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The developer behind a failed $20 million solar project has withdrawn a lawsuit accusing the City of Industry, Diamond Bar and Chino Hills of violating open meeting laws when they formed a preservation authority to protect the 2,500-acre Tres Hermanos Ranch from development.

San Gabriel Valley Water and Power’s attorney filed a request for dismissal the day after the Los Angeles County District Attorney’s Office raided the homes and offices of key figures behind the project. The request, which was dated in March but not filed until Aug. 13, does not provide an explanation for the decision.

Peter Sunukjian, SGVWP’s attorney, did not return requests for comment.

The mayors of three cities jointly announced an end to the costly litigation in a press release Thursday, Aug. 20.

“By dropping its lawsuit, SGVWP has essentially admitted that its allegations were without any merit,” said Cory Moss, mayor of the City of Industry. “Like SVGWP’s proposed solar farm, their lawsuit was a sham and we prevailed.”

SGVWP’s lawsuit, filed in early 2019, alleged the three cities violated the Brown Act by negotiating the joint purchase of Tres Hermanos Ranch behind closed doors. The three cities scheduled simultaneous public meetings in February 2019 to create the Tres Hermanos Conservation Authority and establish the authority as the ranch’s new owners.

Votes held in public

SGVWP’s attorneys alleged the coordinated meetings were designed to limit public scrutiny. But the cities have maintained they held the votes in public and were in full compliance with the state law.

The Ralph M. Brown Act is an open-government law that requires legislative bodies to discuss and take action in front of the public they serve. Some exceptions, however, allow closed-session meetings for issues such as legal settlements and real property negotiations. Even if an improper action is voided by a judge, a legislative body simply can vote again in open session to ratify its actions.

Tres Hermanos, which is physically located in Diamond Bar and Chino Hills, had been owned by Industry’s redevelopment agency for decades.

$20 million at issue

From 2016 to 2018, Industry paid $20 million to SGVWP toward the development of the proposed 450-megawatt solar farm. In a separate lawsuit, Industry now alleges the company’s owners siphoned the funds and are unable provide evidence of the work performed. The Los Angeles County district attorney’s investigation appears to focus on the whereabouts of those funds.

The Brown Act lawsuit was the only remaining challenge to the preservation authority’s ownership of the property.

“This important victory safeguards this significant expanse of pristine property for the people wildlife of this region,” said Chino Hills Mayor Art Bennett in a statement. “Our three cities will continue work together as members of the Tres Hermanos Conservation Authority to preserve and protect Tres Hermanos Ranch for future generations.”