Item 2: PH on Bush Measure 37 Claim for Compensation (M37 06-1)

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With the results of the appraisal, the claimant alleges that the estimated “Potential Measure 37 Claim” on the property is $111,000, quoted as follows: 1) Estimated Value of Subject Property under the hypothetical condition and extraordinary assumption that it is zoned with no special overlay restrictions allowing or up to seven residential units effective May 11, 2006 …………………………………………………………………… $446,000. 2) Estimated Value of Subject Property as currently zoned (S R2) effective May 11, 2006…………………………………………………………… $335,000. Potential Measure 37 Claim:……………………………… $111,000. E. Exemptions. Finally, a Measure 37 claim would not be valid to the extent that one or more of the regulations fell within one of the five exemptions under the Measure. Regulations adopted for the purposes of protecting the public health and safety or were adopted to prevent nuisances, or comply with federal law, then the regulations are exempt under Measure 37, even if they otherwise constitute “land use regulations” that “restrict the use’ and “reduce the fair market value” of the property. This claim is not subject to any of the five exemptions. IV. CONCLUSION AND RECOMMENDATION Based on the analysis above, the City Manager has determined that Ms. Bush’s claim is valid. In lieu of the request for compensation as described above, and based on the claimant’s subsequent proposed agreement with neighbors, the City Manager is recommending that a waiver or modification of some of the regulations be approved to allow the claimant to develop the property to an extent that would have been permitted under previous regulations and that would satisfy her intentions with the claim. (It should be noted that, since no formal development application has been filed, the City has not conducted an exhaustive evaluation of all the regulations that may apply at the time the owner applies for a building permit. The additional regulations that will apply at that time are typical of new construction and will not exclude the construction of a new dwelling unit on the property.) Although the original claim alleged that all of the Chambers Special Area Zone standards restricted development of her lot, Ms. Bush has proposed to comply with the following modified regulations, as agreed upon by the claimant, the abutting neighbors, neighbors across the street, and representatives of the Jefferson Westside Neighbors, if allowed to develop one additional dwelling: Recommended modifications to Chambers Special Area Zone Development Standards Applicable in S-C/R-2 Subarea: 4