The city of Half Moon Bay, Calif., is in danger of dissolving after losing a major lawsuit:
Half Moon Bay is wrestling with unpleasant options for responding to a court ruling that officials say threatens the "very existence of our city government"—a $36.8 million judgment against the city for turning a proposed housing development site into wetlands.
Under the worst-case scenario, officials say, Half Moon Bay would become the first Bay Area city forced to dissolve, and the coastal town's land would become an unincorporated part of San Mateo County.