The Court found that the City of Simi Valley's decision to amend the General Plan designation of the parcel that plaintiff had purchased from "General Commerical with a Hotel/Motel Node" to residential was not arbitrary or unreasonable, and so was constitutional under both state and federal law. The Court dismissed the case.
After plaintiff company purchased a parcel of land in the City of Simi Valley, plaintiff was denied a permit by the City to develop the property into a hotel. The City had concerns about the effects of noise, lights, and possible night-time disturbance to the residential area near the parcel if the parcel was developed commercially. The City then amended its General Plan so that the parcel could only be used for residential development. Plaintiff company challenged this redesignation as unconstitutional and in violation of state law.