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Posts Tagged ‘urban decay’


General Plan Update Size Limit Not Likely to Cause Urban Decay, Local Commercial Real Estate Agent Letter “Speculative,” Not Substantial Evidence of a Fair Argument

Thursday, January 4th, 2018

In Visalia Retail, LP v. City of Visalia (2018) 20 Cal.App.5th 1, the Fifth District Court of Appeal affirmed a trial court judgment maintaining a general plan amendment and accompanying EIR limiting commercial tenants to 40,000 square feet of space. A letter from a local commercial real estate agent predicting that the size cap would cause grocers to refuse to locate in the neighborhood commercial centers leading to a “downward spiral of physical deterioration” was insufficient to support a fair argument of an environmental impact.

On October 14, 2014, Visalia City Council approved a final EIR for the City’s general plan update establishing a 40,000 square foot cap on tenants in neighborhood commercial zones. Visalia Retail, LP brought suit claiming that the potential for urban decay was not adequately addressed in the EIR. The trial court denied the petition. Visalia Retail timely appealed.

Appellant claimed that the EIR was insufficient for failing to consider the potential for urban decay as large stores would be discouraged from establishing themselves in the neighborhood under the new restriction on square footage. The Court, unconvinced, found that CEQA is focused on significant environmental effects, not purely economic impacts. Relying on Joshua Tree Downtown Business Alliance v. County of San Bernardino (2016) 1 Cal.App.5th 677, the Court found CEQA environmental review of potential for urban decay is only appropriate where there is a potential for physical deterioration. Absent such a showing, CEQA is satisfied.

The primary evidence of urban decay submitted by Appellant was a letter prepared by a local commercial real estate agent who claimed the 40,000 square foot cap would discourage grocers from locating in neighborhood commercial centers, “which will cause vacancies, which in turn will result in urban decay.” The real estate agency offered the following support for these claims: (1) the real estate agent was personally unaware of any grocers willing to build new stores under 40,000 square feet; (2) a “typical” large grocer requires at least 50,000 square feet to profit at any one site; (3) a recent line of 10,000 – 20,000 square foot stores was unsuccessful; and (4) three Visalia stores under 40,000 square feet went out of business.

The Court found the letter to be speculative and not rising to the level of substantial evidence on which a fair argument of urban decay could be predicated. First, the limit of the real estate agent’s personal knowledge did not preclude the existence of stores that may be willing to come into the area or have an atypical store size. Further, the fact that other stores were unsuccessful, some a quarter the size of the cap, was not evidence that stores will fail in the City in the future, especially absent discussion or explanation of why they failed. The letter demonstrated speculative causation and failed to show that urban decay would likely result from the cap.

Appellants also claimed the cap made the City’s general plan internally inconsistent by discouraging development in neighborhood commercial sites where the general plan encourages such infill. The Court, presuming the general plan amendment was correct under established precedent, clarified that “just because the general plan prioritizes infill development, avoiding urban sprawl, does not mean all of its policies must encourage all types of infill development. General plans must balance various interests and the fact that one stated goal must yield to another does not mean the general plan is fatally inconsistent.” Essentially, the general plan may give preference to infill that has a 40,000 square foot cap and still be internally consistent.

The Court affirmed the trial court judgement.

Key Point:

Evidence of economic impacts alone is insufficient to support a claim that a project will result in urban decay; urban decay need only be addressed by an EIR where there is potential for physical deterioration.

A single comment letter, unsupported by facts, explanation, or critical analysis, does not raise to the level of “substantial evidence of a fair argument” required by CEQA.

First District Court of Appeal Rejects Urban Decay Claim Against Courthouse Relocation Project for Failure to Show a Substantial Environmental Impact

Friday, September 15th, 2017

In Placerville Historic Preservation League v. Judicial Council of California (2017) 16 Cal. App. 5th 187, the First District Court of Appeal affirmed the trial court and upheld the Judicial Council of California’s (“Judicial Council”) certification of an EIR analyzing the relocation of a courthouse (“Project”) in the City of Placerville (“City”). The Project involves the consolidation of trial court operations from the historic downtown Main Street courthouse and a County administrative complex into a new three-story building on undeveloped land adjacent to the County jail, located less than two miles from downtown Placerville. Plaintiffs challenged Project approval and filed a writ of mandate alleging that the Project would create substantial urban decay. The trial and appellate court reasoned that although the courthouse would impact some businesses in the area, that plaintiffs had not met the evidentiary burden to establish a substantial impact satisfying CEQA.

After the Judicial Council certified the final EIR in June 2015, the plaintiff, a group of County citizens with “a particular interest in the protection of El Dorado County’s environment,” sued the Judicial Council. Although the plaintiff’s petition alleged four deficiencies in the EIR, only one of them, the failure to treat the potential for urban decay resulting from relocation of courthouse operations as a significant environmental impact, was ultimately argued at the trial court. The trial court found in favor of the Judicial Council.

On appeal, the court concluded that under CEQA urban decay is defined as “physical deterioration of properties or structures that is so prevalent, substantial, and lasting a significant period of time that it impairs the proper utilization of the properties and structures, and the health, safety, and welfare of the surrounding community.” Citing Joshua Tree Downtown Business Alliance v. County of San Bernardino (2016) 1 Cal.App.5th 677, 685, the court further provided that physical deterioration includes “abnormally high business vacancies, abandoned buildings, boarded doors and windows, parked trucks and long-term unauthorized use of the properties and parking lots, extensive or offensive graffiti painted on buildings, dumping of reuse or overturned dumpsters on properties, dead trees and shrubbery, and uncontrolled weed growth or homeless encampments.”

In applying the definition of urban decay to the facts of this case, the court held that physical deterioration was not a reasonably foreseeable consequence of terminating judicial functions at the Main Street courthouse.

Finally, the court found that an informal survey submitted by a local resident that suggested that some businesses would lose revenue as a result of the Project, is little more than anecdotal evidence where the nature of the survey is not explained, including the manner in which participants were selected, the proportion of businesses participating, and the number responding that there would be no effect on their businesses. Distinguishing this case from Bakersfield Citizens for Local Control v. City of Bakersfield (2004) 124 Cal.App.4th 1184, the court found that the administrative record in this case did not contain sufficient evidence supporting the validity of concerns about the Project impacts, such as an economic study and articles related to the risk of urban decay.

Key Point:

The First District elaborated on and applied the definitions of environmentally significant “urban decay”, and reinforced the level of evidence required to conclude that project-related physical deterioration is a significant and reasonably foreseeable consequence of a project.