Vista Redevelopment Challenge Loses : Courts: Appellate court rejects a former councilman’s lawsuit to block the city’s redevelopment plans for downtown.

A lawsuit challenging the legality of Vista’s redevelopment plan has been rejected by the 4th District Court of Appeal, the most significant boost yet to the city’s hopes to renovate its struggling downtown business section and improve traffic at Sycamore Drive and California 78.

The lawsuit was filed in 1987 by Lloyd von Haden, a former maverick member of the City Council who said he would ask the appellate court to rehear the matter but was unsure whether he would appeal his loss to the state Supreme Court.

Vista city officials say they hope they can finally get to speed on their 4-year-old redevelopment plans, which Von Haden had single-handedly blocked with his home-crafted lawsuit.

Von Haden, who says he is philosophically opposed to redevelopment because it promotes growth, claimed in his suit that the city illegally targeted areas in the city for redevelopment even though they were not blighted, as required by state law.

But the city has continually maintained--and been supported in various court decisions--that while some of the land designated for redevelopment might not be physically blighted, it is blighted in social or economic ways, which are sufficient to qualify for redevelopment.

The land is economically blighted because it cannot draw new businesses without public improvements, the city said.

“We’re absolutely ecstatic,” said Bob Campbell, the city’s economic development director, who, in 1986-87, headed a citizens advisory committee to identify which parts of the city should be targeted for redevelopment.

“The court’s action validates all the work we’ve put into redevelopment planning,” he said.

Under redevelopment law, the assessed value of the targeted land is frozen and the varying taxing agencies, such as schools and fire protection districts, continue to receive property tax revenue based on that assessment. But as the land increases in value, most of the additional property tax revenue is earmarked to the city’s redevelopment agency to fund a variety of projects, ranging from low-cost housing to construction of public works improvements and assistance to businessmen renovating their stores.

Vista officials had identified four large areas of the city for redevelopment: two parcels in the downtown area totaling about 1,100 acres and two parcels along Sycamore Drive, on the eastern edge of the city, totaling 972 acres.

The courts previously endorsed the downtown redevelopment project area, and on Tuesday the city got word that the Sycamore Drive area was also legitimate despite Von Haden’s contentions.

Campbell said city officials will now re-examine their redevelopment priorities and set them in motion as soon as Von Haden’s lawsuit is finally quashed.

But Von Haden said he will ask for a rehearing.

“I never give up, because I’m right,” he said. “Everyone knows this area is not blighted . . . but they’re willing to break the redevelopment law just to get the (additional property tax) money, because they’re blinded by that money.”

How can he say the city is breaking the law if the courts have upheld the city?

“The courts aren’t always right,” Von Haden said.