Opinion
Thе County of Alameda (or County) petitions for issuance of a writ of mandate to compel respondent, the Superior Court of Alameda County, to grant the County’s motion for summary judgment in an inverse condemnation action brought by real party in interest, San Leandro Rock Company, Inc. (San Leandro Rock). The County contends that the action is not ripe because San Leandro Rock has not submitted a single development proposal to the County for San Leandro Rock’s property since the passage of *562 Measure D, the land use rеgulation at issue here. Respondent denied the County’s motion, holding that San Leandro Rock had proffered sufficient facts to support the conclusion that any development proposal would be futile in light of the restrictions imposed on development of the property. We conclude that respondent erred and accordingly order the issuance of a peremptory writ of mandate.
Factual and Procedural Background
The central facts of this case are largely undisputed.
I. Development History of the San Leandro Rock Property
San Leandro Rock owns two parcels of land in Alameda County, which are designated Assessor Parcel Nos. 79-100-1 and 79-100-2 (hereafter the Proрerty). The Property is commonly referred to as Chabot Terrace and encompasses approximately 58 acres of land located adjacent to Lake Chabot Road. San Leandro Rock conducted profitable quarry operations on the Property for almost a century. In 1979, Alameda County approved a surface mining permit allowing San Leandro Rock to mine the Property until 1986. The terms of the permit indicated that it would not be renewed, and it appears that the County intended that quarry operations would cease upon expiration of the permit. Robert E. Lee, San Leandro Rock’s secretary-treasurer and co-owner, averred in a declaration filed in the superior court that in the late 1970’s he was told by county officials that the Property would be suitable for development as a multiple unit residential subdivision. But the 1979 permit itself states that “[a]pproval of this permit does not commit the site to residential development in the future.”
San Leandro Rock ceased quarry operations in 1986 when the 1979 permit expired. It is undisputed that from 1986 through November 2000, the Property was zoned for agricultural uses. 1 In the 1990’s San Leandro Rock worked with a number of developers to explore possible residential development of the Property. No such development was ever completed. 2 In 1993, San Leandro Rock proposed developing a golf driving range on the Property, and in 1994, the Alameda County Planning Commission and the Board of Supervisors issued a conditional use permit allowing the construction and operation of a golf driving range. San Leandro Rock’s golf driving range *563 development was permitted as an “outdoor recreation facility” under the then-аpplicable agricultural zoning.
II. Measure D
In November 2000, Alameda County voters approved Measure D, an initiative that made numerous changes to the Alameda County General Plan to preserve more land for agriculture and open space and “curb[] the juggernaut of urban sprawl.” (Alameda County Ballot Pamp., Gen. Elec. (Nov. 7, 2000) Measure D, § 1.) Measure D changed the designation of the San Leandro Rock Property from an agricultural to a “resource management” area. (Measure D, § 13.) The “resource management” designation permits a numbеr of the same uses allowed under the prior agricultural use zoning and allows agricultural uses, recreational uses, habitat protection, watershed management, public and quasi-public uses, certain quarries, low intensity agriculture, grazing, and very low density residential development. (Measure D, § 8.) Measure D provides that local authorities may not exercise discretion to vary the permitted uses; any changes must be approved by the voters. (Measure D, §§ 4, 23.) However, the measure does contain the following “Protection of Legal Rights” provision: “Notwithstanding their literal terms, the provisions of this ordinance do not apply to the extent, but only to the extent, that courts determine that if they were applied they would deprive any person of constitutional or statutory rights or privileges, or otherwise would be inconsistent with the United States or State constitutions or law. The purpose of this provision is to make certain that this ordinance does not violate any person’s constitutional or legal rights. [1] To the extent that a provision or provisions of this ordinance do not apply because оf this section, then only the minimum development required by law which is most consistent with the provisions and purposes of this ordinance shall be permitted.” (Measure D, § 3.)
III. San Leandro Rock’s Inverse Condemnation Action
Since Measure D was passed, San Leandro Rock has not submitted any development proposals to the County for the Property. In November 2002, San Leandro Rock filed a complaint in inverse condemnation alleging that Measure D, as applied to the Property, constituted a taking under the federal and California Constitutions. On December 3, 2004, Alameda County filed a motion for summary judgment arguing that San Leandro Rock’s inverse condemnation claim was not ripe because San Leandro Rock had never submitted a development proposal to the County. San Leandro Rock countered that it need not submit a development proposal because Measure D deprived it of
all
economically viable uses of its property and that Measure D had deprived San Leandro Rock of its reasonable investment-backed expectation of residential development on its property. Relying exclusively on thе
*564
U.S. Supreme Court’s opinion in
Palazzolo v. Rhode Island
(2001)
Respondent denied the motion for summary judgment and stated that “the basis for the tentative ruling is, in effect, the futility exception to the general rule” of ripeness. In its written order, respondent stated that Alameda County had not disproved San Leandro Rock’s allegations that none of the permitted uses of the Property were economically viable; that no land use agency had discretion to permit any economically viable uses; and that all permissible uses of the Property were known to a reasonable degree of certainty.
Respondent distinguished this division’s recent opinion in
Shea Homes Limited Partnership
v.
County of Alameda
(2003)
IV. Proceedings in This Court
Alameda County filed its petition for writ of mandate in this court on March 22, 2005. On April 7, 2005, we ordered San Leandro Rock to submit
*565
opposition to the petition and permitted the County to file a reply. After a detailed review of the record, we issued an alternative writ of mandate on May 26, 2005, commanding respondent superior court either to set aside and vacate its March 3, 2005 order or to show cause before this court why a peremptory writ of mandate should not issue. Citing
Shea Homes
and our earlier decision in
Milagra Ridge Partners, Ltd. v. City of Pacifica
(1998)
On June 16, 2005, the superior court responded to our alternative writ of mandate. Respondent reasoned that San Leandro Rock’s case could be distinguished from our opinion in Shea Homes for two reasons. First, respondent concluded that Lee’s declaration provided factual support for San Leandro Rock’s assertion that “Measure D has precluded any viable economic use of [San Leandro Rock’s] property.” In respondent’s view, it was undisputed on the record that the only economically viable use of the Property was as a residential subdivision. 4
Second, respondent concluded that San Leandro Rock had “made a compelling argument . . . based upon its reading of Measure D that the normal application process cannot result in any variance or exemption from the strict limitations of Measure D.” The superior court noted that section 19(c) of Measure D precludes the approval of any “variance or any other discretionary administrative or quasi-administrative action which is inconsistent with this ordinance” and that section 23 provides that Measure D may be changed only by a vote оf the people of Alameda County. As a consequence, respondent concluded that there was no administrative process which could result in a permit for an economically viable use of the Property. In respondent’s view,
Shea Homes
is not controlling because, although we had considered Measure D, we did not discuss the restrictions of sections 19 and 23 of the ordinance. (But see
Shea Homes, supra,
Discussion
The question presented by the County’s petition for a writ of mandate is whether San Leandro Rock can proceed with its regulatory taking action before the County has the opportunity to decide and explain the reach of Measure D. San Leandro Rock argued that any application to develop the Property would be futile because Measure D forbids the County from exercising any discretion to vary the uses permitted by the ordinance. Resolution of the question turns on whether the facts of this case permit San Leandro Rock to invoke the futility exception to the ripeness doctrine.
The superior court’s denial of a motion for summary judgment is subject to independent review.
(Buss v. Superior Court
(1997)
I. Ripeness and Finality in Taking Cases
San Leandro Rock’s action alleges that application of Measure D to the Property effects a regulatory taking. (See
Hensler
v.
City of Glendale
(1994)
Thus, under both federal and California law, before a plaintiff may establish a regulatory taking, it must first demonstrate that it has received a final decision from the land use authority regarding application of the challenged land use regulation to its property. (E.g.,
MacDonald, supra, All
U.S. at p. 348 [“essential prerequisite” tо regulatory taking claim is “final and authoritative determination of the type and intensity of development legally permitted on the subject property”];
Milagra Ridge, supra,
62 Cal.App.4th at pp. 116-117.) The difficulty inherent in determining whether a regulatory taking has occurred makes courts reluctant to examine such claims until the administrative agency has arrived at a final, definitive decision regarding how it will apply the regulation to the property in question.
(Toigo
v.
Town of Ross
(1998)
The property owner “bears a heavy burden of showing that a regulation as applied to a particular parcel is ripe for a taking claim.”
(Milagra Ridge, supra,
The County argues correctly that controlling case law from this district holds that before an inverse condemnation action is ripe, a landowner must have made at least one development proposal that has been thoroughly rеjected by land use authorities and have prosecuted at least one meaningful
*568
application for a zoning variance, which has been finally denied. This statement of the applicable rule is grounded in United States and California Supreme Court authority, as well as in case law from this district and others. (See, e.g.,
MacDonald, supra, 477
U.S. at p. 349, citing
Williamson Planning Comm’n v. Hamilton Bank
(1985)
II. The Futility Exception
Both federal and California law provide a futility exception to the ripeness doctrine. San Leandro Rock contends that its taking claim is ripe because Measure D itself makes clear precisely what uses of the Property are permissible, and the ordinance leaves the County with no discretion to permit any other uses. As a result, San Leаndro Rock argues, submission of a development plan to the County would be futile, because none of the permitted uses is economically viable. Respondent accepted San Leandro Rock’s argument. The correctness of the superior court’s denial of the County’s motion for summary judgment thus turns on the applicability of the “futility exception” to the facts of this case.
The futility exception is “extremely narrow.”
(Toigo, supra,
San Leandro Rock argued successfully in its opposition to the County’s motion for summary judgment that its taking claims are ripe for adjudication even in the absence of a previously rejected development proposal because “no land use agency has discretion to permit any economically viable uses, and ... all permissible uses are known to a reasonable degree of certainty.” San Leandro Rock’s argument ignores the purpose of the finality requirement. As explained earlier, in
Williamson
the court established as a ripeness requirement for taking claims that “the government entity charged with implementing the regulations [must have] reached a final decision regarding the application of the regulations to the property at issue.”
(Williamson, supra,
Here, the County has not had the opportunity to explain the reach of the challenged regulation, and we are not persuaded that all permissible uses of the Property are in fact known. Although Measure D restricts the permissible uses of the Property, it allows certain general categories of uses, such as recreational and agricultural uses, as well as others. The County has not had the opportunity to define concretely what sort of uses are permissible for this Property under these categories, and the “exercise of this interpretive latitude is assigned in the first instance” to the implementing agency, not the courts.
(Tahoe-Sierra Preservation Council v. State Water Resources Control Bd.
(1989)
*570
Even though a land use regulation is restrictive, this alone does not render resort to administrative procedures futile. (See, e.g.,
Calprop, supra,
77 Cal.App.4th at pp. 598-599 [fact that city had committed to preserve designated area largely as open space did not make application to implementing agency futile].) “[I]f permissible uses exist, a development restriction does not deny a property holder the economically viable use of his property.”
(Shea Homes, supra,
III. This Case is Controlled by Our Opinions in Milagra Ridge and Shea Homes
The attempts of respondent and San Leandro Rock to distinguish this case from this division’s controlling precedents are unavailing. Both respondent and San Leandro Rock place great reliance on Lee’s declaration that none of the permissible uses of the Property is economically viable. But in
Milagra Ridge
we determined that the declaration of a land use valuation expert does not establish futility simply by opining that there is no economically feasible use of the property under the applicable zoning regulations.
(Milagra Ridge, supra,
Nor can respondent’s ruling on the futility issue be squared with our opinion in
Shea Homes.
In that case, a landowner challenged Measure D’s restrictions on its property, contending that the ordinance’s “ ‘ill-defined “open space preserve” designation’ ” for the property restricted permissible
*571
uses to certain forms of agriculture, which, because of the property’s physical characteristics, were not economically viable uses.
(Shea Homes, supra,
The superior court correctly noted in its response to our alternative writ of mandate that
Shea Homes
arose in a different procedural posture from the present case. While this is true, it does not make
Shea Homes
any less binding here. In that сase, we held that the superior court had not abused its discretion in denying a property owner’s request for leave to amend its complaint to include an as-applied challenge to Measure D.
(Shea Homes, supra,
Our earlier opinions in Milagra Ridge and Shea Homes compel the conclusion that San Leandro Rock’s taking claim is not yet ripe. Those cases also demonstrate that San Leandro Rock cannot show that resort to administrative procedures would be futile. As a consequence, the order denying the County’s motion for summary judgment must be reversed.
*572 Disposition
The alternative writ, having served its purpose, is discharged. The petition for writ of mandate is granted. Let a peremptory writ of mandate issue compelling respondent superior court to vacate its March 3, 2005 order denying petitioner’s motion for summary judgment and to enter a new and different order granting the motion. Petitioner shall recover its costs.
Jones, P. J., and Stevens, J., concurred.
The petition of real party in interest for review by the Supreme Court was denied January 4, 2006, S139206.
Notes
This designation permitted a number of uses, such as a farm, truck garden, nursery, winery, or fish hatchery. It also permitted the raising of livestock or the grazing, breeding, or training of horses and cattle.
It is unclear how the Property could legally have been developed as a residential subdivision given that it was zoned only for agricultural uses, and the pаrties’ briefs do not clarify this point.
The bases for San Leandro Rock’s claim that there was no economically viable use of the Property were certain statements in Lee’s declaration. Lee averred that Measure D permitted the building of only two homes on the Property and that this was not an economically viable use. He also averred that the nature of the Property and the lack of readily available County sewer service combined to preclude “the clearly defined permissible uses under Measure D or [to] cause[] permissible uses under Measure D to be cost prohibitive.” The County objected to the portions of Lee’s declaration that addressed what uses were permissible under Measure D. Insofar as we can discern from the objections and evidentiary rulings, respondent sustained the County’s objections to the extent that Lee’s statements concerning the scope of Measure D were legal conclusions. Thus, Lee’s statements cannot be used to support San Leandro Rock’s arguments regarding the extent of the legal restrictions that Measure D places upon the Property.
(Guz
v.
Bechtel National, Inc.
(2000)
Respondent cites the County’s statement of undisputed material facts as support for its conclusion that “during the 1990’s [San Leandro Rock] worked with residential developers to develop residential uses for the property, which were then permissible for the quarry property.” We note that the portion of the statement concerning permissible uses for the Proрerty is plainly unsupported by the record. The relevant paragraph of the County’s statement of undisputed material facts says nothing at all about whether residential uses would have been permissible under the zoning regulations then applicable to the Property.
In taking cases, “California courts are guided by decisions of the United States Supreme Court.”
(Milagra Ridge, supra,
This case is not analogous to cases such as
Lucas v. South Carolina Coastal Council
(1992)
