Davis v. United States

72 Fed. Cl. 731, 2006 U.S. Claims LEXIS 277, 2006 WL 2772880
CourtUnited States Court of Federal Claims
DecidedSeptember 15, 2006
DocketNo. 02-746X
StatusPublished

This text of 72 Fed. Cl. 731 (Davis v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davis v. United States, 72 Fed. Cl. 731, 2006 U.S. Claims LEXIS 277, 2006 WL 2772880 (uscfc 2006).

Opinion

REPORT OF THE HEARING OFFICER

WHEELER, Hearing Officer.1

In this Congressional reference case, Plaintiffs claim that they were injured by actions of the United States in attempting to sell their Partnership’s property in Los Alamitos, California. A prospective buyer of Plaintiffs’ property, the Grace Church, was unable to obtain a conditional use permit from the City of Los Alamitos, and the proposed sale did not occur. Plaintiffs allege that a Department of the Army document entitled “Final ReporVAir Installation Compatible Use Zone Study/Armed Forces Reserve Center/Los Alamitos Army Airfield,” dated December 1989 (“1989 AICUZ Study” or “Study”), caused the City of Los Alamitos to deny the conditional use permit, and that Plaintiffs thereby suffered damages in excess of $21 million. Plaintiffs claim that the 1989 AICUZ Study was not prepared in accordance with applicable regulations, and that the Study caused unfounded public safety concerns stemming from the proximity of Plaintiffs’ property to a military airfield. Defendant has filed a motion for summary judgment focusing principally on a lack of any causation, and Plaintiffs have opposed Defendant’s motion. The Hearing Officer has considered all submissions from the parties in the preparation of this report.

For the reasons stated below, the Hearing Officer finds that the actions of the United States did not cause the City of Los Alamitos to deny Grace Church’s application for a conditional use permit. The City independently recognized obvious public safety concerns from locating a church near a military airfield. The City had other significant concerns, such as the impact of church ownership on the City’s tax revenue base, the lack of adequate parking, the lack of an adequate setback from the rear property line, the lack of compatibility with adjacent industrial and residential uses, and the impact of noise and fumes from the base and airfield. Moreover, the City Council knew that Plaintiffs’ property was located near the airfield before the Army issued the 1989 AICUZ Study. To the [733]*733extent that the Los Alamitos City Council considered the 1989 AICUZ Study in denying the conditional use permit, the Study was not misleading or inaccurate. Rather, the Study correctly indicated that Plaintiffs’ property was near the “crash zone” or “clear zone”2 of the airfield’s runways. Plaintiffs too, knew that the property was located near a military airfield when they originally acquired it in 1976. Casting further doubt on Plaintiffs’ causation argument is the fact that Plaintiffs received offers from other prospective buyers between 1989 and 1995. Therefore, without a legal or equitable basis for recommending relief, the award of any money to Plaintiffs would constitute a gratuity.

I. Findings of Fact3

1. The Plaintiffs in this action were partners of Los Caballeros Center, a partnership formed under the laws of California (“the Partnership”). Compl. ¶ 5. Sarabeth Davis and Robert Borders were general partners. Deposition of Sarabeth Davis, March 10, 2004 (“Davis Dep.”) at 28-29. The other Plaintiffs, Victor Marón, Irving Berke, and Adele Conrad, were limited partners. Id.

2. In February 1976, the Partnership purchased approximately 8.9 acres of undeveloped property located at 5252 Katella Avenue and 11021-11132 Winners Circle in the City of Los Alamitos, California (“the Property”). Compl. ¶ 6. The Partnership thereafter developed the Property to include a bank, a restaurant, two office buildings and six office-industrial buildings. Compl. ¶ 7.

3. The Property is adjacent to the Los Alamitos Armed Forces Reserve Center (“AFRC” or “the Base”). Compl. ¶6. The AFRC includes the Los Alamitos Army Airfield on a portion of the Base, separated from the Partnership’s property by a golf course that is also located on the Base. Id.

4. The Partnership commenced discussions with Grace Church, Los Alamitos, California, regarding the possible purchase of the Property a few months prior to November 1989. Defendant’s Proposed Findings of Uncontroverted Fact (Deft’s PFOF), ¶ 4. Robert D. Kingsbury served as Executive Pastor and Treasurer of Grace Church. Id. The Partnership did not formally list the Property with a real estate agent in 1989, though it entertained multiple offers for the purchase of the Property that year. Id.

5. On November 6,1989, the Partnership, through its accountant, submitted to Grace Church a document signed by the general partners entitled “Agreement for the Purchase of Real Property” which referred to the purchase of eight of the ten buildings (excluding the bank and the restaurant) for a price of $11,500,000 and the assumption by the buyer of a loan to Union Mutual for approximately $2,616,000. App. Exh. 1 at 2-8.4 Grace Church did not sign this document. Id.

6. On November 16, 1989, Grace Church sent a letter to the Partnership’s accountant offering to purchase the Property, including the bank and the restaurant, for a price of $13,700,000. App. Exh. 3 at 12. This offer contemplated a purchase price of $10,000,000 for eight of the ten buildings and an additional $3,700,000, in the form of an option for the remaining portion of the property. Id. Grace Church indicated in this letter that its offer was contingent upon receiving a conditional use permit (“CUP”) from the City of Los Alamitos. Id.

7. By letter dated December 11,1989, the Partnership authorized Grace Church to apply for the CUP.App. Exh. 7 at 31. On the same day, Grace Church applied to the City of Los Alamitos for a CUP for the two office-[734]*734industrial buildings closest to the AFRC, and also submitted an “Environmental Information Form.” App. Exh. 5-6 at 24, 28.

8. On January 15, 1990, the staff of the City of Los Alamitos Planning Commission issued a report recommending denial of Grace Church’s application for a CUP.App. Exh. 11 at 91-95. Among the issues identified by the staff were the inadequacy of parking, incompatibility with the AFRC, and the proximity of the site to the Base’s crash hazard or clear zone, the effects of church noise on neighboring residential areas, the incongruity of the church with the site design and surrounding land uses, the negative impact of the proposed use on the tax revenue base of the City, and the possibility that a church might discourage the location of other revenue producing businesses on adjacent industrial properties. Id. The staff recommendation stated as follows:

Relocation of a church to 11131 and 11132 Winners Circle will have negative impacts on surrounding uses and the City’s financial base. The proposed land use is incompatible with adjacent existing residences and permitted industrial/manufacturing businesses. It is, therefore, recommended that the Planning Commission deny Conditional Use Permit No. 329-89 based on the findings in this report and the attached Draft Resolution.

Id. at 95.

9. On January 15, 1990, the City’s Planning Commission held a public hearing to consider Grace Church’s CUP application. App. Exh. 13 at 101-11. The Planning Commission members discussed many of the points addressed in the Planning Commission’s report, and heard comments from the public, including Rev. Kingsbury, Mr. Borders, and Ms. Davis, among others. Id.

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72 Fed. Cl. 731, 2006 U.S. Claims LEXIS 277, 2006 WL 2772880, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-united-states-uscfc-2006.