parties to an annexation agreement from later reneging on that agreement and annexing by ordinance land that was subject to the agreement. LaCrescent does not address attempts to annex by ordinance by nonparties to an annexation agreement, and the legislative history indicates that the legislature was concerned with ensuring that parties to annexation agreements could not later attempt to circumvent those agreements.
Furthermore, Duluth and Midway's reading of subdivision 6 would lead to absurd results. See Am. Fam. Ins. Grp. v. Schroedl ,
Applying the canons of statutory construction, we conclude that section 414.0325, subdivision 6, does not preclude a nonparty to an orderly annexation agreement from seeking to annex real property within the designated area by ordinance.
DECISION
Because section 414.0325 does not preclude nonparties to orderly annexation agreements from annexing land within designated areas by ordinance, we conclude that the district court erred by vacating the chief ALJ's order for annexation.
Reversed.
Proctor also argues that the district court correctly determined that it satisfied the statutory requirements for annexation by ordinance. The district court ruled in favor of Proctor, however, and neither Duluth nor Midway appealed this element of the district court's ruling. "The function of the court of appeals is limited to identifying errors and then correcting them." Sefkow v. Sefkow ,
We cite the most recent version of
Reference
- Full Case Name
- IN RE the Matter of the ANNEXATION OF CERTAIN REAL PROPERTY TO the CITY OF PROCTOR FROM MIDWAY TOWNSHIP
- Cited By
- 1 case
- Status
- Published