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SR-6-D (60) ~ calf2;J?\992 ---' ~ / r .. - LUTM:PB:DKW:SW/T1B3MEM.PCWORD.PLAN Santa Monica, . . Council Mtg: August 11, 1992 TO: Mayor and City council FROM: City Staff SUBJECT: certification of statement of Official Action for Appeal of Tenant-Participating Conversion 183 and Vesting Tentative Tract Map No. 50638, 2110 4th street INTRODUCTION This report transmits for City council certification the statement of Official Action for the appeal of the above listed Tenant-Participating conversion. on June 30, 1992, the City Council upheld the appeal and denied the proposal to convert a 27-unit apartment building to condominiums. BUDGET/FINANCIAL IMPACT This recommendation will have no budget or financial impact. RECOMMENDATION It is respectfully recommended that the City council approve the attached statement of Official Action which contains findinqs for upholding the appeal to deny Tenant-participating Conversion 183. ... Prepared by: Paul Berlant, Director of Land Use and Transportation Management Drummond Buckley, Assistant Planner Attachment: A. statement of Official Action dated 6/30/92. ~ -l) SE? 8 1992 AUG t 1 1992 '" . .. .. . . ~ STATEMENT OF OFFICIAL ACTION 'l< .. R~ T .. / ,cJ1fO TPC 183, VTTM 50638 NUMBER: LOCATION: 2110 4TH Street APPLICANT: HR Capital-Rossmore APPELLANT: D. Longstreet, L. Auker, M. Hale, L. Gale, L. privo CASE PLANNER: Drummond Buckley, Assistant Planner REQUEST: Appeal of Planning Commission Approval of Tenant Participating conversion, Vesting Tentative Tract Map CITY COUNCIL ACTION 6/30/92 Date. X Appeal upheld based on the following findings. Appeal denied. Other. EFFECTIVE DATE(S) OF ACTION(S) : FINDINGS l. Article XX, section 2004(a) of the city Charter of the City of Santa Monica provides that a Tenant-Partic~pating Conversion Appl~cation (hereinafter "App11cation"), together with any required tentative subdivision map or tentative parcel ~ap, shall be den1ed if the Tenant-Part1cipat1ng Conversion Application fa11s to meet any of the requirement of this Article, or was the result of fraud, misrepresentation, or threat or similar coercion. 2. This Tenant-participating Conversion Application fails to meet the requ1rement of Art1cle XX, Section 2004(a) o-f the City ., ChartE!r of the City of Santa Monica, in that it is signed by ~coslgning tenants occupying less than two-thirds of all the residential units 1n the building; in that it attached Statements ~of Tenant Intent to Purchase, signed by Intending to Purchase Teiants~ccuPYing less than fifty percent of the total number of ~e ident ~l un1ts in the bu~ld1ng; and in that at least one ~~~>was obtained by fraud or m~srepresentation. , ~ : - 1 - . 3. section 2002(f) requires that the Application is signed by cos~gning tenants occupying not less than two-thirds of all the residential units in the building. Section 2DD1(n) defines "tenant" as: "Any person who ~s an authorized tenant of an owner of a residential rental bu~ld~ng for which a Tenant-Participating Conversion Application is being processed." Sect~on 2DD1(b) defines "cosigning tenant" as: "Any tenant agreeing to the conversion by his or her signature on the Tenant-Participating Conversion Application who has personally occupied his or her unit continuously for a period of at least six (6) months prior to the date he or she signs the Tenant-Participating Conversion Application. II 4. The Application contained the signatures of persons occupying 19 of the 27 residential units. However, the signatures of the persons signing for Units 12 and 16 do not qualify as cosigning tenants. 5. The signator for Un1t 12, Gary Murakami, is not listed as the tenant on the Rental Agreement subm~tted by applicant. Nor is he 11sted on the 1992 Rent Checklist submitted by applicant. Sabrina Kriegs is listed as the tenant on the Rental Agreement and Rent Checklist. KRIEGS testified at the June 16, 1992 city Council meeting that she was away from her unit in Europe from one year from November 26, 1990 to November 1991; that MURAKAMI moved into her unit within one week of her departure in November 1990i that she continued to pay the rent to the building owners durlng her absence and that MURAKAMI paid rent to KRIEGS. The declaration submitted by MURAKAMI states that he occupied the unit for one year. MURAKAMI does not meet the criteria for IIcos1gning tenant" as he is not an author:ued tenant of the owner, but rather a subtenant of KRIEGS. MURAKAMI's signature cannot be counted as a slgnature of a cosigning tenant. 6. The signature of KRIEGS agreeing to the conversion was dated January 22, 1992, and was submitted after the Application was deemed complete September 18, 1991. KRIEGS' signature is not valid, as the signatures of the cosigning tenants agreeing to conversion must be submitted with the Application. Even had KRIEGS signed before the time of Application submittal, september 1991, she would not have qualifled as a cosigning tenant, based upon her testimony that she was out of the country between November 1990 and November 1991. Thus, she did not personally occupy unit 12 continuously for six months prior to the date the Application was submltted. 7. The signator for Unit 16, John Ellis, is not listed as the tenant on the Rental Agreement submitted by applicant. Eric Anderson is listed as the tenant. ELLIS testified at the June 30, 1992 City Council meeting that he sublets the apartment from ANDERSON; that ANDERSON retained the actual contractual relationship with the building owners; that at the time of signing the Tenant Participating ConverS1on Application, the rent was pald to the building owners by checks drawn on ANDERSON's account, not ELLIS' account; that when he was given the Application and Intent to Purchase forms to sign, he was told it - 2 - . was a formality so that ANDERSON could get necessary paperwork; and was told that it was necessary to sign the documents to receive the paperwork. ELLIS does not meet the criteria for "cosigning tenant" as he is not an authorized tenant of the owner, but rather a subtenant of ANDERSON. ELLIS' signature cannot be counted as a signature of a cosign1ng tenant. 8. Without the signatures of MURAKAMI or ELLIS, the Application contains signatures of cosigning tenants occupying 17 of 27 units. The Application thus 15 signed by cosigning tenants occupying less than two-thirds of all the resident1al units 1n the building, and fa11s to meet the requirements of Section 2002(f). 9. In addition, based upon the testimony of ELLIS regarding the characterization of the documents presented to him for signature described in Paragraph 7 above, the Application is the result of fraud or misrepresentation, and thus must be denied pursuant to section 2004(a). - 10. section 2002(j) requires that the Application has attached statements of Tenant Intent to Purchase, signed by Intending to Purchase Tenants occupying not less than fifty percent of the total number of residential units in the building. section 2002(d) deflnes UIntend1ng to Purchase Tenant" as: "Any tenant who has personally occupied his or her unit in the building continuously for a period of at least six months immediately preceding the date the tenant signs a Tenant Intent to Purchase." 11. The Application attached Tenant Intent to Purchase forms signed by persons occupying 14 of the 27 residential units. However, the signatures of the persons signing for Units 12 and 16 do not qualify as Intendlng to Purchase Tenants. 12. The Tenant Intent to Purchase form for unit 12 is signed by MURAKAMI. For the reasons set forth in Paragraph 5 above, MURAKAMI is not a tenant, but a subtenant of KRIEGS. MURAKAMI thus does not qualify as an Intending to Purchase Tenant. The Tenant Intent to Purchase form signed by MURAKAMI cannot be counted as a Tenant Intent to Purchase form signed by an ~ Intending to Purchase Tenant. 13. The Tenant Intent to Purchase form signed by KRIEGS was submitted after the application was deemed complete September 18, 1991, and was dated January 22, 1992. This form is not valid, as the Tenant Intent to Purchase form signed by Intending to Purchase Tenants must be submitted with the Application. Even had the form been signed by KRIEGS before the time of Application submittal, September 1991, she would not have qualified as an Intending to Purchase Tenant based upon her testimony that she was out of the country between November 1990 and November 1991. Thus, she did not personally occupy unit 12 continuously for a period of at least six months immediately preceding the date the Tenant Intent to Purchase form is signed. - 3 - - - . · 14. The Tenant Intent to Purchase form for unit 16 1S signed by ELLIS. For the reasons set forth In Paragraph 7 above, ELLIS is not a tenant, but a subtenant of ANDERSON. ELLIS thus does not qualify as an Intending to Purchase Tenant. The Tenant Intent to Purchase form signed by ELLIS cannot be counted as a Tenant Intent to Purchase form signed by an Intend2ng to Purchase Tenant. 15. Without the Tenant Intent to Purchase forms signed by MURAKAMI and ELLIS, the Application attaches Tenant Intent to Purchase forms signed by Intending to Purchase Tenants occupying 12 of 27 units. The Appl1cation thus attaches Tenant Intent to Purchase forms signed by Intending to Purchase Tenants occupying less than fifty percent of all the residentlal units in the building, and fails to meet the requirements of section 2002(j). 16. Substantial questions were raised about the eligibility of other signatures. However, in light of the above findings, no determlnation 15 requlred with respect to other units. VOTE ON THE MOTION TO UPHOLD THE APPEAL: Ayes: Abdo, Genser, Holbrook, Katz, Olsen, Vazquez, Zane Nays: Abstain: Absent: NOTICE: If 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 1S governed by Code of civil Procedure Section 1094.6, which prov1sion has been adopted by the City pursuant to 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. Clarice Dykhouse Date CITY CLERK - 4 -