SR-12-12-1990-6W
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Council Mtg: December/l~, 1990
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Santa Monica, California
TO: Mayor and City Council
FROM: city staff
SUBJECT: Request to Set a Public Hearing for January 22, 1991 on
an Appeal of TPC 126 and VTTM 50120 at 2702 lIth street
INTRODUCTION
This report recommends that the City Council set a public hearing
for January 22, 1991, to hear an appeal on Tenant Participating
Conversion (TPC) l26 and Tentative Map (VTTM) 50120 at 2702 llth
street.
BACKGROUND
On November 7, 1990, the Planning Commission approved a Tenant
Participating Conversion (TPC 126) and Tentative Map (VTTM 50120)
for a six-unit apartment building at 2702 Eleventh street. The
Tenant Participating Conversion was approved with special
conditions required by the Planning Commission that the applicant
provide 1) additional documentation verifying tenant length of
occupancy,
2)
additional
documentation
establishing
a
landlord/tenant relationship, and 3) a parking layout signed by
the Parking and Traffic Engineer within 30 days of Planning
Commission action.
The apartment building was removed from the rental market through
Ellis Act evictions on July 12, 1987. On January 19, 1990, an
Occupancy Permit was granted by the Planning Division with
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6-1#
l;~a
findings and conditions to allow re-occupancy of the residential
units as rentals subject to Rent Control Board regulations.
On November 19, 1990, an appeal was filed by Council Member Ken
Genser and Mayor Dennis Zane. The reasons stated for the appeal
are 1) to determine whether the application is in compliance with
Proposition V which was passed on the November 6, 1990 ballot, 2)
to determine if the application is in compliance with the purpose
of Article XX of the City Charter, and 3) to determine if there
is factual evidence that the cosigning tenants are qualifying
tenants.
BUDGET/FINANCIAL IMPACT
The recommendation presented in this report does not have any
budget or fiscal impact.
RECOMMENDATION
It is respectfully recommended that the city council set a public
hearing for January 22, 1991, to hear an appeal of Tenant
Participating Conversion 126 and Tentative Map 50120.
Prepared by: D. Kenyon Webster, Principal Planner
Johanna Marie Gullick, Associate Planner
Planning Division
Land Use and Transportation Management Department
Attachments:
A. Appeal Form
B. Planning Commission staff Report (1l/7/90)
JMG:shk
PC/Tempcc
1l/28/90
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! -~.1
Clty of
Santa Monica
Community and Economic Development Department
Planning and Zoning Division
(213) 458-8341
APPEAL FORM
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FEE: $100 00
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~9vember 19, 1990
Date Filed
Received by
Receipt No
Name Councl1 Member Ken Genser and Mayor Dennls Zane
Address City Counei 1 Office. 1685 Main StrE'Pt. Si'lnta r~nni(,;L rA Qn40l
Contact Person Counei 1 f.1embl"r Kpn (;pnspr Phone 4fiFl-R?fl1
Please descnbe the project and deciSIOn 10 be appealed
TORCA Pro~ect. 2702 - 11th Street. santa Moni~a.
Case Number
Address
Applicant
Onglnal hearing date
Onglnal action
Please state the specific reason(s) for the appeal (1) to determHle whether the applicatlOn is in
compllance wlth Proposltion V WhlCh was passed on the Nov. 6 ballot~
(2) to determlne if the applicatlon is In compliance wlth the ourpose of
Artlcle 20 of the City Charter~ and (3) to detF'rmlnp If thr.rf' lS ffldtJi'll
evide~ce thi'lt thp. ~;onlno tpni'l~t~ i'lrp ~l~n thp auallfvlnq tenants,
-'
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(\ r; "( t . ~ " addrtJOna/ space IS needed, use bacll. of form
Signature tJ=:r-J J~ Date
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November 19t 1990
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PLANNING AND ZONING DIVISION
Land Use and Transportation Management Department
MEMORANDUM
DATE:
November 7, 1990
TO:
The Honorable Planning Commission
FROM:
Planning Staff
SUBJECT: TPC 126, VTTM 50120, Six-unit Tenant-Participating
Conversion
Address: 2702 Eleventh street
Zoning: R2
Owner(s): George Balanis and Tou1a Balanis
Background: This is an application for approval of a Tenant-
Participating Conversion (TPC) submitted under the provisions of
the Tenant Ownership Rights Charter Amendment (TORCA) approved by
the voters of the City of Santa Monica in June 1984. As required
by the provisions of TORCA, the public hearing held by the Plan-
ning Commission on the TPC application is held simultaneously
with the hearing on the tentative map for the conversion.
Building permits for the two story, six unit apartment building
were issued in October 1963. There are a total of one one-
bedroom unit, two two-bedroom units and three three-bedroom
units.
The parking standards at the time of the building's construction
required 1 parking space for one-bedroom units, 1. 25 parking
spaces for two-bedroom units, and 1.5 parking spaces for three-
bedroom units. A total of 8 parking spaces were required at the
time of the building'S construction. A variance was granted on
August 8, 1963 to allow 2 of the 8 required parking spaces to be
in tandem with a condition that the tandem spaces be assigned to
occupants of the same unit. The TORCA application and parking
plan show 10 parking spaces of which 4 are tandem. Thus, the
number of standard and tandem spaces is inconsistent with the
original approval.
Planning staff has asked the appl icant to have the Parking and
Traffic Division review the new parking layout. Article XX, the
Torca law, requires that a building may be required to comply
with the applicable Zoning Code in effect as of the date the
building was constructed. The TORCA application parking plan
proposes to assign units 1, 2, 3, and 6 two parking spaces and
units 4 and 5 one parking space. staff has conditioned the ap-
proval of this application (Condition 16, see page 11) upon
receipt of a parking and circulation plan approved by the City'S
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Parking and Traffic Engineer, since the layout is different than
when the variance was approved in 1963.
The tenancy, as stated on the TORCA application, is 6 months for
all tenants. The building being considered for conversion was
removed from the rental market through Ellis Act evictions on
July 12, 1987. On January 19, 1990, an Occupancy Permit was
granted by the Planning Division with findings and conditions to
allow reoccupancy of the residential units subject to Rent Con-
trol Board regulations. Given that this property was Ellised,
and that none of the original tenants evicted currently occupy
the building, careful scrutiny of this application is warranted.
As a result, Planning staff has requested proof that the Cosign-
ing Tenants and Intending to Purchase Tenants maintained an es-
tablished landlord/tenant relationship with the applicant. The
applicant has not yet provided the substantiating information.
staff has conditioned approval of this application on the es-
tablishment of tenancy by the applicant within 30 days of Plan-
ning Commission action of this application (see condition 15,
page ll).
Under a March 23,1990 opinion issued by the city Attorney, an
apartment building owner who resides in an apartment building of
which they are an owner, cannot be considered a "cosigning Ten-
ant" or an "Intending to Purchase Tenant" in a Tenant-
Participating Conversion filed under the provisions of TORCA.
This TORCA application includes the vote of the building owner as
a Cosigning Tenant and an Intending to Purchase Tenant, therefore
Planning staff cannot include the owner's vote as a Cosigning
Tenant or an Intending to Purchase Tenant. The result is the
number of cosigning Tenants and Intending to Purchase Tenants is
reduced to 83% from 100%.
Notwithstanding the above, the Planning Commission may deny this
application ONLY upon a specific finding that the proposed con-
version fails to meet the requirements of Article XX of the city
Charter (TORCA) or the state Subdivision Map Act or is the result
of fraud, misrepresentation, or threat or similar coercion.
City staff has found no basis for denial of this application and
therefore recommends approval with the findings and conditions
set forth below.
Summary Information
Number of Total units
6
Units with Cosigning Tenants
units with Tenants Signing
Intent to Purchase
5 (83% of total units)
5 (83% of total units)
units with senior or
Disabled Tenants
1
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Tenant-Participating Conversion Findings
1. This Tenant-Participating Conversion Application meets the
requirements of Article XX of the City Charter of the city
of Santa Monica along with all mandatory requirements of
the Subdivision Map Act of the state of California.
[reference Sec. 2004 (a), Article XX]
2. The Tenant-Participating Conversion Application has been
deemed complete and accepted for filing. At the time of
filing it met the requirements of section 2002 of Article
XX of the City Charter for a complete application. The
subject application:
(a) Identifies the building, its owner and its tenants and
contains a declaration that such building is a
Qualifying Building, the specific details of which are
incorporated into these findings by reference.
(b) Sets forth, for each tenant occupied unit, the follow-
ing sales information, which is incorporated into
these findings by reference:
1) The maximum sales price for each unit.
2) The minimum down payment for each unit.
3) If seller financing is offered, the m~n~mum
amount to be financed, the maximum rate of inter-
est and the minimum term of the loan offered by
the seller.
(c) Sets forth, for each unit, the following common area,
maintenance and budget information, which is incorpo-
rated into these findings by reference:
1) The plan for the assignment and use of all park-
ing spaces.
2) The plan for the use of all common area
facilities.
3) The occupancy and management plans and pOlicies.
4) A list of all repairs and alterations, if any,
which will be performed before the close of the
first escrow.
5) The plan for allocating costs and expenses for
the building.
6) A prepared monthly maintenance budget based upon
actual maintenance expenses for at least the pre-
ceding two years plus a reserve fund which states
the monthly maintenance assessment for each unit.
7) The procedures for the allocation and use of such
reserve funds.
(d) contains a declaration with the following information:
I) That there has been a building inspection report
of the accessible portions of the entire build-
ing, including but not limited to, the roof,
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walls, floors, heating, air conditioning, plumb-
ing, electrical systems or components of a simi-
lar or comparable nature, and recreational
facilities of the building prepared by a Building
Inspection Service or similar agency within the
preceding three (3) months.
2) That, for each tenant occupied unit, a written
statement setting forth any substantial defects
or malfunctions identified in the building in-
spection report regarding the unit and the common
areas has been delivered to the unit or a tenant
occupying the unit.
3) That, for each tenant occupied unit, a copy of
the complete building inspection report has been
delivered to the unit or a tenant occupying the
unit.
(e) That the form of tenant ownership for which the
application is submitted will be a Condominium.
(f) Is signed by cosigning tenants occupying 100% (not
less than two-thirds) of all the residential units in
the building. (If there is more than one tenant in a
unit, the signature of only one tenant is required.)
(g) Identifies the cosigning tenants and the units occu-
pied by such tenants and lists all other tenants known
to the owner in the building and the units they
occupy.
(h)
Contains a declaration that
cosigning tenant was obtained
in writing, to such tenant of
in subsections (a) (b) (c)
section.
the signature of each
only after the delivery,
the information required
(d) and (e) of this
(i) contains a declaration that all lawful notices have
been given of the application for conversion.
(j) Has attached to the application statements of Tenant
Intent to Purchase, signed by Intending to Purchase
Tenants occupying lOOt (not less than fifty percent)
of the total number of residential units in the build-
ing. (If there is more than one tenant in a unit, the
signature of only one tenant is required.)
(k) That, for each tenant occupied unit, a Tenant Intent
to Purchase has been delivered to the unit or a tenant
occupying the unit.
3. The following procedures have been followed in the pro-
cessing of this Tenant-Participating Conversion
Application:
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(a) A Tenant-Participating Conversion Application was ac-
cepted for filing by the City and meets the require-
ments of Section 2002 of Article XX of the City
Charter.
(b) The Tenant-Participating Conversion Application was
filed by the owner on August 6, 1990, not less than
forty (40) days prior to the filing of the application
for the tentative sUbdivision/parcel map on September
18, 1990.
(c) Within five (5) days of the filing of the Tenant-
Participating Conversion Application, the City sent
notice to every tenant in the building stating that a
Tenant-Participating Conversion Application had been
filed and that any objections thereto may be filed
with the City within twenty-five (25) days from the
date of the notice.
(d) upon the filing of the application for the required
tentative subdivision/parcel map, the Tenant-
Participating Conversion Application and required map
were scheduled for hearing and processed in accordance
with the procedures for the processing of subdivision
maps.
Tentative Map Findings
1. The proposed subdivision, together with its prov~s~ons for
its design and improvements, is cons istent with the ap-
plicable general and specific plans as adopted by the City
of Santa Monica. [Reference California Government Code
Sec. 66473.5 and Santa Monica Municipal Code Sec. 9362
(a) ]
2 . The owner (s) and each tenant on the subj ect property
received copies of this staff report and recommendation at
least three days prior to this public hearing.
3. Notification of this hearing has been in conformance with
Section 9360 of the Santa Monica Municipal Code.
4. Each of the tenants of the proposed condominium proj ect
has received, pursuant to Government Code section 66452.9,
written notification of intention to convert at least 60
days prior to the filing of the tentative map pursuant to
Section 66452. Each such tenant, and each person applying
for the rental of a unit in such residential real proper-
ty, has, or will have, received all applicable notices and
rights now or hereafter required by the Subdivision Map
Act. Each tenant has received or will receive lO days
written notification that an application for a public re-
port will be, or has been, submitted to the Department of
Real Estate, and that such report will be available on
request. The written notices to tenants shall be deemed
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satisfied if such notices comply with the legal require-
ments for service by mail.
5 . Each of the tenants of the proposed condominium proj ect
has been, or will be, given written notification within 10
days of approval of a final map for the proposed
conversion.
6. Each of the tenants of the proposed condominium proj ect
has been, or will be, given 180 days written notice of
intention to convert prior to any termination of tenancy
due to the conversion or proposed conversion. This will
not alter or abridge the rights or obligations of the
parties in performance of their covenants, including, but
not limited by sections 1941, 1941.l, and 1941.2 of the
Civil Code, and set forth herein as conditions of
approval.
7. Each of the tenants of the proposed condominium proj ect
has been, or will be, given notice 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 will 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 gives
prior written notice of his or her intention not to exer-
cise the right. This will not alter or abridge the rights
or obligations of the parties set forth herein as condi-
tions of approval.
8. This project has been found to be categorically exempt
from the California Environmental Quality Act of 197Q
(section 15301) and from the City of Santa Monica Guide-
lines for Implementation of the California Environmental
Quality Act (Article 5.a) as a Class I exemption.
Note: Individual findings required for approval of non-Ten ant-
Participating Conversions specified in Santa Monica Municipal
Code Sec. 9l22F either are inconsistent with or redundant with
the requirements of Article XX and therefore are not applicable
to or necessary for approval of Tenant-participating Conversions.
Conditions
I. The owner shall agree to each condition imposed in connec-
tion with the approval of a Tenant-Participating Conver-
sion Application. written consent shall be filed prior to
the approval of the required final parcel/subdivision map
and shall be in a form approved by the City Attorney. The
filing of such written consent shall constitute an agree-
ment, with the City of Santa Monica and each Participating
Tenant, binding upon the owner and any successors in
interest, to comply with each and every condition imposed
in connection with approval of this Tenant-Participating
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Conversion Application. The City and any Participating
Tenant shall have the right to specific enforcement of
this Agreement in addition to any other remedies provided
by law.
2. The owner shall offer and continue to offer the exclusive
right to purchase each rental unit in the building to the
Participating Tenant thereof upon the terms set forth in
the application, without change, for a period of not less
than two (2) years from the date of final approval by the
California Department of Real Estate or the date the first
unit in the building is offered for sale, if no approval
by the California Department of Real Estate is required.
At the beginning of the second year, the Tenant Sale Price
may be adjusted according to any change reflected in the
Price Index [as defined in Section 2001(j) of Article XX
of the City Charter] occurring during the proceeding year.
Upon the written acceptance of the offer by the Par-
ticipating Tenant at any time within the two year period,
escrow shall open within thirty (30) days from the written
acceptance by the Participating Tenant. Unless otherwise
agreed by the parties, the period of the escrow shall not
exceed sixty (60) days.
3 . No Participating Tenant shall at any time after the ap-
proval of this Tenant-Participating Conversion Application
be evicted for the purpose of occupancy by the owner, oc-
cupancy by any relative of the owner, or for demolition of
the unit. In the event the participating Tenant does not
exercise his or her right to purchase within the time
period set forth, the owner may transfer the unit without
any price restriction to the participating Tenant or any
other person. However, in the event such transfer is to
someone other than the Participating Tenant, the transfer
shall be expressly made subject to the rights of the Par-
ticipating Tenant to continue to occupy the unit as pro-
vided for in Article XX of the city Charter. The provi-
sions of California Government Code Section 7060 et seq.
("The Ellis Actll) shall not be used to evict any non-
purchasing Participating Tenant.
4. Each unit shall at all times remain Subject to all terms
and conditions of Article XVIII of the City Charter, ex-
cept Section 1803 (t), before, during and after any Ten-
ant-Participating Conversion. If any unit is rented, the
maximum allowable rent for each unit shall be no greater
than the maximum allowable rent allowed under Article
XVIII of the City Charter.
5. Prior to the approval of the required final parcell
subdivision map for the Tenant-Participating Conversion,
each participating tenant shall be informed in writing, in
a form approved by the city, of his or her rights under
Article xx of the City Charter.
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6. All non-purchasing participating Tenants who are senior
citizens or disabled on the date of filing the Tenant-
Participating Conversion Application and who personally
occupied a rental unit in this qualifying building con-
tinuously for at least six (6) months immediately preced-
ing the date of the filing of this Tenant-Participating
Conversion Application shall have a right without time
limitations to occupy their units subject to the provi-
sions of Article XVIII of the city Charter and shall be
given the non-assignable right to continue to personally
reside in their unit as long as they choose to do so sub-
ject only to just cause evictions provided that the evic-
tion is not for the purpose of occupancy by the owner,
occupancy by any relative of the owner, or for demolition
of the unit. In addition, should the maximum allowable
rent provision of Article XVIII of the city Charter no
longer apply, the rent for each such unit may be adjusted
annually to allow an increase of no more than the increase
in the Price Index [as defined in Section 200l(j) of Arti-
cle XX of the City Charter] plus a reasonable pro rata
share of capital replacements for the building common
areas or agreed to capital improvements for the unit.
within sixty (60) days after the approval of this Tenant-
Participating Conversion Application, any senior citizen
Participating Tenant who is entitled to the protections of
this provision may designate in writing the name of one
person who is entitled to continue living in the rental
unit under the same terms as the senior citizen if the
senior citizen predeceases him or her and if the person
designated is residing in the unit at the time of the
death of the senior citizen. The person designated by the
senior citizen must be a lawful occupant of the unit, at
least fifty-five (55) years of age on the date of the
filing of this Tenant-Participating Conversion
Application.
All other non-purchasing Participating Tenants who per-
sonally occupied a rental unit in this qualifying building
continuously for at least six (6) months immediately pre-
ceding the date of filing of this Tenant-Participating
Conversion Application shall have a right without time
limitations to occupy their units subject to the provi-
sions of Article XVIII of the City Charter and shall be
given the nonassignable right to continue to personally
reside in their unit subject only to just cause eviction
for a period of five (5) years from the date the first
unit is offered for sale. No eviction shall be allowed
during this time period except for just cause provided the
eviction is not for the purpose of occupancy by the owner,
occupancy by any relative of the owner, or demolition of
the unit. In addition, during this time period, should
the maximum allowable rent provisions of Article XVIII of
the City Charter no longer apply, the rent for each unit
may be adjusted annually to allow an increase of no more
than the increase in the Price Index [as defined in Sec-
tion 2001 (j) of Article XX of the City Charter] plus a
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reasonable pro rata share of capital improvements for the
building's common areas or agreed to capital improvements
for the unit.
All rights under this condition shall expire upon the ter-
mination of the landlord-tenant relationship between the
owner and the participating tenant entitled to the protec-
tions of this condition.
For purposes of this condition, "just cause" means one of
the reasons set forth in subdivisions (a) through (g) of
Section 1806 of the City Charter.
7. The requirements of these conditions shall be set forth in
the Declaration of Covenants, Conditions, and Restric-
tions, or equivalent document, and shall specifically name
the Participating Tenants in each unit entitled to the
benefits and protections of Article XX of the City
Charter. The City Attorney shall review and approve for
compliance with Article XX the Covenants, Conditions, and
Restrictions, or equivalent documents, prior to the ap-
proval of the required final parcel/subdivision map. To
the extent applicable, the requirements of Article XX
shall be made a part of the rental agreement with the Par-
ticipating Tenants.
8. The owner shall pay the Tenant-participating Conversion
Tax in the manner required by Section 2008 of Article XX
of the City Charter.
The Tenant-Participating Conversion Tax shall be paid by
the owner to the City Treasurer on each Tenant-
Participating Conversion unit in an amount equal to twelve
(l2) times the monthly maximum allowable rent for the unit
at the time the tax is due and payable. If there is no
monthly maximum allowable rent, the tax shall be computed
on the basis of the monthly fair rental value of the unit.
The Tenant-participating Conversion Tax shall be due and
payable at the time of approval of the required final par-
cel/subdivision map. Payment of the tax may be deferred
until sale of the unit by the owner executing a lien in
the form approved by the city. Upon payment of the tax,
or upon a determination that a unit is exempt from the tax
in accordance with subdivision (d) of Section 2008 a
release of lien shall be filed by the City with respect to
each unit for which the tax has been paid or which has
been determined to be exempt from the tax.
9. The Declaration of Covenants, Conditions, and Restric-
tions, or equivalent document, shall contain a non-
discrimination clause in substantially the following form:
"No unit owner shall execute or file for record any in-
strument which imposes a restriction upon the sale, leas-
ing or occupancy of his or her unit on the basis of sex,
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race, color, religion, sexual orientation, ancestry, na-
tional origin, age, pregnancy, marital status, family com-
position, or the potential or actual occupancy of minor
children. The association shall not discriminate on the
basis of sex, race, color, religion, sexual orientation,
ancestry, national origin, age, pregnancy, marital status,
family composition, or the potential or actual occupancy
of minor children."
10. Approval of the Tenant-Participating Conversion Applica-
tion shall expire if the required final parcel/subdivision
map is not approved within the time period set forth in
Condition 11.
ll. The tentative parcel/subdivision map shall expire 24
months after approval, except as provided in the provi-
sions of California Government Code Section 66452.6 and
sections 9380-9382 of the Santa Monica Municipal Code.
During this time period, the final map shall be presented
to the city of Santa Monica for approval. If the tenta-
tive map is a vesting tentative map pursuant to California
Government Code Section 66474.2, the provisions of Santa
Monica Municipal Code Section 9325 also shall apply.
12. The applicant shall comply with all requirements set forth
in Government code Section 66427.l, including notification
of tenants regarding application for a public report to
the Department of Real Estate and notification of tenants
regarding approval of a final map for the conversion.
13. The developer/applicant shall provide the Engineering De-
partment of the City of Santa Monica with one Dizal Cloth
print reproduction and microfilm of each sheet of the
final map after recordation.
14. The effective date of this action shall be ten (10) calen-
dar days from the date of Planning Commission determina-
tion or, if appealed per Section 9366 (SMMC), at such time
as a final determination is made by the City council.
15. Approval of the Tenant-participating Conversion applica-
tion is conditional on proof that the cosigning Tenants
and Intending to Purchase Tenants maintained a tenant/
landlord relationship within 30 days of Planning commis-
sion action on this application. If tenancy cannot be
established, approval of the Tenant-Participating Conver-
sion application shall be nullified. Proof would include
leases agreements, canceled rent checks, and rental
applications.
16. The developer/applicant shall provide the Planning Depart-
ment with a parking and circulation plan stamped and ap-
proved by the City's Parking and Traffic Engineer within
30 days of Planning Commission action on this application.
- lO -
17. For information purposes, the following persons are iden-
tified in the application as participating tenants:
Unit
Tenant
1 M. El Raheb, Mary El Raheb, and Michael El Raheb
2 N. Alexopoulos, S. Alexopoulos, and D Bunting
3 G. Balanis, T. Balanis, N. Balanis, and T. Balanis
4 S. Koutis and P Koutis
5 T. Anagnos
6 C. Livanos
Prepared by: D. Kenyon Webster, Principal Planner
Johanna Marie GUlliCk, Associate Planner
pC/tpc126
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TORCA APPLICATION
2702 Eleventh Street
Attachment VIII.
.PARKI~G SPACES
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