Boatworks, LLC v. City of Alameda
This text of 247 Cal. Rptr. 3d 159 (Boatworks, LLC v. City of Alameda) is published on Counsel Stack Legal Research, covering California Court of Appeal, 5th District primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
TUCHER, J.
*294The Mitigation Fee Act ( Gov. Code, § 66000 et seq. )1 authorizes local agencies to impose fees on a development project in order to defray the cost of public facilities needed to serve the growth caused by the project, as long as the fees are reasonably related to the burden caused by the development. ( §§ 66000, subd. (b), 66001 ; see Ehrlich v. City of Culver City (1996)
*295Shapell Industries, Inc. v. Governing Board (1991)
*164In 2014, the City of Alameda adopted an ordinance establishing fees it would impose as a condition for approving future development. Boatworks brought this facial challenge to the ordinance, alleging that the proposed fees for park facilities lack a reasonable relationship to the burden of future development and hence violate the Mitigation Fee Act.2 The trial court concluded the fees are excessive and constitute invalid exactions in three respects: by imposing on new residents the purported cost of acquiring land for parks, although the City does not need to buy new parkland; by including in its inventory of current parks two parks that were not yet open; and by categorizing certain areas as parks rather than (less expensive) open space. The court rejected the remainder of Boatworks's specific challenges. It ordered the City to excise and vacate the portions of the ordinance authorizing development impact fees for parks and recreation.
Both the City and Boatworks have appealed from the judgment. The City has also appealed a post-judgment order awarding attorney fees. We have consolidated the two appeals for purposes of decision. We conclude the trial court erred only in two respects: in ruling the City could not treat certain areas as parks, and in the form of the remedy it imposed.
I. BACKGROUND
The City of Alameda includes land at Alameda Point formerly owned by the United States Navy. After the Alameda Naval Air Station closed in 1997, the Navy transferred the majority of the property to the City at no cost for civilian use. The City plans to develop Alameda Point with residential units, commercial space, parks, and open space. Other areas of the City also have the potential for new development.
In 2014, the City updated its development fee ordinance, which had not changed since 2001. In preparation, it commissioned from Willdan Financial Service the "Development Impact Fee Update and Nexus Study" (the nexus study, or the study). The purpose of the study was to analyze the development impact fees needed to support development in the City through 2040, and the study became the basis for the fees the City later authorized.
To calculate new developments' fair share of park facilities, the nexus study used the "existing inventory approach," which it explained "allocates *296costs based on the ratio of existing facilities to demand from existing development," with the goal that facilities will expand at the same rate as the population expands, preserving the current standard for park facilities. This was a multi-step process.
The study first made an inventory of the City's park and recreational facilities, which encompassed approximately 157 acres of parkland and 24 acres of open space. It estimated the cost per acre for developing parkland and open space, setting the cost of acquiring land for park facilities at $ 1,437,000 per acre and the cost of parkland improvements and facilities at $ 529,800 per acre, for a total cost of almost $ 2 million per acre for active-recreation parkland. Because open space is less intensively developed than active-recreation parkland, the study assigned to open space acres only the cost of acquiring the land, and treated each acre of open space as the equivalent of approximately three-quarters of an acre of parkland.3
*165Based on these calculations, an inventory of existing parkland and open space, and the City's population in 2013, the study concluded the existing standard was 2.4 acres of parkland per 1,000 residents.
The nexus study then calculated the cost of additional facilities that would be needed to maintain this standard. With the addition of 8,260 residents by 2040,4 an additional 19.82 acres of improved parkland would be needed to maintain the existing ratio of parkland to residents. At $ 2 million per acre, the study calculated a total cost of $ 39 million for park facilities to accommodate new development, a number that represents $ 28.5 million to acquire land for parks, plus $ 10.5 million to improve it. Based on its assumption of the number of residents who would live in each new unit, the study proposed a total park and recreation facilities fee per dwelling unit of $ 12,809 for single family homes and $ 9,149 for multifamily homes.
The nexus study stated that the City planned to use the park facilities fee revenue to "purchase parkland or construct improvements to add to the system of park and recreation facilities that serves new development." It included a preliminary list of planned park facilities, including the Alameda Point sports complex, Jean Sweeney Open Space Park construction, and Estuary Park athletic fields and park construction. The total project costs of those planned facilities was estimated to be $ 26.5 million, which would be *297fully funded by the park facilities fee. Additional facilities would also need to be identified to maintain the City's existing parkland standard.
The City adopted Ordinance No. 3098, the Development Impact Fee Ordinance, on July 16, 2014 (the ordinance). The only component of the ordinance at issue here is parks and recreation. Citing the nexus study, the ordinance included a finding that there was a reasonable relationship between the need for new and improved park and recreation facilities and the type of development on which the fee would be imposed, since new residents would use parks and recreational facilities throughout the City, and that current service levels would fall if additional facilities were not provided. The ordinance set impact fees, of which $ 11,528 for single family homes or $ 9,149 for multifamily units was attributable to parks and recreation fees.
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TUCHER, J.
*294The Mitigation Fee Act ( Gov. Code, § 66000 et seq. )1 authorizes local agencies to impose fees on a development project in order to defray the cost of public facilities needed to serve the growth caused by the project, as long as the fees are reasonably related to the burden caused by the development. ( §§ 66000, subd. (b), 66001 ; see Ehrlich v. City of Culver City (1996)
*295Shapell Industries, Inc. v. Governing Board (1991)
*164In 2014, the City of Alameda adopted an ordinance establishing fees it would impose as a condition for approving future development. Boatworks brought this facial challenge to the ordinance, alleging that the proposed fees for park facilities lack a reasonable relationship to the burden of future development and hence violate the Mitigation Fee Act.2 The trial court concluded the fees are excessive and constitute invalid exactions in three respects: by imposing on new residents the purported cost of acquiring land for parks, although the City does not need to buy new parkland; by including in its inventory of current parks two parks that were not yet open; and by categorizing certain areas as parks rather than (less expensive) open space. The court rejected the remainder of Boatworks's specific challenges. It ordered the City to excise and vacate the portions of the ordinance authorizing development impact fees for parks and recreation.
Both the City and Boatworks have appealed from the judgment. The City has also appealed a post-judgment order awarding attorney fees. We have consolidated the two appeals for purposes of decision. We conclude the trial court erred only in two respects: in ruling the City could not treat certain areas as parks, and in the form of the remedy it imposed.
I. BACKGROUND
The City of Alameda includes land at Alameda Point formerly owned by the United States Navy. After the Alameda Naval Air Station closed in 1997, the Navy transferred the majority of the property to the City at no cost for civilian use. The City plans to develop Alameda Point with residential units, commercial space, parks, and open space. Other areas of the City also have the potential for new development.
In 2014, the City updated its development fee ordinance, which had not changed since 2001. In preparation, it commissioned from Willdan Financial Service the "Development Impact Fee Update and Nexus Study" (the nexus study, or the study). The purpose of the study was to analyze the development impact fees needed to support development in the City through 2040, and the study became the basis for the fees the City later authorized.
To calculate new developments' fair share of park facilities, the nexus study used the "existing inventory approach," which it explained "allocates *296costs based on the ratio of existing facilities to demand from existing development," with the goal that facilities will expand at the same rate as the population expands, preserving the current standard for park facilities. This was a multi-step process.
The study first made an inventory of the City's park and recreational facilities, which encompassed approximately 157 acres of parkland and 24 acres of open space. It estimated the cost per acre for developing parkland and open space, setting the cost of acquiring land for park facilities at $ 1,437,000 per acre and the cost of parkland improvements and facilities at $ 529,800 per acre, for a total cost of almost $ 2 million per acre for active-recreation parkland. Because open space is less intensively developed than active-recreation parkland, the study assigned to open space acres only the cost of acquiring the land, and treated each acre of open space as the equivalent of approximately three-quarters of an acre of parkland.3
*165Based on these calculations, an inventory of existing parkland and open space, and the City's population in 2013, the study concluded the existing standard was 2.4 acres of parkland per 1,000 residents.
The nexus study then calculated the cost of additional facilities that would be needed to maintain this standard. With the addition of 8,260 residents by 2040,4 an additional 19.82 acres of improved parkland would be needed to maintain the existing ratio of parkland to residents. At $ 2 million per acre, the study calculated a total cost of $ 39 million for park facilities to accommodate new development, a number that represents $ 28.5 million to acquire land for parks, plus $ 10.5 million to improve it. Based on its assumption of the number of residents who would live in each new unit, the study proposed a total park and recreation facilities fee per dwelling unit of $ 12,809 for single family homes and $ 9,149 for multifamily homes.
The nexus study stated that the City planned to use the park facilities fee revenue to "purchase parkland or construct improvements to add to the system of park and recreation facilities that serves new development." It included a preliminary list of planned park facilities, including the Alameda Point sports complex, Jean Sweeney Open Space Park construction, and Estuary Park athletic fields and park construction. The total project costs of those planned facilities was estimated to be $ 26.5 million, which would be *297fully funded by the park facilities fee. Additional facilities would also need to be identified to maintain the City's existing parkland standard.
The City adopted Ordinance No. 3098, the Development Impact Fee Ordinance, on July 16, 2014 (the ordinance). The only component of the ordinance at issue here is parks and recreation. Citing the nexus study, the ordinance included a finding that there was a reasonable relationship between the need for new and improved park and recreation facilities and the type of development on which the fee would be imposed, since new residents would use parks and recreational facilities throughout the City, and that current service levels would fall if additional facilities were not provided. The ordinance set impact fees, of which $ 11,528 for single family homes or $ 9,149 for multifamily units was attributable to parks and recreation fees. The amount for single family homes is somewhat below the amount proposed in the nexus study, while the amount for multi-family units is exactly what the study proposed.
Boatworks brought a petition for writ of mandate and complaint for declaratory and injunctive relief, alleging the nexus study inflated the amount of parkland fees necessary to maintain the current level of service. The trial court agreed, finding the City violated the Mitigation Fee Act in three respects: it authorized fees to pay for the value of land the City already owned; its inventory of current parks-which established the current standard for parkland-included parks that were not yet open; and the inventory miscategorized three open space areas as parks. The court *166issued a writ of mandate directing the City to excise and vacate the portions of the ordinance that authorized development impact fees for parks and recreation.
II. DISCUSSION
A. Legal Landscape
The Mitigation Fee Act "was passed by the Legislature 'in response to concerns among developers that local agencies were imposing development fees for purposes unrelated to development projects.' " ( Ehrlich , supra , 12 Cal.4th at p. 864,
*298"While it is 'only fair' that the public at large should not be obliged to pay for the increased burden on public facilities caused by new development, the converse is equally reasonable: the developer must not be required to shoulder the entire burden of financing public facilities for all future users. '[T]o impose the burden on one property owner to an extent beyond his [or her] own use shifts the government's burden unfairly to a private party ....' [Citation.] It follows that facilities fees are justified only to the extent that they are limited to the cost of increased services made necessary by virtue of the development. [Citations.] The [public agency] imposing the fee must therefore show that a valid method was used for arriving at the fee in question, 'one which established a reasonable relationship between the fee charged and the burden posed by the development.' " ( Shapell , supra , 1 Cal.App.4th at pp. 234-235,
The adoption of development impact fees under the Mitigation Fee Act is a quasi-legislative act, which we review under the standards of traditional mandate. ( Garrick Development Co. v. Hayward Unified School Dist. (1992)
*167( Home Builders Assn. of Tulare/Kings Counties, Inc. v. City of Lemoore (2010)
In a challenge to development fees, the public agency bears the initial burden of producing evidence to show it used a valid method for imposing the fee in question. If it meets this burden, the plaintiff must establish that the fee is invalid, that is, that its use or the need for the public facility are not reasonably related to the development, or "the amount of the fee bears no reasonable relationship to the cost of the public facility attributable to the development." ( City of Lemoore , supra , 185 Cal.App.4th at p. 562,
*299On appeal, we review the agency's decision independently and apply the same standard of review as does the trial court. ( Walker v. City of San Clemente (2015)
B. The City's Appeal
1. Cost of Purchasing Land
The City makes three substantive challenges to the trial court's ruling. First, it contends the trial court erred in concluding the park and recreation fee was based on the need to purchase 19.82 acres of new parkland.
As the City points out, the use of a methodology similar to the nexus study's "existing inventory" approach was approved in City of Lemoore . The city there relied on a report that proposed a community/recreation facility impact fee to fund the cost of adding facilities that would maintain the current level of service as the city grew. It calculated those fees "based on the existing ratio of community and recreation facility asset value to population, the rationale being that the need for such facilities is based on the size of the population to be served." ( City of Lemoore , supra , 185 Cal.App.4th at p. 563,
The City argues the nexus study's analysis is proper because it took essentially the same approach as the study in City of Lemoore . The italicized language in the preceding paragraph, taken in isolation, might support the City's position. But the difference between this case and City of Lemoore is that here, it is undisputed that the City already possesses most of the land needed for new park and recreation facilities, and that some of these facilities will be on land the City acquired from the Navy at no cost. Indeed, at the trial below, counsel for the City conceded that, with the exception of a small amount of land for Jean Sweeney Park, the City did not need to, and did not plan to, use the fees to purchase new parkland; rather, it planned *300to use the fees to improve existing assets. *168Yet almost three quarters of the impact fee for parks and recreation was justified by the supposed costs of acquiring new land for parks ($ 28.5 million of the $ 39 million, per the nexus study). The City is simply not in the same position as the City of Lemoore, where the community recreation fee calculation began with the amount the city had invested in existing recreational facilities.
The City argues that the trial court's decision was erroneously based on a "literal reading of [a] single inartful statement," that is, the statement in the nexus study that to accommodate new development at the current standard, "new development must fund the purchase and improvement of 19.82 parkland acres, at a total cost of approximately $ 40 million." (Italics added.) The City acknowledges that it already owns most of the land it intends to develop into new park and recreation facilities, but points to language in the same chapter in the nexus study stating that it will use the park facilities fee revenue "to purchase parkland or construct improvements to add to the system of park and recreation facilities that serves new development."
The issue before us, however, is not whether the wording in the nexus study is ambiguous, but whether the City has shown a reasonable relationship between the fee's use and the burden posed by new development. (§ 16001, subd. (a); Shapell , supra , 1 Cal.App.4th at p. 235,
We are guided by a different portion of City of Lemoore . One of the fees challenged there was a fire protection impact fee for the east side of the city. ( City of Lemoore , supra , 185 Cal.App.4th at p. 571,
The City's position is that regardless of whether it needs to purchase new land to fund new park facilities, it is entitled to take into account the *301value of the land under its current park facilities in setting development impact fees. It argues, "It does not matter whether the City uses fee proceeds to purchase new parkland, to improve existing parkland, or to construct new recreational facilities. All that matters is that the City is collecting a park and recreation fee calculated to match the City's existing level of investment in such facilities ." (Italics added.) That characterization goes too far. The Development Fee Act allows the City to impose fees that have a reasonable relationship to the burden posed by the development. ( Shapell , supra , 1 Cal.App.4th at p. 235,
2. Inclusion of Current Parks in Inventory
The City also argues the trial court erred in finding it improperly included in its inventory of current parks two that were not currently open to the public. The nexus report included Estuary Park in its inventory of existing parkland and Jean Sweeney Open Space Park in its inventory of existing open space. These facilities were part of the total acreage of parkland and open space that formed the basis for the existing parkland standard, which was used to justify the parkland development impact fees. Without these parks, the City's calculated investment in park facilities would have been lower, and in turn the impact fees would have been lower as well.
The problem is that neither of these parks was open to the public when the City adopted the ordinance. The City acknowledges that fact, but argues it was reasonable to include them in its inventory of existing assets because it anticipated using them as parks in the near future. However, the nexus study proposed using the development impact fees for construction of Jean Sweeney Open Space Park and of Estuary Park and its athletic fields. Nothing the City says persuades us it is proper to use a park as part of existing inventory for purposes of setting fees, then use those very fees to develop that park.5
We need not, and do not, decide whether or to what extent it would be permissible for an inventory of existing parks to include planned parks whose improvement will not be funded by development impact fees. We merely hold *302that this record does not show it was reasonable to include Jean Sweeney Open Space Park and Estuary Park in the City's inventory of existing parkland.
3. Open Space or Parks
In its inventory of existing parks, the nexus study included Shoreline Park, Bill Osborne Model Airplane Field, and two boat ramps. However, in previous documents prepared by the City, notably the Parks and Recreation element of its General Plan, these areas are included within "Community Open Space," rather than "Neighborhood Parks" or "Community Parks." The City's 1999 application to the National Park Service for a public benefit conveyance of surplus federal real property also classified these properties as community open space. The trial court ruled that the City violated the Mitigation Fee Act in treating these areas as parks rather than open space, because there was no evidence the City had a factual basis to classify these areas differently than it had when adopting the General Plan. We conclude this ruling was erroneous.
The nexus study explained, "Open space is less intensively developed than active recreation parkland. As such, this analysis weights the value of open space less than that of active parkland when calculating park level of service facility standards." Specifically, the study treated an acre of open space as worth 73 percent of an acre of parkland. Thus, the cost of providing *170facilities at the current standard was greater if the areas in question were treated as parks than if they were treated as open space.
The parties have drawn our attention to nothing in the nexus study or any other part of the administrative record that sets forth explicitly why the nexus study categorized these areas differently than did the general plan, but a basis is discernible from the record. The nexus study shows that the value assigned to open space-73 percent of the value of improved parkland-represented solely the cost of land acquisition, not the cost of adding any improvements. The study explains that " 'standard park improvements' " include "site improvements (curbs, gutters, water, sewer, and electrical access), plus basic park and field amenities such as outdoor ball courts, restrooms, parking, basic play equipment, irrigation, turf, open green space, pedestrian paths, and picnic tables." One of Boatworks's trial exhibits, the City's Parks Improvement Assessment, shows that Shoreline Park has some of these improvements, such as benches, picnic areas, rest rooms, play areas, lighting, and an exercise path, and the model airplane field has two dedicated flying circles, picnic areas, work benches, and fencing. The 1999 application for surplus land indicates these boat launches, model airplane park, and Shoreline Park are developed, rather than undeveloped, open space. Thus, the record indicates the value of these facilities exceeds the cost of the land.
*303Boatworks relies on cases decided in other contexts indicating that if a public entity changes its view, it must explain its rationale. (See, e.g., Motor Vehicle Mfrs. Assn., Inc. v. State Farm Mut. (1983)
C. Boatworks's Cross-Appeal
1. Existing Deficiencies in Park Facilities
In its cross-appeal, Boatworks raises two additional challenges. First, it contends the trial court erred in rejecting its argument that the development impact fees are improperly designed to remedy existing deficiencies in park facilities.
Section 66001, subdivision (g) provides: "A fee shall not include the costs attributable to existing deficiencies in public facilities, but may include the costs attributable to the increased demand for public facilities reasonably related to the development project in order to (1) refurbish existing facilities to maintain the existing level of service or (2) achieve an adopted level of service that is consistent with the general plan." Boatworks points out that the City had previously identified, longstanding, deficiencies in park service to some areas of the city and an inadequate supply of athletic fields; because the City intends to use *171the fees to correct those deficiencies, Boatworks argues, they violate the Mitigation Fee Act.6
We are unpersuaded. In adding subdivision (g) of section 66001, the Legislature declared its intent to codify the holdings of *304Bixel Association v. City of Los Angeles (1989)
Thus, in each of the cases cited by the Legislature in enacting subdivision (g) of section 66001, there was no nexus between the fees imposed and the burden of the new development. We have already concluded that, in two respects, the City failed to establish a reasonable relationship between the fee charged and the burden of new development. To the extent Boatworks's argument is that fees must have such a relationship to the burdens of new development, we agree.
However, Boatworks appears to go further and argue the fees may not be applied to address any existing problems with park facilities. Taken to its logical conclusion, this argument would mean that a city could not impose development impact fees if there is any shortfall in its current facilities, because the effect of using the fees would necessarily be to ameliorate the shortfall. We do not read the statute so broadly as to prohibit the city from imposing fees to maintain its current level of service. The new residents will use not only the new parks and fields, but all of the existing park facilities, which they did not pay to build. At the same time, they will increase the demand on the City's parklands; to the extent the new athletic fields and other facilities are necessary to maintain the existing level of service, the cost of building them is attributable not "to existing deficiencies in public facilities" ( § 66001, subd. (g) ), but rather to the increased demand from new residents.
*305Nor is the City limited to its current offering and proportions of types of facilities; as explained in City of Lemoore , *172"There is no question that increased population due to new development will place additional burdens on the citywide community and recreation facilities. Thus, to maintain a similar level of service to the population, new facilities will be required. It is logical to not duplicate the existing facilities, but rather, to expand the recreational opportunities." ( City of Lemoore , supra , 185 Cal.App.4th at p. 565,
2. Allocation of Cost of Alameda Point Sports Complex
In 2001, the City prepared a development fee nexus study that planned for a list of 21 proposed parks and recreation improvements, including a sports complex at Alameda Point. The 2001 study determined that new development should be responsible for 8.1 percent of the cost of these improvements. It explained, "The allocation of costs is based on new development's share of total population at buildout, which equals 8 percent."
The 2014 nexus study upon which the City relied in setting the fees at issue here took a different approach. It contained a list of eight "Preliminary Planned Park Facilities" that the development impact fees would fully fund. That list included the Alameda Point Sports Complex. The study explained that $ 10 million of its cost was allocated to the citywide impact fee and $ 10 million to the Alameda Point impact fees. Citing State Farm , supra ,
We are unpersuaded. City of Lemoore establishes that a city may use development impact fees to expand its recreational opportunities, and need identify the public improvements only generally. ( City of Lemoore , supra , 185 Cal.App.4th at p. 565,
D. Remedy
Having concluded that, in two respects, the trial court was correct in finding the City did not show an adequate basis for its fees, we now come to the remedy. The trial court issued a peremptory writ of mandamus directing the City to "comply with the December 1, 2016 Order of this Court ... by excising and vacating those portions of CITY Ordinance No. 3098 (Citywide *306Development Impact Fees) that concern or purport to authorize development impact fees for parks and recreation[ ]."
The City contends the trial court lacked jurisdiction to compel it to perform the legislative act of vacating and excising portions of the ordinance. We agree that the correct resolution is to declare the ordinance void or invalid to the extent it sets the parks and recreation fees, rather than directing the City to perform a legislative act.
" 'Generally, a court is without power to interfere with a purely legislative action, in the sense that it may not command or prohibit legislative acts, whether the act contemplated or done be at the state level [citation] or at the local level [citation]. The reason for this is a fundamental one-it would violate the basic constitutional concept of separation of powers *173among the three coequal branches of the government.' " ( City of Palo Alto v. Public Employment Relations Bd. (2016)
Based on these principles, we conclude the court may not direct the City to carry out the legislative act of rescinding an ordinance, when the less invasive remedy of invaliding or voiding the ordinance, to the extent it violates the law, is available. On remand, the trial court shall issue a judgment declaring the parks and recreation fee as imposed invalid and unenforceable. The City, of course, retains discretion to impose fees that are consistent with the Mitigation Fee Act and the views expressed in this opinion.
*307E. Attorney Fees
After trial, Boatworks moved for attorney fees pursuant to Code of Civil Procedure section 1021.5, which authorizes an award of attorney fees to a successful party "in any action which has resulted in the enforcement of an important right affecting the public interest if: (a) a significant benefit, whether pecuniary or nonpecuniary, has been conferred on the general public or a large class of persons, (b) the necessity and financial burden of private enforcement, or of enforcement by one public entity against another public entity, are such as to make the award appropriate, and (c) such fees should not in the interest of justice be paid out of the recovery, if any." The trial court granted the motion and awarded attorney fees of $ 558,052.50 against the City. The City contends Boatworks is not entitled to these fees.
" 'Under the private burden prong of section 1021.5, fees are recoverable " 'when the cost of the claimant's legal victory transcends his personal interest, that is, when the necessity for pursuing the lawsuit placed a burden on the plaintiff "out of proportion to his individual stake in the matter." ' " [Citation.] "If the enforcement of the public interest is merely 'coincidental to the attainment of ... personal goals' [citation] or is 'self-serving,' [citation], then this requirement is not met." [Citation.] "Stated otherwise, 'The private attorney general doctrine ... was not intended to reward litigants motivated by *174their own pecuniary interests who only coincidentally protect the public interest.' " ( Lyons v. Chinese Hospital Assn. (2006)
We have concluded that the trial court erred in two respects only, that is, in concluding the City could not permissibly treat Shoreline Park, the model airplane field, and the two boat ramps as parkland rather than open space, and in fashioning its remedy. The City argues that if we reverse the judgment below, we must also reverse the attorney fee award, because it " 'falls with a reversal of the judgment on which it is based.' " ( California Grocers Assn. v. Bank of America (1994)
The City does not dispute that Boatworks was a successful party, and there is no monetary recovery from which attorney fees could be paid. (See Code Civ. Proc., § 1021.5.) The City disputes that a significant benefit has been conferred on the general public or a large class of persons and that the necessity and financial burden of private enforcement make the award appropriate. (Ibid .)
In our view, the trial court could reasonably conclude the litigation conferred a significant benefit on the general public or a large class of persons. The Mitigation Fee Act was enacted to respond to concerns that local agencies were imposing fees " 'for purposes unrelated to development projects.' " ( Ehrlich , supra , 12 Cal.4th at p. 864,
There is also evidence from which the court could conclude a large class of persons will benefit from the decision. The development impact fees are intended to apply to all development anticipated from 2014 through 2040. The portion of the fees attributable to parks and recreation amounts to $ 11,528 for single family homes and $ 9,149 for multi-family units, and Boatworks provided expert evidence that in a high-priced market such as the Bay Area, home builders are able to pass on to the buyer most or all of the cost of increased development impact fees. The evidence supports a conclusion that the litigation will provide a benefit to developers and buyers of an estimated 4,600 homes over the course of more than 25 years.
*309The record is also sufficient to support a conclusion that the necessity and burden of private enforcement make the award appropriate. This requirement " ' "really examines two issues: whether private enforcement was necessary and whether the financial burden of private enforcement warrants subsidizing the successful party's attorneys." ' " ( Conservatorship of Whitley (2010)
In considering the second prong of this inquiry, financial burden on litigants, courts focus "not only on the costs of the litigation but also any offsetting financial benefits that the litigation yields or reasonably could have been expected to yield." ( Conservatorship of Whitley , supra , 50 Cal.4th at p. 1215,
Boatworks owns property in the City that it, or the previous owner of the property, has been seeking to develop since at least 2005. The most recent application is *176for a 182-unit residential housing project.7 If the City approves the project, Boatworks would be liable for park impact fees of approximately *310$ 1.6 million. Boatworks submitted evidence that it made multiple applications to develop the property, to no avail, and that at the time it began this litigation, it estimated there was no more than a 50 percent chance the City would ever approve any economically viable project on the property. Its attorney submitted a declaration stating that at the time this litigation was filed-before he received evidence from the City during discovery-he estimated the likelihood of success in this litigation was also 50 percent.
Based on this evidence, the trial court could reasonably approximate the estimated value of the case as being lower than the $ 558,052.50 in attorney fees. Any financial benefit Boatworks might receive is "at least once removed from the results of the litigation," because the ruling did not ensure Boatworks would receive the financial benefit of any reduction in the fees. ( Heron Bay , supra , 19 Cal.App.5th at p. 395,
The City argues that Boatworks failed to show that the litigation imposed a burden on it out of proportion to its financial interest. (See Save Oxnard Shores v. California Coastal Com. (1986)
On this record, the facts the City cites do not compel reversal. The global settlement discussions led nowhere, and any settlement leverage this litigation provided was limited by the economic value of this particular dispute. The trial court did not abuse its discretion in deciding to ignore the potential value of all of Boatworks's disputes with the City before awarding attorney fees.
III. DISPOSITION
The judgment is reversed to the extent it (1) finds the City could not properly include Shoreline Park, Bill Osborne Model Airplane Field and the two boat ramps in its inventory of parks and (2) directs the City to excise and vacate portions of Ordinance No. 3098 that concern or purport to authorize development fees for parks and recreation. On remand, the trial court shall issue a judgment declaring the Ordinance's parks and recreation fee invalid and unenforceable. The judgment is otherwise affirmed. The matter is remanded to the trial court for further proceedings consistent with this opinion.
The April 20, 2017 order awarding attorney fees is affirmed.
The parties shall bear their own costs on appeal.
WE CONCUR:
POLLAK, P. J.
STREETER, J.
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