Trancas Property Owners Assn. v. City of Malibu

— The question in this case is this; To determine whether a development permit issued by the California Coastal Commission was “activated” before its expiration date, should we interpret “project” and “construction” to mean the same thing? Our answer is “no.”

Background

In March 1992, following more than ten years of environmental review, the California Coastal Commission granted a “Coastal Development Permit” to Lunita Pacific, L.L.C. for the construction of a condominium project in the City of Malibu. By its terms, the permit provided that “[i]f development has not commenced, the permit will expire” on a date subsequently extended to March 12, 1997. Lunita’s final subdivision map was accepted by the City of Malibu’s engineer in July 1996 and filed with the City’s clerk on August 12 (seven months before the permit’s expiration date). When the Malibu City Council nevertheless refused to approve Lunita’s final subdivision map, Lunita sued the City and won. That case was settled and on September 8, 1997 (after the permit’s expiration date), the City Council approved Lunita’s final subdivision map. On September 10, the Trancas Property Owners Association filed this…