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SR-402-001 (16) , ~8~:LL:11261/hpc city council Meeting 11-24-87 ~tJ2 --00/ / ti.., A-- NOv 2 4 1987 Santa Monica, California STAFF REPORT TO: Mayor and city council FROM: City Attorney SUBJECT: Application for Hardship Exemption from Ordinance Number 1416 (CCS) by Paul and Beverly Bezaire for Property Located at 2912 Third Street PROJECT DESCRIPTION Applicants seek permission to submit a project application for a four unit apartment building under the R-3 property development standards which existed prior to adoption of Ordinance Number 1416 (CCS) (hereinafter "Ocean Park Interim Ordinance") . Applicants t proposed proj ect consists of three two-bedroom apartment units and one one-bedroom apartment unit, wi th a total of eight parking spaces. The proj ect involves demolition of an existing single family home. The existing home is exempt from the Rent Control Law. As proposed, the project has three stories and is 33 feet in height at the highest point. The roof peak does not exceed 28 feet above street level. According to the applicants, the lot slopes down from the street with a total drop of 10 feet from the front to rear property lines. Applicants claim that the slope of the lot causes the need to go up to 33 feet in the rear of the building. - 1 - /41....,+ HOV 2 4 1987 '"" If applicants developed the subject property in accordance with the requirements of Ordinance Number 1416 (CCS), they would still be allowed to build four units. However, the project would be limited to two stories and 27 feet in height, although the roof could extend to a maximum of 35 feet if the roof pitch was 30% on at least two sides. In effect, compliance with the height requirements would necessitate that the applicants either reduce the size of some or all of the four units or reduce the project to three units instead of four units. Expenditures and Liabilities Appl icants purchased the subj ect property for $ 304 , 000 on June 18, 1987. Applicants' down paYment and Closing costs total $91,200. Applicants further claim to have made expenditures in the amount of $5,302 prior to July 28, 1987. Those expenditures represent escrow costs, taxes, insurance and finance charges. Applicants incurred liabilities in connection with the proposed development in the amount of $4,956.13 prior to July 28, 1987. Claimed liabilities represent $3,176.13 for a site architectural survey and preliminary design work and $1,780.00 for preliminary studies and consultation. Hardship Applicants purchased the subject property just prior to adoption of the Ocean Park Interim Ordinance. Applicants opened escrow on the property in May, 1987 and closed on June 18, 1987. Prior to close of escrow, applicants claim to have received information from the Planning Division confirming that they would he subject to R3 property development standards. In addition, - 2 - t _.... appl1cants received a Residential Building Report from the City, dated June 19, 1987, which made no mention of a pending Ocean Park Interim Ordinance. Applicants proceeded to contract with architects and engineers to begin designing their proposed proj ect in June, 1987. Although applicants had contracted with architects and engineers prior to the July 28, 1987 cut-off date, the architects with whom they contracted were unable to meet the July 28, 1987 deadline, thus applicants were unable to file a completed application by that date. Applicants brought their circumstances to the attention of the city Council at the July 28, 1987 and August 11, ~987 meetings. Applicants' intention when they purchased the subject property was to build their retirement home on the top floor of the proposed four unit apartment building. The other three uni ts, according to the appl icants, are necessary to make the applicants' home financially feasible. Furthermore, applicants state that due to childhood polio, Mrs. Bezaire requires an elevator in the residence. Applicants claim that the proposed additional rental units are necessary to defray the cost of the elevator as well as the cost of the land. Applicants state that they would not have purchased the subject property had they known they would not be able to construct their proposed project. RECOMMENDATION A reasonable argument can be made in favor of granting applicants' hardship exemption application and a reasonable argument can be made to the contrary. On the one hand, applicants claim that they would not have purchased the subject - 3 - property if they had known that they could not build a three story apartment project. They claim that the only way they can afford this property is to build a three story, four unit project where a single family home currently exists. Applicants, however, did not have architectural or engineering work done in connection with the project until after purchasing the property. By that time, the Ocean Park Interim Ordinance was pending before the City Council, and applicants were aware that their architect could not provide plans for filing until after July 28, 1987. Application of the Ocean Park Interim Ordinance would not preclude applicants from building an apartment building. It would, however, require that applicants re-design the project so that it complies with the new height limit. This would necessitate either reducing the size of some or all of the four proposed units or reducing the size of the building to three units. It is recommended that the City Council take one of two courses of action: 1. Grant applicants' application for hardship exemption and adopt the attached findings in support thereof; or 2. Deny applicants' application for hardship exemption and adopt the attached findings in support thereof. PREPARED BY: Robert M. Myers, City Attorney Laurie Lieberman, Deputy city Attorney - 4 - ~ CA:RMM:LL:11263/hpc City Council Meeting ll-24-87 Santa Monica, California PROPOSED FINDINGS IN SUPPORT OF DENIAL OF HARDSHIP EXEMPTION APPLICATION BY PAUL AND BEVERLY BEZAIRE FOR PROPERTY LOCATED AT 2912 THIRD STREET 1. Applicants seek a determination from the City Council of a hardship exemption which would enable them to submit an application for a proposed four-unit apartment project at 2912 Third street in Santa Monica under the R-3 property development standards which existed prior to adoption of Ordinance Number 1416 (CCS). 2. The project site is zoned R-3. 3. A single family home is currently located on the site and would be demolished in order to make way for the proposed apartment building~ 4. The single family home is exempt from the Rent Control Law. 5. Applicants purchased the subject property for $304,000 on June 18, 1987. 6. Applicants' down payment and closing costs total $91,200 and further expenditures in the amount of $5,302, representing escrow costs, taxes, insurance and finance charges, were made prior to July 28, 1987. 7. Applicants' only expenditures prior to July 28, 1987 were in connection with the purchase of the property. - 1 - A. 8. Applicants incurred liabilities in connection with the proposed development in the amount of $4,956.13 prior to July 28, 1987. Those liabilities represent $3,176.13 for a site architectural survey and preliminary design work and $1,780.00 for preliminary engineering studies and consultation. 9. Although applicants claim to have had no knowledge of the pendency of Ordinance Number 1416 (CCS) when they purchased the property, applicants did have knowledge of the ordinance prior to incurring liabilities for architectural and engineering services. 10. Applicants incurred liabilities for architectural and engineering services with the awareness that such work would not be completed for filing with the Planning Division by July 28, 1987, the cut-off date for filing under the pre-existing property development standards. Thus, these liabilities were not incurred in reliance on property development standards which existed prior to the adoption of Ordinance Number 1416 (CCS), but rather were incurred with knowledge that the standards contained in Ordinance Number 1416 (CCS) would be in effect at the time the applicant was filed. 11. Pursuant to Ordinance Number 1416 (CCS), applicants could still build an apartment building on the subject property, however, applicants would be limited to four units in a two-story project which did not exceed 27 feet in height, except that the roof may extend to a maximum of 35 feet if the roof pitch is 30% or more on at least two sides. 12. Applicants' claim that construction of a three story, four-unit apartment building that complies with the City - 2 - r~uirements in effect prior to the date of adoption of Ordinance Number 1416 (CCS) rather than a two story, three- or four-unit apartment building that complies with the requirements set forth in Ordinance Number 1416 (CCS) is insufficient to constitute a hardship requiring exemption from Ordinance Number 1416 (CCS). 13. The staff report submitted by the City Attorney to the city Council for its hearing of November 24, 1987 is hereby incorporated and adopted as though fully set forth herein. - 3 - .... CA:RMM:LL:ll264/hpc City Council Meeting 11-24-87 Santa Monica, California PROPOSED FINDINGS HARDSHIP EXEMPTION BEVERLY BEZAIRE AT 2912 IN SUPPORT OF GRANT OF APPLICATION BY PAUL AND FOR PROPERTY LOCATED THIRD STREET 1. Applicants seek a determination from the City Council of a hardship exemption which would enable them to submit an application for a proposed four-unit apartment project at 2912 Third Street in Santa Monica under the R-3 property development standards which existed prior to adoption of ordinance Number 1416 (CCS). 2. The project site is zoned R-3. 3. A single family home is currently located on the site and would be demolished in order to make way for the proposed apartment building. 4. The single family home is exempt from the Rent Control Law. 5. Applicants purchased the subject property for $304,000 on June l8, 1987. 6. Applicants' down payment and closing costs total $91,200 and further expenditures in the amount of $5,302, representing escrow costs, taxes, insurance and finance charges, were made prior to July 28, 1987. 7. Applicants' only expenditures prior to July 28, 1987 were in connection with the purchase of the property. - 1 - .. 8. Applicants incurred liabilities in connection with the proposed development in the amount of $4,956.13 prior to July 28, 1987. Those liabilities represent $3,176.13 for a site architectural survey and preliminary design work and $1,780.00 for preliminary engineering studies and consultation. 9. Applicants claim that they would not have purchased the subj ect property had they known of the pendency of Ordinance Number 1416 (CCS). 10. Applicants claim that in conversations with Planning Division staff prior to purchasing the subj ect property, they were not informed of the pending ordinance which would change City requirements for development of the property. 11. The Residential Building Report produced by the City on June 18, 1987 made no mention of the pending ordinance. 12. Applicants claim that the proposed three story, four-uni t apartment building is necessary in order to make the property economically feasible and that they paid the price that they did on the assumption that three stories could be built. 13. Applicants' claim is sufficient to constitute a hardship requiring exemption from Ordinance Number 1416 (CCS). 14. The staff report submitted by the city Attorney to the City Council for its hearing of November 24, 1987 is hereby incorporated and adopted as though fully set forth herein. - 2 -