HomeMy WebLinkAboutCC AG PKT 2012-03-26 #H ,t6-3(57;_q'4\
AGENDA STAFF REPORT r
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DATE: March 26, 2012
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Sean P. Crumby, Assistant City Manager/Public Works
SUBJECT: CONSIDERATION OF WAIVER OF FEE REQUEST
FOR 901 OCEAN AVENUE
SUMMARY OF REQUEST:
It is requested that the City Council consider a waiver of fee request for 901
Ocean Avenue.
BACKGROUND AND ANALYSIS:
The City of Seal Beach allows development or expansion of businesses on Main
Street that cannot adequately provide sufficient parking within a business' own
private property through the City's Parking-In-Lieu program. When utilized by a
business owner or property owner, a fee is allowed to be paid in exchange for the
property not providing enough parking on the individual site. Those fees are
collected by the City and kept in a separate fund and can only be used for the
improvement or development of parking within the Main Street specific plan area.
On October 15, 1986 the Planning Commission approved Conditional Use
Permits 14-86 and 15-86 allowing for the operation of a restaurant (Kinda
Lahaina Broiler) at 901 Ocean Avenue. The property owner was required to pay
a Parking-In-Lieu fee of $100 per year for each deficient parking space. The
restaurant at 901 Ocean Avenue was determined to be deficient by 11 parking
spaces and therefore owe $1,100 per year.
This restaurant owes Parking-In-Lieu fees dating back to 1999. Eleven years of
non-paid parking-in-lieu fees total $13,100.
The restaurant has been operating as the Kinda Lahaina Broiler. This restaurant
has been sold. The City is not allowing close of the sale for this restaurant until
the parking-in-lieu fees are paid and made current. The restaurant owner has
requested a waiver of these back fees.
Waiver of parking-in-lieu fees has not been granted in the past. Waiver of fees
for any individual business affects the City's ability to provide parking for all of the
Agenda Item H
business and visitors to Main Street Seal Beach. Staff does not recommend
waiver of these parking-in-lieu fees, but rather enforce payment of these fees
prior to allowing closure of escrow for the sale of the business.
ENVIRONMENTAL IMPACT:
There is no Environmental Impact related to this item.
LEGAL ANALYSIS:
The City Attorney has reviewed and approved as to form.
FINANCIAL IMPACT:
If a waiver is granted of parking-in-lieu fees, a reduction in revenue will occur and
reduce the City's ability to deliver needed parking improvements.
RECOMMENDATION:
It is recommended that the City Council consider a waiver of fee request for 901
Ocean Avenue.
SUBMITTED B : NOTED AND APPROVED:
Sean P. , 411 . Ingram, City M. nager
Assistant City Manager/Public Works
Attachment:
A. Letter from Kinda Lahaina owner
Page 2
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' Seal Beach CA 90740
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March 7,2012
Ms.Jill Ingram, City Manager
Dear Ms. Ingram,
My name is Kathy Duran. I am one of the owners of the "Kinda" Lahaina Broiler and have been for over
18 years. I am writing to you to request an abatement of in lieu parking fees due from "Kinda" Lahaina
Broiler.
Several years ago the in lieu parking fees were discussed by the merchants paying these fees and the
fairness of them since it only applied to certain merchants but not the entire city. After the issue was
addressed,the city stopped billing for fees. Then all of a sudden,without any notice,we were billed for
all past years in which invoices were not sent. The•merchants gathered and decided they were not
going to pay them as only selected merchants were charged these fees. It was our understanding that
the fees were being collected to build a parking structure, but one was never built.
It is now my understanding that some of the merchants have settled with the City. I was not aware of
this until I met with Michael O'Brien and Ms. Lin on Wednesday, March 7; 2012,to discuss the fees.
My case is different than other merchants. We had a fire in 2006 and lost everything. The business had
to be rebuilt as my lease required it. It took 15 months to do so.
I was insured with Farmers Insurance. Each year I renewed my policy, I asked my agent if I was fully
covered. My concern was if anything ever happened would we be covered as our building was so old
that it would take a lot of money to rebuild to Code. He always assured me that I had no concerns as I
had full replacement cost. He failed to tell me about a clause called "Building and Ordinance"that was
not included in the policy. This is what is required to bring the building up to Code. Well,the bulk of the
cost was bringing the building up to Code, including a $20,000 grease trap.
Once we had started the construction we had to finish. My contractor knew how much insurance I had
but didn't think it was a problem. I paid him weekly and soon ran out of money. I took an equity line
loan on my home. My brother-in-law took one on his as well. We also took another loan on the
business. All of these loans totaled$700,000. Although it was a lot of debt, we felt that the community
had always supported us,and if it got to be too much,we could always sell and clear the debt.
Page 2 Of 2
Ms.Jill Ingram, City Manager
Perhaps all of the debt was not the best decision, because then the economy crashed and our business
dropped 25-40%. We refused to believe that the economy would continue to decline,so I began
drawing money every month from my IRA account. Over the next two years of this downturn, I
managed to deplete my life savings.
We have now been forced to sell the business at way below the market value and our debt load. When
all is over,I will have to file personal bankruptcy.
We have always been upstanding citizens and thought we contributed to the betterment of Seal Beach,
We always paid our bills on time and never neglected any of them.
This is the most devastating time in our lives. We are in our 60's and 70's and have no more resources.
We never intended to sell our business under market with a mountain of debt. I am pleading with you
and all of the City Council members to have compassion and remove these fees that are due. Escrow
cannot close until this is taken care of and it is scheduled to close in 15 days.
The city clerk said I must speak before the City Council in public. Please know whenever I try to discuss
this subject; I can barely speak as I am broken-hearted and embarrassed that we got ourselves into this
situation and to even ask for your mercy and compassion.
Anything you can do the help us would be appreciated. There are barely enough funds in escrow to
cover the back taxes and liens. Please help me expedite this situation and have mercy. Please abate any
past fees due.
Thank you for your time and consideration.
Kathy Duran