Judge rules for city in Uptown groundwater pumping case

A judge has ruled that the controversial pumping of groundwater from the underground parking area of an upscale Uptown apartment building into city sewers and a nearby lagoon violates Minneapolis ordinances and constitutes trespass.

Hennepin County District Judge Philip D. Bush ruled Wednesday in a lawsuit brought last winter by the city of Minneapolis against apartment owner Lake and Knox LLC. over its pumping into nearby sewers and waters of millions of gallons a year of groundwater that would otherwise seep into the building's lower garage. The 56-unit building at 1800 W. Lake St. stirred debate in 2009 over the appropriate height for buildings in the area.

Bush's order said he'll set a hearing within 30 days on the city's request that he issue an injunction banning the pumping into sewers and the lagoon between Lake Calhoun and Lake of the Isles.

He indicated he'll issue a separate order later on the city's claim that a civil penalty of $1,000 per day should be levied for the unpermitted discharge into the sewers. The city also claims more than $130,000 in expenses for responding to the issue, including installing winter piping to direct the water out of the lagoon and into Calhoun.

"We're extremely pleased," City Attorney Susan Segal said in reaction. "This has been a very frustrating and time-consuming problem for the city to deal with." Representatives of the building's ownership couldn't be reached for comment. The city's filings identified them as developers Nick Walton and Daniel Oberpriller, who brought in other investors.

Lake and Knox has also brought claims against BKV Group, RLK Inc. and Braun Intertec, which it said provided engineering or geotechnical services for the project. A separate jury trail would determine how to apportion liability among them.

Bush granted a motion for summary judgment brought by the city that argued that the pumping of groundwater constituted an unpermitted discharge of water into storm sewers that violates city ordinances. The city granted the developers a temporary permit to pump groundwater during construction of parking levels that were installed below the water table. But it argued that permit ended when construction did and that no permit for permanent pumping was obtained.

The city has portrayed the owners in court filings as proceeding with a two-level underground garage despite evidence that the lower level would sit below the area's water table.

The city has estimated in its arguments that the discharge amounts to 90 million gallons annually. That discharge into the lagoon has thinned the nearby ice in winter, endangering cross-country skiers and others, according to the Minneapolis Park and Recreation Board, which joined the city in the lawsuit. The city and Park Board allege that the drainage mars the lakes scenery and hinders maintenance of a sewer grit chamber intended to remove sediment and accompanying pollutants.

The city alleged that the developers were told repeatedly that they needed to apply for a permit to discharge into sewers after construction. "They knew exactly what they were doing," said Brian Rice, an attorney for the Park Board. "The sign is red, they know there's a stop sign, and they're driving through the stop sign at 30 miles per hour."

Dan McLaughlin, president of the East Isles Residents Association, said area residents want pumping ended. "We look forward to the final solution for the problem they created," he said.