City of Santa Monica v. Sung CA2/4

BACKGROUND

A. The Development Agreement and Its Approval Harris Toibb owned two rent-controlled apartment buildings in the City. Consistent with development agreement laws (Gov. Code, § 65864 et seq., as enacted by Stats. 1979,

Subsequent unspecified references to statutes are to the Government Code.

2 ch. 934, § 1), in February 1982 Toibb and the City executed a Housing Incentive and Development Agreement (Development Agreement) governing the development of his properties. The agreement referred to Toibb’s properties as the 4th and 6th Street Properties. (See Dev. Agreement Recitals, §§ A–B; Dev. Agreement, §§ 1, 5.)2 The 4th Street Property development, completed in 1993, became the Dorchester condominium building. Among various terms and conditions, the Development Agreement authorized the demolition of existing structures on the 4th Street Property and construction of a “new four-story, 42-unit condominium building, of which fifteen (15) [first-floor units] will be apartment units having rents set to be affordable to low- and moderate-income households.” (Dev. Agreement Recitals, § D; Dev. Agreement, §§ 2(D)(4)(a)–(f).) Eight units (two two-bedroom units and six…