North Murrieta Community, LLC v. City of Murrieta
Annotate this CaseAppellant, North Murrieta Community, LLC (North Murrieta), was the master developer of a large development project in the City of Murrieta (the City) called the Golden City Project. North Murrieta sought to take advantage of certain statutory land use planning tools that enabled builders to lock in place regulations, conditions, and fees municipalities could enforce against them while a project proceeds. In July 1999, North Murrieta obtained approval for a vesting tentative map on part of the Golden City Project property. In March 2001, four months before the map would expire, North Murrieta and the City entered a development agreement covering the entire Golden City Project property. The agreement extended the term of the vesting tentative map for 15 years and also locked in place regulations and fees the City could enforce against the developer on the entire project for the same period. The development agreement explicitly allowed the City to impose new fees on North Murrieta to mitigate the effects of development, provided the new fees were generally applicable and designed to address effects not fully mitigated by fees or exactions in place when the parties entered the development agreement. The City subsequently passed the Western Riverside County Transportation Uniform Mitigation Fee Program Ordinance (the TUMF ordinance), which was designed for just that purpose. In 2017, the City charged the new mitigation fees to a subsequent purchaser and developer of a subset of the affected properties. The builder made $541,497 in TUMF payments from July to October 2017, and the City transferred the bulk of those funds to respondent, Western Riverside Council of Governments (WRCOG). Both the developer and North Murrieta protested the fees. North Murrieta asked the trial court to order return of the TUMF payments and requested declarations that the City couldn’t impose the new mitigation fees under the extended vesting tentative map until it expired in 2019 and can’t impose those fees under the development agreement until it expires in 2021. The trial court held the development agreement established the parties’ rights and permitted the City to impose the new fees under the TUMF ordinance. North Murrieta appealed. The Court of Appeal affirmed, agreeing with the trial court. Though the vesting tentative map limited the fees the City could collect to those in place when the City approved the map, North Murrieta agreed to modify those rights by entering the development agreement with the City. The development agreement was a contract, which the trial court correctly enforced.
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