RPVCCA_CC_SR_2014_09_02_F_Application_Fee_Waiver_Hertiage_Castle_MuseumCITY OF RANCHO PALOS VERDES
MEMORANDUM
TO:
FROM:
DATE:.
SUBJECT:
HONORABLE M~OR & CITY COUNCIL MEMBERS
JOEL ROJAS, Al P, IRECTOR OF COMMUNITY
DEVELOPMENT
SEPTEMBER 2, 2014
REQUEST FOR WAIVER OF APPLICATION FEES FOR
A CONDITIONAL USE PERMIT, COAST AL PERMIT
AND ENVIRONMENTAL ASSESSMENT FOR THE
PROPOSED "HERITAGE CASTLE MUSEUM" AT 5500
PALOS VERDES DRIVE SOUTH (PLANNING CASE
NO. ZON2014-00332)
REVIEWED BY: CAROLYNN PETRU, AICP, ACTING CITY MANAGE~
Project Manager. Kit Fox, AICP, Senior Administrative Analyst@
RECOMMENDATION
Grant the requested fee waiver in the amount of $15,970.
EXECUTIVE SUMMARY
Dr. Allan Ginsburg and Mrs. Charlotte Ginsburg have recently purchased the Harden
Estate gatehouse at 5500 Palos Verdes Drive South, and have expressed a desire to
convert the property into the "Heritage Castle Museum." The facility would serve as a
historical museum, cultural center and event space that would be open to the public. The
Ginsburgs have asked that the application fees for the required planning entitlements be
waived on the basis that the "Heritage Castle Museum" is a registered non-profit
organization, and that the project will be of substantial benefit to the public. Staff believes
that the request is warranted and should be granted.
BACKGROUND
The Harden Estate gatehouse at 5500 Palos Verdes Drive South is among the oldest
remaining structures in the City. Completed in 1929, the gatehouse was intended to serve
a much larger estate that the Hardens planned to build on Portuguese Point. Edward
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MEMORANDUM: Fee Waiver Request for "Heritage Castle Museum"
September 2, 2014
Page 2
Harden and his wife were friends and business associates of Frank and Narcissa
Vanderlip. The gatehouse was designed by architect Gordon Kaufmann and the original
landscape design was by Frederick Olmstead. Unfortunately, with the stock market crash
in 1929, the Hardens were unable to complete their dream estate at Portuguese Point.
The Rancho de Los Palos Verdes Historical Society has designated the Harden Estate
gatehouse as a local historical site. The property has passed though the hands of only a
few private owners over the years.
In April 2014, Rancho Palos Verdes residents Dr. Allan Ginsburg and Mrs. Charlotte
Ginsburg purchased the 2.06-acre property and buildings. A few weeks ago,
Mrs. Ginsburg met with Staff to discuss their proposal for the "Heritage Castle Museum"
on the property. The project description filed by the Ginsburgs on August 21, 2014,
states: ·
We are a non-profit organization and propose to renovate the gatehouse to
serve as a historical museum, cultural and educational center that will be
open to the public .... We envision using the easterly portion of the
gatehouse building as a museum/exhibit space with state-of-the-art display
technology. The facility would be available for small, docent-Jed tours by
appointment only. We would also like to make the facility available as an
event space serving local non-profit organizations. To the maximum extent
possible, we intend to provide off-street parking for visitors on the site. We
want to be sure to host events and activities on the site are of an appropriate
size and scope so as not to adversely impact our nearest neighbors,
including the City's Abalone Cove Shoreline Park. We would also like to
work with the City to preserve the rich, historic integrity and significance of
the site, including taking advantage of the provisions of the State Historic
Building Code during renovations.
Along with the project description, the Ginsburgs have asked for a waiver of the
application fees for the Conditional Use Permit ($7,222), Coastal Permit ($3,106) and
Environmental Assessment ($5,642) that would be required for this proposal, for a total
of fee waiver request of $15,970. The Ginsburgs have provided copies of the Internal
Revenue Service (IRS) and Franchise Tax Board (FTB) documents demonstrating the
non-profit status of the "Heritage Castle Museum."
DISCUSSION
Pursuant to Section 17.78.010(8) of the Rancho Palos Verdes Development Code
(RPVDC), the City Council may grant a request to waive the fees associated with a
development application if it finds that:
1. The applicant or the beneficiary of the use or activity proposed by the applicant is
a nonprofit corporation registered with the State of California; or
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MEMORANDUM: Fee Waiver Request for "Heritage Castle Museum"
September 2, 2014
Page 3
2. The use or activity proposed or the activities of the beneficiary of the use or activity
proposed are charitable, educational or otherwise provide a substantial benefit to
the public; or
3. The applicant has demonstrated a financial hardship, as determined by the City
Council, on a case-by-case basis.
As discussed in the Ginsburgs' letter, the "Heritage Castle Museum" would serve as a
historical museum, cultural and educational center that would be open to the public. The
Ginsburgs are also interested in making the space available local non-profit organizations
for events. Staff understands that Mrs. Ginsburg has already reached out to the Rancho
de Los Palos Verdes Historical Society and the Palos Verdes Peninsula Land
Conservancy for their participation and support. In addition, the "Heritage Castle
Museum" ·has obtained non-profit status that is recognized by both the IRS and the FTB
(see attachments). Therefore, Staff believes that granting this fee waiver request is
warranted.
ADDITIONAL INFORMATION
Non-Permitted Construction and Encroachments onto City Property
There are non-permitted structures on the property that have been the subject of City
code enforcement action under previous ownership of the property. Also, it appears that
some of the existing non-permitted structures and permitted hardscape (i.e., portions of
the driveways) may encroach upon adjacent City property (i.e., Abalone Cove Shoreline
Park). It is Staff's intention to work with the Ginsburgs as a part of the proposed planning
entitlements for the "Heritage Castle Museum" to correct existing violations related to non-
permitted construction. In the longer term, Staff desires to work with the Ginsburgs to
resolve any remaining issues with encroachments upon City property.
Historic Building/Site Designation
The City's Building Official has met with Mrs. Ginsburg to review the "Heritage Castle
Museum" proposal. Converting the structure from a private residence to a public/quasi-
public facility will require modifications to the site and structures in order to comply with
basic building code life and safety requirements. In order to allow the property to be
modified in a manner that will minimize adverse impacts upon its historic character, it will
be extremely helpful to be able to apply the State Historic Building Code (SHBC) to the
project (rather than modern building code). However, in order to apply the SHBC, the
City Council will need to formally designate the Harden Estate gatehouse as a historic
site (the designation of the property by the Rancho de Los Palos Verdes Historical Society
does not appear to be sufficient to qualify for the application of the SHBC). Since the City
does not have a historic preservation ordinance, Staff is investigating options to allow this
designation to occur though a parallel process that would also be complete by the end of
2014.
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MEMORANDUM: Fee Waiver Request for "Heritage Castle Museum"
September 2, 2014
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Expedited Planning Review
The Ginsburgs have advised Staff that an anonymous donor has offered to make a
substantial contribution to the "Heritage Castle Museum," contingent upon the Ginsburgs
obtaining planning entitlements from the City by the end of 2014. In order to accomplish
this, Staff has initiated an aggressive and expedited review process for this proposal:
Deadline Milestone
Tuesday, Sep. 2nd City Council consideration of fee waiver request
Friday, Sep. 12th Complete environmental review and begin public comment
period
Monday, Oct. 13th End of public comment period
Tuesday; Oct. 14th Public hearino before the Plannino Commission
Wednesday, Oct. 29th End of appeal period to City Council
Tuesday, Nov. 1ath Appeal hearing before the City Council (if necessary)
Friday, Dec. 5th End of appeal period to Coastal Commission (estimated)
If the Planning Commission's action is not appealed to the City Council, the notice of the
City's final action would be forwarded to the Coastal Commission sooner than described
above. However, if an appeal is filed to or by the Coastal Commission, the planning
entitlements for this proposal are unlikely to be final by the end of 2014.
Notification
The Ginsburgs have been advised of the City Council's consideration of this request at
tonight's meeting, and have been provided with a copy of the Staff report.
CONCLUSION
Staff believes that the Ginsburgs' request for a waiver of the application fees associated
with the "Heritage Castle Museum" proposal (Planning Case No. ZON2014-00332) is
warranted, based upon the required findings under RPVDC Section 17.78.010(8).
Therefore, Staff recommends that the City Council grant the Ginsburgs' request.
ALTERNATIVES
In addition to Staff's recommendation, the alternatives available for the City Council's
consideration include:
1. Deny the requested waiver of the application fees.
2. Grant a reduction in the application fees, in an amount to be determined by the
City Council.
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MEMORANDUM: Fee Waiver Request for "Heritage Castle Museum"
September 2, 2014
Pages
FISCAL IMPACT
The approval of the requested fee waiver will result in the City foregoing a total of $15,970
in application fees that would otherwise be required for the processing of planning
entitlements related to this proposal. However, Staff time expended for the processing of
these entitlements is not expected to have a significant fiscal impact since the time
required to complete the planning process is already accounted for in the personnel costs
allocated in the Community Development Department's FY 2014-15 budget.
Attachments:
• Project description and fee waiver request (received August 21, 2014)
M:\Planning Cases\ZON2014-00332 (Ginsburg, 5500 Palos Verdes Dr S)\20140902_StaffRpt_CC.docx
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08/21/2014 11:14 310-549-8393
August 21, 2014
City of Rancho Palos Verdes
Community Development Department
30940 Hawthorne Blvd.
Rancho Palos Verdes, CA 90275
G&G ENTEPRISES PAGE 02/02
RECEIVED
AUG 21 2014
COMMUNITY DEVELOPMENT
DEPARTMENT
SUBJECT: Project Description and Fee Waiver Request for the ·Proposed "Heritage
Castle Museum" at 5500 Palos Verdes Drive South
To \J\'.hom It May Concern:
This letter provides a brief summary of the proposed "Heritage Castle Museum" at the former
Harden Estate gatehouse ~t Portuguese Point, located at 5600 Palos Verdes Drive South. We
are a non~profit organization and propose to renovate the gatehouse to serve as a historical
museum, cultural and educational center that will be open to the public. A copy of our mission
statement and our IRS and FTB documents are attached.
We envision using the easterly portion of the gatehouse building as a museum/exhibit space
with stateMof..the-art display technology. The facility would be available for small, docent-led
tours by appointment only. We would also like to make the facility available as an event space
serving local nonMprofit organizations. To the maximum extent possible, we intend to provide
off·street parking for visitors on the site. We want to be sure to host events and actMties on the
site are of an appropriate size and scope so as not to adversely impact our nearest neighbOI"$,
including the City's Abalone Cove Shoreline Park. We would also like to work with the City to
preserve the rich, historic integr~y and significance of the site, including taking advantage of the
provisions of the State Historic Building Code during renovations.
In order to assist our organization with fundraising for this proposal, we have incorporated and
registered as a non-profit organization. To that end, we request consideration of a waiver of the
planning permit fees tor this proposal under Section 17. 78.010 of the City's Municipal Code.
We look forward to working with your Staff on this exciting proposal that promises to be a
tremendous benefit to the City of Rancho Palos Verdes and its residents.
Dr. Allen Gin$bur
Heritage Castle seum
~.~
Heritage Castle Museum
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,'
Mission:
Heritage Castle Museum
Mission, Vision, and Founder's Quotes
The Heritage Castle Museum's mission is to preserve and enhance a historical landmark,
conserve natural lands, protect coastline resources, and celebrate the splendor of Palos Verdes
through the arts, community events, and educational exhibits and programs.
Vision:
Our vision is to preserve the natural beauty and pristine ecology of this historical estate in
perpetuity to ensure that future generations can learn about and experience the renewing,
healing, and inspiring vistas of Palos Verdes.
Founder's Quotes:
"The Heritage Castle Museum is a beautiful window int<? our past that will be preserved for
generations to come. The historical figures of the estate's early development include the
"father of Palos Verdes" Frank A. Vanderlip and world-renown landscape architect Frederick
law Olmsted, making the estate a local treasure of natural significance. The Museum is
dedicated to sharing this jewel with the community through educational exhibits, historical
tours, and artist exhibitions and performances."
-Charlotte Ginsburg, Co-Founder
"By exploring the compelling history of Palos Verdes, we will come to better understand our
current existence. Only then can we begin to design a more sustainable future-a future based
on the noble values of knowledge, truth, and progress. The world faces tremendous inequality,
poverty, overpopulation, and degradation of natural resources. Education, and education for
women in developing counties in particular, coupled with advancements in technology and
information systems, will enable a healthier, more vibrant future for all. The Heritage Castle
Museum will become a modern expository to research our history, celebrate contemporary
achievements, and stimulate lively discussions about the future of humanity."
-Allen Ginsburg, Co-Founder
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~ ., • f
INTERNAL REVENUE SERVICE
P. O. BOX 2508
CINCINNATI, OH 45201
Date: AUG 11 (014
HERITAGE CASTLE MUSEUM
1710 N AVALON BLVD
WILMINGTON, CA 90744-1860
Dear Applicant:
DEPARTMENT OF THE TREASURY
Employer Identification Number:
46-5737489
DLN:
17053183310034
Contact Person:
CUSTOMER SERVICE
Contact Telephone Number:
(877) 829-5500
Accounting Period Ending:
May 31
Public Charity Status:
ID# 31954
_ 5-0.9 (a) .(.2)... --------·--------
Form 990 Required:
Yes
Effective Date of Exemption:
May 28, 2014
Contribution Deductibility:
Yes
Addendum Applies:
No
We are pleased to inform you that upon review of your application for tax
exempt status we have determined that you are exempt from Federal income tax
under section 501{c) (3) of the Internal Revenue Code. Contributions to you are
deductible under section 170 of the Code. You are also qualified to receive
tax deductible bequests, devises, transfers or gifts under section 2055, 2106
or 2522 of the Code. Because this letter could help resolve any questions
regarding your exempt status, you should keep it in your permanent records.
Organizations exempt under section 501(c) {3) of the Code are further classified
as either public charities or private foundations. We determined that you are
a public charity under the Code section(s) listed in the heading of this
letter.
For important information about your responsibilities as a tax-exempt
organization, go to www.irs.gov/charities. Enter "4221-PC" in the search bar
to view Publication 4221-PC, Compliance Guide for 501(c} (3) Public Charities,
which describes your recordkeeping, reporting, and disclosure requirements.
Sincerely,
Director, Exempt Organizations
Letter 947
F-8
~ ' • 'I
-........ ~ f~k~ of California
-~R-anchise Tax Board
'•"::...-::
POBox1286
Rancho Cordova CA 95741-1286
HERITAGE CASTLE MUSEUM
1710 N AVALON BL
WILMINGTON CA 90744-1860
Regarding
Organization's Name
CCN
Purpose
R&TC§
Form of Organization
Accounting Period Ending
Tax-Exempt Status Effective
: Tax-ExemptStatus
: Heritage Castle Museum
:3679933
: Charitable
: 23701d
: Incorporated
:05/31
: 05/28/2014
Date: 08.06.14
Case: 26600552229907156
Case Unit: 26600552229907160
In reply refer to: 760:TLS:F120
Exempt Determination Letter
We have determined the organization is tax-exempt from California franchise or income tax as stated
in the above Revenue and Taxation Code (R&TC) section(§).
To retain tax-exempt status, the organization must be organized and operating for nonprofit
purposes within the provisions of the above R& TC section. An inactive organization is not entitled to
tax-exempt status.
We have based our decision on the information submitted and the assumption that the
organization's present operations will continue unchanged or conform to those proposed in the
organization's application. In order for us to determine any affect on the tax-exempt status, the
organization must immediately report to us any change in:
• Operation
• Character
• Purpose
• Name
• Address
Our determination may no longer be applicable, if these changes occur:
• Material facts or circumstances relating to the organization application.
• Relevant statutory, administrative, or judicial case law.
• Federal interpretation of federal law in cases where our decision was based on such
Interpretation.
It Is the organization's responslbllity to be aware of these changes should they occur. This paragraph
constitutes written advice, other than a chief counsel ruling, within the meaning of
FTB 9941 PASS (REV OS-2013) ExemptApplication\Correspondence \
LTR 001-01 EDL-CORRECTED LTR
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Page 2of 2
R&TC §21012(a}(2).
For filing requirements, get Pub. 1068, Exempt Organizations • FiJTng Requirements and Filing Fees.
Go to ftb.ca.gov and search for 1068.
This exemption is for state franchise or income tax purposes only. For information regarding sales tax
exemption, contact the State Board of Equalization at 800.400.7115, or go to their website at
hoe.ca.gov.
Theresa L. Schock
Telephone: 916.845.4171
Fax: 916.843.0932
cc: Robert Moore
CPA
FTB 9941 PASS (REV 03-2013) Exempt Application\Correspondence \
LTR 001-01 EDL-CORRECTED LTR
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