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284 Minn. 552 NORTH WESTERN REPORTER, 2d SERIES FACTS In 1949, Mildred Collins and her husband William T. Collins 1 purchased a portion of the property involved in this action. They built their home on the property and also used it as a trailer park, which they operated under the name of "Collins Mobile Home Park." The property consists of 13.57 acres locat- ed along Interstate 494, at the intersection of 78th Street and Chicago Avenue. Prior to 1958, the property was zoned C-A (commer- cial). In June 1958, the property was grant- ed a pennit to allow its continued use as a "transient trailer camp." Later that year, the property was rezoned to B-2 (retail busi- ness district). In March 1963, the City coun- cil rezoned the property from B-2 to FD-2 (freeway development II). The Collinses did not oppose this rezoning, and Collins Park became a non-conforming use. While Collins Park operated debt-free for many years, it began to lose money in the late 1980's. Arcadia claims that the 1963 rezoning caused higher real estate taxes to be imposed on its property. Arcadia further claims that the rezoning and increased taxes were part of a clear policy by the City to eliminate Collins Park so that the property could be put to a higher real estate tax generating use. Arcadia decided to sell the property and began marketing it for $6.1 million in June 1988. In late 1989, the City council considered the adoption of an ordinance to require mo- bile home park owners to pay certain reloca- tion costs to park residents when a park closes. In 1987, the Minnesota legislature enacted a statute allowing municipalities to \ 1. William Collins died in 1984. Since then, the property has been owned by Mildred Collins. William T. Collins OTIP Trust, and Arcadia De- velopment. 2. The legislative history of the 1987 enabling statute discusses the unique relationship between mobile home residents and park owners. Many mobile home owners are persons of low to mod- erate income who have made substantial invest- ments, not only in the purchase of their homes, but also in landscaping and other improvements. These investments in turn benefit the park own- er, by making the park an attractive place by adding to its overall value. adopt this type of an ordinance. Mum.Stat, } ~ 327C.095, subds. 1-5 ~1988) (~987 Minn. \ Laws ch. 179, ~ 10). This enabling statute ~ was inspired by the problems and financial'. hardships caused by the 1986 closing of an- .': other mobile home park in the City, Lynda1e I Lodge.:! The City discussed the proposed ordinance at four separate council meetings in Septem_ ber and October 1989. Arcadia and its coun- sel strongly opposed the ordinance at each meeting. The ordinance nevertheless Was passed and became effective on December 15, 1989. The ordinance's official purpose is stated as follows: In view of the peculiar nature and prob- lems presented by the closure or conver- sion of manufactured home parks, the City Council finds that the public health, safety and general welfare will be promoted by requiring compensation to displaced resi- dents of such parks. The purpose of this Article is to require park owners to pay displaced residents reasonable relocation costs and purchasers of manufactured home . parks to pay additional compensa- tion, pursuant to the authority granted under Minnesota Statutes, Section 327C.095. Bloomington, Minn. City Ord 89-57 (codified at Bloomington, Minn. City Code Art. VI, 15.69). The ordinance generally requires a park owner to pay a displaced resident the reasonable cost of relocating a mobile home to another park located within a 25-mile radius of the park being closed. If a resi- dent cannot relocate, the resident may ten- der title to the purchaser of the park and Mobile homes are rarely moved once placed in a park. given the high cost and difficulty of relocation. When a mobile home owner wishes to move. the mobile home is usually sold in place and the purchaser continues to rent the pad on which thP. home is located. When a park closes. however. the sale value and the ability to sell a mobile home decrease dramatically. Thus. resi- dents stand to lose all or most of the value in their homes when a park owner chooses to sell . park property for a different and likely more profitable use. 1j; '~ ~. 'I'.." ,. f. ~':f 1'._ i;~ !.;E;i.: .-.~ ~. ~: ~ I :if; '- ~. :~~: .~ :;; .~. :0"' \.. -.. J