Calabasas Sued By West Village Developer For $58M

CALABASAS, CA — The developer of the failed West Village development is suing the city of Calabasas, arguing that the city “abused” its zoning powers when the City Council voted unanimously against the project last month.

The New Home Company is seeking $58 million in damages, and permission from the court to continue with the development against the wishes of the city, according to documents obtained by “The Acorn.” Much of the $58 million includes money that New Home spent over seven years trying to get the project off the ground.

Their lawsuit, filed June 7 in Los Angeles Superior Court, alleges that the city violated state law and its general plan in rejecting the extensive development.

The project would have added 180 new condo units in fifteen three-story apartment buildings, a 5,867 square foot retail center, and 66 acres of permanent open space at the intersection of Agoura and Las Virgenes roads. The council voted against the project on the grounds that it did not adequately address fire safety and traffic concerns, and would violate existing open space ordinances requiring two-thirds voter approval to build on open spaces. Based on reams of emails and hours of public comment, the project was almost universally opposed by Calabasas residents.

The complaint alleged that the city was looking for any excuse not to develop the property. “The rejection under the guise of preserving open space and stopping development in a high-risk fire severity zone was a mere pretext,” said the complaint, as reported by The Acorn. “In fact, the sole purpose of the decision was to deny the project by any means necessary, even though the project was specifically called for in the general plan.”

The suit alleged that the city wanted to “permanently single out the property and render it undevelopable.”

Mayor James Bozajian told The Acorn that the city’s general plan prohibits non-open space uses in area designated open space, and the construction of concrete drainage ditches violated the plan.

“I just cannot in any way reconcile this as being the proper use of open space," Councilmember Peter Kraut said during the May meeting when explaining his decision to vote against the project. "How could we possibly consider this parcel after we put drainage ditches and engineer slopes into it, how could we possibly consider that open space? I can't get there, because whether it was a clustering agreement, or it was the 2008 General Plan, a deal was made, and the deal was to concentrate development inside the triangular parcel in exchange for the open space around it."

Additionally, voter initiatives Measure D and Measure O require two-thirds of voters to approve any new building on open space.

City insurance policies do not apply to this lawsuit, according to The Acorn. If the city loses, taxpayers are on the hook for the $58 million.

The council has until July 8 to respond to the complaint, and will discuss it at their June 23 meeting.