Half Moon Bay grapples with $36.8 million judgment against it

San Francisco Chronicle ^ | 12/18/7 | John Coté

[SmithL]

Half Moon Bay is wrestling with unpleasant options for responding to a court ruling that officials say threatens the "very existence of our city government" - a $36.8 million judgment against the city for turning a proposed housing development site into wetlands.

Under the worst-case scenario, officials say, Half Moon Bay would become the first Bay Area city forced to dissolve, and the coastal town's land would become an unincorporated part of San Mateo County.

Members of the City Council say that's unlikely, and they plan to vote at a public meeting tonight to retain an appellate law firm and a financial consultant to advise them on how to tackle a court judgment that is more than three times Half Moon Bay's $10 million annual budget.

Appealing U.S. District Judge Vaughn Walker's Nov. 28 ruling could be a stretch for the city of 12,300, however. A court might require Half Moon Bay to put up a multimillion-dollar security bond just to fight the decision.

Funding such a bond would mean "significant budget cuts across the board," the City Council said in a joint statement last week. "Everything will be affected - parks, streets, libraries, repairs - every municipal function will face cuts."

Paying the judgment outright appears to be out of the question. The City Council said: "The very existence of our city government is threatened."

The dilemma arose from a long-running dispute over a 24-acre parcel just east of Highway 1 that is flanked by housing developments, spotted with trees and choked by 6-foot-tall weeds.

The property, known as Beachwood, is owned in trust by Palo Alto developer Charles "Chop" Keenan, whose trustee bought it in 1993 for $1 million in a foreclosure sale and planned to build an 83-unit residential subdivision.

[antinomian]

Privatize the city government along with its right to tax, and give it to the plaintiff. Bet the rest of the city governments around the country become much humbler.

[jim_trent]

I have been following this case and have read the entire judges report. The City was acting in incredibly bad faith and had been for years. They already bankrupted a previous owner of the land and were trying to bankrupt this one. The City and everyone in it deserve this.

[Publius6961]

BUMP for lots of comments later...

Some city and County governments are indistinguishable from the mafia, or drug lords, and they have been getting away with it in California, for decades!

The RICO statutes should apply, and the perps made personally responsible.

From the chamber of commerce:
Residential development and tourism development caters to the executive lifestyle. The median priced home is in the $700,000, with most newer and golf course homes in the $900,000 - $1,500,000 range.

And this statement defines all too clearly the strategy of the perps, who have a total ignorance of Constitutional restraints, or a complete indifference to them:

A slow-growth bloc had won a majority on the City Council in 1996

[Publius6961]

This is long and possibly tedious, but the wealth of history, prior decisions and discussions on the concept of "private property" is priceless, and worth the few hours' worth of time to study it carefully:

Yamagiwa vs Half Moon Bay Decision

[Young Scholar]

A million a year wouldn’t even cover interest on the judgment, so the debt would just get larger.

[goldstategop]

They can ask Sacramento for the money.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[glorgau]

The City was acting in incredibly bad faith and had been for years.

I can't agree more. It is simply jaw dropping to experience the attitudes in that area - enforced scarcity that is a blatant attempt to keep land prices high.

[DB]

A few more judgments like this and perhaps a few more cities will offer a little more respect to private property rights. For many the city council’s whims are the law with little or no recourse. Screw'em.

[FormerACLUmember]

Paying the judgment outright appears to be out of the question. The City Council said: "The very existence of our city government is threatened."

Good riddance to a bunch of leftist thieves. Find honest jobs.

[mad_as_he$$]

When it comes to property rights in Coastal Kalifornia -basically there are none. You are at the mercy of the Coastal Commission who makes rules with very little public comment and are not elected by the public. They suck big time. They make the air and water boards look like pikers.