Building Industry Ass'n of the Bay Area v. City of San Ramon

A developer sought approval from the City of San Ramon (City) to build 48 town houses on two parcels of land. Because an analysis showed that the cost to the City of providing services to the new development would exceed the revenue generated by the project, the City conditioned its approval on the developer providing a funding mechanism to cover the difference. Using California’s Mello-Roos Community Facilities Act of 1982 (Mello-Roos Act; Gov. Code, § 53311 et seq.), the developer petitioned the City to create a “community facilities district” and then, as landowner, voted to approve a tax within the district consistent with the statute to raise the necessary revenue. Plaintiff Building Industry Association of the Bay Area (the Association) filed suit against the City in superior court challenging the validity of the tax. After the parties filed cross-motions for summary judgment, the trial court upheld the tax. It is from this judgment that the Association now appeals on multiple grounds: the tax does not provide for “additional services” as required by statute; the tax is an unconstitutional general tax; and the City ordinance authorizing the tax is unconstitutional…