McDONALD, Acting P. J.
Plaintiff and petitioner San Diegans for Open Government (SDOG) appeals a judgment denying its petition for writ of mandate and complaint for declaratory and injunctive relief that challenged a decision by defendant and respondent City of San Diego (City) approving a real property lease with defendant and real party in interest BH Partnership (BH). The approval required an appraisal by an independent appraiser under City's municipal code and, on appeal, SDOG contends City erred by approving the lease because the evidence is insufficient to support its finding the appraisal of the property was performed by an independent appraiser.
Since 1953, BH and its predecessors have leased from City certain real property in Mission Bay Park on which it operates the Bahia Resort Hotel. On November 26, 2012, the city council approved a 40-year lease agreement that would extend BH's tenancy of that property. However, because that approval did not include a statement of the property's fair market value, approval of the lease agreement was placed on the city council's agenda for
At city council's February 26, 2013, meeting, Goodwin appeared and discussed his $17.8 million appraisal of the fair market value of the property. James Barwick, director of City's real estate assets division, also appeared and stated Goodwin's methodology was sound. Although Goodwin's staff did not perform its own appraisal of the property's fair market value, it had prepared and submitted an extensive economic model. Members of the city council questioned Goodwin regarding his independence. The city council included Goodwin's appraisal in its resolution and then approved the new lease agreement.
In April 2013, SDOG filed a petition for writ of mandate and complaint for declaratory and injunctive relief, challenging City's approval of the lease. SDOG's operative first amended petition and complaint alleged that City's approval of the lease did not comply with San Diego Municipal Code section 22.0901, subdivision (a)(3).
On November 18, 2014, after considering written and oral arguments of counsel, the trial court issued a minute order denying the petition and complaint because it concluded substantial evidence supported City's finding that Goodwin was an independent fee appraiser. On December 4, the court entered its judgment against SDOG, denying all relief it sought. SDOG timely filed a notice of appeal.
"Substantial evidence is evidence that a rational trier of fact could find to be reasonable, credible, and of solid value. We view the evidence in the light most favorable to the [decision] and accept as true all evidence tending to support the [decision], including all facts that reasonably can be deduced from the evidence. The evidence is sufficient to support a factual finding only if an examination of the entire record viewed in this light discloses substantial evidence to support the finding." (Pedro v. City of Los Angeles (2014) 229 Cal.App.4th 87, 99 [176 Cal.Rptr.3d 777].) "There is a presumption the agency's findings are supported by substantial evidence, and appellants have the burden of demonstrating otherwise." (Schutte & Koerting, Inc. v. Regional Water Quality Control Bd. (2007) 158 Cal.App.4th 1373, 1384 [71 Cal.Rptr.3d 54].)
SDOG contends the city council erred by approving the lease between City and BH because the evidence is insufficient to support its finding the appraisal of the property was performed by an "independent" fee appraiser within the meaning of section 22.0901.
At the February 26, 2013, meeting of the city council, Robert Gleason, BH's chief financial officer and general counsel, appeared at the meeting on behalf of BH and discussed Goodwin's experience, credibility, and independence, stating:
Barwick, City's director of real estate assets, stated: "I believe the methodology [used by Goodwin] was sound. I believe Mr. Goodwin did a very diligent research [sic] in arriving at his numbers, did a discounted cash flow, which I believe is a very reasonable way to value this property."
Goodwin appeared at the hearing, stating he "probably worked on almost every hotel here [in San Diego] developed before 2004." City councilmember Zapf asked Goodwin whether "the Evans family [i.e., BH]" at any time asked him "to skew things in their favor or anything like that?" Goodwin replied: "No. [¶] I've worked for competitors. I've worked for competitors of the Bahia. I've worked for developers. I've worked for financial institutions. My independence is absolutely my life blood. I cannot even remotely consider bowing to anything of that nature." (Italics added.) Zapf asked Goodwin whether his reputation would be at stake if he provided a valuation skewed in favor of who paid for it. He replied, "Of course."
City council president Gloria asked Goodwin whether he was "in any way dependent on — or subject to the control, restriction, modification, or limitation by any given outside source?" Goodwin replied that he was governed by
SDOG filed the instant amended petition for writ of mandate and complaint for declaratory and injunctive relief, challenging City's approval of the lease on the ground that City's approval of the lease did not comply with section 22.0901, subdivision (a)(3). SDOG argued Goodwin did not qualify as an independent fee appraiser under the San Diego Municipal Code because he was retained or otherwise compensated by one of the real parties in interest (i.e., BH) and the city council's resolution approving the lease did not contain a statement of the market value of the property as appraised by an independent fee appraiser or City staff.
The trial court issued a minute order denying the petition because substantial evidence supported City's finding that Goodwin was an independent fee appraiser and then entered its judgment against SDOG, denying all relief it sought.
Based on our review of the record, we conclude there is substantial evidence to support the city council's implicit finding that Goodwin was an "independent" fee appraiser within the meaning of section 22.0901, subdivision (a), which provides: "No real property belonging to the City shall be leased except in pursuance of a resolution passed by a majority vote of all members of the Council, which shall contain the following: [¶] (1) [t]he reason for leasing such real estate; [¶] (2) [a] description of the real estate to be leased; [and] (3) [a] statement of the market value of such real estate as appraised by an independent fee appraiser or City staff."
SDOG asserts we should adopt the definition of "independent" as set forth in Black's Law Dictionary (10th ed. 2014) at page 887, column 2, i.e., "[n]ot subject to the control or influence of another...." Assuming arguendo, without deciding, that definition should apply to the term "independent" as used in section 22.0901, there nevertheless is substantial evidence to support the city council's finding Goodwin satisfied that standard for an independent fee appraiser.
Contrary to SDOG's argument, the purported lack of "unbiased" evidence does not show there is insufficient evidence for that finding by the city council. The statements by Gleason and Goodwin are not necessarily deemed incredible, unreliable, and/or untrustworthy simply because they may have been self-serving, as SDOG argues. (Jutzi v. County of Los Angeles (1987) 196 Cal.App.3d 637, 653 [242 Cal.Rptr. 74].) Rather, the city council could rationally consider the purported self-serving nature of their statements and nevertheless conclude they provided sufficient evidence of Goodwin's independence. To the extent SDOG cites evidence and/or inferences from the evidence that would have supported a contrary finding by the city council, it misconstrues and/or misapplies the substantial evidence standard of review. (Pedro v. City of Los Angeles, supra, 229 Cal.App.4th at p. 99; Schutte & Koerting, Inc. v. Regional Water Quality Control Bd., supra, 158 Cal.App.4th
To the extent SDOG argues section 22.0901 requires an appraiser to be an "MAI" (member of the Appraisal Institute) appraiser in order to be an "independent" fee appraiser under its provisions, SDOG does not cite any case or other authority holding, and does not otherwise persuade us, that an appraiser cannot be considered independent, whether under section 22.0901 or otherwise, unless he or she is a member of a particular appraisal organization (e.g., an MAI appraiser).
To the extent SDOG argues the term "independent" under section 22.0901 should be interpreted in the same manner as it is applied in the lease agreement between City and BH, we disagree. As SDOG notes, the lease agreement provides that future rent adjustments are to be determined by a "qualified professional independent real estate appraiser." It further provides the appraiser shall be selected by the mutual consent of City and BH from a list of appraisers approved by City. However, if the parties do not agree on a particular appraiser, then City and BH shall each select an appraiser and those two appraisers shall select a third appraiser to make the rent adjustment. Contrary to SDOG's assertion, the lease agreement's procedure for making future rent adjustments has little relevance to, and does not establish, the meaning of an "independent" fee appraiser under section 22.0901. First, because the lease agreement was entered into by the parties after section 22.0901 was originally adopted and subsequently amended, its use of the term "independent" cannot be determinative of the legislative intent underlying section 22.0901. Second, although the lease agreement uses the term "independent" appraiser, it further provides a mechanism for selecting an "independent" appraiser from a presumably large base of qualified "independent" appraisers.
Contrary to SDOG's assertion, the fact City's attorney declined to provide an opinion whether Goodwin was an "independent" fee appraiser under
Finally, contrary to SDOG's apparent assertion, no independent corroboration of Goodwin's appraisal was required by section 22.0901 for the city council to approve the lease between City and BH. Although Barwick ultimately agreed with Goodwin's methodology and implicitly concurred with his appraisal, corroboration of Goodwin's appraisal by Barwick or any other person was not required for the city council to approve the lease.
In its respondent's brief, BH requests that we impose sanctions against SDOG for its purportedly frivolous appeal in this matter. We have considered SDOG's arguments in this appeal and decline to impose sanctions against it. (Code Civ. Proc., § 907; Avila v. Continental Airlines, Inc. (2008) 165 Cal.App.4th 1237, 1261 [82 Cal.Rptr.3d 440].)
The judgment is affirmed.
O'Rourke, J., and Irion, J., concurred.