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SR-121791-6D , '-D . CA:RMM:bar937 ccOOadrlIi1i91 City Council Meeting 12-17-91 Santa Monica, STAFF REPORT TO: Mayor and city council FROM: city Attorney SUBJECT: Certification of statement of Official Action Denying Appeal of Planning commission Denial of TPC 150 and VTTM 50590 to Allow the conversion of an Eight-unit Apartment Building to Condominiums At its hearing held on November 12, 1991, the City Council denied an appeal and upheld the Planning Commission's denial of Tentative Participating conversion Application 150 and Vesting Tentative Tract Map 50590 to allow the conversion of an eight-unit apartment building to condominiums. The City Council directed staff to prepare a statement of Official Action containing its findings. The accompanying Statement of Official Action has been prepared and sets forth the City Council findings with respect to this appeal. RECOMMENDATION It is respectfully recommended that the accompanying Statement of Official Action be approved. PREPARED BY: Robert M. Myers, City Attorney Barry A. Rosenbaum, Deputy City Attorney '-I> - 1 - DEe 1 7 JUJ . SANTA MONICA CITY COUNCIL STATEMENT OF OFFICIAL ACTION PROJECT NUMBER: Tenant-Participating Conversion 150, Vesting Tentative Tract Map 50590 LOCATION: 2021 Cloverfield Boulevard APPLICANT: Sunisa Pongputmong CASE PLANNER: Susan White, Assistant Planner REQUEST: Appeal of Planning commission Denial of Tenant-Participating Conversion 150 and Vesting Tentative Tract Map 50590 to allow the conversion of an eight-unit apartment building to condominiums. CITY COUNCIL ACTION 11/12/91 Date. Approved project based on the following findings and subject to the conditions below. xxx Denied TPC 150, VTTM 50590. Other. Following public hearings held on October 8, 1991 and November 12, 1991, the City Council rejects the appeal and denies TPC 150 and VTTM 50590 based upon the following findings: FINDINGS 1- The applicant seeks to convert her eight-unit apartment building to a condominium project pursuant to Santa Monica City Charter Section 2000 et seq. (t'TORCAt') . 2. Pursuant to TORCA, the applicant was required to file a Tenant-Participating Conversion ("TPC") application and a Vesting Tentative Map ( "VTTM" ) application with the city's Planning Department. TORCA further requires that prior to filing the TPC application, the applicant had to obtain tenant approval of the conversion by tenants occupying no less than 2/3 of the residential units in the building. 3. On February 6, 1991, the applicant submitted her TPC application, TPC 150. The Planning Department accepted this application for filing on the same date. This application - 2 - -- . . indicated that tenants occupying 75% of the units in the building approved of the proposed conversion. The applicant submitted her VTTM application on March 19, 1991, VTTM 50590. The Planning Department accepted this application for filing on March 27, 1991. 4. The applicant's TPC application and VTTM application came before the Santa Monica Planning Commission on May 1, 1991 for public hearing. At that hearing, several tenants of the subject property objected to the approval of these applications contending that the required tenant approval for the conversion had not been legally obtained. These tenants contended that the tenant approval had been obtained through coercion and misrepresentation. 5. Based on the objections voiced at the public hearing, the Planning Commission continued the hearing to enable city staff to verify that the tenant approval for the conversion had been properly obtained. 6. city staff subsequently sent letters to all tenants at the apartment building inquiring whether tenant approval of the conversion had been obtained through coercion or misrepresentation. Tenants residing in six: of the units responded. Three of the tenants responding indicated that the applicant had applied coercion to obtain the required tenant approval. One of the tenants who was listed by the applicant as approving of the conversion, Edna Wilson-Hoesch, specifically wrote in response that the applicant had threatened her with immediate eviction or going out of business pursuant to the Ellis Act if the tenant did not indicate her approval of the conversion. While Ms. wilson-Hoesch subsequently wrote a letter asking that her first letter be retracted, she did not specifically retract her allegations of coercion and misrepresentation. 7. The Planning Commission denied TPC 150 and VTTM 50590 on September 4, 1991 finding that there had been coercion and misrepresentation in obtaining tenant approval for the proposed conversion. The Planning Commission further found that the applicant would not have obtained the required tenant approval for the conversion without the coerced approval of one of the tenants. 8. On September 9, 1991, the applicant appealed the Planning Commission denial of TPC 150 to the Santa Monica City council ("city Council"). 9. The City Council held a public hearing on this appeal on October 8, 1991. After taking public testimony, the city Council directed the City Attorney's Office to conduct further investigation into the allegations of coercion and misrepresentation alleged by certain tenants at the property. 10. Pursuant to this direction, the City Attorney's Office conducted hearings held before a hearing examiner on October 28 - 3 - . . and 29, 1991. Seven of the eight tenants of this building testified under oath concerning the circumstances surrounding their decision to support the proposed conversion of the apartment building. Ms. Wilson-Hoesch specifically testified that the applicant threatened her with eviction or going out of business pursuant to the Ellis Act if the tenant did not agree to the proposed conversion. These threats occurred on several occasions over a period of months continuing up to the time that the tenant actually agreed to the conversion in January 1991. Ms. Wilson-Hoesch further testified that the applicant's actions coerced her into agreeing to the conversion. She additionally testified that she wrote the second letter to City staff seeking to retract her initial letter alleging coercion and misrepresentation because of pressure exerted on her by the applicant to retract the first letter. The applicant dictated to Ms. Wilson-Hoesch the information that the applicant wanted in the second letter. 11. TORCA Section 2004 (a) provides that: "A Tenant- Participating Conversion Application, along with any required tentative subdivision map or tentative parcel map shall be denied if the Tenant-Participating Conversion Application fails to meet any of the requirements of this Article [TORCA], was the result of fraud, misrepresentation, or threat or similar coercion...." 12. TORCA section 2002{l) provides that a Tenant-participating Conversion Application must contain a declaration by the owner that the owner did not coerce a tenant to agree to the conversion of the property by threatening that the owner would cease operating the property as residential rental property pursuant to the Ellis Act. 13. Based on the evidence presented before the City Council, the city Council finds that the Tenant-Participating Conversion Application was the result of misrepresentation or coercion in that the applicant coerced and threatened one of the tenants with eviction and going out of business if the tenant did not agree to the conversion. The City Council also finds that the applicant would not have obtained the required tenant approval for this conversion without the coerced approval of one of the tenants. 14. Based on the evidence presented before the City Council, the city Council further finds that the owner's declaration in her TPC application that she did not threaten to cease operating her property as residential rental property in order to gain tenant approval of the conversion was false. 15. Since TPC 150 is denied because this application was the result of coercion and misrepresentation, VTTM 50590 must similarly be denied pursuant to TORCA Section 2004(a). VOTE ON MOTION TO DENY APPEAL Ayes: Abdo, Zane, Vasquez, Olsen, Katz, Holbrook, Genser Nays: - 4 - - ~ Abstain: Absent: NOTICE since this is a final decision not subject to further appeal under the city of Santa Monica comprehensive Land Use and Zoning ordinance, the time within which judicial review of this decision must be sought is governed by Code of civil Procedure section 1094.6 which provision has been adopted by the city pursuant to Santa Monica Municipal Code Section 1400. I hereby certify that this statement of Official Action accurately reflects the final determination of the city council of the city of Santa Monica. Signature Date Name and Title - 5 -