Facts

Murtaza Baxamusa and the San Diego County Building & Construction Trades Council, AFL-CIO filed suit against the City of San Diego and Civic San Diego, San Diego's downtown permit agency, in relation to Civic San Diego's operation as the City's planning and permit agent. Baxamusa had previously been a board member of Civic San Diego.

PETITIONER'S CONTENTIONS: Petitioners contended that Civic San Diego was not providing effective oversight of planning and permits for the City and needed to be stripped of its power for improvements to be seen. Petitioners alleged that Civic San Diego favored developers that had connections or relationships with board members over those that did not. Petitioners claimed that the City unlawfully granted permit authority to Civic San Diego, and noted that the agency was experiencing whistleblower allegations of poor oversight, a lack of internal controls, and troubling conflicts of interest.

RESPONDENT'S CONTENTIONS: Respondents denied the allegations that their actions were unlawful and contended Civic San Diego benefitted the City. Respondents claimed that the City lawfully formed Civic San Diego after redevelopment agencies were dissolved across California in 2012. Respondents argued that Civic San Diego allowed projects to be completed more efficiently in terms of time and finances, and provided developers with a consistency in approving permits that was appreciated.

Result

The parties reached a settlement agreement under which respondents agreed that Civic San Diego would no longer have authority to operate as an agent for the City for planning, permitting, and non-successor project management functions. Under the agreement, Civic San Diego remained active, but its municipal functions were strictly limited to supporting the City as the Successor Agency and Housing Successor Agency, with those functions to wind down within 5 years, with one 5-year option to renew. Civic San Diego also agreed to end administration over the City's downtown parking district. The City of San Diego agreed to pay $700,000 in attorney fees and costs.