Facts

The San Fernando Redevelopment Agency (Agency) entered into an exclusive negotiation agreement (ENA) with a developer to negotiate construction of a mixed use development on numerous surface parking lots owned by the Agency and the City of Fernando. The ENA did not require either party to enter into an agreement, but did require the Agency to produce an environmental impact report (EIR) with the developer responsible for 75 percent of the cost for the report. After a delay in preparing the EIR, the ENA expired and the Agency chose not to reinstate it.

PLAINTIFF'S CONTENTIONS:
The developer filed suit against the Agency alleging that the Agency was influenced by a competing developer not to reinstate the project.

DEFENDANT'S CONTENTIONS:
The Agency contended that it did not breach the ENA, nor was it obligated to deliver an EIR by a certain date. The Agency further argued that it was not required to enter into a development agreement, and it had reasonable grounds for choosing not to revive the ENA.

Damages

The developer sought $1.1 million in damages for the amount spent on the EIR, as well as all other expenses related to planning and promotion of the project.

Result

The court rendered a verdict for the defense.