Opinion of the Court by Crothers, Justice.
CROTHERS, Justice.
[¶1] Erling "Curly" Haugland appeals from a summary judgment dismissing his action against the City of Bismarck for declaratory relief involving Bismarck's implementation of an urban renewal plan and use of tax increment financing to fund renewal projects in its renewal area. In
[¶2] Haugland sued Bismarck, alleging its adoption of an urban renewal plan and use of tax increment financing to fund renewal projects within its downtown renewal area violated the state and federal constitutions and North Dakota urban renewal law under N.D.C.C. ch. 40-58. After the district court initially granted Bismarck's motion for summary judgment, we held the statutory provisions authorizing tax increment financing were constitutional.
[¶3] On remand, the district court again granted Bismarck's motion for summary judgment, concluding Bismarck passed an appropriate resolution at a continued public hearing in November 1994 to modify its renewal plan after finding the modified renewal area consisted of slum or blighted areas. The court also determined Bismarck had pending authorized renewal projects within the renewal area in January 2011, including a parking ramp, a quiet rail zone, and the CORE Incentive Program.
[¶4] The district court decided the remanded issues by summary judgment, "which is a procedural device for promptly resolving a controversy on the merits without a trial if there are no disputed issues of material fact or inferences that can reasonably be drawn from undisputed facts, or if the only issues to be resolved are questions of law."
[¶5] Haugland argues Bismarck failed to establish as a matter of law that it complied with the procedural requirements of N.D.C.C. § 40-58-06 for substantially modifying its urban renewal plan in 1994. He claims Bismarck failed to establish it provided proper notice of a public hearing for the November 1994 modification of its renewal plan. He also claims Bismarck failed to establish it made a finding by official resolution that slum or blighted areas exist within the specific renewal area. He asserts that Bismarck must provide a complete copy of the governing body's official resolution under N.D.C.C. § 31-09-10(4) to establish the resolution passed, and that providing only the first page of the resolution and an affidavit expressing a city administrator's "belief" a full resolution was adopted was legally insufficient. Bismarck responds it passed an appropriate resolution in 1994 to modify its renewal plan and asserts it provided adequate documentation to establish adoption of the resolution even though it was able to locate only one of two pages of the official city resolution.
[¶6] Under N.D.C.C. § 40-58-05, a municipality may not exercise any of its urban renewal powers until its governing body adopts a resolution finding that "[o]ne or more slum or blighted areas or industrial or commercial properties exist in the municipality" and the "development, rehabilitation, conservation, or redevelopment, or a combination thereof, of the area or properties is necessary in the interest of the public economy, health, safety, morals, or welfare" of the municipality. Section 40-58-06, N.D.C.C., describes the procedure for preparing, adopting, and revising a "renewal plan." Under N.D.C.C. § 40-58-06(1), a municipality may not approve a "renewal plan" for a "renewal area" unless the municipality's governing body by resolution decides the area is a slum area, a blighted area, or consists of industrial or commercial property, and designates the area as appropriate for a "renewal project." A municipality's governing body shall give notice and hold a public hearing on a renewal plan or a substantial modification of a previously approved renewal plan. N.D.C.C. § 40-58-06(3). Following the hearing, the governing body may approve a renewal plan if it makes requisite findings under N.D.C.C. § 40-58-06(4). A renewal plan may be modified at any time, but any proposed modification that "substantially change[s]" a prior renewal plan is subject to the requirements of N.D.C.C. § 40-58-06. N.D.C.C. § 40-58-06(5). In
[¶7] In
2012 ND 123, ¶ 11, 818 N.W.2d 660.
[¶8] On that record, we remanded for the district court to resolve whether an appropriate resolution existed in 1994 to add the six city blocks to the renewal area:
Haugland, 2012 ND 123, ¶ 55, 818 N.W.2d 660.
[¶9] On remand, Bismarck provided additional documentation for the 1994 modification of its renewal plan, including a November 9, 1994, memorandum from its city administrator stating "On Tuesday, November 8, 1994, the Board of City Commissioners held a continuation of the Public Hearing on the modification of the Bismarck Urban Renewal Plan. Action by the Board was to approve the Plan as attached." Bismarck also provided the first page of a resolution stating the described area consisted of "slum and blighted areas." Bismarck represented that "[d]espite diligent inquiry, [it was] unable to locate the second page of the subject Resolution," but submitted an affidavit of its city administrator stating his "belief and recollection" that during the normal course of business "the Bismarck City Commission passed the subject Resolution and made the findings of the existence of slum and blighted areas within the renewal area during the November 8, 1994 Commission meeting when the 1994 modifications to Bismarck's Plan [were] approved."
[¶10] As we recognized in our prior decision, Bismarck considered the proposal to add the six blocks to the renewal area after notice and a public hearing in August 1994, but continued consideration of the matter until a November 1994, public hearing.
[¶11] Section 31-09-10(4), N.D.C.C., says a municipality's acts "may be proved" by "a copy of the official record of such acts, certified by the legal keeper thereof, or by a printed book purporting to be published by the authority of such corporation and to contain a record of such acts." However, that statute does not prescribe the exclusive method of establishing a municipality's actions.
[¶12] Bismarck provided documentary evidence indicating it held a continuation of a properly noticed public hearing on the modification of the renewal plan on November 8, 1994, which resulted in the addition of the six block area to the renewal area after Bismarck made findings that the renewal area consisted of slum and blighted areas. However, Bismark did not provide a complete copy of the resolution. Under N.D.C.C. § 31-11-03(15), there is a disputable presumption that an official duty has been performed regularly, which may be contradicted.
[¶13] The district court granted Bismarck summary judgment, meaning Haugland was entitled to all inferences favorable to him, including all inferences unfavorable to Bismarck, in relation to Bismarck's claim it cannot find the crucial page of its official public record.
[¶14] The city administrator stated his "belief and recollection" that during the normal course of business, "the Bismarck City Commission passed the subject Resolution[.]" But Bismarck has been unable to locate documentation proving this actually occurred, or that the resolution approved any or all of the property in the six square blocks at issue. This Court has recognized the failure of a party to produce evidence within its knowledge and control, which has an important bearing on disputed facts, can warrant an inference the evidence would be unfavorable.
[¶15] In granting summary judgment for Bismarck, the district court said Bismarck presented circumstantial evidence to establish it adopted a resolution to modify the renewal plan at its November 8, 1994 meeting. The court effectively weighed the evidence and drew inferences in favor of Bismarck. When reasonable competing inferences exist, however, the non-moving party in a summary judgment motion is entitled to the benefit of the permissible inferences and summary judgment is inappropriate:
Hamilton, 2012 ND 238, ¶ 13, 823 N.W.2d 754 (citation omitted). On appeal from a grant of summary judgment, we view the evidence in a light most favorable to the party against whom the summary judgment was granted, and give that party the benefit of all inferences that can reasonably be drawn therefrom.
[¶16] Haugland argues Bismarck failed to establish pending authorized renewal projects existed within the renewal area in January 2011, to support the continued diversion of property taxes from the normal property tax recipients to Bismarck's tax increment financing fund. Haugland claims N.D.C.C. ch. 40-58 creates a two-step process for the diversion of tax increment funds from the normal property tax recipients to a municipality for urban renewal projects: (1) the official adoption of a specific renewal plan and renewal project; and (2) a specific determination of the manner of funding the project either by tax increment financing or by tax breaks. He contends the quiet rail zone, the parking ramp and the CORE Incentive Program are not authorized projects because Bismarck did not establish it separately approved those projects, or that it separately approved tax increment financing for any of those projects. Bismarck responds the CORE Incentive Program, the parking ramp and the quiet rail zone were "authorized" by its March 9, 2010 renewal plan and were pending when the district court initially decided this case in January 2011.
[¶17] Our remand on this issue in
2012 ND 123, ¶¶ 62-6 4, 818 N.W.2d 660.
[¶18] The CORE Incentive Program, quiet rail zone, and parking ramp were specifically identified in Bismarck's March 9, 2010, "Official Urban Renewal Plan" under a heading for "proposed renewal actions." The March 2010 modified urban renewal plan said "[n]ew improvements will also embrace as much of a skyway system as financially possible, parking structures, and quiet rail improvements" and explicitly identified "Construction of a public parking ramp . . . Construction of Quiet Rail facilities at surface crossings within the Urban Renewal Plan area," and the CORE Incentive Program as "[s]pecific items involving City acquisition and construction within the Revised Urban Renewal Area."
[¶19] A "development or renewal plan" means "a plan for a development or renewal project" which "[i]s sufficiently complete to indicate any land acquisition, development, demolition and removal of structures, redevelopment, improvements, or rehabilitation as may be proposed to be carried out in the development or renewal area." N.D.C.C. § 40-58-01.1(8)(b). Although Haugland claims the "proposed renewal actions" in the renewal plan were a "wish list," Bismarck's March 9, 2010, modified official urban renewal plan explicitly identified the parking ramp, the quiet rail zone, and the CORE Incentive Program as projects "proposed to be carried out" within the meaning of a "renewal plan" under N.D.C.C. § 40-58-01.1(8)(b). The exact parameters of those projects were not yet identified in Bismarck's modified renewal plan, but the identification of those specific renewal actions in the renewal plan was "sufficiently complete" to authorize those projects.
[¶20] Haugland reads the urban renewal law too narrowly when he claims Bismarck was required to separately authorize a specific project and use of the tax increment funds for the particular project for the project to be authorized. "At any time after" Bismarck approved the March 2010 modified renewal plan, it was entitled to request the county auditor and treasurer to compute and remit tax increments resulting from the renewal of the area in accordance with the plan and any modifications. N.D.C.C. § 40-58-20(1). That statutory language authorized Bismarck to have tax increment funds diverted from the normal property tax recipients after Bismarck approved the renewal plan and Bismarck was authorized to continue to have tax increment funds diverted until it determined the cost of the renewal area was reimbursed and fully paid.
[¶21] Bismarck presented documentary evidence on remand to establish as a matter of law that the quiet rail zone, the parking ramp and the CORE Incentive Program were authorized projects under the March 2010 modified renewal plan, which had not been terminated in January 2011 and which authorized ongoing diversion of tax increment funds on an area wide approach under N.D.C.C. § 40-58-20(1). Bismarck established it was pursuing the quiet rail zone and parking ramp projects in January 2011, which were pending authorized projects under the March 2010 renewal plan. Bismarck's evidence established that in January 2011, it had not completed everything in the March 2010 plan it proposed to complete, nor had it had diverted enough money to pay for all projects identified in its renewal plan. The March 2010 renewal plan said the cost of completion of the renewal area contemplated use of tax increment funds, and this Court's decision construed the urban renewal statutes to permit an area wide approach for renewal projects.
[¶22] We affirm in part, reverse in part, and remand for proceedings consistent with this opinion.
[¶23] Daniel J. Crothers, Mary Muehlen Maring, S.J. Dale V. Sandstrom, William W. McLees, D.J. Gerald W. VandeWalle, C.J.
[¶24] The Honorable William W. McLees, D.J., sitting in place of Kapsner, J., disqualified.
[¶25] The Honorable Lisa Fair McEvers was not a member of the Court when this case was heard and did not participate in this decision. Surrogate Judge Mary Muehlen Maring, sitting.
[¶26] I agree that because this case is here on summary judgment and Haugland was entitled to all inferences favorable to him, including all inferences unfavorable to the City, in relation to the City's claim it cannot find the crucial page of its official public record, summary judgment was not appropriate. The missing page would disclose whether the six square blocks—in whole or in part—were properly added to the renewal area in 1994.
[¶27] I write separately to note that decisions in other states are consistent with the result reached by our Court here and offer additional insight.
[¶28] When a document is lost or unaccounted for and a party is not at fault for the loss, a fact-finder should draw no unfavorable inference. Nevertheless, the question of fault is a question for the fact-finder:
[¶29] In some cases, there is clearly an innocent explanation for missing documents. "For example, where the evidence is positive that the hospital had been destroyed by fire, such circumstance would adequately account for the loss of the original medical record without fault attributable to the hospital, and there would be no reason for the jury to be instructed on a presumption or inference arising from the loss."
[¶30] Relative to a missing corporate document, a Minnesota court held similarly:
[¶31] The city administrator in this case stated he believes that during the normal course of business, "the Bismarck City Commission passed the subject Resolution[.]" Nevertheless, Bismarck says it is unable to locate documentation proving this actually occurred. Summary judgment is inappropriate when one can draw reasonable inferences that support the positions of both sides in a controversy and a fact-finder could draw negative inferences from the absence of documentation or records in this case.
[¶32] I agree we must reverse the district court's conclusion that Bismarck established an appropriate resolution to add the six city blocks to the renewal area.
[¶33] Dale V. Sandstrom.