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CI\..t OF SAN BERNARDC.tO - REQUUT FOR COUNCIL Ae>-AON
From: RALPH H. PRINCE
Su~ect: COVENANT RUNNING WITH THE LAND
FROM JAMES E. MASSEY AND CAROL A.
MASSEY
Dept: Ci ty Attorney
D~~ April 26, 1985
Synopsis of Previous Council action:
None.
Recommen<:led motion:
Adopt resolution.
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Signatu re
Contact person:
JOHN F WILSON
Phone:
5162
Supporting data attached:
StAff Rpport
Ward:
1
FUNDING REQUIREMENTS:
Amount:
n/~
Source: n.' a
Finance: n.' a
Council Notes:
75-0262
Agenda Item No, ....<!t:. #
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cf.ri OF SAN BERNAR~O - REQU~T FOR COUNCIL Ac--.10N
STAFF REPORT
On or about January 28, 1985, Mr. Ed Gundy of the Planning
Department identified a violation of San Bernardino Municipal
Code Section 19.12.020 occurring at 872 N. Arrowhead Avenue. On
or about the same date, Mr. William Murray of the Building and
Safety Department issued a notice of correction to the Massey
Insurance Company which occupies Suite 302 at that location.
Immediately after issuing the notice, Mr. William Murray was
contacted by a representative of the Massey Insurance Company who
informed him that this matter had previously been addressed by
the Planning Department and the City Attorney's Office. The case
file on the matter was pulled by the Planning Department and sent
to our office. Contained in the file was a letter from Massey
Insurance Services dated October 15, 1982, addressed to Frank
Schum a of the Planning Department with copies to the City
Attorney's Office and Mr. Ed Collins, formerly of the Planning
Department. A copy of the letter is attached.
In the letter, Mr. Massey outlines the series of events which led
to his establishing an insurance agency at this residential
location. In essence, he was misinformed regarding the zoning by
a representative of the Planning Department. He relied on this
misinformation when establishing the business.
In reviewing the matter, it was not felt that the violation was
of such a magnitude as to require Mr. Massey to undertake the
expense of moving his agency. It appears that there was good
faith reliance through prior dealings with the City. Although a
municipality is generally not bound by the mistakes of its
employees, equitable estoppel under some circumstances may be
invoked against a governmental agency. Shoban v. Board of
Trustees (1969) 276 Ca1.App.2d 534, 81 Ca1.Rptr. 112.
It was therefore determined that the best interests of all
parties would be served by entering into an agreement with Mr.
Massey to the effect that he will not in the future transfer the
property as a commercial use. That agreement was placed in the
form of a covenant to run with the land preventing Mr. Massey
from conveying this property as a commercial use. Mr. Massey and
Carol Massey have executed the agreement. It is this covenant
which is presented for acceptance by the Council.
75-0264
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MASSEY'
INSURANCE SERVICES
.
N.6i. OJ/;u:
812 N. AllROWJlUD. SUITE )02
SilN BERNARDINO. CAUfORNIA 92401
(714' 81:>4-478' Of R~JU,.JJ 1II.w 824-3670
lH_,b Ol/i,.:
2)037 AU.HANVJW BLVD.
SUNNYM,.:tfD, C/lUfOll.N11I !}:!J8lJ
O/lj,.: (7J4J 6,6-j688 R.,: 6,6.7ti!J]
October 15, 1982
Mr. Frank Schuma
Planning Director
Room 331 E. City Hall
300 North "D" St.
San Bernardino, CA
Dear Mr. Schuma:
We appreciate the fact that you are actively
City Attorney's Office to try to resolve our
here at 872 North Arrowhead, San Bernardino.
working with the
zoning problem
Just to review and state in writing how this situation came into
being, we desire to set forth the following statement.
We looked at this property initially on April 5th of 1982. We
went directly from the property immediately to the Planning Dept.
We talked with Mr. Ed L. Collins, a planning t~chnician. We told
Mr. Collins that we were planning on purchasing the subject prop-
erty and moving our insurance office from Redlands into one of
the front units.
We inquired about the zoning, he looked on the maps and showed
us that the property was zoned R-3. We then inquired as to whether
we could 9pen our insurance office in the building. His reply was
that we could. To make sure, I asked him to look up the ordinance.
After looking up the ordinance, Mr. Collins assured us that we
could operate an insurance office in an R-3 or R-l Zone. Upon
inquiry Mr. Collins stated that we did not need a business license
in order to operate an~insurance agency in San Bernardino City
or County.
I then asked if we could hav.e a sign on the building and what would
the size requirements be etc. He looked up the code on signs and
told us that we could have a sign not more than twelve square feet,
and that it must not extend from the building more than one foot,
and that it could not be lighted. When we put up the sign, we
conformed to these specifications.
I then asked Mr. Collins if there would be any other requiremEnts.
He assured us that there would be no other ordinance with which we
were to comply. We explained that we were depending on his informatiuJ:
..... ""'" . ...... IWU..... II'J'Q'D'-l nnlNt": TPl.l A PRllWD. IF YOU DON'T UKE WllAT lP'E'Rl:! DOING. TELL USJ"
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Mr. Frank SChUllIil
Planning Director
October 15, 1982
Page 2
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and would be committing ourselves to purchase the property. We
also stated that we would be spending a great deal of time and
money to affect the move of our agency. Mr. Collins assured us
again that there was no problem with our plans. We thanked him
for the information and left.
While we realize that misinformation was not given to us deliber-
ately. it was found later that we were incorrectly informed. How.
ever, based on Mr. Collins information and relying on the accuracy
of his statements, we entered into escrow to purchase the property.
Mr. Kirk evicted the tenants in Suite 302. We remodeled that unit
and moved our insurance office in on June 14, 1982: We spent a
great deal of time and money to remodel. We also spent a great
deal of money to have new stationery printed and send out announce-
ments of our move to our more than 600 customers. We also were
required to pay our previous landlord one months rent of $698.00
to break our lease.
We ordered a sign from Ray Heemstra Signs in Redlands. We asked
him to be sure to get a permit to make absolutely certain that
we were in compliance with the sign ordinance. Mr. Heemstra ignored
my request and made and installed the sign. When I discovered
that he had not gotten a permit, I insisted that he take out a
permit. When he applied for the permit it was denied. He did how-
ever, construct the sign in accordance with the specifications
that I had gotten from Mr. Collins.
On September 10, 1982 we received a letter from Margo M. Ihlliams
of the planning department. She informed us that we were in vio-
lation of section 19.12.020 of the San Bernardino Municipal COd8.
In addition, we were in violation of the sign ordinance 19.60 0-
the San Bernardino Municipal Code.
We immediately went to ~he Planning Dept. and talked to Mr. Collins.
Again he looked up the code. We had a brief discussion with Mr.
Collins and then we both went in and talked to you about the sit-
uation.
We want to assure you again that we had every intention to comply
with the Code in every respect. That is the very reason we came to
the Planning Dept. even before we entered into escrow to purchase
the property. We felt that we had put ourselves into contact with
the proper authority. We had no other source of information.
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Mr. Frank Schuma
Planning Director
October 15, 1982
Page 3
We are now in an unfortunate situation. We respectfully request
that you please give us every consideration in resolving the pro-
blem, We will gladly work with your office in any way possible to
be in compliance. We have had no contplaints from anyone other
than the Planning Dept. regarding a violation of zoning.
We hdve spent a great deal of money and lost alot of business
during the move. Our finances are stretched to the limit. We
do not have a contingency in the escrow that would premit us
to cancel. We pray every day that we won't be forced to move.
I'm sure another move would bankrupt us. We would wind up losing
our business and our property.
Please advise us of any progress you are able to make. We need
to know what is expected of us as soon as possible so that we
can take whatever action is necessary.
Respectfully,
I
Massey
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c.c. City Attorney
c.c. Ed Collins
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Massey Insurance Services
872 N. Arrowhead
San Bernardino, CA 92401
(714) 884-4785
Three page letter dated October 15,1982 from Massey Insurance
Services to: Frank Schuma, Planning Director, Room 331, E. City
Hall, 300 North "0" st., San Bernardino, CA 92418
Accepted by:;Q~,,~
Date: c/l.:z:;r; J-b1
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Copy of three page letter dated October 15, 1982 addressed to
Frank Schuman, delivered copy to Edd L. Collins, Planning
Technician, Room 301 G City Hall, 300 North "0" St., San Ber-
nardino, CA 92418.
Accepted by:
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Date: (]Jc:tf~ /~-;rPF ~
Massey Insurance Services
872 N. Arrowhead '
San Bernardino, CA 92401
884-4785
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Copy of three page letter addressed to Frank Schuma. Planning
Director, Delivered to Mr. Ralph Prince, City AttoFney. 6th Floor
300 North "0" St. San Bernardino, CA 92418. Letter dated October
1:;. 1982.
.\ccepted by:
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884-4785
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CORRECTION NOTICE
DEPARTMENT OF BUILDING AND SAFETY
CITY OF SAN BERNARDINO
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RESOLUTION NO.
2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
ACCEPTANCE OF A COVENANT RUNNING WITH THE LAND FROM JAMES E.
3 MASSEY AND CAROL A. MASSEY LIMITING THEIR RIGHT TO CONVEY THE
PROPERTY DESCRIBED IN EXHIBIT -A- OF THE COVENANT AS A NON-
4 CONFORMING USE.
5 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
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IS
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SECTION 1. The City Clerk of the City of San Bernardino is
hereby authorized and directed to accept on behalf of said City a
Covenant Running with the Land from James E. Massey and Carol A.
Massey; said Covenant prohibits the property located at 872 North
Arrowhead Avenue, in the City of San Bernardino, from being
conveyed for any purpose other than use as a multifamily
residence. A copy of the Covenant Running with the Land is
attached hereto as Exhibit -1- and incorporated herein by
reference as though fully set forth at length.
SECTION 2. The City consents to recordation thereof by its
duly authorized officer.
I HEREBY CERTIFY that the foregoing resolution was duly
adop~d by the Mayor and Common Council of the City of San
I
! Bernardino at a
,
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,
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meeting thereof, held on the
,1985, by the following vote, tol
day of
wit:
AYES,
Council Members
NAYS,
ABSENT:
CITY CLERK
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The foregoing resolution is hereby approved this
_ day
of
, 1985.
Approved as to form:
~ )~ J~~/J 0
,. ~y,q<-/~~
City torney
Mayor of the City of San Bernardino
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Recorded at the request of ,
and when recorded, return to:
Ci ty C1 erk
City of San Bernardino
300 North "0" Street
San Bernardino, CA 92418
COVENANT RUNNING WITH THE LAND
For good and valuable consideration, the receipt of which is
hereby acknow1 edged, Jwnos ,", HaE:~ey ann Carole AI M<lssey .
collectively
"Grantor", hereby grants to the City of San Bernardino, a
municipal corporation, 300 North "0" Street, San Bernardino,
California, the following covenant which shall run with and be
binding upon that certain parcel or parcels of property in the
City af San Bernardino, County of San Bernardino, State of
California, described on Exhibit A which is annexed hereto and
incorporated herein by reference.
Grantor hereby covenants with the City of San Bernardino
that neither the premises described herein, nor any portion
thereof, shall hereafter be conveyed, transferred or hypothecated
by sale, gift, grant, demise or assignment to any person or
entity for any purpose other than use as a multifamily residence,
Grantor will specifically notify any grantee or transferee that
no business office shall be permitted upon the premises after any
sale or transfer by the present owner. This covenant runs with
the land and is binding on all heirs, administrators, executors
and assigns of grantor for a period of twenty-five years from
date of its recordation. In the event of a breach of the
covenant by the grantor or any heir, executor, administrator or
assign, said person or persons shall be immediately subject to
prosecution by the City of San Bernardino for violation of its
.
EXhiBIT I
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zoning laws. and such use of the property in violation of the
provisions of this covenant shall constitute a public nuisance,
subject to abatement by the City of San Bernardino.
In witness
12th day of
.
whereof, Grantor
Barch
has executed
. 19 85
this document this
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rantor
Caro
~ARY ACKNOWl:. ,.. )))-< "
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ACCEPTANCE BY CITY
The City of San Bernardino hereby accepts the covenant
included within the attached document.
DATED:
GENERALACKNOWLEDGMENT.. . .. .,_~ ~f"" .>-;~. ,..
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r"~~L"'J,&" .'. ,...~. " } Onth's:uM.t.,__, day01 ]'.Rl""h ,
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!~ .~""""=-e'---'~-'-..--""~~.~(""'.......(""'~/....-.;......-........ the undersigned Notary Public, personally appeared
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( ~ ~,...Jti\1; MORLEY BALDWIN ~
~,\l .r~-.'~l" NuTARY PUk,lIC - Cdl. ),,;JII. \'
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,. personally known to me
It proved to me on the oasis of satis1actory evidence ,
10 be the person(s) whose name(s) a~ ,,__subscribed to the
within instrument, and acknowledged thal~. j.' executed it..
WIT N7Jsmy h. and olflc;al seal , ~' '
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Notary' 51 ure
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THE L~ND REFERRED TO IN THIS POLICY IS SITUATED IN THE COUNTY
OF SRN S~RNARDINO, STATE OF CALIFORNIA, HND IS DESCRISED ~S FOLLOWS:
THAT PORTION OF THE EAST ONE-HALF OF LOT 7, BLOCK 62, IN THE
eln' OF SAN BERNARDINO, COLINn' OF SAN BERNARDINO,. STI'lTE OF CALIFORNIA,
~S PER NAP RECORDED IN BOOK 7 OF NAPS, PAGE J, IN THE OFFICE
OF THE COUNTY I':ECOIi'DEii: OF SAID COUNT.,., DESCRIBED HS FOLLOWS:
BEGINNING tiT Ti1':; 5DUi"1EH~; I c'-,,;,;;:'; Or Le," 7, THENCE NOIi'TH J50
FEET" NO;:'[ ':';:. LESS, TO T,"'~ l;l',~~r;,:.,:~T (,.i,='"E,~ OF $':'ID LOT, THENCE
/oIEST i1LOIiG THE NC,i':TH LIaE DF SHID LOT" j5D FEET NOh'E OR LESS
TO THE I.EST LINE OF THE E,.;,ST C/i,E-,"iHLF ciF 5':'ID LOT,; THENCE SOUTH
J50 FEET, NORE OR LESS, TO THE SOLITH LII,E OF $':'ID LOL THENCE
EAST 150 FEET, NORE OR LESS, TO THE POINT OF BEGINNING,
EXCEPTING THE SOUTH 50 FEET THEREFRON OF LOT 7,
EXHIBIT A