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Presenting a live 90 minute webinar with interactive Q&A Reviving Dormant Real Estate Projects: Reviving Dormant Real Estate Projects: Legal Considerations Evaluating and Assessing Land Use Entitlements, Discretionary Approvals, and Other


  1. Presenting a live 90 ‐ minute webinar with interactive Q&A Reviving Dormant Real Estate Projects: Reviving Dormant Real Estate Projects: Legal Considerations Evaluating and Assessing Land Use Entitlements, Discretionary Approvals, and Other Key Issues WEDNES DAY, JUNE 5, 2013 1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific T d Today’s faculty features: ’ f l f David P . Waite, Partner, Cox, Castle & Nicholson , Los Angeles hareholder, Gresham Savage Nolan & Tilden , Los Angeles Ellen Berkowitz, S The audio portion of the conference may be accessed via the telephone or by using your computer's speakers. Please refer to the instructions emailed to registrants for additional information. If you have any questions, please contact Customer Service at 1-800-926-7926 ext. 10 .

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  5. Reviving Dormant Real Estate Reviving Dormant Real Estate Projects: Legal Considerations CLE Webinar – June 5, 2013 Strafford Webinars and Publications ff d bi d bli i D David Waite id W it Cox, Castle & Nicholson, LLP Ellen Berkowitz Ellen Berkowitz Gresham Savage Nolan & Tilden PC

  6. Contact Information David Waite Cox, Castle & Nicholson, LLP Cox, Castle & Nicholson, LLP 2049 Century Park East, 28 th Floor Los Angeles, California 90067 (310) 284 ‐ 2200 dwaite@coxcastle.com dwaite@coxcastle com Ellen Berkowitz Gresham Savage Nolan & Tilden PC Gresham Savage Nolan & Tilden, PC 333 South Hope Street, 35th Floor Los Angeles, CA 90071 (213) 213 ‐ 7249 Ellen.Berkowitz@GreshamSavage.com 6

  7. Reviving a Project? Reviving a Project? • What development rights have been granted? p g g • Are those development rights vested? p g • Do project revisions or implementation require further environmental review? 7

  8. Viability of Reviving a Dormant Project i i j • Does it make sense to revive a dormant Does it make sense to revive a dormant project? – What obligations, fees, mitigation measures and – What obligations fees mitigation measures and other conditions may have been imposed on the project? p j – Does the project still work economically? – Are the uses still viable? Are the uses still viable? 8

  9. Potential Obligations Potential Obligations • Be aware of: Be aware of: – Significant infrastructure improvements – Dedications of parkland, streets Dedications of parkland streets – Construction of public facilities – Impact fees I t f – Contractual obligations (i.e., development agreement prevailing wage) agreement, prevailing wage) 9

  10. Potential Liabilities Potential Liabilities – Compliance with environmental regulations Compliance with environmental regulations • Clean ‐ up of contamination • Restoration of habitat • Construction of flood control measures 10

  11. Local Regulation Local Regulation • Check city or county regulations Check city or county regulations • Rules vary – City of Los Angeles City of Los Angeles • Vesting zone change – City of Carson City of Carson • Use of permit – County of Riverside County of Riverside • Map conditions 11

  12. Vested Rights Vested Rights • Common Law Vested Rights Common Law Vested Rights • Vesting Tentative Maps i i • Development Agreements 12

  13. Common Law Vested Rights Common Law Vested Rights • Avco Community Developers, Inc. v. South Coast Reg’l y p , g Comm’n , 17 Cal. 3d 785 (1976) – Common law vesting does not apply unless the developer has: d l h • A validly issued building permit • Performed substantial work P f d b t ti l k • Incurred substantial liabilities in good faith reliance upon the building permit reliance upon the building permit 13

  14. Refinements of Avco Rule Refinements of Avco Rule • Vested rights granted by governmental permit Vested rights granted by governmental permit are no greater than those rights specifically granted by the permit granted by the permit – Santa Monica Pines, Ltd. v. Rent Control Bd. 35 Santa Monica Pines Ltd v Rent Control Bd 35 Cal.3d 858 (1984) 14

  15. Refinements of Avco Rule Refinements of Avco Rule • A governmental permit must be valid to g p vest rights – Strong v. County of Santa Cruz , 15 Cal.3d 720 Strong v. County of Santa Cruz , 15 Cal.3d 720 (1975) • Even if the property owner did not know of Even if the property owner did not know of the defect in the permit – Pettit v City of Fresno 34 Cal App 3d (1973) Pettit v. City of Fresno , 34 Cal.App.3d (1973) 15

  16. Refinements to Avco Rule Refinements to Avco Rule • No vested right in existing zoning anticipated No vested right in existing zoning, anticipated zoning, or zoning for highest and best use – Gilliland v. County of Los Angeles , 126 Cal.App.3d 610 (1981) 610 (1981) 16

  17. Refinements to Avco Rule Refinements to Avco Rule • Vested rights can be lost if development Vested rights can be lost if development threatens public safety – Davidson v. County of San Diego , 49 Cal.App.4th 639 (1996) 639 (1996) 17

  18. Refinements to Avco Rule Refinements to Avco Rule • Vested rights can also be lost if abandoned Vested rights can also be lost if abandoned – Fact intensive inquiry – Stokes v. Board of Permit Appeals 52 Cal. App. 4th 1348, 1357 (1997); Pardee Construction Company v. California Coastal Commission, 95 Cal.App.3d 471, 157 Cal.Rptr. 184 (1979) 18

  19. Expiration of Building Permit Expiration of Building Permit • Impact of expiration of building permit Impact of expiration of building permit • Some city codes require new building permit even if rights vested permit even if rights vested • Compliance with CALGreen? 19

  20. Vesting Tentative Maps Vesting Tentative Maps • Subdivision Map Act; Govt. Code § 66498.1 et seq. p ; q § • Adopted in 1984 in reaction to Avco and experience p p with development agreements • Get vested right to proceed with development in substantial compliance with local ordinances, policies and standards when map application is policies, and standards when map application is deemed complete 20

  21. Vesting Tentative Maps (cont.) Vesting Tentative Maps (cont.) • City must process map – approve or deny based on y p p pp y statutory criteria • Not a legislative act – not subject to referenda (is subject to CEQA) • Does not control exercise of city’s discretion on future land use decisions (e g CUP) no guarantee future land use decisions (e.g., CUP), no guarantee that will be approved 21

  22. Vesting Tentative Maps (cont.) Vesting Tentative Maps (cont.) • Map Act provides for life of maps Map Act provides for life of maps • Annexing Cities are not subject to county i Ci i bj approved vesting maps (incorporating cities are) ) 22

  23. Contents of a Vesting Map Contents of a Vesting Map • Says “vesting” on the map • Additional local requirements – Cities and counties must adopt implementing ordinances – Cities and counties may impose conditions Cities and counties may impose conditions reasonably related to the rights conferred – Cities and counties may require information Cities and counties may require information related to standards established for approving a vesting maps 23

  24. Development Agreements Development Agreements • Govt. Code § 65864 et seq. Govt. Code § 65864 et seq. • Authorized in 1979 in reaction to Avco • Private contract between city/county and developer Private contract between city/county and developer • Discretionary legislative action (subject to referendum) referendum) • Subject to CEQA • 90 day statute of limitations 90 day statute of limitations 24

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