City of Morgan Hill v. Garcia CA6

I. FACTS AND PROCEDURAL BACKGROUND

A. The Property The property is a narrow, curved parcel of approximately four acres of undeveloped land in a residential neighborhood near downtown Morgan Hill. In 1976, Garcia, an experienced developer and home builder, acquired the property and adjacent land (referred to as “Spring Hill”) with the intention of developing it for housing. Garcia learned prior to completing the purchase

2 All further unspecified references are to the Code of Civil Procedure.

2 that the property was the location of a planned road extension of Santa Teresa Boulevard and Hale Avenue (the road extension), which had been identified as a planned arterial in the City’s general plan since 1969. The city manager at the time informed Garcia that the property should be held for later purchase by the City. Based on this information, Garcia did not expect to build homes on the property portion of the land acquired. In 1979, after Garcia had subdivided and developed the land to the north and south of the property, the City approved the 30-lot subdivision map for “Spring Hill Estates 3.” Spring Hill Estates 3 included 28 lots for single family homes, reserved one lot (Lot 30)…