Mani Bros. Real Estate Group v. City of Los Angeles

64 Cal. Rptr. 3d 79, 153 Cal. App. 4th 1385, 37 Envtl. L. Rep. (Envtl. Law Inst.) 20203, 2007 Cal. App. LEXIS 1284
CourtCalifornia Court of Appeal
DecidedAugust 3, 2007
DocketB194309
StatusPublished
Cited by45 cases

This text of 64 Cal. Rptr. 3d 79 (Mani Bros. Real Estate Group v. City of Los Angeles) 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
Mani Bros. Real Estate Group v. City of Los Angeles, 64 Cal. Rptr. 3d 79, 153 Cal. App. 4th 1385, 37 Envtl. L. Rep. (Envtl. Law Inst.) 20203, 2007 Cal. App. LEXIS 1284 (Cal. Ct. App. 2007).

Opinion

Opinion

BOREN, P. J.

This case involves changes in the plan for a large real estate development project in downtown Los Angeles and compliance with the requirements of the California Environmental Quality Act (CEQA) (Pub. Resources Code, § 21000 et seq.). 1 The underlying issue is whether the original 1989 environmental impact report (EIR) with an updated 2005 addendum is sufficient, or whether the changes in the plan are such that it constitutes an entirely “new project” requiring a new EIR or, alternatively, whether the changes in the project trigger such new and significant environmental impacts that a supplemental EIR (SEIR) must be prepared.

Mani Brothers Real Estate Group and 8th & Francisco, LLC (collectively, Mani Brothers), rival developers and landowners, challenge the project. Mani Brothers contend that the “Modified Project” is so different as to constitute a new project, and that it will have new or more severe environmental effects than the originally approved project due to an increase in square footage, building height, and a change in use from office to residential.

However, we find that the focus on whether the changes amount to a “new project” is not determinative under CEQA. Under the applicable substantial evidence standard of review, but for the issue of police services, the Modified Project’s substitution of residential use in place of some office, retail, and cultural uses results in fewer significant impacts compared to the “Original *1389 Project,” even though the overall square footage and floor area are somewhat larger in the Modified Project.

We thus affirm the judgment of the trial court denying a peremptory writ of mandate and upholding (except as to the issue of police services) the decision of the City of Los Angeles, the City Council of the City of Los Angeles, and the Community Redevelopment Agency of Los Angeles (CRA) (collectively referred to as the City) to approve the Modified Project (with the “2005 Addendum”) by IDS Equities, LLC, and to require an SEIR on only one issue. The trial court properly granted a peremptory writ of mandate limited to ordering “a SEIR that deals with the necessity for increased police services required by the new, predominately residential project, as opposed to the old, commercial project that was approved by the 1989 EIR.”

FACTUAL AND PROCEDURAL SUMMARY

Overview of the Original Project and the 1989 EIR.

The project in question is located on approximately 6.3 acres in downtown Los Angeles, an area generally bounded by the Harbor Freeway, the Ninth Street (renamed James M. Wood Boulevard) northbound freeway off-ramp, Francisco Street, and Eighth Street. The project is in a central business district redevelopment area and is currently vacant land used for parking lots.

The Original Project was reviewed under CEQA. In 1989, an EIR was certified by the CRA, a public agency charged with attracting private investment in economically depressed areas (Health & Saf. Code, § 33000 et seq.), which must review and approve all projects in the central business district before a building permit can be issued. The CRA acted as the “lead agency” on the project under CEQA Guidelines (see Cal. Code Regs., tit. 14, §§ 15050, 15051; hereinafter, Guidelines) and was responsible for ensuring compliance with CEQA and for certifying the final EIR (FEIR). The Original Project analyzed in the 1989 EIR consisted of five buildings with approximately 2.7 million square feet of development, including offices, a 550- to 770-room hotel, retail facilities, and an optional cultural center. The structures included three 30-story towers, one 36-story tower, and one seven-story building.

The 1989 EIR discussed the environmental impact in numerous areas, such as land use and planning, urban design and historic resources, shadow and wind, transportation, circulation and parking, climate and air quality, noise, energy, hazardous materials, public services and utilities, employment, housing, and fiscal factors. The EIR recommended mitigation measures for certain impacts and examined alternatives, but concluded that even with mitigation *1390 measures, the project “would result in unavoidable significant adverse impacts in the areas of traffic generation, air quality, and increased demand for water, sewer capacity, solid waste, and the provision of police and fire services.”

Approvals for the Original Project, and then delays and changed real estate, market conditions.

In 1990, the CRA approved the Original Project, including an owner participation agreement (OPA), with a public benefits plan and a transfer of floor area ratio (TEAR) plan, and it adopted CEQA findings. Later in 1990, the Los Angeles City Council reviewed and approved the TEAR plan and ratified the OPA for the project with the developer of the Original Project, City Center Development. In 1992, the City and the developer of the Original Project entered into a development agreement.

The Original Project analyzed under CEQA entailed several approvals over the course of time. Some of the CRA and City approvals have occurred, such as approval of the concept master plan, but other approvals have not yet occurred, such as approvals of the concept design drawings and certificates of completion. Full implementation of the project was delayed by litigation (see A Local & Regional Monitor v. City of Los Angeles (1993) 12 Cal.App.4th 1773 [16 Cal.Rptr.2d 358]), which left the developer in what was then a weak real estate leasing market in the early 1990’s.

Between 1994 and 2003, the project’s OPA was refined several times by five implementation agreements, extending the time for the developer’s performance. The project was also revised in 2000 to change some of the conditions of approval related to the subsurface of certain streets. The CRA prepared a CEQA addendum (the 2000 Addendum) for the project revisions approved at that time. The 2000 Addendum also updated the FEIR analysis and conclusions by evaluating if “changes in environmental or regulatory conditions have the potential to alter the findings regarding the project’s impacts contained in the previously certified FEIR.”

As part of the fifth and final implementation agreement, the CRA required the project developer to undertake a market study to analyze current market conditions and recommend a possible revised approach to the project. In October of 2003, the market study was completed and submitted to the CRA. The market study indicated, in pertinent part, that there was a strong demand for residential development in the downtown area.

The 2005 Addendum.

In light of the changed and improved real estate market conditions indicating a transition to a residential and mixed-use environment, in May of *1391 2004, the project developer formally requested that the CRA revise the project to permit residential uses. The CRA, acting as the lead agency, initiated an assessment of whether additional review under CEQA was required for the purposes of a modified project.

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64 Cal. Rptr. 3d 79, 153 Cal. App. 4th 1385, 37 Envtl. L. Rep. (Envtl. Law Inst.) 20203, 2007 Cal. App. LEXIS 1284, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mani-bros-real-estate-group-v-city-of-los-angeles-calctapp-2007.