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SR-12-01-1988-8C CA:RMM:1l259jhpc . t(tJ6 ~OO/ City Council Meeting 11-24-87 . f... c. , c I' f . ~B\. () t 10.0 Santa Mon~ca, a ~ orn~a DEe 1 198 STAFF REPORT TO: Mayor and City council FROM: city Attorney SUBJECT: Ordinance Amending Santa Monica Municipal Code Sections 9611 and 9612 and Adding section 9611. 5 to the Santa Monica Municipal Code (Landmarks ordinance) to Protect and Preserve Designated Landmarks from Demolition At its October 27, 1987 meeting, the city Council considered the Landmarks Commissionls recommendation that Santa Monica Municipal code Sections 9611D and 9612L be amended to protect designated city landmarks from demolition after a Certificate of Appropriateness application has been filed. The City Council discussed the matter further at its November 10, 1987 meeting. The City Attorney was directed to prepare an ordinance to effectuate the changes recommended by the Landmarks Commission. The changes recommended by the Landmarks Commission would essentially extend the time period as to which a denial or disapproval of an application for a Certificate of Appropriateness would be in effect. Under the current ordinance, once an Applicant files an application for a Certificate of Appropriateness, the Landmarks Commission is permitted to stay a demolition for a maximum of two one hundred-eighty (180) day periods. The proposed amendments would provide long-term protection to City landmarks. - 1 - '6-C- . Q . ,~IQ ~T . DE.e 1 1~87 . . In addition to accomplishing the Landmarks Commission's request, the attached amendments to the Landmarks Ordinance create a process for evaluating an applicant's claim that he or she cannot make a reasonable return on the property. If an applicant demonstrates that a reasonable return cannot be made, that applicant will be able to obtain a Certificate of Economic Hardship. This is consistent with current trends in the case law and is consistent with the approaches followed by a number of other cities. Under the standard articulated in Penn Central Transportation Co. v. New York city, 438 U.S. 104 (1978), if historic preservation regulations leave an owner with no reasonable use of a property, the regulation may be held to be invalid as a "taking" for which just compensation is required. The adoption of procedures for assessing whether or not a reasonable return can be made while preserving a property will meet due process concerns as well. SECTION-BY-SECTION ANALYSIS Changes have been made to various sections of the Landmarks Ordinance as follows: section 9611. Certificate of Appropriateness criteria. The fOllowing changes have been made to section 9611: Subsection D. This subsection would provide that the Landmarks Commission must grant a certificate of Appropriateness for demolition or remodel of a designated structure if an applicant obtains a Certificate of Economic Hardship because the - 2 - . . applicant is able to demonstrate that a reasonable return cannot be made on the property, in accordance with section 9611.5. Subsection E. This subsection would provide that a Certificate of Appropriateness must be granted if the Commission finds that the structure does not meet designated criteria which would qualify it for designation as a National or State Historical Landmark or Point of Interest and that the conversion of the structure to some other allowable use which would preserve it, including relocation within the City, is not feasible. Section 9611.5. This Section would require that an application for certificate of Economic Hardship be filed on a form approved by the Planning Division. The section empowers the Landmarks Commission to solicit expert testimony and to require submissions concerning information relevant to its determination. The section sets forth a non-exclusive list of information that the Landmarks Commission could require from an applicant including estimates of the costs of proposed construction or alteration, architectural or engineering reports, estimated market value, estimates of the economic feasibility of rehabilitation, amounts paid for the property, income generated from the property, and so forth. If the Landmarks Commission finds that without approval of the applicant's proposed work, all reasonable use or return will be denied a property owner, it can then delay the application for a period not to exceed 120 days. During that period, the commission is charged with investigating plans and making recommendations to the City Council to allow for the preservation of the landmark structure. Plans and recommendations could - 3 - . . include, but are not limited to, provisions for relocation, relaxation of provisions of the ordinance, reduction in property taxes, zoning or building code modifications or financial assistance. If the commission is unable to arrive at a reasonable use from which the owner can make a reasonable return from preserving the structure as a landmark at the end of 120 days, the commission must issue a Certificate of Economic Hardship. If the Commission is able to determine that the owner can make a reasonable return, the Commission shall deny the application for certificate of Economic Hardship. Section 9612. certificate of Appropriateness/certificate of Economic Hardship Procedure. The following changes have been made to section 9612: Subsection A. This section has been amended to provide that the Planning Division may require information reasonably required by the Landmarks Commmission to make a decision on an application. It also provides that an application shall be deemed complete within thirty (30) days after a substantially completed application, which includes all information, plans, specifications, statements of work, and other required documents, is filed. Subsection B. This subsection has been amended to include Certificates of Economic Hardship. Subsection c. This subsection has been amended to include Certificates of Economic Hardship. Subsection E. This subsection has been amended to include Certificates of Economic Hardship. - 4 - e . Subsection F. This subsection has been amended to include Certificates of Economic Hardship. Subsection G. This subsection has been amended to include Certificates of Economic Hardship. Subsection I. This subsection has been amended to include Certificates of Economic Hardship. Subsection J. This subsection has been amended to include Certificates of Economic Hardship. Subsection L. This subsection provides that once an application for either a certificate of Appropriateness or a Certificate of Economic Hardship for demolition is disapproved, no application which is substantially the same may be resubmitted for a period of five years from the effective date of final action on the prior application. The exception to this rule provides that if significant additional information becomes available which was not, and could not have been, submitted with the previous application, an applicant may refile an application before five years elapse. This subsection further provides that where an application for remodel has been disapproved, no application may be resubmitted within a period of 180 days from the effective date of final action on the previous application. The same exception is provided. RECOMMENDATION It is respectfully recommended that the accompanying ordinance be introduced for first reading. PREPARED BY: Robert M. Myers, City Attorney Laurie Lieberman, Deputy City Attorney - 5 - . . CA:RMM:LL258b/hpc City council Meeting 11-24-87 Santa Monica, California ORDINANCE NUMBER (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTIONS 9611 AND 9612 AND ADDING SECTION 9611.5 TO THE SANTA MONICA MUNICIPAL CODE TO PROTECT AND PRESERVE DESIGNATED LANDMARKS FROM DEMOLITION THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. Section 9611 of the Santa Monica Municipal Code is amended to read as follows: SECTION 9611. Certificate of Appropriateness Criteria. For purposes of this Chapter, the Landmarks Commission, or the ci ty Council on appeal, shall issue a certificate of Appropriateness for any proposed alteration, restoration, construction, removal, relocation, demolition, in whole or in part, of or to a Landmark or Landmark Parcel, or of or to a building or structure within a Historic District if it makes a determination in accordance with the following criteria: A. That in the case of any proposed alteration, restoration, removal, or - 1 - . . relocation, in whole or in part, of or to a Landmark or to a Landmark Parcel, the proposed work would not detrimentally change, destroy, or adversely affect any exterior feature of the Landmark or Landmark Parcel upon which such work is to be done. B. That in the case of any proposed alteration, restoration, construction, removal, or relocation, in whole or in part, of or to a building or structure wi thin a Historic District, the proposed work would not be incompatible with the exterior features of other improvements within the Historic District, not adversely affect the character of the Historic District for which such Historic District was designated, or not be inconsistent wi th such further standards as may be embodied in the ordinance designating such Historic District. For any proposed work to any building or structure whose exterior features are not already compatible with the exterior features of other improvements within the Historic District, reasonable effort shall be made to produce compatibility, and in no event shall there be a greater deviation from compatibility. C. That in the case of any proposed construction of a new improvement upon a - 2 - . . Landmark Parcel, the exterior features of such new improvement would not adversely affect and not be disharmonious with the exterior features of other existing improvements situated upon such Landmark Parcel. D. That the applicant has obtained a Certificate of Economic Hardship in accordance with section 9611.5. E. That the Commission makes both of the followinq findings: 1. That the structure does not embody distinquishinq architectural characteristics valuable to a study of a per iod , style, method of construction or the use of indigenous materials or craftsmanship and does not display such aesthetic or artistic quality that it would not reasonably meet the criteria for desiqnation as one of the following: National Historic Landmark, National Register of Historic Places, state Historical Landmark, or state point of Historic Interest. 2. That the conversion of the structure into a new use nermitted by right under current zoninq or with a Conditional Use Permit, rehabilitation, or some otheJ;:' alternative for preserving the structure. - 3 - . . includinq relocation within the City is not feasible. SECTION 2. section 9611.5 is added to the santa Monica Municipal Code to read as follows: SECTION 9611.5. Certificate of Economic Hardship. A. Application for a certificate of Economic Hardship shall be made on a form furnished by the Planning Division. An application shall be processed in accordance with the same ?rocedures set forth in Sections 9612 and 9613 of this Code. B. The Landmarks Commission may solicit expert testimony or require that the applicant for a certificate of Economic Hardship make submissions concerninq any or all of the followinq information before it makes a determination on the application: 1. Estimate of the cost of the proposed construction, alteration, demolition, or removal, and an estimate of any additional cost that would be incurred to comply with the recommendations of the Landmarks Commission for changes necessary for the issuance of a certificate of Appropriateness. In connection with any such estimate, rehabilitation costs which are the result of the property owner ',S! - 4 - . . intentional failure to maintain the designated landmark or property in good repair shall not be considered by the Landmarks Commission in its determination of whether the property may yield a reasonable return to the owner. 2. A report from a licensed engineer or architect with experience in rehabilitation as to the structural soundness of any structures on the property and their suitability for rehabilitation. 3. Estimated market value of the property in its current condition; estimated market value after completion of the proposed construction, alteration, demolition, or removal; estimated market value after any changes recommended by the Landmarks commission; and, in the case of a proposed demolition, estimated market value after renovation of the existing property for continued use. 4. In the case of a proposed demolition, an estimate from an architect, developer, real estate consultant, appraiser, or other real estate professional experienced in rehabilitation as to the economic feasibility of rehabilitation or reuse of the existinq structure on the property. - 5 - . . 5. Amount paid for the property, the date of purchase, and the party from whom purchased, includinq a description of the relationship, if any, between the owner of record or applicant and the person from whom the property was purchased, and any terms of financing between the seller and buyer. 6. If the property is income-producing, the annual gross income from the property for the previous two years; itemized operatinq and maintenance expenses for the previous two years; and depreciation deduction and annual cash flow before and after debt service, if any, durinq the same period. 7. If the property is not income-producing, pro;ections of the annual qross income which could be obtained from the property in its current condition, in its rehabilitated condition, or under such condi tions that the Landmarks Commission may specify. 8. Remaining balance on any mortgage or other financing secured by the property and annual debt service, if any, for the previous two years. 9. All appraisals obtained within the previous two years by the owner or - 6 - . . applicant in connection with the purchase, financing, or ownership of the property. 10. Any listing of the property for sale or rent, price asked, and offers received, if any, within the previous two years. 11. Assessed value of the property accordinq to the two most recent assessments. 12. Real estate taxes for the previous two years. 13. Form of ownership or operation of the property, whether sole pronrietorship, for profit or not-for-profit corporation. limited partnership, i oint venture, or other. 14. Any other information considered necessary by the Landmarks commission to a determination as to whether the property does yield or may yield a reasonable return to the owners. c. In considering an Application for a Certificate of Economic Hardship, the commission shall consider all relevant factors. In order to grant a Certificate of Economic Hardship, the Landmarks Commission must make a finding that without approval of the proposed demolition or remodeling, all - 7 - . . reasonable use of or return from a designated landmark or property within a Historic District will be denied a property owner. In the case of a proposed demolition. the Landmarks commission must make a findinq that the designated landmark cannot be remodeled ~~ rehabilitated in a manner which would allow a reasonable use of or return from such landmark or property to a property owner. D. upon a findinq by the Commission that without approval of the proposed work, all reasonable use of or return from a desiqnated landmark or property within a historic district will be denied a property owner, then the application shall be delayed for a period not to exceed one hundred twenty (120) days. Durinq this period of delay, the commission shall investiqate plans and make recommendations to the city council to allow for a reasonable use of, or return from, the property, or to otherwise preserve the sUbject property. Such plans and recommendations m~y include, but are not limited to, provisions for relocatinq the structure. a relaxation at the provisions of the ordinance, a reductiqn in real property taxes, financial assistance, buildinq code modifications, and/or chanqes in zoninq requlations. - 8 - . . E. If, by the end of this one hundred twenty (120) day period, the Commission has found that without approval of the proposed work, the property cannot be put to a reasonable use or the owner cannot obtain a reasonable economic return therefrom, then the Commission shall issue a Certificate of Economic Hardship approvinq the proposed work. If the Commission finds otherwise, it shall deny the application for a certificate of Economic Hardship and notify the applicant by mail of the final denial. SECTION 3. section 9612 of the Santa Monica Municipal Code is amended to read as follows: SECTION 9612. Certificate of Appropriateness/certificate of Economic Hardship Procedure. An application for a Certificate of Appropriateness or an application for a Certificate of Economic Hardship approving any proposed alteration, restoration, construction, removal, relocation, or demolition, in whole or in part, of or to a Landmark or Landmark Parcel, or of or to a building or structure within a Historic District shall be processed in accordance with the following procedure: - 9 - . . A. Any owner of a Landmark, or of a building or structure within a Historic District may request the issuance of a certificate of Appropriateness or certificate of Economic Hardship by properly filing with the Director of Planning an application for such Certificate of Appropriateness or certificate of Economic Hardship on a form furnished by the Planning Division. Each application for a Certificate of Appropriateness or Certificate of Economic Hardship shall include such plans, specifications, statements of work, and any other information which are reasonably required by the Landmarks commission to make a decision on any such proposed work. An application shall be deemed complete within thirty (30) davs 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 appropriate application forms supplied by the city. If, within the specified time oeriod. the Planninq Division fails to advise the applicant in writinq that his or her application is incomplete and to specifY- additional information required to complete - 10 - . that application, . the application shall automatically be deemed complete. B. The Director of Planning shall schedule a public hearing to be held within forty-five (45) days of the date on which an application for a certificate of Appropriateness or Certificate of Economic Hardship was deemed complete. c. The Director of Planning shall conduct a preliminary evaluation of the application for a certificate of Appropriateness or Certificate of Economic Hardship and shall make a preliminary recommendation to the Commission on or before the date scheduled for a public hearing as to the appropriateness and qualification of the application for a Certificate of Appropriateness or certificate of Economic Hardship. D. Not more than twenty (20) days and not less than ten (10) days prior to the date scheduled for a public hearing, notice of the datel time, place, and purpose thereof shall be given by at least one publication in a daily newspaper of general circulation, shall be mailed to the applicant, and to the owners of all real property within three hundred (300) feet of the exterior boundaries of the - 11 - . . Landmark Parcel upon which a Landmark is situated in the case of any proposed work to a Landmark, or within three hundred (300) feet of the exterior boundaries of the lot or lots on which a building or structure within a Historic District is situated in the case of any proposed work to a building or structure within a Historic District, using for this purpose the names and addresses of such owners as are shown on the records of the City Clerk. The failure to send notice by mail to any such real property owner where the address of such owner is not a matter of public record shall not invalidate any proceedings in connection with the proposed designation. The Commission may also give such other notice as it may deem desirable and practicable. E. Except as otherwise provided for in subsection G hereof, or in Section 96l1E.2, at the conclusion of a public hearing, or any continuation thereof, but in no case more than forty-five (45) days from the date set for the ini tial public hearing, the Commission shall approve, in whole or in part, or disapprove the application for a Certificate of Appropriateness or Certificate of Economic Hardship. If the Commission fails to take action on the application for a Certificate of - 12 - . . Appropriateness or Certificate of Economic Hardship within the forty-five (45) day time period, the application for a certificate of Appropriateness or certificate of Economic Hardship shall be deemed approved, and it shall be the duty of the Director of Planning to certify such approval. Notwithstanding the foregoing, the Commission may mutually agree with the applicant for a certificate of Appropriateness or certificate of Economic Hardship to extend the forty-five (45) day time period in which the Commission must take action to another time period which is mutually agreeable. F. The decision of the Commission shall be in writing and shall state the findings of fact and reasons relied upon to reach the decision, and such decision shall be filed with the Director of Planning. G. Subject to the provisions of section 9613 of this Chapter, upon the rendering of such decision to approve an application for a certificate of Appropriateness or certificate of Economic Hardship, the commission shall issue the Certificate of Appropriateness or certificate of Economic Hardship within a reasonable period of time and such issued Certificate of Appropriateness or Certificate - 13 - . . of Economic Hardship may be obtained by the applicant from the Planning Division. H. Subject to other provisions of this section 9612 and Section 9613 of this Chapter, a decision of the Commission shall be in full force and effect from and after the date of the rendering of such decision by the Commission. I. Subject to other provisions of this Section 9612, a certificate of Appropriateness or certificate of Economic Hardship shall be in full force and effect from and after the date of the issuance by the Commission. Any Certificate of Appropriateness or Certificate of Economic Hardship issued pursuant to this Chapter shall expire of its own limitation wi thin a one hundred eighty ( 18) day time period commencing from the date of the issuance of such Certificate of Appropriateness or certificate of Economic Hardship if the work authorized thereby is not commenced by the end of such one hundred eighty (180) day time period. In addition, any such Certificate of Appropriateness or certificate of Economic Hardship shall also expire and become null and void if such work authorized is suspended or abandoned for a one hundred eighty (180) day time period after - 14 - . being commenced. . J. The Commission shall have the power, after a public hearing, to amend, modify, or rescind any decision to approve, in whole or in part, an application for a certificate of Appropriateness or certificate of Economic Hardship and to make any preliminary or supplemental designations, determinations, or decisions, as additions thereto. K. The Commission shall determine the instances in which cases scheduled for public hearing may be continued or taken under advisement. In such instances, no new notice need be given of the further hearing date, provided such date is announced at the scheduled public hearing. L. The followinq rules shall limit the resubmittal of an application for a Certificate of Appropriateness or certificate of Economic Hardship: 1. Whenever an application for a Certificate of Appropriateness or Certificate of Economic Hardship for demolition has been disapproved or deemed disapproved by the Commission, or by the city council on appeal, no application which is the same or substantiall y the same as the one which has been disapproved shall be resubmitted to or - 15 - . . reconsidered by the Commission or City Council for a period of 5 years from the effective date of the final action upon the prior application. A certificate of Appropriateness or certificate of Economic Hardship for demolition may be refiled at any time durinq the five year period provided that the aoolicant submits siqnificant additional information, which was not and could not have been submitted with the previous application. A refiled application shall be processed in the manner outlined in Section 9612. Under this provision, should the applicant still seek to demolish the landmark structure after the 5 vear period has expired, a new and separate Certificate of Appropriateness or Certificate of Economic Hardship application would be required to be refiled. This application shall be subject to the same conditions as the prior application. 2. Whenever an application for a Certificate of Appropriateness or certificate of Economic Hardship for remodel has been disapproved or deemed disapproved by the Commission, or by the City Council on appeal, no application which is the same or substantially the same as the one which has been disapproved shall be resubmitted to or - 16 - . . reconsidered by the Commission or City Council within a period of one hundred eiqhty (180) days from the effective date of the final action upon such prior application. A certificate of Appropriateness or certificate of Economic Hardship for remodel may be ref iled at any time durinq the one hundred eiqhty (180) day period provided that the applicant submits siqnificant additional information, which was not and could not have been, submitted with the previous application. A refiled application shall be processed in the manner outlined in Section 9612. Under this provision, should the applicant still seek to remodel the landmark structure after the one hundred eiqhty (180) day period has expired, a new and seDarate Certificate of Appropriateness or Certificate of Economic Hardship application would be required to be refiled. This application shall be sub;ect to the same conditions as the Drior application. SECTION 4. Any provision of the Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. - 17 - . . SECTION 5. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The ci ty Council hereby declares that it would have passed this ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently 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. effective 30 days from its adoption. The ordinance shall be APPROVED AS TO FORM: ~\-..~ ~- ROBERT M. MYERS City Attorney - 18 - . . . DA VID G CAMERON HISTORIAN POST OFFICE BOX 611 SANTA MONICA CALIFORNIA 90406-0611 TELEPHONE (213) 452-0914 11.,,-/- J-c. :!_etc- 1 1987 -,;- ~ "87 roC!" -1 u....~ P 4 :50 SM. i... .~ v _' .- 1 December 1987 Hon. Mayor and council City of Santa lVlonica 1685 clain street Santa Monica, CA Re: Agenda Item B-C Agenda of December I, 1987 Landmarks Ordinance Dear Friends, The urgent need to preserve the Gussie Moran House from demolition precludes the thoughtful analysis and refinement needed for the rev~sion before you. Accord~nglll, I am ccropelled to recommend approval of the proposed revis ion wi thr the fallowing modif ica t~ons: 1. The revision to Section 9611 (pages 1-3) does not make clear whether the commission must make anyone of the findings in Subsections A through E, to ~ssue a Certif i.cate, or more than one. This could be resolved by adding "and" or "or ,n as desired. 2. In 96l1.E., page 3, the extra "notll before "reasonably" is superfluous and confusing. Also, the crJ.teria for Federal and State designation include not just architectural significance, as contained in the draft, but also historical significance, which needs to be ad- ded. The terms "State Historical Landmarkt' and "state Point of His- toric (sic) Interest" should be corrected to their formal titles: "California Re9istered Historical Landmarklt and lICa1J.fornia point of Histor~cal Interest.1I 3. Since the Itnon-feasibilitylt standard of 961l.E. is basioally similar to the Ithardshipll standard of 96l1.D. and 9611.5, 96ll.E. could well be eliminated. 4. In 9611.5.B.l. (page 5), reference is made to the "owner's intentional failure to maintain... in good repair...1I Surely negligent failure to maintain should be considered in the same way? 5. In 96l2.E. (page 12) I the references to subsec tion G and to Section 961l.E.2. are meaningless and irrelevant. A.. h 1--(. 6. Later in 96l2.E (page 13) I the current languag~.Jid.:i88i7 that failure to act means approval, needs to be changed to provide .. . Hon. Mayor and COUel, p. 2 1 Dtlmber 1987 w that failure to act means disapprovalr this could then be appealed to the Counc iI, as in the case with Planning COffifIlission matters. If the commission does not have four votes to approve or disapprove within the 45-day deadline, a demolition or substantial alteration would be deemed approved, and it is not clear, under the present deficient Ordinance, whether this is a ndecisionl1 by the commission made appealable to council under 9613~.5. 7. In 9612.L.2, reference is made to Certificates "for remodel.." This fails to cover seme Certificates for lIalteration, restoration, construction, removal, reocation... II which would thus have ~ re- fib.ng guidelines, under th~s draft. certificates "other than for demol.ition" woul.d be a better term than "for remodel." 8. There is no"prov1.s1.on in the draft for appealing a com- mission decision on-a Certificate of Econom~c Hardship to the Council. This should be done by an addition to 9613.A.5. 9. There 1S no transition provision for pending cases. We need to be sure that the Gussie Moran House will not "fall through the cracks. n A solution might be to provide that pending applications for Cert1ficates shall abate, but may be refiled under the new Ordi- nance provisions r wit!1out prejudice from the previous proceedings. And to return to a topic I have raised with you before: when is the rest of this Ordinance going to be cleaned up, as the Land~arks comwission recommended to you five years ago, and as the consultants you hired to produce a Historic preservation Element for the General Plan recommended to you four years ago? They made some twenty re- commendations for Ordinance revision; one of these will now have bean accomplished in four years. Will it take eighty years for all twenty? of ", /..-r ../ (a, ) i ~ tlf /h4~f?'- ~ . t" Very truly yours, .......... AA""'~""'" !. l .... /J/ .;"""A ~/~ ~~ P"'-"'-~-'-~ David G. CaT('teron Chair, Landmarks commission