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SR-8D (8) 80 PCD:SF:DKW:AS:f:\plan\share\council\strpt\econh CounCll Mtg: August 9, 1994 Santa Monlca, Callfornla AUG 0 9 1994 TO: Mayor and City Council FROM: City Staff SUBJECT: Recommendatlon to Adopt an Emergency Ordlnance Amending Ordinance 1736 (CCS) Concerning the Processlng of Certiflcate of Economic Hardshlp Appllcatlons for Designated Landmark Structures. INTRODUCTION ThlS report recommends that the City Counell adopt an emergency ordlnance amendlng the Eart~quake Recovery Act {Ordlnance 1736 (CCS)) to provide expedlted processlng of Certiflcate of EconomlC Hardshlp applicatlons for deslgnated landmark structures that suffered substantial damage from the Northridge Earthquake. BACKGROUND On August 2, 1994, the Clty Council directed that an amendment to Ordlnance 1736 be prepared that modifies the tlmel1nes setforth 1n Santa Monica Mun1c1pal Code Section 9 36.170 regard1ng Certificate of Economic Hardship appllcatlon procedures. Under the eX1stlng prOV1S1ons, the lnltial Certlflcate of Economic Hardshlp public hearlng must occur withln 45 days of the date the appl1cation lS deemed completed. The Landmarks Comm1sslon then has up to SlX months, or one year 1f the pro] ect requlres an EnV1ronmental Impact Report (EIR) , to render a decision on the appllcatlon. If the CommlSSlon finds that all reasonable use or economlc return from a designated landmark will be deltfGdo 9 199't - 1 - 80 property owner, the appl1cat1on can be delayed for up to an add1tional 120 days to provLde tiwe to 1nvest1gate other opt1ons that may lead to the property's preservat1on. At the end of thlS time per1od, 1f the Commission finds that the property cannot be put to a reasonable economlC use I the application 1S approved. Assuming an EIR is not requ1red, th1S process would take approxlmately one year. If the appl1cation lS appealed to C1ty Council, final disposition could take an add1t1onal 3 months. The purpose of this amendment is to compress these tlmellnes for red or yellow tagged earthquake damaged landmark structures In addit1on, the Landmarks Commission's role would be mod1f1ed, w1th the Comm1SS1on evaluating the evidence presented for eCCn0'111C hardsh1p at the same time as the alternat1ves to enccurage preservat1on. The amendment proposes that the appl1cat1on be deemed complete wlth1n 7 worklng days of submlttal. The Landmarks Corrmisslon publ1C hearlng would be held wlthin 45 days after the appl1cat1on 1S deemed complete. The Landmarks Comm1SS1on1s evaluat~on and determination on the Cert1f1cate of Economic Hardshlp would occur no more than 60 days after the application is deemed complete. If appealed, the Councll's hearing on the matter would follow w1thin 30 days of the Comm1SS1on I s recommendation Applicatlon processlng would be reduced from over one year to no more than 95 days Appl1cat1ons could be processed under the time limits set forth In the ord1nance. In addition, to further exped1te the process, 1t is recommended that the publ1C hear1ng not1f1cat1on occur not less - 2 - than 7 days I rather than the standard 10 days I prlor to the hearing. The ordinance also speclfles that, except for any additional eVldence or testimony requested by the City Council, the Council rely on the eVldence presented to the Landmarks CommlSSlon. Addltional eVldence may be suhmltted to the Councll only lf such eVldence could not feaslbly have been presented to the Landmarks CommlSSlan. This does not preclude the publlc I S ahlllty to testlfy at the appeal hearlng, or prevent the suhmlttal of rebuttal testimony, the necesslty of WhlCh would not have been evident prior to the Landmarks CommlSSlon hearing. The expedited process 18 necessary In llght of the fact that damaged buildings tend to rapldly deterlorate and may eventually become a threat to public safety Other -:::.han the process for Certiflcate of Economic Hardship appl~catlons, no other prOV1Slons or procedures ln the Lanamarks Ordlnance wlll change. It 1S estlmated thlS ordinance will apply to less than SlX properties. BUDGET/FINANCIAL IMPACT The recommendatlon presented in this report does not have any budget or fiscal lmpact. RECOMMENDATION It lS respectfully recommended that the Cauncll adopt the - 3 - attached emergency ordinance. Prepared by: Suzanne Frick, Dlrector D. Kenyon Webster, Planning Manager Amanda Schacter, Senlar Planner Plannlng & Zoning D1V1Slon Plannlng and Communlty Development Department - 4 - CA:f:\atty\muni\laws\mhs\echard.1 City council Meeting 8-9-94 Santa Monica, California ORDINANCE NUMBER (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING THE EARTHQUAKE RECOVERY ACT CONCERNING PROCESSING OF CERTIFICATES OF ECONOMIC HARDSHIP FOR RED AND YELLOW TAGGED STRUCTURES WHEREAS, on April 19, 1994 the city Council adopted Ordinance Number 1736(CCS) , the Earthquake Recovery Act, establishing procedures and standards for repair and reconstruction of earthquake damaged structures; and WHEREAS, it is necessary to amend the Earthquake Recovery Act to add provisions expediting the review of certificates of economic hardship for historic structures which have been yellow or red tagged; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. Findings and Purpose. (a) With limited exceptions, the provisions of the Landmarks Ordinance, Municipal Code Chapter 9.36 require the issuance of a Certificate of Economic Hardship before the demolition of any 1 structure of Merit, Landmark or Landmark Parcel, or building or structure within a Historic District ("Historic structurell). The process for obtaining a certificate of Economic Hardship entails at least two hearings before the Landmarks Commission, and a possible appeal to the city Council. The time estimated to complete such process is six months to one year, because, among other things, the Landmarks Commission is authorized to take up to six months, or one year if the project requires an Environmental Impact Report, to render a decision on the certificate application. (b) Numerous Historic structures have been damaged by the January 17, 1994 Northridge earthquake ("Earthquakell) and its aftershocks, and owners seek to obtain Certificates of Economic Hardship as a preliminary step to demolition. In some cases, the initial damage suffered by the structure has become progressively worse since the Earthquake due to aftershocks and other effects of the passage of time. (c) The City wishes to expeditiously determine whether such structures are eligible for demolition while at the same time not sacrificing the city's goal of safeguarding its historic heritage and other goals set forth in Sect ion 9.36.020 of the Landmarks Ordinance. (d) The purpose of this Ordinance is to streamline and expedite the processing of applications for a Certificate of Economic Hardship for red- and yellow- tagged buildings, but not to change the standards which apply to the approval or disapproval of such applications. 2 SECTION 2. Section 22 is hereby added to Ordinance Number 1736 (CCS), the Earthquake Recovery Act, to read as follows: SECTION 22. certificate of Economic Hardship. An application for a certificate of Economic Hardship which is filed in connection with an application for a demolition permit for a structure which has been posted with a no-entry (red-tagged) or limited entry (yellow- tagged) notice as a result of damage caused by the January 17, 1994 Northridge Earthquake or its aftershocks ("Earthquake") shall be subj ect to the provisions of Chapter 9.36 of the Municipal code, except as amended below: (a) Timelines. (1) Any application f1led pursuant to section 9.36.170 shall be deemed complete or incomplete within seven (7) working days after the Planning Division receives a substantially complete application together with all information, plans, specifications, statements of work, and any other materials and documents required by the application form supplied by the city. (2) The public hearing required by section 9.36.170(c) shall be held within forty-five (45) days of the date on which an application for a Certiflcate of Economic Hardship was deemed complete. 3 (3) The notice of public hearing required by Section 9.36.170(c) shall be given not less than seven (7) days before the date scheduled for the hearing. (4) The time in which the Commission must render a decision on the application pursuant to section 9.36.170(d) shall be not later than sixty (60) days after the applicat10n was deemed complete. (5) Any notice of appeal filed pursuant to section 9.36.180(b} concerning Commission determination on an application for a Certificate of Economic Hardship must be filed within five (5) working days of the date that such determination was made or deemed approved or disapproved. (6) The hearing required by section 9.36.180(c) shall be held within thirty (30) days after the notice of appeal is properly filed with the Director of Planning and the City Clerk. (?) The notice of public hearing required by section 9.36.180(d) shall be given not less than seven (7) days before the date scheduled for the hearing. (8) The investigation, recommendation, and other actions required by Section 9.36.160(d} shall not cause a delay in the application, but shall be completed within the time specified in subsection (a) (4) above. (9) The time periods specified in subsections (a) (1) through (a) (8) above may be extended upon mutual 4 agreement of the Commission and applicant. (b) Evidence on Appeal. Except for additional evidence or testimony specifically requested by the City Council, the City Council on appeal shall rely on the evidence presented to the Landmarks Commission. Additional evidence may be submitted to the City council only if such evidence could not feasibly have been presented to the Landmarks commission. Nothing in this section is intended to affect the ability of the public to testify at the public hearing on the appeal, or to prevent the submittal of rebuttal testimony the necessity of which would not have been evident prior to the Landmarks Commission hearing. SECTION 3. Any provision or provisions of the Santa Monica Municipal Code or appendices thereto, inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, are hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 4. This Ordinance is declared to be an urgency measure adopted pursuant to the provisions of Section 615 of the Santa Monica City Charter. It is necessary for preserving the public health, safety, or welfare as set forth in the Findings and Purpose section of this Ordinance. 5 SECTION 5. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconsti tutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of all remaining portions of this Ordinance. The City counci 1 hereby declares that it would not have passed this Ordinance if any portion, section, subsection, sentence, clause, or phrase would subsequently be declared invalid or unconstitutional. SECTION 6. 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 be effective upon its adoption. APPROVED AS TO FORM: ~-(.~' laLL~ MARSHA JONES MOUTRIE ~ city Attorney 6