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SR-10-23-2012-7Fo City Council Report City Santa Monica" City Council Meeting: October 23, 2012 Agenda Item: 7` F To: Mayor and City Council From: Marsha Jones Moutrie, City Attorney Subject: Regulation of Commercial Operation of Residential Properties As Event Venues Recommended Action Staff recommends that the City Council adopt an ordinance that would prohibit operating a single - family residential property as an event facility for the commercial purpose of selling the property; alternatively Council could subject such operations to a permit requirement and limitations on size and frequency. Executive Summary The Kathryn Grayson Estate at 2009 La Mesa Drive was sold and landmarked; and the historic home has been transformed through interior redesign and "rebranded" by a for profit corporation as "The House of Rock ". It is being marketed for sale through a business model that entails operating the house as a venue for a series of large, private concert -style events. Simultaneously, the furniture and furnishings are offered for sale. At the Council meeting of October 2 "d, neighbors protested to Council that the operation of what amounts to an event facility and furniture showroom on their street substantially disrupts their neighborhood, disturbs their peaceful enjoyment of their homes, and even creates risks to their safety. The operator of The House of Rock claimed that she lives in the home, that she is merely exercising the right to host large charity events in her home (as the neighbors often do), and that she is not improperly operating a commercial enterprise on a residential street. In response to this controversy, the City Council directed staff to prepare an ordinance that would eliminate or regulate these activities but preserve the right of homeowners to host large social, charitable, and political events in their homes. The attached proposed ordinance fulfills that direction. It would add a new provision to the Municipal Code that would prohibit operating a single - family residential property as an "event facility" for the commercial purpose of selling it. The term "event facility" is 1 defined as a property that is utilized for gatherings of more than 150 people. Alternatively, if the Council prefers, the code provisions authorizing the issuance of Temporary Use Permits could be amended to require a permit for such activities, subject to limitations on event size and frequency. Background At its meeting of October 2nd, Council considered an item placed on the agenda in response to complaints by residents of La Mesa Drive about impacts of the operation of The House. of Rock at 2009 La Mesa. Despite the very late hour, dozens of neighbors expressed their adamant opposition to the operation; and an attorney representing the neighbors submitted extensive documentation in support of their protest. One of the members of the corporation who is the principal marketer of The House of Rock also testified, explaining the marketing scheme. (For convenience sake, she is described as the Operator in this report). Both her attorney and her professional fundraiser also testified, claiming that the events at The House of Rock are charitable fund - raising events, which are common in the neighborhood and that the operation is "pure in intent ", lawful, and protected by law. Though the controversy aired at the October 2nd meeting is intense, and many facts are disputed, some are uncontested and /or documented in the record. Those facts are summarized in this section. The Kathryn Grayson Estate 2009 La Mesa is a prime residential property on a narrow, curving street, which is lined and canopied by mature Morton Bay Fig trees, and which runs along the City's northern boundary on a bluff overlooking Santa Monica Canyon and the Riviera Country Club. See Attachment A. The residence at 2009 La Mesa is a two -story English Cottage/Tudor Revival style mansion. It was designed by noted local architect Elmer Gray and built in 1926 for A.N. Kemp, then Vice President of California Bank. Photographs of the exterior excerpted from the Landmark Commission record are attached as Attachment B. From 1945 until her death in 2010, screen star Kathryn 2 Grayson lived in the home; and the property became commonly known as The Grayson Estate. In 2010, the home was purchased by a private party. In November of that year, it was designated as a landmark based on its architectural significance and upon Ms. Grayson's residency. In 2011, restoration and rehabilitation work began on the exterior. That work was done pursuant to Certificates of Appropriateness granted by the Landmarks Commission. At the same time, the interior was transformed through a complete redesign and redecoration by high -end designers and furniture purveyors, who donated their services in return for the exposure and sales opportunities that would be forthcoming. The House of Rock Through this process, the Grayson Estate was rebranded as The House of Rock; and, early this year, The House of Rock LLC was formed to market the property. It is a "for profit" corporation. Samples of publicity and coverage related to the property are provided as Attachment C. The publicity describes the property as, among other things, "a design showcase and party venue sponsored by Rolling Stone magazine." The marketing venture is being managed by the Operator, who is a professional designer in the business of acquiring, remodeling, refurbishing and reselling high -end single family homes. She testified to Council on October 2nd that she has "flipped" twenty (20) homes in Santa Monica. However, she has also stated that she did not use the same marketing model for those homes that she is using for The House of Rock. That model has been described by those testifying to Council (including the Operator) and documented in written submissions. Basically, it consists of using The House of Rock as an event venue for a series of large events in the nature of private concerts or 3 parties. The Operator testified to Council that each person attending an event receives a tour of the premises. Also, the model includes the opportunity for both persons attending the private events and others (taking virtual, on -line tours) to purchase the furnishings displayed in the home on line. Overall, in response to an inquiry about her business model, the Operator described the marketing scheme for the property to Council as a 'crafty way to sell it." Once the events began at The House of Rock, and staff received complaints, police and City code enforcement personnel investigated. They reviewed the evidence available at that time and concluded that the conduct of the events at The House of Rock did not violate current City ordinances. At the second event, the Santa Monica Police Department enforced state law restrictions involving vehicular use of streets through the issuance of citations. Code enforcement personnel also took noise readings at the second event and inspected the property, but they did not find violations. Discussion The Current Legal Restrictions A brief review of current regulations provisions may assist the Council in deciding whether to adopt additional legislation. Traffic Laws There are, of course, state and local provisions regulating vehicular use of streets, These laws ensure the safe circulation of vehicular traffic, emergency ingress and egress, and access to private property. Thus, current law prohibits blocking streets and driveways. However, as to parking across the ends of driveways, the Police Department advises that, as a matter of practice, it will cite and remove cars parked across driveway ends only upon request from the driveway owner. This policy reflects the fact that many residents prefer to routinely block their own driveways because parking is difficult and they wish to park near their homes. Local law also requires a permit for a valet parking operation. Chapter 6.120. 12 Noise Standards The Municipal Code contains noise standards in the form of decibel limits. See Chapter 4.12. These limits are enforced by members of City staff who are trained and equipped to take decibel readings. Outdoor Lighting Restrictions The Municipal Code contains a provision regulating outdoor lighting. Section 9.04.10.02.270. It requires, among other things, that lighting associated with commercial uses be shielded and directed away from surrounding residential uses, shall not exceed 0.5 footcandles of illumination beyond the property, and not flash or oscillate. Temporary Use Permits (TUPs) The Municipal Code authorizes the issuance of TUPs for certain types of seasonal sales, a few private uses, and specified few types of public events. Section 9.04.20.06. They include seasonal sales for 30 days of Christmas trees and pumpkins; trailers providing residences /offices for temporary use, such as for construction; circuses and carnivals; art displays; fairs, festivals and concerts; farmers markets and swap meets; construction yards; and sidewalk sales. There is also a catchall provision allowing the issuance of a TUP for uses that the Zoning Administrator determines, in her discretion, are similar to the listed uses and compatible with surrounding uses. This law has never been interpreted by the Zoning Administrator to apply to private events in private homes. And, given the constitutional protections afforded to assembly and privacy, staff does not recommend such an interpretation. Nonetheless, as discussed below, Council could consider amending the provision to cover such events. R -1 Limitations The City's Zoning Code contains no express prohibition against conducting commercial 5 operations in R -1 zones. The code does include a general statement of intention about uses in the R -1 district, which states that the district is: "[I]intended to provide a single - family residential area free of disturbing noises, excessive traffic, and hazards created by moving automobiles. The R -1 District is designed to prevent burdens on the public facilities ... by an influx and increase of people to a degree larger than the City's geographic limits, tax base or financial capabilities can reasonably and responsibly accommodate. The R1 district affords protection from deleterious environmental effects and serves to maintain and protect the existing character of the residential neighborhood." This general statement of purpose is useful in interpreting and applying the code, but is not readily enforceable in the same manner as a specific prohibition. The Zoning Code defines "residential use" as a room or rooms "designed, occupied or intended for occupancy as primary living quarters ". The code also lists the uses that are permitted in R -1 neighborhoods. Some are allowed outright; others are permitted conditionally or subject to permitting requirements; and two uses are specifically prohibited. Among the uses that are allowed or conditionally allowed are a number that are commercial in nature, such as day care centers, hospice care facilities, garage sales and occupations undertaken in the home (which are common in Santa Monica and are allowed subject to standards and permitting requirements). There is also a catchall provision which prohibits any use not specifically authorized. And, commercial event facilities are not authorized. City staff's usual approach to enforcing limitations on commercial uses in residential zones is to contact the business operator and address the matter as a violation of the City's business license law, which requires a business license for any business in Santa Monica. In order to receive a license, the proposed location of the business is cleared with the Planning Department, which determines if the particular type of business is allowed in the particular zone. If not, no license is issued. Ultimately, if the business R operator were to persist in operating his or her business without a license, he or she could be subject to prosecution. Nuisance Abatement The Municipal Code also contains a chapter on abatement of nuisances, which was used primarily to address unsafe structures, including structures damaged by the Northridge Earthquake. Chapter 8.96. However, that chapter has not been utilized for enforcement purposes for several years, and there is presently no Nuisance Abatement Board constituted to enforce the chapter. Instead, when nuisances arise, they are usually addressed through the issuance of citations for individual code violations. And, this methodology is usually effective. If such violations persist or accumulate, they can be addressed through civil or criminal nuisance abatement actions brought pursuant to state law. However, the standard of proof may be difficult to meet; and in the context of activities that may have constitutional protection, the courts will generally not afford relief to cities in nuisance actions without showing that multiple violations of specific provisions have occurred over time and that lesser remedies have been utilized and proven inadequate. Finally, insofar as the remedy of a nuisance action might be availing, it is also available to private parties, including neighbors. The Parties' Positions Summarizing the parties' previously expressed positions and arguments may also assist the Council in considering the proposed ordinance and assessing the benefits and risks of the options. The Operator and her counsel argue that there are two sides to any dispute, and that theirs has not been adequately heard or considered. They argue that they had an inadequate opportunity to present their position at the Council hearing of October 2 "d because of the applicable time limits. 7 The Operator claims she resides at 2009 La Mesa. Thus, she argues that the property is presently used primarily as a residence. Once The House of Rock events began, the Operator says that she cooperated with both police personnel and code enforcement personnel. She notes they investigated but issued no citations to her. (Citations were issued solely in conjunction with traffic violations and were issued to drivers, who apparently worked for the contractor that shuttled people from the parking location to the event.) The Operator states that the major events which have taken place to date were much shorter and less disruptive than reported to Council by the neighbors. She says that she understands the theory of an ordinance prohibiting "party houses" but this situation is very different from a "party house" because it involves events for a "select group of charities ". She argues that her neighbors often have large events at their own homes, but now they are harassing her for doing what amounts to the same thing. She says that this harassment includes smashing the review mirror on her car, trespassing onto her property to take photographs, honking when they pass her home, contacting charities to dissuade them from having events at the House of Rock, blocking the street using private vehicles, calling under false pretenses and asking to rent the home for events (which she perceives as entrapment). The Operator relies upon the assertion that in her meetings with City staff prior to the series of events, she was told that she did not need a permit because The House of Rock is a single family residence. Staff disputes this description of the meetings and says that the Operator met with the Assistant City Manager to complain about the duration of the process for obtaining a Certificate of Appropriateness for construction work on the landmarked home. The Assistant City Manager referred the Operator to landmarks staff. The Assistant Manager says that there was no discussion with her about The House of Rock or the events to be held there. The Operator also met with landmarks staff about the Certificate of Appropriateness process. She brought her professional event planner to one meeting and asked about obtaining a TUP for the events. Landmarks staff checked with the Zoning Administrator and then informed the 3 Operator that TUPs are not issued for events at private homes. Also, landmarks staff cautioned the Operator that in conducting the events she would need to conform to all applicable laws. Additionally, the Operator has stated that she feels that the level of anger and "mob mentality" which exist in the neighborhood are dangerous and that she is afraid someone will, for instance, break into The House of Rock. She says that she would like to take some action that will calm things down. For instance, she has repeatedly stated that she will cooperate with a permit requirement; but, if the City attempts to ban and thereby prevent the already scheduled events, she will sue. She has also notified the City that she will submit a sworn statement attesting to the facts prior to the meeting on October 23rd. Finally, the Operator notes that the series of events is slated to end at the beginning of December, when the house will be sold. So, there is no need for legislation. The attorney for the Operator confirms the threat of suit and has asserted various legal arguments to back up the threat. These include, but are not limited to, the argument that no emergency exists which would justify adoption of an emergency ordinance and that any permit requirement for assemblies at private residences would violate the First Amendment because, among other things, it would confer unbridled discretion in the official issuing the permit. Neighbors contend that the Operator is unlawfully conducting a commercial endeavor on their residential street to their substantial detriment. They have argued that their safety is at risk, partly because the events block access to their homes. They have noted that many frail elderly and very young children, who need extra care and attention, live on the street. They also note that La Mesa is so narrow that, when parked on both sides, it is limited to just one lane and is therefore easily overwhelmed by large events. Thus, some residents testified that they were unable to reach their own 01 homes and families for long periods of time on the day of events because of traffic or gridlock on La Mesa and limousines blocking driveways. Likewise, buses or vans returning children and pets to the homes on the streets could not gain proper access. Residents expressed the fear that if family members needed emergency assistance, they would be unable to transport them to seek medical care and that emergency personnel might have trouble gaining access. And, residents characterized the impacts of the events as lasting from early morning until late at night and even into the next day. In addition to safety concerns arising from blocked access to their homes, residents made other claims about safety risks. One neighbor complained that a private security guard working for The House of Rock threatened her because she was taking a picture from the public sidewalk across the street. She reports that he threatened her, saying "I know where you live "; and she sought aid from a police officer. Another neighbor has noted that machinery, potentially dangerous to the young children who live on the street, is left on the street overnight. As to impacts on their quality of life, residents emphasized that the impacts of the events are, among other things, akin to those that would be created by having a nightclub on their street. In support of this claim, they have submitted photographs of one event and of parking congestion during an event which are supplied as Attachment D. As to specific impacts, neighbors note the noise, signage, arc lights, and stage that has been built on the property, limousines, and the significant presence of private security personnel. Others have complained of the impacts on the environment, including the air quality impact of so many vehicles idling for long periods of time. One neighbor has complained that a large catering truck damaged one of the City's Morton Figs that line the street. He submitted photographs, which are supplied as Attachment E. Another neighbor complained that, the morning after an event, while taking her children for a walk, she came upon two party goers, who had apparently passed out after the previous night's event, slept naked in a vehicle, and were getting dressed as the neighbor walked by. 10 In addition to describing these impacts, the residents argue that the Operator is not the owner of the home, does not actually reside there, and so should not be heard to argue that she is simply inviting people to assemble in her home. They claim that the events at The House of Rock are commercial in purpose and akin to concerts or nightclub operations. An attorney representing neighbors has asserted that the City's Temporary Use Permit Ordinance should have been interpreted by staff to apply to the events at the House of Rock. Counsel for the neighbors does not contend that the TUP provisions or any other currently existing law expressly prohibits the current operation of the House of Rock. Thus, that attorney has recommended, in writing, that the Council should adopt an emergency ordinance, applicable only to large events (perhaps involving more than 100 persons), which would control event frequency by requiring a TUP, making TUP's available only to persons residing in the home as their primary residence, and limiting such TUPs to perhaps three per year. More recently, the attorney recommended either an outright prohibition or a requirement of a Conditional Use Permit. Finally, at the October 2nd meeting and since, a number of neighbors and other City residents have asked the City Council to ensure that, whatever steps are taken to address the operation of The House of Rock and similar businesses, their rights to have gatherings, private parties, charitable events at their own homes are protected. Speakers at the October 2nd hearing cautioned against the potentially detrimental, unintended consequences of limitations on gatherings in private homes. Some expressed the fear that any such restriction would chill the exercise of First Amendment rights, a result that would be inconsistent with the City's core values. The Proposed Ordinance Legal staff concurs with one member of the public, who observed at the October 2nd hearing, that people tend to push limits and experiment (for their own benefit). Staff agrees that the marketing scheme for The House of Rock exemplifies that proposition. 11 As the record shows, this marketing scheme differs substantially from the occasional social /charity /political events, both in frequency, purpose, advertising and intensity of its impacts. The Operator herself has stated that there will be a total of at least eight large events in three months. And, she acknowledged in her testimony that additional events are possible. The primary purpose is to sell the house. The marketing blitz touts The House of Rock as though it were a night club or concert operation. And, the impacts on neighbors are extreme. In short, The House of Rock LLC is, to the best of staffs knowledge and understanding, conducting a new kind of commercial activity for Santa Monica. And, staff believes the currently available evidence shows that the event activity serves the commercial purpose of selling the home. The House of Rock LLC is a for profit corporation, and the house and its contents are being held out for sale. The Owner, designers and purveyors of furnishings are proposing commercial transactions with the goal of making profits. The events may benefit charities, but they are clearly and avowedly sales promotions. Indeed, the operator herself has described the marketing scheme for The House of Rock as "a crafty way to sell it." No one disputes this characterization. The method of marketing the property differs substantially from routine residential real estate sales, wherein an owner or broker holds an open house on Sunday afternoon and invites the public to see the property, perhaps offering cookies and coffee to the small stream of persons who come and go during the hours that it is open. This traditional method merely entails showing the home to persons who have a specific interest in home purchasing or sales. It does not entail operating what amounts to a private party or concert venue and furniture showroom. 12 At the public hearing on October 2nd, one controversial issue was whether existing laws are sufficient or whether a new law should be adopted — a question which staff recommends Council consider. Some residents testified that existing laws are quite sufficient to address their concerns and that City staff had failed to "step up to the plate." Other residents suggested that this was a new type of activity requiring new regulation. Staff believes that the operation of The House of Rock violates the general City policy stated in the Municipal Code that disfavors and strictly limits commercial operations in R -1 neighborhoods. And, insofar as The House of Rock is functioning as a furniture showroom, that part of the operation clearly violates current law. Partly because individual rights are claimed to be implicated, legal staff has recommended and continues to recommend against the expedients of interpreting the TUP law expansively or utilizing potentially available, existing remedies in the absence of a complete record. However, a record has now been built, and many questions about The House of Rock's operation have been answered. Thus, staff recommends the attached ordinance, which will effectuate long- standing City policy and clarify local law. Another factor to consider is whether this particular type of activity is likely to proliferate. If not, legislation may be unnecessary. However, staff believes that proliferation is likely for several reasons. First, the Operator of The House of Rock has indicated that she intends to continue flipping high end homes in Santa Monica and will continue to use The House of Rock model. Second, the commercial use of single family homes as either "design houses" or "party houses" has proliferated elsewhere in the region. A staff report prepared for the Malibu City Council in 2008 explains that individuals and large corporations had been buying or leasing homes on the beach and both renting them out as event facilities or otherwise making them available for private parties intended to display and sell products. See Attachment F. Third, Santa Monica's real estate market stayed strong through the recession and rebounded early; the City has long been known as a destination for entertainment and nightlife; and this reputation 13 has burgeoned in recent years with the growing presence of the movie and record industries. These realities make Santa Monica an ideal location for businesses like The House of Rock LLC. Accordingly the attached ordinance is presented for Council consideration and is recommended by staff. It would prohibit operating a single - family residential property as an event facility for the commercial purpose of selling that property. "Event facility" would be defined as a property that is repeatedly utilized for gatherings of more than 150 people. A full range of remedies would be afforded for violations; remedies would be available to both the People and City, as well as to any interested person. As with any law that could be challenged as abridging constitutional rights, there are legal risks; and they are difficult to quantify, partly because the courts' interpretation of the First Amendment and privacy rights can be unpredictable. Moreover, the efficacy of the proposed ordinance cannot be guaranteed because the Operator and her attorney have both notified the City that it would immediately be challenged. Alternatives There are at least three alternatives to adopting the ordinance and thereby imposing an outright prohibition on operating a residential property as an event facility for commercial purposes. First, Council could impose a permitting requirement. This is the approach that the City of Malibu took to deal with "party houses "; and it is the approach suggested (at least initially) by an attorney representing some of the La Mesa residents. But, as to commercial purposes, such a provision could be inconsistent with City zoning law, which limits commercial uses to those specifically authorized and establishes the general goal of preserving residential quietude and quality of life in R -1 districts. Also, ir enforcement would be problematic. If the permit conditions were violated, the permit could be revoked and /or a citation could be issued. However, it is not clear that these remedies would be sufficient to address the problem, partly because, as a practical matter, the fine for violation might be inconsequential compared to the value of the events and the resources of The House of Rock LLC. As to the suggestion that Council impose a CUP requirement, staff recommends against this approach, partly because CUPs run with the land. Nonetheless, if Council chooses to pursue the permit option, staff recommends amending the TUP provisions of the code by adding to the list of uses that may be authorized by a TUP, the following: "Q) Large events involving more than 150 people and including a commercial component." This language would follow the model utilized by the City of Malibu to control impacts of so- called "party houses ". Second, the Council could adopt no legislation and simply instruct staff to continue to enforce existing law in light of the current record. This option entails the least legal risk to the City but may not be sufficient to ameliorate neighbors' concerns Finally, at the hearing, Council could explore any limitations that the Operator is willing to voluntarily undertake in order to meet neighbors' concerns, minimize ill will between neighbors, and avoid the legal controversy that would likely result from the City prohibiting further House of Rock operations. The Operator has stated that she wishes to reduce hostilities, and she has indicated that she would abide by reasonable permit conditions. Therefore, it may be possible to reach a voluntary solution that would afford immediate relief to the neighbors and avoid the uncertainties and costs of litigation. Financial Impacts & Budget Actions There are no direct costs. Adoption of the ordinance might save police and other staff costs presently attendant upon monitoring the events. However, as discussed above, 15 adoption would likely expose the City to litigation, which would require the expenditure of City resources and could result in a judgment against the City. Prepared by: Marsha Jones Moutrie, City Attorney Approved: Marsha Jones Moutrie / CitYrAttorney U _r Forwarded to Council: Rod Gould City Manager Attachments: A. Proposed Ordinance B. Overhead Photographs showing location of 2009 La Mesa C. Photographs of 2009 La Mesa D. Online Materials About The House of Rock E. Photographs of House of Rock and La Mesa During an Event F. Photographs of Damage to Street Tree G. Staff Report re: Malibu Ordinance Regulating Party Houses 16 City Council Meeting: October 23, 2012 ORDINANCE NUMBER (City Council Series) ATTACHMENT A Santa Monica, California (CCS) AN EMERGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA PROHIBITING THE OPERATION OF A SINGLE - FAMILY RESIDENTIAL PROPERTY AS AN EVENT VENUE FOR THE COMMERCIAL PURPOSE OF SELLING THE PROPERTY WHEREAS, the City of Santa Monica is a small, older beach community, which attracts visitors from around the world and includes some of the most desirable and expensive real estate in the country; WHEREAS, throughout its history, the City has attracted large numbers of visitors who flock to the City, to enjoy the beach and spectacular natural setting in the day time, and the vast array of restaurants, bars, and clubs and other entertainment opportunities at night; and WHEREAS, the City is very densely populated: 92,000 residents in just eight square miles. And, the workforce is much larger than the residential population. Thus, though the residential population numbers approximately 92,000, on weekdays approximately 250,000 people are present within the City. And, on weekends and holidays, this number swells to 500,000 or more. 1 WHEREAS, traffic congestion and parking shortages pose significant problems for residents; and WHEREAS, given the present -day density of the City, the older infrastructure, and the huge numbers of visitors, the City Council makes a substantial and ongoing effort to balance residential and commercial interests and thereby protect residents' health, safety and quality of life through various laws and policies that protect safety, peace and quiet in residential neighborhoods, while also preserving the City's robust visitor- serving economy; and WHEREAS, the Council also strives, through the adoption of policies and laws, to strike a balance that both respects individuals' rights, including their rights of privacy and assembly; and, at the same time, protects the general welfare and common good against endeavors undertaken for commercial gain that endanger the public peace and residential tranquility; and WHEREAS, from time to time, individuals undertake commercial enterprises that are new to the City and require the re- striking of these balances; and WHEREAS, one such new business involves "flipping" a residential property by transforming it into an event facility. The home /facility is redecorated and furnished by professional vendors who provide services and goods in return for the opportunity to display and sell their talents and wares. The facility is then marketed as a fashionable party and concert venue and held open for a series of large private events, nominally for the benefit of charities. The events attract wealthy patrons, who are potential purchasers of the home and the design services and goods showcased there. To facilitate such purchases both those attending the events and "virtual visitors" can 2 download a phone application that links them to information about the goods and services and enables purchases of them; and WHEREAS, the series of charity events is a marketing ploy, which exposes the home and its contents to very large number of potential purchasers in a festive, party setting, that is more like a large, exclusive nightclub than a traditional open house or a furniture showroom; and WHEREAS, the adverse impacts of this marketing scheme upon the neighborhood are significant. They far exceed the impacts of selling a home through traditional means, such as broker caravans and Sunday afternoon open houses because of the timing, the large numbers of vehicles and party goers, the noise, and the lights, among other things. The impacts also far exceed those of a homeowner hosting an occasional large social or charitable event, in part because the scheme involves a series of events in a relatively short period of time; and WHEREAS, testimony and evidence presented to Council show that the impacts include, but are not limited to: major influxes of traffic to residential streets; oversized vehicles, such as stretch limousines and buses, blocking streets and driveways; attendant impairments to residents' access to their own homes and to ingress and egress by emergency personnel; loud music; bright, commercial lighting; front -yard stage shows and banner signage; degradation of air quality resulting from large numbers of idling vehicles; damage to street trees caused by oversized vehicles; and other disruptions to neighborhood tranquility, safety and aesthetics; and WHEREAS, in addition to describing such nuisance conditions, residents also testified to Council that they feared that their own and their families' safety was 3 menaced by drunken event guests, disrespectful private security guards and dangerous equipment left on the street. Moreover, residents testified that family members who are very elderly or infirm might not be able, in the event of a medical emergency to receive emergency medical care because the events caused gridlock on their street and thereby made it impossible, in the event of an emergency, to travel to and from their homes and receive emergency assistance. WHEREAS, many of the streets in the neighborhoods that are most likely to attract this type of commercial endeavor are very narrow and therefore particularly ill- suited to safely accommodate repeated, large influxes of traffic and over -sized vehicles; and WHEREAS, the desirability of property in Santa Monica, the number of very large and elegant homes, and the City's reputation as a night -time "hot spot ", and the apparent profitability of this business model all indicate that this marketing scheme is likely to proliferate unless it is prohibited; and WHEREAS, neighborhood residents impacted by this new business have demanded that the City Council protect the quietude and safety of their street; and WHEREAS, neighbors and others, who host large social events and donate use of their homes for charitable fund raisers, have expressed concern about the protection of their constitutional rights to privacy and to conduct non - commercial assemblies of their own choosing; and WHEREAS, the City Council is mindful of the fact that property owners have the legal right to freely buy and sell their land; and 12 WHEREAS, the City Council intends that this ordinance will respect the legal rights of all. It will not preclude marketing single - family residential real estate in Santa Monica through standard means. Nor will it preclude large social gatherings, charitable events or political fundraisers in residential neighborhoods; and WHEREAS, the ordinance is merely intended to preclude the operation of one particular and specific type of marketing scheme that creates extreme nuisance conditions and thereby degrades public welfare, safety and quality of life in residential neighborhoods and is particularly likely to proliferate; and WHEREAS, based on the evidence presented to the City Council at the October 2, 2012 meeting and at this meeting, the other evidence of record, and the foregoing findings, the City Council declares and concludes that this ordinance is urgently needed for the immediate preservation of the public peace, health, or safety and to avoid a current, immediate and direct threat to the safety, health, or welfare of the community, and the findings above taken together constitute the City Council's statement of the basis for the Council's finding of necessity and urgency. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Santa Monica Municipal Code Section 4.08.800 is hereby added to read as follows: (a) Prohibition: No person shall, for the commercial purpose of selling a single - family residential property, operate such residential property as an event facility. No business license shall be issued for such an operation. For purposes of this N7 section, an "event facility" is property that is utilized for gatherings of more than 150 people at any one time. (b) Penalties and Remedies: (1) Any person violating this section shall be guilty of a misdemeanor, which shall be punishable by a fine not to exceed One Thousand Dollars ($1,000.00) per violation, or imprisonment in the county jail for a period not exceeding six months, or both, or shall be guilty of an infraction, which shall be punishable by a fine not to exceed Two Hundred Fifty Dollars ($250.00). (2) Any person violating this section may be subject to administrative citation issued pursuant to Chapter 1.09 of this Code; (3) The City or any interested person may seek an injunction or other relief to prevent or remedy violations of this section; (4) The remedies provided by this section are not intended to be exclusive, and their specification here shall not prevent the City any interested person from utilizing any other remedies afforded by law. A SECTION 2. Any provision of the Santa Monica 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. SECTION 3. 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 this Ordinance. The City 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 4. 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. This Ordinance shall become effective immediately upon adoption. APPROVED AS TO FORM: MARSHA JONES MOUTR� City Aft/orneyE_ 1� 7 ATTACHMENT C �`��„�„ r ,�c '.:. .. _ ._. ,:...l house of rock I Tumblr ATTACHMENT D Follow the world's creators. foolswillbefoolish Read More , #iration #the expendables #personal idreamincad 04 Pagel of 8 Log in Sigr http://www.tumblr.com/tagged/house-of-rock 10/10/2012 house of rock I Tumblr Santa Monica's House of Rock Celebrates Icons The former home of actress /singer Kathryn Grayson has been transformed into the debut House of Rock showhouse in Santa Monica. The home is registered with the Santa Monica Landmarks Commission The entire 10,000- square -foot estate honors its past but has been updated with state -of- the -art appliances and fixtures, multiple -room recording capabilities, smart home technology and a pool and outdoor entertainment space. While the showhouse will not be open to the public, just for private charity events, the Get This app on its website will enable virtual visitors to purchase specific items featured in each room. "Read more about this project on the Editor At Large at http: //goo.gi /xLzZG and via the LA Times htti)://www.latimes.com/ features /home /la -lh- house -of -rock- santa - monica- 20120914.0,1432659.story Source: goo.gl #santa monica #rock n' roll #interior design modernwarpaint Mnine, the Second Time Just wanted to update you all on Mnine's second performance at House of Rock on September 25, 2012. Prior to arriving at HoR, we had eaten thai food for lunch and satiated ourselves. This attributed to our lack of motivation to load up our equipment and gear, and to be frank, we really didn't practice much during the week. We had sort of abandoned our previous methods of preparation, and we tried something different. http: / /www.tumblr.com /tagged /house -of -rock 10/10/2012 house of rock I Tumbh' Page 3 of 8 The main shift of mindset really had to do with our show from the week before. Basically, we had challenged ourselves by running all of the sound through Matt's interface and using Ableton Live to control our levels and output of sound. We had complications with our monitors and we weren't able to control the sound once we were playing because well... we were performing. However, the night was a learning process, and since that night we adjusted our ideas of approach. So when it came for us to come up with a set list... load up a ton of equipment... and get in a practice... after a stomach full of spring rolls and curry, we said 'fuck it'. Why not just go with a minimal load with no intention of any set list, and play what we feel? Which is what happened. And it was a damn fun experience. The flaws were there of course, yet, giving up all control of sound, trusting a drummer who has never practiced with us to play songs on a whim... that was the beauty of our approach. The great thing about it was when we played 'Nutshell', we had actually drawn in two passerbys into the venue, and they bought us drinks. Another random guy came up and said he wished he could have gotten up on stage and played the lead guitar to 'Nutshell', and we encouraged that he should have. A girl named Sarah, had asked if we were playing again that night because she enjoyed watching us the week prior. It was nice that we were getting recognition for music that isn't typically played in that sort of venue. It's also an amazing feeling to see other local musicians perform, and to be able to relate to them through music. I am really psyched for our next show which is scheduled for Tuesday, October 2, 2012 at House of Rock, and I'd be even more psyched to see you there. #Mnine #matt eller i #kate ramsey xhbs 13 #Santa Monica #Josiah Leming #Fashion #Guitar #Hipster #room #cool room # omgitscandace http: / /www.tumblr.com /tagged /house- of -fock 10/10/2012 house of rock I Tumblr I'm in Billboard Magazine! Page 4 of 8 Last weekend with Music Unites I got the chance to spend all day with 30 new pals, 30 underprivileged girls from Compton, CA who have dreams of devoting their lives to music like I have decided to do. These girls were bused from their neighborhood in Compton to Santa Monica, CA were we held a special eventful day called the "Be Your Own Muse" initiative for them in a $29 Billion mansion called "The House Of Rock ", a space devoted to charity work and creativity. At the HOR they learned from 7 panelists of the best women in the music industry. After that, I performed for them many songs and then I personally got the chance to host a song writing session with these girls along with the AMAZING Warner Bro. Records recording artist Helena - I shared my story, told them about how great tumblr is and all of my followers on tumblr xoxo and together we wrote a tag of a song I wrote called "Out Of The Blue" which I performed at B.B. Kings a week prior and which will be on my next project. I love these girls. It was such an honor to be in LA celebrating the launch of Music Unites... I can't wait to return... my return will be very very soon!!!!! Read the billboard magazine article HERE!!! #CA #Compton #Girls #LA #be your own muse #music #music unites #philanth biancashameless http: / /www.tumblr.com /tagged/house -of -rock 10/10/2012 house of rock I Tumblr Page 5 of 8 Remember when Tiger Army played at House of Rock in 08 and we all went? Yeah, me neither. Good thing I have these pictures to remind me. So long ago! Alger army #corpus christi #nick13 tinynightmare1 These are photos from Santa Monica's House of Rock. I had a great time thanks to Pesci and Phil from Swinq House Studios. Swing House Studios set up the stage, lighting and sound for the event where Shiny Toy Guns and Black Rebel Motorcycle club played. There were a ton of other performances going on throughout the house as well, including A House for Lions. AHFL played on the third floor, utilizing the sound studio in the house that was designed by JJ Puig. I http://www.tumblr.com/tagged/house-of-rock 10/10/2012 house of rock I Tumblr Page 6 of 8 met JJ via Mr. Bonzai (Mr. Bonzai and his wife Keiko are my new -found favorite people. I want to adopt them as my grandparents or something.) JJ totally just reminded me of Professor Snape from Harry Potter. All in all it was a great night, and I was really glad I was able to meet Mr. Bonzai and Keiko and I hope I run into them sooner rather than later. Very interesting, intelligent and smart couple. #party. #music #shiny toy guns #fun #sound #studio #interior design #home v slightlysinful http: / /www.tumblr.com /tagged/house -of -rock 10/10/2012 house of rock I Tumblr Page 7 of 8 So last weekend I attended the first annual "House of Rock" event in Santa Monica. In all honesty, the entire ordeal was a giant money -pit. House was clearly a victim of the economy, and some investors wanted to throw a massive party to try and sell the house. Nonetheless, I had a great time with Emma and the unknownlab crew. Open bar and Shiny Toy Guns... not too shabby. #money pit #unknownlab #hyper #getmore #santa monica #la parties impulsivefancies The House of Rock in Santa Monica http: / /www,latimes.com /features /home /la -lh - house -of- rock - santa- monica- 20120914,0,14 32659 story denniskillsl http: / /www.tumblr.com /tagged/house -of -rock 91 10/10/2012 house of rock I Tumblr Can't wait:D P.: R #for today #tickets #corpus christi #show #blue #six #white #black #amazing Next page — © Tumblr, Inc. Help About Developers Themes Meetups Jobs Terns http://www.tumblr.com/tagged/house-of-rock 10/10/2012 The Editor at Large > Santa Monica's House of Rock showhouse celebrates icons Page 1 of 3 Sign in I Create an Account r.1 Ki a the interior design community NEWS CALENDAR EDITOR TV JOBBOARD LOOK BOOKS INTERIORS C9 Share - Santa Monica's House of Rock showhouse celebrates icons Posted on Friday, September 28, 2012. The former home of actress /singer Kathryn Grayson has been transformed into the debut House of Rock showhouse in Santa Monica. Grayson, who is known for her performances In Anchors Aweigh, Showboat and loss Me Kate, bought the house in 1945 and lived there until her death in 2010. The landmark Santa Monica estate was built in 1926 by Pasadena architect Elmer Grey —who also designed the Beverly Hills Hotel and Huntington Library — fn a period English CottageRUdor Revival style. It sits on almost acres and overlooks the Riviera Country Club. Created by builder /designer Elaine Culotll and Jennifer Vernon, an entertainment and business strategist, House of Rack is intended as a coding - edge showcase for live music and charily events, it features rooms envisioned by a roster of top interior designers and boasts a multimillion- dollar recording studio created by multi - Grammy® winning mixer /producer Jack Joseph Puig and Tyler Barth of Blue Microphones. House of Rock has been wired to stream live music and stoles, making every event and performance instantly accessible across all media platforms. DIsibg room by David Bromsrad Playa bomape to Too Tuner The home is registered with the Santa Monica Landmarks Commission and all the original details — pitched roof, double chimneys, paneling, wood beams, stained glass bay window —have been preserved. The entire 10,000- square -foot estate honors its past but has been updated with slate -of -the -art appliances and fixtures, multiple -room recording capabilities, smart home technology and a pool and outdoor entertainment space. While the showhouse will not be open to the public, just for private charity events, the Gel This app on its website will enable virtual vistors to purchase specific items featured in each room. http: / /editoratlarge.com /articles /santa- monicas- house -of -rock- showhouse- celebrates -icons 10/16/2012 The Editor at Large > Santa Monica's House of Rock showhouse celebrates icons Page 2 of 3 The muse re,., by Susan Cv1he1 hssadnies, dedkltel to fiq 04111 of IN E Slree, Bacot Designers participating in the show house include Saint Hayek, David Bromides, Antonio Sufferers, Elaine Culotti, Susan Cohen Associates, Kyle Schuneman, and Kelly van Helen, Baron Rogers and Ralph Pasch All have dedicated (heir rooms to (heir rock heroes —the Roiling Stones, This Turner, Fleetwood Mac, the E Street Band, Aleuts Morissette, Scissor Sisters, among others. Mailer bNmoin by Santl Hayek, an Immaly to 1100s musk Ralph Pucci International, for its debut show house, created a sitting room to honor the Rolling Stones. Ralph PIIBBi's inspiration behind the room was to create a modern day version of ilia Rolling Stones 1972 recording of "Exile on Main Street" that took place at the Villa Nellcote in Villefrance- Sur -Mer In the South of France. As on the historic recording, there was an mix of rock, blues, country and gospel. The furniture selected for the room is a mix of chic, elegant, timeless and sculptural, with a rawness to evoke a similar spirit of the recording session. To capture the rawness of the recording, eleven Marcus Leatherdate black and while photographs entitled "New York 1950's" were chosen for the walls and the room was designed around the photography. The sofa and club chair from the Ralph Pucci Furnituadone) collection is modern and minimal like the blues; the silver - plated and blackened bronze side table by Eric Schmitt represents the Rock'n Roll spirit; the Jim Zivic coal table and Llanne Got(] glass chandelier represent the freedom to explore and improvise. http: / /editoratlarge.com /articles /santa- monicas- house -of -rock- showhouse- celebrates -icons 10/16/2012 The Editor at Large > Santa Monica's House of Rock showhouse celebrates icons Page 3 of 3 Slhluy room by Aolph Puai Vendors include Kohler, Corbett LighlIng, Luadors Limestone, DuChateau, Armstrong Ceiling, Dune Tile, Walker Zanger, Oceanside Glass Tile, IGavel, Siloslone, SloneMart, Selganl, Thormador, Zephyr Ventilation, domVision, California Pools. OW.,epby by M vod EskaimzyMlE Phologrepb, 02012 JSN Global Media, LLC FAQ About Us Contact Terms Privacy Polley http: / /editoratlarge.com /articles /santa- monicas- house -of -rock- showhouse - celebrates -icons 10/16/2012 `V � i � ` r• r' }S'i y�M1�� Y yI a fy 1 r y �..4 fr e� t ,tf�� alfX •dY.r, x , �,. u�� � NCH .. _ t r \WW yfd� ry 1 6m pir 11.14 h`1 ATTACHMENT G Council Agenda Report City Council Meeting 03.10.08 Item 4.F. To: Mayor Jennings and the Honorable Members of the City Council From: Christi Hogin, City Attorney Date prepared: February 18, 2008 Meeting date: March 10, 2008 Subject: Party Houses RECOMMENDED ACTION: 1) After the City Attorney reads the title of the ordinance, introduce on first reading Ordinance No. 322 adding a special events chapter to the Municipal Code to regulate special events in residential neighborhoods and prohibit party houses.; and 2) direct staff to schedule second reading and adoption of Ordinance No. 322 for the March 24, 2008 City Council meeting. FISCAL IMPACT: None known. DISCUSSION: Party houses have been creating nuisances in residential neighborhoods. A "party house" is a home in a residential neighborhood that is used predominately for parties and not any family's primary residence. Reportedly, there are a few homes on bluffs in Malibu that are like wedding factories. During the height of the wedding season, every weekend,. both days, a wedding will be held— bringing with it the attendant cars, limos, a DJ or a band, catering trucks, rented tables /chairs, guests lall coming into the neighborhood: And when the wedding involves a celebrity add paparazzi to the mix.. If the celebrity is really big then "news" organizations will send helicopters. Big companies like LG, MTV and Polaroid have been buying or leasing houses on the beach and either renting them or making them available to celebrities for parties, drawing out the paparazzi and reportedly using product placement to cash in on events: A few examples are the "Polaroid House," 23822 Malibu Road; the "LG House," 23858 Malibu Road; and the "Silver Spoon. House" on Carbon Beach. Attached to this report . are a few of the many articles that appeared last summer in connection with these party houses that both describe typical events and demonstrate the press attention these houses have (not unintentionally) garnered. HAstaffreports \2008 \ch party house.doc Page 1 of 3 Agenda Item # 0. Residents in the neighborhoods where these party houses are located complain that the houses are being used for "commercial" purposes and don't belong in a residential neighborhood. Numerous complaints have been lodged with the sheriff and the City's code enforcement division as a result of noise, parking, traffic and neighborhood . disturbances generated by these houses. I have been asked whether the City could just prohibit a person or company from using a house for commercial events. One of the basic premises of regulating the use of private property is that any distinctions drawn among those subject to the restrictions and those not must be rationally related to a legitimate government purpose. In this situation, the City has a legitimate purpose in maintaining the residential quality of its neighborhoods and imposing restrictions on private property owners that result in maintaining a rural residential atmosphere as envisioned by the City's General Plan. Of course, excessive use of one's property for large events, whether owned by a corporation or longtime residents, is equally disruptive to the neighborhood. Regulating in this area is tricky because large events are from time to time part of the ordinary operation of a residential neighborhood, when such. events are subsidiary to the primary residential uses. Homes are used to celebrate a milestone anniversary, a wedding, a college graduation and for holiday gatherings — Fourth of July BBQs, New Year's Eve parties. Under ordinary circumstances, the frequency of such events is regulated naturally by the fact that there are "special" events, outside the normal routine of the household. In preparing the draft ordinance, for these reasons, we presumed that the City Council was not interested in precluding all large gatherings in a single family home. The draft ordinance defines a "large event" as 100 or more people. It requires a Special Event Permit (SEP) for any such event and limits the number of such events to four per calendar year. In addition, the draft ordinance proposes that certain events, even where they attract or involve fewer than 100 persons, are similarly restricted to four per year and require a permit. Those events are ones in which there is some "commercial" element or some aspect of the operation of the event that is likely to impose on the neighborhood. The permit is ministerial and issued upon receipt of a complete application and subject to conditions where the City Manager finds conditions necessary to prevent the event from becoming a nuisance. This provides a simple, uncomplicated method of having residents comply with the permit requirement The ordinance allows only 4 special events per household. This will eliminate the party houses that plagued the City last summer. HAstaffreports \2008 \ch party house.doc Page 2 of 3 Agenda Item # 4.F. ATTACHMENTS: Ordinance No. 322 Samples of articles on Malibu party houses H: \staffreports\2008 \ch party house.doc Page 3 of 3 Agenda Item # 4.F.