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the City failed to carry out a mandatory duty, under Program 19.1 of the 2003 <br /> Housing Element and under the Least Cost Zoning Law, to rezone sufficient <br /> properties to high density residential (e.g., 30 units /acre) in order to accommodate <br /> the remaining housing units required for the Third Planning Period. Although in <br /> October 2009, the City Council rezoned properties in the Hacienda Business Park <br /> to meet this obligation, the Court agreed with Urban Habitat that this rezoning was <br /> "illusory," and did not satisfy Program 19.1 or State law because it did not actually <br /> allow development to occur until after completion of the Hacienda PUD <br /> amendment process that is anticipated to last at least one year. <br /> The Court's order invalidates the Cap in its entirety. It also directs the City to: <br /> "cease and desist" from enforcing, administering and /or implementing the Cap. <br /> remove references to the Cap from its General Plan. <br /> affect sufficient, "non- illusory" rezonings to accommodate the "unmet" RHNA (521 <br /> units) for the Third Planning Period. <br /> cease issuing any non residential building and all related permits for construction <br /> or development until it brings its General Plan into compliance. <br /> To fully inform the public of the Court decision, and solicit complete public involvement, <br /> the City Council held public meetings on April 6 and 20 during which potential responses <br /> to the Court ruling were discussed (The agenda reports for those meetings are included <br /> as Attachment 3). While a range of comments were presented to the Council, many <br /> members of the public expressed an interest in resolving all legal matters as <br /> expeditiously as possible. In addition, many members of the public stated their concern <br /> over continued legal appeals /challenges and the expenses stemming from continuing this <br /> legal dispute. In response, and in view of information provided by staff and legal counsel, <br /> the City Council decided to pursue a settlement of the entire lawsuit and related second <br /> lawsuit and through it discussions, five general goals were identified upon which <br /> settlement options were evaluated. The five goals are as follows: <br /> Retain local control and flexibility to the maximum extent possible relative to the <br /> Hacienda rezonings and development process, including retention of a meaningful role <br /> for the Hacienda Task Force and public input; <br /> Restore City's non residential permitting authority as quickly as possible; <br /> Retain control over the City Housing Element update process to assure it reflects both <br /> State law and the interests of the community; <br /> Reach a global settlement that addresses the Court's entire March 12, 2010 ruling as <br /> well as other outstanding litigation; <br /> Minimize financial impacts of the litigation. <br /> To facilitate the negotiations, the City Council appointed Mayor Hosterman and <br /> Councilmember McGovern to serve on a negotiating team, including the City Manager, <br /> Page 3 of 9 <br />