Opinion
The City and County of San Francisco (the city) appeals from a writ of mandate ordering it to set aside a resolution of its board of supervisors (the board) initiating the process of designating The First St. John’s United Methodist Church as a landmark pursuant to article 10 of the city’s planning code, entitled “Preservation of Historical Architectural and Aesthetic Landmarks.” The superior court concluded that the board exceeded
Background
The First St. John’s United Methodist Church
The property known as The First St. John’s United Methodist Church, located at 1601 Larkin Street in San Francisco (the property), was constructed in 1911. The property is eligible for listing on the National Register of Historical Places and the California Register of Historical Resources. For some 90 years the property was used to conduct religious services. Due to changing demographics and declining membership, the congregation decided that it could no longer afford to maintain the property. In March 2004, the congregation merged with another local United Methodist congregation and transferred ownership of the property to The Califomia-Nevada Annual Conference of the United Methodist Church (the church), a Californiа religious corporation and administrative arm of the United Methodist Church.
When title was transferred, the building was being used only as a daycare and children’s preschool facility. Soon thereafter it was determined that the unreinforced masonry building was unsafe for occupancy and needed significant seismic retrofitting, among other repairs. The building was vacated in 2005 and ever since has remained vacant. The church concluded “that because the congregation no longer wanted or needed to occupy the property, along with the fact that the structure was dilapidated, potentially hazardous and in need оf significant structural attention, the only rational decision was to demolish the building.” According to the church’s director of administrative services, “The property has no use within the church’s mission except as an important source of revenue to be generated by a sale. The church intends to use the sale proceeds to further its ministry in the city, where it has 14 congregations.” In 2004 the church contracted to sell the property to Pacific Polk Properties, LLC (Pacific Polk), for the development of a 27-unit residential condominium project. Appropriate applications were filed with the city’s planning and building inspection departments to obtain permission to raze the property and to proceed with construction. A demolition permit has not yet been issued.
Government Code 1 section 25373, which applies to counties, provides in subdivision (b) that the board of supervisors “may, by ordinance, provide special conditions or regulations for the protection, enhancement, perpetuation, or use of places, sites, buildings, structures, works of art and other objects having a special character or special historical or aesthetic interest or value.” A separate comparable authorization applies to citiеs. 2
In 1994, by Assembly Bill No. 133 (1993-1994 Reg. Sess.), the Legislature amended both statutes to allow religiously affiliated organizations to exempt their noncommercial property from new restrictions that otherwise might be imposed by local landmark designation. Subdivision (d) was added to section 25373 and provides: “Subdivision (b) shall not apply to noncommercial property owned by any association or corporation that is religiously affiliated and not organized for private profit, whether the corporation is organized as a religious corporation, or as a public benefit corporation, provided that both of the following occur: [f] (1) Thе association or corporation objects to the application of the subdivision to its property, [f] (2) The association or corporation determines in a public forum that it will suffer substantial hardship, which is likely to deprive the association or corporation of economic return on its property, the reasonable use of its property, or the appropriate use of its property in the furtherance of its religious mission, if the application is approved.” (Stats. 1994, ch. 1199, § 1, p. 7272.) A virtually identical provision was added to the section governing cities. (§ 37361, subd. (c); Stats. 1994, ch. 1199, § 2, p. 7273.) In
East Bay Asian Local Development Corp.
v.
State of California
(2000)
Administrative and Judicial Proceedings
A
draft environmental impact report (DEIR) for the project was published on April 14, 2007, and on May 16, 2007, the local Landmarks Preservation Advisory Board conducted a public information hearing on the DEIR. Five days later, on May 21, 2007, the board’s Land Use and Economic Development Committee, over the church’s objections, recommended the adoption of
On August 10, 2007, after the board had approved the resolution initiating the landmark process, the church and Pacific Polk filed a petition for a writ of mandate seeking to halt the process. The petition names as resрondents the city, the board, and the city’s departments of planning and building inspection, and requests a writ directing the respondents to “reverse the Resolution, refrain from enforcing the Resolution or in any way subjecting the property to the San Francisco landmark designation process.”
4
After denying the city’s motion for judgment on the pleadings based on the ground that the matter was not ripe for adjudication because the designation of property as a local landmark is a legislative act which the city had not yet completed, the court ordered the production of the administrative record and, following a hearing, issuеd a statement of decision and judgment in July 2008. The judgment grants a writ of mandate “commanding [the city] to set aside any decisions, void any resolution, and discontinue any process in the administrative
Discussion
The linchpin of the city’s appeal is its contention that the church building is not “noncommercial property” within the meaning of sections 25373 and 37361 because it is no longer used for a religious purpose but rather for the “profit-making purpose” of sale and development of condominiums. The city emphasizes that thе building has not been used for religious services since 2002 and has been vacant since 2005, and that the church acknowledges that the property no longer has a use within its mission except as a source of revenue generated by its sale. Relying largely on a single phrase within a footnote in East Bay, the city contends that the statutory exemption applies only if the property is currently being used for a religious purpose. 5 However, the opinion in East Bay, as well as the text of the statute and its legislative history, clearly refute this notion and support the trial court’s observation that the “whole point” of the exemption “is to allow religious institutions to sell their dilapidatеd churches for a profit.” As the trial court also pointed out, “the only reason the property is vacant is because it is too unsafe to be used as a church—or for any other purpose. [T]he only reason the property stopped being a working church was because the property was too unsafe to be used for any purpose, commercial or noncommercial. ... A non-functional church structure, owned by a nonprofit, does not become commercial by virtue of its inactivity.”
The
East Bay
opinion makes unmistakably clear that the statute permits a religiously affiliated nonprofit property owner “to exempt its property from a landmark preservation law if the owner determines in a public forum that application of the law will cause substantial hardship that is
Both the Legislature and the Supreme Court were speaking of, and including within the definition of noncommercial property to which the exemption applies, property that is no longer used or capable of being used for a religious purpose but which may be sold and demolished for a prоfit. This understanding is made clear by the legislative history to which both the majority and dissenting opinions in
East Bay
refer. The exemption was inserted in the landmark statute to permit the Archdiocese of San Francisco, “facing millions of dollars in seismic retrofitting costs as well as declining attendance in some parish churches,” to close and demolish potentially nine of those parish churches.
(East Bay, supra,
The dissenting justices in
East Bay,
who disagreed over the constitutionality of the exemption for property owned by religiously affiliated entities, did not disagree about the scope of the statutes. Their opinions leave no doubt that the exemption provisions apply tо property no longer (if ever) used by a religiously affiliated owner for a religious purpose and currently being held for sale and demolition. According to the dissenting opinion of Justice Mosk, “Under the broad provisions of the statute, a church or other religious
Thus, the city’s principal contention that the statutory exemption is inapplicable because the property is not currently being used as a church or for any оther religious purpose quite clearly must be rejected. The trial court found and the record contains no basis to question that the church is a religiously affiliated entity that is not organized for private profit, that the church has objected to application of the city’s landmark ordinance to the property, which it owns, and that by its explicit objections at public meetings the church has determined in a public forum that it will suffer substantial hardship likely to deprive it of economic return on its property if the ordinance is applied to the property. Therefore, sections 25373, subdivision (d) and 37361, subdivision (c) remove from the city the аuthorization to apply its landmark ordinance to thé church property.
In its reply brief, the city amplifies its contention with an assertion that discloses the fundamental error in its position. “The language of sections 25373 and 37361,” the city asserts, “indicate[s] that the legislature only intended to allow religious associations to exempt their noncommercial property from restrictions applicable to landmarked properties, not from a governmental process that identifies and designates landmarks.” However, as the Supreme Court held in
East Bay,
the exemption provisions “prohibit application of any local landmark preservation law to property owned by a religious entity that satisfies the statutory criteria through which the owner may exemрt its noncommercial property.”
(East Bay, supra,
If an agency is proceeding in a matter beyond its jurisdiction, judicial intervention may be obtained even though the agency has not yet reached a final decision and the affected party therefore has not yet exhausted its administrative remedies.
(Coachella Valley Mosquito & Vector Control Dist. v. California Public Employment Relations Bd.
(2005)
The latter two of these three factors unquestionably militate in favor of immediate review in this case. The preceding discussion establishes that the church’s contention that the city lacks jurisdiction to subject its property to the local landmarking ordinance is not only strong, but necessarily correct. All agencies of state government, including counties and charter cities, are of course bound by the general laws of the state. (Cal. Const., art. XI, §§ 1, 5, subd. (a); see, e.g.,
San Francisco v. Canavan
(1872)
On balance, the record fails to establish that the initiation of the landmarking process has thus far caused delay in the completion of the permit process for the project, and future delay is at most speculative. However, since continuing with the landmarking process cannot possibly lead to valid restrictions on the church’s ability to demolish the property, the absence of demonstrable hardship to the church is offset by the absence of any potential
The city’s position is no stronger when its argument is viewed in terms of ripeness. The city relies heavily upon
Pacific Legal Foundation
v.
California Coastal Com., supra,
Finally, we need not be concerned with the city’s last argument, that Pacific Polk has no standing to litigate the application of sections 25373 and 37361 to the church property which it does not yet own. Pacific Polk argues that it is nonetheless interested in the matter by virtue of its agreement with the church to purchase the subject property. We see no need to determine whether this financial interest is sufficient to confer standing in this particular litigation, since there is no question about the standing of the church and the outcome of the litigation will be no different whether or not Pacific Polk is
Disposition
The judgment is affirmed.
McGuiness, P. J., and Siggins, J., concurred:
Notes
All statutory references are to the Government Code unless otherwise indicated.
Section 37361, subdivision (b) provides that the legislative body of a city “may provide for places, buildings, structures, works of art, and other objects, having a special character or special historical or aesthetic interest or value, special conditions or regulations for their protection, enhancement, perpetuation or use ... .” San Francisco, of course, is both a city and a county.
Article 10 provides that upon designation as a landmark the property shall be “subject to the controls and standards set forth in this Article 10.” (S.F. Planning Code, § 1004, subd. (c).) Any permit to alter or demolish a property designated as a landmark must first be reviewed for conformity with the requirements of article 10 (§ 1004, subd. (c)) and no landmark property may be altered or demolished without obtaining a “Certificate of Appropriateness” in the manner specified in the article (id.., §§ 1005, subd. (e), 1006). “For applications [for a Certificate of Appropriateness] pertaining to landmark sites, the proposed work shall preserve, enhance or restore, and shall not damage or destroy, the exterior architectural features of the landmark . . . .” (Id., § 1006.7, subd. (b).)
The petition also requested that respondents be directed to issue a demolition permit. The trial court granted the city’s motion for judgment on the pleadings as to this portion of the petition on the ground that this request was premature because the city had not yet certified the environmental impact report for the project. No cross-appeal has been taken from the refusal to grant this additional relief.
In disagreeing with the interpretation that the majority in
East Bay
attributes to the dissent, that “noncommercial” rеfers to all forms of real property that are not zoned commercial, the majority states in footnote 6 of its opinion, “In context, it seems clear, however, that [by ‘noncommercial’] the Legislature had in mind property whose use is related to the religious entity’s fulfillment of the owner’s religious mission but is not used for profitmaking purposes. It is true that this could include rental property as some religious entities provide housing for teachers, nurses, students, and other personnel of their affiliated noncommercial operations. It is true also that noncommercial property could include a warehouse—one used tо store food or clothing for charitable distribution. It might include a gymnasium, school, hospital, senior citizens home, or agricultural property used to provide rehabilitative employment and food
used for religious and charitable purposes.
The descriptive term used by the Legislature is appropriate to all of these uses.”
(East Bay, supra,
While quasi-legislative acts may not be reviewed by way of administrative mandamus under Code of Civil Procedure section 1094.5, they may be reviewed by traditional mandamus under Code of Civil Procedure section 1085, as well as by an action for declaratory relief.
(Pacific Legal Foundation
v.
California Coastal Com.
(1982)
We deem the record to include many of the documents included in the city’s requests for judicial notice and the remainder of the documents to be unnecessary to resolve the issues raised by the appeal. We therefore deny the city’s request and the respondents’ counterrequest.
