Legal Memorandum: Manufactured Home Park License Renewal

Issue: What discretion does the Department of Health have over renewal of a license to operate a manufactured home park?

“Administrative agencies and other licensing bodies have generally established a renewal process which results in license renewal as a matter of course.  This is a recognition by the reviewing body that parties who invest substantial amounts of resources in preparing facilities for operation are entitled to a reasonable expectation of the continuing receipt of the benefit conferred by a license.”  Tamarac Inn, Inc. v. City of Long Lake, 310 N.W.2d 474 (Minn. 1981).  However, licensing authorities still have broad discretion in passing on the merits of license applications.  Country Liquors, Inc. v. City Council of Minneapolis, 264 N.W.2d 821 (Minn. 1978).  When exercising this discretion, however, the licensing body must not make arbitrary or capricious decisions, and “‘[c]ourts will interfere to prevent an abuse of discretionary power; and will grant relief from unreasonable, arbitrary, capricious, or fraudulent action.”  Wajda v. City of Minneapolis, 246 N.W.2d 455 (Minn. 1976).

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