Commission continues contentious Lot 37 project after tenant testimony, orders stronger relocation plan

The Planning Commission on Feb. 16 continued consideration of a complex Lot 37 project that seeks to resolve zoning and building‑code violations by restoring previously approved building configurations and removing 20 unauthorized dwelling units. The project would reduce the number of units and, according to staff, would restore the site to a code‑compliant state with 12 dwelling units and require an in‑lieu fee for inclusionary housing.

Staff gave commissioners a draft Exhibit C — a construction phasing and tenant relocation plan — because the project involves occupied units (staff reported 16 occupied households). Project sponsor counsel Ryan Patterson told the commission owners did not prepare a tenant plan despite requests and objected to some timelines in the city's draft, but said owners were open to phasing and coordination. Staff described proactive outreach, translation services, and a city‑prepared phasing plan intended to minimize displacement and require pre‑construction inspections, permit pull timelines, and phased construction windows.

More than two dozen tenants, tenant advocates and neighborhood speakers told the commission they had received little or no prior notice from the property owners, expressed fear of becoming homeless, and urged stronger protections. Representative tenant testimony included: "I feel very helpless," (SEG 2601) and appeals for immediate help, relocation assistance and for owners to be held accountable. Tenant advocates and lawyers requested that the relocation agreement specify compensation, right‑to‑return protections, temporary housing, and that enforcement be robust if owners fail to meet deadlines.

Commissioners expressed deep concern about tenant welfare and enforcement: they asked for concrete timelines, mechanisms to compel the owner to act, and coordination with the Rent Board and City Attorney. DBI and the City Attorney described available enforcement tools (noting limitations) including notices of violation, penalties that accrue under planning code enforcement, and the potential for litigation for unfair business practices if the owner fails to comply. Staff said they would use notices of violation and penalties as enforcement levers and could refer matters to the City Attorney.

Commissioner Diamond moved, and the commission unanimously approved, a continuance to March 16, 2023 (7–0) to allow staff, the owners, tenant counsel, Rent Board and City Attorney to craft a more robust, date‑certain Exhibit C, and to return with clearer enforcement triggers should the owner not meet the timelines.

What commissioners asked for: a tenant‑facing, translated Exhibit C that spells out deadlines tied to permit milestones (for permit issuance and permit pull), specific relocation/compensation mechanisms for displaced households, monitoring responsibilities, enforcement triggers and commitments from the owner to meet the timeline.