City of Saint Paul settles with Landlords in Fair Housing Act case

City of Saint Paul settles with Landlords in Fair Housing Act case

SAINT PAUL – The City of Saint Paul has entered into a settlement agreement in the Gallagher v. the City of St. Paul lawsuit with plaintiffs Thomas J. Gallagher and Joseph J. Collins, Sr., and their companies; Dadder’s Properties, LLC; Dadder’s Estates, LLC; Dadder’s Enterprises, LLC; Dadder’s Holdings, LLC.

The case was brought by current and former residential landlords who opposed the city's vigorous enforcement of its housing code. In 2012, the City of Saint Paul requested that the United States Supreme Court dismiss the City’s petition to hear the case, Magner vs. Gallagher, and the case was sent back to the trial court for further proceedings.     

Gallagher, Collins, and their companies are the only current Saint Paul landlords among the plaintiffs suing the City under the Fair Housing Act. They own approximately 300 rental units within the City. Gallagher and Collins have agreed to dismiss their claim against the City and have expressed a genuine desire to partner with the City in an effort to expand housing options with the city limits, foster communications and relationships between the city and its residential landlords, and strengthen their investment in the city.

“We welcome the opportunity to partner with Mr. Collins and Mr. Gallagher in an effort to encourage their long-term, positive investment in the city,” said City Council President Kathy Lantry who, along with Saint Paul City Attorney Sara Grewing, helped to negotiate the settlement.

Under the terms of the settlement, the City has agreed take certain steps to help foster and facilitate Mr. Collins and Mr. Gallagher’s desire to make further long-term investments in the City’s housing market. These steps include designating a board seat on the Business Review Council to be held by a residential landlord nominated by the Mayor and approved by the City Council. Mr. Collins will be the first person to hold this designated board seat. On [Date], Saint Paul Mayor Chris Coleman nominated Mr. Collins to a three-year term, to begin January 2015. His nomination was approved by the City Council on [Date].

The City has not settled with the remaining plaintiffs and fully expects a verdict in its favor should they proceed to trial.

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