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sr-081181-7eRMM:BB:b City Council Meeting 8-11-81 TAFF REPORT Santa Monica, California TO: Mayor and C-ity Council FROM: City Attorney SUBJECT: Claim for Vested Rights from Emergency Building Moratorium, Claim Number M-052, by Erik Karl Vogt for Vested Right/Hardship Exemption to Convert Portion of Structure to Health Club at 2401 Main Street PROJECT DESCRIPTION Claimant seeks to remodel an existing. structure that is currently vacant and was formerly a woodworking shop with a showroom located at 2401 Main Street. Claimant's proposed development is a health club including such amenities as saunas,jacuzzis, steam rooms, exercise and dance classes. The facilities will. be available on an hourly basis, indent 6,0 The property is zoned CM-2; the use proposed would be permitted although a variance for parking will be necessary. 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 a business license and a • BUG ~ ~ .,._. variance neither have been issued. As claimant indicates, building permit, Architectural Review Board approval, and Coastal Development Permit also appear to be needed for this development. No expenditures or liabilities were incurred prior to April 22, 1981. Claimant is the lessee of the subject property and has listed, however, expenditures totalling $10,275 since the adoption of the moratorium for applications for business license and variance, and for a 90 day period to lease the property, 50~ of which ($5000) is non-refundable. 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 to that date. HARDSHIP Claimant indicates that the subject property is an ideal location for his proposed business and that he has been looking for such a site for one and one half years. According to claimant, if he is not exempted from the moratorium, he will lose the right to lease the building and with it over $5000 and will not be able to again find such an ideal location and building. Additionally, claimant states that his business will be an asset to both the commercial and residential area. Claimant has submitted with his claim a letter from the owner of the property supporting claimant's proposed development and explaining why the property has been vacant and detailing his own hardship in connection with this property. 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