By Jonathan Friedman
Lookout Staff

April 26, 2010 --For the second time this year, the City will be going into litigation regarding alleged non-compliance of a development agreement. Although he did not get into specifics, City Manager Rod Gould told attendees of a community meeting on Thursday that the City Council had reached a decision regarding the Dorchester House and it “involves litigation.”

A 1982 development agreement requires that 15 units on the first floor of the Dorchester condominium on Fourth Street near California Avenue be leased to low-income and moderate-income persons at a reduced rate. The Dorchester developer agreed to this condition in exchange for zoning variances. It has been alleged that some of the units are occupied by condo owners or are being rented at a market rate by those who do not qualify as low- or moderate-income ( "City Crafting Policy on Development Agreement Enforcement," March 29, 2010)

“I cannot talk about the litigation, but it will become public and you can determine whether or not it is adequate,” Gould said at a meeting hosted by the Neighborhood Council, an umbrella organization representing all of Santa Monica’s neighborhood groups.

Gould said a decision was reached at the April 13 City Council meeting during closed session, a portion of the meeting not open to the public when legal and personnel matters are discussed. State law prohibits public discussion of what goes on during closed session, but decisions are reported. Gould said an announcement would be made “before the May 11 City Council meeting.” There is a Council meeting on Tuesday and that is the only one before May 11, so one could conclude the announcement would be made at that time.

This would mark the second lawsuit this year by the City regarding a development agreement. In February, the City filed suit against the owners of the Arboretum on Colorado Avenue and Cloverfield Boulevard for allegedly violating the affordable housing requirement in its development agreement. See article City Suit Alleges Affordable Housing Violation (Feb. 18, 2010)

At the May 11 Council meeting, City staff will present two documents regarding development agreements, Gould said. One will feature an analysis of the existing agreements, and whether they are being enforced. Another will be a “white paper” detailing how City staff plans to enforce development agreements and conditional use permits, as well as how it will deal with code enforcement in general.

“We will set forth what it is we will do as staff and what you can expect,” Gould said. “And the Council can tell us whether it’s too hot, too cold or about right. What I want from the Council is to give us policy direction.” Gould encouraged the Neighborhood Council activists to attend the meeting.

The City is supposed to review development agreement compliance annually. Gould acknowledged that has not been happening, but he said the City is correcting that error.

Also at Thursday’s meeting, Gould fielded questions from those in attendance, who are among Santa Monica’s most politically active. Several people complained that their voices are not being heard by City officials when it comes to development issues. They gave their opinions on how the process can be improved, including better public notice of community meetings and a liaison position being created to represent residents on development proposals. Gould did not make any commitments, but he agreed to sit down with the community members about how to “change the process.”