In a classic case of big builder vs. small-town preservationists, the preservationists won Tuesday, Aug. 29, when a judge upheld the city of La Habra’s decision to block a large housing development overlooking the town.
The case may have ended homebuilder Lennar’s $100 million lawsuit against the city, but probably isn’t the last word in the developer’s eight-year effort to construct homes on the city’s leafy Westridge Golf Course.
Exploiting La Habra’s failure to adopt a state-approved housing plan on time, Lennar filed a second application last January to build an even bigger housing development on the 151-acre golf course — an application the city can’t deny based on zoning or the city’s general plan.
In Tuesday’s ruling, Orange County Superior Court Judge Sheila Recio denied Lennar’s petition to reverse the city’s 2020 decision blocking its Rancho La Habra development.
The gated housing project included 448 houses and townhomes, a community center, parks, pools and trails, with just over half of the land preserved as open space.
The judge also denied Lennar’s request to overturn Measure X, a November 2020 referendum banning development of open space without voter approval.
Lennar, the nation’s second-largest homebuilder, argued the city’s denial was tainted by Council member Jose Medrano’s alleged bias and that the city lacked a legal basis for denial.
Measure X amounted to “spot zoning,” since Westridge Golf Course is the city’s only privately owned open space, Lennar’s attorneys argued.
Recio ruled, however, that the evidence didn’t support a finding of bias and that denial of the project wasn’t arbitrary or capricious.
“In sum, the evidence presented does not support (Lennar’s) arguments, and it would be improper for this court to supplant the decision of the city council,” a court minute order quoted the judge as saying.
A city press release hailed the ruling as “a significant victory,” and comments on the city’s Facebook page praised the opinion.
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“Good news!” one comment read. “They sank a bunch of money to steam roll (sic) our little town and it didn’t work.”
“This is an amazing victory for La Habra residents!” said another. “No developer should overturn the will of the people!”
The city statement said Tuesday’s ruling likely renders moot Lennar’s damage claim of $100 million, equal to almost two-thirds of La Habra’s 2022-23 budget.
Nevertheless, Lennar has an alternative plan for developing the golf course. The builder filed an application in January seeking approval under the so-called “builder’s remedy.”
Under that 1990 state law, developers can build residential projects that include affordable housing virtually anywhere in a city without a compliant “housing element” at the time the application is filed.
La Habra’s housing plan won state approval, but not until last April — three months after Lennar’s builder’s remedy application and 18 months after it was due.
City staff determined two weeks ago that Lennar’s builder’s remedy application was incomplete, said Craig Steele, the city’s attorney in the case. But the city received a letter since then detailing additional information necessary to complete the application.
Under Lennar’s new proposal, the developer plans to build 530 homes, or 82 more than the original Rancho La Habra plan.