The Minnesota Supreme Court denied, on Sept. 28, a petition for review of Shorewood’s lawsuit against Deephaven, Excelsior, Greenwood and Tonka Bay regarding the Southshore Center.

The cities have been involved in litigation since September 2015 regarding each of their interests in the Southshore Center. The cities of Deephaven, Excelsior, Greenwood and Tonka Bay each passed resolutions approving the sale of the Southshore Community Center to Shorewood in late 2015 to early 2016.

Each of the cities entered into a cooperative agreement on March 4, 1996, for the purposes of creating a community center to serve residents and specifically senior citizens in the five cities.

The cooperative agreement provided the amounts that each city would contribute to fund the project and that Shorewood would act as a financial manager of the property and oversee construction.

According to the agreement, Deephaven contributed 22.45 percent, Excelsior 14.6 percent, Greenwood 3.95 percent, Tonka Bay nine percent and Shorewood 50 percent of the center. The five cities contributed a total of $622,000 to build the center.

In 1996, the cities agreed to enter into a 25-year lease agreement with the non-profit Friends of the South Lake Minnetonka Senior Community Center, that would own and operate the center. In 2008, the non-profit defaulted on the lease. Shorewood signed a lease in 2009 to take over operations and maintenance of the property.

The City of Shorewood will be the sole owner of the property once the city pays Deephaven, Excelsior, Greenwood and Tonka Bay each their percentage in the original agreement.

In the lawsuit, Shorewood contests the amount the city should pay the other cities, arguing that the sale percentages in the original agreement were higher than the building is currently worth.

On May 4, Judge James Moore filed an order granting motion for summary judgment to the defendant cities, citing that Shorewood needed to follow the original agreement.

On June 22, Shorewood filed a notice of appeal to the State Court of Appeals. On June 24, the Court of Appeals filed a document questioning whether Shorewood’s notice of appeal was filed on a timely bases, noting the city had 30 days to file. Shorewood officials believed the time-frame to be 60 days.

On Aug. 18, Shorewood filed a petition for review of the Court of Appeals’ decision to the State Supreme Court.

Contact Paige Kieffer at paige.kieffer@ecm-inc.com

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