Redondo Beach Waterfront, LLC v. City of Redondo Beach

CourtCalifornia Court of Appeal
DecidedJuly 9, 2020
DocketB291111
StatusPublished

This text of Redondo Beach Waterfront, LLC v. City of Redondo Beach (Redondo Beach Waterfront, LLC v. City of Redondo Beach) 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
Redondo Beach Waterfront, LLC v. City of Redondo Beach, (Cal. Ct. App. 2020).

Opinion

Filed 7/9/20

CERTIFIED FOR PARTIAL PUBLICATION*

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION THREE

REDONDO BEACH B291111 WATERFRONT, LLC, Los Angeles County Plaintiff and Respondent, Super. Ct. No. BS168564

v.

CITY OF REDONDO BEACH,

Defendant;

BUILDING A BETTER REDONDO et al.,

Intervenors and Appellants.

*Pursuant to California Rules of Court, rules 8.1100, 8.1105(b), and 8.1110(a), this opinion is certified for publication with the exception of part 3 of the Discussion. REDONDO BEACH B294659 WATERFRONT, LLC, Los Angeles County Plaintiff and Respondent, Super. Ct. No. BS168564

Defendant and Respondent;

APPEALS from a judgment and an order of the Superior Court of Los Angeles County, James C. Chalfant, Judge. Affirmed. Angel Law, Frank P. Angel and Ellis Raskin for Intervenors and Appellants. Shumener, Odson & Oh, Betty M. Shumener, Henry H. Oh, and John D. Spurling for Plaintiff and Respondent. Mintz Levin Cohn Ferris Glovsky and Popeo, Jonathan Welner, Antony D. Nash and Samantha J. Duplantis for Defendant and Respondent City of Redondo Beach. _______________________________________

2 INTRODUCTION

In this consolidated opinion, we decide two of the multiple appeals currently pending in this court related to a proposed waterfront development project (the Project) in the City of Redondo Beach (the City). In 2010, a majority of the City’s residents supported improving the waterfront area and to that end passed an initiative laying the groundwork for the City to establish a public-private partnership with a real estate developer. Respondent Redondo Beach Waterfront, LLC (the Developer) has worked with the City and has apparently expended more than $14 million since 2010 in an effort to move the Project forward. In 2016, however, residents of the City passed an initiative (Measure C) that would, if applied to the Project, substantially curtail the Project. The Developer, the City, and individual residents and resident groups (including appellants Wayne Craig, Martin F. Holmes, and Building a Better Redondo, collectively the Residents) are now engaged in Project-related litigation on several fronts. In the published portion of this opinion, we address the primary legal issue presented in this case: whether the Developer has obtained statutory vested rights regarding the Project as against the City and if so, whether those rights vested before or after the passage of Measure C. The Developer contends it obtained vested rights under Government Code section 66498.1, which provides that a local agency’s approval of a vesting tentative map confers upon a developer the right to proceed with development in substantial compliance with the ordinances, policies, and standards in effect at the time the vested tentative map is approved. It is undisputed that the City approved a

3 vesting tentative tract map for the Project prior to the passage of Measure C. The Residents argue the statute does not apply to projects located in a coastal zone (and specifically does not apply to the Project) because such projects require the approval of the California Coastal Commission (Coastal Commission) under the California Coastal Act of 1976 (Coastal Act). Their position is unsupported, however. Although the Residents attempt to make this issue a complicated one, it is not. The City deemed the vesting tentative tract map for the Project complete before city residents passed Measure C. We therefore conclude, as the trial court did, that the Developer has obtained vested rights against the City under Government Code section 66498.1 and those rights vested before the passage of Measure C. We also reject the Residents’ subsidiary argument that the vested rights issue is not ripe for decision. Accordingly, we affirm the judgment in favor of the Developer. In the unpublished portion of this opinion, we address the Residents’ appeal from an order of the court finding they were not a “prevailing party” or a “successful party” in this litigation—a ruling that precludes them from recovering litigation costs under Code of Civil Procedure section 1032 as well as attorney’s fees under Code of Civil Procedure section 1021.5. Because the Residents did not fulfill their litigation objective, i.e., they did not obtain a ruling that would allow Measure C to be applied to the Project, and did not obtain any significant benefit in the litigation, we affirm the order.

4 FACTS AND PROCEDURAL BACKGROUND1

The Waterfront Project The Redondo Beach King Harbor Pier area (the Waterfront) has been, by all accounts, in need of improvement for some time. In 2010, city residents voted on and approved Measure G, which authorized an additional 400,000 square feet of net new development on the Waterfront. Measure G, and specifically the zoning ordinances contained within it, sought to amend the City’s local coastal program2 to permit development in the Waterfront area. The Coastal Commission subsequently certified the amendment and the newly-passed zoning ordinances went into effect. In order to facilitate improvements in the Waterfront, the City acquired leaseholds and other property interests in the area and sought out a private developer to assist with the Project. The City represented that the Project would include renovation of 150,000 square feet of existing building area and up to 400,000

1 The court construed the Developer’s motion (titled “motion for determination of bifurcated issues”) as, essentially, a motion for judgment on the pleadings. Accordingly, the court based its ruling upon those allegations of the verified petition admitted in the City’s first amended answer, and upon matters of which it took judicial notice. We take judicial notice of those matters as well. (Evid. Code, § 459, subd. (a).) 2 Under the Coastal Act, a city such as Redondo Beach that includes areas of coastal zone within its boundaries must adopt a local coastal program consisting of a land use plan and zoning ordinances governing land use in coastal zones. Local coastal programs must be certified by the Coastal Commission as in compliance with the Coastal Act. (See generally 7 Miller & Starr, Cal. Real Estate (4th ed. 2019) §21:37, pp. 21-249 to 21-259.)

5 square feet of new development. Ultimately, the City selected CenterCal Properties, LLC, the Developer’s predecessor-in- interest, as the developer for the Project.3 In 2013, the Developer and the City entered into an exclusive negotiating agreement regarding the Project. In June 2016, the Developer submitted an application for approval of the Project which included a vesting tentative tract map. The City notified the Developer in writing on June 23, 2016 that its application for approval of Vesting Tentative Tract Map No. 74207 (the Map) was “deemed complete.” In early August 2016, the Harbor Commission certified the Environmental Impact Report (EIR) and approved the coastal development permit, conditional use permit, Harbor Commission design review, and the Map for the Project (collectively, Waterfront Entitlements). The Harbor Commission’s decision was appealed to the City Council, which approved the Waterfront Entitlements on October 18 and 19, 2016 by Resolution No. CC- 1016-099.4 The resolution explicitly noted that the City’s approval of the Map “shall confer a vested right to proceed with development in substantial compliance with the ordinances, policies, and standards described in Section 66474.2 of the Government Code of the State.” In January 2017, the Project continued to move forward as the City and the Developer signed an Agreement for Lease of Property and Infrastructure Financing (the Agreement) that

3We refer to CenterCal Properties, LLC and Redondo Beach Waterfront, LLC collectively as the Developer.

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Redondo Beach Waterfront, LLC v. City of Redondo Beach, Counsel Stack Legal Research, https://law.counselstack.com/opinion/redondo-beach-waterfront-llc-v-city-of-redondo-beach-calctapp-2020.