ORDER GRANTING PLAINTIFF’S MOTION TO RECONSIDER ITS PRIOR ORDER (Docket No. 50) AND GRANTING DEFENDANT’S MOTION TO DISMISS (Docket No. 8)
I. FACTUAL SUMMARY AND PROCEDURAL HISTORY 1
A. First Amended Complaint
This suit by North Pacifica, LLC (hereinafter referred to as “North Pacifica”) arises out of alleged violations of law by the City of Pacifica 2 in its handling and processing of North Pacifica’s Development Permit Application for the construction of twenty-four (24) residential units in an area known as the “Bowl.” The Permit Application was filed on July 31, 1999.
After lengthy delays in obtaining an application completion date from the City, North Pacifica filed in the San Mateo Superior Court, a Petition for a Writ of Administrative Mandate and/or Traditional Mandate on November 9, 2001, challenging the June 5, 2001 date of completion of the application deemed by the City, 3 a date which permitted the City to avoid violation of laws governing the completion of an Environmental Impact Report. SAC ¶ 53. On December 10, 2001, North Pacifica also filed in San Mateo County, a complaint against the City claiming: [1] denial of substantive Due Process; [2] denial of Equal Protection; [3] violation of 42 U.S.C. § 1983; and [4] declaratory relief (seeking determination of an earlier completion date and of North Pacifica’s right to the City’s certification of an EIR within one year of the completion date).
On December 7, 2001, North Pacifica filed an identical complaint against the City in this Court. North Pacifica subsequently filed the First Amended Complaint on January 7, 2002, with the same claims. On February 11, 2002, the City filed a Motion to Dismiss Plaintiffs First Amended Complaint.
On July 30, 2002, this Court dismissed Plaintiffs substantive Due Process claim *1056 (the first and a portion of the third causes of action) for failure to establish a pro-tectable property interest: 2) denied Defendant’s motion to dismiss Plaintiffs Equal Protection claim (the second cause of action); and 3) dismissed Plaintiffs declaratory relief claim (the fourth cause of action) after declining to exercise supplemental jurisdiction. The City has since approved North Pacifica’s application to develop the Bowl, thus leaving as the only relief at issue damages for the City’s alleged violation of North Pacifica’s rights.
On September 5, 2002, North Pacifica filed a motion for reconsideration under Civil Local Rule 7-9, and/or for relief from inadvertence and/or neglect pursuant to Federal Rules of Civil Procedure, Rule 60(b). North Pacifica requests that this Court reconsider its Order of July 30, 2002 in which it dismissed North Pacifica’s substantive due process claim, contending that the Court erred in finding no protectable property interest.
II. ANALYSIS
A motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6) tests the sufficiency of the complaint.
North Star Int’l v. Arizona Corp. Comm’n,
A. North Pacifica’s Motion to Reconsider
On July 30, 2002, this Court held that North Pacifica could not set forth facts in support of its substantive due process claim because the Court found that neither the Pacifica Municipal Code, the California Environmental Quality Act (“CEQA”), nor the Permit Streamlining Act (“PSA”) contained mandatory criteria that substantially constrained the City’s discretion to deny the Development Permit. North Pacifica now moves for reconsideration under Civil Local Rule 7-9, and/or for relief from inadvertence and/or neglect pursuant to Federal Rules of Civil Procedure, Rule 60(b). The Local Rules allow for reconsideration when the moving party can show a “manifest failure by the Court to consider material facts or dispositive legal arguments which were presented to the Court before such interlocutory order.” Rule 7 — 9(b)(3). Moreover, a motion for reconsideration may not “repeat any oral or written argument made by the applying party in support of or in opposition to the interlocutory order which the party now seeks to have reconsidered.” Rule Y — 9(c). After a court enters an order, it may set aside or change its order pursuant to either the local rules or Rule 60.
Ground v. Sullivan,
1. Property Interest
North Pacifica’s motion for reconsideration is limited to this Court’s ruling regarding the PSA. In its previous order, this Court assumed that North Pacifica’s substantive due process relied upon establishment of a property interest under Cali *1057 fornia Government Code § 65589.5(d) of the PSA. This Court held that § 65589.5(d) did not apply because it applied only to low-income housing developments. July 30, 2002 Order, at 13-14. North Pacifica concedes that it inadvertently failed to specify that § 65589.5Q') was the particular subsection upon which it relies, and it now wishes to bring to the Court’s attention that fact that § 65589.5© applies to all development permits, not just low-income and affordable housing. North Pacifica contends § 65589.5© limits the City’s discretion in denying North Pacifica’s development application in the instant case and thus creates a protectable property interest.
As noted above, this Court’s prior ruling was based, in part, upon a determination that § 65589.5 applies to only very low, low, or moderate incoming housing projects. The title of § 65589.5 (“Housing development projects affordable to very low, low, or moderate income households; disapproval; conditions”) supports this conclusion, as do most of its subsections. This Court acknowledges that it did not consider § 65589.5©, so reconsideration is therefore warranted.
Section 65589.5© states:
When a proposed housing development project complies with applicable, objective general plan and zoning standards and criteria in effect at the time that the housing development project’s application is determined to be complete, but the local agency proposes to disapprove the project or to approve it upon the condition that the project be developed at a lower density, the local agency shall base its decision regarding the proposed housing development project upon written findings supported by substantial evidence on the record that both of the following conditions exist: (1) The housing development project would have a specific, adverse impact upon the public health or safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density. As used in this paragraph, a “specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.
(2) There is no feasible method to satisfactorily mitigate or avoid the adverse impact identified pursuant to paragraph (1), other than the disapproval of the housing development project or the approval of the project upon the condition that it be developed- at a lower density.
The Court finds that both the plain meaning and legislative history of § 65589.5© indicate that this subsection is not restricted to low income housing development projects but instead applies to all housing development projects including the one at issue here. Whereas subsection (d) refers to disapproval of a “housing project for very low, low- or moderate-income households,” subsection © on its face is not so limited. It covers any “proposed housing development project.” When the language of a statute is unambiguous, the plain meaning governs.
Lennane v. Franchise Tax Bd.,
This Court takes judicial notice of relevant legislative documents supplied by North Pacifica in order to better understand the California Legislature’s intent regarding § 65589.5.
See Post v. Prati,
The City argues that in
Chandis Securities Co. v. City of Dana Point,
Accordingly, § 65589.5(d) applies to North Pacifica’s proposed housing development. The issue then is whether § 65589.5(d) imposes a sufficient restriction on the City’s discretion to deny the application so as to create a property interest.
Wedges/Ledges of California, Inc. v. City of Phoenix, Ariz.,
As noted in this Court’s prior order, a constitutionally protected property interest will be found where that law imposes “a substantial limitation” on the government’s discretion to deny a permit.
Wedges/Ledges,
Section 65589.5(j) directs that a decision to disapprove a project that complies with general plan and zoning standards must be based on written findings supported by substantial evidence that (1) the project would have an adverse impact on the public health or safety, and (2) that there is no feasible method to satisfactorily mitigate or avoid this adverse impact. Cal. Gov’t Code § 65589.5(j). Under § 65589.5(j), the City must determine whether the proposed project complies with the general plan and zoning standards. If it does, it can be disapproved or conditioned on a lower density only if it would have a “specific, adverse impact” upon public health or safety and there is no feasible way to mitigate that impact. If the City’s disapproval or conditional approval is challenged in court, the burden is on the City to prove- its decision conformed to all the conditions specified in § 65589.5. Cal. Gov’t Code § 65589.6.
Section 65589.5(j) thus imposes mandatory conditions limiting the City’s discretion to deny the permit.
Wedges/Ledges,
Finally, the determinations that must be made by the permitting agency — whether the proposed project complies with the applicable general plan and zoning standards and whether it would impose a “specific, adverse impact” upon public health or safety, though general, are sufficiently objective under
Parks v. Watson,
2. Substantive Due Process
Since the Court finds, upon reconsidering that North Pacifica can establish a constitutionally-protected property interest, the Court must decide whether North Pacifica’s complaint states a cause of action for a substantive due process violation. Substantive due process prohibits “certain arbitrary, wrongful government actions ‘regardless of the fairness of the procedures used to implement them.’ ”
Zinermon v. Burch,
In the case at bar, North Pacifica’s application for development permit was never denied. Indeed, it has been granted. The claimed deprivation of property stems from the allegedly illegitimate delay in processing application. Both parties submitted extensive supplemental briefing on whether delay in the processing of North Pacifica’s application constitutes a significant enough injury to trigger substantive due process, as well as related issues. In particular, the parties were instructed to brief the significance of
Tahoe-Sierra Preservation Council v. Tahoe Regional Planning Agency,
North Pacific^ argues that Tahoe-Sierra is irrelevant to the case at bar because the *1061 standards for a takings claim differ from those of a substantive due process claim and that its substantive due process claim is not based upon delay. Plaintiffs Second Supplemental Brief in Opposition to Motion to Dismiss, at 1, 4-6; Plaintiffs Letter Brief of October 23, 2002, at 1-5. The City argues that the delay in this case does not violate due process and that, in any event, North Pacifica’s substantive due process claim is preempted by the Takings Clause. Defendant’s Letter Brief of October 23, 2002. The City’s latter argument raises a fundamental question that must be addressed. 4
North Pacifica cites
Sinaloa Lake Owners Ass’n v. City of Simi Valley,
In
Armendariz,
the City of San Bernar-dino, allegedly in order to evict tenants and clear an area for a shopping center, forced tenants to move out while minor building code violations were to be fixed but refused to issue permits for repairs, ultimately forcing landlords out of business.
Id.
at 1313-15. The Ninth Circuit, applying
Graham v. Connor,
Armendariz
and its progeny have applied this analysis expansively. In
Armen-dariz,
the plaintiffs did not claim that a takings had occurred, but asserted that city’s pretextual invocation of its emergency powers was arbitrary and capricious and violated substantive due process.
Likewise, in
Maori v. King County,
In
Esplanade Properties v. City of Seattle,
The question in this case is whether North Pacifica’s due process claim entails conduct addressable under a takings analysis and thus must be brought under the more explicit Takings Clause of the Fifth Amendment. The Court concludes that it is. North Pacifica’s claim of a loss of property during the period of the City’s illegitimate delay in processing its applieation is in essence a claim for a temporary taking in the course of the City’s land use regulation. Such a temporary regulatory taking may be actionable.
First English Evangelical Lutheran Church v. Los Angeles County,
Moreover, North Pacifica argues that the City’s action did not have a rational relationship to a legitimate state purpose. Plaintiffs First Supplemental Brief in Opposition to Motion to Dismiss, at 9-10.
See
Plaintiffs Second Amended Complaint at ¶ 60. While this allegation is asserted as a basis for North Pacifica’s substantive due process claim, it may also be the basis of a takings claim.
See Macri
Thus, despite North Pacifica’s attempt to cast its claim solely as a substantive due process claim, the claim must be treated as a takings claim under Armendariz and its progeny. Assuming arguendo that the City’s delay constituted a takings, 7 North Pacifica’s claim must be dismissed on grounds of ripeness.
The Supreme Court has imposed a two-prong ripeness requirement to takings claims brought in federal court against a state or local government agency.
Williamson County Regional Planning Comm’n v. Hamilton Bank
Second, takings claims must also satisfy a compensation exhaustion prong: “[I]f a State provides an adequate procedure for seeking just compensation, the property owner cannot claim a violation of the Just Compensation Clause until it has used the procedure and been denied just compensation.”
Williamson,
Assuming arguendo that North Pacifica meets the final determination prong of
Williamson,
the key issue here is whether California law provides an adequate procedure for compensation, such as an inverse condemnation claim, which must be exhausted.
Macri,
The availability of state remedies is evident here. In November 2001, one month before North Pacifica brought this action in federal court, it petitioned for writ of mandamus in San Mateo Superior Court in order to challenge the City’s determination that the completion date of North Pa-cifica’s development permit for the Bowl was June 5, 2001. North Pacifica amended this petition in February, 2002. Defendant’s Request for Judicial Notice, at Exhibit A-B (Case -No. C-419014). More importantly, North Pacifica’s separate complaint in Superior Court, which mirrors the one filed in this Court, seeks,
inter alia,
damages for the alleged violation of substantive due process.
Id.
at Exhibit C. In order to satisfy the
Williamson
ripeness -requirement in this case, North Pacifica would have had to exhaust its remedies in seeking compensation in state court
before
filing this action in federal court.
Jones Intercable,
*1066
As North Pacifica acknowledges when it relies upon
Sinaloa,
the requirement of ripeness is a key distinction between a takings claim and a substantive due process claim.
Williamson,
III. CONCLUSION
For the reasons stated above, the Court GRANTS North Pacifica’s Motion to Reconsider (Docket No. 50), but upon reconsideration it GRANTS the City’s Motion to Dismiss (Docket No. 8) because North Pa-cifica’s substantive due process claim covering the Bowl must be treated as a taking claim. That claim is not ripe. The Court DISMISSES North Pacifica’s substantive due process claims without prejudice to refiling when and if North Pacifica exhausts its California state proceedings for damages.
See Maori,
IT IS SO ORDERED.
Notes
.In reviewing the City’s Motion to Dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6), the Court must assume all factual allegations to be true and must construe them in the light most favorable to the nonmoving party.
See North Star Int’l v. Arizona Corp. Comm'n,
. The City of Pacifica, the Pacifica Planning Commission and the Pacifica City Counsel shall hereinafter collectively be referred to as the "City.”
. The facts are described in greater detail in the Court's July 30, 2002 order dismissing Plaintiff's Due Process Claim.
. North Pacifica objects to the City's Takings Clause preemption argument on the grounds that this argument was not included in the City’s original Motion to Dismiss. Plaintiff's Letter Brief of October 30, 2002. While not raised in the original motion to dismiss, the City cited Armendariz and Maori, in making substantially the same argument that North Pacifica was bringing an unripe takings claim under the guise of substantive due process in April, 2002 in response to this Court’s request for supplemental briefing. Defendant's First Supplemental Brief in Support of Motion to Dismiss, at 12-13 n. 9. Moreover, the issue was squarely raised in the briefing ordered by the Court, and North Pacifica has been given a fair opportunity to argue the issue.
. In
Graham v. Connor,
. It appears the Ninth Circuit's decision may also have been informed by its view that "the use of substantive due process to extend constitutional protection to economic and property rights has been largely discredited.” Id. at 1318-19.
. "
Cf. Landgate, Inc. v. California Coastal Comm’n, supra,
. In
Maori,
defendants removed the case to federal court, and the parties reached a settle
*1066
ment on plaintiffs state law inverse condemnation claim after the district court remanded that claim to state court.
