Trancas Property Owners Assn. v. City of Malibu

Opinion

VOGEL (Miriam A.), J.

— The question in this case is this; To determine whether a development permit issued by the California Coastal Commission was “activated” before its expiration date, should we interpret “project” and “construction” to mean the same thing? Our answer is “no.”

Background

In March 1992, following more than ten years of environmental review, the California Coastal Commission granted a “Coastal Development Permit”

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to Lunita Pacific, L.L.C. for the construction of a condominium project in the City of Malibu. By its terms, the permit provided that “[i]f development has not commenced, the permit will expire” on a date subsequently extended to March 12, 1997. Lunita’s final subdivision map was accepted by the City of Malibu’s engineer in July 1996 and filed with the City’s clerk on August 12 (seven months before the permit’s expiration date). When the Malibu City Council nevertheless refused to approve Lunita’s final subdivision map, Lunita sued the City and won. That case was settled and on September 8, 1997 (after the permit’s expiration date), the City Council approved Lunita’s final subdivision map. On September 10, the Trancas Property Owners Association filed this declaratory relief action against Lunita, the City of Malibu and the Coastal Commission, alleging that Lunita’s permit expired on March 12, 1997, and asking for an injunction to stop Lunita’s construction. The association’s motion for a preliminary injunction was denied. It appeals.

Discussion

Although the permit was to expire on March 12, 1997, only if

“development

ha[d] not commenced” by that date, the Association contends that, pursuant to the Coastal Commission’s regulations (Cal. Code Regs., tit. 14, § 13001 et seq.),

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a coastal permit is not “exercised” or “activated” until the developer has “commenced

construction.”

Since it is undisputed that construction was not commenced by March 12, the Association contends the permit expired on that date. We disagree.