RECENT CALIFORNIA DECISIONS

February 2007

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First District Court Holds that Public Resources Code 21166 Applies to Second Phase of Project that Included ‘Big Box’ Store—But Overturns City’s Decision to Forego Further Environmental Review
American Canyon Community United for Responsible Growth v. City of American Canyon, ___Cal.App.4th___

In a decision certified for partial publication on December 18, 2006, the First District Court of Appeal held that the City of American Canyon violated the California Environmental Quality Act (CEQA) when it approved the second phase of a project that included construction of a Wal-Mart Supercenter without first requiring supplemental environmental review pursuant to Public Resources Code § 21166. The court found that the city’s determination that the project changes would not substantially increase the project’s impact on traffic was not supported by substantial evidence. Furthermore, the city failed to proceed in a manner required by law when it refused to consider the extraterritorial effects of the proposed “Supercenter,” specifically the urban decay effects that might result from other store closures in neighboring cities. The appellate court reversed and remanded the case to the trial court with directions to issue a writ of mandate to comply with § 21166 and to determine whether to stay further construction of the project pending full compliance with CEQA.