16b. Moon Valley Litigation /6 .6
C I TY OF
_____
CHANHASSEN
. „ .
'•* 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937-1900 • FAX (612) 937-5739
Action by City Ad"inistrator
MEMORANDUM yJR�
Endorsed �.-
TO: Don Ashworth, City Manager Ps, ;t
FROM: Paul Krauss, Planning Director gt Date SubrrItiLd to Cc Mission
DATE: February 8, 1990
Detc Sol:zr:'sJ to Comil
SUBJ: Moon Valley Aggregate, Inc. , Threatened Litigation -Ia'-7 a •
Staff has received a letter from Michael Dwyer, the attorney for
Moon Valley Aggregate, Inc. In the letter Mr. Dwyer threatens
the City with an $800, 000 law suit due to the action that was
taken to direct the City Attorney to take action to prohibit
further removal of clay from the site. The letter further states
that by way of offering a compromise, that the law suit would not
be filed if the City allows the clay to be removed and does not
institute any further ordinances regulating Moon Valley' s
operation.
When staff and the City Attorney reported to the City Council
regarding Moon Valley, we indicated that any of the alternatives
that were available for pursuing this issue would likely result
in threats of litigation. A copy of this letter has been for-
warded to the City Attorney. It should be noted that Mr. Dwyer
has contacted neither myself nor Roger Knutson directly regarding
this matter. Since litigation against the City has been
threatened, we believe it would be advisable for the City
Attorney to speak with the City Council privately regarding this
matter.
Staff is continuing to work with the City Attorney to prepare an
ordianance regulating mining and excavation as per the direction
of the City Council.
I
FREDERICK L.THORSON MACKALL , C R O U N S E & MOORE MICHAEL S.FROST
WINSTON E.MUNSON
CLAY R.MOORE
DAVID J.DUDDLESTON
LAW OFFICES THOMAS J.LALLIER
CONNOR F SCHMID JOHN R.GREEN
LORENS 0 BRYNESTAD SUSAN M.SWIFT
SIDNEY KAPLAN 1600 T C F TOWER SHEILA A.ENGELMEIER
WOODBURV M.ANDREWS NED J.CARROLL
GEORGE R.A.JOHNSON DUANE G.JOHNSON
121 SOUTH EIGHTH STREET
ANDREW R CLARK DEAN L.RUSSET
J.MICHAEL COLLOTON MICHAEL C.GLOVER
FRANK A.DVORAK MINNEAPOLIS, MINNESOTA 55402 JEFFREY L.SHLOSBERG
ROBERT D.GIS VOLD ANTHONY C.BRANCH
MARVIN C.INGBER AMY J.JOHNSON
H.RICHARD KORSH TELEPHONE 612.333-1341 SHERYL L.GOETZ INGER
TIMOTHY D.MORATZKA BRADLEY J.SCHMIDT
I MARTIN V.AYDELOTT FACSIMILE 333-6173 D.CLAY TAYLOR
SHANE H.ANDERSON DAVID R.STRAND
GLENN R.DRURY
STEVEN B.SCHMIDT
ROBERT S.LEE OF COUNSEL
JAMES T.SWENSON
I ERIC O.MADSON FLOYD E.NELSON
JOHN C.UTLEY
ARLIN B.WAELTI VAL M HIGGINS
STEPHEN F GRINNELL February 6, 1 990 JAMES B.HANNAH
STEPHEN P.KELLEY
MICHAEL J.DWYER HENRY C.MACKALL (1885-1979)
TIMOTHY M.BARNETT ROBERT M.CROUNSE(1893-1974)
IKARL K.HEINZER LING PERRY R.MOORE 11694-1969)
I Mr. Paul Krauss
City Planning Director ri`��!tl:..0
City of Chanhassen FEB 0 71990
I P. 0. Box 147
Chanhassen, Minnesota 55317 CITY_OFCHANHASSEN
Re: Moon Valley Aggregate Inc.
Dear Mr. Krauss:
I This law firm represents the interests of Moon Valley. We
have been asked to notify the City of Chanhassen of Moon Valley' s
intent to commence an action against the City for its arbitary
I and confiscatory conduct relating to Moon Valley's operations.
However, we wish to explore a compromise resolution prior to
engaging in the extensive litigation which would be necessary to
I protect Moon Valley's rights and recover its money damages.
The City of Chanhassen has taken steps, by way of its
resolution at the hearing before the City Council on January 22,
I 1990, to prohibit the clay extraction from the Moon Valley
operation. The City is also apparently considering passing
ordinances directly to the detriment of the Moon Valley
Ioperation.
Moon Valley has operated continuously as a sand, gravel and
clay extraction facility for several years. Its operation was
I legal and in existence at the time Chanhassen first passed its
zoning ordinances in 1972. Moon Valley was purchased from Walter
Griepentrag in 1986 by Thomas and Beatrice Zwiers. Its operation
I has been continuous since that time. Both the Zwiers and
Griepentrags have removed clay deposits from Moon Valley since
its investment. Therefore, the clay extraction at issue is a
I continuation of the nonconforming use; Moon Valley has excavated
clay for years. This is not an expansion or enlargement
prohibited by City Code, Division 4, Section 20-71 .
1
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t
IMACKALL, CROUNSE 8. MOORE
I Mr. Paul Krauss
February 6, 1990
Page 3
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from the City, we will have no alternative but to proceed with
I litigation, seeking damages of at least $800,000 plus injunctive
relief.
IThank you.
Since ely,
I .` 41
I Michael J. Dwyer
MJD/mj va
1 cc: Moon Valley Aggregate Inc.
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