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8A Page 5 Legal Decision Reaffirms Cities' Right to Zone Property to Promote Business Activity In a decision handed down last week in Hernandez v. City of Hanford, the California Supreme Court unanimously upheld a city's right to zone property in a way that promotes business activity in one area of the city, by limiting the same activity in another area. This is an important case for cities because it affirms cities' right to choose where particular types of businesses are located in order to promote a valid public purpose such as economic vitality. Hernandez v. City of Hanford focused on a city ordinance that generally prohibits the sale of furniture in one part of the city (the Commercial District), but allows furniture sales in another part of the city (the Downtown District). The city enacted the ordinance, in part, to protect the economic viability of its Downtown District. The ordinance exempts "large department stores. from the prohibition and allows them to sell furniture in Hanford's Commercial District. The rationale behind the exemption was to ensure the Commercial District remained an attractive location for these stores because loss of these types of businesses would have a detrimental effect on the economic vitality of the city as a whole. The owners of a small store in the Commercial District sued the city, arguing it was improper for Hanford to prohibit their business from selling fumiture in order to foster sales in the Downtown District. The owners also argued it was improper for the city to allow "large department stores" to sell furniture in the Commercial District, while prohibiting small stores in the district, such as theirs, from doing the same. The court rejected the owners' arguments, overtuming a lower court's decision that limited cities' ability to make these determinations. In its decision, the California Supreme Court concluded that as long as the ultimate objective of a zoning ordinance was to achieve a valid public purpose, the ordinance would not be struck down merely because it effects business competition. The court held that furthering a municipality's general plan for controlled growth or for localized commercial development is a valid public purpose and that Hanford acted accordingly. In addition, the court concluded there was a rational basis for allowing "large department stores' to sell furniture in the Commercial District, while not allowing small stores in the district to do the same. If not allowed to sell furniture, these businesses may choose to leave Hanford, an effect the city determined was not in the best interest of its citizens. The league of California Cities, along with the California State Association of Counties (CSAC), submitted a "friend of the court" brief in Hernandez v. City of Hanford (CaI.Rptr.3d, 2007 WL 1629830) in support of cities' right to make these zoning choices. The League thanks Thomas B. Brown of Hanson Bridgett Marcus Vlahos & Rudy LLP for drafting an amicus brief on behalf of the League and CSAC. Greenllght Initiative Seeking Grant Applicants The Greenlight Initiative, a program started by AM of Northern California, Nevada and Utah to promote the development and understanding of new automotive fuels and fuel-efficiency-reJated technologies, has launched the Greenlight Initiative Grant Program. The program is looking to award grants to qualified applicants working on projects related to alternative fuels. The Greenlight Initiative Grant Program is seeking applications from individuals and organizations pursuing projects in three key areas: . Awareness: Increase awareness and promote use of alternative fuels among a defined population of residents in Northern California, Nevada and Utah. 5