Fidelity Mortgage Sues Pasadena over San Rafael Development

Fidelity Mortgage Lenders, Inc., owner of ten residential lots in Tract 8129 in the San Rafael area of the City of Pasadena, filed a lawsuit against the City over what it claims is “a pattern and practice by the City of thwarting development in the San Rafael area. ”

The lawsuit alleges that the property is vested through the recording of Tract 8129 for development with ten residences and is therefore exempt from the City’s Hillside Ordinance and any impact fees associated with the approval of a subdivision.

The lawsuit also alleges that the City misrepresented the potential of the property for development and allowed the roads in the subdivision to lapse into an impassable and degraded state, the suit claims, with the goal of discouraging development and suppressing property values.

Some locals have vigorously opposed the development of any vested lots in the area and have fought to keep the remaining undeveloped lots of the 1928 subdivision as open space.

The City already defended against a similar lawsuit filed by the owner of 37 lots in Tract 8129 in 2004.  The City settled that action by agreeing to have the property purchased for $6.5 million, of which the City provided $2 million from its general fund.

In conjunction with the approval of Tract 8129, the City accepted the obligation to improve Weirfield and Bushwick Drives.

Fidelity says it seeks to have the City fulfill its obligation to complete the construction of those roads throughout Tract 8129, including those segments that lie in the Annandale Canyon Open Space Benefit Assessment District.  Michael Shonafelt of the law firm of Newmeyer & Dillion, LLP is representing Fidelity Mortgage Lenders, Inc.