DocketNumber: 40161
Citation Numbers: 152 N.W.2d 472
Judges: Rogosheske, Peterson
Filed Date: 7/28/1967
Status: Precedential
Modified Date: 10/19/2024
Relators submitted an application to the State Commerce Commission requesting a certificate authorizing the proposed Burnsville State Bank to transact business in the village of Burnsville. Several banks in the area where the proposed bank would be located opposed the issuance of this certificate. After a full hearing extending over a period of 5 days, the application was denied upon a finding that the applicants, as required by Minn. St. 45.07, “failed to establish that there is a reasonable public demand for the proposed bank.”
This court has repeatedly endorsed an early statement as to what is comprehended by the words “reasonable public demand.” In State ex rel. Dybdal v. State Securities Comm. 145 Minn. 221, 224, 176 N. W. 759, 760, it was stated:
“It is difficult to give to the words ‘reasonable public demand’ a clearer meaning than they carry without definition. They do not necessarily imply a public outcry or agitation for additional banking facilities. They db not necessarily negative the existence of adequate banking accommodations. They suppose upon the part of the community a desire of a char
In State ex rel. Duluth Clearing House Assn. v. Dept. of Commerce, 245 Minn. 529, 533, 73 N. W. (2d) 790, 794, it was emphasized:
“* * * We believe that the term used by the legislature must be given a meaning that makes it possible to carry out the manifest object of the statute. The requirements of the statute are intended for the protection of the public.”
Thus, in determining whether a “reasonable public demand” is established in any case, it is required that these words be given a meaning which will promote the legitimate interest of the community as a whole in having a sound banking structure, reasonably competitive and fully adequate for the needs of the community. In making this determination, the following factors are among those that should be considered: (1) Number of banks already serving the area
Burnsville was incorporated as a village in 1964. Its population rose from about 2,700 in 1960 to about 10,500 at the time of the hearing. This rate of growth is likely to decrease as property taxes have recently been greatly increased. Less than 20 percent of its area is presently developed. It is almost exclusively a residential area, populated by persons who work in the Twin Cities. There has been virtually no industrial development outside of a huge Northern States Power Company plant, which accounts for about 50 percent of the assessed valuation in Burns-ville. There has been relatively little commercial development, and what there is has been generally on a very small scale.
There is no bank physically located within the village of Burnsville, but there are at least five within a relatively short distance of its borders. The services provided by these banks are adequate for the needs of the residents of Burnsville. Moreover, its residents have access to the numerous banks in the Twin Cities, where they work. Two banks recently established about 3 miles from the site of the proposed bank offer the
The foregoing facts, in conjunction with the opinions expressed by respondents’ expert witnesses that there was no reasonable public demand for a new bank in Burnsville, provided ample evidence to support the commission’s finding and was not overborne by the evidence to the contrary submitted by applicants. The fact a mail poll made on applicants’ behalf of 1,010 residents of Burnsville indicated 271 would use the proposed bank, 265 would not, 15 were undecided, and 459 did not reply, was merely one factor to be considered by the commission.
Judged by the test of reasonableness, we hold that there is substantial evidence in this record to support the commission’s determination that applicants failed to prove a reasonable public demand in the Burnsville area at the time of the hearing to justify establishing the proposed bank.
Affirmed.
Minn. St. 45.07 requires the applicants to establish that (1) they are of
See, 1 Dunnell, Dig. (3 ed.) § 397b.
The relevant area is one determined primarily by economic considerations and is not necessarily a geographic or political unit. See, e. g., Application of Howard Sav. Inst. of Newark, 32 N. J. 29, 159 A. (2d) 113.
See, In re Application of Gustafson, 270 Minn. 348, 133 N. W. (2d) 843; In re Application of Burrill, 262 Minn. 270, 114 N. W. (2d) 688; State ex rel. Duluth Clearing House Assn. v. Dept. of Commerce, 245 Minn. 529,
The commission in this case merely specified in its conclusion that there was no reasonable public demand, without either indicating its reasons therefor or making any findings of specific facts to support it. This practice not only makes our review of the decision more difficult, but appears contrary to the requirements of Minn. St. 15.0422.