In February 2003, the law firm of Wilson & Wilson (Wilson) brought an action against the City Council of Redwood City (City Council), the City of Redwood City (Redwood City), and the Redwood City Redevelopment Agency (Redevelopment Agency) (hereafter collectively the City) to challenge the approval and construction of a retail-cinema redevelopment project in Redwood City's downtown. Wilson asked the court to invalidate resolutions enacted by the City Council and the Redevelopment Agency and to void agreements entered into by the City to carry out the redevelopment. The action did not come to trial until 2004, and final arguments were not held until 2007, by which time the retail-cinema project had been substantially completed. Although the City urged the trial court to dismiss the action as moot, the trial court found for Wilson and entered judgment against the City in 2008.
The City appeals from that judgment, arguing that the trial court should have dismissed Wilson's action because it did not present a justiciable controversy. We agree that Wilson's action was not justiciable, and we reverse the judgment and instruct the trial court to dismiss Wilson's action.
In 1982, the City adopted a redevelopment plan to combat the economic stagnation of its downtown area. Initially, the City planned to redevelop two downtown blocks into a retail-cinema, office, and parking project. "Block 1," bounded by Middlefield Road, Broadway Street, and Jefferson Avenue, was to be the site of a retail-cinema development containing ground floor retail and restaurant space and a 20-screen, 4,200-seat movie theatre on the second floor. The area designated "Block 2" is located across Middlefield Road from Block 1 and is bounded by Winslow Street, Middlefield Road, Jefferson
To implement the original plan, the City entered into a disposition and development agreement (DDA) with Western Innisfree Ventures, LLC (the Developer), on January 29, 2001.
Due to a decline in the market for office space following approval of the original project, it became impracticable to construct the office building that had been planned for Block 2. The City and the Developer therefore agreed to eliminate the office-parking structure previously planned for that block and instead to construct the retail-cinema component above a two-level underground parking garage on Block 1. As modified, the new project consisted of approximately 85,000 square feet of ground floor retail and restaurant space, the movie theatre, and an underground parking garage with some 590 spaces (the Project).
On January 8, 2003, the City and the Developer entered into an amended and restated DDA (the ADDA), which superseded the DDA. The ADDA provided that the Developer would pay $7.5 million for acquisition of the air rights parcel needed to construct the retail-cinema portion of the Project, with the City contributing the remaining cost of site acquisition.
The ADDA included a number of provisions concerning parking. In addition to the underground parking spaces located beneath the retail-cinema building, the City contemplated creating approximately 300 offsite parking spaces, with as many as possible on Block 2. To that end, the City agreed that it would "use its best efforts and legally available means to provide additional parking as more particularly described in the Parking Facilities Agreement." The terms of the latter agreement were to be negotiated later in accordance with the "Retail/Cinema Parking Business Points" document (the Business Points) incorporated as attachment 7 to the ADDA. The Business Points declared that "[t]he purpose of the final Parking Facility Agreement is to
Regarding the Block 2 parking lot, the Business Points, echoing the language of the ADDA itself, stated, the "City will use its best efforts and legally available means to acquire the remaining parcels and, if the acquisition is successful, will restripe it to create a total of approximately 300 parking spaces." (Fns. omitted.) A footnote to the foregoing sentence cautioned that the "City cannot, however, commit to making the acquisition before a legally required eminent domain public hearing is held." Another footnote explained that the number of spaces might vary by plus or minus 10 percent, depending upon the City's determination of the number of spaces that could fit on the site.
In November 2002, the City and its environmental consultant completed an addendum to the original EIR (the EIR Addendum). The EIR Addendum found that the changes made from the original redevelopment project, including the elimination of the office building on Block 2, made the Project smaller in scale than the project evaluated in the previously certified EIR. The City concluded that an EIR Addendum was the required CEQA compliance document for the Project because the scope of the Project had narrowed, and the changes tended to reduce the severity of previously identified environmental impacts.
On November 23 and 30, 2002, a notice was published in the Redwood City Tribune announcing that the City Council and the Redevelopment Agency would hold a joint public hearing on December 9, 2002, to review both the ADDA and a revised summary report for the Project. (See Health & Saf. Code, § 33433, subd. (a)(1) & (2).) The City also made the ADDA, the summary report, and the EIR Addendum available for public review. The City sent between 550 and 600 official meeting notices to owners and tenants in the downtown area. Both the notice published in the Redwood City Tribune and the notices sent to downtown area owners and tenants stated that the joint public hearing would be held on December 9, 2002. In addition, the City sent 51 courtesy notices to individuals who had spoken at prior public meetings, whether or not they resided in the vicinity of the Project. The courtesy notices stated that public hearings would be held on December 9 and December 16, 2002. Wilson's principal, Donald Wilson, received the notice specifying only
The City Council and the Redevelopment Agency held a joint public hearing on December 9, 2002, to consider approving the EIR Addendum, approving the summary report, and authorizing execution of the ADDA. According to the minutes of the meeting, several members of the public spoke, including Donald Wilson. The minutes reflect that he urged the City Council to consider whether it should "endorse the expenditure of $26 million . . . to fund a parking structure primarily for the exclusive use of the theatre project." Neither Donald Wilson nor any other speaker raised any environmental issues, and Wilson made no objections concerning the EIR Addendum. He also submitted nothing in writing at the December 9 hearing.
After hearing the comments from the public, members of the City Council responded to the issues that had been raised. At the conclusion of the hearing, the City Council and the Redevelopment Agency adopted resolutions approving the ADDA, the EIR Addendum, and the summary report (the Resolutions).
On February 24, 2003, the City Council and the Redevelopment Agency held a joint meeting at which they agreed to authorize Redwood City, rather than the Redevelopment Agency, to acquire the properties on Block 1 by eminent domain.
Meanwhile, on February 7, 2003, Wilson had filed a complaint against the City. The original complaint contained three causes of action. It sought
For the most part the FAC challenged the Project as too costly to the taxpayers and improperly beneficial to the Developer. The FAC also attacked the Resolutions on certain procedural grounds. Among other things, the FAC claimed the ADDA should be invalidated because the Project had been substantially modified after its initial conception, and therefore a new EIR should have been prepared rather than an EIR Addendum. It also claimed the Resolutions were not preceded by appropriate public input because the public meeting allegedly scheduled for December 16, 2002, had been cancelled and the members of the City Council and the Redevelopment Agency had "plainly predetermined" that the Project would be approved. Finally, Wilson asserted that its property was not required for the Project.
In its prayer for relief, Wilson asked the court to determine that the approvals of the EIR Addendum and the ADDA were "invalid, illegal, void and of no effect." It also requested that the court direct the City Council and the Redevelopment Agency to seek reimbursement "for all monies illegally and improperly spent on the Project." The FAC further asked for a declaration that the Resolutions were not "proper and lawful" and did not "authorize the actions therein stated." Finally, Wilson requested an award of attorney fees and costs.
Between the filing of the FAC and the scheduled date for commencement of trial, Wilson sought no discovery from the City. Although Wilson claimed in its mandatory settlement conference statement that it wanted to "[s]top the . . . Project until a new DDA is negotiated and the total cost is accurately known," at no time did Wilson ask the court for a stay or injunction to halt construction of the Project.
The City filed a motion for summary judgment in the action in August 2003. Among other arguments, the City contended that Wilson had failed to
In its opposition to the City's motion, Wilson did not claim it had raised any CEQA issues at the December 9, 2002 public hearing, but asserted that an unidentified "local businessman" had raised concerns about the depth of the excavation.
The City's reply to Wilson's opposition pointed out the opposition raised issues regarding the City's eminent domain power that were not included in the pleadings. The City objected that Wilson had not sought leave to amend its complaint and contended that allowing Wilson to do so would result in unwarranted delay in resolving the validity of the City's actions.
The trial court denied the City's motion for summary judgment, and trial was then set to begin on April 26, 2004.
Trial in this matter consumed six days. The parties were unable to agree on the issues to be tried, and the City objected that many of the issues Wilson raised were outside the scope of the FAC. Over the City's objection, the trial court permitted Wilson to call several witnesses.
Wilson examined a number of City officials who testified that construction of the Project was proceeding during the trial, a fact acknowledged by both Donald Wilson and Wilson's counsel. Indeed, during his testimony, Donald Wilson acknowledged that one of the parking structures had already been built. In fact, during the course of the trial, Wilson requested that the court
In support of his claim for declaratory relief, Donald Wilson testified that he objected to the City's "contracting to condemn" Wilson's property. Counsel for the City objected that there was no evidence the City had taken any action to take Wilson's property, and the trial court noted, "That's a little premature here I think. It hasn't happened." Later in the proceedings, the trial court again questioned whether the timing of Wilson's challenge to the City's eminent domain power was appropriate.
After the trial, the parties exchanged briefs. A hearing was set for August 2005, but was continued several times and did not occur until June 15, 2007. At that hearing, the City's counsel argued that the Project had been completed and thus the case was moot. She noted that Wilson had not sought to stop construction and that the Project had been completed without any need to take Wilson's property.
The trial court ruled from the bench on Wilson's CEQA challenge and announced that it would dispose of "the other eight or nine issues" by adopting "the positions put forth by [Wilson] as to each of those issues." Without further specifying what the issues were, the court directed Wilson to prepare a proposed statement of decision.
On July 30, 2007, Wilson served a proposed statement of decision, to which the City later filed extensive written objections. The City objected that
On October 19, 2007, Wilson filed general responses to the City's objections. Regarding the City's objection that the proposed decision included unpled claims, Wilson asserted it had made a motion to conform its pleadings to proof at the close of the case. It further asserted the case was not mooted by completion of construction because there was no evidence that "all the performances required under the ADDA are complete." Alluding to its challenge to the City's eminent domain authority, Wilson argued that more parking might still be needed on Block 2 and the City "may still be required to attempt to acquire [Wilson's] property."
With its general responses, Wilson filed a "(Proposed) Revised Statement of Decision." In it, Wilson repeated the claim that it had made a motion to conform its pleadings to proof at the close of trial.
The City filed its objections to the proposed revised statement of decision on December 3, 2007. Once again, the City objected that Wilson's action was not justiciable. It contended declaratory relief was inappropriate because Wilson was not presently under any threat of losing its property. It also noted
On April 25, 2008, the trial court filed the statement of decision proposed by Wilson. It found for Wilson on a number of claims, including Wilson's CEQA challenge, and invalidated the Resolutions. On May 7, 2008, the trial court entered judgment declaring that (1) the Resolutions were invalidated, (2) the City was not authorized to enter into the ADDA, (3) Wilson's property was not needed for the Project, and (4) there was no limitation in the ADDA that would prevent the City from being required to acquire Wilson's property in the future absent a grant of declaratory relief. The judgment did not order the City to take any corrective action.
The City filed a timely notice of appeal. In its opening brief, the City asserted Wilson's case had been mooted prior to judgment by the completion of the Project and that Wilson's claim regarding the condemnation of its property presented no actual and justiciable controversy. Wilson did not deny that the Project had been completed but asserted only that the trial court had received no evidence to demonstrate completion.
In light of the City's arguments, on June 4, 2010, we informed the parties that we intended to take judicial notice of the fact that the Project had been completed prior to issuance of the statement of decision and entry of judgment below. We therefore asked the parties to submit supplemental letter briefs addressing the propriety of judicial notice of this fact. We requested that counsel for the City inform us whether the City had adopted any resolution, ordinance, or other official act certifying completion of the Project.
The City filed a supplemental letter brief and request for judicial notice on June 15, 2010. It attached verified notices of completion for the downtown public parking facility and the "downtown retail-cinema streetscape improvements," both of which predated entry of judgment below. In addition, it attached certified copies of inspection reports showing final inspection and approval of various interior improvements at the Project site, including the completion of the 20-screen theatre buildout. These showed that most of the improvements were completed and finally approved prior to entry of judgment.
The City argues first that Wilson's action was not justiciable, and thus the trial court erred by adjudicating it. The City's argument invokes two different facets of the doctrine of justiciability—mootness and ripeness. First, the City contends Wilson's claims regarding the validity of the Resolutions were rendered moot by the completion of the Project. The City asserts the trial court erred by ruling on claims for which it could grant Wilson no effective relief. Second, the City contends Wilson's request for declaratory relief is not ripe. It argues the trial court improperly ruled on the propriety of the City's power to condemn Wilson's property because it is undisputed that no condemnation has been attempted.
We agree with the City. Under the rules of justiciability developed by the California courts, it is clear that the action below was nonjusticiable, and the trial court therefore abused its discretion in adjudicating it. We reverse the trial court's judgment and remand the matter to the superior court with instructions to dismiss the action.
The City contends Wilson's claims regarding the validity of the Resolutions were moot at the time the trial court decided them. It asserts that completion of the Project deprived the controversy of life and that the trial court's ruling invalidating the Resolutions gave Wilson no meaningful relief. The City notes the trial court's ruling did not and could not halt the Project, which had been completed by the time of judgment. Nor did the trial court order preparation of a subsequent EIR or the renegotiation of the ADDA. Thus, the City argues that we must reverse the judgment for lack of jurisdiction. We agree with the City that reversal is required.
Wilson urges that its claims are not moot for a number of reasons. First, it asserts that completion of the Project would not moot the action because "[i]nvalidation of the Resolutions caused the title to the air-space, and thus [the Project], to revert to the City." Second, in its supplemental brief, Wilson argues that the Project is not truly complete and that "a validation action precludes the possibility of any party acquiring vested rights in the subject matter of the transaction until judgment is entered determining its legality." Third, Wilson contends that the Developer proceeded at its own risk by commencing construction before final judgment in the validation action. None of these arguments is persuasive.
Contrary to Wilson's contention, invalidation of the Resolutions has not caused title to the air space and the retail-cinema portion of the Project to revert to the City. Wilson did not specifically request this relief in the FAC, and it is not mentioned in Wilson's trial brief. This is perhaps unsurprising, because in the court below Wilson took the position that the ADDA did not provide for any such transfer of air rights. In any event, the City pointed out prior to trial that the conveyance of the air rights parcel had already occurred and Wilson had not sought to enjoin it. Wilson did not dispute that the conveyance had taken place, and despite having been alerted to the issue, it did not ask the trial court to invalidate the transfer and return title to the City. And although the trial court did invalidate the Resolutions, it did not expressly return title to the air space to the City.
The record demonstrates that Wilson did not request that the trial court return title to the air rights parcel to the City. It further demonstrates Wilson's understanding that the relief it did request would have no practical effect on the Project. Wilson cannot escape a finding of mootness merely by asserting—for the first time on appeal—that the trial court's judgment effected a reconveyance of title Wilson did not request and the trial court did not expressly order.
Both state and federal courts generally refuse to hear challenges either to permits or contracts for construction once the construction has been substantially completed. Thus, the Fifth Circuit has held that the substantial completion of a retail complex rendered moot challenges to the validity of an Army Corps of Engineers permit for construction of the complex. (Bayou Liberty Assn. v. U.S. Army Corps (5th Cir. 2000) 217 F.3d 393, 397.) Similarly, where a plaintiff sought only declaratory and injunctive relief on the ground that the contract for construction of a sewer treatment facility had been improperly awarded to another bidder, the Seventh Circuit held the matter moot because the facility was 98 percent complete. (James Luterbach Construction Co., Inc. v. Adamkus (7th Cir. 1986) 781 F.2d 599, 602; accord, Florida Wildlife Federation v. Goldschmidt (5th Cir. 1980) 611 F.2d 547, 549 [where construction activity sought to be enjoined had already substantially occurred,
In its supplemental brief, Wilson also takes the position that completion of the physical structure of the Project does not mean the Project is "complete." It concedes that the "theatre shell" was in existence before the entry of judgment, and it further concedes that "the theatre portion of the project is open and operating," but asserts that completion must be determined solely by reference to the terms of the ADDA. Wilson relies on the definition of the Project in section 107 of the ADDA, but that definition actually supports the conclusion that the Project is substantially complete.
Unlike Wilson, we do not find it significant that the City has not produced a "certificate of completion" for the Project. Section 517 of the ADDA states only that "after completion of all construction to be completed by Developer for the Project, Developer may notify the Agency that construction is complete and request issuance of the Certificate of Completion." (Italics added.) The ADDA contains no requirement that the Developer request such a certificate, and the City's obligation to issue one is contingent upon the
Citing Woodward Park Homeowners Assn. v. Garreks, Inc. (2000) 77 Cal.App.4th 880 [92 Cal.Rptr.2d 268] (Woodward Park) and Neilson v. City of California City (2007) 146 Cal.App.4th 633 [53 Cal.Rptr.3d 143] (Neilson), Wilson contends that the Developer proceeded at its own risk by commencing construction before final judgment in the action below. More broadly, it also asserts that the nature of a validation action "precludes the possibility of any party acquiring vested rights in the subject matter of the transaction until judgment is entered determining its validity." Once again, we disagree.
Regarding Wilson's claim that the Developer proceeded at its own risk, the cases upon which Wilson relies are not on point. Woodward Park, supra, 77 Cal.App.4th 880 is distinguishable on its facts. There, a homeowners association challenged the approval of a carwash project proposed by a corporation. (Id. at pp. 881-882.) The trial court entered a judgment ruling that the city
In this case, in contrast, neither the Developer nor the City proceeded in violation of a court order. Wilson filed suit in February 2003, but for reasons not apparent from the record, this matter did not go to trial until May 2004. The parties did not submit their supplemental posttrial briefs until August 2005, and the hearing on the matters briefed was continued several times before it finally took place almost two years later on June 15, 2007. At that hearing, the City's counsel informed the court that the Project was completed and that the case had become moot. The trial court did not issue its statement of decision invalidating the Resolutions until 10 months later, on April 25, 2008, well after the Project had been substantially completed.
Wilson is also partially responsible for its claims becoming moot. It failed to seek a stay of the Project's construction and, as explained earlier, completion of the Project deprived the controversy of life. Had Wilson asked the trial court to stay construction pending a decision on its claims, this problem might have been avoided. (See Fair v. U.S. E.P.A. (9th Cir. 1986) 795 F.2d 851, 854-855 [appellants' challenge to construction of sewer became moot on appeal when sewer completed; appellants responsible for mootness because they failed to request stay pending appeal].) Even if Wilson erroneously believed it had sufficient time to litigate its claims to judgment before completion of the Project, that does not justify its failure to seek a stay. (See Environmental Coalition of Orange County, Inc. v. Local Agency Formation Com. (1980) 110 Cal.App.3d 164, 173 [167 Cal.Rptr. 735].) "Since [Wilson] made no effort to seek preliminary injunctive relief or a stay order in order to preserve the status quo, [it] is not in any position to complain of the very change in circumstances that [it] might have prevented by seeking such relief." (Zoning Bd. of Adjustment v. DeVilbiss, supra, 729 P.2d at p. 359, fn. omitted.)
The trial court found that an actual and justiciable controversy existed between the parties and thus declaratory relief was appropriate. It based this finding on Wilson's ownership of property in the area affected by the Project. It further concluded the matter was ripe because "the ADDA requires [the City] to try to acquire [Wilson's] property." It pointed to the language in the Business Points in which the City stated it would "use its best efforts and legally available means to acquire the remaining parcels," and noted that funds for the acquisition of Wilson's property had already been obtained. The trial court explained that Wilson was under threat of losing its property by eminent domain and that "there is no limitation in the ADDA that would prevent [the City] from being required to acquire the property at a future time absent a grant of the [d]eclaratory [r]elief sought."
The City contends that there was no actual and justiciable controversy concerning Wilson's claim that its property might be condemned at some future date because it is undisputed that the Project was completed before the statement of decision was issued and no attempt has been made to acquire Wilson's property. In the City's view, any such claim is based purely on speculation and is therefore unripe. We agree.
"`Whether a claim presents an "actual controversy" within the meaning of Code of Civil Procedure section 1060 is a question of law that we review de novo.' [Citation.]" (American Meat Institute v. Leeman (2009) 180 Cal.App.4th 728, 741 [102 Cal.Rptr.3d 759].) The same standard of review applies when we determine whether a matter is ripe for adjudication. (Farm Sanctuary, Inc. v. Department of Food & Agriculture (1998) 63 Cal.App.4th 495, 501, fn. 5 [74 Cal.Rptr.2d 75] (Farm Sanctuary).) "To determine whether an issue is ripe for review, we evaluate two questions: the fitness of the issue for judicial decision and the hardship that may result from withholding court consideration. [Citation.]" (Security National Guaranty, Inc. v. California Coastal Com. (2008) 159 Cal.App.4th 402, 418 [71 Cal.Rptr.3d 522].) As we explain, the record in this case demonstrates that Wilson's claims regarding the possible condemnation of its property were not ripe and thus presented no actual controversy that the trial court could adjudicate.
Wilson sought declaratory relief to protect its property from possible future condemnation. Its efforts to demonstrate that this claim was ripe are unconvincing.
This case resembles Silva v. City & County of San Francisco (1948) 87 Cal.App.2d 784 [198 P.2d 78]. In that case, the board of supervisors had declared that the plaintiff's land would be acquired "`when necessary'" and had allocated money in the city's budget for purchase of the land. (Id. at p. 786.) The plaintiff sought a declaration that the proper value of his land was $10,000 "and that if and when defendant chooses to take the property this will be the amount it must pay." (Id. at p. 789.) The court held the case presented no actual controversy because the city "does not deem it `necessary' to acquire the property through condemnation proceedings." (Ibid.)
The same is true here. The City has taken no steps to acquire Wilson's property, and, indeed, it may never do so. As our Supreme Court explained in Selby, supra, 10 Cal.3d at page 118, "[w]hether eventually any part of plaintiff's land will be taken ... depends upon unpredictable future events." (See also Pacific Legal Foundation, supra, 33 Cal.3d at p. 173 ["The primary concern expressed in Selby was that courts not be drawn into disputes which depend for their immediacy on speculative future events."].) Former Justice Reynoso might well have been describing this case when he wrote: "In this case there has been no actual taking, no enforced public use, and no prevention of use by the owner, and there has been no eminent domain proceeding. If the public acquisition becomes a reality remedies are available. Meanwhile, the court may not speculate on the future intention of a public agency."
Nor will Wilson suffer any hardship from a refusal to entertain its challenge to the City's potential future use of its eminent domain powers. It is undisputed that the City has not yet sought to condemn Wilson's property. Indeed, the trial court found, and the City admitted below, that Wilson's property is not needed for the Project. If the City should determine that Wilson's property is needed for some future project, the law requires the City to make a specific finding of that need before exercising its eminent domain powers. (Code Civ. Proc., § 1240.030, subd. (c).) To do so, it would have to adopt a "resolution of necessity," which it admittedly has yet to do. (Code Civ. Proc., § 1245.220; Santa Cruz County Redevelopment Agency v. Izant (1995) 37 Cal.App.4th 141, 149 [43 Cal.Rptr.2d 366] ["A resolution of necessity is a prerequisite to beginning a condemnation action. [Citations.]"].) No such resolution could be adopted without giving Wilson notice and an opportunity to be heard on whether its property is truly needed for any proposed project.
Similarly, Wilson's challenge to the City's possible future exercise of its eminent domain authority is not ripe. The posture of this case would "require a court to speculate about unpredictable future events in order to evaluate the parties' claims." (PG&E Corp. v. Public Utilities Com. (2004) 118 Cal.App.4th 1174, 1217 [13 Cal.Rptr.3d 630].) Wilson's claimed uncertainty about the City's future intentions with regard to its property does not give rise to a justiciable controversy. (Stonehouse Homes, supra, 167 Cal.App.4th at p. 542.) If the City does decide to implement its redevelopment plan so as to affect Wilson's free use of its property, Wilson may challenge the City's action at that time. (Selby, supra, 10 Cal.3d at p. 118.) In the absence of a ripe controversy, the trial court abused its discretion in entertaining the action and declaring the rights of the parties. (Sherwyn v. Department of Social Services (1985) 173 Cal.App.3d 52, 59 [218 Cal.Rptr. 778].)
The judgment is reversed and the matter is remanded to the trial court with directions to dismiss the action. Costs to the City. (Cal. Rules of Court, rule 8.278(a)(1), (2).)
Needham, J., and Bruiniers, J., concurred.