A Stanislaus County judge has ruled the city illegally denied a key application for the proposed 719-home Keystone Ranch development, finding Patterson violated state housing law when it rejected the project's tentative subdivision map.
The conflict stems from a decision by the California Department of Water Resources to reject Patterson's groundwater sustainability plan and order the city to reduce groundwater pumping by 10%.
Keystone Ranch attorney Evette Davis says that put a citywide water fix on one developer's bill.
According to the ruling, Patterson's own city staff and Planning Commission had recommended approving the subdivision map. However, the City Council voted to deny the project.
The ruling also found Patterson could not require Keystone Ranch to build the regional recharge basin as a condition of approval.
The decision follows another major court loss for Patterson earlier this year. In January, a judge struck down the city's 2024 development fee increases, ruling officials failed to properly notify the public and adequately justify the higher fees charged to developers.
The latest ruling also aligns with concerns raised by the state last fall. In October, the California Department of Housing and Community Development warned Patterson that denying the Keystone Ranch project could violate state housing law.
Patterson's city attorney told CBS News Sacramento the city is reviewing the ruling and evaluating its legal options in light of its ongoing groundwater issues.
"We certainly look forward to seeing those updates and to having another session before the City Council," Davis said.
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