Short story:
The North Oaks City Council sent a letter to Google in January asking the company to remove the images and destroy the files or possibly be cited for violating the city's trespassing ordinance.
Google spokeswoman Elaine Filadelfo said the images of North Oaks were removed shortly afterward. She didn't know of any other city in the country that has made a similar request.
The City's roads are all private and Google didn't have permission to travel on them to take the pictures. Google responds the staffers probably didn't see the no trespassing signs. It seems Google is still working to train its crews where they can legally "shoot." Oh and the city is ok with aerial/satellite imagery as that's legal.
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Minneapolis/St. Paul Star Tribune