The Riverside court has ruled that the City of Palm Springs acted unlawfully when it imposed millions of dollars in economic conditions on the owner's application to convert El Dorado Mobile Estates into a resident-owned mobile home park. "The Court of Appeal's decision confirms that the Palm Springs City Council had no authority to impose economic subsidies, extractions and mitigation conditions on El Dorado's application to convert the park to a mobile home condominium development," says O'Melveny & Myers LLP litigation partner James W. Colbert, who is lead litigation counsel for the park owner.

The decision clears the way for the conversion of El Dorado Mobile Estates, as it will now be an economically feasible undertaking for the owner. The proposed conversion, which has been in the works for nearly 10 years, will allow park residents to purchase the lots where their mobile homes are located.