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03-05-91 CCM
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03-05-91 CCM
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Ornstein <br />ge 6 <br />In the present case, it is clear that Minn. Stat. S 327C.095 <br />es not involve actual physical invasion by the government. <br />However, it may not be as clear whether the statute serves an <br />arbitration or enterprise function. It could be argued that the <br />statute serves an arbitration function, in that it arbitrates <br />among the ways in which a landowner uses property. A court could <br />find that the monetary payments to homeowners, here, like the <br />monetary payments to pension plans in Connolly, readjust the <br />rights and burdens of economic life without serving a government <br />enterprise. On the other hand, as in Pratt, it could be argued <br />that the government is requiring a private party to shoulder a <br />burden more properly placed upon the government welfare _ <br />enterprise. <br />B. The Economic Impact of the Regulation. <br />The next factor in a taking analysis is the economic impact - <br />of the regulation upon the property. As explained above, <br />depending upon the character of the governmental action, a <br />different level of economic impact is necessary before the courts <br />will find that a taking has occurred. If a regulation serves an <br />arbitration function, a property owner will be entitled to <br />compensation only if the property is thereby denied of all <br />reasonable uses. McShane, 292 N.W.2d at 258, citing Penn <br />Central, 98 S. Ct. 2646. Where land use regulations serve an <br />enterprise function, ,[t]here must be compensation to land owners <br />whose property has suffered a substantial and measurable decline <br />in market value as a result of the regulations." McShane, 282 <br />N.W.2d at 258-59. <br />The standard of denial of all reasonable uses is a difficult <br />standard for a property owner to meet. Numerous uses have been <br />considered "reasonable" by the courts. Particularly where an <br />existing use may be continued, courts generally refuse to find <br />that a taking has occurred. Penn Central, 98 S. Ct. 2646. Where <br />a regulation creates a situation such that the property is not <br />suitable for any of the primary uses allowed, but secondary uses <br />remain which are not unreasonable, courts generally will find <br />that the owner has not proved denial of all reasonable uses. <br />Larson, 387 N.W.2d at 908. <br />It could be argued that the park owners have not been denied <br />any uses of their property by imposition of Minn. Stat. <br />S 327C.095. If, however, as a result of the statute, the park <br />owners are so burdened as to not be able to convert the property <br />to another use, there could be an argument made that they had <br />been denied all reasonable uses. On the other hand, that <br />
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