BMC Promise Way, LLC v. County of San Benito

Filed 11/1/21; Certified for Publication 12/1/21 (order attached)

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SIXTH APPELLATE DISTRICT

BMC PROMISE WAY, LLC, H046707

(San Benito County Plaintiff and Appellant, Super. Ct. No. CU1500056)

v.

COUNTY OF SAN BENITO et al.,

Defendants and Respondents.

A tax sharing agreement between the County of San Benito and the City of Hollister requires the city to pay the county a fixed fee (referred to as the “Additional Amount”) per residential unit constructed on land annexed into the city from the county during the period covered by that agreement. Plaintiff’s predecessor in interest entered into an annexation agreement with the city under which it agreed to comply with “all applicable provisions” of that tax sharing agreement in return for the city’s agreement to annex certain land. When plaintiff purchased the annexed land and sought to develop it into two subdivision projects, the city informed plaintiff that it was liable for the Additional Amount fees. Plaintiff paid the fees under protest and then sued both the city and the county seeking a…