2007-08-28 Supplemental Order regarding EstoppelAUG-23-2007 THU 09;13 AM FAX E P, 02
STATE OF MINNESOTA DISTRICT COURT
COUNTY OF WRIGHT TENTH JUDICIAL DISTRICT
CASE TYPE: Declaratory Judgment/Breach of Contract
Court File No. 86-CV-06-2998
Gold Key Development, Inc., a Minnesota corporation,
Plaintiff,
VS.
City of Albertville,
Defendant/Third Party Plaintiff,
VS.
Short Elliott Hendrickson, Inc.,
Third Party Defendant.
T/C Homes, uic., a Minnesota corporation,
Plaintiff,
VS.
Gold Key Development, Inc., a Minnesota corporation
Defendant/Third Party Plaintiff,
VS.
Hedlund Engineering,
Third Party Defendant,
vs.
City of Albertville,
Defendant/Third Party Plaintiff,
vs.
Short Elliott Hendrickson, Inc.
Third Party Defendant.
Court File No. 86-06-CV-4997
SUPPLEMENTAL
ORDER GRANTING
GOLD KEYS ESTOPPEL
MOTION
AUG-23-2007 THU 09:13 AM FAX NO. P. 03
The above -entitled matter came on for hearing on the 15th day of May, 2007 before The
Honorable Stephen M. Halsey, Judge of District Court, pursuant to Gold Key Development Inc's
("Gold Key") motion for partial summary Judgment and an estoppel order. On August 7, 2007,
the Court issued Findings of Fact, Conclusions of Law, Order and Memorandum granting Gold
Key's motion for partial summary judgment and granting Gold Key's estoppel motion,
indicating a supplemental order regarding the estoppel issue would follow.
Cindi S. Matt, Esq. appeared on behalf of Gold Key Development, Inc. Jason
Kuboushek, Esq. appeared on behalf of the City of Albertville ("City"). John Maikert, Esq,
appeared on behalf of Short Elliott Hendrickson, Inc. Robert Kettering, Jr., Esq. and Anton J.
van der Merwe, Esq. appeared on behalf of Hedlund Engineering. Stephen Yoch, Esq. appeared
on behalf of T/C Homes, Inc.
Based upon the files, submissions of the parties and arguments of council, the Court
hereby makes the following:
TTNDINGS OF FACT AND CONCLUSIONS OF LAW
THE COURT HEREBY FINDS AND CONCLUDES:
1) As a result of the City's actions, Gold Key has suffered damages, in an amount which
will be determined at trial.
2) If the moratorium imposed by the City is not lifted, Gold Key will continue to suffer
significant financial damage.
3) The equities weigh in favor of granting Gold Key's estoppel motion.
q) The Court's Findings of Fact, Conclusions of Law, Order and Memorandum dated
August 7, 2007 are incorporated herein.
5) Gold Key did not breach the Development Agreement.
0)
AUG-23-2007 THU 09:13 AM FAX NO, P, 04
6) The City breached the Development Agreement,
7) Gold Key justifiably and in good faith relied upon the actions of the City in approving the
Plat of Prairie Run (including the grading and drainage plans).
8) Gold Key incurred extensive obligations, expenses, physical activity and investment, in
substantially completing development of Prairie Run in reliance upon the City's approval of the
Plat of Prairie Run.
9) The obligations made, and expenses incurred, by Gold Key are significant, are unique to
the Prairie Run Development and are not otherwise usable.
lo) Gold Key has incurred such extensive obligations and expenses that it has vested rights
which preclude the City from declaring a moratorium on building in Prairie Run.
11) Gold Key has incurred such extensive obligations, investments and expenses, in
substantially completing Prairie Run that it should be able to reasonably rely upon the final plat
approval under Minn. Stat. §462.358.
12) It would be highly inequitable and unjust to allow the City to refuse to issue certificates
of occupancy and building permits in Prairie Run, based upon "new" numbers that the City has
determined months after the Plat was approved, and when Gold Key did not breach the
Development Agreement and instead developed Prairie Run in accordance with the Plat of
Prairie Run that was approved by the City.
13) The public interest weights in favor of completing the 33 acre development, rather than
allowing Prairie Run to remain only partially developed.
14) justice and equity weigh in favor of Gold Key and require this Court to issue an estoppel
order, lifting the City's moratorium on development in Prairie Run.
ORDER
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AUG-23-2007 THU 09:14 AM FAX NO, P. 05
IT IS) IEREBY ORDERED:
L That the City of Albertville is estopped from enforcing its moratorium on building
permits and certificates of occupancy for Prairie Run.
2. That the City of Albertville shall immediately issue building permits and certificates
of occupancy, upon proper application therefor, for the lots in Prairie Run.
LET 7UDGMENT BE ENTERED ACCORDINGLY.
Dated: 207
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