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Advantages: <br /> Were the City to prevail, the housing cap and rezonings could be retained. <br /> If litigation prevailed, the housing cap could be retained in its current or amended <br /> capacity <br /> Disadvantages: <br /> The overall ability to appeal or to continue litigation is limited due to the complexities <br /> of the case. <br /> Additional litigation will be expensive, particularly if the plaintiffs prevail and are <br /> awarded legal fees. <br /> There is no assurance the City will prevail in court. <br /> City permitting authority for non residential projects could be withheld until resolution <br /> of the litigation. <br /> A resolution of this matter could take years <br /> Option 2- Comply with the Court's order <br /> With this option, there are a number of potential impacts depending on how compliance is <br /> defined. As an example, due to the complexity of the Court's order, the City and the <br /> plaintiffs may have divergent opinions related to interpreting the Court's ruling. As a <br /> result, while additional litigation would not be the goal of this option, it is possible. The <br /> City Council would consult with staff and legal counsel to identify the actions required to <br /> comply, which can encompass a narrow or broad interpretation. At a minimum, these <br /> would include some changes to the Hacienda rezonings and entitlement processes, <br /> elimination of the Housing Cap in its current form, and changes to the City's growth <br /> management program. <br /> Advantages: <br /> Potentially resolves litigation, particularly if a broad interpretation of compliance is <br /> approved by the Council. <br /> Minimizes additional legal expenses. <br /> Could allow the City to regain its permitting authority. <br /> Would facilitate the preparation of the City Housing Element. <br /> Disadvantages: <br /> Were the City Council to comply narrowly with the Court's order, it may result in <br /> additional litigation. <br /> If further litigation were to result, the City's permitting authority for non residential <br /> projects could remain enjoined by the Court. <br /> The City would be required to eliminate the Housing Cap and lose some flexibility <br /> related to the Hacienda developments. <br /> Option 3 Negotiate a settlement with the petitioner and intervener in an attempt to <br /> resolve all legal issues. <br /> The City Council has been engaging in discussion with the petitioner and intervener in an <br /> attempt to craft a global settlement that resolves all matters, including the potential <br /> payment of the other side's legal fees. <br /> Page 10 of 11 <br />