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sr-081181-7ggas e I ~ ~~ RMM:BB;b City Council Meeting 8-11-81 Santa Monica, California STAFF REPORT TO: Mayor and City Council FROM: City Attorney SUBJECT: Claim for Vested Rights from Emergency Building Moratorium, Claim Number M-058, by Renata Bentsen for Vested Right/Hardship Exemption to Convert Structure to Office Use at 2020-2024 Pico Boulevard PROJECT DESCRIPTION Claimant seeks to convert an existing massage parlor and storefront to owner occupied office use at 2020-2024 Pico Boulevard. Th'e property is zoned C-2 and was purchased by claimant on June 19, 1981. VESTED RIGHT A determination of a vested right depends on whether the claimant has secured the last governmental approval necessary for construction and, in good faith reliance thereon, performed substantial work or incurred substantial liabilities in furtherance thereof. In connection with the project, claimant did not obtain any of the necessary governmental approvals prior to April 22, 1981. Since that date claimant has applied for and obtained Architectural Review Board approval for the proposed remodeling on August 5, 1981. This project constitutes a conversion under the building moratorium. However, based upon certain miscommunications among ~~t~ (: staff, the project was placed on the ARB agenda as an exempt project and the error was not realized until after the ARB meeting when the claimant sought a building permit to proceed. Claimant indicates the total cost of the project will be $25,000. Although expenditures to date are stated to be $2700, it is unknown what that figure represents or when such expenditures were made. Based on the date of purchase, i.e. June 1981, it is believed that no expenditures and no liabilities were incurred prior to April 22, 1981. Claimant does not have a vested right to proceed in that no governmental approvals were obtained prior to April 22, 1981 and no expenditures were made and liabilities incurred in reliance thereon prior tbR that date. Claimant states that the space she presently occupies is to be demolished and an unlawful detainer action and a liability lawsuit for her removal from that space are pending, Claimant further indicates that she was able to obtain additional time from her landlord based upon ARB approval and that if unable to move into the subject property she will be forced to go out of business for some period of time and the four employees of the company may have to seek employment elsewhere. According to claimant, deposits paid to the contractor and subcontractors will be forfeited and their commitment to this project canceled if a hardship exemption is not granted. 2 RECOMMENDATION 1. It is respectfully recommended that the claim for vested right be denied. Prior to April 22, 1981, claimant had not obtained the last necessary governmental approval and did not perform substantial work or incur substantial liabilities in reliance thereon. 2. If, under the facts as presented above or as may be determined at the time of the hearing, the City Council should determine that application of the moratorium to claimant's project would result in an unfair hardship to claimants, an exemption on the basis of unfair hardship should be granted. 3