Clews Land & Livestock, LLC v. City of San Diego

• Decision Date: 20 December 2017
• Docket Number: D071145
• Citation: 19 Cal.App.5th 161,227 Cal.Rptr.3d 413
• Parties: CLEWS LAND AND LIVESTOCK, LLC et al., Plaintiffs and Appellants, v. CITY OF SAN DIEGO, Defendant and Respondent, Jan Dunning et al., Real Parties in Interest and Respondents.
• Court: California Court of Appeals Court of Appeals

19 Cal.App.5th 161

227 Cal.Rptr.3d 413

CLEWS LAND AND LIVESTOCK, LLC et al., Plaintiffs and Appellants,

v. CITY OF SAN DIEGO, Defendant and Respondent,Jan Dunning et al., Real Parties in Interest and Respondents.

D071145

Court of Appeal, Fourth District, Division 1, California.

Filed December 20, 2017

Kevin K. Johnson, Carlsbad, and Jeanne L. MacKinnon, San Diego, for Plaintiffs and Appellants.

San Diego City Attorney's Office and Glenn T. Spitzer for Defendant and Respondent.

Schwartz Hyde & Sullivan, Kevin P. Sullivan ; The Jon Corn Law Firm, Jonathan C. Corn, Del Mar, and Arie L. Spangler, San Diego, for Real Parties in Interest and Respondents.

McCONNELL, P. J.

Plaintiffs Clews Land and Livestock, LLC; Barbara Clews; and Christian Clews (collectively, CLL) appeal a judgment in favor of defendant City of San Diego (City) on CLL's petition for writ of mandate and complaint for declaratory and injunctive relief, violation of procedural due process, and equitable estoppel. CLL's petition and complaint challenged the City's approval of a project to build a private secondary school on land neighboring CLL's commercial horse ranch and equestrian facility and the City's adoption of a mitigated negative declaration (MND) regarding the project. The for-profit school, the Cal Coast Academy, is being developed by real parties in interest Jan Dunning, Cal Coast Academy RE Holdings, LLC, and the North County Center for Educational Development, Inc. (collectively, Cal Coast).

CLL contends the court erred by denying its petition and resolving its remaining claims in favor of the City. It argues the City should not have adopted the MND because the Cal Coast Academy project would cause significant environmental impacts in the areas of fire hazards, traffic and transportation, noise, recreation, and historical resources, and because the MND identified new impacts and mitigation measures that were not included in the draft MND. CLL further argues the City should not have approved the project because it is situated in designated open space under the applicable community land use plan and because the City did not follow the provisions of the San Diego Municipal Code (SDMC) applicable to historical resources.

The City and Cal Coast respond that CLL did not exhaust its administrative remedies because it failed to appeal the decision adopting the MND to the San Diego City Council. On the merits, the City and Cal Coast argue the project would not cause any significant environmental impacts in the areas identified by CLL, the project is not inconsistent with the open space designation, and the City complied with the historical resources provisions of the SDMC.

For reasons we will explain, we conclude CLL's challenge to the MND is barred because it did not exhaust its administrative remedies in proceedings before the City. In doing so, we reject CLL's argument that the City's process for administrative appeals—at least as implicated by this project—violates the California Environmental Quality Act (CEQA; Pub. Resources Code, § 21000 et seq. )¹ by improperly splitting the adoption of an environmental document (e.g., the MND) from the project approvals. We further conclude CLL's challenge to the MND fails on its merits, even assuming CLL had exhausted its administrative remedies. Finally, we conclude the City complied with all applicable requirements of the SDMC regarding historical resources and the City's approval of the project does not conflict with the open space designation because the project will be located on already-developed land. We therefore affirm the judgment.

FACTUAL AND PROCEDURAL BACKGROUND

The Project and Its Surroundings

The project consists of a 5,340-square-foot school, divided into three classroom buildings under a single roof, on an approximately one-acre site. The school will have a maximum enrollment of 75 students, with 18 staff members. Along with the school, the project proposes construction of a 24-stall parking lot, landscaping, and removal of certain existing features on the site, including a concrete-filled swimming pool.

A farmhouse at the site was built around 1900 and is a designated historical resource, part of the larger Mount Carmel Ranch (Historical Resources Board No. 391). Cal Coast currently uses the farmhouse as an administrative office, and it will continue to do so following project completion. Several older outbuildings exist at the site as well. The project will not affect the farmhouse or outbuildings, and the school's design incorporates features intended to ensure compatibility with the historic nature of the site.

The site is adjacent to CLL's equestrian facility, the Clews Horse Ranch. The ranch consists of a 45-stall parking lot, corrals, stables, riding areas, a barn, a club house, and two or three single family homes. A riding ring abuts the project site. The ranch has facilities for over a hundred horses and a dozen cattle. Individuals come to the ranch to ride or participate in other equestrian activities. The ranch also holds a popular rodeo.

The project site is situated at the end of Clews Ranch Road, a 1,650-foot private driveway that also provides access to the ranch. It is approximately 20 feet wide and has a posted speed limit of 10 miles per hour. Clews Ranch Road runs east-to-west and connects with Carmel Country Road. At that intersection, a public parking lot serves recreational bicycle and hiking trails in the area. Clews Ranch Road is the sole vehicular accessway for both the project site and the ranch, although a dirt road runs westward from the site and connects with Carmel Creek Road. The project site sits on a bluff above State Route 56, a busy divided highway. Across the highway is a developed suburban area.

The site lies within the "Neighborhood 8" portion of Carmel Valley, a designated community plan area within the City. Under the Carmel Valley Neighborhood 8 Precise Plan, the site is designated as open space. The site is zoned residential MF-1, which allows construction of multifamily dwellings up to a density of seven to fifteen units per acre. MF-1 zoning allows "by right" construction of primary and secondary schools. The site is also within the coastal zone. When the neighboring ranch was permitted in 2007, the City changed its zoning from multifamily residential to agricultural. The ranch is also designated open space.

The City's Initial Study

Cal Coast applied to the City for the approvals necessary to develop the project. In an initial study, City staff determined the project would not have a significant impact on any environmental factors, with the exception of "cultural resources," i.e., archaeological and paleontological resources. Such resources may exist in the project area. However, City staff concluded the environmental impact would be less than significant if mitigation measures were adopted, including on-site monitoring during grading activities.

As relevant here, the initial study also assessed the project's potential impacts on historical resources, fire hazards, land use and planning, noise, recreation, and transportation and traffic. The initial study identified the farmhouse as a historical resource, but it determined that the project's effects on the farmhouse would be less than significant because the farmhouse and outbuilding structures would be maintained and because the school's design was consistent with the City's historical resource regulations. As to fire hazards, the initial study noted the project site was adjacent to native or naturalized vegetation in the Carmel Valley River Enhancement Program (CVREP) area along State Route 56. Based on its location, the project would be subject to brush management regulations. In addition, the project's design incorporated fire resistant materials and tempered glass windows. Based on these factors, the initial study concluded that the project would not "expose people or structures to a significant risk of loss, injury or death involving wildland fires." As to land use, the initial study determined the project was compatible with the community plan and permitted by the underlying multifamily residential zoning. As to noise, it found no environmental impact. The initial study noted that the project would not be a "permanent noise generating source" and "would not expose people to a substantial increase in temporary or periodic ambient noise levels." As to recreation, the initial study concluded the project would have no impact on recreational resources. And as to traffic and transportation, the initial study likewise found no impact. It determined that the project was consistent with the community plan and underlying zoning, would not cause any permanent increase in traffic, and would not result in inadequate emergency access.

The Draft MND and Public Comments

Based on the initial study, City staff prepared a draft MND for the project. The draft MND described the proposed project (albeit as "three modular buildings" rather than a single building), identified the potential impact on cultural resources, and described the mitigation measures Cal Coast would adopt to lessen any such impact. The City's initial study was attached to the draft MND.

Several interested parties submitted comments in response to the draft MND. Two Native American tribes wrote regarding cultural resources. City staff responded by pointing out the mitigation measures in the draft MND. The San Diego County Archaeological Society wrote to clarify the qualifications of any archaeological monitor. A consultant engaged by Cal Coast requested certain technical corrections, including changing the description of the project from "three modular buildings" to "a new single-story building."

CLL submitted comments criticizing the use of an MND for the project. It contended the City was required to prepare an Environmental Impact Report (EIR). Among other things, CLL argued that potential impacts on historical resources, fire hazards, noise, and...