Mills

In this case, we consider whether Mills Land & Water Company (Mills) pleaded sufficient facts that the City of Huntington Beach (the City) so unreasonably delayed Mills from developing its property that the result has been a temporary taking. We conclude it has. We reverse the judgment dismissing Mills' complaint after the City's demurrer was sustained without leave to amend.

This action concerns approximately 51 undeveloped acres located in the City. The land was purchased by Mills almost a century ago. It is located on the inland side of Pacific Coast Highway across from Huntington Beach State Park. Because the property is located in a coastal zone (Pub. Resources Code, § 30103), [1] it is subject to development restrictions imposed by the California Coastal Act of 1976 (§ 30000 et seq., the Act).

In 1965, the State of California acquired from Mills an approximately 28acre piece of the 51 acres for freeway use (the Caltrans parcel). After abandonment of its coastal freeway plan, the state granted Mills an option to reacquire the Caltrans parcel. As a result, Mills now owns 23 acres outright (the Mills parcel) and holds an option interest in the 28-acre…