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Minutes 1986-02-12 SP .-- - C!TY COUNC I L FEBRUARY 12, 1986 ARROYO GRANDE, CALIFORNIA 1 :00 P.M. The City Council met in a Study Session on the subject of Mobile Home Rent Stabilization with Mayor B'Ann Smith presiding. Council Members Matthew Gallagher, Dorace Johnson and D.G. Porter were present. Council Member Gene Moots was absent. Mayor Smith spoke to the public which filled the Council Chambers to capacity saying that the study session was being held to hear the opinions of mobilehome tenants and park owners. She said she had received numerous telephone calls from Sunrise Terrace mobilehome park tenants who were concerned about future rents once the park is sold. She said no Council action would be taken at this time, and that the subject would be on the next agenda. She said the Council at that time may give directions to City staff and the City Attorney. BERNARD BURKE of Sunrise Terrace gave a history of the Council's discussions of rent control. He said the Sunrise Terrace Park is being sold and the lease agreement between the owners and tenants is expiring in 1987. He explained the details of the lease now held by the tenants and Sunrise Terrace park, and asked that parts of it be included in any rent stabilization ordinance passed by the City. Council Member Gene Moots arrived at the meeting at 1:07 P.M. ALBERT ST.PETER of 350 Sunrise Drive said all of the parks are full, and there is a demand for more spaces. He said he hoped a rent stabilization ordinance would tie rentals and land values to a common base. RALPH FLACK of Sunrise Terrace said that he feared that the new owners of the park may be paying $8 million for the park and, according to his figures, would probably have to raise rents to make a profit. MAURY LEVIN of Hacienda Del Pismo Mobile Estates said he preferred to call park tenants "home-owners" and their investments should be equal to the park owners. He said Pismo Beach has a rent stabilization ordinance, and he hoped that Arroyo Grande would use it as a model. RICHARD HART of Hacienda Del Pismo said that when there is rent stabilization the people in the park are secure. On motion of Council Member Gallagher, seconded by Council Member Johnson, and unanimously carried to accept into the record letters on the subject of rent stabilization from Inez Pegram, Vivian Guenzel, Mr. V. L. Nagel, Evelyn Frailing and Larry Clifton. CHUCK HUGHES of the Western Mobile Home Association of Sacramento, who is a consultant to park owners in the Coastal Counties, said leases are far more desireable than rent control. He said the cities with rent control end up literally running the mobile home parks, dealing with the small details. CRAIG AMSPOKER of Los Osos referred to an initiative on rent stabilization ( passed by 60 per cent in the county. He said most leases were pathetic. He said his park lease was a good one, but it would never have come about if the initiative hadn't been started. MELVIN JOHNSON of Vagabond Mobile Home Park, spoke against "blanket" rent control and said the price changes that have taken place are not the invention of the park owners. EUGENE FREER of Sunrise Terrace said mobile home owners in parks are captives, and have nowhere to go because the cost of moving a mobile home is too high. DON DURANT of Rancho Del Arroyo Mobile Home Park referred to Murphy's Law which says, "If it ain't broke, don't fix it." He said there is no need for rent control, the rent range here is reasonable, that the Sunrise Terrace lease does not expire for 12 months, and the cost of rent control to the City would be too high. -----~_.- CITY COUNCIL FEBRUARY 12, 1986 ARROYO GRANDE, CALIFORNIA PAGE TWO MRS. ROBERTA FOWLER of 810 Forest Drive, owner of Fowler's Mobile Estates, suggested that the City encourage more mobilehome parks, and that competition will control rents. JOHN CUMMINGS of Newport Beach, who identified himself as one of the buyers of Sunrise Terrace, said he would be offering new long-term leases without exception. He said he was absolutely interested in long-term leases of 5 to 10 years. FRANCIS PACKARD of DunaVista Mobile Home Park said that mobilehome park ownership is reputed to be the most profitable in the United States. He listed the rent increases at various par~ since 1978. JIM BUTTERY of San Luis Obispo, attorney for the park owners, said talk of rent control has kept rents low and has made "believers" of the park owners. He said freely negotiated leases are preferrable to rent control. He said the Council should defer action on rent control to a later date so that the tenants and owners can have time to negotiate long-term leases. CHARLENE HOFFMAN of Rancho Del Arroyo Park gave examples of park owners "gouging" tenants, and said coaches have decreased in price, not increased. MELVIN FOWLER of 810 Forest Drive said that once the City passed rent control, no leases will be signed. Mayor Smith thanked those who attended and spoke at the meeting, and adjourned the session at 3:05 P.M. MAYOR ATTEST: