Case Studies & Examples / Mixed Use

“3rd Strike for General Growth Properties in Trying to Stop Competitive Entertainment/Retail Destination”

January 20, 2005

“Superior Court Judge Robert O’Brien today upheld the City of Glendale’s approval of a town center to be developed by Caruso Affiliated and ruled that the Environmental Impact Report on which the city’s decision was based fully meets all requirements of the California Environmental Quality Act (CEQA).

Specifically the judge denied all six causes of action brought by General Growth Properties (NYSE:GGP) to challenge the city approval and the EIR. “The purpose of CEQA is only to compel government to make decisions after taking into consideration environmental consequences,” noted O’Brien. In upholding the EIR, he said that, “An EIR does not have to be perfect or exhaustive. CEQA requires only a good faith effort to make full disclosure.”

“We are thrilled with the decision but not surprised,” said Rick Caruso, founder and CEO of Caruso Affiliated. “The city staff was most rigorous and diligent in compiling the administrative record and in following the letter of CEQA and other pertinent laws. This is great news for Glendale and for our company.

“This entire lawsuit was just another failed attempt by General Growth Properties, owner of the Glendale Galleria across the street from our town center, to stop competition,” Caruso continued. He pointed out that Caruso won a unanimous City Council vote opposed by General Growth and then a citywide referendum financed by General Growth.”

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