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HomeMy WebLinkAbout13. Discussion & Direction Re Urgency Ord-Establishing Temp Moratorium on Evictions of Commercial Tenants Impacted by COVID-19)l�l r�HEMMELMEDIM ., r • r ., r 101MAHOM100 2) Provide the City Attorney with direction. OR 3) Take no action. DISCUSSION At a special meeting on April 2, 2020, the City Council adopted Urgency Ordinance No. 20- 1439, which established a temporary moratorium on evictions of commercial tenants and 3-month repayment period (following the City •,terminationof the Local Emergency) for commercial tenants affected by the COVI D-1 9 pandemic to repay rents in arrears. Ordinance No. 20-1439 exr)ires on Mav 311,2020, unless extended bv Council actiol May • 2020 Page 2 establishing a repayment schedule for commercial tenants to repay rents in arrears as follows: During the period March 18, 2020 and June 15, 2020: six (6) months from the date the Local Emergency is terminated to repay rents in arrears; or During the period June 16, 2020 and July 16, 2020: nine (9) months from the •_ the Local Emergency is terminated to repay rents in arrears; or • On July 17, 2020 or any time thereafter: twelve (12) months from the date the Local Emergency is terminated to repay rents in arrears. Since the Urgency Ordinance expires on May 31, 2020, it is requested that, at minimum, the Council extend the current Urgency Ordinance and provide the City Attorney with further direction, if any. FISCAL IMPACT There is no fiscal impact. ATTACHMENT Attachment A: Ordinance NO11, THEREFORE, THE CITT COUNCIL OF THE CITT OF DO101 AV, D A Il • ;' A. The recitals set forth in Urgency Ordinance No. 20-1439 are still applicable and incorporated herein by this reference. B. On May 13, 2020, Los Angeles County Department of Public Health announced that its "Safer at Home" order will continue beyond May 15, 2020 with no end date while only certain businesses and recreational areas may reopen subject to social distancing protocols. Many businesses in the City of Downey have and will continue to experience the economic impact of the COVID-19 pandemic such as the furloughs or lay-off of employees, the reduction of business income and the inability to pay their commercial rents. C. The extension of the temporary moratorium on evictions of commercial tenants who are unable to pay rent due to the COVID-19 pandemic will help businesses remain stable, reduce the economic impacts of the closure orders, and provide commercial tenants with additional time to repay rents in arrears. D. In accordance with California Government Code Section 8634 and Downey City Charter Sections 511 and 514 and based on the findings set forth herein and the recitals set forth in Urgency Ordinance No. 20-1439, the City Council finds that this Urgency Ordinance is necessary to immediately preserve and protect the public peace, health, safety and welfare and is enacted pursuant to the City's police powers afforded by the California State Constitution and State law. SECTION 2. Section 5 of Urgency Ordinance No. 20-1439 is amended to read as follows: "The temporary moratorium created by this Urgency Ordinance shall be in effect until 12 midnight June 9, 2020 and thereafter terminate without further action of the City Council." The City Council finds and declares that the extension of Urgency Ordinance No. 20-1439 is necessary for the immediate preservation and protection of the public peace, health, safety and welfare for the following reasons: A. Promotion of stability in commercial tenancies is important in the City of Downey, given the number of small businesses in the community, and the need to preserve the existing commercial core of businesses, as a foundation not only for the City to recover quickly from u A losses of sales tax revenues expected to occur as a result of immediate shutdowns and curtailment of business activities in compliance with local, state, and federal health orders, but also for the ability to meet the need to attract new commercial tenants in the Downtown Downey Specific Plan area and elsewhere; and to minimize the job losses that may occur from displacement, relocation, • bankruptcies • businesses • • commercial evictions. B. COVID-19 has become a National, State, and local emergency that will result in substantial loss of income and expense for many commercial renters whose business activities have been curtailed or stopped by natural consequences of compliance with federal, state and local mandates for "Safer at Home" orders and any other similar COVID-1 9 response measures enacted to slow the infection rate, preserve the ability of medical and emergency response providers to respond to the crises and ultimately save lives. C. Evicting commercial renters who are temporarily unable to pay rent due to a COVID-1 9 related loss of income or expense poses an immediate threat to life, property and the public peace, health or safety, in that, it would displace Downey's most vulnerable businesses, and likely increase homelessness and/or the risk • COVID-19 transmission. Therefore, it is imperative that the City implement strategies to keep people and businesses housed. ,SECTION 4. The City Council finds and determines that the adoption of this Urgency Ordinance is exempt from the California Environmental Quality Act (CEQA) under State CEQA Guidelines Section 15060(c)(2), in that the adoption of this Urgency Ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment, and is further and independently exempt from the California Environmental Quality Act under State CEQA Guidelines Section 15061(b)(3), in that it can be seen with certainty there is no possibility the adoption of this Urgency Ordinance will have a significant effect • the environment. SECTION 7. The City Clerk shall certify to the adoption of this Urgency Ordinance and cause the same to be published in the manner prescribed by law.