While generally I would opt to talk about all things Alameda, most noteably the East Bay Express’ article on Alameda Development, but rather I have been fascinated with what has been going on in Half Moon Bay. For those not up to speed, it’s basically this: developer buys land many years ago in Half Moon Bay where there were already tentatively approved plans to develop housing by the previous owner. Developer is unable to develop due to City saying that the property now contains protected wetland. Developer says City caused the wetlands. Developer sues and wins a $38 million award. City freaks out because that is nearly three times their annual budget.
And of course, the City of Half Moon Bay is left with a few options: appeal, begin settlement talks with the developer, or do nothing and let Half Moon Bay lapse to become an unincorporated portion of San Mateo County putting it under the jurisdiction of the county.
What would you do?
Personally, I would choose option B: settle. Give the guy land somewhere else, let him develop that to his hearts content on condition that the $38 million award goes away. Appeals are expensive, and from what I understand the appellate lawyers that were brought in to fight this battle are not cheap. From the SF Chronicle, last night this is what HMB decided to do:
The Half Moon Bay City Council on Tuesday night voted to hire a team of appellate lawyers and announced it would fight a potentially ruinous federal court decision that orders the city to pay $36.8 million to a developer in a property dispute.
…
The council voted unanimously to hire Orrick, Herrington & Sutcliffe, a San Francisco law firm that specializes in public finance and corporate law. In the same action, the panel also hired Piper Jaffray, a financial firm that has worked with cities across the state, to serve as a financial adviser.
…The judgment, the council said in a joint statement, threatens the “very existence of our city government.”
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Palo Alto developer Charles “Chop” Keenan, who owns the disputed property in trust, said earlier that he is willing to negotiate with the city. But he indicated that a legal appeal would chill his desire to talk.
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The city had given tentative approval to a previous owner for the development in 1990. A slow-growth bloc won a majority on the City Council in 1996, however, and the council later opposed the development, saying protected wetlands had appeared on the property.
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Former Mayor Deborah Ruddock, who headed the slow-growth majority, said Tuesday that the earlier tentative approval was a “blind decision” that came without an environmental impact study.
She urged the city to fight Keenan, whom she labeled a “predatory” developer.
“If this city goes down, others will too,” Ruddock said. “Send this developer to Nevada.”
I’m not sure what the Nevada comment means, but thought I would throw it in there anyway. It’s ironic that the slow growth majority who opposed the development may in fact get what they want, slow growth as in no growth in a city by the name of Half Moon Bay if the city does indeed go bankrupt and falls under County jurisdiction. If the appeal goes badly, I don’t think there is a way for HBM to come back financially between the award, the legal fees, and the financial adviser fees.
Look the guy is willing to negotiate, do that first. If talks break down, then file the legal appeal.
Blogging Bayport Alameda 
Let’s not forget the part where the politicians and administrator of slow-growth HMB created the wetlands…excerpts from the Judge’s ruling are reported here:
http://www.ibabuzz.com/insider/2007/12/03/vaughn-walker-half-moon-bay-and-a-woodshed/
And, the part where arsonists burned down the developer’s nearby hotel that was under construction.
And, the part where HMB took $1 million from the developer for sewer improvements.
And, the part where HMB shuffled the case from jurisdiction to jurisdiction whenever things turned against the City.
This developer sounds remarkably resilient.
Comment by Mike P. — December 19, 2007 @ 9:52 am
“It’s ironic that the slow growth majority who opposed the development may in fact get what they want, slow growth as in no growth in a city by the name of Half Moon Bay if the city does indeed go bankrupt and falls under County jurisdiction.”
Destroy it in order to save it, has sort of a deja vu ring to it.
Comment by Jack Richard — December 19, 2007 @ 4:39 pm