By Olin Ericksen
Staff Writer
June 1 -- A developer stopped in his tracks by a
new local law from building more than 1,000 studio units deemed
affordable is still considering suing the City.
The attorney for Neil Shehkter, president and CEO of NMS properties,
said Wednesday that his client is still readying for a court
battle if Santa Monica holds up the proposed projects.
"Litigation remains an option we are pursuing vigorously,
but we have not filed anything yet," said Derek Jones,
on of Shehkter's attorneys from Jeffer, Mangols, Butler and
Marmaro LLP.
Still, Jones signaled Shehkter would be willing to talk with
the City to resolve the dispute.
"We are continuing to explore our options, both political
and legal," he said.
Renting for more than $1,000 a month, the units -- 623 of
which are in a proposed complex in Santa Monica’s industrial
zone -- could be pushed into the City’s notoriously
slow permitting process as a result of the new law.
Approved in April, the emergency ordinance came two weeks
after City Council members learned that 1,057 studios of no
more than 400 square feet and renting for more than $1,000
each had entered the planning pipeline under an ordinance
that allowed large affordable housing projects in non-residential
zones to be quickly approved administratively.
The new emergency ordinance ensures that any project of more
than 50 units anywhere in the city, including those that are
affordable, must go before the Planning Commission, whose
decision could be appealed to the council.
The City already has a similar law on the books, but it is
reserved largely for residential areas.
Shehkter and his legal team argue that they are creating critically
needed housing and playing by City rules when the emergency
ordinance was passed.
"They are pursuing fully affordable housing projects,"
said Jones.
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