SR-111583-12BCA:RMM:rmsor
City Council Meeting 11-15-83
STAFF REPORT
TO: Mayor and City Council
FROM: City 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 meeting on November 8, 1983, the City Council
approved Tentative Tract Map Number 37984, Conditional Use Permit
Number 358, and Development Review Number 207 and directed the
City Attorney to return on November 15, 1983, with findings and
conditions.
RECOMMENDATION
It is respectfully recommended that the City Council make
the following findings, decision, and conditions in connection
with 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 building 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. Commencing in the latter part of 1978, Sorrel commenced
the process of "renovating" the subject property. Sorrel
refinanced the subject property on numerous occasions and
performed substantial improvements to the building.
4. In January 1979, Sorrel gave eviction notices to a11,
tenants of the subject property.
5. On April 10, 1979, the electorate of the City of Santa
Monica added Article XVIII to the Santa Monica City Charter
entitled "Santa Monica Rent Control Charter Amendment ("Rent
Control Law)." The Rent Control Law regulated, amonq other
things, the circumstances under which tenants could be lawfully
evicted and the circumstances under which landlords could remove
rent controlled apartments from the market by demolition,
conversion and other means.
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
standards 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 increases for all units ranging between $332
and $487 per unit. The Board also granted conditional
authorization for rent increases based upon $163,000 in proposed
capital improvements.
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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
Monica City Charter. On May 28, 1981, the Rent Control Board
denied Removal Permit No. 059R based upon findings 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 fair return by maintaining 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 filed a Petition For Writ Of
Mandate in Los Angeles Superior Court, Billie Z. Sorrel v. Rent
Control Board, et al.; LASC Case No. C 379899. On January 14,
1982, Judge John L. Cole issued an Alternative Writ of Mandate in
the case.
11. On June 9, 1982, Sorrel filed a petition 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
granted a peremptory writ of mandate compelling the Rent Control
Board to set aside its 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
Notice of Appeal in the case. On April 19, 1983, Sorrel filed a
Notice of Cross-Appeal in the case.
14. Pursuant to the court ordered remand, Sorrel refiled a
new Petition For Rent Increase I-0665 in conjunction with a new
application for Removal Permit 103R-B. On June 2, 1983, the Rent
Control Board voted to grant Removal Permit 103R-B. The Rent
Control Board adopted findings of fact and conclusions of law in
support of this determination 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 Permit Number 358, and Development
Review Number 207.
16. On October 17, 1983, the Santa Monica Planning
Commission denied 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 inconsistent with Program 25 of the Housing
Element of the General Plan as adopted on January 25, 1983.
Program 25 of the Housing Element limits the conversion of rental
units to market rate condominiums until the number of rental
units demolished or converted in 1978 and 1979 are replaced. The
Planning Commission found that the units removed in 1978 and 1979
had not been replaced as of October 17, 1983. Sorrel filed a
timely appeal of this decision.
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17. On November 8, 1983, the City Council considered
Sorrel's appeal. The City Council voted to grant the appeal
thereby reversing the actions of the Planning Commission and
approving Tentative Tract Map Number 37984, Conditional Use
Permit Number 358, and Development Review Number 207.
18. Although Tentative Tract Map Number 37984 is
inconsistent with the Housing Element of the General Plan, and,
although under normal circumstances the tentative map would be
required to be disapproved under the Subdivision Map Act, the
City Council determines that approval of tentative map is
appropriate for the following reasons:
a. Prior to the adoption of the Housing Element,
Sorrel incurred substantial expenses to obtain a removal permit
from the Santa Monica Rent Control Board for the purpose of
condominium 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.
b. Sorrel is the only landlord who sought a removal
permit for purposes of condominium converson prior to the
adoption of the City's Housing Element.
c. All of Sorrel's tenants consent to the conversion
and desire to purchase their units.
d. The conversion will not result in the
displacement of tenants. Because of the singularly unique
circumstance in which Sorrel is placed, the decision with respect
to Sorrel will have no precedent and will not encourage the
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displacement of tenants in other buildings through other
conversion activity.
e. Because application of the newly adopted Housing
Element to Sorrel would possibly result in an unconstitutional
application to Sorrel since Sorrel faces loss of the property and
may not, in the determination of the Rent Control Board, earn a
fair return if the unit remains a rental unit, the City Council,
believes in this one instance the Housing Element s ould not be
applied. The City Council believes that it is unlikely to
encounter such a unique situation in the future nd that all
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future applicants will be required to comply with the Housin
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Element
19. Conditional Use Permit Number 358 is consistent with
Municipal Code Section 9122 in that the proposed building meets
the standards for conversion set forth in Municipal Code Section
9122F.
20. Development Review Number 207 is consistent with
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,
City of Santa Monica approves Tentative
Conditional Use Permit Number 358, and D.
207 subject to the following conditions:
1. In accordance with Municipal
condominium agreements shall contain,
the City Council of the
Tract Map Number 37984,
avelopment Review Number
Code Section 9122E(3),
but not be limited to,
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adequate provisions for maintenance, repair, and upkeep;
provisions that in the event of destruction or abolishment,
reconstruction shall be in accordance with codes in effect at the
time of such reconstruction; and provisions for dedication of
land or establishment of easements for street widening or other
public purpose.
2. The CC&R's shall include agreement by the subdivider,
that the following shall be guaranteed by the subdivider:
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 individual unit sold.
b. Items provided or installed within individual
units by the subdivider, including but not limited to,
appliances, fixtures, and facilities, for a period of one (1)
year from the date of close of escrow of each individual unit.
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 fifty-one percent (51$) of the units; the subdivider
agrees not to change the CC&R's submitted to obtain approval of a
project without the consent of the Planning Commission; and
subsequent owners agree to make no changes in the CC&R's imposing
non-discrimination restrictions without the consent of the
Planning Commission.
4. The subdivider shall submit an estimate of and
guarantee the maintenance costs for a period of twelve (12)
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months beginning at the close of escrow on the first twelve (12)
months beginning at the close of escrow on the first 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 good
cause, until written notice of not less than one (1) year from,
the date of tentative approval has been given 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 independently
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 hereafter
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, submitted to the Department
of Real Estate, and that such report will be available on
request. The written notices 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 final map for the proposed conversion.
9. Each of the tenants of the proposed condominium has
been, or will be, given 180 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 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 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 gives prior written notice of his or her intention not to
exercise the right.
11. Prior to
shall certify that
safety systems of the
and maintenance.
12. Prior to
subdivider shall cert
submittal of the
the structural,
structure are in
the submittal
ify that the plum
final map, the subdivider
electrical, fire and life
a condition of good repair
of the final map, the
ping is in sound condition,
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that all hot water heaters are insulated, that all pipes for
circulating hot water are insulated unless the Building Officer
determines that such insulation is infeasible, that the property
has adequate and protected trash areas, and that the property has
individual gas and electric meters unless the Building Officer
determines that individual 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 his or her unit on the basis of
sex, race, color, religion, ancestry,
national origin, age, pregnancy, marital
status, family composition, or the potential
or actual occupancy of minor children. A
condominium association shall not
discriminate on the basis o£-`"sex, race,
color, religion, ancestry, national origin,
age: pregnancy, marital status, family
composition, or the potential or actual
occupancy of minor children.
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14. The CC&Rs shall be approved by the City Attorney for
compliance with the conditions set forth above.
PREPARED BY: Robert M. Myers, City Attorney
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