ITEM 8-D

Council Mtg:  August 9, 1994             Santa Monica, California

TO:       Mayor and City Council

FROM:     City Staff

SUBJECT:  Recommendation to Adopt an Emergency Ordinance Amending
          Ordinance 1736 (CCS) Concerning the Processing of
          Certificate of Economic Hardship Applications for
          Designated Landmark Structures.

INTRODUCTION

This report recommends that the City Council adopt an emergency
ordinance amending the Earthquake Recovery Act (Ordinance 1736
(CCS)) to provide expedited processing of Certificate of Economic
Hardship applications for designated landmark structures that
suffered substantial damage from the Northridge Earthquake.  

BACKGROUND

On August 2, 1994, the City Council directed that an amendment to
Ordinance 1736 be prepared that modifies the timelines setforth
in Santa Monica Municipal Code Section 9.36.170 regarding
Certificate of Economic Hardship application procedures.  Under
the existing provisions, the initial Certificate of Economic
Hardship public hearing must occur within 45 days of the date the
application is deemed completed.  The Landmarks Commission then
has up to six months, or one year if the project requires an
Environmental Impact Report (EIR), to render a decision on the
application.  If the Commission finds that all reasonable use  or
economic return from a designated landmark will be denied a
property owner, the application can be delayed for up to an
additional 120 days to provide time to investigate other options
that may lead to the property's preservation.  At the end of this
time period, if the Commission finds that the property cannot be
put to a reasonable economic use, the application is approved. 
Assuming an EIR is not required, this process would take
approximately one year.   If the application is appealed to City
Council, final disposition could take an additional 3 months.

The purpose of this amendment is to compress these timelines for
red or yellow tagged earthquake damaged landmark structures.  In
addition, the Landmarks Commission's role would be modified, with
the Commission evaluating the evidence presented for economic
hardship at the same time as the alternatives to encourage
preservation.  The amendment proposes that the application be
deemed complete within 7 working days of submittal.  The
Landmarks Commission public hearing would be held within 45 days
after the application is deemed complete.  The Landmarks
Commission's evaluation and determination on the Certificate of
Economic Hardship would occur no more than 60 days after the
application is deemed complete.  If appealed, the Council's
hearing on the matter would follow within 30 days of the
Commission's recommendation.  Application processing would be
reduced from over one year to no more than 95 days.  Applications
could be processed under the time limits set forth in the
ordinance.  In addition, to further expedite the process, it is
recommended that the public hearing notification occur not less
than 7 days, rather than the standard 10 days, prior to the
hearing.

The ordinance also specifies that, except for any additional
evidence or testimony requested by the City Council, the Council
rely on the evidence presented to the Landmarks Commission. 
Additional evidence may be submitted to the Council only if such
evidence could not feasibly have been presented to the Landmarks
Commission.  This does not preclude the public's ability to
testify at the appeal hearing, or prevent the submittal of
rebuttal testimony, the necessity of which would not have been
evident prior to the Landmarks Commission hearing.

The expedited process is necessary in light of the fact that
damaged buildings tend to rapidly deteriorate and may eventually
become a threat to public safety.  Other than the process for
Certificate of Economic Hardship applications, no other
provisions or procedures in the Landmarks Ordinance will change. 
It is estimated this ordinance will apply to less than six
properties.

BUDGET/FINANCIAL IMPACT

The recommendation presented in this report does not have any
budget or fiscal impact.

RECOMMENDATION

It is respectfully recommended that the Council adopt the
attached emergency ordinance.

Prepared by:   Suzanne Frick, Director
               D. Kenyon Webster, Planning Manager
               Amanda Schacter, Senior Planner
               Planning & Zoning Division                       
               Planning and Community Development Department


                                          ORDINANCE NUMBER     (CCS)
   (City Council Series)
     
                  AN ORDINANCE OF THE CITY COUNCIL OF THE
                      CITY OF SANTA MONICA AMENDING 
            THE EARTHQUAKE RECOVERY ACT CONCERNING PROCESSING
                  OF CERTIFICATES OF ECONOMIC HARDSHIP 
                  FOR RED AND YELLOW TAGGED STRUCTURES 


       WHEREAS, on April 19, 1994 the City Council adopted
Ordinance Number 1736(CCS), the Earthquake Recovery Act,
establishing procedures and standards for repair and
reconstruction of earthquake damaged structures; and 

       WHEREAS, it is necessary to amend the Earthquake Recovery
Act to add provisions expediting the review of certificates of
economic hardship for historic structures which have been yellow
or red tagged; 

       NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES ORDAIN AS FOLLOWS:

       SECTION 1.   Findings and Purpose.
(a)  With limited exceptions, the provisions of the Landmarks
Ordinance, Municipal Code Chapter 9.36 require the issuance of a
Certificate of Economic Hardship before the demolition of any
Structure of Merit, Landmark or Landmark Parcel, or building or
structure within a Historic District ("Historic Structure").  The
process for obtaining a Certificate of Economic Hardship entails
at least two hearings before the Landmarks Commission, and a
possible appeal to the City Council.  The time estimated to
complete such process is six months to one year, because, among
other things, the Landmarks Commission is authorized to take up
to six months, or one year if the project requires an
Environmental Impact Report, to render a decision on the
certificate application.
       (b) Numerous Historic Structures have been damaged by the
January 17, 1994 Northridge earthquake ("Earthquake") and its
aftershocks, and owners seek to obtain Certificates of Economic
Hardship as a preliminary step to demolition.  In some cases, the
initial damage suffered by the structure has become progressively
worse since the Earthquake due to aftershocks and other effects
of the passage of time.
       (c)  The City wishes to expeditiously determine whether
such structures are eligible for demolition while at the same
time not sacrificing the City's goal of safeguarding its historic
heritage and other goals set forth in Section 9.36.020 of the
Landmarks Ordinance. 
       (d)  The purpose of this Ordinance is to streamline and
expedite the processing of applications for a Certificate of
Economic Hardship for red- and yellow- tagged buildings, but not
to change the standards which apply to the approval or
disapproval of such applications.

       SECTION 2.  Section 22 is hereby added to Ordinance Number
1736 (CCS), the Earthquake Recovery Act, to read as follows:

       SECTION 22. Certificate of Economic Hardship. 
     An application for a Certificate of Economic Hardship
     which is filed in connection with an application for a
     demolition permit for a structure which has been posted
     with a no-entry (red-tagged) or limited entry (yellow-
     tagged) notice as a result of damage caused by the
     January 17, 1994 Northridge Earthquake or its
     aftershocks ("Earthquake") shall be subject to the
     provisions of Chapter 9.36 of the Municipal Code,
     except as amended below:
       (a) Timelines.
          (1) Any application filed pursuant to Section
     9.36.170 shall be deemed complete or incomplete within
     seven (7) working days after the Planning Division
     receives a substantially complete application together
     with all information, plans, specifications, statements
     of work, and any other materials and documents required
     by the application form supplied by the City.
          (2) The public hearing required by Section
     9.36.170(c) shall be held within forty-five (45) days
     of the date on which an application for a Certificate
     of Economic Hardship was deemed complete.
          (3)  The notice of public hearing required by
     Section 9.36.170(c) shall be given not less than seven
     (7) days before the date scheduled for the hearing.
          (4)  The time in which the Commission must
     render a decision on the application pursuant to
     Section 9.36.170(d) shall be not later than sixty (60)
     days after the application was deemed complete.
          (5)  Any notice of appeal filed pursuant to
     Section 9.36.180(b) concerning Commission determination
     on an application for a Certificate of Economic
     Hardship must be filed within five (5) working days of
     the date that such determination was made or deemed
     approved or disapproved.
          (6)  The hearing required by Section
     9.36.180(c) shall be held within thirty (30) days after
     the notice of appeal is properly filed with the
     Director of Planning and the City Clerk.
          (7)  The notice of public hearing required by
     Section 9.36.180(d) shall be given not less than seven
     (7) days before the date scheduled for the hearing.
          (8)  The investigation, recommendation, and
     other actions required by Section 9.36.160(d) shall not
     cause a delay in the application, but shall be
     completed within the time specified in Subsection
     (a)(4)  above.
          (9) The time periods specified in subsections
     (a)(1) through (a)(8) above may be extended upon mutual
     agreement of the Commission and applicant.
     
       (b)  Evidence on Appeal.  Except for additional
     evidence  or testimony specifically requested by the
     City Council, the City Council on appeal shall rely on
     the evidence presented to the Landmarks Commission. 
     Additional evidence may be submitted to the City
     Council only if such evidence could not feasibly have
     been presented to the Landmarks Commission.   Nothing
     in this Section is intended to affect the ability of
     the public to testify at the public hearing on the
     appeal, or to prevent the submittal of rebuttal
     testimony the necessity of which would not have been
     evident prior to the Landmarks Commission hearing.   
     
       SECTION 3.  Any provision or provisions 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, are hereby repealed or modified
to that extent necessary to effect the provisions of this
Ordinance.

       SECTION 4.  This Ordinance is declared to be an urgency
measure adopted pursuant to the provisions of Section 615 of the
Santa Monica City Charter.  It is necessary for preserving the
public health, safety, or welfare as set forth in the Findings
and Purpose section of this Ordinance.

       SECTION 5.  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 any competent
jurisdiction, such decision shall not affect the validity of all
remaining portions of this Ordinance.  The City Council hereby
declares that it would not have passed this Ordinance if any
portion, section, subsection, sentence, clause, or phrase would
subsequently be declared invalid or unconstitutional.

       SECTION 6.  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 be
effective upon its adoption.

APPROVED AS TO FORM:

______________________________
MARSHA JONES MOUTRIE
City Attorney