So you’re under contract to purchase a property with a tentative map and other entitlements issued by the City of San Diego in the mid-2000s, the life of which has been extended by state law and City ordinances enacted during the Great Recession. A structure on the property is more than 45 years old, but it was “cleared” by the City as not having historic value at the time the entitlements were issued. And you believe that your fully entitled project is not subject to any discretionary reviews by the City. You would be wrong, however, because the City interprets its regulations to require a second, independent review of the structure’s historicity prior to obtaining a so-called “ministerial” grading, construction, or demolition permit, if the entitlements are more than five years old. If on City staff’s “second bite at the apple” it determines that the structure may be historically significant, your “fully entitled” project could be jeopardized if not scrapped. With the upturn in the real estate market, a large number of properties with these still-valid entitlements are being dusted off and put up for sale. “Buyer beware” certainly applies here. You may wish to avoid any risk by requiring the seller to obtain the second-round historic clearance before entering into any purchase agreement. At minimum, your due diligence period should be long enough to allow for the City’s second review of historicity.
Posted on: Wed, 14 Jan 2015 19:53:28 +0000
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