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Page 2 <br />including that the ordinance constituted a taking, it violated due process, it constituted a <br />development fee in violation of the Mitigation Fee Act, and it violated Propositions 13, <br />62 and 218. The City demurred, arguing that the Plaintiff's arguments were either at <br />odds with settled law, premature, or both. The Superior Court agreed with the City's <br />arguments and sustained its demurrer on all causes of action without leave to amend. <br />The Plaintiff then appealed the case to the First District Court of Appeal. <br />DISCUSSION/ANALYSIS: <br />This case involves issues of critical importance to cities statewide. There are 75 cities <br />and counties in California that have inclusionary requirements similar to the City of <br />Napa's ordinance. The outcome of this case will directly impact the validity of such <br />ordinances. Even cities without inclusionary ordinances will be affected by the outcome <br />of this case. The Plaintiff's argument that Napa's ordinance constituted a taking under a <br />"heightened scrutiny" analysis could jeopardize not only inclusionary ordinances, but <br />land use and other police power ordinances as well. If the Plaintiff is successful in the <br />appeal, the ability of cities to exercise basic police power regulatory authority will be <br />severely diminished. <br />The Plaintiffs other arguments are of similar concern to cities. For instance, the <br />assertion that the ordinance's optional in -lieu fee, which is not mandatory, may be <br />challenged as a tax under Propositions 13, 62 and 218, threatens to undermine cities' <br />ability to impose mitigation fees to offset impacts created by new development. <br />ALTERNATIVES: <br />1. Direct the City Attorney to advise the City of Napa to list the City of Colton as a <br />supporter of the amicus curiae brief. <br />2. Take no action. <br />FINANCIAL IMPACT: <br />Z <br />ENVIRONMENTAL IMPACT: <br />None. <br />RECOMMENDATION: <br />Staff recommends that the City Council join in the amicus curiae brief. <br />Report Prepared By: Sonia R. Carvalho, City Attorney <br />RVPUMNGS1560935 <br />