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SR-111291-7B ~ CA:RMM:tpSOjhpadv city council Meeting November 12, 1991 7---- L5 NOV 1 r~ j~N! Santa Monica, California STAFF REPORT FROM: Mayor and City Council City Attorney Appeal of TPC-150 - 2021 Cloverfie1d Boulevard TO: SUBJECT: At the October 8, 1991 meeting of the City Council, you directed the Ci ty Attorney to further investigate the tenant participating conversion application for 2021 Cloverfield Boulevard which was before you on appeal from a denial by the Planning Commission. Pursuant to this direction, the City Attorney's office sent letters to all tenants of the building, asking them to call to arrange a time for questioning before a hearing examiner by staff and by the applicant. Five of the eight applicants voluntarily agreed to the questioning. Two tenants did not respond to the request, and were subsequently subpoenaed to appear before the hearing examiner. One individual, who resides with his mother, the listed tenant for the unit, requested that he be allowed to appear on her behalf because of her poor health. The hearings were conducted on October 28 and 29, 1991 in the City Attorney's Office before a hearing examiner. A Deputy City Attorney questioned each tenant under oath regarding the circumstances surrounding the signatures on the Agreement to Conversion and Tenant Intent to Purchase forms. The applicant, - 1 - 7~ NOV t Z \1:J ~ Ms. Pongputmong, was represented by counsel at the hearings who conducted cross-examination. Ms. Pongputmong was also questioned under oath concerning the statements made by the tenants. Seven of the eight tenants testified concerning the TORCA application. Mr. Messih, who had asked to be questioned on behalf of Ms. Shihata, his mother, appeared at the hearing, but refused to answer questions and left the hearing. The circumstances regarding his refusal to testify are reflected in the accompanying transcript. The transcript of the tenants' testimony is attached hereto as Exhibit A. RECOMMENDATION Based on the tenants' testimony, it appears that a question regarding voluntariness of signature is raised only with respect to the tenant in Unit 4, Ms. Edna Wi1son-Hoesch. Ms. Hoesch's allegations of threat and coercion are denied by Ms. Pongputmong. The City Council must assess the credibility of the two witnesses .to determine whether Ms. Wi1son-Hoesch's signature was improperly obtained. Section 2002 of TORCA specifically prohibits an applicant from threatening that an owner or successor will cease operating the property as residential rental property if the proposed conversion does not occur. The application may also be denied if the application was the result of fraud, misrepresentation, or threat or similar coercion pursuant to TORCA section 2004. PREPARED BY: Robert M. Myers, city Attorney Mary H. Strobel, Deputy City Attorney Barry Rosenbaum, Deputy City Attorney - 2 -