Arcadia Development Co. v. City of Morgan Hill

I. Introduction

In 2004, voters in the City of Morgan Hill (City) passed a measure amending City’s general plan and extending to 2020 a growth control ordinance that had been set to expire in 2010. One provision of the original ordinance drastically restricted development of certain property within the city limits (the Density Restriction). The 2004 enactment did not change the effect of the Density Restriction other than to extend it for 10 years.

Arcadia Development Company (Arcadia), which owned property subject to the Density Restriction, filed a complaint and petition for writ of mandate against City and the Morgan Hill City Council, challenging the 10-year extension of the Density Restriction on equal protection and takings grounds. (U.S. Const., 14th Amend., § 1, 5th Amend.) The trial court dismissed the action, concluding that Arcadia’s causes of action had accrued in 1990, when the original measure had been enacted and, therefore, that they were barred by the 90-day statute of limitations contained in Government Code section 65009.

We conclude that under the circumstances of this case the 2004 measure extending the Density Restriction for 10 years gave rise to…