Childhelp v. City of Los Angeles CA2/7

CourtCalifornia Court of Appeal
DecidedApril 17, 2023
DocketB311945
StatusUnpublished

This text of Childhelp v. City of Los Angeles CA2/7 (Childhelp v. City of Los Angeles CA2/7) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Childhelp v. City of Los Angeles CA2/7, (Cal. Ct. App. 2023).

Opinion

Filed 4/17/23 Childhelp v. City of Los Angeles CA2/7 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS

California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION SEVEN

CHILDHELP, INC., B311945

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. BC711998) v.

CITY OF LOS ANGELES,

Defendant and Respondent.

APPEAL from judgment of the Los Angeles County Superior Court, Teresa A. Beaudet, Judge. Affirmed. Beitchman & Zekian, P.C., David P. Beitchman and Paul Tokar for Plaintiff and Appellant. Michael N. Feuer and Hydee Feldstein Soto, City Attorneys, and Timothy McWilliams and Peter Walford, Deputy City Attorneys, for Defendant and Respondent. INTRODUCTION

In 1986 Childhelp, Inc., a nonprofit corporation that provides services to victims of child abuse, leased real property from the City of Los Angeles. The lease provided that, in lieu of paying rent, Childhelp would provide treatment for child abuse victims and that after 20 years the City would consider conveying the property to Childhelp. In 2014 the Los Angeles City Council passed a resolution directing various City departments and officials to prepare and execute the necessary approvals and agreements to convey the property to Childhelp, in exchange for Childhelp’s agreement to continue using the property to provide services for victims of child abuse. Ultimately, however, the City decided not to transfer the property to Childhelp. Childhelp filed this action against the City for, among other things, declaratory relief, writ of mandate, and promissory estoppel, and the City filed an unlawful detainer action against Childhelp. After the trial court consolidated the two actions, the court granted the City’s motion for summary adjudication on Childhelp’s cause of action for promissory estoppel, sustained without leave to amend the City’s demurrer to Childhelp’s causes of action for declaratory relief and writ of mandate, and granted the City’s motion for summary judgment on its unlawful detainer complaint. Childhelp appeals from the ensuing judgment. We affirm.

2 FACTUAL AND PROCEDURAL SUMMARY

A. Childhelp Leases Property from the City Childhelp began leasing property from the City in March 1986. Three years later, the parties entered into a three- year lease with “the intent” that the City would “renew the lease in increments of three (3) years for a maximum of twenty (20) years.” The parties agreed that, instead of paying rent, Childhelp would “use the premises for the provision of services to abused and/or neglected children and their families and purposes incidental thereto.” The lease also stated that, after 20 years, the City Council would “consider conveying its interest in the property” to Childhelp if it “satisfactorily complied with the terms and conditions of” the lease. For the next 20 years, Childhelp provided services as required by the lease and, after the lease expired in 2009, continued to occupy the premises as a month-to- month holdover tenant “upon the same terms, consideration, covenants and conditions” in the lease. The City Council, as required by the lease, considered conveying the property and in July 2014 passed a resolution adopting recommendations by two committees to convey the property to Childhelp. Among other things, the resolution asked “the City Attorney to work with the Los Angeles Housing and Community Investment Department (HCIDLA) and the Department of General Services (GSD) to prepare and execute the necessary agreements to convey the property” to Childhelp and to “record a covenant to ensure the continuation of services for victims of child abuse”; authorized “HCIDLA and GSD, with the assistance of the City Attorney, to execute all necessary approvals, documents, and amendments to transfer ownership of”

3 the property to Childhelp; directed “GSD, City Attorney and any other necessary departments to commence the process for a direct sale of” the property to Childhelp; declared the property was “a surplus asset”; directed “GSD to immediately initiate the Surplus Property Process and conduct a Class ‘A’ appraisal”; directed “the City Administrative Officer (CAO) to prepare a report on the direct sale to Childhelp”; and directed “GSD, with the assistance of the City Attorney, to take all necessary steps and prepare all required documents to effectuate the direct sale of the Property to Childhelp.” The resolution did not provide a timeline for the sale or include instructions on how the various municipal entities and officials were to complete these tasks. Pursuant to the resolution, GSD sent notices to City departments informing them of the proposed sale of the City-owned property and asking if there were any objections to the sale.1 Some of the letters included language stating the City “intends to offer for possible sale the property” Childhelp was occupying. The City obtained an appraisal, which valued the property at $2.2 million as of January 9, 2015. In analyzing the request to convey City-owned property at below market value, the CAO performed a “Community Benefits Analysis,” which compared the fair market value of the property to the value of services Childhelp would provide to the community. After

1 GSD sent letters to, among other agencies and departments, the Real Estate Division, Economic and Workforce Development Department, Department of Recreation and Parks, Department of Transportation, Fire and Police Pensions, Housing Authority, Los Angeles River Revitalization Corporation, Los Angeles City Employees’ Retirement System, Los Angeles County Metropolitan Transportation Authority, Santa Monica Mountains Conservancy, and California State Resources Agency.

4 completing this analysis the CAO recommended the City require Childhelp to continue providing services at the location for 20 years. Childhelp initially objected to any such requirement and took the position there should not be any covenant, but eventually offered to continue providing services at the location for “a minimum of an additional 10 years.” The parties negotiated but never reached an agreement on the duration of a covenant that would require Childhelp to continue providing services to child abuse victims on the property. In the spring of 2016 HCIDLA became concerned about low client enrollment at Childhelp’s facility on the property. After the parties met in March and August 2016, HCIDLA sent Childhelp a letter in January 2017 stating that the City had determined Childhelp was providing minimal services at the facility on the property and that the types of programs and services Childhelp was providing did not comply with the terms of the lease. In particular, HCIDLA found that Childhelp was not putting “the City-owned leased facility to its highest and best use in the delivery of contracted services to the low- and moderate-income children and families of Los Angeles”; that Childhelp was providing foster services to children in a residential program in Beaumont, California, a Childhelp facility in Riverside County; and that Childhelp was not conducting foster parent training programs at the facility. HCIDLA recommended that the City reconsider transferring the property to Childhelp pending the outcome of the CAO’s community benefits analysis or, in the alternative, that the City not transfer the property because doing so “would not inure a benefit to the community and the city of Los Angeles.” Childhelp disputed HCIDLA’s findings Childhelp was violating the lease, and in

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Bluebook (online)
Childhelp v. City of Los Angeles CA2/7, Counsel Stack Legal Research, https://law.counselstack.com/opinion/childhelp-v-city-of-los-angeles-ca27-calctapp-2023.