Or Khaim Hashalom v. City of Santa Monica

INTRODUCTION

In this appeal, we are asked to determine whether real property in Santa Monica (the City) owned by plaintiff Or Khaim Hashalom (OKH) qualifies for the statutory exemption from historic preservation provided by Government Code section 37361, subdivision (c). That statute creates an exemption for noncommercial property owned by a religious organization. We hold that OKH’s property does not qualify for this exemption because it *378 has always been a commercial enterprise, both when OKH purchased it and at the time OKH sought the exemption. Accordingly, we affirm the judgment.

FACTUAL AND PROCEDURAL BACKGROUND

1. The property

Known as the Teriton Apartments (the Teriton), 1 and constructed in 1949-1950, the property consists of a 28-unit, rent-controlled garden-style apartment complex in a single two- and three-story structure, arranged in a pinwheel or serpentine plan around landscaped courtyards. The Teriton was identified and assessed numerous times in the past under the City’s survey process as part of the City’s historic resources inventory of potential historic resources. Sellers are required to disclose to potential buyers whenever property for sale…