Dryden Oaks, LLC v. San Diego Cnty. Reg'l Airport Auth.
This text of 224 Cal. Rptr. 3d 333 (Dryden Oaks, LLC v. San Diego Cnty. Reg'l Airport Auth.) 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
DATO, J.
*388In 2001, Michael Durkin used two limited liability companies-Dryden Oaks LLC and Durkin-CAC Lot 24, LLC-to purchase two lots directly adjacent to the McClellan Palomar Airport (Airport) in the City of Carlsbad, California (City). His development plans for the two lots were initially successful despite determinations by the San Diego County Regional Airport Authority (Authority) that the proposed projects were not compatible with the Airport. Overriding the Authority's objections, the City issued a planned industrial permit and Durkin completed the construction of a commercial building on one of the lots in 2005. He also obtained a permit from the City for construction of a second building on the other lot. Both permits included provisions in which Durkin agreed to hold the City harmless for any liability arising out of approval of the projects.
Durkin's permit on the second lot expired in 2012 without the commencement of any construction. By the time Durkin sought to restart the permitting process with the City, the Authority had adopted an Airport Land Use Compatibility Plan (ALUCP) that designated Durkin's properties as being within a Safety Zone that carries specific limiting recommendations for compatible land uses. Despite having approved Durkin's previous permit application, the City now refused to override the recommendations in the ALUCP.
*389Under California law, it is the City that bears ultimate responsibility for deciding which property development projects to permit. But apparently unable or unwilling to sue the City, in February 2014 Durkin filed an inverse condemnation action against the Authority and the County of San Diego (County). Durkin's complaint asserted that the value of his property was depressed by the Authority's 2010 adoption of the ALUCP and that the decrease in value constituted a governmental taking requiring the County and the Authority to provide compensation.
We conclude the trial court properly entered summary judgment in favor of the County and the Authority on the ground that undisputed evidence shows there was no taking by these defendants. To the extent Durkin has any arguable claim, which we express no opinion on, it would be against the City. Based on established legal principles, nothing done by the Authority or the County amounts to a taking of Durkin's property. Accordingly, we affirm the judgment.
FACTUAL AND PROCEDURAL BACKGROUND
At the time the complaint was filed, Dryden Oaks owned a parcel of real property known as Lot 25 and Durkin-CAC owned a parcel known as Lot 24. The two lots are located in the County of San Diego and the City of Carlsbad at the west end of the Airport, adjacent to the end of a runway. When Durkin purchased the lots, they were designated as part of the Airport's Runway Protection Zone (RPZ) on the County's Airport Layout Plan (ALP), a long-range planning tool that preceded the ALUCP. The Federal Aviation Administration defines a RPZ as "[a]n area at ground level prior to the threshold or beyond the runway end to enhance the safety and protection of people and property on the ground." In March 2000, Durkin entered into an agreement to purchase Lots 24 and 25 (and a third lot, Lot 23, not at issue in the litigation), which were part of a development known as the Carlsbad Airport Centre, from the Callaway Golf Company. Durkin visited the property 14 times prior to signing the purchase agreement *336and observed the lots' proximity to the airport.
The transaction was in escrow for approximately 15 months, closing in June 2001. Durkin paid $474,000 for Lot 24 and $310,000 for Lot 25. Prior to the close of the transaction, Durkin submitted an application to the City for a permit to construct a 29,000 square foot industrial building on Lot 24. In December 2001, the City submitted the application to the Authority for a determination as to whether the proposed project was consistent with the 1994 Comprehensive Land Use Plan for the Airport, a predecessor plan to the ALUCP. Roughly two months later, the Authority issued a determination that it could not make an administrative finding that the project was consistent *390with that plan because the property was "located within the 75 CNEL zone of the McClellan-Palomar Airport" and the proposed industrial development was not compatible. The Authority's letter communicating its decision indicated that the City could pursue the development through the override procedures contained in Public Utilities Code section 21676.1
In June 2002, the City passed a resolution overriding the Authority's determination "as to noise compatibility only" conditioned on "internal noise reduction, Notices of Restrictions, Hold Harmless Agreements, and exemptions from outdoor eating area requirements ...." It also issued planned industrial permits (PIP No. 00-04 and PIP No. 00-04(A)) to Durkin. Each permit contained an indemnification clause in which Durkin agreed to hold the City harmless from all liabilities arising out of the approval, development and operation of the project and to execute "a Hold Harmless Agreement regarding aircraft operations and aircraft noise prior to issuance of grading or building permits" to be "reviewed and approved by the City Attorney ...." Durkin also gave the County an avigation easement for Lot 24 in the process of developing the property. Thereafter, the project was finished and the building has been leased to various tenants since 2005.2
Plans for Lot 25 proceeded on a slower schedule, and it was not until October 2006 that Durkin submitted an application to the City for a planned industrial permit to construct a 30,000 square foot two-story industrial building. As with the project on Lot 24, after Durkin submitted his permit application the plans were submitted to the Authority for a determination as to whether the project was consistent with the applicable airport compatibility plan, which at that time was the 2004 Airport Land Use Compatibility Plan. In February 2007, the Authority provided notice to the City that the Lot 25 project was not consistent with that compatibility plan.
The City also submitted the project proposal to the California Department of Transportation (Caltrans) for comment. In its October 2007 response, Caltrans noted that the proposed development was within the "Runway Protection Zone (RPZ) as depicted on the Federal Aviation Administration (FAA) approved Airport Layout Plan" and was therefore " 'very high risk' due to its proximity to the end of the runway." The letter also noted that the "Caltrans Airport Land Use Planning *337Handbook (Handbook) generally recommends prohibiting all new structures within the RPZ." *391Thereafter, as it had with respect to Lot 24, the City voted to override the Authority's determination that the project was inconsistent with the Compatibility Plan and approved Durkin's permit application (PIP No. 06-19). Also, as with Lot 24, the permit required Durkin to hold the City harmless with respect to its development of the property.
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DATO, J.
*388In 2001, Michael Durkin used two limited liability companies-Dryden Oaks LLC and Durkin-CAC Lot 24, LLC-to purchase two lots directly adjacent to the McClellan Palomar Airport (Airport) in the City of Carlsbad, California (City). His development plans for the two lots were initially successful despite determinations by the San Diego County Regional Airport Authority (Authority) that the proposed projects were not compatible with the Airport. Overriding the Authority's objections, the City issued a planned industrial permit and Durkin completed the construction of a commercial building on one of the lots in 2005. He also obtained a permit from the City for construction of a second building on the other lot. Both permits included provisions in which Durkin agreed to hold the City harmless for any liability arising out of approval of the projects.
Durkin's permit on the second lot expired in 2012 without the commencement of any construction. By the time Durkin sought to restart the permitting process with the City, the Authority had adopted an Airport Land Use Compatibility Plan (ALUCP) that designated Durkin's properties as being within a Safety Zone that carries specific limiting recommendations for compatible land uses. Despite having approved Durkin's previous permit application, the City now refused to override the recommendations in the ALUCP.
*389Under California law, it is the City that bears ultimate responsibility for deciding which property development projects to permit. But apparently unable or unwilling to sue the City, in February 2014 Durkin filed an inverse condemnation action against the Authority and the County of San Diego (County). Durkin's complaint asserted that the value of his property was depressed by the Authority's 2010 adoption of the ALUCP and that the decrease in value constituted a governmental taking requiring the County and the Authority to provide compensation.
We conclude the trial court properly entered summary judgment in favor of the County and the Authority on the ground that undisputed evidence shows there was no taking by these defendants. To the extent Durkin has any arguable claim, which we express no opinion on, it would be against the City. Based on established legal principles, nothing done by the Authority or the County amounts to a taking of Durkin's property. Accordingly, we affirm the judgment.
FACTUAL AND PROCEDURAL BACKGROUND
At the time the complaint was filed, Dryden Oaks owned a parcel of real property known as Lot 25 and Durkin-CAC owned a parcel known as Lot 24. The two lots are located in the County of San Diego and the City of Carlsbad at the west end of the Airport, adjacent to the end of a runway. When Durkin purchased the lots, they were designated as part of the Airport's Runway Protection Zone (RPZ) on the County's Airport Layout Plan (ALP), a long-range planning tool that preceded the ALUCP. The Federal Aviation Administration defines a RPZ as "[a]n area at ground level prior to the threshold or beyond the runway end to enhance the safety and protection of people and property on the ground." In March 2000, Durkin entered into an agreement to purchase Lots 24 and 25 (and a third lot, Lot 23, not at issue in the litigation), which were part of a development known as the Carlsbad Airport Centre, from the Callaway Golf Company. Durkin visited the property 14 times prior to signing the purchase agreement *336and observed the lots' proximity to the airport.
The transaction was in escrow for approximately 15 months, closing in June 2001. Durkin paid $474,000 for Lot 24 and $310,000 for Lot 25. Prior to the close of the transaction, Durkin submitted an application to the City for a permit to construct a 29,000 square foot industrial building on Lot 24. In December 2001, the City submitted the application to the Authority for a determination as to whether the proposed project was consistent with the 1994 Comprehensive Land Use Plan for the Airport, a predecessor plan to the ALUCP. Roughly two months later, the Authority issued a determination that it could not make an administrative finding that the project was consistent *390with that plan because the property was "located within the 75 CNEL zone of the McClellan-Palomar Airport" and the proposed industrial development was not compatible. The Authority's letter communicating its decision indicated that the City could pursue the development through the override procedures contained in Public Utilities Code section 21676.1
In June 2002, the City passed a resolution overriding the Authority's determination "as to noise compatibility only" conditioned on "internal noise reduction, Notices of Restrictions, Hold Harmless Agreements, and exemptions from outdoor eating area requirements ...." It also issued planned industrial permits (PIP No. 00-04 and PIP No. 00-04(A)) to Durkin. Each permit contained an indemnification clause in which Durkin agreed to hold the City harmless from all liabilities arising out of the approval, development and operation of the project and to execute "a Hold Harmless Agreement regarding aircraft operations and aircraft noise prior to issuance of grading or building permits" to be "reviewed and approved by the City Attorney ...." Durkin also gave the County an avigation easement for Lot 24 in the process of developing the property. Thereafter, the project was finished and the building has been leased to various tenants since 2005.2
Plans for Lot 25 proceeded on a slower schedule, and it was not until October 2006 that Durkin submitted an application to the City for a planned industrial permit to construct a 30,000 square foot two-story industrial building. As with the project on Lot 24, after Durkin submitted his permit application the plans were submitted to the Authority for a determination as to whether the project was consistent with the applicable airport compatibility plan, which at that time was the 2004 Airport Land Use Compatibility Plan. In February 2007, the Authority provided notice to the City that the Lot 25 project was not consistent with that compatibility plan.
The City also submitted the project proposal to the California Department of Transportation (Caltrans) for comment. In its October 2007 response, Caltrans noted that the proposed development was within the "Runway Protection Zone (RPZ) as depicted on the Federal Aviation Administration (FAA) approved Airport Layout Plan" and was therefore " 'very high risk' due to its proximity to the end of the runway." The letter also noted that the "Caltrans Airport Land Use Planning *337Handbook (Handbook) generally recommends prohibiting all new structures within the RPZ." *391Thereafter, as it had with respect to Lot 24, the City voted to override the Authority's determination that the project was inconsistent with the Compatibility Plan and approved Durkin's permit application (PIP No. 06-19). Also, as with Lot 24, the permit required Durkin to hold the City harmless with respect to its development of the property. The permit for Lot 25 stated that "the project is consistent with the safety requirements of the Runway Protection Zone of the currently adopted Airport Land Use Compatibility Plan for the McClellan-Palomar (ALUCP), dated October 2004 .... However, according to the Department of Transportation, Division of Aeronautics and the Federal Aviation Administration, the project is located within the Runway Protection Zone as depicted on the May 13, 2004 Federal Aviation Administration approved Airport Layout Plan."
In October 2009, the City issued a three-year extension of the permit for Lot 25, extending its expiration date to 2012.3 Durkin, however, did not pursue the development of the property before the permit expired. In the interim, the Authority adopted the ALUCP based, in part, on the County's existing ALP. The ALUCP designates six different Safety Zones for purposes of determining compatible land uses. The most restrictive is Safety Zone 1, which encompasses the RPZ designated in the ALP. In 2012, the City amended its general plan to ensure its consistency with the ALUCP.
On November 5, 2013, Durkin submitted a preliminary review application to the City to restart the process for the development of Lot 25. The City responded with a letter dated December 3, 2013, outlining the history of the project and explaining that despite the earlier approval the proposed development was no longer feasible because the ALUCP was more restrictive than the prior compatibility plan and the application's proposed use of "research and development" was not permissible. Thereafter, Durkin took no further step to develop the property and in early 2015 sold Lot 25 to Baker Parking LLC for $1.5 million.4
Prior to the sale of Lot 25, in February 2014, Durkin filed the underlying complaint against the Authority and the County. The complaint contains four causes of action-two separate claims for inverse condemnation for each lot (causes of action one and three), and two separate claims for "unreasonable pre-condemnation delay and conduct" for each lot (causes of action two and four). It alleges that the Authority's adoption of the ALUCP designating Lots 24 and 25 as part of the RPZ condemned an avigation easement over the *392property and that the Authority and the County have not paid just compensation for that taking. The complaint also claims that, after the adoption of the ALUCP, one of the two tenants who leased the building on Lot 24 refused to perform its obligation under its rental agreement to expand its use of the property to "include full human occupancy and a higher rent commencing January 1, 2014."5 *338Durkin alleges that "as a subterfuge to avoid condemnation procedures and the payment of just compensation for the taking of the Properties for Airport purposes, Defendants adopted the amended ALUCP ... thereby prevent[ing] the City of Carlsbad, which has zoning authority over the Properties, from permitting development in accordance with its own zoning regulations, and ... with the adopted Specific Plan for the Properties." The complaint advances the theory that the adoption of the ALUCP declaring Lots 24 and 25 part of the RPZ was effected to allow the County to acquire the properties for an airport expansion, thereby taking Durkin's rights to develop and use the property. The complaint seeks "compensatory damages according to proof," as well as attorneys fees and litigation costs.
The Authority responded to the complaint with an unsuccessful demurrer. The County answered and shortly thereafter filed a motion for judgment on the pleadings that was also rejected by the trial court. After conducting discovery, the Authority and the County filed motions for summary judgment. Durkin also filed a motion for summary adjudication of some of the affirmative defenses asserted by the Authority and the County. After extensive briefing and a hearing on the motions, the trial court granted both defendants' motions.6
With respect to the County, the court concluded that Durkin failed to establish a triable issue of material fact as to whether the County took any direct action constituting a taking, or that the Authority acted as the agent of the County in its adoption of the ALUCP. With respect to the Authority, the court found Durkin did not establish a triable issue of material fact that the *393Authority had completed a regulatory taking because it "lack[ed] the authority to make a land use decision" with respect to Durkin's property. The court also rejected Durkin's unreasonable precondemnation claims, finding Durkin failed to raise "a triable issue of material fact as to whether [the] Authority made a public announcement of an intention to acquire either property." The court subsequently entered judgment in favor of the County and the Authority.
DISCUSSION
On appeal, Durkin contends the County and the Authority failed to meet their burden on summary judgment to negate any element of its inverse condemnation claim. Alternatively, Durkin asserts that even if the County and the Authority did meet their burden, he showed the existence of a triable issue of fact as to whether the 2010 ALUCP constituted a "disguised taking" that obligated the County and the Authority to provide compensation. Finally, Durkin asserts his claims for unreasonable precondemnation conduct are not reliant on his inverse condemnation claims and that a triable issue of fact exists as to *339whether there was an announcement of intent to condemn his property.
I
Standard of Review
Code of Civil Procedure section 437c, subdivision (c) provides that summary judgment is to be granted when there is no triable issue of material fact and the moving party is entitled to judgment as a matter of law. A defendant "moving for summary judgment bears an initial burden of production to make a prima facie showing of the nonexistence of any triable issue of material fact." ( Aguilar v. Atlantic Richfield Co. (2001)
We review a summary judgment ruling de novo. ( Certain Underwriters at Lloyd 's of London v. Superior Court (2001)
II
Inverse Condemnation
In its order granting summary judgment, the trial court found that Durkin failed to show a triable issue of fact as to whether a regulatory taking occurred. Durkin now contends this finding was error because he showed the adoption of the ALUCP in 2010, reclassifying his property as part of the RPZ, constituted a taking.7 In response, the Authority contends the trial court correctly concluded that the adoption of the ALUCP does not constitute a taking because the plan is not a final determination with respect to the permissible use of property. Rather, under the relevant statutory provisions, the local land use authority (here the City) is the governmental authority responsible for the final land use decision.
A
"The Takings Clause of the Fifth Amendment, made applicable to the States through the Fourteenth, [citation], provides that private property shall not 'be taken for public use, without just compensation.' As its text makes plain, the Takings Clause 'does not prohibit the taking of private property, but instead places a condition on the exercise of that power.' [Citation.] In other words, it 'is designed not to limit the governmental interference with property rights per se , but rather to secure compensation in the event of otherwise proper interference amounting to a taking.' " ( Lingle v. Chevron U.S.A. Inc. (2005)
In Pennsylvania Coal Co. v. Mahon (1922)
In addition to these two narrow categories of per se regulatory takings, two other types of regulatory taking are generally recognized. As explained in Lingle , another type of taking may be established under the multifactor test discussed in Penn Central Transp. Co. v. New York City (1978)
Each of these first three categories of taking, "physical invasion, complete deprivation of beneficial use, or the Penn Central multifactor test," share a "common focus on identifying regulatory actions that are 'functionally equivalent' in whole or in part to a direct appropriation of the property or ouster of the owner." ( Powell v. County of Humboldt (2014)
Penn Central recognized that zoning laws are "the classic example" of such permissible "regulations that destroy[ ] or adversely affect[ ] recognized real property interests" but do not require compensation. ( Penn Central, supra , 438 U.S. at p. 125,
In Calprop Corp. this court examined the threshold inquiry of finality in holding that the denial of a requested amendment to a community plan and a conditional use permit to develop a private landfill could not form the basis of a takings claim because it did not indicate what, if any, development would be permitted. ( Calprop Corp., supra , 77 Cal.App.4th at p. 598,
B
Durkin's argument muddles the type of regulatory taking he claims is at issue in this case. It is clear, however, that Durkin does not assert his property has been subjected to a permanent physical invasion. There also has been no per se facial regulatory taking under Lucas v. S. Carolina Coastal Co unc i l , supra ,
Rather, Durkin contends that his economic expectations for the properties were diminished by the Authority's adoption of the ALUCP. He argues specifically that the adoption of the plan constituted a "disguised" regulatory taking. The Authority responds, as the trial court concluded, that there is no established category for a "disguised" taking, and, therefore, Durkin's inverse condemnation claims fail. We agree with the Authority that the cases Durkin relies on to support his inverse condemnation claim do not establish a separate category of "disguised" regulatory taking. Instead, they are examples of the various established categories of regulatory takings discussed above.
For instance, Durkin's primary authority, Sneed v. Riverside County (1963)
In Peacock v. County of Sacramento (1969)
Because the adoption of the ALUCP is neither a physical invasion nor the denial of any economically beneficial use of his property, we analyze Durkin's argument as a challenge based on the multi-factor test set forth in Penn Central . In essence, Durkin argues that the value of his property was diminished by the adoption of the plan and, contrary to the Authority's assertion that the plan is an appropriate exercise of the state's police power, the ALUCP is "functionally equivalent to [a] classic taking." ( Lingle,
Durkin's argument omits an important first step required in any regulatory takings analysis. Specifically, was the adoption of the ALUCP a sufficiently final land use determination to support Durkin's inverse condemnation *399claims? None of the cases relied on by Durkin had occasion to address this critical issue. Here, importantly, the Authority did not have the ability to make a final land use decision with respect to Durkin's property. On that basis, we conclude the adoption of the plan was not a sufficiently final land use decision to support Durkin's claims.
The State Aeronautics Act (§§ 21001 et seq.) requires each county in which an airport is located to establish a seven-member Airport Land Use Commission (ALUC), which occupies an advisory role to "assist local agencies in ensuring compatible land uses in the vicinity of" airports. (§ 21674, subd. (a), see § 21670.) By statute, these advisory bodies consist of two representatives of the cities within the county (appointed by a selection committee of the cities' mayors); two representatives of the county, appointed by the county's board of supervisors; two aviation experts appointed by a selection committee comprised of the managers of all of the public airports in the county; and one representative of the general public, appointed by the other six members. (§ 21670, subd. (b).) The Aeronautics Act provides that the ALUC in San Diego County is the Authority and that it "shall be responsible for the preparation, adoption, and amendment of an airport land use compatibility plan for each airport in San Diego County." (§ 21670.3, subd. (a).)
By statute, the Authority's airport compatibility plans may be overruled by local agencies that have responsibility for ultimate zoning determinations. ( § 21676.) Under section 21676, subdivision (b), "[p]rior to the amendment of a general *344plan or specific plan, or the adoption or approval of a zoning ordinance or building regulation within the planning boundary established by the [ALUC] pursuant to Section 21675, the local agency" must "first refer the proposed action to the [ALUC]." However, "[i]f the commission determines that the proposed action is inconsistent with the [ALUC]' s plan, the referring agency" is notified and the local agency may then, "after a public hearing, propose to overrule the commission by a two-thirds vote of its governing body if it makes specific findings that the proposed action is consistent with the purposes of this article stated in Section 21670."10 ( § 21676, subd. (b).) The ALUCP itself also confirms that the local agency retains the final decision making authority for land use determinations within *400the plan's purview. The document's introduction states that "[a]lthough the ALUC has the sole authority to adopt this Compatibility Plan and to conduct compatibility reviews, the authority and responsibility for implementing the compatibility policies rests with the local agencies that control land uses within the [Airport Influence Area]."11
Significantly, in the course of Durkin's ownership of Lot 24 and Lot 25 he twice overcame the Authority's findings that his proposed developments were inconsistent with prior versions of the compatibility plan, and obtained permits from the City overruling the Authority and allowing development of the lots. Because the Authority did not have the ability to make the final land use determination at issue in this case, we agree with the trial court that the Authority met its burden on summary judgment to show Durkin could not establish this element of its takings claim and Durkin failed to show there was a triable issue of material fact.
Our conclusion is further bolstered by decisional law addressing takings claims based on the adoption of general land use plans. In Selby Realty Co. v. City of San Buenaventura (1973)
The Authority is a distinct legal entity from the County and the cities in which airports are located. Its function is to prepare and adopt land use *401compatibility plans for each airport in San Diego County. These plans, by statute, serve "[t]o assist local agencies in ensuring compatible land uses in the vicinity of all new airports and in the vicinity of existing airports to the extent that the land in the vicinity of those airports is not already devoted to incompatible uses." (§ 21674, subd. (a), italics added.) Like a general plan, the ALUCP is a recommendation subject to variance by the City. Also like a general plan, the ALUCP is an overarching planning document. ( Selby, supra , 10 Cal.3d at p. 119,
The arguments advanced by Durkin to overcome the conclusion that adoption of the ALUCP is not a sufficiently final land use determination to constitute a compensable taking are unpersuasive. First, Durkin asserts that the Authority, not the City, is the decision maker because its jurisdiction preempts that of the local planning agencies. This assertion is contradicted by the statutes that created the Authority. As discussed, the Authority does not have the final say on the development of Lot 24 and Lot 25; under the procedures established by the State Aeronautics Act and the ALUCP itself, the City maintains the ultimate power to determine the fate of a specific property.
Durkin's reliance on Muzzy Ranch to state otherwise is misplaced. In Muzzy Ranch , the court held that an ALUC's compatibility plan must pass through the review required by the California Environmental Quality Act (CEQA) ( Pub. Resources Code, §§ 21000 et seq. ). In arguing against imposition of this requirement, the ALUC defendant-the Solana County Airport Land Use Commission (Commission)-asserted its plan was not a sufficiently final land use determination to qualify as an "activity that may cause direct physical change or a reasonably foreseeable indirect physical change in the environment ... so as to constitute a project" subject to review under CEQA. ( Muzzy Ranch, supra , 41 Cal.4th at p. 382,
*346ALUCP]" and "that because the [plan] merely advises the jurisdiction it affects, it cannot be the legal cause of environmental changes that result if the jurisdictions follow its advice." ( Ibid . )
*402The Muzzy Ranch court rejected these arguments, holding that the fact "[t]hat further governmental decisions need to be made before a land use measure's actual environmental impacts can be determined with precision does not necessarily prevent the measure from qualifying as a project" requiring CEQA review. ( Muzzy Ranch, supra , 41 Cal.4th at p. 383,
Muzzy Ranch 's conclusion that an airport compatibility plan is a sufficiently final project for purposes of triggering CEQA review, however, is not inconsistent with our conclusion that such a plan is not a final land use determination for purposes of establishing a taking. Muzzy Ranch itself explains "the definition of project for CEQA purposes is not limited to agency activities that demonstrably will impact the environment. '... CEQA does not speak of projects which will have a significant effect, but those which may have such effect.' " ( Muzzy Ranch, supra , 41 Cal.4th at p. 383,
Durkin next contends the Authority itself construes its decisions as binding on the City. In support, Durkin points to three documents: (1) An unsigned resolution of the Authority finding the City's general plan amendment is consistent with the ALUCP; (2) the introductory section of the *403ALUCP, discussed above, which states that the document "provides compatibility policies and criteria applicable to local agencies in their preparation or amendment of general plans and to landowners in their design of new development;" and (3) a comment letter from the Authority to the City concerning Lot 23, which suggests *347that the City should prepare an environmental impact report pursuant to CEQA before adopting a statement of overriding concerns. Contrary to Durkin's assertion, none of these documents show that the Authority views the ALUCP as binding on the City and the ALUCP explicitly states otherwise. In sum, we conclude the adoption of the ALUCP by the Authority was not a sufficiently final land use determination to support a takings claim. Thus, the trial court properly found Durkin had not shown a triable issue of material fact on his claims for inverse condemnation.13
C
In addition to asserting that the Authority took his property interest by adopting the 2010 ALUCP, Durkin also contends the County should be held liable for the Authority's purported taking because the Authority acted as the County's agent. Given our conclusion that the adoption of the ALUCP did not constitute a regulatory taking, Durkin's claim that the County is vicariously liable for the Authority's action as its principal is moot. ( Jefferson Street Ventures, LLC v. City of Indio (2015)
D
Durkin attempts to make an additional vicarious liability claim based on an indirect beneficiary theory. He argues the County should be held liable for inverse condemnation as the beneficiary of the Authority's adoption of the ALUCP. In support Durkin cites two cases: People ex rel. Dept. of Transportation v. Diversified Properties Company (1993)
*404Because this action was not a sufficiently final land use determination to support a takings claim, the County cannot be held liable as a beneficiary.
Diversified and Jones do not support a different conclusion. Both involve claims of precondemnation damages against Caltrans caused by its delay in pursuing condemnation of property it announced was needed for proposed freeway expansions. The theory of recovery is based on the Supreme Court's decision in Klopping v. City of Whittier (1972)
As we later explain (post , pp. 348-51), Durkin has no claim for precondemnation damages on a Klopping theory because *348there is no evidence that anyone announced the County's intent to condemn his property. More importantly for our purposes, Klopping as applied in Diversified and Jones simply does not support a claim for inverse condemnation every time one governmental agency allegedly receives some economic benefit from another agency's otherwise legitimate land use decision.
In the end, Durkin's "indirect benefit" theory suffers from the same fundamental flaw as his other theories of inverse condemnation. It is based on the Authority's adoption of the ALUCP, which was not a sufficiently final land use determination to support a takings claim.
III
Precondemnation Conduct
Durkin's final contention is that his second and fourth causes of action should not have been dismissed because triable issues of fact remain concerning whether the Respondents engaged in unreasonable precondemnation conduct. The Authority responds that the trial court properly concluded the claims are not viable because Durkin failed to provide any evidence of a public announcement of intent to acquire the properties.
"In Klopping , the Supreme Court held that the [Fifth Amendment's] 'just compensation' requirement is also triggered where, prior to a taking, 'the condemner acts unreasonably in issuing precondemnation statements, either *405by excessively delaying eminent domain action or by other oppressive conduct.' [Citation.] In such circumstances, Klopping held, the Constitution also requires that 'the owner be compensated,' and announced the following rule: in an eminent domain action, 'a condemnee must be provided with an opportunity to demonstrate that (1) the public authority acted improperly either by unreasonably delaying eminent domain action following an announcement of intent to condemn or by other unreasonable conduct prior to condemnation; and (2) as a result of such action the property in question suffered a diminution in market value.' " ( Redevelopment Agency of San Diego v. Mesdaq (2007)
The Supreme Court's Selby decision, discussed above, clarified the limits of a takings claim based on Klopping 's rationale. "In Selby , after the city and county had adopted a general plan indicating the general location of proposed streets, an owner of property depicted as the location through which some of the proposed streets would run brought an action seeking a declaration that there had been a taking under Klopping . ( Selby, supra , at pp. 118-119 [
"Following Klopping and Selby , numerous courts have held that a property owner may recover damages under an inverse condemnation theory where the public entity indicates a firm intention to acquire his or her property and either unreasonably delays prosecuting condemnation proceedings or commences and abandons such proceedings. [Footnote omitted.] (See, e.g., Tilem v. City of Los Angeles (1983)
The trial court found Durkin's claims under Klopping failed because he did not show "a triable issue of material fact as to whether [the] Authority made a public announcement of an intention to acquire either property." We agree. In his briefing, Durkin asserts "[t]he ALUCP announces an intent to condemn in the form of direct statements of the intent." This announcement, Durkin argues, precluded his development of Lot 25 and caused the loss of a prospective tenant and limits his ability to garner higher rents on Lot 24.
In support of this claim that the ALUCP was a public announcement of an intent to condemn the property, Durkin cites five documents: (1) the map contained in the ALUCP which shows the Safety Zones around the airport; (2) section 3.4.12 of the ALUCP, which states there is a presumption "that the airport owner owns or intends to acquire property interests-fee title or easements-sufficient to effectuate" its policy of precluding in Safety Zone 1 "most uses, including any new structures and uses having an assemblage of people"; (3) section 2.11.5 of ALUCP, which states that the local zoning authority should require an avigation easement as a condition for approval of projects located in Safety Zone 1; (4) a 2008 letter from the Authority's airport planner Maranda Thompson to Caltrans seeking acceptance of the enclosed ALP for use by the Authority in connection with its "compatibility planning and preparation of the ALUCP"; and (5) definition pages from the ALUCP.
Contrary to Durkin's assertions, these documents do not evidence the announcement of a plan to condemn Durkin's property. With the exception of section 3.4.12 of the ALUCP, which mentions acquisition of *350property in Safety Zone 1 by the Airport's owner, none of these documents contain any statement, either explicitly or implicitly, concerning acquisition of Durkin's property. Section 3.4.12 of the ALUCP contains a policy statement of the Authority's preference that the Airport's owner acquire property within Safety Zone 1, but it does not direct such action. The provision is also clear *407that acquisition is not contemplated in all circumstances since it identifies acceptable uses of property "[i]n instances where the affected property is privately owned and the airport owner does not intend to acquire property interests ." (Italics added.) This provision of the ALUCP is a far cry from the clear announcements of future condemnation found in the cases on which Durkin relies. (See Klopping, supra , 8 Cal.3d at p. 42,
Citing Terminals Equipment Co. v. City and County of San Francisco (1990)
There are several problems with Durkin's theory as applied to the facts of this case. He relies primarily on the County's 1995 FAA grant application seeking funds to acquire Lots 24 and 25 and a March 1996 letter requesting authorization to use the grant funds for purposes other than acquisition of the property. These documents fall short of demonstrating a publicly communicated unequivocal intent to acquire the property. Rather, they represent a desire to explore possible purchase of the lots if it proved feasible. (See Terminals Equipment , supra , 221 Cal.App.3d at p. 246,
Interest in purchasing property if an acceptable price can be agreed upon is a far cry from an unequivocal intent to acquire. Moreover, even if the 1995 FAA grant application somehow rose to the level of actual intent to condemn *408the property, the very documents relied on by Durkin show that any intent on the County's part was short-lived. By March 1996, five years before Durkin purchased the two *351lots, the County abandoned any plan or interest in acquiring Lots 24 and 25. If there was any artificial effect depressing the price of the two lots, it was necessarily transitory and had long dissipated by the time Durkin acquired his interest in the properties.
Durkin also cites the County's 2013 grant application to the Federal Aviation Administration for funds for the County's Master Plan to "continue the facility planning process described in previous McClellan-Palomar Airport Master Plan Studies (1995-2015), into the next planning period of 2015-2035," which will "define the type and extent of development needed to accommodate the current and future aviation needs as a Federal Aviation Regulation (FAR) Part 139 Certificated National Plan of Integrated Airport Systems (NPIAS) airport." The document, however, contains no reference to acquiring any specific property in connection with planning for the airport.15 Durkin thus failed to meet his burden on summary judgment to overcome Respondents' showing that there was no unreasonable conduct on their part to support a claim under Klopping .
DISPOSITION
The judgment is affirmed. Respondents are awarded costs of appeal.
WE CONCUR:
NARES, Acting P.J.
AARON, J.
Related
Cite This Page — Counsel Stack
224 Cal. Rptr. 3d 333, 16 Cal. App. 5th 383, 2017 WL 4700386, 2017 Cal. App. LEXIS 908, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dryden-oaks-llc-v-san-diego-cnty-regl-airport-auth-calctapp5d-2017.