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98 Cal.Rptr.2d
334, 00 Cal. Daily Op. Serv. 6141 FRIENDS
OF MAMMOTH et al., Plaintiffs and Appellants, v. TOWN
OF MAMMOTH LAKES REDEVELOPMENT AGENCY et al., Defendants and Respondents; MAMMOTH
MOUNTAIN SKI AREA et al., Interveners and Respondents. FRIENDS
OF MAMMOTH et al., Plaintiffs and Appellants, v. TOWN
OF MAMMOTH LAKES et al., Defendants and Respondents; MAMMOTH MOUNTAIN SKI AREA
et al., Interveners and Respondents. No.
C029659., No. C031043. Court
of Appeal, Third District, California. July
21, 2000. SUMMARY A
town and its redevelopment agency began the process established by the
Community Redevelopment Law (Health & Saf. Code, 33000 et seq.) to adopt a
redevelopment plan, which included the preparation of an environmental impact
report (EIR) pursuant to the California Environmental Quality Act (CEQA) (Pub.
Resources Code, 21000 et seq.). The town certified the EIR and approved the
redevelopment plan, which authorized 72 separate development projects.
Interested parties brought two actions against the town: a mandamus action, in
which plaintiffs claimed the EIR failed to comply with the requirements of
CEQA; and, a validation action, in which they claimed the redevelopment plan
did not comply with the Community Redevelopment Law. The trial court determined
both the EIR and the redevelopment plan complied with governing law and entered
judgments accordingly. (Superior Court of Mono County, Nos. 12308 and 12334, N.
Edward Denton, Judge.) The
Court of Appeal reversed the judgments, directing the trial court to issue the
writ of mandate to plaintiffs in their CEQA action and to enter judgment in
favor of plaintiffs in the redevelopment action. The court held that the EIR
violated CEQA by failing to analyze the indirect or secondary environmental impacts
likely to be caused by each of the 72 proposed projects included in the
redevelopment plan. By defining a redevelopment plan and all of its proposed
projects as a single project under CEQA, the *512 Legislature implied that as much environmental review as
possible should occur at the outset of the redevelopment process, with
subsequent review limited to situations where significant changes or new
information on the plan's constituent projects becomes available (Pub.
Resources Code, 21090, 21166). The town's failure to analyze the impacts caused
by each proposed project, to the extent information was known or reasonably
could have been known about each project, constituted a failure to proceed in
the manner required by CEQA. The court also held that no substantial evidence
existed in the record to justify a finding that the project area was
characterized by any of the statutory conditions that caused blight, so as to
qualify the area as blighted under the Community Redevelopment Law. The
evidence did not support findings that the project area was characterized by
unsafe or unhealthy buildings, factors that prevented or substantially hindered
the economically viable use of buildings or lots, or by adjacent or nearby
incompatible uses that prevented economic development (Health & Saf. Code,
33031, subd. (a)(1)-(3)). (Opinion by Nicholson, J., with Blease, Acting P. J.,
and Sims, J., concurring.) COUNSEL Kane,
Ballmer & Berkman, Murray O. Kane, R. Bruce Tepper, Jr., and Stephanie R.
Scher for Plaintiffs and Appellants in Nos. C029659 and C031043. McDonough,
Holland & Allen and T. Brent Hawkins for the Counties of Del Norte,
Humboldt, Kern, Lassen, Los Angeles, Madera, Merced, Nevada, Riverside, San
Benito, Santa Clara, Santa Cruz, Tulare and Yolo as Amici Curiae on behalf of
Plaintiffs and Appellants in No. C031043. Peter
E. Tracy, Town Attorney; Stephen M. Place; Sabo & Green, Charles R. Green,
James C. Fedalen and William P. Medlen for Defendants and Respondents in Nos.
C029659 and C031043. Landels,
Ripley & Diamond, Michael H. Zischke, Ted Stevens for the Cities of Albany,
Bishop, Garden Grove, Hayward, Piedmont, San Juan Capistrano, Sierra Madre and
Temple City as Amici Curiae on behalf of Defendants and Respondents in No.
C029659. Carol
A. Korade for City of Alameda as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Sonia
R. Carvalho for Cities of Azusa and Claremont as Amici Curiae on behalf of
Defendants and Respondents in No. C029659. Bart
J. Thiltgen for City of Bakersfield as Amicus Curiae on behalf of Defendants
and Respondents in No. C029659. Richard
M. Manning for City of Capitola as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Ronald
R. Ball for City of Carlsbad as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Michael
G. Colantuono for City of Cudahy as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Alan
J. Peake for City of Delano as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. *518 Michael
Jenkins for the Cities of Diamond Bar and West Hollywood as Amici Curiae on
behalf of Defendants and Respondents in No. C029659. Brad
L. Fuller for City of Eureka as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Harvey
E. Levine for City of Fremont as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Linda
A. Callon for City of Gilroy as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. John
R. Harper for City of Grand Terrace as Amicus Curiae on behalf of Defendants
and Respondents in No. C029659. Francis
R. Ruggieri for City of Gustine as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. David
R. McEwen for City of Lancaster as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Charles
J. Williams for City of Lafayette as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Thomas
R. Curry for City of Livermore as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Randall
A. Hays for City of Lodi as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Robert
E. Shannon for City of Long Beach as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Joseph
A. Soldani for City of Madera as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Steven
F. Nord for City of Merced as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Anthony
Canzoneri for City of Monterey Park as Amicus Curiae on behalf of Defendants
and Respondents in No. C029659. Robert
D. Herrick for City of Moreno Valley as Amicus Curiae on behalf of Defendants
and Respondents in No. C029659. *519 William
B. Conners for City of Monterey as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Michael
D. Martello for City of Mountain View as Amicus Curiae on behalf of Defendants
and Respondents in No. C029659. John
R. Harper for the Cities of Murrieta and Norco as Amici Curiae on behalf of
Defendants and Respondents in No. C029659. Jayne
W. Williams for City of Oakland as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. David
J. Erwin for City of Palm Desert as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Scott
Nichols for the Cities of Pico Rivera and Walnut as Amici Curiae on behalf of
Defendants and Respondents in No. C029659. Carol
B. Tanenbaum for City of Placentia as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Stephen
M. Ecais for City of Poway as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. W.
Leonard Wingate for City of Redding as Amicus Curiae on behalf of Defendants
and Respondents in No. C029659. Daniel
J. McHugh for City of Redlands as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Robert
A. Owen for City of Rialto as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Hadden
Roth for Town of Ross and City of San Anselmo as Amici Curiae on behalf of
Defendants and Respondents in No. C029659. Robert
J. Lanzone for City of San Carlos as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Brian
M. Libow for City of San Pablo as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Phillip
H. Bomney for City of Santa Paula as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. *520 Rene
A. Chouteau for City of Santa Rosa as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Scott
S. Smith for City of Santee as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Valerie
J. Armento for City of Sunnyvale as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Ann
R. Danforth for Town of Tiburon as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Debra
E. Corbet for City of Tracy as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Charles
O. Lamoree for City of Vacaville as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Henry
R. Kraft for City of Victorville as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Larry
G. Bacon for City of Yreka as Amicus Curiae on behalf of Defendants and
Respondents in No. C029659. Naomi
Silvergleid for Town of Yucca Valley as Amicus Curiae on behalf of Defendants
and Respondents in No. C029659. Rollston,
Henderson, Rasmussen & Crabb and J. Dennis Crabb for Town of Truckee as
Amicus Curiae on behalf of Defendants and Respondents in No. C031043. Michael
Jenkins; Richards, Watson & Gershon, T. Peter Pierce and Steven R. Orr for
the Cities of Alameda, Albany, Avalon, Bakersfield, Bishop, Carson, Cerritos,
Delano, Diamond Bar, Dinuba, Hollister, Huron, Long Beach, Los Altos, Monterey
Park, Mountain View, Oceanside, Orange Cove, Pico Rivera, Piedmont, Ripon,
Ross, San Anselmo, San Bruno, San Buenaventura, Seaside, Walnut and Wasco, the
Barstow Redevelopment Agency and the Bishop Redevelopment Agency as Amici
Curiae on behalf of Defendants and Respondents in No. C031043. David
S. Baumwohl for Interveners and Respondents Mammoth Mountain Ski Area and
Mammoth Mountain Land Corporation in Nos. C029659 and C031043. *521 Liebersbach,
Mohun, Carney & Reed, R. Mark Carney and James S. Reed for Interveners and
Respondents Intrawest Mammoth Corporation in Nos. C029659 and C031043. NICHOLSON,
J. In
this consolidated appeal, we address challenges to a redevelopment plan adopted
by the Town of Mammoth Lakes and the environmental analysis performed on that
plan. The trial court determined both the environmental analysis and the
redevelopment plan complied with governing law. We disagree, and reverse both
the trial court's judgment upholding the environmental analysis and the trial
court's judgment on the validity of the redevelopment plan. Our decision also
nullifies the trial court's denial of motions to tax costs in the two actions
below. Facts In
March of 1996, defendants Town of Mammoth Lakes and Town of Mammoth Lakes
Redevelopment Agency (Agency; collectively, the Town) began the process
established by the Community Redevelopment Law (Health & Saf. Code, 33000
et seq.) to adopt a redevelopment plan. Part of this process included the
preparation of an environmental impact report (EIR) pursuant to the California
Environmental Quality Act (CEQA) (Pub. Resources Code, 21000 et seq.). On
June 18, 1997, both the Agency's governing board of directors and the town
council certified the EIR. The Agency also approved the proposed redevelopment
plan and its accompanying report (the Final Report) and forwarded the documents
to the town council. On July 2, 1997, the town council adopted Ordinance No.
97-08 approving the redevelopment plan. The
redevelopment plan applied to a project area consisting of three areas of land
totaling over 1,100 acres: a main area of about 907 acres; subarea 1 consisting
of a 30-acre industrial park; and subarea 2 consisting of the approximately
200-acre airport (collectively, the Project Area). Subareas 1 and 2 were not contiguous
to the main area or to each other. The
main area contains the Town's traditional downtown commercial area as well as
approximately 1,200 units of housing, about half of which are condominiums. It
also encompasses a site designated for development of a community college and
portions of three partially developed recreational resort areas: Lodestar at
Mammoth, Juniper Ridge and North Village. The college site, the resort areas
and the airport were the subjects of significant *522 proposed development and corresponding environmental review
approved before the redevelopment plan was adopted. Most of that proposed
development had not occurred, however, by the time the Town adopted the
redevelopment plan. Plaintiffs
Friends of Mammoth, Andrea M. Lawrence, Patricia Savage and Pat Eckart
(collectively plaintiffs) filed two actions challenging the Town's adoption of
the redevelopment plan. The first (case No. C029659 on appeal) was a petition
for writ of mandate against the Agency and the Town claiming the redevelopment
plan EIR failed to comply with the requirements of CEQA. The second (case No.
C031043 on appeal) was a validation action under Code of Civil Procedure
section 860 et seq. against the Town, the Agency, and all persons interested in
the adoption of the redevelopment plan, claiming the redevelopment plan did not
comply with the requirements of the Community Redevelopment Law. By
judgment dated May 5, 1998, the trial court denied the CEQA mandate petition
and awarded costs to the Town. By judgment dated October 21, 1998, the trial
court also determined the redevelopment plan was valid, ordered plaintiffs take
nothing by their complaint, and awarded costs to the Town. Plaintiffs filed
motions to tax costs in each case, both of which were denied in full by the
trial court. Plaintiffs timely appealed each judgment. We consolidated the
appeals on plaintiffs' motion. [FN1]
We will provide additional facts as required. [FN2] *523 FN1 Also appearing in both appeals are interveners Mammoth Mountain Ski Area, Mammoth Mountain Land Corporation and Intrawest Mammoth Corporation. The following cities and towns appear in case No. C029659 in support of defendants: Albany, Alameda, Azusa, Bakersfield, Bishop, Capitola, Carlsbad, Claremont, Cudahy, Delano, Diamond Bar, Eureka, Fremont, Garden Grove, Gilroy, Grand Terrace, Gustine, Hayward, Lancaster, Lafayette, Livermore, Lodi, Long Beach, Madera, Merced, Monterey, Monterey Park, Moreno Valley, Mountain View, Murrieta, Norco, Oakland, Palm Desert, Pico Rivera, Piedmont, Placentia, Poway, Redding, Redlands, Rialto, Ross, San Anselmo, San Carlos, San Juan Capistrano, San Pablo, Santa Paula, Santa Rosa, Santee, Sierra Madre, Sunnyvale, Temple City, Tiburon, Tracy, Vacaville, Victorville, Walnut, West Hollywood, Yreka, and Yucca Valley. The following counties appear in case No. C031043 in support of plaintiffs: Del Norte, Humboldt, Kern, Lassen, Los Angeles, Madera, Merced, Nevada, Riverside, San Benito, Santa Clara, Santa Cruz, Tulare, and Yolo (collectively Amicus Counties). The following cites, towns and redevelopment agencies appear in case No. C031043 in support of defendants: Alameda, Albany, Avalon, Bakersfield, Barstow Redevelopment Agency, Bishop, Bishop Redevelopment Agency, Carson, Cerritos, Delano, Diamond Bar, Dinuba, Hollister, Huron, Long Beach, Los Altos, Monterey Park, Mountain View, Oceanside, Orange Cove, Pico Rivera, Piedmont, Ripon, Ross, San Anselmo, San Bruno, San Buenaventura, Seaside, Truckee, Walnut, and Wasco. FN2 Plaintiffs
and Amicus Counties submitted separate requests to take judicial notice of
various items. Pursuant to Evidence Code sections 451, 452, and 459, and our
ruling in People v. Patterson (1999) 72 Cal.App.4th 438, 442-445 [84
Cal.Rptr.2d 870], we grant plaintiffs' request in its entirety, and we grant
Amicus Counties' request except as to items 1.e., 1.h., 1.k., 1.l., 1.m., and
1.o. CEQA Appeal
(case No. C029659) I. Standard of
Review We
review the Town's decision certifying the redevelopment plan EIR to determine
"whether there was a prejudicial abuse of discretion. Abuse of discretion
is established if the agency has not proceeded in a manner required by law or
if the determination or decision is not supported by substantial
evidence." (Pub. Resources Code, 21168.5; see also Western States
Petroleum Assn. v. Superior Court (1995) 9 Cal.4th 559, 567-568 [38 Cal.Rptr.2d
139, 888 P.2d 1268].) "On
appeal, our task is the same as the trial court's, 'that is, to review the
agency's actions to determine whether the agency complied with the procedures
required by law.' [Citation.] The trial court's conclusions are not binding on
us." (Davidon Homes v. City of San Jose (1997) 54 Cal.App.4th 106, 113-114
[62 Cal.Rptr.2d 612].) Nevertheless, the EIR is presumed adequate, and plaintiffs
bear the burden of proving otherwise. (Pub. Resources Code, 21167.3; State of
California v. Superior Court (1990) 222 Cal.App.3d 1416, 1419 [272 Cal.Rptr.
472].) II. Adequacy
of EIR's Analysis of Proposed Redevelopment Projects Plaintiffs
claim the EIR violated CEQA, and particularly Public Resources Code section
21090, by failing to analyze the indirect or secondary environmental impacts
likely to be caused by each of the proposed redevelopment projects included in
the redevelopment plan. For the reasons which follow, we agree. If
a redevelopment agency desires to use its funds to purchase land or to
construct public buildings, facilities or other improvements which will assist
in eliminating blight, Health and Safety Code section 33445 requires the redevelopment
agency to provide for the "acquisition of property and installation or
construction of each facility" in the redevelopment plan. (Health &
Saf. Code, 33445, subd. (b), italics added.) The redevelopment agency *524 must also list in its Final Report
the "specific projects then proposed by the agency" to eliminate
blight. (Health & Saf. Code, 33352, subd. (a).) Complying
with these requirements, the Town's redevelopment plan "specifically
authorized" the Agency "to provide or participate in providing"
at least 72 separate and identified public improvements and facilities. [FN3] The projects read like a
municipal wish list. They include an overhead gondola; an expanded community
library and meeting hall; a town amphitheater; a 300-seat performing arts
theater; a school gymnasium; two 2,000-square-foot childcare facilities; a
combined fire, police and emergency operations center; an aquatics center,
including an 8-lane 25-yard pool; a conference and ice skating arena; a 20,000-
square-foot recreation center; airport runway and taxiway extensions to serve
commercial jet aircraft; an expanded airport terminal; and over 2,800 parking
spaces in new underground and above-ground parking structures and lots. FN3 The
redevelopment plan EIR lists 72 development projects, but the redevelopment
plan itself lists 73 separate projects and uses. Further, the Final Report
lists 81 separate projects. In their briefs, the parties refer to the proposals
as 72, and for the sake of consistency, so do we. The
projects include constructing approximately 400 new housing units; upgrading
all Town utilities; undergrounding all overhead utility lines; developing a
central propane distribution system for commercial areas; installing fiber
optic cable throughout the Project Area; developing a geothermal heating system
for commercial and public uses; upgrading sewer lines; improving storm drains;
and installing various road and pedestrian improvements. The projects also
include establishing loan programs to assist in rehabilitating older hotels,
improving building facades, and recruiting and retaining businesses. They also
propose acquiring various parcels of real property to assist in developing
commercial and tourist-oriented uses, including the relocation of certain
existing gas stations. The
redevelopment plan states "changes in circumstances or designs may alter
the location of any of the facilities described above, or require other related
facilities." The plan is valid for 30 years. In
the Final Report, the Agency briefly described each proposed project, explained
how each would address blight, and estimated each project's cost. The Agency
projected the total cost of the projects would exceed $136.4 million. The
Agency also prepared a "conceptual" map depicting where most of the
projects would be located. *525 The
redevelopment plan EIR was prepared as a "program EIR" pursuant to
Guidelines section 15168. [FN4]
(3)(See fn. 4.), (2b) The redevelopment plan EIR did not analyze direct or
indirect environmental impacts potentially caused by each of the 72 development
proposals. The EIR states: "Due to the fact that specific characteristics
of individual projects which may result from this Plan are unknown at this
time, potential environmental impacts are addressed in general terms." The
redevelopment plan EIR thus analyzed primarily the cumulative impacts that
could foreseeably occur if all of the proposed projects were actually
developed. Much of this analysis was contained in the Town's general plan and
general plan EIR as well as other previously prepared planning documents and
supporting environmental reviews and was incorporated into the redevelopment
plan EIR by reference. FN4
"Guidelines" refers to the state CEQA Guidelines, certified and
adopted by the Secretary of the California Resources Agency pursuant to Public
Resources Code section 21083 and codified at Code of Regulations, title 14,
chapter 3 (Cal. Code Regs., tit. 14, 15000-15387.) Although our Supreme Court
has not yet decided whether the Guidelines are regulatory mandates or only
interpretive aids, it has instructed us to "afford great weight to the
Guidelines except when a provision is clearly unauthorized or erroneous under
CEQA." (Laurel Heights Improvement Assn. v. Regents of University of
California (1988) 47 Cal.3d 376, 391, fn. 2 [253 Cal.Rptr. 426, 764 P.2d 278].) Table
3-2 of the EIR, "Proposed Uses and Actions," lists all of the 72
development projects and their locations, provides a brief description of each
project, and explains how each alleviates blight. Exhibit 3-4 of the EIR is the
same map noting the location of the proposed projects as that included in the
Final Report. The EIR further explains the map does not include "projects
which are program oriented or are district-wide ...." The
EIR states "[i]ndividual improvement and redevelopment/development
projects would occur in incremental phases over time, based largely on economic
consideration, infrastructure improvements, market demand and other planning
considerations. The phasing and exact details of each development would be
evaluated by the Town of Mammoth Lakes Redevelopment Agency on a case-by-case
basis. [] ... All [of the 72 development projects] may be subject to additional
environmental review on an individual Redevelopment Plan basis, in accordance
with the provisions of Section 15168 of CEQA [Guidelines], as determined
necessary by the Town of Mammoth Lakes." At
trial, plaintiffs argued the Town violated CEQA by preparing an "ordinary
' program EIR' " for the redevelopment plan. Because Public Resources Code
section 21090 restricted subsequent environmental review of development
activities performed pursuant to the redevelopment plan but *526 the regulations governing program
EIR's did not, plaintiffs argued, the Town was obligated to gather and analyze
in the EIR as much information about the 72 development proposals as possible
instead of deferring such specific review to later. The
trial court rejected plaintiffs' argument. It reasoned the statutory and
regulatory scheme equated redevelopment plan EIR's with program EIR's and
required the Town to prepare a program EIR. That scheme also did not foreclose
future environmental review to the extent plaintiffs feared. The 72 development
proposals were just proposals, and CEQA would require the Town to perform
additional environmental review should the proposals actually come to fruition
and involve new information. Before
us, plaintiffs claim the trial court misstated their argument. Because the Town
chose to include the 72 development proposals in the redevelopment plan,
plaintiffs assert, Public Resources Code section 21090 required the Town to
analyze each of the proposals in the EIR (1) to the same extent CEQA requires
analysis of impacts normally associated with general plans, and (2) based on
all information available to the Town at that time concerning each of the 72
proposals. The Town was not free, they argue, to defer this analysis merely
because it prepared a program EIR. Plaintiffs believe under Public Resources
Code sections 21090 and 21166 the information available when the redevelopment
plan EIR was certified could preclude further environmental review of the 72
development proposals' direct and indirect impacts when the proposed projects
are actually developed. To
understand the significance of Public Resources Code section 21090 and
determine its scope, we first review how CEQA defines a "project" and
accommodates projects of various scope and size by providing for different
types of EIR's. We then review the level of detail and analysis CEQA requires
of EIR's. We will then apply the principles gleaned from this review to
determine the level of review CEQA required of the Town's redevelopment plan
EIR. To
the extent any statutory construction is necessary, we interpret Public Resources
Code section 21090 according to the traditional rules of statutory
construction. (4) Although "the Legislature intended [CEQA] to be
interpreted in such manner as to afford the fullest possible protection to the
environment within the reasonable scope of the statutory language"
(Friends of Mammoth v. Board of Supervisors (1972) 8 Cal.3d 247, 259 [104
Cal.Rptr. 761, 502 P.2d 1049], disapproved on other grounds by Kowis v. Howard *527 (1992) 3 Cal.4th 888, 896-897 [12
Cal.Rptr.2d 728, 838 P.2d 250]), CEQA itself states "[i]t is the intent of
the Legislature that courts, consistent with generally accepted rules of
statutory interpretation, shall not interpret [CEQA] or the [Guidelines] in a
manner which imposes procedural or substantive requirements beyond those
explicitly stated in [CEQA] or in the [Guidelines]." (Pub. Resources Code,
21083.1.) In
general, CEQA requires a government agency to prepare an EIR before approving
or carrying out any discretionary "project" the agency determines may
have a significant effect on the environment. (Pub. Resources Code, 21080,
subds. (a), (d).) A "project" is any "activity which may cause
either a direct physical change in the environment, or a reasonably foreseeable
indirect physical change in the environment, and which is [among other
possibilities] [a]n activity directly undertaken by any public agency."
(Pub. Resources Code, 21065; see also Guidelines, 15378, subd. (a).) [FN5] FN5 "(1) A
direct physical change in the environment is a physical change in the environment
which is caused by and immediately related to the project. Examples of direct
physical changes in the environment are the dust, noise, and traffic of heavy
equipment that would result from construction of a sewage treatment plant and
possible odors from operation of the plant. "(2) An indirect physical change in the environment is a physical change in the environment which is not immediately related to the project, but which is caused indirectly by the project. If a direct physical change in the environment in turn causes another change in the environment, then the other change is an indirect physical change in the environment. For example, the construction of a new sewage treatment plant may facilitate population growth in the service area due to the increase in sewage treatment capacity and may lead to an increase in air pollution. "(3) An indirect physical change is to be considered only if that change is a reasonably foreseeable impact which may be caused by the project. A change which is speculative or unlikely to occur is not reasonably foreseeable." (Guidelines, 15064, subd. (d), italics added.) CEQA
applies when a public agency proposes to "approve" a project. (Pub.
Resources Code, 21080, subd (a); Guidelines, 15352.) An approval is "the
decision by a public agency which commits the agency to a definite course of
action in regard to a project intended to be carried out by any person."
(Guidelines, 15352, subd. (a).) CEQA
applies to many types of projects, ranging from the approval of a single use
permit for construction of a building to the approval of a local general plan.
(Guidelines, 15378, subd. (a)(1).) To accommodate the different types of
projects to which it applies, CEQA provides different types of EIRs and
accompanying procedures that can be used depending upon the type, specificity,
and known detail of the proposed project under review. The
project EIR is the most common and detailed type of EIR. It "examines the
environmental impacts of a specific development project. This type *528 of EIR should focus primarily on
the changes in the environment that would result from the development project.
The EIR shall examine all phases of the project including planning,
construction, and operation." (Guidelines, 15161.) Once
a project EIR has been certified by the lead agency, Public Resources Code
section 21166 prohibits additional environmental review on that project unless
at least one of three events occurs: "(a) Substantial changes are proposed
in the project which will require major revisions of the environmental impact
report. [] (b) Substantial changes occur with respect to the circumstances
under which the project is being undertaken which will require major revisions
in the environmental impact report. [] (c) New information, which was not known
and could not have been known at the time the environmental impact report was
certified as complete, becomes available." (Pub. Resources Code, 21166;
see also Guidelines, 15162, 15163.) In
contrast, for projects consisting of a policy, plan, program or ordinance, CEQA
encourages agencies to "tier" EIR's and provides a number of ways to
do so. Tiering is "the coverage of general matters and environmental
effects in an environmental impact report prepared for a policy, plan, program
or ordinance followed by narrower or site-specific environmental impact reports
which incorporate by reference the discussion in any prior environmental impact
report and which concentrate on the environmental effects which (a) are capable
of being mitigated, or (b) were not analyzed as significant effects on the
environment in the prior environmental impact report." (Pub. Resources
Code, 21068.5.) The
standard for determining whether to engage in additional CEQA review for
subsequent projects under a tiered EIR is more relaxed than the prohibition
against additional review imposed by Public Resources Code section 21166 for
project EIR's. For a subsequent project that is consistent with the program or
plan analyzed in a first tier EIR, CEQA requires a lead agency to prepare an
initial study to determine if the later project may cause significant
environmental effects not examined in the first tier EIR. If the later project
will cause such effects, the lead agency must prepare another EIR. (Pub.
Resources Code, 21094, subds. (a), (c).) [FN6] FN6 This second
tier EIR need only analyze those significant effects of the later project which
were either not mitigated or avoided as a result of the first tier EIR or were
not examined at a sufficient level of detail in the first tier EIR to enable
those effects to be mitigated or avoided by site-specific revisions, the
imposition of conditions, or by other means in connection with the later
approval. (Pub. Resources Code, 21094; Guidelines, 15152.) If
the subsequent project is not consistent with the program or plan, it is
treated as a new project and must be fully analyzed in a projector another *529 tiered EIR if it may have a
significant effect on the environment. If the subsequent project is actually
the same project reviewed in the first tier EIR, it cannot be subject to
further environmental review unless the requirements of Public Resources Code
section 21166 are satisfied. (Pub. Resources Code, 21094, subd. (b); Sierra
Club v. County of Sonoma (1992) 6 Cal.App.4th 1307, 1319-1321 [8 Cal.Rptr.2d
473].) Now
we come to the application of CEQA to a proposed redevelopment plan. Local
government agencies establish redevelopment agencies and adopt redevelopment
plans to improve, rehabilitate, and redevelop blighted areas. (Health &
Saf. Code, 33131.) "As the fundamental document governing a redevelopment
agency's activities, a redevelopment plan basically acts as the agency's
charter. Adopted by the local legislative body (a city council or county board
of supervisors), the plan establishes long-term planning goals as well as
implementation policies and procedures for the redevelopment of a designated
project area. It also serves as a financing plan by authorizing the agency's
use of particular financing tools to implement projects and polices. A
redevelopment plan may also establish certain limitations on the authority of a
redevelopment agency to conduct activities within a project area. A
redevelopment plan is typically a very general document, providing the agency
with great flexibility." (Beatty et al., Redevelopment in Cal. (2d ed.
1995) at p. 25.) "By
exercising certain of its powers to implement redevelopment, a redevelopment
agency may induce private investment in an area. The success of any
redevelopment project is dependent upon whether private lenders, developers,
owners, and tenants can be persuaded to participate in the process. Thus, a
redevelopment agency is unique among public entities since in order to achieve
its objective of eliminating blight it must rely upon cooperation with the
private sector. Redevelopment is also a process which occurs over a period of
years. These realities dictate that a redevelopment plan be written in terms
that enhance a redevelopment agency's ability to respond to market conditions,
development opportunities and the desires and abilities of owners and tenants.
Such a plan then cannot always outline in detail each project that a
redevelopment agency will undertake during the life of the plan." (County
of Santa Cruz v. City of Watsonville (1985) 177 Cal.App.3d 831, 841 [223
Cal.Rptr. 272].) The
redevelopment plan must conform to the local agency's general plan, including
the general plan's land use and housing elements. (Health & Saf. Code,
33367, subd. (d)(4).) As stated earlier, a redevelopment plan must name each
public facility the redevelopment agency desires to provide or *530 land it seeks to acquire to help
alleviate blight. (Health & Saf. Code, 33445.) It must also contain the
approximate amount of open space to be provided; limitations on the type, size,
height, number, and proposed use of buildings; the approximate number of
dwelling units to be provided, and a description of property to be devoted to
public purposes and the nature of such purposes. (Health & Saf. Code, 33333,
subds. (a)-(d).) The
Community Redevelopment Law authorizes redevelopment plans to remain valid for
many years. If the redevelopment plan authorizes the redevelopment agency to
use tax increment financing, as is the case here, the duration of the redevelopment
plan may run as long as, but cannot exceed, 30 years. (Health & Saf. Code,
33333.2, subd. (a)(2).) Indebtedness to be repaid out of tax increments cannot
be established beyond 20 years from the plan's adoption and must be repaid
within 45 years of the plan's adoption. (Health & Saf. Code, 33333.2, subd.
(a)(1), (3).) Also, any eminent domain proceedings to acquire property within
the redevelopment project area must be commenced within 12 years of the plan's
adoption. (Health & Saf. Code, 33333.2, subd. (a)(4).) Based
on the above, a redevelopment plan at first blush would appear to be an ideal
candidate for a first tier EIR, with all projects implemented pursuant to the
redevelopment plan being subject to their own additional and project-specific
EIR's. By adopting Public Resources Code section 21090, however, the
Legislature determined a redevelopment plan EIR and all public and private
projects implemented pursuant to that plan should be treated as a single
project for purposes of CEQA. The statute reads in its entirety: "For all
purposes of this division [CEQA], all public and private activities or
undertakings pursuant to, or in furtherance of, a redevelopment plan shall be
deemed to be a single project. However, further environmental review of any
public or private activity or undertaking pursuant to, or in furtherance of, a
redevelopment plan shall be conducted if any of the events specified in [Public
Resources Code] Section 21166 have occurred." Guidelines
section 15180 implements Public Resources Code section 21090 as follows:
"(a) All public and private activities or undertakings pursuant to or in
furtherance of a redevelopment plan constitute a single project, which shall be
deemed approved at the time of adoption of the redevelopment plan by the
legislative body.... [] (b) An EIR on a redevelopment plan shall be treated as
a program EIR with no subsequent EIRs required for individual components of the
redevelopment plan unless a subsequent EIR or a supplement to an EIR would be
required by [Guidelines] Section 15162 or 15163." (Italics added.)
(Guidelines 15162 and *531 15163
implement Pub. Resources Code, 21166's prohibition of additional environmental
review after a project EIR has been certified unless significant change occurs
or significant new information develops.) The
program EIR referenced in Guideline section 15180 is a type of tiered EIR
authorized by the Guidelines but not by the statute. (Al Larson Boat Shop, Inc.
v. Board of Harbor Commissioners (1993) 18 Cal.App.4th 729, 740 [22 Cal.Rptr.2d
618].) "A program EIR is an EIR which may be prepared on a series of
actions that can be characterized as one large project and are related ... []
[i]n connection with issuance of rules, regulations, plans, or other general
criteria to govern the conduct of a continuing program ...." (Guidelines,
15168, subd. (a)(3).) A
program EIR is designed to "(1) Provide an occasion for a more exhaustive
consideration of effects and alternatives than would be practical in an EIR on
an individual action, [] (2) Ensure consideration of cumulative impacts that
might be slighted in a case-by-case analysis, [] (3) Avoid duplicative
reconsideration of basic policy considerations, [] (4) Allow the lead agency to
consider broad policy alternatives and program wide mitigation measures at an
early time when the agency has greater flexibility to deal with basic problems
or cumulative impacts, [and] [] (5) Allow reduction in paperwork."
(Guidelines, 15168, subd. (b).) The
Legislature's transformation of a redevelopment plan EIR from what would
otherwise be a first tier EIR into a project/program EIR is not without
significance. Were it not for Public Resources Code section 21090 and
Guidelines section 15180, all activities and subsequent development projects
approved pursuant to a redevelopment plan would likely be treated as separate
projects and be subject to environmental review for any potentially significant
environmental impacts not previously analyzed in the redevelopment plan EIR.
(Pub. Resources Code, 21094.) Because
of Public Resources Code section 21090 and Guidelines section 15180, further
environmental review of any development project implemented pursuant to or in
furtherance of a redevelopment plan is prohibited unless significant changes
occur in the project or the circumstances surrounding the project, or if
significant new information which was not known and could not have been known
when the redevelopment plan EIR was certified becomes available. (See Long
Beach Sav. & Loan Assn. v. Long Beach Redevelopment Agency (1986) 188
Cal.App.3d 249, 266 [232 Cal.Rptr. 772] [additional EIR not required where
redevelopment project did not cause significant changes to project as analyzed
in previous redevelopment EIR].) *532 It
is this fear that the 72 proposed projects will avoid detailed CEQA review as a
result of the operation of Public Resources Code section 21090 that forms the
crux of plaintiffs' petition. They claim enough information was known (e.g.,
each project's proposed use and location), or could have been known, when the
EIR was certified to prevent future environmental analysis at least of these
aspects of the development proposals when the proposals are actually developed.
They thus argue section 21090 required the Town "to gather every bit of
information known at the time of [the] Redevelopment Plan adoption about the 72
proposed projects which are included in the Redevelopment Plan [and] to conduct
environmental analysis of those Development Proposals to the extent [of] the
information then available ...." They
claim the analysis was not to be a detailed, site-specific analysis. It was,
however, to be governed by the information available at the time of the
redevelopment plan's adoption, then "tempered" by focusing on each
proposal's secondary effects similar to those discussed in an EIR for a general
plan. Plaintiffs further cite specific instances where additional information
about a few of the proposed projects was allegedly available to the Town, but
the Town did not obtain the data for use in the EIR. The
language of Public Resources Code section 21090 does not expressly increase the
level of analysis required in a redevelopment plan EIR above that required of
other types of program EIR's. However, by defining a redevelopment plan and all
of its proposed projects as a single project, the Legislature implied that as
much environmental review as possible should occur at the outset of the
redevelopment process, with subsequent review limited to situations where
significant changes or "new information" on the plan's constituent
projects becomes available. The
Town and its supporting amici curiae mischaracterize the redevelopment plan EIR
as a first tier EIR. As shown above, first tier EIR's are not subject to the
ban on subsequent review imposed by Public Resources Code section 21166. Thus,
courts have allowed first tier EIR's to defer detailed analysis to subsequent
project EIR's. (See Al Larson Boat Shop, Inc. v. Board of Harbor Commissioners,
supra, 18 Cal.App.4th at pp. 746-747; Guidelines, 15152, subd. (c).) Here,
to the extent specific information is now known about one of the proposed 72
development projects, Public Resources Code section 21090 will prevent a
project EIR from analyzing impacts derived from that aspect when the project is
subsequently developed. While the redevelopment plan *533 EIR may be a type of tiered EIR (Guidelines, 15152, subd.
(h)), it does not enjoy all of the flexibility accorded first tier EIR's. The
Town claims Guidelines section 15168, subdivision (c)(1), requires the Town to
perform additional environmental review of the development projects for impacts
not reviewed in the redevelopment plan EIR. This regulation, part of the
Guidelines governing program EIR's, states: "If a later activity would
have effects that were not examined in the program EIR, a new initial study
would need to be prepared leading to either an EIR or a negative
declaration." This regulation is inconsistent with the language and effect
of Public Resources Code sections 21090 and 21166, and thus cannot apply to
redevelopment plan EIR's. Under
Public Resources Code section 21166 and its implementing regulation, Guidelines
section 15162, a lead agency is not required to use an initial study to
determine the effect of new information or changed circumstances. Also, if an
agency determines the new information or changed circumstances do not rise to
the level of significance requiring an additional EIR, the agency need not take
any further action. (Guidelines, 15162, subd. (b).) Furthermore, if the information
was known, or could have been known, when the earlier EIR was certified, a new
EIR cannot be prepared even if the information is significant. Guidelines
section 15168, subdivision (c)(1), if it applied to a redevelopment plan EIR,
would require an agency to prepare an initial study and a negative declaration
for an impact that did not trigger additional review under Public Resources
Code section 21166. It would also require an agency to prepare an EIR for an
impact not previously reviewed but which was ascertained from information
previously known, contrary to the requirements governing project EIR's and
redevelopment plan EIR's under Public Resources Code section 21166 and
Guidelines section 15126. "
'Where a statute empowers an administrative agency to adopt regulations, such
regulations "must be consistent, not in conflict with the statute
...." ' " (Ontario Community Foundations, Inc. v. State Bd. of
Equalization (1984) 35 Cal.3d 811, 816 [201 Cal.Rptr. 165, 678 P.2d 378].) (2d)
The inconsistency between Public Resources Code sections 21090 and 21166, and
Guidelines section 15168, subdivision (c)(1), renders the later inapplicable to
redevelopment plan EIR's. Designating
an EIR as a program EIR also does not by itself decrease the level of analysis
otherwise required in the EIR. "All EIR's must cover the same general
content. (Guidelines, 15120-15132.) (6a) The level of *534 specificity of an EIR is determined by the nature of the
project and the 'rule of reason' [citation], rather than any semantic label
accorded to the EIR." (Al Larson Boat Shop, Inc. v. Board of Harbor
Commissioners, supra, 18 Cal.App.4th at pp. 741-742, fn. omitted.) In
fact, the Guidelines do not specify the level of analysis to be performed in a
program EIR. Similar to a first tier EIR, a program EIR is designed for
analyzing program-wide effects, broad policy alternatives and mitigation
measures, cumulative impacts and basic policy considerations, as opposed to
specific projects within the program. (Guidelines, 15168, subd. (b)). However,
the Guidelines also state a program EIR "will be most helpful in dealing
with subsequent activities if it deals with the effects of the program as
specifically and comprehensively as possible. With a good and detailed analysis
of the program, many subsequent activities could be found to be within the
scope of the project described in the program EIR, and no further environmental
documents would be required." (Guidelines, 15168, subd. (c)(5), italics
added.) In
general, "[a]n EIR should be prepared with a sufficient degree of analysis
to provide decisionmakers with information which enables them to make a
decision which intelligently takes account of environmental consequences. An
evaluation of the environmental effects of a proposed project need not be
exhaustive, but the sufficiency of an EIR is to be reviewed in the light of
what is reasonably feasible.... The courts have looked not for perfection but
for adequacy, completeness, and a good faith effort at full disclosure."
(Guidelines, 15151.) "No
ironclad rules can be imposed regarding the level of detail required .... EIR
requirements must be 'sufficiently flexible to encompass vastly different
projects with varying levels of specificity.' [Citation.]" (Al Larson Boat
Shop, Inc. v. Board of Harbor Commissioners, supra, 18 Cal.App.4th at pp.
745-746.) Accordingly,
the Guidelines describe the level of analysis and detail for an EIR as follows:
"The degree of specificity required in an EIR will correspond to the
degree of specificity involved in the underlying activity which is described in
the EIR. [] (a) An EIR on a construction project will necessarily be more
detailed in the specific effects of the project than will be an EIR on the
adoption of a local general plan or comprehensive zoning ordinance because the
effects of the construction can be predicted with greater accuracy. [] (b) An
EIR on a project such as the adoption or amendment of a comprehensive zoning
ordinance or a local general plan *535
should focus on the secondary effects that can be expected to follow from the
adoption, or amendment, but the EIR need not be as detailed as an EIR on the
specific construction projects that might follow." (Guidelines, 15146.) We
cannot determine as a matter of law which of CEQA's various levels of review
applies to all redevelopment plan EIR's. A redevelopment plan may be as
conceptual as a general plan, as detailed as a conditional use permit, or, as
in this case, somewhere in between. Nevertheless, because a redevelopment plan
EIR is not a true first tier EIR, and because the Town's redevelopment plan was
as detailed as it was, CEQA required the Town's redevelopment plan EIR to
contain more analysis of the 72 proposed projects than it did. The Town's
failure to analyze the impacts caused by each proposed project, to the extent
information was known or reasonably could have been known about each project,
constituted a failure to proceed in the manner required by CEQA. The
Town argues it should not be required to review each of the proposed development
projects because the project being approved was the redevelopment plan, not the
individual projects. This argument fails to reckon with the full meaning of the
fact that a redevelopment plan, including all "public and private
activities or undertakings pursuant to, or in furtherance of," the plan,
"shall be deemed to be a single project" under CEQA. (Pub. Resources
Code, 21090.) By adopting the redevelopment plan and certifying the EIR, the
Town committed itself to the "definite course of action" of
implementing the redevelopment plan. (Guidelines, 15352, subd. (a).) It is at
least "reasonably foreseeable" the Town will do so by developing at
least some of the 72 development projects already approved in the redevelopment
plan. This is particularly true since the Town will have to amend the
redevelopment plan if it desires to develop any other project not now named in
the plan. (Health & Saf. Code, 33445, subd. (b).) The
Town claims the 72 development projects had only recommended sites and descriptions,
and thereby bore insufficient detail to justify conducting environmental review
on any of them individually. In fact, the list, explanation and map of the
projects contained in the redevelopment plan, the Final Report, and in the EIR
demonstrate many, if not most, of the development projects were defined and
formulated with great specificity, including locations, functions, sizes and
capacities. The mere fact that changed circumstances could produce changes in
the details of the proposals does not render the proposals too vague or
indefinite to be reviewed in an EIR such as this. *536 In
fact, it is the detail with which the Town defines the development projects
that compels our decision here. For example, the redevelopment plan calls for
construction of a 500-car parking structure at the Juniper Ridge resort; 1,500
parking spaces in structures or lots at the North Village resort; a 250-car
parking structure at the Lodestar resort; two 200-car parking structures behind
Main Street; and 100-car, 50-car, and 30-car surface parking lots. The
conceptual map designates the proposed locations for these different parking
lots or structures. By
adopting the redevelopment plan, these projects are deemed approved for
purposes of CEQA, and no further environmental review may be performed for them
unless the requirements of Public Resources Code section 21166 are met. The
redevelopment plan EIR does not analyze any significant environmental impacts
potentially caused by these projects individually as a result of their proposed
use or location. If the Town develops these projects as approved and described
in the redevelopment plan, Public Resources Code sections 21090 and 21166 will
prohibit the Town from analyzing these projects' impacts arising from their use
and location, since that information was known or could have been known when
the redevelopment plan EIR was certified. The
Town notes the redevelopment plan EIR states the 72 development projects
"may be subject to additional environmental review on an individual
Redevelopment Plan basis, in accordance with the provisions of [Guidelines]
Section 15168 of CEQA ...." (Italics added.) As already demonstrated, CEQA
will prohibit additional review of the individual projects unless they or their
circumstances change significantly or significant new information which could
not have been known when the redevelopment plan EIR was certified comes to
light. This statement in the EIR thus offers no guarantee that potential
impacts reasonably foreseeable now will be analyzed prior to actual
development. At
this stage, it may not be possible to conduct a complete analysis of each of
these projects because not enough may be known. However, because each project
is deemed approved for purposes of CEQA, the significant impacts to the
environment likely to be caused by each individual project must be analyzed in
the redevelopment plan EIR at least to the same extent each project is detailed
in the redevelopment plan and its accompanying Final Report. Otherwise, such
analysis may never occur, and nothing in Public Resources Code section 21090
demonstrates the Legislature intended to exempt individual development projects
approved in a redevelopment plan and their impacts from environmental analysis
under CEQA. *537 Amici
curiae supporting the Town argue a ruling in plaintiffs' favor would deprive
municipalities of the ability to use a program EIR in order to streamline
environmental review for redevelopment projects. We disagree. Our ruling merely
clarifies what must be included in a redevelopment plan EIR in order for it to
obtain the procedural benefits CEQA grants a program EIR without violating the
requirement of Public Resources Code section 21090. Amici
curiae complain our ruling will make redevelopment planning significantly more
complicated and expensive, resulting in fewer redevelopment proposals coming to
fruition. These are arguments best addressed to the Legislature. By this
decision, we simply enforce the legislative intent expressed in the language of
CEQA, and in particular Public Resources Code sections 21090 and 21166, as
those statutes apply to the Town's redevelopment plan EIR. Because
we reverse the trial court's judgment on the ground discussed above, we do not
reach any of the other arguments presented by plaintiffs. Also, our ruling in
the CEQA appeal nullifies the trial court's order denying plaintiffs' motion to
tax costs. (Monson v. Fischer (1933) 219 Cal. 290, 291 [26 P.2d 6].) Redevelopment
Appeal (case No. C031043) I. Standard of
Review The
trial court determined the Town adopted the redevelopment plan in the manner
required by law and substantial evidence existed in the administrative record
supporting the Town's findings of blight. The trial court was required to
disregard any error, irregularity, or omission which did not affect the
substantial rights of the parties. (Code Civ. Proc., 866.) "[T]he
proper standard of review requires us to decide whether substantial evidence
supports the judgment of the trial court ...." (County of Riverside v.
City of Murrieta (1998) 65 Cal.App.4th 616, 620 [76 Cal.Rptr.2d 606].) Since
the trial court affirmed the findings of the Town on the basis of substantial
evidence in the administrative record (see In re Redevelopment Plan for Bunker
Hill (1964) 61 Cal.2d 21, 39-41, 45-50 [37 Cal.Rptr. 74, 389 P.2d 538]), our
task is virtually identical to the trial court's. Defining
substantial evidence, one court has well noted: "[I]f the word '
substantial' means anything at all, it clearly implies that such evidence must *538 be of ponderable legal
significance. Obviously the word cannot be deemed synonymous with 'any'
evidence. It must be reasonable in nature, credible, and of solid value; it
must actually be 'substantial' proof of the essentials which the law requires
in a particular case." (Estate of Teed (1952) 112 Cal.App.2d 638, 644 [247
P.2d 54], italics added.) Accordingly,
a local agency's findings in support of its adopting a redevelopment plan are
not conclusive. "The Community Redevelopment Law has established factors
to be considered in determining whether an area is blighted, and it is the
court's role to ensure those factors are taken into account. In short, the
courts are required to be more than rubber stamps for local governments."
(Emmington v. Solano County Redevelopment Agency (1987) 195 Cal.App.3d 491, 498
[237 Cal.Rptr. 636].) Unlike
CEQA, which required substantial evidence in the administrative record
demonstrating only that the EIR provided a reasonable, good faith discussion of
the potential impact, the Community Redevelopment Law requires substantial
evidence in the administrative record demonstrating the existence of specific
characteristics of urbanization and blight. (Health & Saf. Code, 33030,
33031, 33320.1.) In some instances, the statute requires a finding of a nexus,
to borrow a term from takings jurisprudence, between a particular
characteristic being reviewed and the actual condition being caused. If the
specific finding required by the Community Redevelopment Law cannot be made
from the evidence in the administrative record, the evidence is not "
'substantial' proof of the essentials which the law requires" and the
finding is not supported by substantial evidence. (Estate of Teed, supra, 112
Cal.App.2d at p. 644.) II. Elements
of Appeal-Findings Establishing Blighted Area To
approve the redevelopment plan, the Town Council had to find, among other
things, that the area proposed to be subject to the redevelopment plan, the
Project Area, is "a blighted area." (Health & Saf. Code, 33367,
subd. (d)(1).) To qualify as a blighted area, the Project Area must satisfy
each of the following requirements: 1.
The area is "predominantly urbanized." (Health & Saf. Code,
33030, subd. (b)(1).) 2.
The area is "characterized" by one or more statutorily defined physical
conditions that cause blight. (Health & Saf. Code, 33030, subd. (b)(2)(A).)
*539 3.
The area is "characterized" by one or more statutorily defined
economic conditions that cause blight. (Health & Saf. Code, 33030, subd.
(b)(2)(A).) 4.
The combination of physical and economic conditions causing blight is "so
prevalent and so substantial that it causes a reduction of, or lack of, proper
utilization of the area to such an extent that it constitutes a serious
physical and economic burden on the community which cannot reasonably be
expected to be reversed or alleviated by private enterprise or governmental
action, or both, without redevelopment." (Health & Saf. Code, 33030,
subd. (b)(1).) [FN7] FN7 Although not pertinent to this case, in lieu of the second and third requirements (being characterized by economic and physical conditions causing blight), the area may instead be characterized by the existence of subdivided lots of irregular form and shape and inadequate size for proper usefulness and development that are in multiple ownership. (Health & Saf. Code, 33030, subd. (b)(2)(B).) An
area which meets all of the conditions above may, in addition, be characterized
by inadequate public improvements, parking facilities, or utilities. (Health
& Saf. Code, 33030, subd. (c).) The
trial court found there was substantial evidence in the administrative record
on which the Town could find the Project Area was a blighted area. Plaintiffs
claim substantial evidence does not exist to support each of the statutory
elements required for the Project Area to qualify as a blighted area. We
conclude no substantial evidence exists on which the Town and the trial court
could find the Project Area is predominantly urbanized and suffers from the
statutorily defined physical conditions that cause blight. We explain below why
this is so. Since the Town and trial court's findings cannot establish all of
the requirements necessary to show the existence of a blighted area, the Town's
adoption of the redevelopment plan must be vacated in its entirety. We thus
need not review the other arguments raised by plaintiffs against the
redevelopment plan. [FN8] *540 FN8 Plaintiffs initially fault the Town's use of a structural exterior survey to determine the existence of blight, claiming it resembled a methodology rejected in Gonzales v. City of Santa Ana (1993) 12 Cal.App.4th 1335, 1342-1345 [16 Cal.Rptr.2d 132]. The Gonzales court did not fault the use of a structural exterior survey as a per se improper methodology. Rather, it stated the survey in that case did not by itself result in sufficient evidence to support a finding of blight. (Id. at p. 1345.) The Community Redevelopment Law does not prescribe a particular methodology. At issue here is not whether use of a survey was appropriate, but whether whatever methods the Town used to document the existence of blight resulted in substantial evidence supporting the statutorily required elements of a blighted area. III.
Predominantly Urbanized The
trial court determined substantial evidence supported the Town's finding that
the Project Area was "predominantly urbanized." Plaintiffs claim no
substantial evidence supports the Town's finding. We agree with plaintiffs. A
predominantly urbanized project area is one where not less than 80 percent of
the "land": (1) has been or is "developed for urban uses";
(2) is characterized by the existence of subdivided lots of irregular form and
shape and inadequate size for proper usefulness and development that are in
multiple ownership; or (3) is an integral part of one or more areas developed
for urban uses which are surrounded or substantially surrounded by
"parcels" which have been or are "developed for urban
uses." (Health & Saf. Code, 33320.1, subd. (b).) A "parcel"
is considered "developed" if it is developed in a manner consistent
with zoning or otherwise permitted by law. (Health & Saf. Code, 33320.1,
subd. (c).) The
town council found the Project Area was "predominantly urbanized"
based on evidence contained in the Final Report. The Final Report relied upon
the building survey to state the Project Area consisted of 1,139 acres, 167.10
of which (or 14.67 percent) were vacant. The Final Report concluded the
remaining nonvacant land (85.33 percent) was thus "urbanized."
Besides documenting the amount of vacant land, the Final Report states the
Project Area "may be considered predominantly urbanized as all properties
are an integral part of an area developed for urban uses." The
Town also claims the building survey determined approximately 138 acres of the
167 vacant acres existed within "urbanized areas." The Town argues
vacant parcels in "urban areas" are "deemed 'urbanized' "
under Health and Safety Code section 33320.1, subdivision (b)(3). Based on this
theory, the Town believes, and the trial court so held, the Final Report
actually underestimated the amount of urbanized land, and the correct figure
should be 97 percent, or 1,110 acres of the total 1,139-acre Project Area. At
trial, plaintiffs claimed the Final Report's evidence of urbanization consisted
only of conclusions without evidentiary support. Plaintiffs also believe the
Final Report wrongly inflates the amount of urbanized land in the Project Area.
They claim 84 acres of land used as a golf course at the Lodestar resort, 74
acres of undeveloped land at the community college site, and 120 undeveloped
acres surrounding the airport were improperly determined to be nonvacant, and
thus "urbanized," land. *541 The
term "urban" is "not fixed, objective, or easily
ascertainable...." (County of Riverside v. City of Murrieta, supra, 65
Cal.App.4th at p. 623.) At a minimum, however, the mere fact that property is
not vacant or is developed in accordance with its zoning does not by itself
render the property "developed for urban uses." Lands that are not
vacant may be developed for uses that are not urban uses. (Id. at p. 624.) The
Final Report's conclusion that 85 percent of the land is "urbanized"
simply because it is not vacant fails to account for this distinction, and thus
does not by itself constitute substantial evidence on which the Town could rely
to determine the extent of the Project Area's urbanization. Furthermore,
since the survey did not determine which nonvacant lands were developed for
urban uses and which were not, the Town could not conclude with accuracy which
vacant lands were integral parts of land developed for urban uses that were
themselves substantially surrounded by parcels developed for urban uses. As
to the specific properties challenged by plaintiffs, the entire Lodestar golf
course and all of the community college parcel were determined in the building
survey not to be vacant and thus urbanized. The Final Report also claimed all
of the land at the airport was urbanized. Regarding these properties, the
issue, as with all properties claimed by the Town to be urbanized, is whether
substantial evidence exists in the administrative record showing that each of
these "lands" was either developed for urban uses or was an integral
part of an area of land developed for urban uses that was itself substantially
surrounded by parcels of land developed for urban uses. A. Lodestar
golf course. Analysis
of the Lodestar golf course requires reciting additional background
information. Lodestar is a proposed 222-acre mixed-use destination resort. The
EIR for the project described the project's site as follows: "The site ...
is for the most part covered with Sierran Upper Montane Forest. This plant
community is characterized by tall conifers that include Jeffrey pine, white
fir, and red fir. The vast majority of the forested site is undeveloped with
the exception of a few residences and a number of informal trails and dirt
roads." (Italics added.) According
to the Lodestar at Mammoth Master Plan, adopted by the town council in 1991 and
revised in 1992, the Lodestar project would result in the construction of 75
acres of residential units, 10 acres of hotel units, 5 acres of commercial
uses, 12 acres of roads, 5 acres of open space, and the approximately 110-acre
golf course. The EIR described the golf course as a *542 "mountain style" golf course constructed through the
entire site. Numerous ponds and lakes would be developed within the course. Of
the lands designated for the golf course and open space, approximately 78 acres
would be cleared, leaving 37 acres of natural open space buffer between
fairways and adjacent uses. All trees exceeding 36 inches diameter breast
height were to be considered for retention within the fairway areas. Other
than the construction of some or all of the golf course and one building on the
course (apparently a club house with a parking lot), "there has been no
implementation" of the Lodestar master plan. Except for the areas used as
a golf course, the project site thus presumably retains its forested,
undeveloped character. The
Town did not include the entire Lodestar project site within the redevelopment
Project Area. The Lodestar master plan land use diagram shows the area of the
project included in the redevelopment Project Area, a parcel of roughly 80
acres plus two other parcels, was approved to contain eight of the golf
course's 18 holes. However, the land use map also shows that same area of the
project was approved to contain, in addition to part of the golf course, 30
acres of residential units (a total of 380 units), 10 acres of hotel use (2
hotels containing a total of 500 units) and 5 acres of commercial use (totaling
80,000 square feet). These
45 acres remain undeveloped, but yet the Town classified them as nonvacant and
included them as urbanized lands because they were located within the same
assessor's parcels as the eight holes of the golf course. Since the golf course
was consistent with the parcels' zoning, the Town argues subdivision (c) of
Health and Safety Code section 33320.1 allowed the parcels in their entirety to
be considered as developed for urban uses. Subdivision
(c) of Health and Safety Code section 33320.1 reads: "For purposes of this
section, a parcel of property as shown on the official maps of the county
assessor is developed if that parcel is developed in a manner which is either
consistent with zoning or is otherwise permitted under law." The Town
reads subdivision (c) as deeming all of a parcel developed if only a portion of
the parcel is developed. The
statute's language does not support the Town's interpretation. Subdivision (c)
of Health and Safety Code section 33320.1 is concerned with the legality of
development, not with the extent of development. It prohibits including parcels
fully developed with urban uses in the calculation of developed urban land if
that development is illegal. It says nothing of deeming a partially developed
parcel to be a fully developed parcel. *543 Past
amendments to Health and Safety Code section 33320.1 support this reading of
subdivision (c) and its application here. In 1983, the Legislature sought to
respond to a practice by some redevelopment agencies which had abused the
redevelopment process by forming project areas that included significant
amounts of unblighted and vacant land. (See Assem. Com. On Revenue and
Taxation, Analysis of Assem. Bill No. 1545 (Hannigan) (Apr. 18, 1983) pp. 5, 8
(Assem. Republican Caucus files (1983) Assem. Bill No. 1545).) [FN9] To remedy this problem, the
Legislature chose to require the project area to be "predominantly
urbanized." It defined that phrase to mean in part that "not less
than 80 percent of the privately owned property in the project area has been or
is developed for urban uses, ... or is an integral part of an area developed
for urban uses." (Stats. 1983, ch. 1324, 1, p. 5352.) FN9 Assembly Bill No. 1545 was ultimately vetoed by the Governor, but not before its provisions amending Health and Safety Code section 33320.1 were adopted by the Legislature as part of Assembly Bill No. 322. That statute became law without the Governor's signature. (See Stats. 1983, ch. 1324, 1, p. 5351.) By
1992, the Legislature had evidence showing some redevelopment agencies
continued to form project areas encompassing large tracts of vacant land,
despite the statutory amendments adopted in 1983. (See Sen. Local Gov. Com.,
Analysis of Sen. Bill No. 1711 (Bergeson) (Apr. 13, 1992) p. 6 (Sen. Local Gov.
Com. files (1992) Sen. Bill No. 1711).) As a result, the Legislature adopted
Senate Bill No. 1711 to tighten further the definition of "predominantly
urbanized" in three respects. (Health & Saf. Code, 33320.1; see Stats.
1992, ch. 1356, 4, p. 6777.) First,
Senate Bill No. 1711 replaced the word "property" with the word
"land." (Health & Saf. Code, 33320.1, subd. (b).) Second, it
required 80 percent of all land in the project area, not just privately owned
property, to be urbanized. (Ibid.) Third, in order for vacant land to qualify
as urbanized because it was an integral part of an area developed for urban
uses, Senate Bill No. 1711 required the area developed for urban uses, of which
the vacant land was an integral part, to be itself "surrounded or
substantially surrounded by parcels which have been or are developed for urban
uses." (Health & Saf. Code, 33320.1, subd. (b)(3).) Senate Bill No. 1711's replacement of the word "property" |