Berkeley · Alameda · Bay Area

1900 Fourth Street Mixed-Use Apartments

Withdrawn

1900 Fourth Street, Berkeley, CA 94710

Project Type
Mixed-Use
Units Proposed
260
Date Filed
March 1, 2018
Date Denied
September 4, 2018
Delay
72 months

A 260-unit mixed-use apartment complex proposed on a 2.2-acre surface parking lot (the former Spenger's Fish Grotto parking lot) in West Berkeley, two blocks from an Amtrak Capitol Corridor station. The SB 35 application, filed March 2018, proposed 130 market-rate apartments, 130 affordable apartments (80% AMI), and ground-floor retail. After Berkeley denied it twice in 2018, property owners Ruegg & Ellsworth sued. Berkeley won at trial court (November 2019) but the First District Court of Appeal reversed in a landmark April 2021 ruling — the first published California appellate opinion interpreting SB 35. Berkeley was subsequently fined $2.6M and ordered to pay $1.4M in developer attorney fees. Before any housing was built, the Berkeley City Council unanimously voted in March 2024 to purchase the site for $27M, funded primarily by a $20M donation from the Kataly Foundation, and transfer title to the Sogorea Te' Land Trust. 260 apartments were never built. The site remains a parking lot.

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Timeline

January 1, 2013First Development Proposal

Blake Griggs Properties first proposes an apartment complex at 1900 Fourth Street through Berkeley's normal development process. The proposal is controversial from the start due to the site's association with the West Berkeley Shellmound. No permit is issued over the following years.

Berkeleyside
January 1, 2018SB 35 Takes Effect

California SB 35 (Wiener, 2017) takes effect, requiring cities not meeting regional housing goals to provide ministerial approval for projects with at least 50% affordable units. Berkeley has not met its regional housing obligations. Blake Griggs begins restructuring its proposal to qualify.

Berkeleyside
March 1, 2018SB 35 Application Filed (260 Units)

West Berkeley Investors (Blake Griggs subsidiary) submits an SB 35 application for 260 units: 130 market-rate apartments and 130 affordable (80% AMI), plus ground-floor retail. The project is redesigned larger than the earlier proposal specifically to meet SB 35's 50% affordable threshold. Architect: TCA Architects.

Berkeleyside
June 5, 2018Berkeley's First SB 35 Denial

Berkeley denies the SB 35 application, asserting the site is within the West Berkeley Shellmound historic landmark, that mixed-use projects don't qualify for SB 35, and that Berkeley's very low-income unit requirements aren't met.

Berkeleyside
June 29, 2018Developer Threatens Lawsuit with 400-Page Rebuttal

West Berkeley Investments sends a 400-page rebuttal to Berkeley's denial letter, charging the city is "trying to undermine a new state law." Developer threatens to sue unless Berkeley approves the project under SB 35.

Berkeleyside
August 23, 2018Blake Griggs Drops the Project

West Berkeley Investors and Blake Griggs Properties notify Ruegg & Ellsworth that they are withdrawing from the project and returning all development rights. Spokesperson Ron Heckmann confirms the withdrawal but declines to give a reason.

Berkeleyside
September 4, 2018Berkeley's Second and Final Denial

On the same day Blake Griggs drops the project, Berkeley sends a letter to property owner Dana Ellsworth issuing a final denial of the SB 35 application, stating SB 35 "cannot be applied to the property without violating the state constitution" because the site is a city-designated historical landmark.

Shellmound.org
November 28, 2018Property Owners File Lawsuit

Ruegg & Ellsworth and Frank Spenger Company file a petition for writ of mandate against the City of Berkeley, represented by Holland & Knight (Jennifer Hernandez and Daniel Golub). The lawsuit argues Berkeley's SB 35 denial violates state law and the HAA.

Daily Californian
November 1, 2019Trial Court Rules for Berkeley

Alameda County Superior Court Judge Frank Roesch rules in favor of Berkeley, finding the city was within its rights to deny the SB 35 application. Roesch: "Whatever the case is, I don't make decisions about whether projects are approved, ever." Developers appeal to the First District Court of Appeal.

Berkeleyside
March 20, 2021Ohlone Protest at Site

The Campaign to Save the West Berkeley Ohlone Shellmound holds a gathering on Fourth Street to protest a fence erected around the parking lot — a signal the developer was preparing to move forward following the pending appellate ruling.

Berkeleyside
April 20, 2021Court of Appeal Issues First Published SB 35 Opinion (Developer Wins)

The California First District Court of Appeal issues Ruegg & Ellsworth v. City of Berkeley — the first published California appellate opinion interpreting SB 35. The court reverses the trial court. Key holdings: mixed-use projects with ground-floor retail qualify for SB 35; historic landmark designations cannot override SB 35 ministerial review. The ruling establishes binding statewide precedent.

Berkeleyside
March 1, 2022Berkeley Appeals; Supreme Court Also Rules for Developer

Berkeley appeals the Court of Appeal ruling to the California Supreme Court. The Supreme Court upholds the appellate ruling, confirming Berkeley violated the HAA in denying the SB 35 permit.

Berkeleyside
February 16, 2024Judge Fines Berkeley $2.6M, Orders $1.4M Attorney Fees

Judge Roesch imposes a $2.6 million HAA fine on Berkeley (developer had sought $39 million); the fine is directed into Berkeley's Housing Trust Fund for affordable housing construction. Berkeley is also ordered to pay $1.4M in developer attorney fees. Total city cost: $4 million. Housing was never built.

Berkeleyside
March 8, 2024Settlement Reached: $27M Site Purchase by Sogorea Te' Land Trust

The Sogorea Te' Land Trust — funded primarily by a $20M donation from the Kataly Foundation (Regan Pritzker, Hyatt family) — offers $25.5M to purchase 1900 Fourth Street. Combined with $1.5M from Berkeley and $5.5M from two other donors, the $27M total settles all outstanding litigation. Ruegg & Ellsworth agrees.

Sacred Land Film Project
March 12, 2024Berkeley City Council Unanimously Approves Purchase and Land Transfer

Berkeley City Council votes unanimously to purchase 1900 Fourth Street for $27M and immediately transfer title to the Sogorea Te' Land Trust. Berkeley becomes among the first cities in the US to formally return land to Indigenous people. The vote ends eight years of legal disputes. 260 apartments were never built.

Berkeleyside
April 30, 2024Escrow Closes; Title Transferred to Sogorea Te' Land Trust

Escrow closes on the $27M purchase. Title transfers immediately to the Sogorea Te' Land Trust — the largest known urban Indigenous land return in US history. All legal claims settled. The site remains a surface parking lot, with Sogorea Te' conducting cultural assessments and planning a commemorative park and cultural center.

Sacred Land Film Project

Who Was Involved

Supporting
Ruegg & Ellsworth
Ruegg & Ellsworth / Rue-Ell Enterprises
Developer / Property Owner / Plaintiff

"Extensive archeological and historical investigations at the parking lot site revealed no evidence of any intact cultural resources, nor even remnants recognizable as part of a structure. While there were shellmounds in the area, the overwhelming evidence is that no shellmound was ever present at the parking lot/development site." (Jeffrey Anhalt, risk manager, after April 2021 appellate victory)

Blake Griggs Properties / West Berkeley Investors
Blake Griggs Properties
Original Developer (withdrew Aug 2018)

Berkeley is "trying to undermine a new state law that fast-tracks certain kinds of construction." The SB 35 application meets all legal requirements. Berkeley's denial based on historic landmark status is an improper use of preservation law to override a state housing statute.

Jennifer Hernandez
Holland & Knight LLP
Lead Counsel for Ruegg & Ellsworth (Holland & Knight)

Argued at a 2019 court hearing that SB 35 "usurped" Berkeley's authority over its landmarks — the legal argument the Court of Appeal later rejected. Subsequently secured the appellate victory and the $1.4M attorney fee award.

Opposing
City of Berkeley
City of Berkeley
Respondent / Permitting Authority

The West Berkeley Shellmound is a city-designated historic landmark; applying SB 35 would unconstitutionally strip the city of authority over its own landmarks. SB 35 only applies to housing-only projects; a mixed-use building with ground-floor retail is ineligible. Project does not meet Berkeley's very low-income unit requirements. Traffic standards are not met.

Corrina Gould
Confederated Villages of Lisjan / Sogorea Te' Land Trust
Tribal Chair, Lisjan Nation / Co-Founder, Sogorea Te' Land Trust

"In 2018, a developer announced plans for a massive new project that would upturn and destroy what was left of the site. A new fast-track housing law allowed the developers to bypass environmental review and Tribal cultural consultation and proceed with their plans, bringing imminent destruction of the remaining cultural landscape." After the land return: "To have this place saved forever, I am beyond words."

Campaign to Save the West Berkeley Ohlone Shellmound
Campaign to Save the West Berkeley Ohlone Shellmound
Opposition Coalition

The West Berkeley Shellmound is a 2,700-year-old Ohlone burial and village site — the oldest and most significant such site on the San Francisco Bay. The parking lot at 1900 Fourth Street covers the last undeveloped portion of this sacred landscape. Construction here would be permanent, irreversible desecration.

Deciding
California First District Court of Appeal
California Courts of Appeal
Appellate Court — Issued First Published SB 35 Opinion

Berkeley improperly denied the SB 35 application. Mixed-use projects with ground-floor retail qualify for SB 35. Historic landmark designations cannot override SB 35 ministerial review rights. (Ruegg & Ellsworth v. City of Berkeley, April 20, 2021)

Judge Frank Roesch
Alameda County Superior Court
Trial Court Judge (Alameda County Superior Court)

November 2019: ruled for Berkeley. February 2024 (after appellate reversal): imposed $2.6M HAA fine directed to Housing Trust Fund and $1.4M attorney fee award. At 2019 hearing: "Whatever the case is, I don't make decisions about whether projects are approved, ever."

How It Was Obstructed

Hist PresHistoric Preservation Designation
Invoked by City of Berkeley · June 5, 2018

Berkeley invoked the site's designation within the West Berkeley Shellmound historic landmark district as the primary basis for denying the SB 35 application, arguing the state constitution prohibits SB 35 from overriding a city landmark designation. The First District Court of Appeal definitively rejected this argument in 2021 — the first published SB 35 opinion. Berkeley was fined $2.6M and paid $1.4M attorney fees. However, the six-year legal delay gave time for a $27M philanthropic land purchase to occur, preventing the housing from ever being built. NOTE: city lost in court but housing was not built — this is analytically the most contested was_successful flag in the database.

SucceededAdded 72 months of delay
SB 35SB 35 Ministerial Streamlining
Invoked by City of Berkeley · June 5, 2018

Berkeley denied the SB 35 ministerial application on two additional grounds: mixed-use projects with ground-floor retail are excluded from SB 35 (city argued it covers housing-only projects), and the project didn't meet Berkeley's very low-income unit requirements. The Court of Appeal rejected the mixed-use argument. Both denials together created a six-year litigation delay that allowed a philanthropic intervention to prevent construction.

SucceededAdded 72 months of delay

Sources

Let the Land Breathe — Sogorea Te' Land Trust
Sogorea Te' Land Trust

Official Sogorea Te' Land Trust account of the history and 2024 land return. Primary source for Land Trust's voice and post-settlement site status.

The West Berkeley Shellmound Is Free!
Sacred Land Film Project2024

April 30, 2024 escrow close summary. Confirms $27M total, $20M Kataly, $5.5M from two other donors, title transfer details. Best source for final settlement figures.

Berkeley Will Buy Ohlone Shellmound Site, Return It to Indigenous Land Trust
Berkeleyside2024

Primary source for the March 2024 settlement. Confirms $27M purchase, Kataly Foundation $20M donation, city's $1.5M, unanimous council vote, and land transfer to Sogorea Te'.

Berkeley Must Pay $4M After Illegally Blocking Housing Project at Ohlone Shellmound Site
Berkeleyside2024

Primary source for $2.6M HAA fine and $1.4M attorney fees. Confirms developer sought $39M; judge imposed $2.6M to Housing Trust Fund.

Court Rules a 260-Unit Apartment Complex Can Go Up at 1900 Fourth St.
Berkeleyside2021

Coverage of the landmark First District Court of Appeal ruling. Contains Jeffrey Anhalt quote on absence of intact cultural resources.

Judge to Rule on Whether Berkeley Illegally Nixed a Housing Complex on Spenger's Parking Lot
Berkeleyside2019

Pre-trial-court-ruling coverage. Contains Judge Roesch's quote; best source for Jennifer Hernandez's "usurped" framing.

Developers of 1900 Fourth St. Sue City of Berkeley Over Alleged State Law Violation
Daily Californian2018

Coverage of November 28, 2018 lawsuit. Confirms Holland & Knight representation and city's stated denial reasons.

City of Berkeley Issues Final Rejection of SB-35 Development Application
Shellmound.org2018

Opposition coalition site. Contains Corrina Gould quote after denial. Primary source for opposition perspective.

Developer of 1900 Fourth St. Says It Will Sue Unless Berkeley Fast-Tracks Development
Berkeleyside2018

Best source for SB 35 application details (260 units, 130 affordable at 80% AMI, ground-floor retail), developer's 400-page rebuttal, and Blake Griggs development history.

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