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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) June 19, 1998
CALIFORNIA COASTAL COMMUNITIES, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
0-17189 02-0426634
(Commission File Number) (I.R.S. Employer Identification No.)
4343 Von Karman Avenue, Newport Beach, California 92660
(Address of principal executive offices) (Zip Code)
(949) 833-3030
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address,
if Changed Since Last Report)
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Item 5. OTHER EVENTS
On June 18, 1998, the Registrant issued a press release describing the
results of the California Court of Appeals' ruling in favor of the Registrant
with respect to its compliance with the California Environmental Quality Act
in connection with the Registrant's development of its Warner Mesa
residential community. A copy of the press release is attached hereto and is
incorporated herein by reference.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits:
Exhibit No. Description
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99.1 Press Release, issued June 18, 1998
2.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
KOLL REAL ESTATE GROUP, INC.
Date: June 19, 1998 By: /s/ Raymond J. Pacini
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Raymond J. Pacini
Chief Executive Officer
3.
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[LETTERHEAD]
NEWS RELEASE
Contacts: Raymond J. Pacini, President and Chief Executive Officer,
California Coastal Communities, Inc. (formerly Koll Real Estate
Group, Inc.) 949-833-3025 X291
Lucy Dunn, Executive Vice President, Hearthside Homes, Inc., a
wholly owned subsidiary of California Coastal Communities, Inc.
949-472-5800
COMPANY WINS APPEAL AFFIRMING WARNER MESA PROJECT'S
COMPLIANCE WITH CEQA
COMPANY EXPECTS REMAINING APPEALS ON COASTAL ACT ISSUES TO BE DECIDED
LATER THIS YEAR
NEWPORT BEACH, California - June 18, 1998 - California Coastal
Communities, Inc.. (NASDAQ:CALC), formerly known as Koll Real Estate Group,
Inc., announced today that on June 17, 1998, the California Court of Appeal
ruled in the Company's favor by affirming a Superior Court's earlier decision
that the Orange County Board of Supervisor's approval of the Bolsa Chica
Local Coastal Program ("LCP") was in compliance with the California
Environmental Quality Act ("CEQA").
Additionally, the court reversed the Superior Court's award of
attorney fees and costs to the Company's opponents because certain aspects of
the Superior Court's decision erred on the merits and the project opponents
did not accomplish anything meaningful in the CEQA litigation.
According to California Coastal Communities' President and CEO,
Raymond J. Pacini, "This litigation victory represents an important step toward
development of our Warner Mesa community. We are pleased with the Court of
Appeal's quick decision following the June 11th hearing. This decision, coupled
with last month's order by the Court of Appeal to consolidate and expedite the
then pending appeals in the Coastal Act litigation, will hopefully result in a
positive resolution of all litigation by no later than year-end. We hope the
Court of Appeal will put an end to the costly delays to our employees,
shareholders and the citizens of Orange County."
**MORE**
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Court of Appeal's Decision Affirms Warner Mesa Project's Compliance with
CEQA/222
Said Lucy Dunn, Executive Vice President of Hearthside Homes, Inc.,
the land development and homebuilding subsidiary of California Coastal
Communities, Inc., "The court has recognized what we have said all along;
that the public has had ample opportunity to comment, participate and
influence the plan through numerous public hearings during the 25-year Bolsa
Chica planning process."
The Court of Appeal's decision resolves a "CEQA Lawsuit" filed by the
Bolsa Chica Land Trust in January 1995, challenging the December 1994
approvals of the Orange County Board of Supervisors. In January 1997, after
remanding the matter to the Board of Supervisors for additional processing
and findings, the trial court entered a judgment in favor of the Company.
This judgment was upheld by the Court of Appeal on June 17, 1998.
With this decision, the Court of Appeal rejected the contentions of
the Bolsa Chica Land Trust by concluding that the final Environmental Impact
Report ("EIR") adequately considered the alternatives for treatment of
archeological sites and that the County's efforts complied with the
requirements for involving the federal government in the EIR process.
The Court of Appeal concluded that where there are no significant
artifacts to preserve, focus on mitigating measures is adequate: "half a
century of agricultural activity and amateur and professional archeological
digs have rendered the site highly unlikely to yield anything of
significance."
The Court of Appeal also concluded that the federal agencies did
comment on both the 1993 and 1994 draft EIRs: "so the claim on appeal that
such participation was not obtained is meritless."
The next set of appeals to be heard by the Court of Appeal relates to
the "Coastal Act Lawsuit," filed by the Bolsa Chica Land Trust in March 1996
to challenge the January 1996 approvals of the Coastal Commission. In
response to an August 1997 Superior Court decision, on October 9, 1997 the
Coastal Commission approved suggested modifications to the LCP which
eliminated the filling of the 1.7 acre Warner Pond and reduced the maximum
density from 2,500 homes to no more than 1,235 homes on Warner Mesa. The
Orange County Board of Supervisors subsequently accepted the Coastal
Commission's suggested modifications.
**MORE**
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Court of Appeal's Decision Affirms Warner Mesa Project's Compliance with
CEQA/333
However, on February 20, 1998, the Superior Court ruled that the
Coastal Commission should not have narrowed the scope of public comments
during the Coastal Commission's October 1997 hearing, and ordered the Coastal
Commission to hold a third hearing on the LCP. There are numerous appeals
pending with respect to the Coastal Act Lawsuit. In May 1998, the California
Court of Appeal ordered that all then pending appeals be consolidated and
heard on an expedited basis.
The Company currently anticipates that a decision on the appeals in
the Coastal Act Lawsuit may be rendered during the fourth quarter of 1998.
While the Company is unable to predict exactly when these litigation
delays will end, it hopes to start infrastructure construction next year. The
Company does not believe that the litigation process will permanently prevent
it from completing the Warner Mesa project; however there can be no assurance
in that regard or that further delays will not result.
Any forward-looking statements in this press release involve known and
unknown risks and uncertainties including the timing and outcome of various
litigation described herein. The Company's actual results could differ
materially from those currently anticipated in any such forward-looking
statements because of many factors.
California Coastal Communities, Inc. recently sold its commercial
development business to focus on residential land development and homebuilding
in Southern California. The Company's principal subsidiaries are Signal
Landmark, which owns the approximately 200-acre Warner Mesa (formerly known
as the Bolsa Chica mesa), and Hearthside Homes, Inc., the third largest
homebuilder in Orange County, currently building a 1,200 home project in
Aliso Viejo, CA.
**END**
