HomeMy WebLinkAbout1994-06-07; City Council; 12731; ADOPTION OF ORDINANCE NO. NS-282-MOBILEHOME PARK RENT CONTROLC@f OF CARLSBAD - AGEWA BILL .. /[g
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CITY ADOPTION OF ORDINANCE NO. NS-282 - MTG. 6/7/94
DEP TITLE:
DEPT.~~ CITY MOBILEHOME PARK RENT CONTROL
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RECOMMENDED ACTION:
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Adopt Ordinance NoI NS-282, amending Title 5 of the Carlsbad Municipal Code
regulate mobilehome park space rent.
ITEM EXPLANATION
Ordinance No. NS-282 was introduced at a special City Council meeting of May 2
become effective in thirty days. The City Clerk will have the ordinance publish(
within fifteen days, if adopted.
1994. The second reading allows Council to adopt the ordinance which would thc
FISCAL IMF’ACT
See Agenda Bill No. 12,717 on file with the City Clerk.
EXHIBIT
1. Ordinance No. NS-282.
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ORDINANCE NO. NS-282
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
. CARLSBAD, CALIFORNIA, AMENDING TITLE 5 OF THE CARLSE MUNICIPAL CODEl BY ADDING CHAPTER 5.26 TO REGULZ MOBILEHOME PARK SPACE RENT.
WHEREAS, the City has received petitions and reque!
for mobilehome rent control legislation: and
WHEREAS, the City Council has held a number of spec
meetings at the City's mobilehome parks and received evide
and heard arguments both pro and con as to the wisdom
desirability of mobilehome rent control legislation: and
WHEREAS, the City Council held a special meeting
the Lanikai Lane Mobilehome Park on July 19, 1993 in order
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carefully consider the relative positions of the park owner
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QW2 iL(3 14 205s -I2 WHEREAS, the City Council held special meetings at &'8 9c12"
00s Lakeshore Gardens Mobilehome Park on August 16, 1993 in orde
$25 - __ further study the issue and receive evidence, testimony
ab <A l3 the homeowner; and
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Rancho Carlsbad Mobilehome Park on August 4, 1993 and at
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arguments: and
WHEREAS, the City Council held a special meetin{
the city Council Chambers on Friday, October 1, 1993 and h
testhny from mobilehome park tenants and Owners and o
interated parties, on the necessity and desirability
mobilehome rent control legislation; and
WHEREAS, the City Council held a regular meetin
the City Council Chambers on Tuesday, May 3, 1994 and Tues
May 17, 1994 and heard testimony from mobilehome park ten:
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and owners and other interested parties, on the necessity ar
desirability of mobilehome rent control legislation: and
WHEREAS, mobilehome ownership has historically been
economically more accessible form of home ownershi
particularly to individuals on fixed incomes, and offe
substantial benefits to the community in the form of modera
cost housing; and
WHEREAS, there is a shortage of mobilehome park spac
in the City of Carlsbad resulting in a low space vacancy ral
and
WHEREAS, it is difficult to find sites for relocat
of mobilehomes due to the shortage of spaces, restrictions
the age, size and style of mobilehomes enforced by many par
and other requirements relating to reinstallation
mobilehomes; and
WHEREAS, the cost for moving a mobilehome
substantial, with a significant risk of damage; and
WHEREAS, these market conditions have contributed
or threaten to contribute to, escalating rental rates ; and
WHEREAS, a market of mobilehome park tenants has
created producing an inequitable imbalance in the bargai
position of the park owner and the tenants; and
WHEREAS, mobilehome park tenants have plact
,substantial investment in their mobilehomes and appurtenal
and
WHEREAS, above-market space rents and the threz
escalating rents diminishes the value of the ten
investments in their mobilehomes; and
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1 WHEREAS, state law permits mobilehome park owners
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require tenants to improve their homes and such improvemer
accrue to the benefit of the park owner by increasing the marl
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value of the park itself: and
WHEREAS, the City Council wishes to remedy tl
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fair and equitable to both tenants and owners: and 9
can be charged by mobilehome park owners .in a manner which 8
mobilehome parks by regulating the amount of space rent wh 7
inequitable situation and protect the rights of tenants
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WHEREAS, the City Council finds that the adoptior
this ordinance would not have a significant, substantial
adverse effect on the environment: and
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WHEREAS, after reviewing and considering the evide
and testimony presented, the City Council finds and declz
that it is necessary, and in the public interest, to pro1
mobilehome owners from unreasonable space rent increases anc
assessments, and at the same time, to permit mobilehome !
owners to obtain a fair and reasonable return.
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NOW, THEREFORE, the City Council of the City
Carlsbad, California, does ordain as follows:
21 /I SECTION 1: That Title 5 of the Carlsbad Munic
22 /I Code is hereby amended to add Chapter 5 26 to read as foll
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Section 5.26.010
Section 5.26.020
Section 5.26.030 Section 5.26.040 Section 5.26.050 Section 5.26-060
Section 5.26.070 Section 5.26.080 Section 5.26.090
"CBAPTER 5.2 6
Title
Purpose and intent Definitions
Petition for exclusion Registration Base rent Annual adjustments to base rent Appeal of base rent
Applicability
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Section Section Section
Section
Section
Section
Section
Section
5*26*100
5.26.110
5.26.120
5.26.130
5.26.140
5.26.150
5.26.160
5.26.170
Allowable pass-throughs
Duty to maintain
Capital expenditures Sale or transfer of mobilehomes
Notification to prospective homeowner Base rent upon expiration of exempt lease under Civil Code section 798.1'
Administrative guidelines.
Retaliation
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7 .Rent Control Ordinance. **
5.26.010 Title. This chapter shall be known as the @IMobilehome Pi
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5.26.020 Pumose and Intent. The purpose and intent of this chapter is to prot the rights of homeowner in mobilehome parks by regulating amount of rent which can be charged by mobilehome park owners a manner which is fair and equitable to both homeowner owners.
5.26.030 Definitions. The following definitions apply for purposes of t chapter:
Consumer Price Index (All Items - Urban Consumers, 1984 = 10
(b) t*Mobilehometl - a mobilehome is a structure defined in Cal.ifornia Civil Code section 798.3.
(c) ttMobilehome park" or ttpark8t - an area of 1 where two or more mobilehome sites are rented, or held out rent, to accommodate mobilehomes used for human habitation. (d) '@Mobilehome park spacet@ or ttspacetl - a 8
within a mobilehome park which can accommodate the locati maintenance and human habitation of a mobilehome.
owner of a mobilehome park or an agent or representat
authorized to act on behalf of the owner in connection o matters relating to tenancy.of a mobilehome park space. ( f) "New construction" - any newly constructed spz
initially held out for rent after January 1, 1990. (9) "Space Rent" - total consideration authorize(
this chapter to be received by a park owner for occupancy (
(a) Vonsumer Price Index" - the San Diego Cou
(e) "Mobilehome park owner*@ or "park ownert1 -
space and services and amenities of' a park. (h) llHomeownerll - is a person who has a tenancy mobilehome park under a rental agreement as those terms defined in Civil Code sections 798.8 and 798.12.
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5.26.040 Amlicabilitv. The provisions of this chapter shall apply to mobilehome parks within the City of Carlsbad and to mobilehome park space within such parks except as provide(
this chapter, except new' construction and spaces expre exempted from this chapter by Civil Code section 798 17,
other express provisions of state or federal law. Sp
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exempted by Civil Code section 798.17 shall automatically beco
termination of the written lease agreement.
5.26.050 Petition for Exclusion.
(a) A mobilehome park may be excluded from t provisions of this chapter if a Petition for Exclusion is fil with the city clerk within 60 days after the effective date this ordinance.
signatures of a majority of the homeowners in the park, wj each space entitled to one signature counting toward t majority. Spaces exempted under Civil Code section 798.17 shz
be counted for purposes of. determining a majority, 2
homeowners residing in those spaces shall be entitled to s:
the petition, notwithstanding the exemption from the oti
requirements of this chapter stated in section 5.26.040. :
petition shall also contain statements for exclusion from 1
provisions of this chapter, such as a written agreement betwc
the homeowners and the park owner which satisfies the purpc and intent of this chapter. (c) The clerk shall. verify the signatures and . mobilehome park will be excluded from the provisions of t: chapter, with the exception of the initial registrat requirements contained in sections 5.26.060(a) and (b). (d) If there are changed circumstances after a p has been included or excluded the homeowners may petition exclusion or inclusion between January 1 and March 1 of e year provided a petition meeting the requirements of subdivis (b) is filed with the city clerk, and provided further that petition shall contain statements for exclusion or inclus within the provisions of this chapter. The City Council approve, deny or condition the petition so that inclusion of park is consistent with the purpose and intent of this chaptE
subject to all provisions of the chapter upon expiration
(b) The Petition for Exclusion shall conta
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5.26.060 Reuistratioq. (a) Initial Registration. Within 60 days after effective date of this chapter, all mobilehome.park Owners St reqister the park in the manner required by this section- - (b)- Registration shall include: 1) the name, . business address and telepk
number of the mobilehome park owner and the address to whic official notices shall be sent if different from the busir addresrf 2) the name, business address and telepi
number of all other persons or legal entities possessing ownership interest in the park and the nature of such intere 3) the total number of spaces in the park and
number of such spaces which are occupied; 4) a list of the rent charged for each spl
including spaces which are exempt pursuant to section 8.25.0 5) a list .of all other charges, wit1
description of the amount and purpose of each charge, inclu expiration dates if applicable; and
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6) any other information deemed necessary by c Council resolution for the implementation and enforcement this chapter.
7) a list of all services and amenities provi to park homeowners.
(C) Annual Registration. Each mobilehome park ow shall update the registration information by April 1 of e year *
(d) Registration Fee. The mobilehome park ow shall pay a registration fee to fully cover the administrat
costs for the implementation and enforcement of this chapt The registration fee shall be established by resolution
paid by the end of each month thereafter. Registration fees paid by the 10th day of the month following their due date SI- be delinquent and subject to penalties and 'interest accordin! Chapter 3.12 of this code. (e) Pass-through of Registration Fees. Registra' fees shall be equally paid by the park owner and homeowners
the park owner shall be entitled to pass-through the amount
be paid by the homeowners on a monthly basis, but exclul interest and penalties.
adjusted annually on July 1 of every year. The fee shall
5.26.070 Base Rent, (a) The base rent for each mobilehome park s subject to this chapter shall be established by resolutio the City Council. The City Council shall make the detennina after a review of a fair market rent study applicable to space, and any other relevant information. The base rent s
represent the fair market value of the right to occupy the s
and use the amenities and services of the park., There shal a rebuttable presumption that the base rent established by City Council is the fair market rental value of the sp There shall also be a rebuttable presumption that the base represents a fair and reasonable return to the park owner. (b) The mobilehome park owner shall not deman accept space rent for a mobilehome park space in excess of base rent.
5.26.080 Annual Adiustments to Base Rent- (a) The base rent shall be adjusted annually 1
percent of the yearly increase in the Consumer Price I1 (1984 - loo), except that the .annual increase shall be a mil
of zere (0) percent and a maximum of eight (8) percent. Such increase shall be effective only if no
the following events have occurred: (1) the mobilehome park owner is in violati any provision of this chapter, including but not limitec
payment of fees:
(2) conditions exist within the mobilehome
which violate provisions of local, state or federal law re1
to the health, safety and welfare of the residents, for the enf,orcing agency has, issued a notice of correctic
similar notice, and such violation has not been corrected.
violations must be of a substantial nature, affecting th
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and enjoyment of the space tenancy, as determined by t
building official.
July 1 of each year.
adjusted base rent represents a fair and reasonable return
(b) The date of the annual adjustment shall be
(c) There shall be a rebuttable presumption that t
the park owner.
5.26.090 APDeal of sDace rent. (a) Upon the payment of the appropriate applicati fees and deposits, and within 60'days after notice of an annc adjustment to base rent, a mobilehome park owner may appeal t space rent established by this chapter if the park owr contends that the space rent does not represent a fair 2 reasonable return. (b) The appeal shall be heard by a hearing offic appointed by the City Manager. The filing fees and COI associated with filing an appeal shall be initially borne by t party requesting the appeal. The costs shall ultimately awarded to the prevailing party and paid through adjustme] through an increase or decrease in the space rent appropriate. Filing fees and costs may be awarded, apportio~ or denied in the discretion of the hearing officer. (c) The appeal shall be heard within forty-five (1
Manager by a park owner and served on the homeowners of et
affected space. A proof of service shall be included with * application. The hearing officer shall select a hearing d4 and notice the parties in writing at least fifteen (15) d( prior to the hearing.
homeowners, or on the hearing officer ' s own motion, the hear officer may issue subpenas in accordance with the provisions Code of Civil Procedure section 1985 & seq. Service of proc shall be subject to the provisions of Title 3, Part 4, Chap
2 of the Code of Civil Procedure and such process shall ext to all parts of the. state. All witnesses appearing pursuant subpena, other than a park owner or homeowner, shall be p fees and mileage as prescribed by law for witnesses in ci actions in superior court. The fees and mileage shall be p by the party who made the request for the subpena. (e) The hearing officer shall receive relev
heard. The hearing officer shall determine whether the SF rent represents a fair and reasonable return to the park OW The City Council shall adopt a resolution containing procedl for the hearing and guidelines for the decision made. by hearing officer. The resolution shall Contain a noneXCluI list of factors to be used in making the determination.
procedures and guidelines shall comply with state and fed(
constitutional requirements regarding the property rights of park owner. The decision of the hearing officer shall bc
writing and contain references to the guidelines adopted by
City Council. The hearing officer shall keep a Complete rec
days after a complete application is accepted by the' C,
(d) At the request of the park owner or
evidence and allow the parties a reasonable oppofiunity to
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of the proceedings and submit it to a reviewing court or .
(f) The decision of the hearing officer will be f i notwithstanding the provisions of section 1.20.600 of this co,
(9) Homeowners may use the procedure in this sect to petition for a decrease in space rent if the park ow
reduces or eliminates services or amenities without adjust the space rent accordingly. An application must be submit which contains the signatures of a majority of the homeowners the spaces subject to the space rent, with each space entit
to one signature counting toward the majority. The applicat
must also include a proof of service on the park owner c written claim signed by at least one homeowner specific; describing the allegations against the park owner and the re1
requested. The proof of service must show at least 30 c notice prior to the application submittal.
(h) If an appeal is granted, the space rent determined by the hearing officer will be effective 90 ( after homeowners are notified by the park owner of the increi
following the decision.
city, if requested, along with copies of all exhibits,
Decreases will be effective on the first day of the mc
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5.26.100 Allowable Dass-throuahs
A mobilehome park owner may, in addition to the 1 rent, separately charge a homeowner for any fees allowed tc passed through by applicable provisions of the Califo: Mobilehome Residency Law contained in Division .2, Part Chapter 2.5 of the Civil Code (Civ.Code Q 798 et seq.) successor statutes. These charges shall not be considere part of the space rent. No other separate charges shal allowed.
5.26.110 Dutv to maintain The mobilehome park owner has a duty to keep maintain the physical improvements in the common facilitie the mobilehome park in good working order and condition ar maintain or exceed the existing level of park amenities
services. A homeowner may bring a cause of action agaill park owner pursuant to Civil Code section 798.84 provided homeowner first at least 30 days prior written notice of
intention to commence court action. The notice shall k
writinq, signed by the homeowner or homeowners making
allegations and shall notify the park owner of the basis 0:
claim, the specific allegations, and the remedies request4
5.26.120 CaDital emenditures
Capital expenditures may be made by agreement be the park owner and a majority of homeowners and agreed- amounts added to space rent. Capital improvements may a1 made by the park owner and the appropriate capital exp
considered for an increase in space rent as permitted b
procedures set forth in this chapter.
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5.26.130 Sale or transfer of mobilehomes
(a) All of the provisions of this chapter sha continue in full force and effect upon sale 01: transfer of
mobilehome (b) A mobilehome park owner shall not require
coerce purchasers or prospective purchasers of mobilehomes sign a lease which exempts them from this chapter under Ciu Code section 798.17.
5.26.140 Notification to homeowners and prosDectj
The mobilehome park owner shall provide all homeownc
and prospective homeowners with a copy of the Mobilehome P; Rent Control Ordinance together with a schedule showing I applicable space rent under this chapter prior to the.time agreement to, pay space rent to the park owner is executc Proof of notification shall be maintained at the park i subject to inspection by the City.
homeowners
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5.26.150 Base rent won emiration - of exemPt lel under Civil Code section 798.17 When a lease which is exempt under Civil Code sect
798.17 expires this chapter shall automatically apply to s' space and the space rent for purposes of this chapter shall
include any pass-throughs prohibited by this chapter.
5.26.160 Retaliation It shall be unlawful for any person to retali
against a homeowner for exercising any rights provided by t chapter, or registering a complaint relating to enforcement
its provisions.
5.26.170 Administrative uuidelines. The City Manager is authori-zed to adopt s
administrative guidelines as are necessary to fully implen the purposes and intent of this chapter."
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SECTION 2: If this ordinance is declared invalic
unenforceable for any reason, then Ordinance No. NS-263 SI
become enforceable and in full force and effect in place of 1
ordime. Until that time, Ordinance No. NS-263 shall no1
23 11 effective for any other purpose.
24, SECTION j: If any section, subsection, sente.
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clause, phrase, part or portion of this ordinance is for
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competent jurisdiction, such decision shall not affect 27
reason held to be invalid or unCOnStitUtiona1 by any tour
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validity of the remaining portions of this ordinance. The Ci
Council declares that it would have adopted this ordinance 2
each section, subsection, .sentence, clause, phrase, part
portion thereof, irrespective af the fact that any one or mc
sections, subsections, sentences, clauses, phrases, parts,
portions be declared invalid or unconstitutional.
EFFECTIVE DATE: This ordinance shall be effect
thirty days after its adoption, and the City Clerk shall cert
the adoption of this ordinance and cause it to be published
least once in a newspaper of general circulation in the City
Carlsbad within fifteen days after its adoption.
INTRODUCED AND FIRST READ at a regular meeting of
Carlsbad City Council on the 23rd day of MAY I 19
and thereafter
PASSED AND ADOPTED at a regular meeting of the C
Council of the City of Carlsbad on the 7th day of JUNE
1994, by the following vote, to wit:
AYES: Council Members Lewis, Stanton, Kulchin, Nygaard
NOES: Council Member Finnila
ABSENT : None AnA.R. D AS TO FORM AND LEGALITY
e IL
RONALD R. BALL, City Attorney ////ps c* &-9w /9- ,.‘ ” / ,/fld$qt;/$&w
3 /A. &MI& Mayor I kZD1 26 I( ATTEST: .
27
28 ALETHA L. RA~JTE
mobilpklordntjhhw. 5/lW 10
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I 7- e @& '0.c 4/7/9f
c 7 7 ANDERSEN, KELEHER 1. SPATA TU%
ATTORNEYS AT LAW 0.4 w
JAMES F. KELEHER
G. STEVEN ANDERSEN 1334 PARK VIEW AVENUE, SUITE 100
MICHAEL CHRISTOPHER SPATA MANHATTAN BEACH. CALIFORNIA 90266 (3101 54
TELEP
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(310) 54
FACS
June 7, 1994
Via Facsimile and Hand Delivery
Mayor Bud Lewis and City Council Members Att: Althea Rautendrautz,
City Clerk
City of Carlsbad
1200 Carlsbad Village Drive
Carlsbad, CA 92009
Re: Objections to Proposed Negative Declaration, Mobilehome Pa Rent Control Ordinance and Resolution Settins Base Rents
Dear Mayor Lewis and City Council Members:
This is to oppose and object to the final reading and adopti by the City Council of Ordinance No. NS-282, amending Title 5 the Carlsbad Municipal Code to regulate mobilehome park space re
based upon all objections submitted by the owners and operators
Rancho Carlsbad Mobilehome Park and Lanikai Lane Mobilehome Pa
("subject mobilehome parks") during the period, as described
ordinances involving mobilehome park rent control.
said ordinance, when the City considered the interim and permane
Furthermore, this is to oppose and object to the final readi and adoption of Ordinance No. NS-282 on the ground that sa ordinance is preempted by state law (e.g., Civil Code secti
798.17) because the ordinance does not permit the last rental ra
charged for the space under the previous rental agreement th expired and was not extended, and for which no new rental agreeme in excess of 12 months' duration was entered into.
Additionally, this is to oppose and object to the fin
reading and adoption of Ordinance No. NS-282 on the ground that t
KMA study approved by and relied upon by the City Council as basis to adopt this ordinance was fatally flawed on the followi grounds :
(1) Utilization of rent controlled mobilehome parks was improper basis on which to determine the fair market re for the subject mobilehome parks because the re
controlled parks are not permitted to charge fair mark
rents ;
b .' '. . .- e 0 e
c
c
Mayor Bud Lewis and City Council Members Att: Althea Rautendrautz, City Clerk
City of Carlsbad
June 7, 1994
Page 2
(2) There was no support for the conclusion that the sale
prices at the subject mobilehome parks were depressed b
high rents:
(3) The mobilehome parks considered were not Sufficient1 comparable because of the exceptional location an amenities relating to these parks. The KMA study shoul have considered these factors (and others) to a greate degree.
Based upon these grounds, the KMA study is arbitrary, capriciou and unreasonable, thereby making the proposed ordinance equal1
arbitrary, capricious and unreasonable. Furthermore, utilizingth
data, assumptions, findings and conclusions of the KMA stud
for the subject mobilehome parks, and the KMA study does no
support the substantial advancement of any purportedly legitimat
goals of the subject ordinance.
results in the deprivation of a fair rate of return on investmen
Reiterating, it is requested that the City Council refrai
from the final reading and adoption of Ordinance No. NS-282 base
upon the legal and factual objections made on behalf of Rancl:
Carlsbad Mobilehome Park and Lanikai Lane Mobilehome Park raise
during the period outlined in said ordinance.
Very truly yours,
ANDERSEN, KELEHER & SPATA
v@?b.%!s Qiz.ljt?yXp
Michael Christopher Spata i
MCS : klm
cc: Mr. David F. Dawes Dawes Marital Trust
South Shores Development Corporation
0 0
. Lakeshore Gardens 7201 Avenida Encinas
Carlsbad, CA 92009-4648
(619) 438-4069
FAX (619) 438-3401
Carlsbad City Council
Subject: Rent Control
In the interests of the owner of Lakeshore Gardens MH Park, I make the follow
requests:
1. I request that the enactment of the Rent Control Ordinance, Chapter 5.26, be defer
to allow time to alleviate the inequities, to the owner of Lakeshore Gardens, that 1
ordinance will create, due to the effects of the California Civil Code on this ordinanct:
it affects Lakeshore Gardens MH Park. The City's Staff only discovered these troubl
features of the California Civil Code a few days before the meeting of the Council on 1L
23, and the City made no effort to mitigate any of the inequities generated by
interaction of the Civil Code with the ordinance that is being established.
2. I also request that the Keyser Marston Associates Fair Market Rent Evaluation Stu
which established fair market "base rent" levels at Lanakai Lanes MH Park and Ran1
Carlsbad MH Park, be expanded at the City's expense, establishing Fair Market B
Rents for Lakeshore Gardens. We have 33 homes in Lakeshore Gardens which are
exempt from Rent Control because they are not covered by a multi-year lease, and we nc
to est.ablish fair market ''base rent" levels for those residents, since they will
automatically included under the coverage of the ordinance.
I request that this letter be made a part of the written record of this Council Meeting
Respectfully submitted, /&@ff?h
Bill McLean
Manager
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