California builder battles Coastal Commission’s illegal permit veto and power grab

California builder battles Coastal Commission’s illegal permit veto and power grab

PLF to challenge CCC’s willful disregard for its own rules at California Supreme Court

Tim Shea followed all the rules. He had county approval. So why can’t he finish building homes in California? The answer is a stunning abuse of power by the California Coastal Commission, an agency created to protect the coast—not block desperately needed housing. 

Now, caught in a high-stakes property rights battle, the veteran builder is taking his fight against the Commission’s tyrannical overreach to a rare arena: the California Supreme Court. 

For 30 years, Tim has built homes, friendships, and a way of life in San Luis Obispo County’s picturesque coastal town of Los Osos. 

“It’s one of the most beautiful parts of California,” he says. “I’m an athlete—I run 10 miles a day, surf, swim, and scuba dive. This is definitely where I want to stay.” 

Tim’s building roots run deep. He started as a civil engineer on tunnel projects for J.F. Shea Construction, a national building juggernaut founded by his great-grandfather over a century ago. Drawing on his experience and his father’s business know-how, Tim launched his own firm, Shear Development.

In 2003, Tim bought eight lots near Morro Bay, ready to build a home on each parcel. The county approved his plan in two stages: four homes immediately, with the rest to follow. The catch? Tim had to install public infrastructure for all eight homes up front.

“I poured millions of dollars into curbs, gutters, sidewalks, and roadway infrastructure, assuming all the homes could be built,” he explains, “It was expensive, but I had it in writing and banked on the idea that the government’s word would stand.” 

Tim built the first four homes without a hitch. In 2017, following its CCC-certified Local Coastal Program (LCP) governing local land use, the county approved Tim’s permit for the remaining homes. That’s when the CCC stepped in, appealed—to itself, and vetoed Tim’s permit. 

Here’s the problem: the CCC can’t do that. Even in California’s tightly regulated coastal areas, the Coastal Act limits the agency’s ability with approved development it doesn’t like. While the agency must work with cities and counties to craft and certify LCPs, the Act demands the CCC step back and leave local land-use decisions to local governments. 

Unfortunately, Tim’s nightmare isn’t unique. The CCC has taken to willfully ignoring the law and vetoing local permits. Worse, the agency claims it can appeal any permit in multi-use zones—which covers nearly every project in the county’s coastal zone. 

Blindsided but not beaten, Tim sued in state court, challenging the Commission’s override of the very LCP it certified. The county even backed him with a friend-of-the-court brief. Nevertheless, the courts sided with the agency and dismissed the lawsuit, disregarding the LCP’s plain language and decades of consistent interpretation by both the county and the CCC itself. 

“It really stinks because the lots have been sitting empty for years and I’ve been chasing this so long,” Tim says. “There’s not a lot of new construction because of what we’re encountering right now: the Commission getting involved where it shouldn’t.” 

Such dismissals usually end the fight and many people simply give up. Not Tim. With free representation by Pacific Legal Foundation, he asked the California Supreme Court to review his case. The court agreed, marking a watershed moment for property rights in the Golden State. 

“The California Supreme Court almost never touches Coastal Commission overreach. This case is a unicorn—rare, hugely consequential, and the biggest challenge to the CCC in at least a decade,” says PLF attorney Jeremy Talcott. “Property owners and local governments must be able to trust LCPs. The CCC must follow the law, not its own agenda. And courts must recognize local authority in LCP disputes, not rubber-stamp the Commission’s illicit power grabs.” 

“We put a lot of time and money into these lots, and I want people to be able to live on them,” he says. “Even if we don’t make any money, just building the homes will fill out the neighborhood instead of leaving vacant, dusty lots next to the beautiful homes we’ve already built.” 

Victory would rein in the CCC’s un-checked power, set a precedent for future battles against unlawful bureaucratic over-reach, and potentially pave the way for more housing development. Meanwhile, Tim could finally finish what he started more than 20 years ago, replacing years of frustration with satisfaction in standing up for what’s right—one home at a time. 

“It’s become personal to me,” he says. “I’ll be very happy to move past all this to see justice served and do what I do best: building homes.”