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Reprinted with the permission of LexisNexis. HARVEY
BOELTS, Plaintiff and Respondent, v. CITY OF LAKE FOREST, et al., Defendants
and Appellants. G033549 COURT
OF APPEAL OF CALIFORNIA, FOURTH APPELLATE DISTRICT, DIVISION THREE 127
Cal. App. 4th 116;
25 Cal. Rptr. 3d 164; 2005 Cal. App. LEXIS 294; 2005 Cal. Daily Op. Service
1680; 2005 Daily Journal DAR 2277; 35 ELR 20048 February
24, 2005, Filed NOTICE: CERTIFIED FOR PUBLICATION SUBSEQUENT HISTORY: Time for Granting or Denying Review
Extended Boelts v. City of Lake Forest, 2005 Cal. LEXIS 5044 (Cal., May 12,
2005) Review denied by, Request denied by Boelts v. City of Lake
Forest, 2005 Cal. LEXIS 6529 (Cal., June 8, 2005) PRIOR HISTORY: Superior Court of Orange County, No.
02CC00140, C. Robert Jameson, Judge. COUNSEL: Law Offices of Kathryn Reimann, Kathryn
Reimann; Best Best & Kreiger, Scott C. Smith and Gene Tanaka for Defendants
and Appellants. Richards, Watson & Gershon and T. Peter Pierce for
League of California Cities and Other Agencies as Amicus Curiae on behalf of
Defendants and Appellants. Palmieri, Tyler, Wiener, Wilhelm & Waldron, Michael H.
Leifer and Ronald M. Cole for Plaintiff and Respondent. JUDGES: Sills, P. J., with Aronson, and Ikola,
JJ., concurring. OPINIONBY: SILLS
OPINION: SILLS, P. J.-- I. SUMMARY (1) California's Community Redevelopment Law
(Health & Saf. Code, § 33000 et seq.
n1) requires a finding that a project area is blighted in order to establish a
redevelopment plan. (§ 33367, subd.
(d)(1); e.g., Sweetwater Valley Civic Assn. v. City of National City
(1976) 18 Cal.3d 270, 277 [133 Cal. Rptr. 859, 555 P.2d 1099] ["To allow
redevelopment under the CRL, the proposed area must be blighted."]; Beach-Courchesne
v. City of Diamond Bar (2000) 80 Cal.App.4th 388, 389 [95 Cal. Rptr. 2d
265] ["A determination of blight is a prerequisite to invoking
redevelopment."].) - - - - - - - - - - - - - - Footnotes - - - - - - - - - - -
- - - - n1 All statutory references
in this opinion will be to the Health and Safety Code unless otherwise designated. - - - - - - - - - - - - End Footnotes- - - - - - - - - - - -
- - (2) This required finding of blight is
subject to judicial review in a validation action (Code Civ. Proc., § 860 et seq.), and if there is insufficient
evidence that the area is indeed blighted, the court must issue a judgment
invalidating the redevelopment plan. (E.g., Sweetwater Valley Civic Assn. v.
City of National City, supra, 18 Cal.3d 270 [directing judgment be entered
for writ of mandate setting aside redevelopment plan for golf course]; Friends
of Mammoth v. Town of Mammoth Lakes Redevelopment Agency (2000) 82
Cal.App.4th 511 [98 Cal. Rptr. 2d 334] [lack of evidence of blight for area,
including many acres of forest and a golf course, required judgment
invalidating plan]; Beach-Courchesne v. City of Diamond Bar, supra, 80
Cal.App.4th 388 [lack of substantial evidence that affluent suburban area was
blighted required judgment invalidating redevelopment plan].) Of course, judicial
review of a blight finding is what one would expect given that the purpose of
redevelopment is the remedying of blight, and redevelopment invokes
" 'extraordinary powers.' " As Justice Joan Dempsey Klein wrote for
the court in Beach-Courchesne v. City of Diamond Bar, supra, 80
Cal.App.4th at page 407, "The purpose of the CRL is to provide a means of
remedying blight where it exists. The CRL is not simply a vehicle for
cash-strapped municipalities to finance community improvements." (3) However, a validation challenge to an initial
finding of blight is subject to some stringent deadlines. Section 33500 states
that any action attacking the validity of a redevelopment plan cannot be made
after the elapse of 60 days from the adoption of the ordinance adopting the
plan. n2 A similar 60-day deadline is
found in the procedural statutes authorizing validation actions. n3 - - - - - - - - - - - - - - Footnotes - - - - - - - - - - -
- - - - n2 Section 33500
provides in its entirety: "No action attacking or otherwise questioning
the validity of any redevelopment plan, or amendment to a redevelopment plan,
or the adoption or approval of such plan, or amendment, or any of the findings
or determinations of the agency or legislative body in connection with such
plan shall be brought prior to the adoption of the redevelopment plan nor at
any time after the elapse of 60 days from and after the date of adoption of the
ordinance adopting or amending the plan. [P] The amendments made to this section
at the 1977-78 Regular Session of the Legislature do not represent a change in,
but are declaratory of, existing law." n3 The structure of
these statutes is, however, a little convoluted because they begin with the
idea, in section 860 of the Code of Civil Procedure, that a public agency
has the right to bring such a challenge within 60 days, but then, a few
sections later, in section 863, allow private parties the same right. First, here is the
current text of section 860 of the Code of Civil Procedure: "A public
agency may upon the existence of any matter which under any other law is
authorized to be determined pursuant to this chapter, and for 60 days
thereafter, bring an action in the superior court of the county in which the
principal office of the public agency is located to determine the validity of
such matter. The action shall be in the nature of a proceeding in rem." Next we quote the
pertinent parts of section 863 of the Code of Civil Procedure: "If no
proceedings have been brought by the public agency pursuant to this chapter,
any interested person may bring an action within the time and in the court
specified by Section 860 to determine the validity of such matter." - - - - - - - - - - - - End Footnotes- - - - - - - - - - - -
- - Sixty days is, of
course, a short statute of limitations by common legal standards. n4 But there is a reason for it: to protect
decisions in reliance on the plan. As the court noted in Plunkett v.
City of Lakewood (1975) 44 Cal. App. 3d 344, 347 [116 Cal. Rptr. 885]--in a
decision upholding a judgment throwing out a challenge to a redevelopment plan
because the challenge came about two months too late--the purpose of the
truncated statute of limitations is to "promote prompt adjudication of
such challenges before substantial public funds have been expended and before
relocation of business and people have rendered remedial action
ineffective." (Italics added.) - - - - - - - - - - - - - - Footnotes - - - - - - - - - - -
- - - - n4 Sometimes the
truncation of statutes of limitations can itself be significant, as, for
example, in bearing on whether contractual arbitration provisions are
enforceable. (E.g., Martinez v. Master Protection Corp. (2004) 118
Cal.App.4th 107, 118 [12 Cal. Rptr. 3d 663] [contractually shortened statute of
limitations made agreement to arbitrate employee civil rights claims
unconscionable].) - - - - - - - - - - - - End Footnotes- - - - - - - - - - - -
- - (4) Redevelopment plans are also, however,
subject to amendment. Article 12 of the Community Redevelopment Law (§
§ 33450-33458) is devoted to the
procedures governing such amendments. One of the statutes therein, section
33457.1, provides that when an amendment warrants it, the relevant local
legislative body adopting the amendment must make the findings required
to support an initial redevelopment plan, one of which is a finding of blight.
n5 - - - - - - - - - - - - - - Footnotes - - - - - - - - - - -
- - - - n5 Here is the full
text of section 33457.1: "To the extent warranted by a proposed amendment
to a redevelopment plan, (1) the ordinance adopting an amendment to a
redevelopment plan shall contain the findings required by Section 33367 and (2)
the reports and information required by Section 33352 shall be prepared and
made available to the public prior to the hearing on such amendment." Section 33367
provides, in pertinent part: "The ordinance shall contain all of the
following: [P] ... [P] (d) The findings and determinations of the legislative
body that: [P] (1) The project area is a blighted area, the redevelopment of
which is necessary to effectuate the public purposes declared in this
part." - - - - - - - - - - - - End Footnotes- - - - - - - - - - - -
- - (5) And that brings us to the instant appeal,
where we will uphold the trial judge's determination that, under the particular
facts before him concerning an amendment to a redevelopment plan proposed 14
years after the initial plan was adopted, the requirement of a blight finding
to support the amendment was indeed "warranted." We will further
uphold his decision invalidating the amendment because of insufficient evidence
of blight. In doing so, however,
we stress that our decision today is grounded in the particular facts before
the trial judge, which, in sum, were these: The area was originally part of the
unincorporated area of a county, and it was the county that adopted an original
redevelopment plan focusing on traffic improvements. Basically the area in
question was often in a state of gridlock and the county simply wanted to
obtain money to widen area roads. As such, the original redevelopment plan did
not include the power of eminent domain. Then, 14 years later and after the
area had been incorporated into the city of Lake Forest, the city adopted an
amendment to the 14-year-old redevelopment plan adding the power of eminent
domain, and the focus of the city's amendment was no longer traffic
improvement, but the upscale remodeling of two local shopping centers which
were underproducing sales tax revenue. (6) In the process of upholding the trial
judge's decision, we reject the city's argument that section 33368 precludes, a
priori, judicial review of any blight findings made after a
redevelopment plan is originally adopted, even if an amendment
warrants such findings. While section 33368 gives preclusive effect to an original
blight finding made in connection with the initial adoption of a redevelopment
plan, n6 the statute has within it
language which contemplates judicial review of blight findings in timely filed
validation proceedings attacking subsequent amendments to redevelopment
plans pursuant to section 33457.1 when those subsequent amendments warrant
blight findings. - - - - - - - - - - - - - - Footnotes - - - - - - - - - - -
- - - - n6 Here is the
entirety of the text of section 33368: "The decision of the legislative
body shall be final and conclusive, and it shall thereafter be conclusively
presumed that the project area is a blighted area as defined by Section 33031
and that all prior proceedings have been duly and regularly taken. [P] This
section shall not apply in any action questioning the validity of any
redevelopment plan, or the adoption or approval of a redevelopment plan, or any
of the findings or determinations of the agency or the legislative body in
connection with a redevelopment plan brought pursuant to Section 33501 within
the time limits prescribed by Section 33500." - - - - - - - - - - - - End Footnotes- - - - - - - - - - - -
- - Besides which, to
adopt the city's expansive interpretation of section 33368 would read section
33457.1 right out of the statute books. Our opinion should
not, however, be read to establish an automatic rule to the effect that any
time a power of eminent domain is added to a redevelopment plan, a new finding
of blight is ipso facto "warranted." We need not, and do not, go that
far in this decision. n7 It is enough to say that under the facts here,
a new blight finding was certainly "warranted." - - - - - - - - - - - - - - Footnotes - - - - - - - - - - -
- - - - n7 Certain federal
authorities could arguably be read for the proposition that the constitutional public
use requirement means that there must be a current finding of blight
anytime the eminent domain power is added to a redevelopment plan, because
without a finding of blight, redevelopment, when it involves the power of
eminent domain, devolves into nothing more than taking private property for a
purely private use, i.e., simply taking it from one landowner and giving to it
another. (See Cottonwood Christian Center v. Cypress Redevelopment Agency
(C.D. Cal. 2002) 218 F. Supp. 2d 1203, 1228-1229; 99 Cents Only Stores v.
Lancaster Redevelopment Agency (C.D. Cal. 2001) 237 F. Supp. 2d 1123; see
also Tepper, Federal Court Limitations on Redevelopment Agencies (March
2004) 27 Mar. L.A. Law. 12; accord, Hawaii Housing Auth. v. Midkiff
(1984) 467 U.S. 229, 245 [81 L. Ed. 2d 186, 104 S. Ct. 2321] ["A purely
private taking could not withstand the scrutiny of the public use requirement;
it would serve no legitimate purpose of government and would thus be
void."]; Armendariz v. Penman (9th Cir. 1996, en banc) 75 F.3d
1311, 1321 [no judicial deference afforded where public use finding is
demonstrably pretextual]; Cottonwood Christian Center, supra, 218 F.
Supp. 2d at pp. 1229-1230 ["Defendants' planning efforts here appear to
consist of finding a potential landowner for property that they did not own,
and then designing a development plan around that new user."].) Because we
have determined that a new finding of blight was indeed warranted by the particular
facts in this case and that finding was statutorily authorized, we
are spared the necessity of addressing these federal authorities, or any
arguable constitutional implications from the facts of the case before
us. - - - - - - - - - - - - End Footnotes- - - - - - - - - - - -
- - II. FACTS In June 1988, the
Orange County Board of Supervisors passed an ordinance adopting the
"Neighborhood Development and Preservation Project" (Neighborhood Preservation
Project), which was designed to redevelop 14 unincorporated sub-areas of Orange
County. One of the unincorporated sub-areas within the Neighborhood
Preservation Project was the El Toro Project Area. The Neighborhood
Preservation Project set forth the scope of the powers of the redevelopment
agencies for the various subdivisions on both a general and a specific level.
The general power granted was broad enough to allow the controlling
agencies for each zone to address the unique needs of that area. But within
each subdivision, there were specific restrictions on the general power,
limiting the scope of the redevelopment. Out of the 14 zones
covered by the Neighborhood Preservation Project, the El Toro Project Area was
the zone least in need of traditional redevelopment. The main idea for
redevelopment was to obtain tax revenue with which to ease traffic congestion
in the area's main arteries by expanding
street width. n8 Traffic volumes had, after all, nearly doubled at many
intersections at El Toro Road in the previous 10 years (i.e., previous to
1988). The administrative record of those early proceedings shows the area
suffered from few dilapidated or deteriorated structures. n9 - - - - - - - - - - - - - - Footnotes - - - - - - - - - - -
- - - - n8 The original
report to the county supervisors said: "El Toro Road is characterized by
enormous traffic volumes and chronic congestion. Traffic volumes at many
intersections at El Toro Road have nearly doubled in just the last 10 years.
[P] ... . Although this list of needed improvements to El Toro's circulation
system is absolutely essential to adequate[ly] serve the existing demands
placed on these arterials, there are no adequate funds presently available in
the county to pay for these public improvements. It is here where the Orange
County Development Agency can utilize the provisions of California Health and
Safety Code § 33670 to provide the
mechanism for financing these public improvement projects." (Italics
added.) Section 33670 allows
for redevelopment agencies to gain a share of property tax revenues. n9 The report to the
county supervisors noted that there was only one "dilapidated" and
eight "deteriorated" structures in the entire El Toro Project Area,
and of the eight "deteriorated" structures, half (four) were single
family dwellings. - - - - - - - - - - - - End Footnotes- - - - - - - - - - - -
- - The primary
motivation for including the El Toro Project Area within the Neighborhood
Preservation Project was thus not to revitalize the private commercial centers
along the El Toro corridor. Rather, the clear focus of the plan was to provide
roadway and ancillary public infrastructure improvements. And because of that
focus, the original Plan did not include eminent domain power. In fact,
the county's redevelopment agency, in a report to county supervisors, expressly
disavowed the eminent domain power. The report said the agency had
"determined that it can achieve the objectives of this project without the
use of eminent domain." In 1991, about three
years after the Neighborhood Preservation Project was adopted, a subdivision of
the greater El Toro Project Area, now known as Lake Forest, was incorporated.
In 1998 jurisdiction over the El Toro Project Area was transferred to the
city's redevelopment agency. The early 1990's was
a time of great development and growth for many southern Orange County territories
surrounding Lake Forest, and due to rapid retail growth in neighboring cities,
the city lost much of its regional sales tax revenue to businesses in bordering
towns. In fact, retail sales in the
jurisdiction declined by some 30 percent during the period, being lost to
shopping centers in neighboring towns. As noted by the trial judge, it was this
decline in sales and a desire to "reclaim its share of the regional sales
tax pie" that prompted the city to try to "revitaliz[e]" the El
Toro Project Area. Thus, the city
devised and adopted the Amended and Revised Redevelopment Plan (Amended Plan)
on May 21, 2002 by passing Ordinance No. 125. The focus of the Amended Plan was
on revitalizing "commercial and industrial properties while improving and
maintaining the residential portion of the Project Area." This plan would
be quite costly and would affect a large number of properties in the
surrounding area. Perhaps realizing that it could have some trouble obtaining
consent from various affected property owners, the city included the power of
eminent domain in the Amended Plan. n10 - - - - - - - - - - - - - - Footnotes - - - - - - - - - - -
- - - - n10 The city also
included a negative declaration, instead of requiring a formal environmental
impact report. The trial court concluded that the negative declaration was
proper under the California Environmental Quality Act (CEQA). Boelts filed a
cross-appeal challenging that determination, but later requested dismissal of
that cross-appeal, which request we now grant. Accordingly, this opinion in no
way addresses the negative declaration or CEQA issues. - - - - - - - - - - - - End Footnotes- - - - - - - - - - - -
- - The basic reason for
the amendment was to condemn two of the major shopping centers in the El Toro
Project Area, the Saddleback Valley Plaza (The Plaza) and K-Mart shopping
center (The Center) because they were underproducing sales tax revenue. Neither
center had been labeled (or could be rationally labeled) "deteriorated or
dilapidated" in the Neighborhood Preservation Project, though one could
easily imagine either center improved with some upscale remodeling, or maybe
some South Coast Plaza style causeways. The city, however, concluded it would
be impossible for the individual owners of the properties to bear the financial
burden of remodeling the centers. Within less than
three weeks (closer to two) of the city's passage of Ordinance No. 125 in May
2002, plaintiff Harvey Boelts, who has an interest in one of the centers, filed
a validation action to review the validity of the amendment. (See Code Civ.
Proc., § 860 et seq.) Boelts complained
that six of the findings the city made to justify Ordinance 125--including the
finding that the El Toro Project Area was physically and economically
blighted--were not supported by substantial evidence. Boelts sought equitable
relief in the form of a prohibitory injunction blocking the city from expending
any further money on the project until the Amended Plan was properly supported
by findings required under Community Redevelopment Law. The trial court ruled
that the record lacked substantial evidence to support the challenged blight
finding. The court specifically ruled that the addition of eminent domain power
to the Amended Plan was a material and substantial change to the original
Neighborhood Preservation Project warranting new findings of blight. The
court said that the Amended Plan "changes the Plan from encouraging,
facilitating, and assisting property owners with improving their own property,
to allowing the Agency to take private property from its owner to be conveyed
to a third party developer." As a result of the newly added eminent domain power, and because of
the amplification of the revised project, the trial court ruled that an
additional finding of blight needed to be made (pursuant to sections 33457.1
and 33367, quoted in pertinent part in footnote 5 above). The trial court
further found there had been significant changes in the environmental and
economic climates in the El Toro Project Area in the intervening 14 years. The
court opined that the particular blight findings from the original Neighborhood
Preservation Project were made under dramatically different circumstances and
were insufficient to support the amendment. Finding the evidence to support the
Amended Plan insufficient, the court issued an injunction ordering the city to
"refrain from expending any funds on implementation of the Amended and
Restated Redevelopment plan until Amended/Restated Plan is lawfully
adopted." It is from this order that the city appeals. n11 - - - - - - - - - - - - - - Footnotes - - - - - - - - - - -
- - - - n11 The day before
oral argument was to be held, Boelts withdrew his opposition to the appeal and
abandoned his cross-appeal as to CEQA issues (see footnote 10 ante).
However, there is no indication of a settlement of the case, or a stipulation
by the parties to reverse the trial judgment (cf. Code Civ. Proc., § 128, subd. (a)(8) [standards for accepting
stipulated reversals of trial court judgments]). Despite his withdrawal, it
isn't, of course, as if respondent Boelts had failed to file a brief at all--we
have the benefit of thorough and excellent briefing from all sides. Even so,
the legal dynamics are the same as if Boelts simply had failed to file a
respondent's brief. This court is still obligated to determine whether the appellant--here
the city--has shown reversible error. (See Cal. Rules of Court, rule 17(a)(2); In
re Marriage of Davies (1983) 143 Cal. App. 3d 851, 854 [192 Cal. Rptr. 212]
["the respondent's failure to file does not require an automatic reversal"];
In re Marriage of Bukaty (1986) 180 Cal. App. 3d 143, 147 [225 Cal.
Rptr. 492].) - - - - - - - - - - - - End Footnotes- - - - - - - - - - - -
- - III. DISCUSSION A. Section 33368 Does Not Preclude Timely Challenges to
New Blight Findings When Those Findings Are Warranted by Section 33457.1 1. As Shown by the Internal Structure of the Redevelopment
Law The city's
centerpiece argument is that, under section 33368, once an initial
finding of blight is made and the time to challenge that blight finding
has elapsed (60 days, as specified in section 33500), blight is conclusively
established regardless of whether the plan is subsequently amended and
regardless of whether there is substantial evidence to support a blight finding
warranted by that amendment. We have concluded
that the city's argument is based on a misreading of section 33368. The city's
mistake is to read section 33368 in total isolation, instead of in the whole context of the
Community Redevelopment Law. (See Equilon Enterprises v. Consumer Cause,
Inc. (2002) 29 Cal.4th 53, 60 [124 Cal. Rptr. 2d 507, 52 P.3d 685] [noting
that legislative intent behind particular section in Code of Civil Procedure
statute had to be " ' "gleaned from the statute as a whole" '
"]; People v. Acosta (2002) 29 Cal.4th 105, 112 [124 Cal. Rptr. 2d
435, 52 P.3d 624] [" 'We do not, however, consider the statutory language
"in isolation" ... . Rather, we look to "the entire substance of
the statute ... in order to determine the scope and purpose of the provision."
' "]; People v. Murphy (2001) 25 Cal.4th 136, 142 [105 Cal. Rptr.
2d 387, 19 P.3d 1129] ["We must harmonize 'the various parts of a
statutory enactment ... by considering the particular clause or section in the
context of the statutory framework as a whole.' "].) (7) In context, section 33368 is part of the
general procedures for the adoption of an initial redevelopment plan by a local
legislative body. (See § 33360 et seq.)
Immediately preceding the statute is section 33367, and subdivision (d) of
section 33367 requires a number of various findings, including that the
"project area is a blighted area." The conclusive presumption
language of section 33368 is also the culmination of a series of preceding
statutes "replete with preliminary requirements for notice and public hearings,"
in which the taxpayer is given "ample time" to "prepare legal
challenges to the actions of redevelopment agencies." (See Plunkett v.
City of Lakewood, supra, 44 Cal. App. 3d at p. 347.) A redevelopment plan
can last as long as 40 years. (§ 33333.6,
subd. (a).) Obviously many things can happen in 40 years that might necessitate
some change in a plan. (See § 33450
[providing in part, "If at any time after the adoption of a redevelopment
plan for a project area by the legislative body, it becomes necessary or
desirable to amend or modify such plan, the legislative body may by ordinance
amend such plan upon the recommendation of the agency."].) And that raises the
need for amendments. Amendments have their own article, article 12, in the Community
Redevelopment Law, of which section 33368 is not a part. In many
respects the process of amending a redevelopment plan in article 12 parallels
the process of adopting an original one as specified in article 5 (procedures
for adopting a redevelopment plan). Thus section 33450 not only confers
basic authority to amend redevelopment
plans, but explicitly makes them subject to referenda. (See § 33450 ["Except as otherwise provided in
Section 33378, the ordinance shall be subject to referendum as prescribed by law
for the ordinances of the legislative body."].) And, as with original
plans, the statutes governing amendments are "replete with preliminary
requirements for notice and public hearings" (see § § 33451, 33452, 33454, see also § § 33455, 33458) plus specific notice to local
planning commissions (§ § 33453, 33455).
Following these
notice and hearing statutes comes section 33457.1. n12 In section 33457.1's
requirement that the amending ordinance contain certain findings, it functions
as the amending analog to section 33367. Indeed, section 33457.1 appears to be
the only statute within article 12 (governing amendments to redevelopment
plans) that, like section 33367 in the context of initial redevelopment plans,
imposes substantive requirements. Unless we blinked, all the other
statutes in article 12 are procedural. n13 - - - - - - - - - - - - - - Footnotes - - - - - - - - - - -
- - - - n12 However, the last
statute in the article, 33458, is also a hearing provision, to wit an
alternative public hearing provision. n13 Section 33450
speaks of it being "necessary or desirable" to amend a redevelopment
plan, but doesn't otherwise shed any light on the context of "necessary or
desirable," and in any event those words are probably so elastic as not to
impose any substantive requirements. Sections 33451 and 33452 are strictly
devoted to notice and hearings, section 33453 to notice to local planning
commissions, section 33454 is a public hearing requirement, section 33455 is an
elaboration on local planning commission involvement and the need for public
hearings, section 33456 allows recordation, section 33457 requires transmission
of the amendment to tax officials, and section 33458 provides for yet more
public hearings. Only section 33457.1, with its express need to "contain
findings required by Section 33367" if warranted imposes substantive requirements
on the contents of an amendment. - - - - - - - - - - - - End Footnotes- - - - - - - - - - - -
- - Section 33457.1 is
the soul of brevity, because all the heavy lifting is done by incorporation by
reference, specifically to section 33367, the section which, we have seen,
imposes substantive requirements on initial redevelopment plans, including the
need for a finding of blight. The key phrase for our purposes, though, is the
introductory clause, which makes the impositions of the section contingent on
being "warranted." ("To the extent warranted by a proposed
amendment to a redevelopment plan, (1) the ordinance ... shall contain the
findings required by Section 33367" (§
33457.1).) The city offers no
refutation for the idea, unmistakable in the structure of section 33457.1,
that, given the word "warranted," there will indeed be at least some
circumstances where a blight finding under section 33457.1 (incorporating by
reference section 33367) will indeed be "warranted" by a proposed
amendment. n14 - - - - - - - - - - - - - - Footnotes - - - - - - - - - - -
- - - - n14 At one point in
the city's brief it asserts that "Under no circumstances do the statutes
of the Community Redevelopment Law require a community to re-establish blight
to the levels suitable for original plan adoption for an existing redevelopment
project area." There is no authority offered for this statement, though
there is a footnote qualifying it for cases (see § § 33031, 33354.6) when new territory is added.
(App. opn. br. at p. 19.) No attempt is made to confront section 33457.1
either. To the degree that the statement relies on the phrase "suitable
for original plan adoption" as its escape route from the plain operation
of section 33457.1, it is simply contrary to the plain text of section 33457.1,
which says "findings required by Section 33367," not "merely in
the same ballpark as the findings required by Section 33367." To the
degree the phrase "suitable for original plan adoption" is simply
another way of reiterating the city's position that original blight findings
are conclusive no matter what, we deal with that in the next several paragraphs
in the text. - - - - - - - - - - - - End Footnotes- - - - - - - - - - - -
- - The city's model of
the redevelopment statutes seems to be that once a blight finding is made
pursuant to section 33367, the fact of blight is, given the
"conclusive" presumption of section 33368, etched in stone for the
duration of the redevelopment plan. Or, as the city metaphorically describes
its position in its reply brief, there is no such thing as a "
'disappearing' conclusive presumption." (See Rep. Br. at p. 26.) The core problem with
the city's expansive reading of section 33368 is that it elbows section 33457.1
right out of the statute books. (8) Courts do not adopt interpretations of
statutes which render some sections surplus or null. (E.g., Elsner v. Uveges
(2004) 34 Cal.4th 915, 931 [22 Cal. Rptr. 3d 530, 102 P.3d 915] ["We will
avoid constructions that render parts of a statute surplusage."]; Arnett
v. Dal Cielo (1996) 14 Cal.4th 4, 22 [56 Cal. Rptr. 2d 706, 923 P.2d 1]
["Courts should give meaning to every word of a statute if possible, and
should avoid a construction making any word surplusage."].) For example, in California
Teachers Assn. v. Governing Bd. of Rialto Unified School Dist. (1997) 14
Cal.4th 627, 633-634 [59 Cal. Rptr. 2d 671, 927 P.2d 1175], our high court
considered the interpretation of a particular Education Code section involving
vacancies for athletic coach jobs, which essentially said that such vacancies
should "first be made available to teachers presently employed by the
district." The school district, however, was intent on filling an assistant
basketball coach vacancy with someone who did not have a teaching credential.
So the district took the position that the statute merely required it to
advertise openings for coach positions to teachers currently employed in the
district and allow credentialed teachers to apply for such positions, but not
give such teachers any other advantages in the employment process. (Id.
at p. 632.) Our high court
rejected such a parsimonious reading of the statute, and one of the reasons it
did was because the district's interpretation rendered the statute a
"nullity." The statute afforded teachers "no greater rights than
they would have in the absence of the statute." (California Teachers
Assn. v. Governing Bd. of Rialto Unified School Dist., supra, 14 Cal.4th at
p. 634.) So it is in the case
before us. The city's reading of section 33457.1 renders the requirement of a
blight finding, at least when such a finding is "warranted," mere
surplusage. As in California Teachers Assn., the result (insofar as warranted
blight findings are concerned) is no different "in the absence of the
statute." 2. As Shown by the Text of Section 33368 In specific statutory
(as distinct from structural) terms, the city's proffered reading reads the
word "warranted" out of the statute. If, under section 33368, blight
findings are "conclusive" for the entire duration of a redevelopment
plan, a requirement of subsequent blight findings pursuant to a proposed
amendment (as authorized by section 33457.1, if warranted) becomes meaningless.
The Legislature could repeal section 33457.1 and it would make no difference.
n15 The city is, in essence, saying that
under no circumstances are meaningful blight findings (that is, blight
findings that might have a legal consequence on an amendment to a redevelopment
plan) ever warranted. - - - - - - - - - - - - - - Footnotes - - - - - - - - - - -
- - - - n15 There is a
remarkable section of the city's opening brief which attempts to undertake the
point that the city felt itself politically constrained by section
33457.1 to make blight findings in 2002, though it did not consider itself legally
bound to do so. That's the same kind of argument that our high court rejected
in California Teachers Assn., i.e., one which reduces a statute,
obviously intended by the Legislature to create substantive rights, to symbolic
pantomime. - - - - - - - - - - - - End Footnotes- - - - - - - - - - - -
- - Section 33368 was
first enacted in 1963 (see Stats. 1963, ch. 1812, p. 3694). Section 33457.1 was
first enacted in 1977. (See Stats. 1977, ch. 797, § 12, p. 2446.) To the degree that, for sake of
argument, there is an irreconcilable conflict between the two statutes, it is
the earlier (§ 33368) that must give way
to the later (§ 33457.1). (See People
v. Franklin (1997) 57 Cal.App.4th 68, 74 [66 Cal. Rptr. 2d 742]
["where two statutes addressing the same subject are irreconcilable, the
later in time will prevail over the earlier"]; Los Angeles Police
Protective League v. City of Los Angeles (1994) 27 Cal.App.4th 168, 178 [32
Cal. Rptr. 2d 574] ["When two acts governing the same subject matter
cannot be reconciled, the later in time will prevail over the earlier."].)
Thus if section 33368 really does, as the city propounds, establish an
etched-in-stone-until-the-end-of-the-plan rule, it must give way to the extent
that, under section 33457.1 when warranted, substantive blight findings are
required for an amendment. (9) However, the two statutes are readily
reconciled simply by realizing that by its own terms section 33368 does not
apply to timely validation actions, (that is, validation actions brought within
the time limits of section 33500), and that such timely validation actions can
be brought after a redevelopment plan has been amended. When one reads the second
paragraph of section 33368 and its specific reference to section 33500, n16
together with the fact that section 33500 explicitly allows for (timely)
validation actions to amendments to redevelopment plans and also
considers itself declarative of existing
law, n17 the conclusion becomes inescapable that section 33368 by its own terms
does not reach validation actions attacking amendments to redevelopment plans
based on blight findings that were "warranted" pursuant to section
33457.1. - - - - - - - - - - - - - - Footnotes - - - - - - - - - - -
- - - - n16 "This
section shall not apply in any action questioning the validity of any
redevelopment plan or the adoption or approval of a redevelopment plan, or any
of the findings or determinations of the agency or the legislative body in
connection with a redevelopment plan brought pursuant to Section 33501 within
the time limits prescribed by Section 33500." n17 "No action
attacking or otherwise questioning the validity of any redevelopment ...
amendment to a redevelopment plan, or the adoption or approval of such ...
amendment, or any of the findings or determinations of the agency or the
legislative body in connection with such plan shall be brought prior to the
adoption of the redevelopment plan at any time after the elapse of 60 days from
and after the date of adoption of the ordinance ... amending the plan. [P] The
amendments made to this section at the 1977-78 Regular Session of the
Legislature do not represent a change in, but are declaratory of, existing
law." - - - - - - - - - - - - End Footnotes- - - - - - - - - - - -
- - 3. As Shown by Common Sense and Common Law (10) The picture of the law that thus emerges
is exactly what one would expect if one were sitting down and thinking out the
problem of redevelopment and the need to make amendments to redevelopment plans
on a clean slate. The Legislature has recognized that a lot can happen in 40
years and has made allowance for amendments to redevelopment plans which, when
warranted, require new findings of blight. To be true, original blight findings
remain conclusive under section 33368 until a timely validation action
brought pursuant to an amendment (if such findings are warranted under section
33457.1), but, by the very terms of section
33368, only until then. That internal
limitation makes particular sense when one realizes, as the Plunkett
court did, the purpose for the short statute of limitations in section 33500,
after which section 33368 makes the blight finding conclusive. That purpose, as
noted above, is to prevent needless public expenditure or private relocation in
reliance on a redevelopment plan. (See Plunkett v. City of Lakewood, supra, 44
Cal. App. 3d at p. 347.) An amendment to such a redevelopment plan, however, may implicate new public expenditure
or, as in the case before us, private relocation not contemplated when the plan
was originally developed. Thus it would make sense to build in the possibility
of validation actions to amendments. By the same token,
the statutory scheme accords with elementary fair play, as shown by Redevelopment
Agency v. Herrold (1978) 86 Cal. App. 3d 1024 [150 Cal. Rptr. 621]. Herrold
is a common law repudiation of the idea that redevelopment agencies can sandbag
adversely interested parties by sneaking in a finding (in that case a public
use finding) supporting an original redevelopment plan when no one has an
interest in challenging it, and then, years later, claiming that the time
limits of section 33500 insulate that finding from judicial review. In Herrold, a
redevelopment agency filed an eminent domain complaint to acquire an owner's
property, which the owner thought was a mere attempt to transfer his property
to a private company located across the street. So, in the eminent domain
proceeding the owner served written interrogatories asking the redevelopment
agency its intended use of the property and whether the agency had entered into
an agreement to sell his property to the private company across the street. The
agency refused to answer on the theory that the owner was foreclosed from
questioning the validity of its proposed public use because the 60-day time
limits under section 33500 had long elapsed. (See Redevelopment Agency v.
Herrold, supra, 86 Cal. App. 3d at p. 1027.) While the court doesn't say
so, it appears from the opinion that the original redevelopment plan had been
adopted eight years prior to the condemnation proceeding. (See id. at p.
1029.) The trial court denied the owner's motion to compel further
interrogatories based on the lapsed time limits. (See id. at p. 1028.) The appellate court
was particularly influenced by the sandbagging inherent in the use of section
33500 to preclude the owner's challenge, particularly given a later deviation
from the original redevelopment plan. Here is the relevant passage: "The 60-day
limitations period in section 33500 does not apply to the type of challenge
appellant is making here because he is not attacking the legality of the
redevelopment plan as originally adopted, but is questioning the implementation
of the plan with respect to his property. Appellant had no reason to object
when the plan was adopted. It was not apparent at that time that the
agency might be deviating from its resolved purpose and planning an illegal
use for the property (the sale to [the company across the street]) until eight
years after the plan's adoption. Section 33500 cannot be used to immunize an
agency which adopts a redevelopment plan legal on its face, then after the
60-day period has elapsed deviates from its resolved purpose and seeks
to violate the public use requirement of California Constitution article I,
section 14, and the 14th Amendment of the United States Constitution. Section
33500 applies only to attacks on the redevelopment plan as adopted, and not to actions alleging illegal
implementation of the plan." (Redevelopment Agency v. Herrold, supra,
86 Cal. App. 3d at p. 1029, italics added.) To be sure, Herrold
is not totally on point; the owner's challenge was to a public use finding that
is explicitly required by our state constitution, while here the challenge is
to a blight finding that might--or might not--be required by the state or
federal constitution. n18 Even so, the underlying common law abhorrence of bait and switch in
the redevelopment context permeated the Herrold court's decision. - - - - - - - - - - - - - - Footnotes - - - - - - - - - - -
- - - - n18 See footnote 7, ante. - - - - - - - - - - - - End Footnotes- - - - - - - - - - - -
- - Here, as in Herrold,
for example, property owners who might have been alerted to the need to
challenge the original blight findings may have been lulled into acquiescence
because those findings only supported a county's redevelopment plan focused on
traffic and without the power of eminent domain: "Don't worry about our
proposed blight finding, it's only a technicality to get roads widened"
was followed by, 14 years later, "You had your chance to challenge our
blight finding 14 years ago, now you're stuck with it even though we want to
use eminent domain to take away your property." It might not be worth the
effort to fight a blight finding when all it means is that some congested roads
are widened; it certainly is worth the effort if it means the loss of one's
property. Functionally, the
public use issue in Herrold is equal to the blight issue here. Thus, as
in Herrold, Boelt's challenge in the proceeding before us is not to the
"legality" of the county's plan "as originally adopted" but
to the "legality" of a city's plan that deviates in its
"resolved purpose" (14 years earlier the purpose was the elimination
of traffic congestion) and in its powers (14 years earlier there was no power
of eminent domain) from the original plan. Such facts well illustrate why the
Legislature would build into the statutory structure of redevelopment a
mechanism by which an affected property owner could timely challenge a blight
finding if warranted by an amendment. To read section 33368 (in conjunction
with the short time limits prescribed in section 33500) to preclude any
challenge to a blight finding after an original plan is adopted is a recipe for
abuse of the power of redevelopment. B. Judicially Reviewable Blight Findings Pursuant to
Section 33457.1 Were Warranted in this Case Having staked its
case on the theory of an absolute presumption of blight under section
33368--the idea of "once established, always established"--it is not
surprising that the city goes a little lite on the topic of whether judicially
reviewable blight findings here were warranted. It makes a novel argument that
blight findings were "politically" but not "legally"
warranted (see App. Opn. Br. at pp. 30-32), n19 but that argument is only a
permutation of the idea that blight once found is, under section 33368, forever
found (or at least until the termination of the plan). - - - - - - - - - - - - - - Footnotes - - - - - - - - - - -
- - - - n19 It has been the
traditional practice of the federal courts to make specific references to the
briefs and the record in their opinions; it is much rarer in our state's own
reporters. However, briefs are now available on-line, and there is at least
some merit to the idea that scholars should be able to compare what the brief
says with what the court says the brief says. - - - - - - - - - - - - End Footnotes- - - - - - - - - - - -
- - Suffice to say that,
to track the language of section 33457.1 here, "the findings required by
Section 33367" were indeed warranted. In that regard we will not attempt
to improve on trial Judge Jameson's thorough and thoughtful statement of
decision, which we will now adopt as our
own statement of reasons on the point: "The Court finds
that the Challenged Findings were warranted by the adoption of the Amended and
Restated Plan. In its ordinance, the Lake Forest City Council expressly found
that the Challenged Findings were warranted pursuant to Section 33457.1 ...
Even absent the Defendants' City's own legislative determination that the
blight (and other) findings were warranted,[n20] the Court nevertheless finds
that the Challenged findings were warranted. Since the Challenged Findings were
warranted, Defendants are required to support them with substantial evidence.
[P] Neither the record nor the Community Redevelopment Law supports Defendants'
assertions that the findings made by the City were unnecessary. Adding the
extraordinary power of eminent domain to the redevelopment plan by amendment
was material and significant. The record demonstrates that as originally
adopted, the [Neighborhood Preservation Project]'s primary focus for the El
Toro area was on infrastructure improvements. (See, eg. AR 1092-95.) This is
because the El Toro area was relatively well maintained and, although it needed
little in the way of building refurbishment, it had streets with congestion.
With the exclusion of heavy traffic, the El Toro Project Area fared
substantially better than any of the other remaining 13 redevelopment sub-areas
that comprised the [Neighborhood Preservation Project]. In the entire El Toro
Redevelopment Project Area, there was only one 'dilapidated' structure and
eight 'deteriorated' structures. (AR 1046.) The Record demonstrates that the
primary motivation for including the El Toro Project Area within the
[Neighborhood Preservation Project] was not to revitalize the private
commercial centers along the El Toro corridor, but to provide roadway and
ancillary public infrastructure improvements ... . [P] Defendants have also
characterized the Amendment as a 'minor' amendment which 'only' adds the power
of eminent domain. The power of eminent domain is extraordinary. Adding the
power is a material change to the Plan. It changes the Plan from encouraging,
facilitating, and assisting property owners with improving their own property,
to allowing the Agency to take private property from its owner to be conveyed
to a third party developer." - - - - - - - - - - - - - - Footnotes - - - - - - - - - - -
- - - - n20 As one might
expect, much of the city's briefing is directed at the proposition that it
should not be stuck, estoppel-like, with its own determination that blight
findings were warranted. Since we agree with the trial court that blight
findings were objectively warranted regardless of what the city itself
determined, we do not reach the issue. - - - - - - - - - - - - End Footnotes- - - - - - - - - - - -
- - We need only
reiterate at this point that the particular circumstances in this case are so
strong that we need not reach the issue of whether the addition of eminent domain to a redevelopment plan, by
itself, would "warrant" new blight findings under section
33457.1. As the trial judge noted (and it cannot be denied), the power of
eminent domain is indeed an extraordinary one--certainly extraordinary enough
to be the subject of a provision in the Bill of Rights. At least in combination
with a "deviation" (to use the Herrold court's phrase) from
the original plan that never expressly contemplated the need for eminent
domain, was focused on traffic and was not concerned with the makeover
of commercial buildings to marginally increase sales tax revenue, blight
findings were certainly warranted in this case. C. The Trial Court Correctly Concluded that the Evidence
of Blight Was Insufficient to Support Blight Findings Pursuant to Section
33457.1 The city candidly
acknowledges that it did not attempt to justify the amendment adding eminent domain and reshifting the
focus of the El Toro redevelopment plan from traffic to shopping center
improvement based on any condition of blight present in 2002. And in fact the trial
judge's statement of decision pretty much demolishes the idea that the El Toro
Project Area suffers any blight at all. As the trial judge wrote, "Even if
the record did contain some evidence of physical blight and/or economic blight,
which it did not, the record nonetheless fails to provide substantial evidence
of blight because the record does not contain substantial evidence that any of
the alleged blighting conditions are 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." Judge Jameson also
noted that the city's statements about the alleged blight of the area were
"conclusory," and recognized that "conclusory statements
regarding blight ... are inadequate to provide the substantial evidence
necessary to support a blight finding," a point that is, of course,
unassailable. (See Friends of Mammoth v. Town of Mammoth Lakes Redevelopment
Agency, supra, 82 Cal.App.4th at pp. 557-558 ["The language
cited by the trial court from the Final Report is the conclusory type of 'jargon'
courts have criticized as making 'no attempt at any specificity; the reasons
appear to have emerged from the consultants' word processor without any thought
as to why any particular parcel ...' is blighted ... "]; Beach-Courchesne
v. City of Diamond Bar, supra, 80 Cal.App.4th at p. 401 [" 'The city
merely cites certain all-purpose conclusory statements from the consultants'
report which might apply to any property anywhere.' "].) Having had the
benefit of the trial court's criticism, the city has a second chance to point
to blight in this appeal. Here is its best shot: (1) At one of the
shopping centers in the area, there is "antiquated design and numerous
vacancies." (2) The same shopping
center had 23 commercial spaces vacant. (3) The same center
showed "signs of deterioration and deferred maintenance." (4) Conditions (1)
through (3) are the result of "fractured ownership and a land lease
without sufficient time remaining to economically fund revitalization or
redevelopment of the center." (5) Another shopping
center, which once had a K-Mart, had not had an anchor tenant for more than
eight years. (6) This other
shopping center is "in need of site reconfiguration to meet present
retailing demands, and the need for an improved interconnection between that
center and the adjoining center." And that is it, at
least as the city attempts to make the case for blight in its brief. n21 It is
a showing that self-evidently pales into
insignificance besides the showing that was itself held inadequate in the Friends
of Mammoth case. There, to take just one example, a building survey
determined that approximately 29 percent of parcels in the project area
"were affected by buildings suffering from deterioration and
dilapidation." (Friends of Mammoth v. Town of Mammoth Lakes
Redevelopment Agency, supra, 82 Cal.App.4th at p. 551.) Some of that
"deterioration and dilapidation" was supported in Friends of
Mammoth by a definition that included peeling paint, dry rot, deteriorated
roofing, but there was an absence of evidence of lack of safety or
unhealthiness for human occupancy. (See id. at pp. 551-552.) The present
case involves fewer allegedly "deteriorated or dilapidated" buildings
in the project area than one can count
on two hands (and four of those buildings were merely single family homes), and
the city makes zero attempt to shore up the (conclusory) assertions of
dilapidation or deterioration as to even those nine buildings with any
substantive content. It certainly makes no attempt to show any safety or health
problems for those buildings. Nor does the city cite any evidence of health
code violations, structural defects, or even declines in property values. n22 - - - - - - - - - - - - - - Footnotes - - - - - - - - - - -
- - - - n21 See App. Opn. Br.
at pp. 36-38. The preceding portion of its brief (App. Opn. Br. at pp. 34-35)
offers no specific evidence, but speaks only generally in terms of the
following (and only the following): "deterioration and dilapidation of
commercial centers," "abnormally high vacancy rates,"
"fractured property ownership" "defective and antiquated design
of the physical properties, including assessibility deficiencies" and
"inadequate public improvements." Then the brief quotes factors that can
"cause blight" under section 33031 subdivision (a) or (b). But the
presence of a factor that can cause blight can hardly by itself
justify a blight finding For example, section 33031, subdivision (a)(4)
recognizes that "subdivided lots of irregular form and shape and
inadequate size for proper usefulness and development are in multiple
ownership" is a condition that can indeed cause blight. However, no
one could credibly argue that it is a condition that necessarily causes
blight. Some of the most desirable real estate parcels on earth are
characterized by irregular size and multiple ownership, e.g., Burgundy, France,
where French inheritance laws keep making holdings smaller and smaller in the
region. n22 It is quite
understandable why Lake Forest has not vigorously attempted to argue the
sufficiency of its blight finding--his case isn't really, as were Sweetwater,
Friends of Mammoth, or Beach-Courchesne, a sufficiency of
evidence case. The city's briefing on the sufficiency issue impliedly
recognizes that reality. The core issue is its proposition that the county's
blight finding that went unchallenged in 1988 should be accorded conclusive
effect in the context of a validation proceeding targeting the city's amendment
in 2002. - - - - - - - - - - - - End Footnotes- - - - - - - - - - - -
- - IV. DISPOSITION The judgment
invalidating the amendment to the redevelopment plan adopted on May 21, 2002,
is affirmed. In the interests of justice the respondent will recover his costs
on appeal. Aronson, J., and
Ikola, J., concurred. Document URL: http://ceres.ca.gov/ceqa/cases/2005/Boelts_v._City_of_Lake_Forest_(edit).htm Copyright © 1998-2003 California Resources Agency. All rights reserved. |