Santa Monica : Hardship Clause on Fees

The City Council inserted a hardship clause to allow the reduction of the $8,000-per-room fee that will be imposed on owners who demolish their low-cost lodging in the coastal zone.

The ordinance, which takes effect in 30 days, requires the fee so the city can develop replacement lodging to offset recent losses of low-cost hotels and motels in the area. The zone is essentially between Ocean Avenue and the ocean.

Councilwoman Christine Reed, who introduced the amendment, said she was concerned that there were operators of low-cost lodging in the coastal zone who may not be able to afford the $8,000 fee to go out of business.

City Atty. Robert M. Myers, however, recommended against the hardship provision because “there will be sufficient financial incentive to take the council to court and grill the council on its decision as to whether you should have granted a hardship.”