Abby Nadeau
Staff Writer

Duffy Development and Human Services Inc. are seeking $200,000 in damages from the city of Forest Lake, according to City Administrator Chip Robinson.

In a press conference on Thursday, March 9, called by Robinson, details were released on what was left to be discussed in the case.

ìA portion of the lawsuit is still being discussed,î Robinson said. ìDuffy and HSI are still seeking damages.î Those damages include project delays from the impact of the city councilís original denial.

Another portion of the lawsuit involves claims made by Duffy and HSI that the city violated the Open Meeting Law and that the denial of their requests had ìimproper motive and unlawful discrimination.î

Duffy Development and HSI sued the city after the city denied a subdivision and a conditional use permit for the affordable housing complex, Forest Ridge Apartments, in November of 2005. The city cited that deed covenants still existed on the former District Memorial Hospital land and therefore could not be subdivided.

They also had a concern about a CUP they had granted earlier to the Lakes International Language Academy that covered the entire grounds. Two weeks later, Duffy Development and HSI had brought four claims against the city.

Robin Wolpert, an attorney representing the city, said in a Feb. 6 meeting that ìthe first claim was that the CUP had been in the system so long that it exceeded required time limit and was entitled to automatic approvals.î

The second and third claims were that the city council violated the Open Meeting Law by attendance at a planning commission meeting and that the city denied the CUP for discriminatory reasons, ìwhich constitutes improper motive and unlawful discrimination.î The final claim was that ìthe city council did not have appropriate reasons for denial.î

Then in a Feb. 15 meeting, council members reversed their previous decision and voted to grant the subdivision and CUP requests for Duffy and HSI.

The apartment complex approved on Feb. 15 is now in process of being changed to a planned unit development for 43 townhome units. The revised Duffy-HSI plan is slated to come back to the council on Monday, March 27 for action.

ìThey (the cityís lawyers) laid out all the options,î Robinson said. ìThey did not make a recommendation. The CUP and subdivision were optional to approve.î

Since the city council reversed its decision, the claims about the CUP and subdivision are ìno longer in conflictî with the litigation, stated Robinson.

The city stated that ìbecause of the councilís actions, the lawsuit appears to be without purpose. It is the cityís hope and expectation that in light of the cityís expressed desire to work together to produce a premier development for the city, the developer will realize that there is no purpose served by the ongoing litigation.î If the lawsuit cannot be settled the case will go to trial.

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Forest Lake Times
P.O. Box 218
880 SW 15 St.
Forest Lake, MN 55025
651-464-4601
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