Linda Vista Village San Diego HOA v. Tecolote Investors

California Court of Appeal·Decided February 9, 2015·No. D064741·Published

Opinion

Filed 1/27/15 Certified for Publication 2/9/15 (order attached)

COURT OF APPEAL, FOURTH APPELLATE DISTRICT DIVISION ONE

STATE OF CALIFORNIA

LINDA VISTA VILLAGE SAN DIEGO D064741 HOMEOWNERS ASSOCIATION, INC.,

Plaintiff and Appellant, (Super. Ct. No. 37-2012-00085269-

v. CU-MC-CTL)

TECOLOTE INVESTORS, LLC, et al., Defendants and Respondents.

APPEAL from a judgment of the Superior Court of San Diego County, Judith F.

Hayes, Judge. Affirmed; motion for judicial notice granted in part and denied in part.

Tatro & Zamoyski, Peter A. Zamoyski; Boudreau Williams and Jon R. Williams for Plaintiff and Appellant.

Duckor Spradling Metzger & Wynne, Anna F. Roppo, Douglas W. Lytle and Robert M. Shaughnessy for Defendants and Respondents Tecolote Investors, LLC, C.H. Harp and Joan E. Harp (deceased), trustees of the C.H. Harp Family Trust; River Paradise Partnership; Stephen Leonard Fox and Lynda K. Fox, trustees of Fox Revocable Trust and Matthew Follett.

Jan I. Goldsmith, City Attorney, Daniel F. Bamberg, Assistant City Attorney and Carmen A. Brock, Deputy City Attorney, for Defendant and Respondent City of San Diego.

This matter comes to us on a judgment of dismissal of a complaint for declaratory and other relief, brought by plaintiff and appellant Linda Vista Village San Diego Homeowners Association, Inc. (Appellant). Its members are sublessees of mobilehome park lots on a real property site (the park site) that is subject to a 1979 master lease between the landowner defendant and respondent, the City of San Diego (the City), and the predecessors of defendants and Respondents Tecolote Investors, LLC, et al. (Landlord Defendants).1 The master lease for the park site was entered into after the City negotiated with developers to provide low income housing opportunities there.

Appellant's complaint was filed in 2012 against the Landlord Defendants and the City (together Respondents), and alleges that the park site is located on and should be properly characterized as "Pueblo lands," within the meaning of San Diego City Charter section 219 (section 219). This section and its predecessors since 1909 have been applied to certain Pueblo lands north of the San Diego River to require approval by City Council ordinance and City voters for any sale or lease of them for more than 15 years.2 (See

1 Additional Landlord Defendants and respondents are C.H. Harp and Joan E. Harp (deceased), trustees of the C.H. Harp Family Trust; River Paradise Partnership; Stephen Leonard Fox and Lynda K. Fox, trustees of Fox Revocable Trust and Matthew Follett.

2 Section 219 reads in relevant part: "No sale of Pueblo Lands owned by The City of San Diego which are situated North of the North line of the San Diego River shall ever be valid and binding upon said City unless such sale shall have been first

DeYoung v. City of San Diego (1983) 147 Cal.App.3d 11, 15, 21 (DeYoung) [terms "sell or convey" impliedly include the power to lease].)

Since no voter approval was sought or obtained for this transaction, Appellant alleges the City was without power to enter into the existing 55-year master lease of the park site with the Landlord Defendants (or their predecessors). As a consequence, Appellant seeks decrees to invalidate the master lease and consequently its subleases, specifically attacking the 1983 City-approved provisions allowing periodic rent increases. Appellant also claims entitlement to various other types of relief, such as damages.

Following demurrer proceedings and a hearing on Appellant's motion for preliminary injunction, the trial court sustained the Landlord Defendants' demurrer without leave to amend, and denied the requested injunctive relief. At the joint hearing on the motions, Respondents presented to the trial court extensive historical documentation of the chain of title of the park site and its vicinity, through judicial notice requests and also by lodgment of exhibits in connection with authenticating declarations. According to the recorded ownership history of the park site and surrounding areas, at the close of the California Spanish-Mexican period and under the treaty of Guadalupe Hidalgo, the United States came into ownership in 1847 of many parcels of "Pueblo lands," including numbers 1190 and 1196, where this 74-acre park site is contained (designated here "the parcels"). (See Richert v. City of San Diego (1930) 109 Cal.App.

authorized by an ordinance duly passed by the Council and thereafter ratified by the electors of The City of San Diego at any special or general municipal election. The City Manager shall have authority to lease Pueblo Lands, provided that any lease for a term exceeding one year shall not be valid unless first authorized by ordinance of the Council. No lease shall be valid for a period of time exceeding fifteen years."

548, 555-556 (Richert).) By the 1850's and as confirmed by an 1874 patent deed, the United States recognized the claim of the City to all property rights in those historic Pueblo lands.

Beginning in the 1850's, the City transferred its ownership of many of the Pueblo lands properties to various private landowners, starting with railroad companies, which in turn made additional conveyances. In the 1940's, all existing private landowners of approximately 297 acres around and including the parcels became subject to judgments of eminent domain takings by the federal government. In 1959, the federal government recorded a quitclaim deed back to the City of all those holdings. In the 1970's, after the Landlord defendants' predecessor agreed to provide low income housing opportunities on the parcels, the 1979 master lease was signed.3 Against this historic backdrop, Appellant argues on appeal that the trial court utilized the wrong legal standards in sustaining the demurrer, and abused its discretion in denying leave to amend the pleading. Appellant contends the master lease entered into between the Respondents, as amended and assigned, was invalid, void, or voidable, for lack of compliance with the voter approval term of section 219. Based on Appellant's

3 The parcels have had several historic designations, beginning for our purposes with Pueblo Lands Nos. 1190 and 1196 in the U.S.-City patent deed (from an 1800's map, the Pascoe Map). A 1957 County survey map changed the designations of Pueblo Lands Nos. 1190 and 1196 (and other adjoining Pueblo Lands parcels) to Parcels Nos. 11, 12, 13, 14, and 15, all amounting to 297.3437 acres then owned by the federal government. In 1959, the federal government quitclaimed to the City all the parcels it had taken. In the 1997 assignment of the lease to the Landlord defendants, the description of the park site within the parcels, as found in a 1980 recorded map, is Lots 1 through 4 of Linda Vista Village. For purposes of charter interpretation, we refer to the parcels as a whole, even though the park site occupies only a portion of them.

broad interpretation of this charter provision for voter approval of transfer of Pueblo lands, it argues that regardless of the history of title of the parcels, it can successfully amend to allege that the "reacquired" parcels retained "the nature of Pueblo lands" and should still be "classified" or characterized as Pueblo lands that are subject to these charter restrictions on transfers.

Appellant thus contends these parcels remain within the protections and prohibitions of section 219, even though they were released from City ownership for years but were then returned to it. Appellant seems to argue that the charter requirement of voter approval survived all transfers of the parcels, including the eminent domain proceedings, even if the Pueblo lands regulation became dormant or " 'quiescent' " at times. (See U.S. v. 32.42 Acres of Land, More or Less, Located in San Diego County, Cal. (9th Cir. 2012) 683 F.3d 1030, 1034 (U.S. v. 32.42 Acres of Land).)

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