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CA:RMM:rmsor
City Council Meet1ng 11-15-83
Santa Monica, California
STAFF REPORT
TO:
Mayor and City Council
FROM:
C1ty Attorney
SUBJECT:
Findings and Conditions in Connection with
Approval of Tentative Tract Map Number 37984,
Conditional Use Permit Number 358, and Development
Review Number 207 (631-705 Bay Street)
At its meet1ng on November 8, 1983, the City Council
approved Tentat1ve Tract Map Number 37984, Conditional Use Permit
Number 358, and Development Rev~ew Number 207 and directed the
C1ty Attorney to return on November 15, 1983, with findings and
cond1tions.
RECOMMENDATION
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It is respectfully recommended that the City Council make
the follow1ng findings, decision, and conditions in connection
w1th Tentative Tract Map Number 37984, Conditional Use Permit
Number 358, and Development Review Number 207:
FINDINGS
1. The subject property is a sixteen (16) unit apartment
building located at 631-705 Bay Street, Santa Monica, California.
The SUbJect property is zoned R-2. The bU11~ing is commonly
known as La Belle Monique.
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2.
Billie z.
Sorrel
{"Sorrel"} purchased the subject
property on July 31, 1964.
3. Commenclng 1n the latter part of 1978, Sorrel commenced
the
process of "renovating"
the subject property.
Sorrel
refinancen
the suh)ect property on numerous occasions and
performed substantial improvements to the building.
4. In January 1979, Sorrel gave eviction notices to all
tenants of the sUbJect property.
5. On Aprl1 10, 1979, the electorate of the City of Santa
Monica added Article XVIII to the Santa Monlca City Charter
ent1tled "Santa Monica Rent Control Charter Amendment ("Rent
Control Law). "
The Rent Control Law regulated,
amona other
thlnq s,
the Clrcumstances under which tenants could be lawfully
evicted and the circumstances under wh~ch landlords could remove
rent
controlled apartments from the market by demol~tion,
conversion and other means.
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6. In conjunction with the renovations to the subJect
property,
Sorrel filed Petition For Rent Increase 0079 on August
29,
1979,
seeking rent increases for all units pursuant to the
stannards and procedures set forth in Section 1805 of the Santa
Monica City Charter.
7.
On December 17,
1979, the Santa Monica Rent Control
Board granted rent 1ncreases for all units ranging hetween $332
and
$487
per
unit.
The Board also granted conditional
authorizat1on for rent 1ncreases based upon $163,000 1n proposed
cap~tal 1mprovements.
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8. On August 1,
1980, Sorrel filed an application for
Removal PerMit No. 059R pursuant to Section 1803(t) of the Santa
Mon~ca C1ty Charter.
On May 28, lQ81,
the Rent Control Board
denied Removal Permit No. 059R based upon find1ng8 that the
removal of these controlled rental units would adversely affect
the supply of affordable housing in the City and that Sorrel
could make a fa1r return by mainta1ning the units as rental
apartments.
9. On January 7,
1981,
Sorrel filed Petition For Rent
Increase 0471 seeking additional rent increases for all the units
at the subject property. On May 28, 1981, the Rent Control Board
denied any rent increases.
10. On August 25, 1981, Sorrel f11ed a Pet1tion For Writ Of
Mandate 10 Los Angeles Super10r Court, 81111e Z. Sorrel v. Rent
Control Board, et al.: LASC Case No. C 379899. On January 14,
1982, Judge John L. Cole 1ssued an Alternative Wr1t of Mandate 1n
~
the case.
11. On June 9,
1982, Sorrel filed a petit10n for relief
pursuant to Chapter 11 of the United State Bankruptcy Code: Case
No. LA 82-09514-RO.
12. On August 3 and 25, 1982, a trial was conducted in Case
No. C 379899 in Department 88 of Los Angeles Superior Court,
Judge Leon Savitch presiding. On January 31, 1983, Judge Savitch
qranted a peremptory wr1t of mandate compellinq the Rent Control
Board to set aS1de 1ts prior decision in Petition For Rent
Increase 0471 and remanded the case for further proceedings
pursuant to the recently adopted Regulation 4100.
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13. On March 31,
1983,
the Rent Control Board filed a
Not1ce of Appeal in the case. On April 19, 1983, Sorrel filed a
Notlce of Cross-Appeal 1n the case.
14. Pursuant to the court ordered remand, Sorrel ref1led a
new Petition For Rent Increase I-066S in conjunction w1th a new
appl1cat1on for Removal Permlt l03R-B. On June 2, 19B3, the Rent
Control Board voted to qrant Removal Permit I03R-B. The Rent
Control Board adopted findings of fact and conclusions of law in
support of thlS determinat10n in a Notice Of Decision Of Rent
Control Board.
15. Sorrel filed a Notice of Intent to Convert the subject
property with the Santa Monica Planning Department on July 15,
1983.
Sorrel also filed an application for Tentative Tract Map
Number 37984, Conditional Use Perm1t Number 358, and Development
Revlew Number 207.
16 . On
October
17,
1983, the Santa Monica Planning
Commission
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den1ed the application for Tentative Tract Map Number
37984, Conditional Use Permit Number 358, and Development Review
Number 207. The denial was based upon the fact that the proposed
conversion was lnconsistent with Proqram 25 of the Housing
Element of the General Plan as adopted on January 25, 1983.
proqram 25 of the Housing Element limits the conversion of rental
un2ts to market rate condominiu~s until the number of rental
unlts demolished or converted in 1978 and 1979 are replaced. The
Plann~ng Commission found that the units removed in 1978 and 1979
had not heen replaced as of October 17, 1983.
Sorrel filed a
timely appeal of this decis~on.
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17. On Novemher 8,
1983,
the City Councll cons1dered
Sorrel's appeal.
The Clty Council voted to grant the appeal
thereby reversing the actions of the Planning Commission and
approving Tentatlve Tract Map Number 37984,
Conditional Use
Permit Number 358, and Development Review Number 207.
18. Although
Tentative
Tract
Map
Number 37984 ~s
~nconsistent wlth the Housing Element of the General Plan, and
although under normal circumstances the tentative map would be
required to be disapproved under the Subdivis~on Map Act, the
Clty Council determ~nes that approval of tentative map is
appropriate for the following reasons:
a. Prior to the adoption of the Housing Element,
Sorrel lncurred suhstantlal expenses to obtain a removal permit
from the Santa Monica Rent Control Board for the purpose of
condomlnlum
conversion.
A removal permit is a condition
precedent to obtaining the right to convert an apartment building
to condominiums in the City of Santa Monica.
h. Sorrel is the only landlord who sought a renoval
~
permlt for purposes of condomlnium converson prior to the
adoptlon of the City's Houslng Element.
c. All of Sorrel's tenants consent to the converS1on
and desire to purchase the1r units.
d.
The
conversion
will
not
result
in
the
displacement of tenants.
Because of the singularly unique
circumstance in WhlCh Sorrel 1S placed, the decision with respect
to Sorrel will have no precedent and will not encourage the
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dlsplacement of tenants in other buildings through other
converS1on activ1ty.
e. Because application of the newly adopted Housing
Element to Sorrel would possibly result in an unconstitutional
app11cat~on to Sorrel since Sorrel faces loss of the property and
may not, in the determinat10n of the Rent Control Board, earn a
fa1r return if the unit rema1ns a rental unit, the City Council
hel~eves in this one instance the Housing Element should not be
applied. The City Council believes that it is unlikely to
encounter such a unique situation in the future and that all
future applicants will be required to comply with the Housing
Element.
19. Conditional Use Permit Number 358 is consistent w~th
Municipal Code Section 9122 in that the proposed huilding meets
the standards for conversion set forth in Municipal Code Section
9122F.
20. Development Review Number 207 is consistent ~~ith
Ordinance Number 1251 (CCS) and will not prejudice the ability of
the City to adopt a land use element.
DECISION
Based upon the foregoing findings, the City Council of the
C1ty of Santa Monica approves Tentative Tract Map Number 37984,
Conditional Use Permit Number 358, and Development Review Number
207 subJect to the following conditions:
1. In accordance with Municipal Code Section 9122E(3)~
condominium aqreements shall contain, but not be limited to,
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adequate
provis10ns
for
maintenance,
repair, and upkeep;
provisions that 1n the event of destruction or abolishment,
reconstruct1on shall be 1n accordance w1th codes in effect at the
t1me of such reconstruction: and prov1sions for dedication of
land or estahlishMent of easements for street widen1ng or other
publ1C purpose.
2. The CC&R's shall include agreement by the subdlvider
that the following shall be guaranteed by the subdlvider:
a. Common area items, including but not limited to,
the roof, plumbing, heating, air-conditioning,
and electrical
systems, until one (1) year elapses from the date of the sale of
the last lndlvidual unit sold.
b. Items provided or installed within individual
units
~
the
subd1vlder,
including but not limited to,
appliances,
flxtures, and facilitles, for a perlod of One (I)
year from the date of close of escrow of each individual unit.
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3. The CC&R's shall provide that the non-subdivider owners
have the right to select or change the management group or the
homeowner association ninety (90) days after sale or transfer of
title of f1fty-one percent (51%) of the unltsi the subdivider
agrees not to change the CC&R's submitted to obtain approval of a
proJect without the consent of the Planning Commisslon: and
subsequent owners agree to make no changes in the CC&R's imposing
non-discrimination
restr1ctlons without the consent of the
Planning Commisslon.
4. The
subdivider
shall submit an estimate of and
guarantee the maintenance costs for a period of twelve (12)
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months beginninq at the cl ase of escrow on the first -t..."'1......~ l ~ ~;.
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fir~~ units sold,
the subdivider to be responsible for all costs of normal
maintenance in excess of the estiMate.
5. No tenant of the subJect property on the date of
approval of the tentative map shall be evicted, except for gooo
cause,
until written notice of not less than one (1) year from
the date of tentative approval has been glven to all tenants to
locate alternative housing.
6. Parking shall be assigned to and travel with each unit
at a ratio not less than one space per unit and all tandem spaces
shall
be assigned to the same unit as the indepennently
accessible
space comprising the other half of the tandem
arrangement, such assignment to be included in the CC&Rs.
7. Each tenant, and each person applying for the rental of
a unit in such residential real property, has, or will have,
received all applicable notices and rights now or herea~ter
required by the SUbdivision Map Act,
including the notice
required by Government Code Section 66452.8.
Each tenant shall
receive 10 days' written notification that an application for a
publiC report will be, or has been, suhmitted to the Department
of Real Estate,
and that such report will be available on
reques t.
The written not~ces to tenants shall be deemed
satisfied if such notices comply with the legal requirements for
service by mail.
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8. Each of the tenants of the proposed condominium has
been, or will be, given written notification within 10 days of
approval of a f1nal map for the proposed conversion.
9. Each of the tenants of the proposed condominium has
been, or w111 he, given lAD days' written notice of intention to
convert prior to termination of tenancy due to the conversion or
proposed conversion. This requirement shall not alter or abridge
the rights or obligations of the parties in performance of their
covenants,
including, but not limited to, the provIsion of
services, payment of rent or the obligations imposed by Sections
1941, 1941.1, and 1941.2 of the Civil Code.
10. Each of the tenants of the proposed condominium hns
been, or wl11 be, given notlce of an exclusive right to contract
for the purchase of hIS or her respective unit upon the same
terms and conditIons that such unit will be Initially offered to
the general publIC or terms more favorable to the tenant. The
right shall run for a period of not
~
less than 90 days from~the
date of issuance of the subdivision public report pursuant to
Section 11018.2 of the Business and Professions Code, unless the
tenant qives prior written notice of his or her intention not to
exercise the right.
11. Prior to submittal of the fInal map, the subdivider
shall cert1fy that the structural, electrical,
fire and life
safety systems of the structure are in a condition of qood repair
and maintenance.
12. Prior
to
the SUbmittal of the final map, the
subd1vider shall certify that the plumb1ng is in sound condition,
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that all hot water heaters are insulated,
that all pip~s for
c~rculating hot water are insulated unless the Building Officer
determines that such insulation 18 infeasible, that the property
has adequate and protected trash areas, and that the property has
1ndividual gas and electric meters unless the Building Officer
determ1.nes
that
indiv:Ldual
metering
is
inadvisable
or
impractical.
13. The CC&Rs shall contain a non-discrimination clause in
substantially the following form:
No unit owner shall execute or file for
record
any
instrument
which imposes a
restriction
upon
the
sale,
leasing or
occupancy of h:LS or her unit on the basis of
sex,
race,
color,
religion,
ancestry,
national
origin, age, pregnancy, marital
status,
faml1y compositlon, or the potential
or actual occupancy of minor children. A
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condominium
association
shall
not
discriminate on the basis of sex,
race,
color,
religion, ancestry,
national origin,
age,
pregnancy,
marital
status,
family
composlt1on,
or the potential or actual
occupancy of minor children.
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14. The CC&Rs shall be approved by the Clty Attorney for
compliance w~th the conditions set forth above.
PREPARED BY:
Robert M. Myers, City Attorney
.,.
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