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CIty CouncIl Meeting 9-25-84 Santa MonIca, CalIfornIa
STAFF REPORT (,-(1
SEP 2 5 1984
TO: Mayor and City Council
FROM: City Attorney
SUBJECT: Proposed FindIngs of Fact Regarding Appeal of
Development Review 216 and CondItIonal Use PermIt
362 for ConstructIon of a SIX UnIt CondominIum at
1941 Euclld Street; Mlchael W Folonis
On May 22, 1984, the City CouncIl heard an appeal of
the PlannIng CommIssIon approval of Development ReVIew 216
and CondItIonal Use PermIt 362 for the constructIon of a six
unIt condomInIum at 1941 Euclid Street. The appellant is
MIchael w. FolonIs. The basis for the appeal IS that a
hardshIp would occur If the appellant must provIde one
InclusIonary unit of the SIX proposed condomInium unIts at a
rate affordable for low to moderate Income persons as
requIred by Program 12 of the HOUSIng Element of the General
Plan ( "Program 12 If ) .
The City Council indIcated that it was their intent to
exerCIse discretIon In favor of the reasonable relIef
requested by the appellant due to the specIal CIrcumstances
affectIng thIS proJect. The CIty Council Instructed the CIty
Attorney's OffIce to prepare findIngs in support of modifYIng
the sales prIce of the inclusIonary unit to balance the
economic hardshIp to the appellant with the Intent of Program
12. C,- a
SEP 2 5 ,..
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, After several negotIatIon seSSIons, the CIty Attorney's
OffIce has reached an agreement wIth appellant that IS
consIstent WIth the Intent of the CIty Council. The
agreement provIdes that before the CIty Issues a certificate
of occupancy for any of the unIts In the condomInIum project,
appellant shall execute an agreement wIth the Community
CorporatIon to provIde an affordable housIng SUbSIdy equal to
$30,000 plus 2% of the sales proceeds exceeding $900,000.
The $30,000 wIll be payable In $5,000 Installments due upon
the sale of the IndivldIual units. The 2\ wIll be payable
upon the sale of the sIxth and fInal unIt. Appellant must
provIde the CommunIty CorporatIon WIth appropriate securitIes
to ensure performance.
ThIS agreement would be conceptually sImIlar to the
origInal hardship agreement executed wIth the City pursuant
to a hardshIp exemptIon granted by the CIty CounCIl. The
agreement would Implement the HousIng Element by providing
for an affordable rental unit.
RECOMMENDATION
It IS respectfully recommended that the CIty Council
sustaIn the appeal of Developement Review 216 and CondItional
Use Permit 362 subject to the condition that appellant
execute an agreement with the CommunIty CorporatIon prIor to
the issuance of a certIfIcate of occupancy for any of the
condomInium units. The agreement would requIre appellant to
prOVIde an affordable housing SUbSIdy equal to $30,000 plus
2\ of the sales proceeds In excess of $900,000. The $30,000
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wIll be payable in $5,000 Installments due upon sale of each
IndivIdual unIt. The 2% wIll be payable upon the sale of the
sIxth and fInal unit. Appellant shall provide the CommunIty
CorporatIon wIth an approprIate security agreement to ensure
complIance. The CIty CouncIl should sustain the appeal in
conjunction with adoptIng the followIng Findings of Fact.
FINDINGS OF FACT
1. MIchael W. Folonis ("Folonls") seeks to develop a
parcel of land located at 1941 EuclId Street ("subject
property" ) . The subJect property IS 50' by 150' and is
adjacent to a publIC alley at the rear lot lIne. The sUbJect
property IS located In an R-2 multIple resIdentIal zone. The
subject property is currently vacant.
2. On May 17, 1980, the Santa Monica Rent Control
Board granted a non-rental exemptIon to the subject property
based upon the fact that the eXIstIng SIngle famIly reSIdence
had not been rented on AprIl 10, 1979.
3. On October 2, 1980, the Santa Monica Redevelopment
Agency declIned to accept the developers offer to donate the
eXIstIng SIngle famIly home because the City did not have a
suitable SIte to relocate the structure.
4. On October 6 , 1980, the PlannIng CommIsSIon
approved TentatIve Tract Map Number 40150 for the
constructIon of a SIX unIt condominium proJect on the subJect
property. On October 15, 1980, the ArchItectural Review
Board approved the proposed development.
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. 5. On or about the Los Angeles County
January 5, 1981,
Redevelopment Agency receIved the developer's donatIon of the
stucture on 1941 EuclId plus a second structure prevIously
located at 2027 6th Street. The two unIts were moved to the
Boyle HeIghts NeIghborhood ReVItalIzatIon PrOject Area. The
two units are now occupIed by famIlIes of low to moderate
Income who are rehabilItatIng the units WIth a lOW-interest
loan prOVIded by LACRA.
6. On March 16, 19B1, prelIminary building plans for
the proposed construction were submitted for review to the
BUilding and Safety Department. On April 16, 19B1, the
BuildIng and Safety Department completed the fInal plan check
for the project.
7. On AprIl 20, 19B1, the BUildIng and Safety
Department issued BUIlding PermIt #B54244 for constructIon of
the project.
S. On AprIl 22, 19B1, the CIty CouncIl adopted
OrdInance Number 1205 (eCS) WhICh Implemented an Emergency
BuildIng Moratorium OrdInance Number 1205 (CCS) effectively
halted any development of the proJect. SectIon 5 of
Ordlnance Number 1205 (CCS) establIshed a procedure where
Individuals could apply for an exemptIon from the Emergency
BUIldIng MoratorIum based upon a claIm of a vested rIght to
proceed or a claIm of undue hardship. On AprIl 30, 19B1,
Folonis} on behalf of DaVId Cooper, LOUIS Welder and Robert
HarrIS ("Developers"), submitted ClaIm Number M-Ol1 seekIng
an exemptIon.
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. 9. After referral of the matter to a HearIng Examiner
for addItional informatIon, ClaIm Number M-Oll was considered
by the City Council on May 22, 1981. The City Council
granted an exemptIon for the proJect contIngent upon the
developers executIng an agreement With the CIty regarding the
payment of certain fees to the CIty In-lIeu of provIdIng
on-site affordable housing.
10. On June 30, 1981, the CIty Council adopted
Resolution 6302 WhiCh approved FInal Tract Map Number 40150.
On September 16J 1981, the Final Tract Map was recorded.
11. On October 29, 1981, the Developers executed an
agreement wIth the City which oblIgated them to pay the CIty
5\ of the gross sales prIce of the SIX condomInium unIts as a
fee In-lIeu of provIdIng one on-site affordable hOUSing unIt.
The agreement provided that an account would be created into
which the Developers would depOSit the sales proceeds of the
six unIts. The agreement further provided that funds in the
account would be dIsbursed in the follOWIng manner:
a. Developers would pay regular installments to
satIsfy constructIon finanCing oblIgatIons;
b. As each unIt was sold, CIty would receive 2% of
the gross sales as partIal payment of the In-lIeu fee;
c. Upon sale of the SIxth unIt, City would receive
the remaInIng 3\ of the in-lIeu fee provIded the 3\ is less
than one half of the total amount remaining in the account.
In the event the remaining 3% IS more than one half of the
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L total in the eity and Developer wlll share
remalnlng account,
equally ln the funds remalnlng ln the account.
12. On May 25, 1982 the Clty adopted Ordlnance Number
1251 (eeS) WhlCh extended wlth modlfications the lnterlm
development procedures. Sectlon 4 ( ) ) of Ordlnance Number
1251 (eeS) allowed development to proceed without further
permits provided a development proJect had previously been
granted an exemptIon from OrdInance Numbers 1205 or 1207
(eeS) and provlded a bUlldlng permit had not expired.
13. On June 7 , 1982, the BUilding and Safety Department
granted a second extenslon of BUlldlng Permit #B54244 until
December la, 1982.
14. After December 10, 1982, the developers redeSigned
the condominIum proJect and were adVised that they would be
required to obtain an Interlm Development Permit to proceed
With the proJect as required by Ordinance Number 1251 ( ecs ) .
Section 4(J) of Ordinance Number 1251 (eeS) provides that
development may only proceed WIthout an Interlm development
permlt prOVided a project was granted an exemption under
Ordinance Number 1205 (CCS) and provided the bUilding permit
had not expired.
15. On January 30, 1984, the Planning CommiSSion
approved Development ReView 216 and Conditional Use PermIt
362 for construction of SIX condominium units at 1941 Euclid
Street. The approval was SUbJect to a number of conditions
Including the obligation to provide one unit at a cost
affordable to families of low or moderate Income families as
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. requIred by Program 12 of the Housing Element of the General
Plan. The Developers flIed a timely appeal of the PlannIng
CommiSSion action.
CONDITIONS OF APPROVAL
1. Plans for fInal design and landscapIng shall be
subject to reVIew and approval by the ArchItectural Review
Board.
2. ProJect deSIgn shall comply With the bUilding
energy regulations set forth In the California AdminIstrative
Code, Title 24} Part 2, SectIons 2-5351 and 2-5352 (Energy
Conservation Standards for New Residential Buildings) , such
conformance to be verIfIed by the Building and Safety
Department prior to Issuance of a bUilding permit.
3. Minor amendments to the plans shall be subJect to
approval by the Director of PlannIng. An increase of more
than 10\ of the square footage or a significant change In the
approved concept shall be subject to Planning Commission
review.
4. Constructions shall be In substantial conformance
WIth the plans submItted or as modifIed by the PlannIng
CommiSSion, Architectural Review Board or Director of
PlannIng.
5 . The applicant shall comply with all legal
reqUIrements regardIng prOVISIons for the disabled, IncludIng
those set forth in Title 24, California AdmInistrative Code,
Part 2.
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6. PrIor to Issuance of a bUilding permit, final
parking lot layout and specifications shall be reviewed and
approved by the Parking and Traffic Engineer.
7. PrIor to Issuance of bUIlding permIt, the eXisting
Covenants, Conditions and Restrictions (CC&R's) recorded with
Final Tract Map Number 40150 shall be amended to comply wIth
current City standards for CC&R's, Including prOVision for an
anti-discrImination clause. The CC&R's shall also be amended
to comply with CondItion Number 8 below. The revised CC&R's
shall be reViewed and approved by the City Attorney.
8. The developer shall covenant and agree wIth the
Community CorporatIon of the City of Santa Monica to provide
an affordable hOUSing subsIdy equal to $30,000 plus 2\ of the
sales proceeds of the entIre project WhICh exceed $900,000.
The $30,000 will be payable In $5,000 Installments due upon
the sale of the IndiVIdual units. The 2% WIll be payable
upon the sale of the sIxth and fInal unIt. The developer
shall execute thiS agreement prIor to the Issuance of the
certIfIcate of occupancy for any of the condominium units.
The agreement shall prOVide adequate securIty to the
Community Corporation to ensure performance.
9. No nOIse generatIng compressors or other such
equipment shall be placed adJacent to neighborIng reSIdentIal
bUIldings.
10. Street trees shall be relocated or prOVIded as
required by the OrdInance Number 1242 (CeS) (Tree Code), per
the speCIficatIons of the Department of RecreatIon and Parks
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and the Department of General SerVices. No street tree shall
be removed without the approval of the Department of
Recreation and Parks.
11. Street and/or alley lighting shall be provided on
public rights-of-way adjacent to the proJect if needed per
the specifications and with the approval of the Department of
General Services.
PREPARED BY: Robert M. Myers, Clty Attorney
Jonathan S. Horne, Deputy City Attorney
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