Appellate court's rule stands as state's top court declines appeal

In April, the Minnesota Supreme Court declined to hear the city of Minneapolis's appeal of its 2040 Comprehensive Plan.

With the Court of Appeals ruling, the city of Minneapolis must stop the implementation of the 2040 plan until it complies with the Minnesota Environmental Rights Act.

"The decision of the Minnesota Supreme Court to not review the decision of the lower courts means that developers will have one more level of regulatory uncertainty when a needed comprehensive plan amendment is considered for adoption by a city," said Peter Coyle, a land use attorney with Larkin Hoffman. "Environmental advocates can now use the Minnesota Environmental Rights Act for a whole new purpose — to stop or delay good projects, which may mean that needed housing projects will be substantially delayed or not pursued at all."

The topic of environmental review has garnered more attention recently. In California, lawmakers have identified these reviews, and the resulting litigation, as a significant hurdle to the production of new housing. Project applicants will sometimes be sued, delaying or stopping projects under the pretext of environmental protection.

In Minnesota, lawmakers have begun to examine ways to prevent these reviews from being used to stop the production of needed housing. The Legalize Affordable Housing Act, which was heard this past session, would have ensured that comprehensive plan-compliant projects.

afford to buy or rent an entire house,” said Hanson. “If these amendments pass, it will finally be legal to produce less-expensive housing options in every neighborhood – to retrofit a large single-family house into two or three dwellings, to build a fourplex or a cluster of little cottages on an empty lot or to add an accessory dwelling unit to a large backyard or side yard."

The Center for Economic Inclusion also supports the move.

"We believe the legalization of right-sized housing is an important step toward building the homes communities of color need," said

Isaac Russell, director of public policy at the Center for Economic Inclusion.

As for Bloomington, at least one local official hopes the city's reforms can be a template for statewide action.

“The city’s approach was simple: bring back the homes that built Bloomington,” said Shawn Nelson, city councilmember and remodeler. “These homes – with less parking requirements, no square foot minimums, on smaller lots – bring us closer to ensuring Bloomington will continue to grow and make homeownership more accessible to a greater number of residents.”