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This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . Court Rules Do or Die for Dormant Hawthorne Mall A judge has ordered the owners of the long-abandoned Hawthorne Plaza Mall to either redevelop or demolish the 35-acre property by August 2026, after decades of failed plans and community frustration. Once a large shopping center, the mall has sat vacant since the late 1990s, though it has occasionally served as a backdrop for major films. While developers once pitched a large-scale mixed-use project with a proposed 600 units in 2017, those plans never came to fruition, leaving residents frustrated by decades of inaction. If the current owners fail to act by the court's deadline, officials have warned that a receiver could be appointed to seize control and determine the mall's future. City officials say the move is critical to revitalizing downtown and addressing safety concerns. New Housing Approved at Anemic Pace Statewide California jurisdictions' issuance of new housing permits has fallen to one of the lowest levels in more than a decade, excluding the early pandemic slowdown. The state approved about 49,400 units in the first half of 2025, marking a modest decline from last year and well below both the recent building surge and the long-term average. Rising borrowing costs, leftover unsold units from the pandemic construction boom and broader economic uncertainty have limited builders' willingness to start projects. Single-family homes have seen the sharpest pullback, while apartment construction has held steadier, but still fall below peak activity. The national picture shows a similar trend, but overall permitting remains stronger than California's. Bay Area to Face Regionwide Vote to fund BART California lawmakers have approved SB 63, clearing the way for a 2026 ballot measure that would raise sales taxes in five Bay Area counties to stabilize struggling transit systems like BART, Muni and Caltrain. The proposal would form a new regional district under the Metropolitan Transportation Commission and could generate up to $1 billion annually for 14 years, though the tax rate would vary between counties. Supporters argue the revenue is necessary to avoid steep service cuts, while critics warn the measure could burden low-income residents and question whether agencies have done enough to control costs. To address concerns, the bill requires efficiency audits and directs agencies to explore redeveloping land around stations for housing or mixed-use projects. If approved by voters, the sales tax would take effect in 2027, pushing some Bay Area cities' tax rates to the highest in California. Threat of Lawsuit Scuttles Logistics Plan in San Bernardino The board of the Inland Valley Development Agency (IVDA) voted to scrap its Inland Valley Infrastructure Corridor project--a master plan for logistics around San Bernardino Airport--to avoid a lawsuit from the People's Collective for Environmental Justice Action. Community groups argued the plan violated California's environmental disclosure laws and would have displaced residents while increasing polluting warehouse and industrial development. This marks the third time in recent years that residents have successfully blocked similar IVDA proposals, including the controversial Airport Gateway Specific Plan. Local advocates celebrated the cancellation as a major environmental justice win but urged the agency to engage communities more meaningfully in future planning. Court Non-Ruling on Palm Springs Project Strengthens Prevailing Wage Law The California Supreme Court refused to hear an appeal over wage requirements tied to a $175 million redevelopment in Palm Springs, effectively upholding a lower court decision against the project's developer. Palm Springs Promenade LLC, backed by Grit Development, must now comply with state prevailing wage laws and may owe workers back pay for construction on the former Desert Fashion Plaza site. The company had argued that the project was exempt under the city's charter authority, but appellate judges concluded the developer controlled how construction funds were spent. The dispute began in 2017 after a labor compliance group sought a state review, and the case drew attention from the League of California Cities, which supported the developer's position. The ruling sets a precedent that developers in public-private projects cannot sidestep wage rules by invoking municipal exemptions when they retain primary control over construction. CP&DR Coverage: The (Potential) SB 79 Revolution Of all the land use and housing bills passed in California over the past decade, none has ever received as much hoopla as SB 79, the legislation that would essentially upzone all property. Mear major transit stops around the state and give transit agencies more power over zoning and developing their own property. Many years in the making, SB 79 passed the legislature on the last day of the session and is expected to be signed by Gov. Gavin Newsom. Supporters - largely from the YIMBY movement - hail the bill as the biggest step forward yet in the effort to increase housing production in California. It includes a two-tier system in which allowed housing densities depend on quality of nearby transit service. Quick Hits & Updates Measure ULA, Los Angeles's real estate transfer tax, has dampened luxury property sales and slowed housing development even as it channels money into affordable housing programs, according to a report from the UCLA Lewis Center. The study also pushes back on claims of widespread job creation, concluding that the measure has so far generated only a small number of construction jobs rather than the thousands touted by supporters. San Francisco voters recalled Supervisor Joel Engardio after he backed the conversion of the Great Highway into Sunset Dunes, a car-free coastal park that many Sunset District residents opposed despite citywide approval. While Engardio defended the project as worth the political cost, his ouster highlights broader Bay Area discontent with local leaders and divisive development decisions. Santa Clara County's $950 million Measure A bond has nearly run out of funds but exceeded expectations, supporting close to 6,700 affordable homes, far above its original 4,800-unit goal, while also enabling projects like Mountain View's La Avenida Apartments for low-income and formerly homeless residents. Despite successes, rising costs and shortfalls in rapid rehousing units leave questions about future funding, with advocates calling for continued public and private investment to maintain momentum. Santa Ana approved The Village, a redevelopment project near South Coast Plaza that will replace an underperforming retail center with nearly 1,600 homes, along with new shops, offices, bikeways and acres of public open space. The project is expected to generate about $5.5 million annually in tax revenue and create roughly 9,000 jobs, positioning the city to meet state housing goals while transforming the area into a mixed-use community hub. Los Angeles Metro released a draft EIR for a 4.5-mile C Line extension from Redondo Beach to Torrance, adding two new stations and providing a direct 19-minute rail connection to LAX and nearby Inglewood venues like SoFi Stadium. Expected to open in 2036, the project incorporates community feedback, trench designs to reduce noise and traffic impacts and is projected to draw more than 11,500 daily riders while cutting millions of vehicle miles each year. Kilroy Realty is moving to revive its long-delayed redevelopment of the former San Francisco Flower Market site in Central SoMa, filing new applications that present four possible versions of the project ranging from office-heavy towers to high-rise housing, mixed-use or institutional space. The redesigned proposals increase building heights and parking while dropping earlier promises of childcare and community space, reflecting the developer's attempt to stay flexible in a shifting market where both housing and office demand remain uncertain. San Diego Mayor Todd Gloria is proposing to dissolve the city's four community parking districts after an internal review found contract violations, questionable reimbursements and spending on overhead instead of neighborhood improvements. If the City Council approves, the city would redirect $1.8 million in annual parking meter revenue to fix sidewalks, streetlights and other infrastructure, though district leaders argue the mayor is exaggerating problems and trying to grab funds to cover budget gaps. Oakland-based nonprofit PSE Healthy Energy released an interactive map of methane leaks across the country from 2016 to 2025, including 32 occurring in California, all in the southern San Joaquin Valley. Associated with oil and natural gas production, almost all the methane leaks also included other dangerous chemicals such as benzene in concentrations hundreds of times higher than the state's short-term limits. The nonprofit said most people effected by leaks never know they are happening, and they hope to provide communities with a better understanding of how methane leaks affect health and air quality. Capitola city leaders are preparing to redevelop 46 acres of empty space at Capitola Mall into up to 1,700 housing units. Capitola City Council will need to make major zoning decisions before the project can begin. Community Development Director Katie Hurley says the council will choose between updating existing objective standards, fast-tracking updates, or adopting a form-based code. The California Department of Housing and Community Development awarded $52.6 million to two housing projects in Atascadero and Ojai, two of the areas most severely impacted by the winter storms of 2022 and 2023. These grants seek to jumpstart construction for 91 affordable rental homes, using the federally funded Distaster Revovery Housing Accelerator Program (DR-ACCEL).

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . Lawmakers Reach Deal to Fund High Speed Rail through 2045 Governor Newsom and California lawmakers struck a deal to dedicate $1 billion annually from 2030 to 2045 for the state's high-speed rail project, the largest guaranteed funding commitment in its history. The money is enough to finish the 171-mile Central Valley segment between Merced and Bakersfield, slated for completion in 2033, but not enough to extend the line to San Francisco or Los Angeles, and more funds will be needed to reach population centers like Gilroy and Palmdale. The commitment is tied to an extension of California's cap-and-trade program, which generates billions annually for climate and infrastructure projects. Supporters say the investment will create jobs and reduce emissions, while critics call it wasteful spending after years of delays and ballooning costs. 15 Jurisdictions Receive Prohousing Designation California has added 15 jurisdictions to its list of communities with the Prohousing designation. They include the cities of Adelanto, Bishop, Campbell, Chula Vista, Hayward, Indio, Lancaster, Los Altos, Santa Ana, Sunnyvale, and Woodland; the counties of Nevada, San Luis Obispo, and Tuolumne, and the town of Moraga. This status is given to local governments that adopt policies aimed at increasing housing production, such as streamlining permitting, updating zoning rules and reducing certain fees. The newly added communities are taking varied approaches, including supporting accessory dwelling units, making use of public land and adjusting regulations to encourage affordable housing. To keep the designation, jurisdictions must maintain certified housing plans, complete rezonings, comply with state housing laws and submit regular progress reports.(See related CP&DR coverage.) Los Angeles County Light Rail Extension Pushes Toward Inland Empire; Next Phase Faces Funding Troubles Los Angeles Metro opened its long-awaited A Line extension from Azusa to Pomona, a $1.5 billion project adding four new stations and expanding the world's longest light rail line to 58 miles. The nine-mile addition improves access to colleges, medical centers and the Pomona Fairplex, which will host Olympic cricket matches in 2028. Construction began in 2020 and required relocating freight tracks, with Metro now overseeing operations after the Foothill Gold Line Construction Authority completed major work. While the project was originally planned to continue east to Claremont and Montclair, the San Bernardino County Transportation Authority recently withdrew $37 million in funding, halting the Montclair extension for now. Officials say the Claremont extension remains on track, but the Montclair segment and eventual hopes of reaching Ontario Airport faces major delays. San Francisco Zoning Reform Advances, with Opposition Heating Up The San Francisco Planning Commission approved Mayor Dan Lurie's 'family zoning' plan after a contentious ten-hour long hearing that highlighted increasing division over the plan to add 36,000 new homes to San Francisco's west side and southern neighborhoods. Opposition groups said the zoning changes would displace small businesses and tenants and lead to uncontrolled real estate speculation, while Lurie says the plan is critical to make San Fransisco affordable for families and viable for small businesses. Supervisors Myra Melgar and Chyanne Chen have both introduced legislation to protect small businesses and tenants, with Lurie supporting. The group Neighborhoods United brought opposition to the plan on the grounds it never received an Environmental Impact Report from the city. The Planning Commissioners who voted against the plan criticized a lack of funding mechanisms to ensure affordable housing can be funded sufficiently, and said mere upzoning, rather than a comprehensive urban development plan, would be insufficient to tackle the city's problems. CP&DR Coverage: American Planning Assoc. Conference Preview The City of Monterey and the surrounding urban area is likely the smallest region to host the conference of the California Chapter of the American Planning Association, but it punches above its weight in terms of the complexity of urban planning challenges and issues. The region lies on the border between the Central Coast and the Bay Area, hemmed in by mountains and the Pacific Ocean. In preparation for this month's conference, which starts September 28 at the Monterey Convention Center, CP&DR's Josh Stephens spoke with Monterey Community Development Director Kim Cole; Marina Planning Manager Alyson Hunter; and Salinas Planning Division Manager Grant Leonard. CP&DR is a media sponsor of this year's conference. Quick Hits & Updates The California Supreme Court is being asked to decide who controlled $51 million in public funds used in Palm Springs' $175 million downtown redevelopment, a key factor in whether the project must pay prevailing wages. The case has broader implications for charter cities' authority in public-private partnerships, with municipal leaders warning the appellate court's ruling could undermine local fiscal autonomy while state regulators argue the private developer, not the city, controlled the construction. The Richmond City Council will weigh a sweeping plan to redevelop the 143-acre Hilltop Mall site into a mixed-use district, with new housing, retail, parks and transit links, aiming to help the city meet its housing goals. While planners and officials support the vision, residents remain split over density levels, and environmental review is expected to begin before final hearings in 2026. According to long-range projections from the University of Illinois Chicago, Fontana and Moreno Valley in the Inland Empire are among the California suburbs expected to see major growth this century. Fontana's population is forecast to rise by about 99,000 residents to more than 308,000 by 2100, while Moreno Valley could add over 104,000 residents, reaching more than 314,000. Home hardening and defensible space can cut destruction rates nearly in half, dropping losses from 80% to as low as 52%, according to a UC Berkeley-led study of five major California wildfires found that. Researchers said survival depends most on spacing between homes, siding materials and building age, but stressed that community-wide adoption of mitigation strategies is key to saving lives and homes. The Los Angeles City Council voted 11-2 to approve a $2.6 billion Convention Center expansion, despite warnings it could drain over $100 million a year from the city's general fund and threaten basic services. Supporters, including Mayor Karen Bass, argue the project will create thousands of jobs, boost downtown's recovery and prepare L.A. to host Olympic events in 2028, while critics warn it could worsen the city's budget crisis and leave a gleaming facility surrounded by deepening homelessness. A large majority of Los Angeles residents support building more affordable apartments, even in neighborhoods now zoned for single-family homes, according to a UCLA Lewis Center poll. The study suggests many Angelenos are willing to allow higher-density housing across typical single-family streets to help ease the city's housing shortage and expand affordable options. The Solano County Board of Supervisors voted to support state legislation that would allow California Forever to construct a shipbuilding facility in Collinsville. The legislation would override voter approval for development, and public comment before the vote was highly critical of the plans, which opposing residents said would eliminate local control over development and the environment. Researchers at Occidental College released a report on Los Angeles's Measure ULA, the "mansion tax" passed by voters in 2022. In April 2025 the UCLA Lewis Center released a report titled Taxing Tomorrow which found that the tax was hurting the real estate market. The report found that Taxing Tomorrow came to "premature conclusions" based on "questionable methodology, limited data, and flawed analysis". Los Angeles has launched its largest affordable housing funding round ever, offering $387 million to developers, most raised through Measure ULA's “mansion tax” on property sales over $5 million. Unlike past funding cycles, the city will now award money based on a percentage of project costs, covering anywhere from 30% to 100%, to accelerate construction, preservation and adaptive reuse projects. California lawmakers are considering paying Valero between $80 and $200 million to cover maintenance costs for the Benicia refinery near San Francisco. The plant is scheduled to close in April of next year, and would be the latest refinery closure in California. Over the past year Governor Newsom has encouraged California regulators to work with oil companies to prevent closures in an effort to contain fuel costs which are already the highest in the country. The California Theatre in San Diego has been listed for sale as an immediate redevelopment opportunity. The half-acre property has fully satisfied historical requirements for redevelopment, and listing agent Jason Kimmel described the property as a key component San Diego's long-term plan for the civic center area.

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . State Reaches Agreement with Artesia to Update Housing Element The Attorney General's Office and the Department of Housing and Community Development reached a settlement that will bring the Los Angeles County city of Artesia into compliance with Housing Element law. In 2023, HCD found Artesia to be out of compliance with the Housing Element Law. HCD issued a letter of inquiry, inviting Artesia to explain its non-compliance in May 2023. The city responded with a proposed timeline for compliance, but then failed to meet its own deadline. HCD issued a Notice of Violation (NOV) in October 2024. The agreement, which is in the form of a proposed stipulated judgment and must be approved by the court, lays out deadlines for the city to revise the housing element. Under the settlement, Artesia will take several required actions to adopt a compliant housing element no later than January 2026. The housing element will plan for 1,069 new homes, including 608 that will be affordable for very low-, low-, and moderate-income Californians. Artesia will face civil penalties of at least $10,000 per month from January 1, 2025 to the compliance deadline of January 2026. Artesia must acknowledge that the “Builder's Remedy”— a provision in the Housing Accountability Act that requires local permitting authorities to process certain housing project development applications, regardless of zoning or general plan consistency — is in effect until the City has an updated housing element. Bill to Soften Los Angeles "Mansion Tax" Dies When Mayor Unexpectedly Revokes Support Los Angeles Mayor Karen Bass worked with state lawmakers to draft a bill that would scale back Los Angeles' “mansion tax,” arguing it discouraged housing construction, but the plan collapsed when she withdrew it hours before a key vote. The proposal, known as SB 423, would have reduced taxes on recently-built apartments, shopping centers and warehouses, while maintaining higher rates on luxury homes, with the aim of stimulating development. Supporters of Measure ULA, the voter-approved tax on property sales over $5.3 million, denounced the move as an attempt to undermine voters' will and warned it could slash revenue for affordable housing and homelessness programs by up to 30%. Business groups and real estate advocates were split, with some calling the changes insufficient and others viewing them as a necessary correction to keep projects viable. Bass and the bill's co-authors vowed to revise the legislation and bring it back in January, while opponents of ULA continue on with a separate statewide ballot measure that could nix the tax entirely. (See related CP&DR coverage .) California Rep. Liccardo Co-Sponsors Federal Housing Bill U.S. Reps. Sam Liccardo, D-Calif., and Mike Flood, R-Neb., introduced legislation aimed at making it easier for cities to use federal money to build affordable housing. The Unleashing Needed Local Options to Construct and Keep Housing (UNLOCK) Act would loosen restrictions on how municipalities spend Community Development Block Grant (CDBG) funds. Efforts stem from feedback gathered by the House Subcommittee on Housing, which sought input from local governments on ways to reduce red tape in federal housing programs. “When Mountain View shared their idea, I jumped at the chance to bring this idea to fruition in Congress,” Liccardo said — referring to the city in his district that recommended expanding CDBG flexibility. “As Mayor of San Jose, I saw firsthand how cities are forced to face the brunt of the housing crisis without the federal money to match the magnitude. Easing restrictions on municipalities' use of CDBG funds will help us meet our communities' growing needs faster.” Mountain View, Calif., officials said the city has five affordable housing projects in its pipeline that could benefit from the change. Flood said the measure would also help communities in his state: “This targeted legislation would give communities across the state the flexibility to use CDBG dollars to directly address housing supply needs.” The bill has backing from the U.S. Conference of Mayors, National Association of Counties, National League of Cities and other national housing organizations. Federal Land Management Rules Could De-emphasize Conservation The Department of the Interior may repeal a Biden-era land management rule that had elevated conservation to the same priority as development on federal lands. The 2024 rule allowed public property to be leased for ecological restoration, but critics in industry and agriculture argued it threatened energy production, grazing and recreation. Burgum and other opponents said undoing the policy would preserve access for multiple uses and safeguard local economies, while environmental groups countered that the move undermines federal law and favors extractive industries. The proposal aligns with broader Trump administration efforts to expand drilling, mining and logging across Western states. Once formally published, the rollback will undergo a 60-day public comment period, setting up a clash between conservation advocates and industry supporters over the future of public lands. CP&DR Legal Coverage: Judge Sides with HCD in Beverly Hills Builder's Remedy Case A Los Angeles judge has ruled that the addition of a hotel and the subtraction of some affordable housing units doesn't cause a Beverly Hills developer's vested rights under the builder's remedy law to expire. Rather, he wrote, the two changes fall - just barely - within the law's provision that a developer can change both affordable housing and square footage by 20% without surrendering the vested rights. This marks the second time in recent months that an L.A. judge has relied heavily on interpretations from the Department of Housing & Community Development on the vested rights question. Judge James Chalfant recently ruled a 90-day window to respond to incompleteness letters resets each time a new letter is received, based in part on HCD's interpretation. Quick Hits & Updates San Diego's Metropolitan Transit System voted to postpone a proposed 2026 sales tax measure until 2028, opting instead for its first fare hike since 2009 and other stopgap measures to address a projected $250 million deficit. The plan includes raising fares by up to 20%, diverting $225 million from capital funds to operations and considering service cuts and pension payment adjustments. President Trump issued an executive order to establish a “National Center for Warrior Independence” on the West L.A. VA campus, calling for up to 6,000 housing units for homeless veterans by January 2028, but the details of the plan are being developed largely behind closed doors, with nondisclosure agreements, lack of public input and blocked access for veterans and Congress. A Los Angeles City Council committee voted to move forward a plan that could end mandatory parking requirements for new housing, giving developers the option to build with little or no parking. Santa Monica City Council approved a one-year pilot program letting developers meet affordable housing rules by building units off-site, rehabbing old ones or paying fees, in hopes of jump-starting stalled projects amid high costs and interest rates. Supporters say it could unlock thousands of units, but critics, including the mayor, warn it risks reinforcing segregation and weakening the city's commitment to integrated affordable housing. Anaheim officials are in early talks with startup Swyft Cities about a $125 million gondola system that could connect Disneyland with major destinations like the Honda Center, Angel Stadium, ARTIC and the Anaheim Convention Center. The 3.8-mile route under discussion would run along Katella Avenue with a five-minute end-to-end trip. The Trust for Public Land's 2025 ParkScore index ranked Irvine second place nationwide for park acreage, access, amenities, investment and equity, credited largely to its Great Park project. San Francisco also placed near the top, ranking in the top ten for its strong park access and sustained investment, and San Diego ranked 22nd. A federal judge in San Francisco ordered the U.S. Fish and Wildlife Service to decide within nine months whether the San Francisco Estuary's white sturgeon population should be listed as threatened under the Endangered Species Act. The agency had sought until 2029, citing staff cuts and a backlog, but the presiding judge ruled that its delays were partly self-inflicted and couldn't override statutory deadlines. The estimated price of a planned expansion and refresh of the LA Convention center has risen to $2.7 billion, up $483 million from six months ago, intensifying uncertainty about whether the center will be ready in time for the 2028 Olympics. The city is counting on two planned digital billboards to contribute revenue, but approval is uncertain and the city would have to come up with $111 million a year through 2058 to cover expansion costs. Most of the increase comes from the Department of Water and Power, which issued higher estimates for relocating utilities. LADWP also warned that the project would likely cause delays to the planned rail line to the San Fernando Valley and other projects as staff would have to be diverted. A new study found San Diego has the second-oldest homeowners in the nation, with an average age of 54, just behind Los Angeles at 55. Despite the metro area's median age of 39, high housing costs, stagnant wages, and policies like Prop. 13 have kept older homeowners in place while younger residents leave or continue renting, making nearly half of San Diego households renters. The Sacramento Area Council of Governments announced that the region constructed 12,500 homes in 2024, the highest in a year since 2005 and surpassing current annual targets. To meet the current goals, the region will need to add 278,000 new housing units by 2050. SACOG pointed to policies such as removing parking mandates, streamlining approvals, and more flexible zoning as key to the increased construction.

Eight years ago, the legislature adopted legislation to permit “Enhanced Infrastructure Financing Districts,” which would have used tax-increment financing to facilitate tricky developments that jurisdictions considered important. Arguably, few infill projects in the state are more important than the Sacramento Railyards, a 220-acre expanse adjacent to the city’s downtown. And yet, when the Sacramento City Council recently tried to expand the boundaries of an existing EIFD it had planned to help finance development of the Sacramento Railyards, it was rejected. State law requires that if more than half of existing local residents object, the EIFD must be abandoned. Frustrating as the vote might be for the project’s boosters, that sort of stakeholder input is an inherent part of EIFD law. The regulations were intended, in part, to counter the opacity of the state’s former redevelopment system. “If anything, this demonstrates that the process works,” said consultant Larry Kosmont, who works on EIFDs and infrastructure financing. “We want full disclosure. This validates that the notification process will result in community input, which is the intent of it.” The main sticking point for current residents seems to be how much affordable housing will be included when the project is completed. The developers plan to have about 6 percent of the total number of units be affordable; residents and a local service workers’ union asked for at least 25 percent. The city’s Housing Element, filed with the state in 2021, states that “the City shall require a 20 percent set-aside for affordable housing in all new enhanced infrastructure financing districts to the extent permissible by State law.” Currently, there are only two housing developments completed within the proposed expanded EIFD boundaries, with a total of about 500 units, but they are not all rented out. The Wong Center specifically offers affordable housing for seniors. The AJ is a mixed-income development that counts 20 percent of its units as affordable. That means that about 45 percent of the housing built so far is affordable. "That's a great ratio," said Unite Here Local 49 representative Sonya Karabel. "But the final plan is that more than 94 percent of the rest will be market rate." "Our members work in the service industry in downtown Sacramento," said Karabel. "They are the low-income workers who need affordable housing near downtown. Six percent affordable housing isn't enough." Sacramento City Councilmember Phil Pluckebaum, who is head of the Railyards Authority, did not respond to requests for interviews from CP&DR. First envisioned two decades ago, and formalized in a 2007 environemntal impact report, the original Sacramento Railyards development plan had focused on renovating the vintage brick warehouses for big-box retail, and on adding housing as well as a new stadium or arena. State grants allowed that first developer to begin work on some of the extensive environmental mitigation that was needed due to the industrial nature of the area, as well as new roads and bridges and improved stormwater and sewer facilities.

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . San Francisco Mayor Proposes Suite of Land Use Reforms San Francisco Mayor Daniel Lurie announced six new legislative reforms, which he described as "common sense". Introduced to the Board of Supervisors last week, the reforms are part of the mayor's PermitSF initiative to simplify the city's permitting process. The changes include eliminating the screen or fence requirement for driveways to allow people to park in their own driveways, loosening restrictions on historic building usage to keep spaces occupied and avoid disinvestment, and making it easier to install commemorative plaques. Permitting fees for projects over $100 million would be reduced and fee timing made more predictable, and ADU rules would be aligned with state laws to make it easier to add such units. Finally, the changes would remove a requirement for excavation permits to file a parking plan with SF Public Works. Mayor Lurie also announced Permit Center customer service changes, including a new process for rooftop solar and energy storage permits, and rolling out "over-the-counter" remodel permits to restaurants seating under 50. There are also new protocols for case escalation when the city asks an applicant for more than three revisions to their plans, and the requirement to meet with city staff before filing permit applications for larger projects has been removed. Housing Development Would Double Size of City of Gonzales The Gonzales City Council unanimously approved the Vista Lucia housing project, a 3,498-unit development that has been in discussion for over two decades, potentially almost doubling the size of the town. The plan covers 771 acres and will unfold over 30 years, featuring a mix of single-family homes, apartments, mixed-use units, and affordable housing built by nonprofit CHISPA. Community amenities include a donated site for an elementary school, nearly 80 acres of parks and open space and a network of trails, walkways and bikeways. While some advocates pushed for denser housing to ensure greater affordability, councilmembers and many residents favored the current plan, emphasizing opportunities for community growth. Final approval still depends on annexation by the Local Agency Formation Commission of Monterey County. California's Newest National Monument Opens Near Santa Cruz The Cotoni-Coast Dairies National Monument, north of Santa Cruz, is opening to the public after years of preparation and delays since its designation by President Obama in 2017. Spread across 5,800 acres, the site offers ocean-view terraces, redwood forests, canyons and wildlife habitat, with nine miles of multi-use trails ready and more planned. The designation endcaps a decades-long fight against development proposals like luxury housing, oil drilling and a power plant. Concerns about overcrowding, parking and habitat protection slowed the process, but federal agencies, conservation groups and Indigenous communities worked together on restoration, cultural surveys and trail-building. Starting last month, visitors can explore the monument daily, with improved access for hikers, cyclists and people using adaptive bikes. Report Faults Bureaucracies for Delays in Infrastructure Development A report released by Circulate San Diego highlights how transit agencies lack the authority to construct projects without navigating numerous third-party permits from governments, utilities and agencies. The report details case studies where permitting delays added costs to projects ranging from High-Speed Rail to small busways, while contrasting them with SANDAG's Mid-Coast Trolley, which benefited from unique statutory powers. Speakers emphasized the urgency of reform, linking permitting barriers to climate change, housing shortages and economic challenges. The report recommends empowering transit authorities with direct permitting authority, incentivizing streamlined processes at the local level, expanding CEQA exemptions for sustainable projects and strengthening Caltrans' role in transit leadership. CP&DR Coverage: Small Cities Support Ballot Measure to Limit State's Land Use Authority The proposed “Our Neighborhood Voices” (ONV) ballot measure would call for a constitutional amendment declaring that local authority overrides state authority in most land use matters. A version of it first arose in 2021 and was proposed for the 2024 ballot, but it faded for apparent lack of funding. Supporters are feeling newly emboldened as cities have struggled with the state over their Sixth Cycle RHNA obligations and various state overrides on housing. A handful of cities— including some pricey coastal cities in North County San Diego — are speaking out, lest the Seventh Cycle puts further burdens on them. With next year's statewide election in the offing, supporters are resuming their campaign. Quick Hits & Updates Santa Clara Valley Water District has officially canceled the long-debated Pacheco Reservoir project after costs ballooned from under $1 billion to more than $3 billion, with no partner agencies willing to share the financial burden. After spending $100 million on planning and studies, the district will now focus on alternatives such as expanding groundwater storage, water recycling and upgrading existing reservoirs, while critics and environmentalists welcomed the decision as both fiscally and environmentally sound. Developers have filed plans to redevelop Golden Gate University's downtown San Francisco campus with either a 700-foot office tower or a 650-foot mixed-use tower that would combine offices with 370 housing units. Lincoln Property and McCourt Partners, working with architecture firm SOM, say the project would provide financial support for the university while adding new commercial and residential space to the Financial District, though the school's long-term presence at the site remains uncertain. Horton Plaza, once a celebrated anchor of downtown San Diego, has fallen into foreclosure after developer Stockdale Capital Partners defaulted on a $360 million loan tied to its conversion from a mall into a tech-focused office campus. The property, valued at around $400 million, was returned to lender at auction and experts note the city missed a chance to acquire it for just $130 million, leaving its future redevelopment opportunities uncertain. (See related CP&DR coverage .) Santa Clara County Planning Commission is considering major changes to rural and agricultural zoning rules, restricting conversions of farmland to non-farming uses and establishing maximum building coverage limits for non-agricultural purposes. The new zoning would also simplify categories for agriculture-supportive uses and eliminating the Winery categorization in favor of individual use classifications. Local winery operators expressed significant concern about the effects this would have on their operations, saying the changes could force many wineries out of business. The Trump administration cancelled $427.6 million approved for offshore wind infrastructure in northern California. The funds were to help construct a marine terminal in Humboldt Bay for the assembly and deployment of floating turbines along the California and Oregon coasts. Project leaders said they would continue with the project, although a delay of several years beyond the projected 2029 opening date is likely with the revoked funding representing around half of the total project price. The project will continue to look for alternative funding, including through CA Proposition 4, a climate bond passed in November that included $475 million for offshore wind energy. Los Angeles City Council has approved a 51-story, 526-unit residential and ground-floor retail tower in South Park to a site currently used as a parking lot. While the project reflects strong demand for downtown housing, experts note that high interest rates, rising construction costs, tariffs and labor instability could delay or derail its groundbreaking despite the neighborhood's steady 90% occupancy and growing appeal as a residential hub. San Francisco will allow Waymo robotaxis and Uber and Lyft black cars to operate at designated points along Market Street's 10-block car-free stretch, as part of a limited trial aimed at revitalizing downtown. While Mayor Lurie and business groups say the move will boost theaters, restaurants and hotels, transit advocates, cyclists and taxi drivers argue it undermines hard-won car restrictions, risks congestion and favors higher-cost services over affordable options. Dust from the Salton Sea's expanding shore area accounts for less than one percent of total small particle pollution in the Coachella and Imperial Valleys, according to a report from the Pacific Institute. California has spent $49 million on dust supression around the Salton Sea, but some researchers are suggesting exposure control such as air quality alerts, distributing filters, and weatherizing homes, can be more successful and cost-effective due to the sheer number of pollution sources. The region is one of the most polluted in California, with communities experiencing asthma and health problems at extremely high rates. San Diego City staff released a new draft of the Clairemont Community Plan Update, proposing to allow higher density housing and taller construction around Blue Line trolley stations in the neighborhood's center and redeveloping parking lots into mixed-use spaces. The vast majority of the neighborhood would remain zoned for single homes, including areas such as Bay Park well within walking distance of trolley stations. Housing and climate advocates criticized the plan as a small fix that does position the city to meet their housing and emissions goals.

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . High Speed Rail Accelerates Construction Timeline Despite Federal Pushback California's High Speed Rail Authority is accelerating the timeline for 2026 rail instillation, approving issuance of invitations for bids for high-speed rail components for the initial 119-mile Central Valley segment of the line. The Authority gave a total approved cost of $507 million with 6 to 12-month lead times for these contracts. Meanwhile, the Trump administration is set to cancel more a $175 million dollar federal grant for track, overcrossings, and a station in Madera, citing slow progress and cost overruns. The High-Speed Rail Authority accused the administration of politically motivated cuts, and said progress is being made, with 171 miles under design and construction in the Central Valley with 70 miles of guideway and 57 structures already complete. The original 2008 plan for 800 miles of high-speed rail spanning from LA to San Francisco was estimated to cost $33 billion. The HSRA's current focus of a Bakersfield - Merced line is now estimated to cost $35 billion, with entire project believed to total between $89 and $128 billion. Despite years of delays and cost overruns, support for the project remains strong among Californians. U.S. High Speed Rail, a nonprofit advocacy group co-chaired by former Republican congressman and USDOT secretary Ray LaHood, found that 62% of Californians support building the project. (See related CP&DR coverage .) Yucaipa Approves Controversial Warehouse Development The Yucaipa City Council narrowly approved an update to the Freeway Corridor Specific Plan, clearing the way for the Pacific Oaks Commerce Center, a two-million-square-foot warehouse and office project. The revision shifts some development reviews from public hearings to administrative approvals, increases business park space and reduces regional commercial capacity while adding limited new housing. Supporters emphasized the project's financial benefits, including $14 million in impact fees and $35 million in required infrastructure investments, framing it as a long-term economic opportunity after years of delays. Opponents, including Mayor Pro Tem Chris Venable and many residents, argued the plan reduces government transparency, exaggerates infrastructure benefits and will worsen pollution, traffic and the loss of open space. The ordinance requires a second council vote before final adoption, which would make the project one of Yucaipa's largest recent developments. (See related CP&DR coverage .) Cupertino Defies State on Application of Builders Remedy The City of Cupertino is embroiled in a legal clash with the Department of Housing and Community Development over how long developers have to fix incomplete housing applications. Via a letter recently sent to HCD, the city insists the Permit Streamlining Act allows just one 90-day correction period, after which a project expires, while the state says each new incompleteness ruling resets the 90-day clock indefinitely. The dispute has already triggered lawsuits from developers, backed by housing advocacy groups, who argue Cupertino wrongfully rejected projects and is violating state housing law. If courts side with developers, projects could bypass local zoning under the builder's remedy, a consequence tied to Cupertino's delayed housing plan compliance. As the state reviews Cupertino's response, advocates warn the city is risking further legal trouble while resisting pressure to deliver thousands of new homes, including affordable units, by 2031. (See related CP&DR coverage .) Oakland to Create City Office to Address Homelessness The City of Oakland will create the Office of Homelessness Solutions, funded by newly available Alameda County tax revenue from Measure W. The office will focus on building shelter capacity and rehousing individuals to prevent 2,500 people from becoming homeless per year. Currently around a third of Oakland's 5,500 homeless residents are sheltered. The city has not shared how many staff will be hired for the new office or whether any existing city employees from other departments will be reassigned. Oakland's chief housing policy director Sasha Hauswald will serve as the office's interim chief. The initiative comes as Oakland struggles to address homelessness amidst financial constraints, with multiple shelter bed vendors ceasing work with the city because of delayed payments. A portion of Measure W funding will also be used for permanent housing for previously homeless individuals. Report Details Population Trends for Los Angeles County The USC Lusk Center for Real Estate released its inaugural State of Los Angeles County Housing and Neighborhoods report, a comprehensive report on the housing and demographic landscape of the county. The report found that the immigration-driven growth of the 20th century has reversed, with the county's population falling by 5 percent since 2015. The share of households with children has fallen to below the national average, but housing demand has stayed strong thanks to an increase in total households. The center found that new housing is being built far too slowly for demand: total housing construction has fallen drastically since the 20th century, and the vast majority of new units are out of reach for lower-income families. Additionally, the permit to completion times of projects in LA are nearly triple the national average. The home ownership rate is at 45%, the lowest in over 50 years, with the steepest declines in home ownership since 2010 coming for middle-class families and Black families. The rental market remains one of the most expensive in the nation, with more than 90% of renters earning under $50,000 spending over 30% of their income on housing. Homelessness continues to grow, although the increase in housing options for homeless people reduced the unsheltered rate to a 10-year low of 65%. The vast majority of unhoused Angelenos lived in the city before becoming homeless, showing the link between housing affordability and homelessness. (See related CP&DR coverage .) CP&DR Coverage: A New World of Exactions A couple of weeks ago, the appellate court in Sacramento ruled on the merits of the famous Sheetz exactions case , which went to the U.S. Supreme Court last year. The case got kicked back down to the Third District Court of Appeal because SCOTUS, characteristically, did not rule on the merits of the case. Instead,SCOTUS ruled against the standard California practiceof giving cities and counties more leeway on exactions if they are imposed by a legislative act - such as a General Plan - rather than on a one-off project-level basis. Back in the Third District Court of Appeal, a three-judge panel said averaging was good enough. That's almost certainly not the end of the story . Sheetz is represented by the Pacific Legal Foundation, the public interest law firm that raises funds for pro-property rights cases and does not charge its clients. That means a certain trip back to the California Supreme Court - which may again decline to take the case - and to SCOTUS. Quick Hits & Updates U-Haul's Midyear Migration Trends report found that California residents moving out of the state are primarily moving to Texas, Colorado, and Tennessee, with the most popular metropolitan areas including Houston, Las Vegas, and Denver. For people moving into California, the top ten states of origin were Arizona, Nevada, Texas, Washington, Oregon, Colorado, Utah, Florida, Illinois, and New York. Riverside, San Francisco, San Jose, San Diego, Sacramento and Bakersfield drew the most new arrivals, a substantial percentage of which were California residents moving from a different part of the state, the report found. Unions and advocacy groups in Los Angeles are demanding a “New Deal” from the LA28 Olympic committee, calling for major housing investments, a ban on short-term rentals and protections for workers to prevent displacement during upcoming mega-events. While organizers argue these measures are essential to address the city's housing crisis, Olympic officials and Airbnb counter that the Games will generate jobs, revenue and necessary lodging for millions of visitors. A new study warns that downtown Los Angeles could lose nearly $70 billion in office value and $353 million in property tax revenue over the next decade unless underused towers are repurposed. To counter this, developers and city leaders are championing office-to-housing conversions like the L.A. Care tower project on 7th Street, which will transform a 1980s high-rise office building into new apartments. Monaco billionaire Patrice Pastor, who has spent over $100 million buying properties in Carmel-by-the-Sea, says he will pull back from the town after years of frustration with what he calls unreasonable delays and nitpicking over his development plans. Despite redesigning projects multiple times to fit Carmel's strict architectural rules, Pastor claims city leaders and residents have unfairly blocked his efforts, leading him to reconsider his investments in the city. Rancho Palos Verdes City Council will ban new construction in a landslide zone which has experienced dramatic and destructive landslides in the past two years. The 715-acre zone contains 430 homes and 130 vacant privately owned lots. The changes would allow repair, restoration, and even replacement of existing homes as long as they do not increase in square footage. Researchers have found that chronic groundwater overuse in the San Joaquin Valley has caused significant land subsidence, reducing home values by 2.4% to 5.4%, or $6,689 to $16,165 per property, across eight counties. The study highlights the lasting economic impacts of subsidence on homeowners and underscores the importance of California's Sustainable Groundwater Management Act to slow or prevent further damage. A new nationwide analysis of housing cost and rent data by the Pew Charitable Trusts found that increasing housing supply for all income levels levels slows cost increases the most for older, cheaper apartments. While most new apartments are expensive, even increasing supply for high-income residents quickly frees up housing in low-income areas by preventing and reversing displacement. A study published in the Science Advances journal confirmed that climate change is responsible for California's earlier wildfire seasons. Scientists found that hotter, drier conditions elevated fire risk and pushed the start of fire season earlier by a week to up to two months in different regions. Max Moritz, a co-author of the study, also stressed that increasingly unpredictable rainfall will lead to more extreme years, some with high rainfall decreasing fire activity, and some with extreme drought conditions increasing wildfires. A ballot initiative has been introduced to repeal Proposition 103, a 1988 law that regulates insurance rates. The measure would make the state insurance commissioner an appointed position instead of an elected one, update wildfire risk mapping every three years, and change processes for reinsurance costs and mitigation credits. Supporters say it would increase competition and bring insurers back to the state, while opponents say it would increase insurance costs and weaken consumer protections.

by CP&DR Staff Vol. 40 No. 8 August 28, 2025 Report

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . Western Joshua Tree Receives Protection from State with Sweeping Conservation Plan The state has adopted its first-ever conservation blueprint to protect the western Joshua tree, hoping to safeguard the species from climate change and development pressures. The plan, ordered by a 2023 law, identifies areas where Joshua trees are most likely to endure in warmer climate and proposes measures like restricting growth, reducing fire risks and planting more resilient tree varieties. The plant is found in the high desert of the southeastern potion of the state, with heavy concentrations in Riverside and San Bernardino counties. Supporters hail it as groundbreaking because it protects a species before it becomes endangered, though critics argue the regulations add costly hurdles for housing and infrastructure projects in desert communities. Property owners now need permits and must pay fees to remove or disturb Joshua trees, sparking backlash from local governments, trade groups and residents who fear the rules will slow development and increase living costs. State officials say the plan will be refined over time, balancing ecological protection with community concerns, while periodic reviews will determine whether stronger protections under the Endangered Species Act are necessary. (See related CP&DR coverage .) Los Angeles City Council Opposes Transit-Oriented Development Bill Los Angeles City Council narrowly voted , 8-5, to oppose Senate Bill 79, a bill that would allow apartment buildings up to six stories tall near major transit stops by overriding local zoning rules. Supporters of the opposition, led by Councilmembers Traci Park and John Lee, argued that Sacramento is stripping cities of local control and placing development decisions in the hands of outside lawmakers and developers. Opponents of the council's stance, including Nithya Raman and Hugo Soto-Martinez, countered that Los Angeles is failing to meet its housing needs and that state action is necessary to address affordability and homelessness. (The city has a RHNA allocation of over 400,000 units.) Some councilmembers, like Ysabel Jurado, voiced concerns that the bill could accelerate the loss of rent-controlled units and displace vulnerable communities. Fresno County Judge Faces Ethics Complaint for Approval of Housing Development Fresno County Superior Court Judge Robert M. Whalen Jr. recently ordered the City of Fresno to approve an 82-unit market-rate apartment project in northwest Fresno, overturning the city council's split 2024 rejection of the proposal. The council and planning commission had blocked the development, citing traffic, safety and neighborhood concerns, but Whalen ruled that the city failed to show the project violated municipal codes or the general plan. His decision gives the council 60 days to set final approval conditions and determine whether the project qualifies for an environmental review exemption, while also allowing the developer, James Huelskamp of LandValue Management, to seek reimbursement of legal fees. The ruling comes amid an ethics complaint filed against Whalen with the Commission on Judicial Performance, alleging he did not disclose past campaign contributions from Huelskamp and should have recused himself due to their long-standing ties. (See related CP&DR coverage .) Los Angeles Moves Toward Allowing "Single-Stair" Apartment Buildings The Los Angeles City Council adopted a motion removing a Building Code requirement for apartment buildings to have multiple staircases. The legislation begins the process to update the city's building code to allow for multifamily residential buildings up to six stories to be built with a single stairwell, providing greater flexibility in housing construction across the City. The requirement was based on early-20th century fire concerns, which studies has been rendered unnecessary by advancements like sprinkler systems and fire-resistant materials. Councilmember Katy Yaroslovsky, who introduced the motion with Nithya Raman, said the change would help the construction of apartments with enough space for families by increasing construction flexibility. In the most recent Housing Element, 14% of rental units in Los Angeles have three or more bedrooms, compared to 70% of owner-occupied homes, resulting in overcrowding. Supporters of the motion emphasized its benefits for renting families. CP&DR Coverage: Judge Rejects EIR for Costco and Warehouse Complex in Fresno A judge has ordered the City of Fresno to redo the environmental impact report on one of the largest-ever Costco projects. Among other things, the court ruling shows that zoning ordinances are having a difficult time dealing with the increasingly blurry line between large retail stores and warehouses. The judge's ruling also builds on an appellate case from last year that struck down Fresno's program EIR, which was designed to expedite CEQA review for various projects. The 219,000-square-foot Costco in northwest Fresno would include a car wash, a 32-pump gas station, and a warehouse designed to make local deliveries of appliances and other large items customers cannot carry home from the store or have delivered by conventional delivery services. The warehouse was one of the things that tripped Fresno and Costco up. In August 2024, the appellate court struck down the Program EIR and the greenhouse gas reduction plan with it. Thus, Judge Skiles said, the city could not rely on the greenhouse gas reduction plan in certifying the EIR for the cost. Quick Hits & Updates Consultants warn that the City of Orange could face bankruptcy within three years unless it cuts spending and aggressively grows revenue, projecting a $46 million deficit by 2031. Their plan calls for a 12% reduction to the general fund, a 1% sales tax increase and fast-tracked economic development, including hotels, entertainment zones and mixed-use projects that could leverage the city's proximity to Disneyland and Chapman University. The Martinez City Council is set to review a proposal for a public-private partnership to revitalize the aging Martinez Marina, which has faced infrastructure decline and environmental challenges. A presentation by Tucker Sadler, an architectural firm, will outline a conceptual vision for redeveloping the marina, and the council may vote on entering exclusive negotiations to move forward with the project. San Francisco's property tax base saw its weakest growth in over a decade, rising just 1.8% this year due to falling commercial property values and a surge in appeals from owners seeking lower assessments. In contrast, counties less dependent on office and retail properties, like Solano and Sonoma, experienced stronger increases driven by new housing and fewer commercial challenges. Neighborhood and environmental groups are suing the city of Twentynine Palms to stop the approval of a proposed nature-themed resort half a mile from Joshua Tree National Park. The suit alleges that the city did not conduct a thorough review of the environmental impact, and that the 100-unit development would harm the habitats of many legally protected species. Sacramento State and Cal Expo are negotiating a partnership to redevelop Cal Expo's long-vacant horse racing grandstand into a 22,000-seat stadium, a project that would anchor both university athletics and large-scale regional events. If plans move forward, the redevelopment could break ground by 2027. (See related CP&DR coverage .)

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . Catellus Joins Philips 66 to Redevelop 440-Acre Refinery in Los Angeles Philips 66 filed redevelopment plans for its refinery in the Wilmington area of Los Angeles, anticipating the plant's closure at the end of the year. The company hired Catellus Development Corporation and Deca Companies to transform the 440-acre property. The plan would use the vast majority of the land for eight industrial buildings 55 to 155 feet in height for a total of 6.1 million square feet of space. The smaller northern section would become a new town square with retail and recreation spaces as well as publicly accessible open space with room for community gatherings. This 77-acre area would include 270,000 square feet of retail space, 67,500 square feet of food and beverage, 5,000 square feet for community offices, 60,000-square-foot indoor sports facility, two outdoor soccer fields, and 2,741 parking spots. Construction will require the approval of a general plan amendment and zone change by LA City Council, as well as an environmental cleanup. Los Angeles County Draft Sustainability Plan Envisions 159 Actions LA County's Chief Sustainability Office released a draft update of the 2019 OurCounty Sustainability Plan, available for review and public comment until August 22. Encompassing a wide array of departments, policies, and programs, the plan contains 159 action items under 12 main goals, ranging from reducing car dependency and eliminating fossil fuels to equitable land use and transparent governance. The 2025 update increases the plan's emphasis on climate resilience in response to the increasing intensity and frequency of wildfires, extreme heat, storms, and droughts. The 2021 Climate Vulnerability Report and a countywide survey guided the update's priorities. Nearly half of the 159 actions in the report are on track or have been achieved, with 64 of the 78 priority goals achieved or on track for completion by the target date. Massive Recreation & Hospitality Development Proposed for Chula Vista Bayfront Chula Vista has unveiled early plans for “Pangaea,” a 124-acre destination district planned for the city's bayfront. The proposal features numerous attractions, including a 50,000-seat stadium, multiple hotels, golf courses, a tennis complex, a water polo academy, an IMAX theater and 30,000 square feet of retail space. City leaders emphasize that community input will play a key role in shaping the project's design and accessibility. The Port recently approved a six-month exclusive negotiation period with developer McGary Group to refine the plan. Pangaea represents the second phase of the bayfront redevelopment, following the recent opening of the Gaylord Pacific Hotel. CP&DR Coverage: Bizarre Saga of Hollister's General Plan In what may be the shortest-lived adoption of a general plan in state history, the Hollister City Council approved a general plan update, along with its environmental impact report (and Climate Action Plan), in late December. A mere three months later, the city council rescinded the plan and committed $431,000 to draft a new one. Shortly after the plan's adoption in December, Campaign to Protect San Benito, a slow-growth advocacy group, launched a voter referendum drive to reverse the council's December decision. The group submitted over 3,500 signatures on January 21. An apparently sympathetic city council obviated the need for a referendum by voting to rescind the plan in early March and start over again. In doing so, the city may have exposed itself to sanctions, or lawsuits. Quick Hits & Updates A new state audit estimates that allowing most California employees to work remotely three days a week could save $225 million annually by reducing office space, including major buildings in San Francisco, Oakland, Los Angeles and Sacramento. Governor Newsom's office rejected the findings as speculative, arguing that the assumptions were unrealistic and reiterating his plan to require state workers to return four days per week starting next year. Santa Ana city leaders are considering a 17.2-acre redevelopment of the aging South Coast Plaza Village, proposing up to 1,583 homes, 80,000 square feet of retail, 300,000 square feet of office space and nearly 14 acres of parks and open space. The multi-phase project, designed with residential, commercial and office buildings of up to 25 stories, is part of a larger effort to transform southern Santa Ana into high-density, walkable urban villages alongside the nearby Related Bristol development, and could take around 20 years to complete pending city approvals. California high-speed rail officials and the Trump administration reached an agreement preserving nearly $4 billion in federal grant money while litigation over the administrations revocation of the grants plays out. The contested money has been placed in a legal trust, preventing it from being redirected by the federal government until the HSR's case against the federal government is concluded. The Ross Valley Sanitary District , in Marin County, is searching for developers to transform the its decommissioned wastewater plant in Larkspur into new housing. The 10.7-acre property would be the city's largest housing development in decades, and its first since before the COVID pandemic. The city rezoned the land to allow for increased density and a Housing Priority Overlay designation which could streamline approval and avoid public objection. The Sanitary District stated a goal of 320 houses, while City Manager Dan Schwartz said constructing over 375 was possible. In a recent study by Urban magazine, metropolitan planning organizations, including the Southern California Association of Governments, have adopted district-based systems that give Los Angeles representation roughly proportional to its share of the regional population. By contrast, in the Bay Area, San Francisco holds far more board votes per resident than surrounding counties, highlighting how representation can vary widely even within the state. Developers have submitted formal permits for a 14-story, 202-foot mixed-use tower at 1 East 4th Avenue in downtown San Mateo. The tower would include 236 apartments (36 affordable), office space, retail and parking for cars and bicycles. Designed by Arc Tec and using state density bonus provisions, it would be the city's tallest building and feature amenities along with public sidewalk improvements. The Presbytery of San Gabriel returned a half-acre parcel of land back to the Gabrielino/Tongva San Gabriel Band of Mission Indians, marking the first land transfer from a church to a recognized Indigenous tribe in California history. Tribal and Church leaders praised the transfer as an important step for historical healing and justice. The land, once part of the site of a sacred Gabrielino/Tongva village, had been rented by the tribe from the church for the past forty years. The Southern California Association of Governments awarded a $5 million grant to Housing Trust Fund Ventura County, enabling the nonprofit to establish a long-term loan program for affordable housing developers. The organization currently supports affordable housing for residents by providing short-term one to five-year loans to low-cost developers. The grant is expected to cover three to five loans in the next five years. The Fresno City Council must approve Landalue Management's proposal for an 82-unit market rate apartment development in northwest Fresno, per a ruling by a Fresno County judge . Last year the city council voted 4-3 to uphold the city planning commission's rejection of the project. The judge found the city could not prove that the project did not meet its codes and general plan but did not agree with the allegation they rejected the proposal in bad faith. The court gave the city 60 days to vote on final conditions of approval. The state has awarded $14 million to jumpstart environmental studies for a proposed 10-mile protected bikeway connecting Santa Clara and East San Jose, aimed at creating a safer, east-west route for cyclists. While advocates praise the project's safety benefits and long-term potential, concerns remain about its high cost, possible business impacts along El Camino Real and VTA's ability to fund ongoing transit operations.

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . Los Angeles Ballot Measure Could Jeopardize Olympics Projects A Los Angeles hotel workers union has proposed a ballot measure requiring voter approval for major “event centers,” including sports facilities, concert halls and hotels, which city officials warn could delay or block several 2028 Olympic venues. The initiative would apply to both permanent projects and temporary structures exceeding 50,000 square feet or 1,000 seats, potentially prompting elections for sites like the Convention Center, Venice Beach and Sepulveda Basin Recreation Area. City leaders and Olympic organizers argue the measure could jeopardize essential projects, drive events to other cities and harm the local economy. Unite Here Local 11 says the proposal responds to business efforts to overturn the city's newly approved $30 minimum wage for hotel and airport workers, and argues large developments often overburden communities without delivering proportional benefits. The measure is still under review and, if it qualifies, would likely appear on the June 2026 ballot, intensifying political tensions ahead of the Olympic Games. (See related CP&DR commentary .) Oakland Presents Residents with Three Visions for Growth The City of Oakland is soliciting feedback in Phase 2 of the city's General Plan Update, with three "Options for How We Stabilize and Grow" as different plans for how and where Oakland invests and plans for new homes, jobs, and infrastructure in the next 20 years. It's an innovative approach to public outreach. The announcement described the options as "a tool to help the community consider tradeoffs and preferences for Oakland's future". The city released a survey open until Sept 24 for constituent feedback on the plans. The "City of Neighborhoods" plan emphasizes developing 18 walkable mixed-use neighborhood centers and community gathering centers. The "Connected Corridors and Gateways" option proposes "transit-oriented development", concentrating residential and commercial growth into higher-density areas along major transit corridors where redevelopment potential is highest. The "Midtown Waterfront District" option entails a wholesale transformation of old industrial land along the Central Estuary into a new neighborhood, redeveloping old commercial and industrial properties with an emphasis on environmental sustainability and public shoreline access. (See related CPRDR coverage .) State Attempts to Keep Benicia Refinery Open California officials are attempting to find a company to purchase and continue operating for Benicia petroleum refinery near Oakland before current owner Valero Energy's planned closure of the facility in April 2026. Valero also says operations at the rest of its California plants are under review. With California drivers already paying some of the highest fuel prices in the country, the rare move reflects an effort on the state's part to prevent prices from rising even further. As of the announcement on July 23, California gas prices averaged to $4.48 per gallon, compared to a $3.15 average nationwide. Studies from UC Davis and USC found that Valero closing its plants in California could increase gas prices to $6-8 dollars per gallon as the state would be more reliant on expensive fuel imports. Industry experts say finding a buyer before the April closure could be difficult, and will require an aggressive timeline. CP&DR Legal Coverage: Housing Dispute in Fresno; Palisades Tahoe Development The City of Fresno has been ordered to overturn its decision to deny a multifamily housing project and instead approve the 82-unit project. City staff had recommended approval of the project. But the Fresno Planning Commission voted to deny it, claiming it violated the city's General Plan, and the City Coucnil upheld the Planning Commission's decision. But Fresno County Superior Court Judge Robert Whelan said that the Fresno City Council violated the Housing Accountability Act because the alleged General Plan violation was not identified within 30 days. Whelan ruled that the developer's original application should have been deemed complete and that the minor deviation from the code was not required. He also gave the city 60 days to determine whether the project qualifies for an Article 32 exemption under the California Environmental Quality Act. After many years of litigation and controversy, environmentalists have reached a legal settlement with the owners of the Palisades Tahoe ski resort that will limit the size of the resort's expansion. The settlement ends 14 years of fighting in the courts and at the Placer County Board of Supervisors over the project. The first application was filed in 2011. Placer County originally approved the project and certified a related environmental impact report in 2016. Quick Hits & Updates Solano County has indefinitely postponed an Aug. 20 General Plan summit at the request of all seven city managers, who said they lacked time to prepare and wanted a more collaborative process. The delay comes amid tensions over Suisun City and Rio Vista's exploration of annexing land owned by California Forever, a move county officials have criticized as financially driven and potentially harmful to agriculture and infrastructure planning. (See related CP&DR coverage .) Spacex has proposed a plan to launch 95 rockets a year from Vandenberg Space Force Base amidst an ongoing lawsuit against the California Coastal Commission, which previously rejected a Space plan to launch 50 rockets per year in October 2024. The CCC raised concerns about the lack of environmental and wildlife impact monitoring, as well as the company operating as a federal contractor and bypassing the permit process despite 87% of launches involving no equipment or missions for U.S. agencies. The state Senate narrowly passed SB 79, which would allow four- to nine-story apartment buildings near high-frequency transit stops to boost housing supply and public transit use. Supporters say it addresses the state's housing shortage, while opponents warn it could fuel displacement, override local planning authority and give transit agencies too much control over land use. The State Senate also passed SB 92, 28-3, with bipartisan support changing the state's density bonus housing law to allow benefits only for residential housing uses and no other elements of mixed-use projects. SB 92 is designed to prevent developers from exploiting the law to build projects with little affordable housing. The bills now go to the Assembly. Los Angeles has unveiled updated designs for its $2-billion Convention Center expansion, which would add 190,000 square feet of exhibit space, a rooftop terrace and a three-level atrium connecting the South and West Halls over Pico Boulevard. While officials hope the project will boost the city's ability to host major events, its timeline is complicated by funding challenges and the 2028 Olympics, with construction potentially pausing during the Games and resuming for completion in 2029. The Pacific Legal Foundation is suing East Palo Alto over the city's Inclusionary Housing Ordinance. The ordinance requires residential projects with fewer than five units to designate one unit as affordable housing or pay a fee. The PLF is representing a family that wants to build an ADU on a lot neighboring their house, but would have to pay a $54,000 fee to do so without renting it out as affordable housing. A group of community members used a loophole in state laws to appeal against the proposed construction of an affordable housing complex for homeless people in San Francisco, despite lawmakers attempting to hasten construction. The complex, to be constructed by Mission Housing, would place 350 new homes and on-site social services above the 16th Street Mission BART Station. The neighbors' appeal letter raised concerns that the complex would excacerbate issues of homelessness, drug use, and safety in the area. A group of community members used a loophole in state laws to appeal against the proposed construction of an affordable housing complex for homeless people in San Francisco, despite lawmakers attempting to hasten construction. The complex, to be constructed by Mission Housing, would place 350 new homes and on-site social services above the 16th Street Mission BART Station. The neighbors' appeal letter raised concerns that the complex would excacerbate issues of homelessness, drug use, and safety in the area. A group of community members used a loophole in state laws to appeal against the proposed construction of an affordable housing complex for homeless people in San Francisco, despite lawmakers attempting to hasten construction. The complex, to be constructed by Mission Housing, would place 350 new homes and on-site social services above the 16th Street Mission BART Station. The neighbors' appeal letter raised concerns that the complex would excacerbate issues of homelessness, drug use, and safety in the area. A proposal for a train station at Camp Pendleton has resurfaced in SANDAG's 2025 regional transportation plan, aiming to extend Coaster service beyond Oceanside to serve tens of thousands of military personnel and civilians on base. While the idea received early Pentagon support and would improve access to the region's largest employer, the project has stalled for over a decade due to funding gaps, security concerns and the challenges of building on restricted federal land.

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . State to Suspend SB 9 "Duplex Law" Provisions for L.A. County Fire Recovery Under pressure from Los Angeles-area elected officials, Gov. Newsom issued an executive order allowing Pacific Palisades and parts of Malibu and Altadena affected by wildfires to be exempt from development under CA Senate Bill 9. The 2021 law allows property owners to build up to four units on lots previously zoned for single-family homes. The order applies to areas that burned in the Palisades and Eaton fires which are designated as "very high fire hazard severity zones" by the CA Deptartment of Forestry and Fire Protection. The announcement follows concerns about increasing density beyond the capabilities of existing infrastructure and fire evacuation routes, with City Councilmember Traci Park and L.A. Mayor Karen Bass both calling for Newsom to suspend SB 9 in fire-affected areas. Jarvis Assoc. Pushes Ballot Initiative to Reinforce Prop 13, Limit Transfer Taxes The Howard Jarvis Taxpayers Association is proposing a ballot measure called the "Save Prop 13 Act of 2026" that would reinforce provisions of 1978's Prop 13, which limits property tax increases. It would also roll back real estate transfer taxes, like Los Angeles' Measure ULA. The move is partially a response to court rulings like the 2017 California Cannabis Coalition v. City of Upland decision, which opened the door for special interest groups to pass tax initiatives with only a simple majority, bypassing the original two-thirds threshold. Howard Jarvis proposed Save Prop. 13 Act hoping to re-instill voter-approved taxpayer protections. The proposed ballot initiative would also roll back real estate transfer taxes, unless re-approved by a 2/3 voter majority, and prevent charter cities from enacting similar levies. Save Prop. 13 supporters say it's a critical step to uphold the intent of Prop. 13 and stop what they call “equity theft” from California property owners, while critics say Measure ULA is still redeemable and actionable in Los Angeles. (See related CP&DR coverage .) Report Details Uses of $632 Million in Greenhouse Gas Funds A progress report from the Air Resources Board indicates that California's Community Air Protection Program is delivering cleaner air to over four million residents in the state's most polluted areas. Since 2017, the program has funded more than 9,000 local projects with $632 million from the state's Cap-and-Invest program, prioritizing disadvantaged communities. Projects range from replacing polluting equipment to reducing school-area dust and launching the country's first electric tugboat, collectively cutting emissions equivalent to millions of cars and trucks. A recent expansion, Blueprint 2.0, is bringing the program to 64 high-pollution communities with new grants, enforcement strategies and mobile air monitoring. Newsom is pushing to extend Cap-and-Invest, calling it essential to protecting public health and combating federal rollbacks on clean air. CP&DR Coverage: New Approaches to VMT Mitigation Ever since SB 743 switched CEQA's emphasis on traffic mitigation from level of service (congestion) to VMT (the overall amount of driving), lead agencies - including not just local governments but transportation agencies - have been vexed about exactly how to make this happen. AB 130 sets up a formal process allowing fees to pay for infill housing as mitigation for increased VMT. But a lot of questions still remain - and the Legislature's approach to this issue may create yet another CEQA quagmire, at least temporarily.Governor's Office of Land Use and Climate Innovation must release its initial guidance within one year and adopt its final guidance by 2028. In the meantime, there's likely to be a lot of confusion over how much infill housing is adequate mitigation for VMT (which lead agencies will have to calculate and prove on their own, at least for now), when and how contributions to the state's fund will be allowed, and whether other forms of VMT mitigation will also be required. Quick Hits & Updates The U.S. EPA has recognized Fresno's Saint Rest + Food to Share Hub as a successful brownfields redevelopment project. The EPA's Brownfields program provides technical assistance and supports cleanup and planning for communities repurposing properties contaminated with hazardous substances. The Share Hub was previously a 6,800 square foot unused industrial complex suffering from contamination and structural decline, but was repurposed as a community food hub. With San Francisco Mayor Daniel Lurie's Family Zoning Plan up for review by city lawmakers in the coming months, the pro-housing group GrowSF conducted a poll finding that of the 35% of respondents who had heard of the plan, 65%supported higher density housing, with just 23% in opposition. Lori Brooke, the co-founder of Neighborhoods United SF, a group strongly opposed to Lurie's plan, said the poll did not reflect resident's feelings about other possibilities, and said the Mayor's proposal would promote unaffordable luxury appartments and displace existing residents. The U.S. Senate Banking Committee has advanced the bipartisan "ROAD to Housing Act of 2025," a sweeping package that claims to tackle housing supply challenges by incentivizing local reforms, supporting ADU and manufactured housing construction and updating federal regulations to reduce development barriers. The Alameda County Board of Supervisors approved $750,000 in redress funds for former residents displaced from Russel City when it was seized by Alameda County and the City of Hayward and bulldozed in the early 1960s. The neighborhood of around 1,400 people was a cultural and residential center hub for Black and Latino families following WWII, and was seized by the city through eminent domain to create an industrial park. The City of Hayward pledged an additional $250,000 dollars to the reparations, bringing the total to be paid to $1 million. Public access plans were released for the Frank and Joan Randall Preserve, a 376-acre coastal area between Newport Beach and Costa Mesa. Formerly known as Banning Ranch and the site of an oil field, the land was purchased by conservation groups for nearly $100 million in 2022, and is going to be permanently protected. The plans for the preserve emphasize public access, resource management, coastal resilience and tribal access and engagement. The LA County Regional Park and Open Space District will issue $58 million in competitive grants, the largest in its history, to convert neglected spaces into parks, trails, and green infrastructure. At least 30% of the funds are reserved for communities designated as High or Very High Park Need, following the District's goal of providing every LA resident access to green spaces in their community. The program is intended for "shovel-ready, climate-smart, and community-rooted" projects. Sunset Magazine's former headquarters in Menlo Park has received 617 letters in support of, and 12 against, it's potential placement on the National Register of Historic Places, after a state commission voted 6-0 in May recommending the site be designated as historically significant. The designation would pose a roadblock to the development group N17, which has proposed to build 3 towers up to 31 stories tall, including 665 housing units with 133 set as affordable, 300,000 square feet of office space, a 130-room hotel, nearly 5 acres of parks, and other commericial spaces. California's population grew for the second year in a row in 2024, nearing its pre-pandemic peak thanks to gains in major cities like Bakersfield, San Diego and Los Angeles, despite continued net migration losses to other states. Growth was driven largely by natural increase and international immigration, while housing construction remained modest, with Accessory Dwelling Units (ADUs) playing an increasingly significant role. California's population grew for the second year in a row in 2024, nearing its pre-pandemic peak thanks to gains in major cities like Bakersfield, San Diego and Los Angeles, despite continued net migration losses to other states. Growth was driven largely by natural increase and international immigration, while housing construction remained modest, with Accessory Dwelling Units (ADUs) playing an increasingly significant role. Developer Hines has proposed a 1,225-foot skyscraper at 77 Beale Street that would become the tallest building on the West Coast, surpassing Salesforce Tower by over 150 feet. The project includes 1.6 million square feet of office space, retail, restaurants and a new public garden, along with the conversion of a smaller office building into 120 housing units. It also calls for the restoration of two historic buildings on the block and replaces a previous plan for an 808-unit residential tower. City officials have praised the project as a bold investment in San Francisco's recovery, though it arrives amid high office vacancy rates and broader efforts to encourage office-to-housing conversions.