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sr-042281b1 <~ ~A:SSS:BB/1 Council Meeting 4/22/81 Santa Monica, California STAFF REPORT TO: Mayor and City Council FROM: City Attorney SUBJECT: Ordinance Declaring Moratorium on Commercial and Residential Development INTRODUCTION This reports transmits an emergency ordinance declaring a moratorium until October 1, 1981 on commercial and residential development in the City. The Council directed the preparation of the ordinance at its special meeting of April 21, 1981. LEGALITY Santa D'[onica, as a charter city, has the right to impose a moratorium of specified duration on development, pending completion of a planning process intended to deal with development issues found to require attention. The time limitation imposed upon general law cities by Section 65858 of the Government Code does not apply to Santa Monica; .the proposed moratorium term coincides with the date when the City must revise its Sousing Element to comply with state law. The ordinance contains a vested rights standard which conforms to California case law, and has a procedure which appears ` simple and speedy enough to afford affected persons due process of law. E The moratorium appears to be justified by the existence of the findings o£ fact contained in Section l; we are of the opinion that the ordinance is lawful in all respects. ANALYSIS OF TFIE ORDINAIQCE The ordinance contains seven substantive sections: 1. Findings and Purpose. This section contains 14 separate reasons justifying the imposition o£ a moratorium. Finding (n) states the general conclusion that the public peace, health and safety is threatened by continuing commercial and residential development prior to comprehensive review and revision of the City's zoning, planning, subdivision and building regulations. 2, Subdivisions. This section places a moratorium on the acceptance for processing of any applications for approval of Tentative Tract or Parcel Maps after the effective date of the ordinance. The Planning Commission is directed to disapprove applications for Tentative Tract idans or extensions of Tentative Maps. 3. Moratorium. A moratorium is imposed on the erection, construction, enlargement, demolition, moving, or conversion o£ and excavation or grading for .any building or structure in the City with 1 1 specified exceptions: a. single family homes in the R-1 One-Family Residential District, remodeling of homes in other zones; b, multiple dwellings which include at least 300 of the units which are continually affordable to persons of low and moderate income, or for which the Housing Authority has entered into an agreement; -2- c. rental housing projects intended for low and moderate income persons or senior citizens which are financed by federal or state housing assistance or owned by religious or non-profit organizations; d. buildings in the C-3 General Commercial District which are_two stories or less, less than 30' in height, and have a gross floor area which does not exceed the total area of the building site (one times bulk); e. buildings for which construction commenced before the effective date of the ordinance and which had valid building permits before April 17, 1931; f. repairs, alterations, and enlargements of less than 10% of the gross floor area of a building; g. demolition conunenced before the effective date of the ordinance pursuant to a demolition permit issued before April 17; 1931; h. condominium conversions which had a final subdivision map before the effective date of the ordinance and have a removal permit or vested rights determination from the Rent Control Board; i. buildings which have a vested rights determination under Section 5 of the ordinance; j, public works projects of the City; k. signs. 4. Moratorium on Permit Issuance. This section prohibits the issuance of all permits for any building not exempt from the moratorium. This includes ARB approval; the granting of Final Tract Map approval is excluded from the moratorium. The Building Department is required to issue a stop-work order to any person proceeding in violation of the ordinance. 5. Vested Rights. This section sets forth a standard and procedure for determining vested rights claims. The City Council will make vested rights determinations. There will be -3- a standard application form to be drafted by the City Attorney. The Council will,within 30 days of the filing of a claim, grant or deny it or refer it to a hearing examiner with specified directions. A claim referred to a hearing examiner must be determined by the Council no later than the adjournment of the second regular Council meeting a-ter its referral. The vested rights test is based on the California Supreme Court's formula: The claimant must have secured the last governmental approval necessary to the performance of the desired thing, and in good faith reliance on that approval must have performed substantial work or incurred substantial liabilities in furtherance of the project. The section sets out four factors to be considered in evaluating vested rights claims; it also allows the Council to grant a vested rights exemption based on unfair hardship. 6. Penalties. A violation of any part of the ordinance is a misdemeanor and a public nuisance. 7. Effective Date and Expiration. The ordinance, as an emergency measure, becomes effective irrnnediately upon adoption. The ordinance will expire on October 1, 1981. 8. Emergency. The ordinance is declared to be an emergency measure based on the reasons set out in Section 1. Five affirmative votes are required for enactment. ALTERNATIVES The Council may adopt the ordinance as drafted or as modified in regular or emergency form, or may reject it. F -4- RECOMMENDATION It is respectfully recommended that the Council adopt the ordinance, either as drafted or with such modifications the Council deems advisable. Prepared by: Stephen Shane Stark, Acting City Attorney Bettylou Borovay, Deputy City Attorney -5-