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SR-407-000-07 (2) \ . ~ tJr-~ ootJ ..- 07 e CA:RMM:lld6l5/hpc City Council Meeting 5-8-90 11,-..'1 (.J.. ':I' t....... . 1'"_;"1-:"__ ~ . . MA~ :~o Santa Monica, California STAFF REPORT TO: Mayor and City Council City Attorney FROM: SUBJECT: Ordinance Establishing A Hardship Procedure for Reducing Mitigation Fees for Removal of Low Cost Lodging Accommodations Established by Ordinance Number 1516 (CCS) At its meeting on February 27, 1990, the City Council adopted Ordinance Number 1516 (CCS), which implements Policy 45 of the City of Santa Monica Draft Local Coastal Program. The ordinance established mitigation fees in the sum of $8,000 per unit for the removal of low cost lodging accommodations in the Santa Monica Coastal Zone. At the same meeting, the City council directed the City Attorney to amend Ordinance Number 1516 (CCS) to provide a hardship claim procedure. In response to this direction, the accompanying ordinance has been prepared and is presented to the City Council for its consideration. The accompanying ordinance establishes a hardship procedure which permits an applicant, based upon economic justification considerations only, to seek a reduction in the mitigation fee required under Ordinance Number 1516 (CCS) from $8,000 per unit to a low of $5,500, depending upon the facts of the case. certain procedures must be followed by hardship applicants and ~'A- - 1 - t-11\Y ~ i990 . . the city Council has 120 days from the date of filing of a claim to hear and determine whether or not to grant the claim. RECOMMENDATION It is respectfully recommended that the accompanying ordinance be introduced for first reading. PREPARED BY: Robert M. Myers, City Attorney Laurie Lieberman, Deputy city Attorney - 2 - . . CA:RMM:lld6l4b/hpc City council Meeting 5-8-90 Santa Monica, California ORDINANCE NUMBER (City council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING A HARDSHIP PROCEDURE FOR REDUCING MITIGATION FEES FOR REMOVAL OF LOW COST LODGING ACCOMMODATIONS ESTABLISHED BY ORDINANCE NUMBER 1516 (CCS) THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. Any person required to pay a mitigation fee pursuant to Ordinance Number 1516 (CCS) may file a hardship claim in accordance with the following procedure: (a) Any person claiming a hardship from Ordinance Number 1516 (CCS) must substantiate the claim in a proceeding under this section. In such a proceeding, the person claiming the hardship shall have the burden of proof. (b) Claims of hardship shall be determined by the City Council. Claims shall be filed on a form approved by the ci ty Attorney. The City Council shall, within 120 days of the date of filing of a claim, hear and determine whether to grant or deny the claim. Decisions of - 1 - . . the City Council shall be reviewable by writ of mandate, subject to the ninety (90) day time limitation set forth in Santa Monica Municipal Code Section l400. (c) In order to obtain a hardship exception, the claimant must show each of the following: (1) That a reasonable economic return will be denied unless removal of the existing units is accomplished. (2 ) That the proposed replacement project will not generate a reasonable economic return upon appl ication of this Ordinance where such project would otherwise generate such a return. (3) That the applicant acquired the property prior to February 27, 1990. (d) The City shall retain the services of a professional appraiser and cost analyst in order to evaluate an applicant's claim of hardship. The reasonable cost of such services shall be paid by the applicant. Upon the filing of a hardship application, the applicant shall deposit with the City the amount of - 2 - . . Five Thousand Dollars ($5,000.00), which shall be credited toward such costs. If additional sums are necessary to pay such costs, the applicant shall pay such additional amounts within ten (10) days of request by the City. If the costs are less than Five Thousand Dollars ($5,000.00), the remaining balance of the applicant's deposit shall be refunded. (e) If, based upon evidence presented, the City council determines that a hardship claim should be granted, the fee required by this Ordinance may be reduced in an amount deemed appropriate by the city council, but in no event shall the fee be reduced to lower than Five Thousand Five Hundred Dollars ($5,500.00) per low cost lodging unit removed. SECTION 2. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance I to the extent of such inconsistencies and no further, are hereby repealed or modified to that extent necessary to affect the provisions of this Ordinance. SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent - 3 - . . jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. The Mayor shall sign and the city Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective 30 days from the date of its adoption. APPROVED AS TO FORM: -f1.r6-1 ""-. \-ol.1f'- ROBERT M. MYERS City Attorney - 4 - J~ f~ /UUV2-/i:O;< even though the manufacturer or importer is also the . .--7~. ~ I '~I~ /A .. ~~ " ..) {'<4.Y' f ./ ......--.. ~ ../'ij./c.r--<...........I. ~. --... -~. retailer thereof and whether or not the amount of such tax is stated as a separate charge. ( iii) In connection with a person leasing, subleasing, or renting property, all amounts paid by a tenant or subtenant to a lessor or sublessee for the services performed, or materials used, or utilities or facilities furnished by the lessor or sublessor on the premises or in connection with the tenant's or subtenant's use, possession, or the right to possess the property, including but not 1 imi ted to income from laundry facilities on the property; any receipts paid by a tenant or land, or the right to use or possess land other than that upon I l-'~ subtenant to a lessor or sublessor for the use or possession of which the building or structure is located but which is used or subtenant for purposes related to the tenanc7all amounts paid as prepaid rent, and all amounts paid by a tenant or subtenant for (/// / ~,-,,// possessed or is available for use or possession by a tenant or the rental of any furniture, equipment, fixtures, garage, or storage space. (iv) Receipts of any person received .~ J ~ 0\/ o - r __ ~.. as commissions or fees earned, or charges of any character made compensation of any character received, for the performance of any service by said person or any of said person's employees and receipt of any person received as partial or full compensation or reimbursement for salaries, payroll taxes, fringe benefits, and any and all similar expenses for persons who are employees of said person and receipts of any person received as partial or full compensation or reimbursement for equipment, supplies, - 3 - 4Ifitv Wide statistics 4It 01/01/89 through 12/31/89 01/01/89 through 12/31/89 01/01/89 through 12/31/89 01/01/89 through 12/31/89 01/01/89 through 12/31/89 Part I Crime: 9203 All Other Arrests: (Except Traffic) 6269 Total: 15,472 Beat/RD 2.. Part I Cr~me: 1842 All other Arrests: 1528 (Except Traffic) Total: 3370 Soecial RD 2A Part I Crime: 106 All Other Arrests: 113 (Except Traffic) Total: 219 Specl.al RD 2B Part I crime: 285 All Other Arrests: 120 (Except TraffJ..c) Total: 405 Soec1.al RD 2C Part I Crime: 81 All Other Arrests: {Except Traffic} 58 Total: 139 . . even though the manufacturer or importer is also the retailer thereof and whether or not the amount of such tax is stated as a separate charge. ( iii) In connection with a person leasing, subleasing, or renting property, all amounts paid by a tenant or subtenant to a lessor or sublessee for the services performed, or materials used, or utilities or facilities furnished by the lessor or sublessor on the premises or in connection with the tenant's or subtenant's use, possession, or the right to possess the property, including but not limited to income from laundry facilities on the property: any receipts paid by a tenant or subtenant to a lessor or sublessor for the use or possession of land, or the right to use or possess land other than that upon which the building or structure is located but which is used or possessed or is available for use or possession by a tenant or subtenant for purposes related to the tenancy, all amounts paid as prepaid rent, and all amounts paid by a tenant or subtenant for the rental of any furniture, equipment, fixtures, garage, or storage space. (iv) Receipts of any person received as commissions or fees earned, or charges of any character made or compensation of any character received, for the performance of any service by said person or any of said person's employees and receipt of any person received as partial or full compensation or reimbursement for salaries, payroll taxes, fringe benefits, and any and all similar expenses for persons who are employees of said person and receipts of any person received as partial or full compensation or reimbursement for equipment, supplies, - 3 -