Vacation Rental Owners and Neighbors of Rancho Mirage v. City of Rancho Mirage CA4/2

California Court of Appeal·Decided July 11, 2023·No. E077462·Unpublished

Opinion

Filed 7/11/23 Vacation Rental Owners and Neighbors of Rancho Mirage v. City of Rancho Mirage CA4/2 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA FOURTH APPELLATE DISTRICT DIVISION TWO

VACATION RENTAL OWNERS AND NEIGHBORS OF RANCHO MIRAGE et al., E077462

Plaintiffs and Respondents, (Super.Ct.No. CVRI2100368)

v. OPINION CITY OF RANCHO MIRAGE et al., Defendants and Appellants.

APPEAL from the Superior Court of Riverside County. Russell L. Moore, Judge.

Affirmed.

Law Offices of Quintanilla & Associates, Michael R. Cobden, Steven B.

Quintanilla, Colin D. Kirkpatrick; Colantuono, Highsmith & Whatley, Holly O. Whatley, and Alena Shamos, for Defendants and Appellants.

Slovak, Baron, Empey, Murphy & Pinkney, and Shaun M. Murphy for Plaintiffs and Respondents.

In December 2020, Ordinance No. 1174 (Ordinance 1174) became effective in the City of Rancho Mirage (the City). The ordinance prohibits short-term rentals in most residential neighborhoods in the City. In July 2021, the trial court modified a preliminary injunction to require the City to process certain residential property owners’ applications for short-term rental certificates based on the law as it existed before Ordinance 1174. The City and its city council (collectively, the municipal defendants) appeal from the order modifying the preliminary injunction. We affirm the order.

BACKGROUND

A. The City’s Regulation of Short-Term Rentals In November 2020, the city council approved and adopted Ordinance 1174, which became effective the following month. Ordinance 1174 was added to Title 3 of the City’s municipal code.

Ordinance 1174 prohibits short-term rentals in all public neighborhoods and in any common interest development imposing such a restriction. Public neighborhoods are defined as nongated neighborhoods not governed by conditions, covenants, and restrictions (CC&Rs) and in which residential parcels abut public streets. Common interest developments are defined as any development subject to the provisions of the Davis–Stirling Common Interest Development Act, Civil Code section 4000 et seq. and as defined in section 4100 of the Civil Code, “including without limitation homeowners associations, condominium owner associations and similar associations formed pursuant to the aforementioned Act.” (Boldface and underlining omitted.) Civil Code section

4100 provides: “‘Common interest development’ means any of the following: [¶] (a) A community apartment project. [¶] (b) A condominium project. [¶] (c) A planned development. [¶] (d) A stock cooperative.”

To rent an eligible property as a short-term rental, an owner must obtain a short-

term rental certificate from the City. The certificate must be renewed annually. Any property owner who had a valid certificate when Ordinance 1174 became effective for a property that was made ineligible for short-term rentals by the new law would not be permitted to renew the certificate or to apply for a new certificate.

According to the recitals in Ordinance 1174, the city council adopted the new law because the city council found that even though short-term rentals provided the City with additional tax revenue, “there [were] various secondary negative effects associated with the use of residential dwellings as short-term rentals in residential neighborhoods.” Staff members of the City had monitored the impacts that short-term rentals had on neighborhoods and had received complaints and feedback concerning short-term rentals. The City’s staff recommended that the city council adopt a ban on short-term rentals as outlined in Ordinance 1174 “to preserve the public health, safety, welfare and character” in public neighborhoods and in common interest developments that had “determined that short-term rentals are not a permitted use of property.” B. The Lawsuit In January 2021, Vacation Rental Owners and Neighbors of Rancho Mirage (Vacation Rental), Allicia Louisa Davis, Scott Shanstrom, Mary Pavlica, and RM

Vacation Rentals LLC (a vacation rental company in which Shanstrom was the sole member and manager) (collectively, petitioners) filed a verified petition for writ of mandate and a complaint for declaratory and injunctive relief (the petition) against the municipal defendants and the individual city council members. (The councilmembers have been dismissed from the lawsuit, so we do not discuss them further.) The petition contained 13 causes of action challenging the constitutionality and validity of Ordinance 1174, including that the municipal defendants violated the California Environmental Quality Act (CEQA) when enacting the ordinance.

Numerous exhibits were attached to the petition, including October and November 2020 reports from the City’s staff to the city council about short-term rentals. The October 2020 report recommended prohibiting short-term rentals in “a public district.” Several maps of various districts within the City were attached to the October 2020 report. The maps were not mentioned in the report, and the report did not describe what the maps depicted. In the November 2020 report, the City’s staff recommended adopting Ordinance 1174 specifically. Two maps were attached to the November 2020 report: (1) a heat map depicting short-term rentals about which the City had received complaints, and (2) a district map. Those two maps are not included in the record on appeal. C. The Preliminary Injunction In February 2021, petitioners moved for a preliminary injunction to enjoin enforcement of Ordinance 1174 while the litigation was pending. Petitioners argued that

they were likely to succeed on the merits of many of their claims, including the CEQA claim, and would suffer irreparable harm without such an injunction.

Petitioners claimed that in analyzing whether applicants were eligible for short-

term rental certificates under the new law, the City was using a map on their website that depicted districts in which short-term rentals were purportedly allowed or banned. Petitioners argued that the online short-term rental map differed from the maps attached to the October and November 2020 staff reports that purported to depict areas in which short-term rentals were banned. According to a supporting declaration from petitioners’ attorney, several changes were made to the online map between December 11, 2020, and January 29, 2021. Areas that were previously designated as being within a common interest development that permitted short-term rentals were redesignated as areas that were not in common interest developments and in which short-term rentals were banned. Copies of the online maps from the different time periods were attached to the declaration.

Twenty seven individual members of Vacation Rental who owned short-term rental properties in the City filed declarations in support of the motion. Petitioners’ attorney also filed a declaration in support of the motion. She summarized the data contained in the individuals’ declarations and described how the new law had impacted them.

Mary Davis is one of the Vacation Rental members who filed a declaration in support of the motion. She and her husband were the sole managers and members of two

limited liability companies that owned three residential properties in the City that had been used as short-term rental properties. Mary D. attested that the properties were not located in gated communities and were not governed by homeowners’ associations or CC&Rs.1 The municipal defendants opposed the motion, arguing that money damages provided petitioners adequate relief and that petitioners had failed to demonstrate that they were irreparably harmed by Ordinance 1174.

Free access — add to your briefcase to read the full text and ask questions with AI

Vacation Rental Owners and Neighbors of Rancho Mirage v. City of Rancho Mirage CA4/2, (Cal. Ct. App. 2023).

Vacation Rental Owners and Neighbors of Rancho Mirage v. City of Rancho Mirage CA4/2 (Vacation Rental Owners and Neighbors of Rancho Mirage v. City of Rancho Mirage CA4/2) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Conover v. Hall
523 P.2d 682 (California Supreme Court, 1974)
Reserve Insurance Co. v. Pisciotta
640 P.2d 764 (California Supreme Court, 1982)
Continental Baking Co. v. Katz
439 P.2d 889 (California Supreme Court, 1968)
People Ex Rel. Gallo v. Acuna
929 P.2d 596 (California Supreme Court, 1997)
Cohen v. Board of Supervisors
178 Cal. App. 3d 447 (California Court of Appeal, 1986)
Sundance Saloon, Inc. v. City of San Diego
213 Cal. App. 3d 807 (California Court of Appeal, 1989)
7978 CORPORATION v. Pitchess
41 Cal. App. 3d 42 (California Court of Appeal, 1974)
People v. Coit Ranch, Inc.
204 Cal. App. 2d 52 (California Court of Appeal, 1962)
Novartis Vaccines & Diagnostics, Inc. v. Stop Huntingdon Animal Cruelty USA, Inc.
50 Cal. Rptr. 3d 27 (California Court of Appeal, 2006)
Whyte v. Schlage Lock Company
125 Cal. Rptr. 2d 277 (California Court of Appeal, 2002)
Loeffler v. Medina
174 Cal. App. 4th 1495 (California Court of Appeal, 2009)
Art Movers, Inc. v. Ni West, Inc.
3 Cal. App. 4th 640 (California Court of Appeal, 1992)
Jackson v. County of Los Angeles
60 Cal. App. 4th 171 (California Court of Appeal, 1997)
Varian Medical Systems, Inc. v. Delfino
106 P.3d 958 (California Supreme Court, 2005)
Campbell v. Regents of University of California
106 P.3d 976 (California Supreme Court, 2005)
People Ex Rel. Lockyer v. Shamrock Foods Co.
11 P.3d 956 (California Supreme Court, 2000)
Johnson v. City of Loma Linda
5 P.3d 874 (California Supreme Court, 2000)
Jarrow Formulas, Inc. v. LaMarche
74 P.3d 737 (California Supreme Court, 2003)
Garcia v. Seacon Logix CA2/4
238 Cal. App. 4th 1476 (California Court of Appeal, 2015)
Van v. Language Line Services
8 Cal. App. 5th 73 (California Court of Appeal, 2017)