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CRA News July 2001

Selected articles from the newsletter of the Carmel Residents Association

CRA Board Members
Ali McDaniel, left, Loretta Williams and King Williams
served lunch to all the hungry volunteers
who attended the picnic in their honor
after their morning's work cleaning the beach.



"Carmel Fun Night" - The Hunt Is on!

For several months, Carmel Residents Association and Carmel Business Association members have been working out the details of a first joint fund-raiser for the arts to be held on Wednesday, September 19, 5 p.m. to 8:30 p.m., on the Terrace at Sunset Center. Wonderful food and wine, generously donated by local restaurants and wineries, will be served. The festive evening, planned to be an annual event, will include a special scavenger hunt and a silent auction with unique items. Space is limited to 300 guests, so please make your reservations early and enjoy a delightful evening. Tickets are $30 each. Checks should be made out to CBA/"Carmel Fun Night" and sent to Carmel Business Association, Box 4444, Carmel, 93921. The funds raised this year will go for a project at Sunset Center.

Melanie Billig (626-3826) says, "If you have any clever ideas for the scavenger hunt, please let us know. We are looking for items for the silent auction such as a brunch, luncheon, small cocktail party or dinner for six at your home, a beach picnic basket or some outstanding wine from your cellar. We hope this starts your thinking about how you can help."

A Carmel Original - The Seven Arts Building

Connie Wright, a retired University of Colorado professor, has agreed to write a column featuring early Carmel. Here is her inaugural article.

Seven Arts BuildingOne of the buildings in the commercial district that everyone should note is the handsome Seven Arts Building, on the southwest corner of Ocean Avenue and Lincoln. Two-storied, it extends on Ocean Avenue from the Carmel Valley Coffee Roasting Company to the Carmel Bay Company and on Lincoln to the shops, the Seven Arts Court and another court. Ground was broken in 1925. The owner, Herbert Heron, desired it for space to display books he collected as a professional dealer. The architect was Clay Otto, the builder Percy Parkes, and its decorators were landscape painter George Seideneck and his wife, Catherine Comstock Seideneck, a leather sculptor and sister of Carmel builder Hugh Comstock.

Made of stucco over Thermolite brick, the building is dark gray and is thoroughly Arts and Crafts in character, with steep gable roofs, oddly shaped windows, Dutch doors and wrought iron ornamental lamps, gates and grills. The shops have been remodeled, but the space on the northeast corner of the second floor, now occupied by the Carmel Bay Company, remains essentially unchanged, with two large windows, exposed beams and unfinished wooden siding. The Seven Arts Court on Lincoln contains a six-sided wishing well, luxuriant planting, including wisteria cascading from the second floor, and contemporary benches. The entrance to the second courtyard, now occupied by the Carmel Pipe Shop, was originally the entrance to the Herons' private living quarters.

Herbert Heron was a professional actor from Los Angeles who first moved to San Francisco and then to Carmel after hearing of the Bohemian spirit of the village. Here he wrote verse dramas and poetry and founded the Forest Theater, where he produced and acted in many plays and was its guiding spirit for decades. He was also a City Council member and mayor of Carmel from 1934 to 1938. A tireless worker, at the age of 80, he climbed the roof of the Seven Arts Building to repair it.

Heron also was the landlord of the Carmel Art Association, formerly the Carmel Arts and Crafts Club. Association members had long searched for a gallery in which to display members' work. Tourists got lost trying to find artists' studios located off trails and paths. The Association rented part of the second floor from Heron for $30 a month, later raised to $40. The Association in October 1927, held its opening show. According to the Pine Cone, throngs attended; 40 artists entered 58 pictures--oils, pastels and watercolors. Among the artists who showed were Josephine Culbertson, Percy Gray, Myron Oliver, Gene McComas, Mary DeNeal Morgan, Lillian Nicholson, George and Catherine Seideneck and John O'Shea. Unfortunately, there was always a lack of funds and, with the depression, the Association was forced to terminate its rental in 1929.

The next notable tenants were Armin Hansen, distinguished seascape painter, then an Associate of the National Academy of Design, and two friends, Paul Whitman, an etcher, and his wife, Kit, a painter, who formed the Carmel Art Institute in 1937. In 1939, Hansen became ill and sold the Art Institute to John Cunningham, a Carmel Art Association member, and his wife, Pat, an oil painter and muralist. Artists who taught or lectured at the Art Institute included Alexander Archpenko, Benjamin Bufano, Salvador Dali, Fernand Leger and Jean Varda. Other tenants of the building included photographer Edward Weston, painter Luis Mora, brother of Jo Mora, and Charles Thomas, longtime director of the Art Association.

The exterior of the Seven Arts Building has remained the same for seventy-six years. Polk's Monterey County Directory of 1926 states: "The Seven Arts Building was the original of Carmel's famous shops ... the first devoted to things of beauty and utility instead of utility alone."

EDITORIAL

Affordable housing? Or a boon for realtors and property managers?

We applaud the decision of the City Council to give $10,000 to the Alliance on Aging's Senior Home Share program, which brings together people looking for a place to live with those who have extra space in their homes and want someone to live with them. This program provides truly affordable housing.

We do have concerns, however, about the seemingly well-intentioned desire of the City Council to change city rules to allow property owners to rent both their main house and their guest house or subordinate unit. This would allow rental of approximately 250 units for "affordable" housing. As the law currently stands, a home owner is only allowed to rent a second unit if he or she resides permanently on the property. This is a critical issue since 60% of our homes are not occupied by full-time residents.

The more restrictive ordinance was put in place several years ago after a barrage of complaints that some properties were turning into boarding houses with too many cars, noise and no owner on site to control the situation. There was a fear that realtors would push properties with a house and guest house as rental investments, not as primary or even second homes. In other words, this measure was put into place to protect Carmel's neighborhoods and its village character.

No one disagrees that affordable housing is an admirable goal. However, when Mayor Sue McCloud first suggested this during a hearing on the Design Traditions ordinance, she acknowledged that the rents charged for secondary units in Carmel would be much higher than levels generally considered "low cost." So, is the City Council contemplating turning our neighborhoods upside down to provide rental units that will be far more expensive than those who need affordable housing can afford? Who will benefit? Property management firms and realtors?

This issue has been sent to the Planning Commission for consideration and will be acted upon in August or September. The date has not been set. If you are interested in attending, check the agenda at the Post Office or in front of City Hall or call the Planning Department at 620-2010.

Are high rents finally killing the proverbial golden goose?


A recent gathering of members of the business community at the May meeting of the Carmel Residents Association [see article below] elicited some strong comments about the upward spiral of rents in Carmel's business district, particularly on Ocean Avenue. Smaller businesses are being driven out. Estate taxes can force rents upward and bank trust departments who manage property have a fiduciary obligation to obtain the highest use of the property. Also, when a business such as Carmel Plaza is sold, property taxes, because of Proposition 13, are stepped up to current levels and passed on to the tenants. Only deep-pocketed corporate chains or art galleries and some jewelry stores with inventory on consignment can afford to lease space. At the May meeting, Howard Brunn pointed out that rent should run 8% - 10% of expenses, but in Carmel can be as high as 20%.

While talking to people in the business district, however, we have found a troubling perception that greed is also part of the equation. As new generations come along in property-owning families, there are more and more individuals who want part of the income. Ironically, the overhead is often much lower on properties that have stayed in the same family--they are owned outright and their taxes are very low.

"Key money" is the amount charged a new tenant for the privilege of taking over an existing lease from a departing tenant. Prospective renters have often waited until a business failed so they could deal directly with the property owner. But, the word on the street now is that landlords themselves are asking for key money. The spaces vacated by Carumba and Nature Company on Ocean Avenue are a good example. For each space, the owners were reportedly asking $100,000 up-front key money plus $20,000 per month rent! After six months on the market, the space has recently been rented to another art gallery. Off Ocean Avenue, the Oxbridge space is reportedly on the market for $14,000 per month. Add these high rents to the expense of setting up a business and you see why it is hard for a small business to survive. Jim Okart, at the May residents association meeting said, "It would scare you to know how much it would cost for me to open a store like mine (J. Lawrence Khaki's) in Carmel -- $1,000,000 to fix up the space plus $1,000,000 to purchase inventory."

We wish we had a solution to offer. The subject of rent control comes up from time to time, but that has its own set of problems. In May, Howard Brunn suggested that the city should buy a large piece of property off of Ocean Avenue for small stores and charge reasonable rents. Near term, it would be helpful if city officials, property owners and residents could initiate an ongoing discussion seeking possible solutions to this seemingly insurmountable problem.

President's Message

by Monte Miller, President, Carmel Residents Association


I hope to continue many of the ideas and goals initiated by Melanie Billig. We owe her a vote of thanks for her outstanding leadership of the Carmel Residents Association. My short-term goal is to find out what issues are of concern to the CRA members. We are in the process of developing an issue poll to send out to the members this summer. I would also like to see that our new members are quickly integrated into our organization and community. To aid in this process, we will be holding a coffee each month so new members can meet active CRA members.

We plan to concentrate this year on the education of our members and the public on issues of importance to the city. The results of the poll will give us a better idea of which issues are foremost in your minds. As well as indicating your views by returning the poll after it arrives, we encourage letters to the newsletter editor or to any member of the board.

It is vital that we have increased membership support at our City Council and key commission meetings. We can make a real difference by our active attendance. City officials respond favorably when residents express their opinions on issues of importance to our community.

The board and I really appreciate the wonderful support of so many talented and dedicated members. We are always looking for new people who are interested in helping the Carmel Residents Association in areas such as newspaper, TV and radio relations or in helping organize and staff our various events. Please contact me if you would like to be more involved. Many of you have already indicated a desire to volunteer in support of future activities. My goal is to put you all to work, although it may take some time. I look forward to working with you in the coming year to help preserve and enhance our wonderful city.

Community property with right of survivorship
coming to your neighborhood
by Suzanne Paboojian

Effective for transfers after July 1, 2001, married persons may elect to hold title to property in California as "community property with right of survivorship." (Civil Code section 682.1.) This new manner of taking title combines the most favorable aspects of community property and joint tenancy. Married couples will be able to hold and manage property under California's community property laws; retain the favorable federal tax status of community property's step-up in tax basis upon death; and get the probate-avoidance which comes with right of survivorship, by abolishing the need to obtain a probate court decree that joint tenancy property was in fact community property. If you are planning on acquiring property this year, research the legal and tax ramifications of this new type of ownership for your situation. Community property with right of survivorship is not limited to any particular type of property, but is not available for joint accounts at financial institutions, which already have extensive rules governing their management and ownership.

If you are married and hold title to real property in joint tenancy, then you may want to discuss with your legal and tax advisor the benefits of changing how you hold title to your property. You should realize that any changes to how you hold real property can affect the rights of the other owner to the property in any future divorce action and can also effect how the property is transferred to future heirs. Finally, this discussion may not be applicable to properties held in living trusts because property held in a living trust is usually classified by the terms of trust according to the wishes of trust owners.

Suzanne Paboojian is a realtor and lawyer. This article is not intended as legal, financial or tax advice. You should consult your legal and tax advisor regarding advice specific to your particular circumstances and situation.


Business community members share
their thoughts and vision

Organized by outgoing president Melanie Billig, The May meeting of the Carmel Residents Association featured a panel of prominent Carmel business community members who held a lively discussion on Carmel's business district and their vision of its future. Participants were Mike Brown, owner of Perspectacles, Howard Brunn, originator of several Carmel businesses, Kati Lewis, owner, with husband Alan, of La Bohéme Restaurant, Jim Okart, owner of J. Lawrence Khaki's in the Barnyard, Clive Rayne, former co-owner of Derek Rayne and Diana Tiernan, manager of Carmel Plaza.

In answer to a question about their vision of the future of the commercial district, considerable concern was expressed about losing its ambiance. Howard Brunn said he was "painfully aware that we can't go back to where we were," but hoped that tenants and landlords would realize that the "Golden Goose is not going to lay another egg." Kati Lewis felt that we "have to do what needs to be done to retain character. We are losing it incrementally day by day." She would love to see Ocean Avenue turned into a main street we can be proud of rather than "a shopping street of very low quality." Diana Tiernan said that "mom and pop businesses are what bring people here. Wealthy people want first class stores and service but it is hard to find both quality tenants and quality employees and the competition is fierce." Carmel Plaza has a 25% vacancy. As it stands now, Howard Brunn felt that "Carmel is a mall without a roof." Mike Brown said "I'm optimistic as long as organizations like the CRA with people who care about Carmel exist. We need people who stay in hotels and spend quality time in town, not the bubble gum chewers."

Skyrocketing rents were a major concern. [See related editorial.] Kati Lewis urged CRA members to action saying, "This is happening all over the world. Our responsibility is to recognize those forces and do something about it. It is your city. You need to take a stand." Mayor Sue McCloud has held one meeting of property owners. Mike and Kati both thought that residents should also meet with the landlords and let them know what kind of businesses they want to see. Mayor McCloud said that the city hopes to work through brokers to get good businesses.

How can residents help? First and foremost, "Shop in Carmel-by-the-Sea!" Howard Brunn suggested that residents should "know the ordinances and be a watchdog for business just like you are in your neighborhoods." Code violations almost always happen on weekends and should be reported to the city. Mike Brown added, "Residents need to care." If you see something wrong in Carmel Plaza, Diana Tiernan hopes you will call her. Kati Lewis simply said, "Talk to us."

Several panel members expressed sadness over the closing of quality men's store Oxbridge, but great concern that the closing sale included lower-quality merchandise brought in by liquidator Patrick James. [See related article.]

In response to a question about the proposed Business Improvement District (BID), Howard Brunn warned "I don't think the city should give up one iota of its ability to control the business district." Diana Tiernan thought that "We have to make a commitment to market the town if we want to keep quality businesses." Although Kati Lewis said she likes the concept of putting together a good marketing program, she does not like the details of the BID and Mike Brown said he is "totally opposed. We don't need to push Carmel. The BID will bring the masses, not quality people."


Notes from July 10 City Council Meeting

Oxbridge appealed [see article above] the City Administrator's June 30 deadline of its going-out-of-business sale. The council has the discretion to allow up to 90 days, but voted 2-1 (McCloud and Livingston, yes; Hazdovac, no) to stop the sale on July 15, after a total of 55 days. Councilmembers Ely, Hazdovac and Rose stepped down but Councilwoman Hazdovac had to remain to allow a quorum. The main concern was the "discount" merchandise brought in for the sale.

Council's review of the draft Historic Preservation Ordinance elicited great concern. It seemed from questions and staff responses that urgency to complete the Local Coastal Plan was driving the schedule and eliminating the opportunity for more public input. Planner Brian Roseth said there had been many public meetings on the subject. But, the final draft of the ordinance and the Historic Preservation Element were not available for scrutiny at those meetings. Architect John Thodos lamented, "In your desire to get to the end zone, you have circumvented the process. We are the ones who are affected. We are the players." Ralph Tober, chair of the Historic Preservation Committee, said that his group had not signed off on the draft although it indicated that they had. Roseth reiterated that this was the beginning of the process and that after an Environmental Impact Report is completed there will be more public meetings. Councilwoman Livingston said, "A voluntary program will never work in this town without a massive public education program."

Recommending an urgency moratorium on demolitions of houses over 50 years old, City Administrator Rich Guillen advised the council to take control of its own destiny and put in its own moratorium rather than take the chance of having one imposed, as threatened, by the Coastal Commission or the courts. City Attorney Don Freeman pointed out that every time applicants go to the Coastal Commission or to court they incur unexpected, steep legal bills. Councilman Dick Ely felt a moratorium is a "farce because there are already 18 demolition applications already in place. Our duty is to deny the applications." Mayor Sue McCloud pointed out that "if we impose it on ourselves, we can lift it." In the end, Councilwoman Livingston moved approval and it died for lack of a second.

Extension of an urgency ordinance adopted in June "to respond to inadequacies in the city's current historic preservation ordinance and to recent action by the Monterey County Superior Court" was unanimously adopted by the City Council. CRA Board member Jim Wright made an eloquent presentation on the "environmental crisis" brought on by the city's actions regarding historic preservation, which will be detailed in a later newsletter.


Flanders update
by Melanie Billig

After many months of waiting, the City Council and the community will finally hear the results of the second appraiser hired by the city to evaluate the Flanders property for sale, as well as to look at the additional options of a long-term lease and a life estate. As of press time, we understand that this information will be on the August 7 council agenda. Prior to sale, the city must establish the property's value. Based on the city's recently approved budget and the city administrator's budget message, it appears that we may see the sale of parkland and open space as one way to finance some of the city's capital improvements. At a time when communities around the state and nation are scrambling to find ways to acquire open space and preserve National Register properties, Carmel is seriously considering ways to remove these properties from public use in spite of community support to retain them.

If you care about our open space and historic resources, mark your calendar for August 7 and attend the council meeting, or write to the City Council at P.O. Box CC, Carmel, CA 93921.


City energy program

Carmel-by-the-Sea residents are eligible for a $60 voucher for energy-saving light bulbs. Take a photo ID and 2 bills indicating your residence location to City Hall to obtain a voucher form.


The Sunset renovation project can use your help!

You no doubt have read that the lowest bid for the construction portion of the Sunset project was $3 million over projected costs. This does not mean that the project has stopped. The bids are now being closely scrutinized to determine where cost reductions can be made. A complete review of the design is being conducted to see if alterations which would still fulfill the project needs can be made to reduce the overall cost. And, the city is looking at any and all available options to provide additional funding. In other words, every effort is being made to ensure that the project will move forward.

How can you help? If you have been thinking about making a donation but have not yet done so, it would be very helpful if you could write that check now. Or, if you have any suggestions for other possible sources of funds, please relay them to the Campaign for Sunset, P.O. Box 400, Carmel, CA 93921. Or call the campaign office at 831-625-2486.

Beach Cleanup

Saturday, July 28
Saturday, August 25
10 a.m. - noon

* Volunteers meet at foot of Ocean Avenue
* Please bring gloves
* Coffee and pastries served courtesy of Caffe Cardinale and Carmel Bakery

City budget highlights - a map for the future
by Melanie Billig

The annual ritual of the city's budget approval is over, sadly, with very little public scrutiny, especially since the budget drives city actions including resident and visitor services, facilities, streets and forests. It is the city's ultimate planning tool, mapping the council's vision for the future. As in past years, the CRA's budget subcommittee carefully reviewed and commented on the process and the document itself.

This year the city developed a three-year operating budget and a more detailed Capital Improvement Plan (CIP) which covers improvements to buildings, streets, pathways, parks, etc. The budget is more readable and understandable than in the past, for which we thank staff. Since the budget is key to making things happen in Carmel, the CRA board wanted to share its comments with the council and staff. We believe that the council should actively encourage public input in the budget process, possibly through an early mailer or full-page ad explaining key budget issues. We also recommend more study sessions where staff explains each department's priorities with time for questions, as well as the final vote on the budget at a special meeting unencumbered by a busy council agenda.

Again this year, the Planning Commission had little involvement in advising on the CIP, particularly surprising since the City Council has said it wants the commission to do more long-range planning. Our association supported the Planning Commission's unanimous request that a master plan for residential undergrounding of utilities be funded this year and that funding options for the future be reviewed. Only Gerard Rose and Barbara Livingston supported this. We also suggested that the amount of the bond for Sunset Center be increased to complete the nearly three pages of deferred maintenance on the remainder of the Sunset complex so that the entire project would be upgraded in a more cost-efficient manner. Since San Carlos Street will be torn up for the renovation, we asked to include utility undergrounding in front of Sunset in the bond act. The mayor said that adding these additional items would necessitate a vote of the people! The recommendations were rejected 4-1 with Livingston dissenting. Similarly, the San Carlos Street neighborhood project should have been coordinated with the Sunset renovation for efficiency and to save the grant monies. Our board was disappointed when the council majority rejected both the undergrounding and the San Carlos Street improvements, as we have strongly supported citizen-originated projects for the betterment of our community.

Although omitted in the original budget document, the City Council agreed to fund a new planning director--strongly recommended by the CRA. Unfortunately, a majority did not agree to increase salaries in the Planning Department in order to retain personnel and attract high-quality candidates for current vacancies. The department has lost many of its most knowledgeable employees and, with only two staff planners and one contract planner, is clearly understaffed and overworked. The city is under great pressure to complete the Local Costal Plan, the Historic Preservation Element and commercial design guidelines and to staff the Planning Commission, Historic Preservation Committee and new Design Review Board.

The council is looking at new revenue sources due to the likelihood that the state may again raid cities and counties as in previous economic downturns. We strongly supported the hiring of a grant writer to seek out the tremendous amount of money that is available to fund improvements to our buildings, parks, streets, pedestrian and bike ways. Many projects have been identified in the CIP which, according to Councilmember Livingston, should be funded by grants. Rather than inhibit this, council should direct staff to write applications, especially for the Forest Theater, Forest Hills Park, Mission Trails Preserve and Rio Park.

Another significant revenue generator is paid parking, which the Parking 2000 Committee will once again address. It was put on the back burner, according to Mayor McCloud, because the city did not want to deal simultaneously with two controversial issues, parking and the Post Office. The Business Improvement District (BID) would supply marketing money as well as funds for city use. It would, if approved by the business community, remove the $100,000 that the city allots to visitor promotion. However, the BID seems to be running into some opposition from a variety of small businesses and its future is unclear. In an unusual move, the city administrator recommended against funding the $100,000 promotional marketing program. The council voted against his recommendation, noting that the city might have to fund the marketing in quarterly payments to ensure that there are no budget shortfalls.

These are a few of the budget issues which we hope will give you a better understanding of the council's direction for our village.


  Cartoon by Bill Bates   Thanks to Bill Bates for graciously letting us reproduce this cartoon. He reminded us that the lady on the left with the upswept hair is Lilias Cocks, a dear longtime Carmel Residents Association member who passed away several months ago. Just a few days before we talked with Bill, Lilias' family came into Bates' Carmel Cafe to photograph Bill's reproduction of this piece on the restaurant wall.  
  "First I have to have my prescription filled at Carmel Drug, if it's still there, then I'll stop for a cup of coffee at the Village Corner ... if it's still there, then pick up some rolls at Wishart's .. if it's still there, then ..."      



Carmel Residents Association
P.O. Box 13
Carmel, CA 93921
Phone: 831-620-0532
Contact the Carmel Residents Association
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