Redevelopment Deal Ruled Unconstitutional

A state appeals court has ruled unconstitutional the agreement Huntington Beach made to finance redevelopment of two blocks of downtown.

The unanimous decision filed Wednesday by the 4th Appellate District Court in Santa Ana said the deal violated the state statute requiring cities to have balanced budgets.

Citizens Against Redevelopment Excess, a group of Huntington Beach residents and business and property owners, filed a lawsuit challenging the arrangement. An Orange County Superior Court ruled against the group last year.

The case focused on an area bounded by Pacific Coast Highway, Main Street, Walnut Avenue and 6th Street. The project was to be done by CIM Group, the company that developed Santa Monica’s Third Street Promenade. Plans included a hotel, stores, restaurants and an underground parking structure.