Schools Ordered to Let Housing Project Proceed

Two Santa Clarita Valley school districts must issue building certificates that they withheld from a developer in a dispute over taxes earmarked for new schools, a Los Angeles Superior Court judge has ruled.

Judge Miriam A. Vogel on Wednesday ordered the William S. Hart Union High School District and the Saugus Union Elementary School District to give M.J. Brock & Sons certificates of compliance so it can begin construction of a 121-unit low-income housing project in the Haskell Canyon area.

Los Angeles County cannot issue building permits for the project until it receives certificates of compliance from the school districts.

Vogel also instructed the firm to pay the district about $549,000 in taxes for school construction. Robert Garcin, general counsel for M.J. Brock, said the firm already has paid the disputed taxes but is undecided whether it will file suit to recover the money.

The districts “forced me” to file the motion asking the court to order the schools to issue the certificates, Garcin said. “I can’t understand why the district didn’t give us the certificates when we paid the money,” he added.

Clyde Smyth, Hart superintendent, said the districts withheld the certificates because the developer paid the money--$301,485 for Hart and $247,648--under protest March 29 “pending a judicial determination of the rights of both parties.”

“That certainly sounds like they’re going to sue to me,” he said.

Trustees of both districts voted earlier this month to withhold the certificates until Brock agreed to pay the money without the threat of a lawsuit. In separate checks, the company also paid the districts, without protest, a total of $256,561 representing $1.53 per square foot in school building fees, which are mandated by state law, Garcin said.

School officials said they withheld the building certificates because by paying the money under protest, the company reneged on an agreement signed in September. In that contract, Brock pledged to pay voter-approved taxes on the project.

Taxes on developers in excess of the $1.53 per square foot were approved by voters in the Santa Clarita Valley’s five school districts in June, 1987. But in response to a challenge by the California Building Industry Assn., the state Court of Appeal ruled the taxes unconstitutional in February.

Regardless of the appellate court ruling, Smyth said, the developer should abide by the agreement and pay all the taxes without bringing suit to recover them.

“If you have entered into a contract in good faith, then you live with that contract,” he said.

But Garcin said the agreement could be void because private contracts cannot be used to enforce unconstitutional laws.

Smyth noted that even Los Angeles County Supervisor Mike Antonovich sent a letter of concern to the company when it appeared the developer might be backing out of the agreement.

School officials said that the voter-approved taxes or developer agreements, such as the one signed with Brock in September, are the only way available to raise money to build 30 schools needed in the valley by 2010. The $1.53 per square foot fees will not generate nearly enough funds, Smyth said.