AGO 85-14.

• Court: North Dakota

North Dakota Attorney General Opinions 1985. AGO 85-14. Office of the Attorney General State of North Dakota Opinion No. 85-14Date Issued: April 30, 1985Requested by: Vince H. Ficek Dickinson City Attorney--QUESTIONS PRESENTED-- Whether a city may contribute money to a private nonprofit corporation in order to assist the corporation in constructing a civic facility that the city will not own or control.--ATTORNEY GENERAL'S OPINION-- It is my opinion that a city may not contribute money to a private nonprofit corporation in order to assist the corporation in constructing a civic facility that the city will not own or control. --ANALYSIS-- The general rule governing municipal authority is that municipal corporations are agencies of the state and have only the powers expressly conferred on them by the Legislature or such as may be necessarily implied from the powers expressly granted. Megarry Bros. v. City of St. Thomas, 66 N.W.2d 704, 705 (N.D. 1954). In defining a city's power, the rule of strict construction applies and any doubt as to the existence or extent of the powers must be resolved against the city. Roeders v. City of Washburn, 298 N.W.2d 779, 782 (N.D. 1980). The North Dakota Constitution, Art. X, § 18, provides:

The state, any county or city may make internal improvements and may engage in any industry, enterprise or business, not prohibited by article XX of the constitution, but neither the state nor any political subdivision thereof shall otherwise loan or give its credit or make donations to or in aid of any individual, association or corporation except for reasonable support of the poorr, nor subscribe to or become the owner of capital stock in any association or corporation.

In construing Article X, § 18, the court has stated that:

[Article X, § 18] does not prohibit the making of loans or giving of credit or making donations in connection with a city's engaging in any industry, enterprise, or business except engaging in liquor traffic.

What it does prohibit is for a city 'otherwise' to make loans or give its credit or make donations. In other words, making loans or giving credit may be done in connection with the city's engaging in any permissible industry, enterprise, or business, but not otherwise. Gripentrog v. City of Wahpeton, 126 N.W.2d 230, 237-238 (N.D. 1964) (city's leasing of sugar

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