San Diegans for Open Government v. City of Oceanside
Annotate this CaseThe "Agreement Regarding Real Property (TOT)" (TOT Agreement) was an agreement between the City of Oceanside and S.D. Malkin Properties, Inc. For its part, Malkin agreed to develop, in two phases, a 360 room luxury hotel on land owned by the successor to the city's former redevelopment agency; the city agreed to pay Malkin a total subsidy of $11,335,250,5 from transient occupancy taxes (TOT) generated by the hotel. Under the TOT Agreement, the hotel would be developed in two phases, and, for the first four years after each phase was complete, 100 percent of TOT's generated by each phase would be paid to Malkin. Thereafter smaller percentages of TOT's generated by the hotel would be paid to Malkin. The city council put the TOT Agreement, and items closely related to the hotel development, on its agenda for its September 10, 2014 meeting. According to plaintiff and appellant San Diegans for Open Government (SDOG), there was no serious opposition to the hotel project at the city council meeting. At the meeting, the city council adopted a resolution approving the TOT Agreement and the subsidy report. SDOG filed an amended complaint for declaratory and injunctive relief and a petition for writ of mandate against the city in 2015, alleging violations of the Brown Act, the subsidy reporting provisions of Gov. Code section 53803, and the California Constitution. The trial court heard the matter on the merits on October 23, 2015 and found in the city's favor. Thereafter, it entered judgment in favor of the city, and SDOG filed a timely notice of appeal. On appeal, SDOG again asserted the city violated the Brown Act and section 53803. Finding no violation, the Court of Appeals affirmed the trial court.
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