City of Redondo Beach v. 9300 Wilshire CA2/4

CourtCalifornia Court of Appeal
DecidedJune 6, 2024
DocketB325839
StatusUnpublished

This text of City of Redondo Beach v. 9300 Wilshire CA2/4 (City of Redondo Beach v. 9300 Wilshire CA2/4) 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
City of Redondo Beach v. 9300 Wilshire CA2/4, (Cal. Ct. App. 2024).

Opinion

Filed 6/6/24 City of Redondo Beach v. 9300 Wilshire CA2/4 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 FOUR

CITY OF REDONDO BEACH, B325839

Cross-defendant and Appellant, (Los Angeles County Super. Ct. No. 20STCP03193) v.

9300 WILSHIRE, LLC, et al.,

Respondents.

APPEAL from an order of the Superior Court of Los Angeles County, Maurice A. Leiter, Judge. Affirmed. Michael W. Webb, Cheryl Yeun Shin Park, Office of the City Attorney, City of Redondo Beach; Mintz Levin Cohn Ferris, Glovsky and Popeo, Jonathan Welner, Antony D. Nash and Nada I. Shamonki, for Cross-defendant and Appellant. Rutan & Tucker, Douglas J. Dennington, Ajit Singh Thind, Jayson Parsons for Respondents 9300 WILSHIRE. INTRODUCTION This case involves the site of a power plant in the City of Redondo Beach (the City). Respondents have been the owners of the power plant and its real property since 2020; we will refer to them as Owners.1 In a writ petition proceeding, Owners filed a cross-complaint against the City alleging that the City’s zoning of the property in 2010, and subsequent refusals to re-zone the property in a way that would benefit Owners, constituted a taking by depriving Owners of economically viable uses of the property and violated Owners’ substantive due process rights. The City filed a special motion to strike under the anti-SLAPP statute, Code of Civil Procedure section 425.16,2 asserting that because Owners alleged the City’s zoning decisions were based on a decades-long scheme to deprive Owners and their predecessor of any economically viable use of the property, and the statements evidencing that motive were protected activity under section 425.16, Owners’ claims “arise from” that protected activity. The trial court denied the City’s motion at the first step of the anti-SLAPP analysis, and we affirm. Owners’ claims arise from the zoning decisions themselves, which are not protected

1 Owners consist of 9300 Wilshire, LLC; 1112 Investment Company, LLC; Ed Flores, LLC; 9300 Wilshire Fee, LLC; David Dromy; 1650 Veteran, LLC; Outdoor Billboard, LLC; BH Karka, LLC; 5th Street Investment Company, LLC; 505 Investment Company, LLC; SLH Fund, LLC; and Peak Alcott, LLC. 2 All further undesignated statutory references are to the Code of Civil Procedure. “SLAPP” stands for “strategic lawsuits against public participation.” (FilmOn.com Inc. v. DoubleVerify Inc. (2019) 7 Cal.5th 133, 139.)

2 activity; the claims do not arise from the statements alleged as evidence of the City’s motives in making those zoning decisions. FACTUAL AND PROCEDURAL BACKGROUND A. First amended cross-complaint In Owners’ first amended cross-complaint (FACC), the pleading relevant to this appeal, Owners alleged they owned the power plant and the real property surrounding it (the property). They asserted a “decades-long effort” by the City to “zone out of existence any economically viable alternative use” of the property. Owners described a long history of the property and the power plant, including its believed origins in about 1897 as a generator site, and its subsequent phases of development as a power station. The FACC describes a 1998 memorandum of understanding between the City and the then-owner of the property, AES Corp., which stated an intention to downsize the power plant and develop the remainder of the property “to commercial and other uses.” The FACC alleges that AES performed certain parts of the memorandum, such as removing smokestacks. In March 2002, the City Council approved a new plan for the area that “called for economically viable alternative uses of the [property] upon the downsizing (or closure) of the Power Plant,” but the City Council repealed the plan a few months later in June 2002. In 2004, community activists authored a document calling for conversion of the property to park space; this proposal was not approved. In 2008, a local political group, Building a Better Redondo, authored “Measure DD” to change the City charter so that any “major change” in land use—including any amendment to the coastal zoning ordinance—would require approval of the voters.

3 The property at issue is within the coastal zone. Measure DD was approved by Redondo Beach voters in the November 2008 election. In 2010, City voters approved Measure G, which changed the property’s land use designation from “Industrial” to “Generating Plant”—a new land use designation with no zoning provisions. Measure G allowed the property to be “converted to parks, open space, and recreational facilities if the site is acquired for such purposes in the future.” Meanwhile, the California State Water Resources Control Board (Board) adopted a new policy calling for the termination of power plant operations that use ocean water for cooling. This policy required the power plant to either modernize to eliminate the use of ocean water for cooling or terminate operations by December 31, 2020. In 2015, AES attempted to rezone the property. Because major land use changes were required to be submitted to the electorate for approval after the passage of Measure DD, AES sponsored an initiative, Measure B, to allow the property to be zoned for 600 residential dwelling units, 85,000 square feet of commercial space, 250 hotel rooms, and 10 acres of open space. Measure B was defeated in a March 2015 special election. In the FACC Owners alleged, “Through the initiative, referendum and City Council measures alleged hereinabove, the City has successfully eliminated any potential economically viable redevelopment of the [property] upon the Power Plant’s closure. The electorate’s refusal to approve the relatively modest alternative re-use of the [property] through Measure B demonstrates the City’s insistence that the property be converted to parklands for the enjoyment of the public upon the closure of

4 the Power Plant.” Owners noted that the City’s mayor told a local news organization that parks and open space were the only permitted uses of the property. The Board approved an extension of power plant operations at the property through 2023. The City first opposed the extension, then filed the writ petition that initiated this case challenging the legality of the Board’s extension. Owners then cross-complained against the City. In the FACC, Owners allege that they “did not acquire [the property] with the intent of converting it to open space,” and “[o]nce the Power Plant is required to close the site will have no economically viable use under the existing zoning, and the City continues to demonstrate its unwillingness to rezone the [property] to allow it to be redeveloped.” Owners alleged that even as the City was updating its housing element to comply with state law, it refused to designate any portion of the property as a potential site for new housing. Owners asserted four causes of action relevant to this appeal.3 In two causes of action for inverse condemnation— regulatory taking, Owners alleged that by taking their private property without just compensation the City violated their rights under the Fifth Amendment of the United States Constitution and Article 1, section 19 of the California Constitution. They asserted that the “City’s failure and refusal to zone the Property to allow any economically viable reuse of the Power Plant site has

3 Owners asserted a fifth cause of action alleging a violation of their equal protection rights.

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Bluebook (online)
City of Redondo Beach v. 9300 Wilshire CA2/4, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-redondo-beach-v-9300-wilshire-ca24-calctapp-2024.