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SR-7-A (54) \ <- -, \-;_1....... ~,\ \ ' , '~,,,- " ",' \ " ~f5 1 ~ A \)iJ-f..e~ {CJ If - 17' ~ t . fl~~f . San a Mon~ca, Ca11 orn~a "' X\ ,\\ , \ \... ; ,>" LUTM:PB:DKW:SMW:al50.pcword.plan council Mtg: October 8, 1991 TO: Mayor and city council FROM: city staff SUBJECT: Appeal of a Planning commission denial Tenant-Participating Conversion 150 to allow conversion of an eight-unit apartment building condominiums at 202l Cloverfield Boulevard. of the to INTRODUCTION This report recommends that the Council deny the appeal and uphold the Planning Commission's decision to deny Tenant-Participating Conversion 150, 2021 Cloverfield Boulevard, on September 4, 1991. The Planning Commission denied a request to allow the conversion of an eight-unit apartment building to condominiums at 202l Cloverfield Boulevard with a finding that tenant signatures were obtained through coercion and misrepresentation. The applicant is appealing the decision and contending that the time limit for approval of the subdivision map expired prior to the Planning Commissions' decision. BACKGROUND The Planning Commission denied Tenant-Participating Conversion (TPC) 150, 2021 Cloverfield Boulevard on September 4, 1991 with a finding that there had been coercion and misrepresentation of participating tenants (Attachment B). The application was first heard on May l~_~: At the May hearing, in response to several participating tenant objections, - 1 - ~ r. the Commission requested that staff verify that signatures were legally obtained on the intent to purchase forms and confirm that tenants understood their rights under Article XX Tenant ownership Rights Amendment to the Charter of the City of Santa Monica, California (TORCA). Following consultation with the City Attorney's office concerning the form of the letter, staff contacted each tenant by registered mail on May 21, 1991 to inquire whether tenants felt that they had been adequately informed of their rights and if they believed that coercion or misrepresentation was used to obtain their signatures on the tenant intent to purchase or agreement to conversion forms (see Attachment D). The letter requested a written response within lO days. Responses were received by the tenants of units #1, 3, 7 and 8. The tenants of units #1, 3 and 7 rescinded their signatures on the tenant intent to chase forms. staff spoke with the tenant of unit #5 0 7/1/ /19 wh;j ---~ signature on indicated that she did not wish to rescind her either of the forms. The tenant of unit #8 also did not rescind her signature on either of the forms. None of these tenants claimed coercion or misrepresentation by the applicant (Attachment D). In view of the incomplete response and the seriousness of the matter, a second letter was sent by staff to tenants on June 24, 1991 by regular mail, again requesting a written response within 10 days (Attachment D). Responses were received by the tenants of units #4 and #6 on 6/27/91 and 7/8/91, respectively (Attachment D). These letters were received after phone - 2 - conversations wfth the tenants. A written response was not received by the tenants of unit #2, however, one of the tenants spoke at the May hearing against TPC 150 (Attachment D). The applicant was not sent copies of either the first or second letters. The tenants of units #2 and #6 did not originally sign either the tenant agreement to conversion or tenant intent to purchase forms. They had both indicated that they believed coercion and misrepresentation were used to gain tenant signatures. The letter received by the tenant of unit #4 indicated that she was threatened with "...immediate eviction or going out of business if (the applicant) didn't get enough signatures to covert to condominiums. II (Attachment D). The staff report recommended that TPC 150 be denied at the hearing of 9/4/91 based on the letter received from the tenant of unit #4 on 7/8/91. Her statement indicating coercion by the applicant reduced the percentage of cosigning tenants from 75% to 63%, below the required 2/3rds or 67% of cosigning tenants required for approval (Attachment D). Although the tenants of units #l, 3 and 7 stated they no longer intended to purchase their units, this did not affect the validity of the initial signatures. On the date of the 9/4/9l hearing, the tenant of unit #4 submitted a second letter to staff at the Planning and Zoning counter in which she stated she wised to "retract" her initial letter and stated that she "wrote the previous letter because of some misinformation received from other tenants and a - 3 - ~~ misunderstanding. of my rights and responsibilities." The second letter d~d not specifically retract the previous letter1s allegations of threats and coercion. (Attachment G). staff then recommended approval of TPC 150 based on this letter (Attachment E) . The planning Commission denied TPC 150 with findings that coercion and misrepresentation of participating tenants had occurred, and thus the application did not meet the requirements of Article xx. The Commission found that the specific allegation of coercion had not been retracted, and that there was sufficient evidence in the record to deny the application. Without the signature of the tenant in question, the minimum percentages set by TORCA are not met. staff recommended to the Commission upon receipt of the letter dated 9/4/91 that TPC 150 be approved with findings and conditions for TORCA apartment conversions under Article xx. The Commission determined otherwise and TPC 150 was denied. As the Commission made a finding of coercion and misrepresentation of participating tenants for TPC 150, staff is recommending that their decision of 9/4/91 to deny TPc l50 be upheld. Applicant's Appeal The applicant is appealing the Planning Commissions' decision to deny TpC 150 (Attachment A). She contends that the Planning Commission was required to approve or disapprove the subdivision map within 50 days of the date the application was deemed complete (Attachment A). The sUbdivision application was deemed - 4 - complete on 3/27/91 (Attachment H}. The application was continued at the May 1, 1991 hearing pending staff inquiry and no subsequent hearing date was set. The Commission did not request an extension of the subdivision deadline from the applicant at that time. The applicant contends that responses received by staff from participating tenants were untimely in relation to the subdivision action deadline for the tentative map (Attachment A) . Staff was instructed by the Commission on 5/l/9l to contact each of the participating tenants to inquire about possible coercion or misrepresentation by the applicant. As stated previously, two letters and several phone calls yielded tenant responses from all of the tenants except that of unit #2. At the 9/4/91 hearing, the City Attorney's office rendered an opinion that under the Subdivision Map Act, the application would only be deemed approved to the extent it complied with the local law. Therefore, if the Commission found the application did not comply due to fraud or coercion in obtaining signatures, the deemed approved provision would not apply. The applicant also contends that her letter dated 8/26/91 was not included in the staff memorandum to Planning Commission dated 9/4/91 (Attachment A). This letter was received after Planning commission packets had been sent to the Commission on 8/28/91. A copy of the letter was given to each Commissioner on the night of the 9/4/91 hearing, as is customary. - 5 - Required Notification staff noticed the May 1/ 1991 and September 4, 1991 Planning commission hearings and the October 8, 1991 City Council meeting for Tenant-Participating Conversion 150 as required per the Municipal Code. Tenants and property owners within a 300 foot site radius were notified of these hearings and the city Council meeting. Additionally, each tenant of 2021 Cloverfield Boulevard was sent copies of the application and of the staff reports for the Planning commission hearing as required by Article XX. The applicant did request that a copy of the staff report for the September 4, 1991 Planning commission hearing be sent to her. Unfortunately, through an oversight, the staff report was not sent to the applicant. BUDGET/FINANCIAL IMPACT The recommendation presented in this report does not have any budget or fiscal impact. RECOMMENDATION It is respectfully recommended that the Council deny the applicant's appeal and uphold the Planning Commission's decision to deny Tenant-Participating Conversion l50 with the findings contained in the statement of Official Action dated 9/4/9l. ATTACHMENTS A. Appeal form dated 9/9/91. B. statement of Official Action dated 9/4/91. c. Staff Memorandum to Planning commission dated 5/l/91. D. Staff Memorandum to Planning Commission dated 9/4/91. - 6 - t A E. Supplemental Staff Memorandum to Planning Commission dated 9/4/9l. F. Letter from Sunisa Pongputmong to Planning Commission dated 8/26/91. G. Letter from Edna Wilson-Hoesch to staff dated 9/4/91. H. Letter from staff to Sunisa Pongputmong dated 3/27/91. Prepared by: Paul Berlant, Director of LUTM D. Kenyon Webster, Planning Manager Susan M. White, Assistant Planner Planning Division Land Use and Transportation Management Department PC/a150 09/23/91 - 7 -