Jefferson Street Ventures v. City of Indio
Annotate this CaseJefferson Street Ventures, LLC appealed a judgment rendered in favor of the City of Indio in this combined petition for writ of administrative mandamus/inverse condemnation action. In 2007, the City conditioned approval of Jefferson’s 2005 application for development of a shopping center upon Jefferson leaving approximately one-third of its property undeveloped to accommodate the reconstruction of a major freeway interchange that was in the planning stages. The City could not acquire the property at the time Jefferson’s development application was approved due to funding constraints imposed by the "byzantine planning and review process" for the interchange that involved various local, state, and federal agencies, and which the City did not anticipate being complete for at least a few more years. When Jefferson’s development application was being approved, City staff explained the City could not allow development on the part of the site designated for the interchange because the City would incur additional costs for the property if and when it was later taken for the interchange. Jefferson sued the City contending the development restrictions were invalid because they constituted an uncompensated taking of its property. Following a hearing on the writ petition, the trial court found the development restrictions were permissible and denied the writ. On appeal, Jefferson argued: (1) the trial court erred by denying its petition for writ of administrative mandate because the City’s development restrictions constituted an uncompensated taking; and (2) regardless of the ruling on the mandamus cause of action, the trial court erred by denying it a trial on its inverse condemnation claims. The Court of Appeal concluded the restrictions constituted a de facto taking of the development restricted portion of Jefferson’s property and the trial court erred by denying Jefferson’s petition for writ of mandate.
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