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This is the area north of Santee Lakes where the latest version of the Fanita Ranch project is supposed to be built.  (Nancee E. Lewis / UT file)
This is the area north of Santee Lakes where the latest version of the Fanita Ranch project is supposed to be built. (Nancee E. Lewis / UT file)
UPDATED:

A plan to build 3,000 homes in East County has hit another roadblock after a Superior Court judge decided Santee leaders broke the rules when approving the latest version of the Fanita Ranch project.

The decision was the latest win for environmentalists and local activists who’ve long argued that developing 2,600-plus acres in the hills beyond Santee lakes would threaten habitats and put residents in the path of wildfires.

The “City abused its discretion and did not proceed in the manner required by law,” Judge Katherine Bacal wrote in an order.

A representative for the developer said they planned to appeal.

Proponents believe the project can simultaneously ease the region’s housing shortage, protect large swaths of land and provide fast escape routes.

Mayor John Minto said in a statement that officials were discussing next steps. Santee “stands behind our efforts to meet state demands to create additional housing in our city in a way that benefits our community,” Minto added.

Developers have been eyeing Fanita Ranch for decades. In 2020, council approved a proposal from HomeFed Fanita Rancho LLC. Environmental groups sued and the same judge from Friday’s case said it wasn’t clear if fast evacuations were possible and told Santee to pull back approval.

The council did so and threw out a planned referendum that would have given voters final say over the project. Then in 2022, leaders again gave HomeFed the green light by changing the process used to consider the development, essentially sidestepping the need to put the issue on a ballot.

It was this move that drew the latest lawsuit.

“The court rightly rejected the city’s attempt to ram through the Fanita Ranch project without considering the dangers of developing in a wildfire-prone zone,” John Buse, senior counsel at the Center for Biological Diversity, said in a statement. “This decision is a victory for the exceptionally diverse wildlife here and for neighboring residents who won’t face an increased risk of wildfire.”

The center was ed in the suit by the Endangered Habitats League and the California Chaparral Institute, both nonprofits, as well as the political committee Preserve Wild Santee.

Residents voted down different Fanita Ranch proposals in 1999 and 2005, although the current plan differs in key ways. Most of the site, which covers about a quarter of Santee, would remain undeveloped and include a network of trails. There’d be a community farm and homes relying on electricity, not natural gas.

One hundred and fifty units are to be designated as “low and moderate income” housing. It’s too early to know how much they might cost.

Jeff O’Connor, vice president of the Carlsbad-based HomeFed Corporation, said he believed the city’s approval process was legal and hoped an appeals court would agree. He added that the project would include a $2.6 million contribution to the city for affordable housing.

An environmental impact report previously found that getting everybody in the development and their nearby neighbors out of the area during a severe fire could take almost two hours. A more likely scenario would see everyone safe in less than 20 minutes, the analysis said.

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