Pleasanton To Defend Itself Against Latest Oak Grove Lawsuit

The City of Pleasanton will fight a lawsuit by Oak Grove property owners claiming that a 51-home project should move forward despite voters rejecting the plan in a June 8 referendum.

Councilmembers unanimously agreed to respond to the lawsuit during a closed meeting session Tuesday night.

The City Council's decision is the latest in the years-long Oak Grove saga that has included a referendum, lawsuits and marathon City Council meetings. This lawsuit also comes as the city works through a nearly $2 million settlement agreement in the legal dispute over its housing cap.

City Attorney Jonathan Lowell said he will be working with the law firm Meyers Nave to formulate a response to lawsuit within the next month.

The suit's claims include:

• That the "city has a contractual duty to protect the Lins' vested rights" according to the agreement.
• The agreement is a "binding contract that becomes effective 30-days" after adoption of the ordinance.
• That the June referendum "cannot reach" the actual development agreement.
• Even with the referendum's "poison pill language," the development agreement should "remain in full force and effect." This argument refers to referendum language in Ordinance No. 1961, the Planned Unit Development document governing how the property is zoned and providing specific guidelines for homes. Another ordinance, No. 1962, includes approval of a development agreement between the city and Oak Grove owners. One section in this agreement, known as the poison pill language, links the two ordinances, saying that if No. 1961 is rejected through a referendum, then No. 1962 is void.

Essentially, the lawsuit argues that despite the June referendum and its triggering of the poison pill language, the city had already entered into an agreement with the owners. Therefore, the project should move forward.

In addition to breach of contract claims, the Lins are also asking the court for injunctive relief, which would require the city to take specific action to abide by the development agreement.

"We have to defend," said Mayor Jennifer Hosterman, who supported the Oak Grove plan, regarding the Council's decision.

Karla Brown, one of the leaders in the campaign against the Oak Grove project, congratulated the council on voting to defend the city against the lawsuit.

Lowell said there are no estimates for how much the lawsuit will cost the city.

"It really depends on where the lawsuit goes," he said. "There are so many variables."