Teachers Management & Investment Corp. v. City of Santa Cruz

Teachers Management & Investment Corporation and Lighthouse Point, Ltd. (hereinafter collectively “plaintiffs” or “TMI”) appeal from a judgment dismissing their complaint against the City of Santa Cruz. The complaint sought declaratoiy and injunctive relief on the theory that an initiative ordinance of the city was void. The judgment of dismissal was rendered after the court sustained without leave to amend, a general demurrer by the city.

It was alleged in the complaint that in 1967, the City Council of the City of Santa Cruz and the Board of Supervisors of Santa Cruz County established a joint convention study committee to determine whether a convention center project would be feasible for the area and, if so, to select the most appropriate site. The committee subsequently submitted a report supporting the project and recommending that the convention center facilities be located at Lighthouse Point (also known as Lighthouse Field) in the City of Santa Cruz.

Acting on the report, the city and the county entered into an agreement for the formation of the Santa Cruz City-County Community and Convention Center Authority, sometimes referred to as the “Joint Powers…