Security National Guaranty, Inc. v. California Coastal Commission

71 Cal. Rptr. 3d 522, 159 Cal. App. 4th 402, 38 Envtl. L. Rep. (Envtl. Law Inst.) 20030, 2008 Cal. App. LEXIS 131
CourtCalifornia Court of Appeal
DecidedJanuary 25, 2008
DocketA114647
StatusPublished
Cited by23 cases

This text of 71 Cal. Rptr. 3d 522 (Security National Guaranty, Inc. v. California Coastal Commission) 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
Security National Guaranty, Inc. v. California Coastal Commission, 71 Cal. Rptr. 3d 522, 159 Cal. App. 4th 402, 38 Envtl. L. Rep. (Envtl. Law Inst.) 20030, 2008 Cal. App. LEXIS 131 (Cal. Ct. App. 2008).

Opinion

Opinion

NEEDHAM, J.

The principal question that we must resolve in this appeal is whether the California Coastal Act of 1976, Public Resources Code section 30000 et seq. (the Coastal Act), 1 empowers the California Coastal Commission (the Commission) to declare that property is an “environmentally sensitive habitat area” (ESHA) (§ 30240) during an administrative appeal from a local government’s grant of a coastal development permit (CDP). Appellant Security National Guaranty, Inc. (SNG), challenges three orders of the superior court: the denial of SNG’s petition for writ of administrative mandamus, the denial of SNG’s motion to remand the matter to the Commission for further proceedings, and the grant of summary adjudication to the Commission.

We conclude that the Coastal Act grants the Commission no power to declare property an ESHA during a CDP appeal. Accordingly, we reverse the superior court’s denial of SNG’s petition for administrative mandamus. We affirm the superior court’s grant of summary adjudication.

Factual and Procedural Background

The SNG Site

Appellant SNG owns, and seeks to develop, a 39-acre oceanfront site located west of State Highway 1 on Monterey Bay in Sand City. From 1927 to about 1986, the Lonestar Company conducted one of the largest commercial sand mining operations in the western United States on the land now owned by SNG. Lonestar excavated and sold sand for industrial, commercial, and consumer uses. The sand mining operations left the site in an *408 environmentally degraded condition, with an excavation pit near the middle of the property.

For many years after its incorporation in 1960, Sand City was the site of a number of businesses engaged in heavy commercial and industrial activities. Beginning in the 1970’s, however, many of these businesses closed. Recognizing the city’s need for economic recovery and development, Sand City sought to provide for commercially viable resort and recreational development on designated portions of its coastline.

Sand City’s Local Coastal Program

In the early 1980’s, Sand City formulated its local coastal program (LCP). 2 The LUP adopted by Sand City designated what is now SNG’s site for visitor-serving commercial uses. The original LUP also identified and mapped locations that were ESHA’s. Section 4.2.4 of the LUP noted the existence of dune areas along the coast, explaining that the dunes were divided into two distinct locations—one east of Highway 1 and one west of Highway 1. As to the area west of the highway (and closest to the ocean), the LUP stated that “[t]he area provides no natural habitats . . .” and that no ESHA’s existed west of Highway 1. The only ESHA’s identified and mapped in the LUP were located east of Highway 1. No ESHA’s were mapped on what is now SNG’s site, which is located entirely west of the highway. The LUP designated the property at issue in this appeal for visitor-serving commercial uses, with a density not to exceed 650 units.

The Commission concluded that Sand City’s LCP met the requirements of the Coastal Act and certified the LCP as consistent with the Coastal Act’s goals and policies. During the certification process, the Commission proposed, and Sand City adopted, a number of modifications to the city’s LCP. After these modifications, the Commission granted the Sand City LCP final certification on March 14, 1986.

In 1990, the Commission conducted a “periodic review” of Sand City’s LCP pursuant to section 30519.5. The periodic review resulted in the Commission making 59 recommendations to Sand City, including both LCP *409 amendments and other actions. The record discloses no suggestion from the Commission that the property at issue in this appeal be designated an ESHA.

The Memorandum of Understanding

Beginning in the late 1980’s, the Monterey Peninsula Regional Park District (the Park District) attempted to amend Sand City’s LCP to make parks and open space the preferred use on all lands west of Highway 1. In addition, the Park District and the state Department of Parks and Recreation (the Parks Department) sought to acquire coastal land within Sand City for park purposes. Sand City vigorously resisted the Park District’s efforts, because it wished to preserve certain coastal parcels for development to ensure a stable fiscal future for the city. Sand City eventually sued the Park District to challenge, among other things, the Park District’s land acquisition program in the city.

The controversy between Sand City and the park agencies continued for years. In 1995, then state Senate Majority Leader Henry Mello intervened to mediate the coastal development dispute. Senator Mello arranged a meeting between the representatives of Sand City, the Park District, the Parks Department, and the Commission. As a result of this initial meeting, the interested parties formed a “discussion group” in an effort to resolve the conflict. After further meetings of this discussion group, the interested parties agreed to settle their differences by executing a “memorandum of understanding” (MOU).

On April 8, 1996, representatives of Sand City, the Sand City Redevelopment Agency, the Park District, and the Parks Department signed the MOU. The Commission was not a party to the agreement. Among other things, the MOU recognized the need for both “appropriate development” within Sand City and for the protection of coastal views, dunes, and public access to the beach. In particular, one of the MOU’s stated objectives was to “[ejnable appropriate public and private development... to occur along the Sand City Coastline; including but not limited to visitor serving and residential uses.” The MOU also recognized that the site formerly used by the Honestar Company was subject to an option to purchase by a “private development company.” That company was SNG.

With regard to the former Honestar site, the MOU provided that during “the active period of the option ... or in the event the option is exercised, *410 [the Parks Department], the [Park District], and [Sand City] agree to recognize and respect the option agreement and the option holder’s right to pursue development of the Lonestar Site consistent with the Sand City LCP.” During that same period, the Park District and the Parks Department agreed to cease their efforts to acquire the former Lonestar site. The Park District further agreed that it would revise its application to amend the Sand City LCP to exclude the Lonestar site from the amendment. Thus, the MOU contemplated that the bulk of Sand City’s coastline west of Highway 1 would be set aside for park uses, but that in two specific areas, including the Lonestar site (now SNG’s property), commercial and residential uses would be permitted.

Finally, the MOU provided that Sand City and the Sand City Redevelopment Agency would dismiss their action against the Park District.

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Bluebook (online)
71 Cal. Rptr. 3d 522, 159 Cal. App. 4th 402, 38 Envtl. L. Rep. (Envtl. Law Inst.) 20030, 2008 Cal. App. LEXIS 131, Counsel Stack Legal Research, https://law.counselstack.com/opinion/security-national-guaranty-inc-v-california-coastal-commission-calctapp-2008.