San Jose Parking, Inc. v. Superior Court

In its petition for a writ of mandate, San Jose Parking, Inc. (SJP) asks us to direct the trial court to vacate its order finding that Redevelopment Agency of San Jose (Agency) has the right to condemn SJP’s interest in the Fountain Alley parking lot. Because we conclude that SJP does not have a real property interest in the Fountain Alley parking lot, we will grant the request for writ relief.

FACTS AND PROCEDURAL BACKGROUND

Agency owns real property in downtown San Jose, commonly known as the Fountain Alley parking lot.

In 1997, SJP and Agency entered into an agreement relating to Fountain Alley. The agreement was titled the “Exclusive Negotiations and Operating Agreement” (Agreement).

Under the first part of the Agreement, SJP was granted an exclusive right to negotiate a disposition and development agreement for Fountain Alley for a 10-year period, unless terminated earlier as provided under the Agreement. In exchange, SJP was required to pay $25,000 per month for the first five years. Paragraph 1.1 of the Agreement states, in pertinent part: “It is expressly understood and agreed by the parties that this is a contract regarding development negotiations only and…