Questions Raised About Use of Outdoor Heritage Funds in $60M Northwest Minnesota Projects as Federal Lawsuits Proceed

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ROSEAU COUNTY, Minn. —  More than 100 northwestern Minnesota landowners are calling for an immediate pause to state-backed habitat creation and water management projects totaling approximately $60 million, citing concerns that the projects may be advancing in violation of state law governing the use of Outdoor Heritage Fund (OHF) dollars. Additional appropriations under consideration could accelerate project implementation, increasing the urgency of legislative audit and review.

The projects, the Roseau Lake “Rehabilitation” and Roseau River “Restoration” projects, are being implemented by the Minnesota Department of Natural Resources (DNR) and Roseau River Watershed District (RRWD) and could impact roughly 12,600 acres of productive private farmland, according to the Minnesota Landowners Coalition and hydrologist testimony submitted to the Minnesota House Legacy Committee.

At issue is Minnesota Statutes § 97A.056, subd. 1, which prohibits the use of OHF funds to acquire property by eminent domain unless requested by the landowner. Landowners and their legal counsel argue that project activities — including soil excavation, water control structure construction, and project-related flooding — have already occurred on private property without easements, compensation, or landowner consent. A related legal dispute involving this activity resulted in a mediated settlement; landowner plaintiffs allege key terms remain unresolved.

A federal lawsuit involving approximately 40 landowner plaintiffs is currently pending, alleging several constitutional violations, including unlawful takings and violations of due process, equal protection, and just compensation rights under the Fifth and Fourteenth Amendments of the U.S. Constitution.

“Hydrologic analysis commissioned by landowners indicates these projects could result in permanent flooding of 12,600 acres of productive private farmland, outbuildings, and homes, without the consent of the families who own that land,” said Debby Stone, spokesperson for the Minnesota Landowners Coalition. “This land produces a variety of crops including soybeans, flax, wheat, and specialty grass seed that are integral to the local agricultural economy.”

Attorneys for the landowners also allege project engineers did not use the legally required pre-project baseline tied to historic drainage improvements, despite Minnesota Supreme Court precedent recognizing landowner rights based on those conditions.

Legislative Context and Urgency

The issue has drawn attention from state lawmakers. A Minnesota Senate committee recently voted unanimously to pause funding for the projects, while a House committee vote was split, leaving the issue unresolved.

“It is reasonable and fiscally necessary to question whether funding decisions should move forward while these legal issues are still being decided,” Minnesota Sen. Steve Green said.

Coalition members say similar violations of OHF funding restrictions may extend beyond Roseau County, suggesting broader implications for how funding programs are implemented across northwestern Minnesota.

The Minnesota Landowners Coalition is calling on state lawmakers to:

–       Pause additional OHF funding tied to the projects

–       Review compliance with statutory requirements governing land acquisition and consent

–       Allow pending federal litigation to proceed before advancing further project phases, construction activity, or funding

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