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SEN' BY: 5- 1- 0 ; 4:32PM ; BEST BEST & HRIEGER-4 9493745154;# 3/ 6 <br />California City:Attorneys <br />Page 2 <br />April 18, 2000. <br />The history of the adoption of the ordinance is notable in reflecting that Napa did not <br />"force" the ordinatce on the development community, but rather created a truly local, Consensus <br />solution unanimously supported by all local stakeholders, including developers and builders. <br />When the fust version of the ordinance was presented to the City Council at a public hearing in <br />early 1999, extensive public comment from the building, development and realtor communities <br />concerning perceived burdens and problems with the draft ordinance's initial requirements <br />prompted the Council to direct staff to undertake additional consensus building, and to ,make <br />substantial revisions to the draft ordinance, in order to address the concerns of, and compromise <br />with, all stakeholders, including the Chamber of Commerce, affordable housing advocates, non- <br />profits, the Napa-Solano Builders Exchange, the Napa Construction Coalition, the Napa Valley <br />Economic Development Corporation, the North Bay Association of Realtors and the Napa <br />Chapter of the Association of Realtors. These revisio subsequently were approved by the City <br />Council, and the! ordinance, which was supported by findings articulating the relationship <br />between the dovelppment of market rate housing and the aggravation of the affordable housing <br />crises, was adopted in July, 1999. <br />Shortly af%r the ordinance became effective, t <br />by the Pacific ]Leg4l Foundation (PLF), filed a lawsuit <br />lawsuit contained six causes of action claiming as fo: <br />on an ordinance -specific study showing a nexus betwe <br />and the need for affordable housing, and thus on its fat <br />scrutiny" analysis°assertedly imposed under the NQW <br />of the California: Supreme Court's Ehrlia decision <br />imposed there; (4) the ordinance violated due pro( <br />between the development of market rate housing and <br />and by denying developers of market rate housing a I <br />development fee Wop#ed in violation of the Mitiga <br />66000, et seq.; (4) the ordinance imposed a tax in viol, <br />imposed a tax in Violation of Proposition 62; and (6) <br />Proposition 218.: The City demurred, arguing that <br />settled law, prture, or both. The Superior Court <br />sustained its the City's demurrer as to all causes of a� <br />Builders then appgaled the case to the First District Col <br />This case ,obviously involves several issues <br />First, although there are published decisions validati <br />development, this; is the first challenge of which Nab <br />ordinance requiring developers of residential, market <br />or in -lieu payments. Insofar as some 75 cities and cc <br />requirements, the outcome of this case will directly irr <br />1e Associated Home Builders, represented <br />challenging the ordinance on its face. The <br />lows: (1) the ordinance was not premised <br />m the development of market rate housing <br />e constituted a taking under a "heightened <br />n/DRIan line of cases, and under that part <br />concerning the ad ho recreational fee <br />ess by lacking any demonstrated nexus <br />the creation of affordable housing needs, <br />air return"; (3) the ordinance constituted a <br />ion Fee Act, Government Code Section <br />ation of Proposition 13; (5) the ordinance <br />►e ordinance imposed a tax in violation of <br />lege arguments were either at odds with <br />ped with the City's arguments, and thus <br />tion without leave to amend. The Home <br />art of Appeal. <br />critical importance to cities statewide. <br />affordable housing fees on commercial <br />is aware to any residential inclusionary <br />to housing to provide inclusionary units <br />►ties statewide have similar inclusionary <br />ct the validity of such ordinances. <br />