On the east side of Shoreline Drive, a narrow road that cuts scenically along Lake Minnetonka, sits a sliver of land known as Outlot B, Dragonfly Hill. The 330-square foot piece of property is owned by the city of Orono and isn’t much to see, a steep incline of shrubs and small trees with patchy grass and scattered litter.
In the winter, with cars whipping by, the lake frozen and wind howling off the shore, it’s hard to understand how the water rights abutting this property have become a pitched legal battle drawing in Orono politicians, administrators, attorneys and private residents for more than seven years.
But in Minnesota, access to water — especially Lake Minnetonka — is always worth a fight.
Dan Gustafson, a real estate agent, has become a self-described expert on riparian rights — regarding lands that abut bodies of water. He says his purchase of these water rights in 2020 and a plan to install a dock with several boat slips has been undermined by a coterie of power players in Orono.
That group includes former Orono Mayor Denny Walsh, former Orono City Council Member Matt Johnson, Orono City Attorney Soren Mattick and Dr. David Feldshon, who also tried to buy the riparian rights with his wife, Dr. Archelle Georgiou Feldshon, a consultant and consumer advocate.
They all dispute the claims and the city of Orono and the Feldshons have prevailed twice in court against Gustafson.
After Gustafson’s dock plan received a first round of approval by the Lake Minnetonka Conservation District (LMCD) in 2023, he says, that group coalesced to successfully shut the plan down by questioning the legitimacy of his title.
Gustafson, through his company Lake Minnetonka Real Estate II, sued the city of Orono and the Feldshons, accusing them of a false claim of ownership to the property. The suit was dismissed in Hennepin County District Court by Judge Jamie Anderson, who determined Gustafson couldn’t claim ownership to the rights he purchased. That decision was upheld by the Minnesota Court of Appeals. Gustafson has now filed a petition to the Minnesota Supreme Court.