Real Estate and Development

How Cities Can Use Their Existing Land to Achieve Economic Development Goals and Upgrade Their City Facilities

Event Information


Tuesday, April 26 - Thursday, April 28


The South San Francisco Conference Center
255 S Airport Blvd, South San Francisco 94080


A Case Study on the City of La Habra and City Ventures Public/Private Partnership on developing a new civic center and residential development

Sponsored By:

California Association for Local Economic Development (CALED)


Constitutional Default Interest Rate of 7% Rather Than 10% Default for Breach of Contract, Applies to Prejudgment Interest on a Mechanic's Lien as Applied to Noncontracting, Innocent Owners

October 28, 2014 | Bulletin No. 1153207.1

Addressing an issue of first impression, the Fourth Appellate District has determined that in a mechanic's lien foreclosure action against an innocent property owner who did not contract with the mechanic's lien claimant, the proper prejudgment default interest rate is seven percent (7%) for "things in action" under Article XV, section 1, of the California Constitution not the ten percent (10%) prejudgment default interest rate for breach of contract under Civil Code section 3289.

Documentary Transfer Tax May Be Imposed When A Change of Ownership Occurs For Property Tax Purposes Due To A Transfer Of Ownership Interests In An Entity

October 13, 2014 | Bulletin No. 1149913.1

The Revenue and Taxation Code permits the imposition of a documentary transfer tax when there is "realty sold."  The Code also requires entities to report a "change in ownership" of legal entities.  In 926 North Ardmore Avenue, LLC v. County of Los Angeles (September 22, 2014, B248536) --- Cal.App. 4th ---- [2014 Daily Journal D.A.R. 13,093], the Court of Appeal held that "realty" was "sold" when a limited liability company reported a "change in ownership" if its parent partnership and the limited liability company owned real property.

Bid Protests: The Good, the Bad and the Ugly

Event Information


Tuesday, September 9, 2014


12:00 - 1:00 p.m.


Lucca Restaurant
1615 J Street
Sacramento, CA


1 hour

Sponsored By:

Sacramento County Bar Association, Administrative Law & Public Law Joint Luncheon


Garret is one of three presenters


Please visit the SCBA website for more information and to register.



Hotel Reassessment Invalid When LLC Owning Hotel Sells 100 Percent Membership Interest But No Person Or Legal Entity Obtains More Than 50 percent Interest In The LLC

July 24, 2014 | Bulletin No. 1130426.1

The rule set out in California Code of Regulations Title 18 Section 462.180(d)(1)(B) provides there is a change in the ownership of real property owned by an LLC, "when any corporation, partnership, LLC, or any person… obtain through multi–tiering, reorganization, or transfer of direct or indirect ownership of more than 50 percent of the total interest in the LLC's capital and profits." Recently, in Ocean Avenue LLC v. County of Los Angeles, (Cal. Ct. App. 2014) 173 Cal. Rptr. 3d 445, the court invalidated Los Angeles County's reassessment of Fairmont Miramar Hotel ("Miramar Hotel") because no single person obtained a majority interest from the sale of Ocean Avenue LLC ("Ocean Avenue"), the hotel's parent company.

Court of Appeal Ameliorates (a Bit) the "Harshness" of Business and Professions Code Section 7031

July 7, 2014 | Bulletin No. 1126480.1

California courts have variously described Business and Professions Code section 7031 as “draconian,” “harsh[ ]“ and “[u]njust[ ],” but nonetheless enforceable.

Section 7031 both (1) prohibits unlicensed or improperly licensed contractors from suing to recover compensation for construction work requiring a license, and (2) permits property owners to sue such contractors for disgorgement of all compensation paid for such work.  The strict enforcement of Section 7031 has been based on the view by the courts that despite Section 7031′s harsh consequences it serves the public policy purpose of ensuring that contractors meet the minimum qualifications necessary for licensure.

Tenant Opposition May Justify Rejection of Mobilehome Park Conversion Bid

June 2, 2014 | Bulletin No. 1110169.1

If a mobilehome park owner proposes to convert the park from a tenant community into a resident-owned community, then pursuant to state law, a certain proportion of the residents in the park must give consent via tenant survey. In 218 Properties v. City of Carson (May 14, 2014, B241969) --- Cal.App. 4th --- [2014 Daily Journal D.A.R. 6032], a California Court of Appeal held that overwhelming tenant opposition in the survey response can support a city council’s denial of a conversion, but a tepid resident response does not support the denial of a conversion.

Court Of Appeal Finds Lender Is Not Entitled To Recover Portion Of Developer's Future Judgment In Connection With Property Damage From Wildfires

May 27, 2014 | Bulletin No. 1108425.1

In Thoryk v. San Diego Gas & Electric Co. (2014) 225 Cal.App.4th 386, Thoryk owned a large piece of land ("Land") in San Diego County.  Encumbering the Land was a first deed of trust in favor of PFI Realty ("PFI") and a second deed of trust in favor of Highland Valley Investors ("Highland").  In 2007, Thoryk's land was damaged by a wildfire purportedly caused by San Diego Gas & Electric and other alleged third party tortfeasors ("Wildfire Defendants").  After the fire, Thoryk defaulted on his loan with Highland and Highland nonjudicially foreclosed on the Land.  Highland held title to the Land for a short period of time, then PFI nonjudicially foreclosed its first deed of trust and took title to the Land.

City Not Liable for Flood Damage to Private Property After Court Determines City Acted Reasonably

May 5, 2014 | Bulletin No. 1103675.1

In Biron v. City of Redding (April 30, 2014, C071094) --- Cal.App. 4th ----, the Court of Appeal declined to hold the City of Redding ("City") liable for flood damages caused to private property owned by Philip Biron, et al. ("Biron").  Biron sued the City based upon inverse condemnation and dangerous condition of public property theories after an extraordinary storm caused water to back-up from the City's storm drainage system onto his property.  Upon review, the court determined that any liability was governed by a "rule of reasonableness," and the City was not liable since its actions were reasonable.

Developer's Subdivision Project for County Deemed Private Work of Improvement for Purposes of Subcontractor's Claim, Extending Subcontractor's Statute of Limitation

April 23, 2014 | Bulletin No. 1082230.1

The California Court of Appeal recently held that where a developer hires a subcontractor to perform work in connection with a subdivision agreement with a public entity, the project may be considered a private work of improvement for purposes of interpreting the applicable California mechanic's lien statutes.  As a result, those provisions applicable to private works may apply, including the longer statute of limitation to enforce written contracts for work performed at the project.  (R&R Pipeline, Inc. v. Bond Safeguard Ins. Co. (2014) 223 Cal.App.4th 438).

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