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Despite a budget deficit so large that it triggered the first gubernatorial recall in California history, the administration of Gov. Gray Davis has shown scant interest in stimulating the economy. But with the chaos in Sacramento – and the fact that elected officials have a smaller and smaller role to play in actually shaping the state’s budget – it may be that no California governor can devise an effective economic development strategy.

In light of a similar ruling by the California Supreme Court in a case from San Diego, the First District Court of Appeal has ordered Cal State East Bay to revisit the question of offsite traffic mitigation in the environmental impact report for its long-range master plan. As the Supreme Court did in San Diego, the court ruled that Cal State cannot simply declare mitigations infeasible unless the state legislature appropriates funds specifically for that purpose.

The Fourth District Court of Appeal has blocked the City of Anaheim's attempt to build a surface parking lot on a property adjacent to two new hotels rather than a parking structure, as was implied in a conditional use permit the city approved in 1999.

The division of one parcel into four noncontiguous pieces via eminent domain does not automatically create four legal parcels and permit the landowner to avoid the Subdivision Map Act, the First District Court of Appeal has ruled.

The Second District Court of Appeal has ruled that the City of Los Angeles's ban on billboards advertising offsite businesses is not content-based and therefore not subject to the "strict scrutiny" test under free-speech clauses in either the U.S. or California constitution.

Overturning a trial judge, the Fourth District Court of Appeal has ruled that the private water company Cadiz Inc. and two public agencies did not violate the California Environmental Quality Act in moving forward a groundwater pumping and restoration project in San Bernardino County.

An outdoor advertising company that erected a billboard without permits in the City of Corona was not discriminated against and did not have its constitutional rights violated by the city's action, the Fourth District Court of Appeal has ruled.

Under Proposition 22, neither the state Board of Equalization nor a county auditor-controller can constitutionally withhold tax funds as part of a redevelopment dispute, as called for by AB 1484, the 2012 bill that cleaned up the redevelopment wind-down, the Third District Court of Appeal has ruled.

San Bernardino County is not entitled to the return of $9 million in loan principal to the former county redevelopment agency, even though the funds were not tax-increment revenues and had come from the county's general fund, the Third District Court of Appeal ruled Monday.

The right combination of zoning changes and decreased parking requirements can make infill projects feasible in some of the state’s most urban settings. That is the conclusion of Solimar Research Group, which continues to investigate land use options for crowded urban areas. Recently, we explored how regulatory changes affect the financial feasibility of infill projects, and then applied our models to the land use surrounding a major rail extension in Los Angeles. The results should prove interesting to any agency that is approaching the issue of rapid growth with a strategy of high density, transit-oriented development. We sought to calculate the degree to which changes in parking and density policy, as well to zoning, will shrink the notoriously stubborn gap between planning ideal and development reality. Our comprehensive pro-forma analyses revealed that while parking policy affects feasibility more than density allowance, reliance on one or the other is politically unrealistic. A combined strategy is essential. On the other hand, key zone changes may prove a powerful, singular tool in getting infill development off the ground. We further explored how these proposed policy strategies would play out in the very real built environment of the planned Exposition Line extension of the Los Angeles Metro Rail system. Our parcel-by-parcel GIS analysis of infill opportunities surrounding proposed rail stations highlights the infill potential of underutilized industrial land along transit corridors. Grounded Analyses To ensure the “real-time” relevancy of our calculations, we consulted local developers to identify actual development models. Five infill prototypes were selected, and examples of each — from an 8-10 unit townhouse to a 100-200 unit mixed-use project — are currently under construction. We then applied an “as is” pro-forma feasibility model to each, one based on current zoning standards and the industry’s minimum expected 15% net margin. With our feasibility baselines established, we analyzed the fiscal impact of incremental increases or decreases in density and parking requirements. The selection of these two policies as regulatory variables was straightforward: one is a powerful determinant of gross revenue, the other a huge booster of project costs. We also calculated the impact on each prototype of building in either industrial or commercial zones. Combined Regulation Our pro-forma for development prototype 2A exemplifies the political near-impossibility of relying on a single regulation to promote infill in Los Angeles. Prototype 2A is a small, mixed-use project of 54 units, with a current feasibility gap of $1.2 million. A 50% density bonus reduces that gap to only $900,000; a 100% density bonus to only $700,000. While feasibility may arrive with 150% bonus, attendant density, height and FAR changes to the C-1 and C-M zones in which this project would be built are unlikely. Construction of prototype 2A also is unlikely without a change in parking requirements. We found that only a 50% decrease in the number of required parking spaces reduces the $1.2 million gap down to $400,000. That is still too much. But a synergy of more modest changes produces a viable alternative. Our study indicates that a 75% density bonus combined with a 25-50% parking reduction provide enough incentive for developers to pursue projects of this size. This outcome repeated itself in our calculations for prototype developments of various sizes. EXPO Application After calculating needed regulatory and zoning incentives, we took our prototypes to a built environment of high infill potential. The Exposition Line is scheduled for completion in 2010. It will serve an almost entirely developed area. We drew circular study zones around the planned La Brea, La Cienega, Crenshaw, Western and Vermont stations. Our GIS “screening” of parcels around the La Cienega stop reveals a repeated pattern of industrial under-use that, as our pro-formas indicate, should be targeted for infill. Nearly 25% of the half-mile area surrounding the station is zoned industrial/light manufacturing, much of that characterized by large parcels. In addition, many parcels are underutilized and ideal for infill redevelopment. Finally, we identified parcels along the La Cienega Boulevard commercial strip that could be assembled into spaces that would increase the feasibility of projects the scale of Prototype 2A. These projects become even more realistic with the regulatory changes identified above. Solimar’s complete fiscal and land-use analysis of infill potential along the Expo line is available at: http://www.solimar.org/pdfs/Expo_Final_3-30.pdf .