PLACENTIA : Condo Denial Was Improper, Judge Says

A Superior Court judge has ruled that the city improperly denied Iraj Mahdavi’s plan to convert a 22-unit apartment complex into condominiums.

The ruling, which city officials say they won’t appeal, means the city must grant permits allowing Mahdavi to sell the units to individual owners.

According to City Atty. Carol B. Tanenbaum, Judge James L. Smith last week said there was no basis for the city’s findings that displaced tenants would suffer financially and that potential buyers would not be able to afford the condos.

Smith’s ruling came after Mahdavi had battled with the city for nearly 15 months to win project approval. What stated as a promising application approved by the Planning Commission in November, 1992, quickly soured when the City Council denied the application the next month.

Mahdavi changed the plan to address the council’s complaints about parking and appealed the decision last February. Once again, the Planning Commission recommended approval and the council denied the application.

Mahdavi then got a court order from Smith ordering the city to reconsider its decision, but in October the council again denied the request, this time saying the market for condos had dried up.

Some of the council members also questioned Mahdavi’s claim that several of his current tenants are interested in buying their units.

“We haven’t heard one word on how they will qualify” for mortgage loans, said Norman Z. Eckenrode. “I don’t feel all of them will qualify.”

Mahdavi plans to sell the two- and three-bedroom units at the Gables for $120,000 to $135,000. He has offered purchase assistance to those tenants who want to buy and relocation assistance to tenants who leave.