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HomeMy WebLinkAbout20190029 Val Kill Properties Second Submission e, . FERRADINO .,, ,.,,,BUSINESS&LEGAL ,› STRATEGY FERRADINO FIRM, PLLC Stephanie W. Ferradino, Esq. ° stef@ferradinofirm.com June 19, 2019 Saratoga Springs Zoning Board of Appeals Attn:Amanda Tucker City Hall—474 Broadway Saratoga Springs, NY 12866 Re: 40 Second Street, Saratoga Springs, NY 12866 Dear Amanda: Pursuant to the request of the ZBA at during our last appearance before the board, enclosed please find the following documents related to the inquiries of the board members during the presentation on the above referenced matter: 1. Narrative to supplement original application information; 2. Photos of parking in driveway and on the street; 3. Photos to demonstrate density in UR-2 Zone; 4. Affidavit of owner Gina Peca; 5. Affidavit of owner Christopher Rose; 6. Affidavit of realtor Wayne Perras; and 7. Construction cost estimates from Teakwood Builders. Since this application has been pending, the city has had the opportunity to obtain alternates to the ZBA. Given the chairman's recusal, please have an alternate review the prior materials and be present at the meeting so we have the opportunity for full board participation and vote. In the event other members will not be present, I will request an adjournment of consideration of this matter until such time as a full board can be present. To that end, we would request to be scheduled for the ZBA's agenda for the July 22, 2019 meeting. Kindly advise if that date can work and if anything further would be helpful to the city and board's consideration of this application. Thank you. Very truly yours, Stephanie W. Ferradino Enc. 63 Putnam Street, Suite 202 D Saratoga Springs, New York 12866 (518) 260-1229 0 www.ferradinofirm.com 2nd NARRATIVE SUBMISSION 40 SECOND STREET—AREA VARIANCE On area variance applications, the town law directs the ZBA to use the balancing test. The five factors commonly referred to as "area variance standards" are considered when weighing the benefit to the applicant versus the"detriment to the health, safety and welfare of the neighborhood or community by such grant." General City Law§81(4). In the instant matter, it is clear the benefit to the owners of 40 Second Street in granting the variance is not only significant but is also necessary in order to right the wrongs that occurred in this matter as the direct result of actions of others. In sharp contrast is any possible detriment which would occur to the health, safety and welfare of the neighborhood or community. The ZBA is encouraged to strongly consider the actual detriment which has been caused to the community to date as a result of the existing unlawful condition. As is demonstrated by the proof in the matter, the prior use of the structure for the unlawful use is undisputed. The cottage has previously been used for living quarters and rented out for this use. Because this has been an existing condition, it would be difficult to prove that continuing the condition with the granting of the variance would result in an "undesirable change"to the neighborhood, as is required by the statute. To the extent that any undesirable changes would exist from the granting of the variance, the legislature has allowed a relief valve in General City Law which allows the ZBA to impose conditions on the granting of a variance"for the purpose of minimizing any adverse impact such variance may have on the community or neighborhood." General City Law§81(5). Neither generalize neighborhood opposition, nor the predisposed prejudice as articulated by one ZBA member in the previous meeting against the granting of variances for this relief, provide the legal basis for denial of an area variance. Financial Detriment to Applicant and Feasible Alternatives The financial detriment which has occurred in this matter is significant and must be considered as significant economic injury is a consideration in area variance standards when applying the balancing test. Courts have held that a showing of financial hardship and compatibility of a proposed use with the character of the neighborhood warrant a granting of a variance. Given the amount already incurred and the inability to be made whole without the variance, the below information goes directly to the second standard regarding whether the benefit can be achieved by some method feasible for the applicant to pursue other than a variance. Because of the financial investment made to date, there is no feasible alternative to the relief requested. In addition, when weighing the granting of the variance, which will allow an existing structure to remain and will continue a use which has occurred for numerous decades, the relief is not substantial. However, the detriment to the applicant would be, therefore the scale shifts to the burden falling strongly on the applicants. Following the last meeting, we reached out to Teakwood Construction in order to determine the costs associated with the cost to convert the structure to compliant uses, including (a) cost to remove the kitchen and bathroom so the space is usable as living space, (b) cost to convert the space back to a garage, or(c) cost to connect the structure to the house. The result is significant additional economic injury than that which has already occurred in this matter. The below costs also do not take into account the additional 1 significant financial losses which occur from the inability to use the premises as advertised and as sold to the applicants. Work to be done Original investment Teakwood Estimate Total Investment and Remodeling cost prior to stop work order* Removal of bath and $59,670 + $20,000 $13,752 $93,422 kitchen Convert to Garage $59,670 + $20,000 $22,280 $101,950 Attach cottage to $59,670 + $20,000 $13,265 $99,670 home *Original Investment is cost of home divided by total sf of residence and cottage Remodeling costs are +1-$20,000. Without the area variance, the finished space is unable to benefit the property. The above information on finances demonstrates the economic infeasibility of compliance with the ordinance, which is based upon amounts already expended and cost to convert the structure to other allowable uses. It does not take into account the rental income that has already been lost due to the inability to rent this out as a separate unit, as was advertised and represented by the prior owners and realtor. This property was purchased for the specific purposes of rental as two separate units. The marketing materials and the information and advice given by the realtor demonstrate that the cottage was able to be rented and provide additional income as a separately rentable unit. A recently located promotional material provided to my client and appended to Gina's affidavit shows that the cottage was referred to as a"tiny house," not a space that was uninhabitable. It is also important to note that in the residential rental market, increased living space does not fetch the same benefit as an additional bedroom or separate unit. Certainly, a separately rentable residential unit, whether a studio or a one bedroom, provides significantly more income than additional living space. The realtor for the sale advised the applicants that the Rothsteins obtained $800 per month in rent for the cottage unit. If you add in the loss of$9600 per year in rental value for the cottage and simply multiply that over the life of the 30 year mortgage, with no allocation for increase in rent for the unit, the owners will be receiving $288,000 less in anticipated revenue over the life of the mortgage. In considering whether there are feasible alternatives, case law demonstrates that an alternative that does not allow an applicant to achieve the desired benefit is not a truly feasible alternative to obtaining an area variance. Baker v. Brownlee, 248 AD2d 527(2d Dept. 1998). Obtaining additional land from adjacent neighbors who are opposing this project is not possible, and as such, the ZBA's comments related to the existing permeability of the site cannot be feasibly or actually altered and the decision has no bearing on the existing conditions. 2 Principal Buildings on One Lot—Undesirable Change in the Neighborhood As indicated in the previous presentation, evidence was provided that this neighborhood has a significant amount of multi-family homes located on single lots as well as numerous lots which have detached garages or other structures. The existence of other multifamily homes in this neighborhood provides clear and unambiguous proof that the continuation of this use on the applicants' land does not change the character of the neighborhood where many other properties have the same condition. Some of the units are connected and some are within one lot. In determining if variance will produce a change or an impact, it is important to consider the development patterns and existing conditions in an area. Here, the area is characterized by residential homes—both single and multifamily--occurring on small lots in close proximity to adjacent neighbors. Many of the adjacent properties, as demonstrated by the aerial map, have more than one structure on their property, including detached garages, sheds and also living units. The requested variance is consistent with the pattern of development, and, in fact, has existed and been used as configured at this location for multiple decades. No additional material impacts will be caused by the granting of the variance. In fact, this ZBA recently granted additional living space in a separate structure for property located across the street. If additional living space in a separate structure is detrimental for our property but not for one across the street, the ZBA's decisions are arbitrary. The variance will not create additional material impacts on the neighborhood. The driveway is able to accommodate 3 cars, as is demonstrated by the photographs provided with this submission. In addition, the owners would agree to a condition which would restrict the number of cars for their tenants to three. The board inquired whether there were any other properties with similar lot coverage to those which exist on the instant property. While we appreciate the board's interest in this issue, the reality is that lot coverage is important for environmental reasons, such as management of stormwater. This inquiry relates to whether the proposed variance will have an adverse impact on the physical or environmental conditions in the neighborhood or district, as articulated in the 4th standard for area variances in the General City Law. The grant or denial of an area variance will not impact the percentage of lot coverage in any way, and therefore will result in no adverse change to the environment.. . The existing structures will remain as configured, regardless of the outcome. That being said, while not a comprehensive search, a quick review of the online information demonstrates other properties in the vicinity of the subject parcel which exceed the lot coverage allowed by zoning. Address Total SF of Building/Land Lot Coverage 76 Catherine Street 2412sf/6098sf 39% 41-43 East Avenue 1383sf 14356 sf 31% 82 Catherine Street _ 800 sf 12613 30.6% 104 Catherine Street 1127 sf 13484 sf 32.2% The city of Saratoga Springs has set precedent to allow properties to have more than one principal structure on one lot, and at times, has granted similar relief to that which is sought by this application. Of most recent note is the variances allowed by the ZBA for 7 principal structures on one lot at 27 Jumel Place. The lot coverage in that matter was significant, at 46%, and the variances were requested for new structures, not existing. Numerous other structures located in the Urban Residential zone have received variances for lot coverage by the Zoning Board. 3 Attached to this submission you will find an area photograph of a google satellite image from June 10, 2019 which demonstrates the density and lot coverage for a substantial portion of the UR-2 district in the area. A comparison of surrounding properties to the subject property is relevant on the standard of undesirable change in the neighborhood will be produced by the granting of the variance, whether any adverse effect or impact will be caused by the granting of the variance and the substantiality of the variance requested. The existing structures at 40 Second Street are consistent with the existing conditions, density and other present structures in the area and will not change the character of the neighborhood. Adverse Effect/Impact on Physical or Environmental Conditions This area variance standard considers "natural environmental characteristics such as drainage, flooding, and runoff; other topographical changes such as grading, trees and vegetation; and traffic." New York Zoning Law and Practice, §29:16. Because these structures have been in existence for more than 6 decades, and the applicant is not proposing any physical change to either of the structures, the proposed variances will not change or have an adverse effect or impact on the natural environmental characteristics of the lot. The impact on neighboring properties of these existing structures is not significant and will not change as a result of a positive or negative decision on the variance. Despite this, the applicant has reached out to the neighbors to request a meeting to discuss what steps could be taken to understand and accommodate any reasonable concerns they might have. However, they were advised that there was no interest in holding such a meeting. In the absence of clear directions as to neighbors' concerns, it is difficult to understand how any current occupant of the cottage would impact their properties and the impact they had from the prior occupants. Would curtains alleviate any concerns about privacy? Is vegetative screening or a fence in front of the windows a solution? As research was done regarding the property, it became clear that the property has had a difficult history. A FOIL of police records demonstrates that prior occupants of the premises required some intervention of the police to address what appeared to be domestic matters. While the current owners are sympathetic to the neighbors' concerns that the home might be used again in this way, no evidence exists that demonstrates it is likely to occur. The owners have spent significant sums to redo the interior and exterior of the property. This will increase the rental value of the property and attract high caliber tenants who have a low impact on their neighbors. In addition, the owners live within a few blocks of the property and are attentive to what occurs at the home. To the extent that any issues arise, they are easily reachable by any of the neighbors, who only have to walk down the street and knock on their door. Parking The driveway has sufficient parking for three vehicles. Second street has ample parking at all times of day and evening, as well as weekends and weekdays. The applicants attorney has driven the street specifically at various times of day and during different seasons in order to verify that parking is available on the street. The applicants have surveyed the area for parking purposes on numerous occasions and there has always been sufficient parking for one car along the street, typically directly outside the house. It is unforeseen that more than 3 cars would be present, as the home and cottage would be unlikely to accommodate more than 3 individuals of driving age. 4 Self-created hardship The facts in this case support a finding that the hardship was not self-created. However, even absent such finding, the statute confirms that self-creation is taken into consideration but does not preclude the granting of an area variance. Case law standards on this issue requires the exercise of reasonable diligence and the ability to rely on public documents. In this instance, the owners exercised reasonable diligence and had no actual or constructive knowledge that the use was illegal. Hardship is self-imposed when an applicant purchases property subject to zoning and was aware of the zoning restrictions at the time of purchase. As relates to the self-created hardship test, the case law standard if one of a prospective purchaser "exercising reasonable diligence" in the absence of actual knowledge of any zoning restrictions. Paplow v. Minsker, 43 AD2d 122 (4th Dept. 1973). "While appellant is bound to know the law, there is a reasonable limitation upon the factual knowledge of prior uses which may be constructively charged to a stranger purchasing property in good faith....Appellant bought what appeared to be a two-family house that had last been inhabited as a two-family house and had legally existed as such for over 40 years, and he bought it for the purpose of continuing that use. He had no intention of seeking a zoning change after the sale for his private advantage of for a purpose known to him to be outlawed by the Zoning Ordinance." Paplow v. Minsker, 43 AD2d 122 (4th Dept. 1973). The instant matter has facts similar to the Paplow case and it's holding should be followed. In this instance, from all outward appearances the applicants bought what appeared to be an existing, lawful two unit residential property. They bought it with the intention to continue that use. They had no intention to seek a variance or zone change for private advantage or to use the property for outlawed purposes. Additional information This application is necessary, in not an insignificant way, because of actions caused by the city of Saratoga Springs. The ZBA has an opportunity to help rectify some of the prior mistakes with the grant of a variance. Because of the unique circumstances that exist in the instant matter, a decision in favor of the variance will not create a precedent upon which others would be able to seek similar relief. Neighbors have questioned whether my clients knew the cottage was illegal when they went to contract and purchased the property. However, there is no evidence that the applicants had any prior knowledge. Based upon their written affidavits, accompanying this submission, they have sworn that there was no prior knowledge that the use of the cottage was illegal. The affidavit provides proof that their realtor never disclosed it, the sellers never disclosed it and their attorney did not determine that the use was illegal until after the closing had occurred. Multiple faults along the way occurred, but none of them were caused by my clients.Yet, without a variance, they are the only parties that suffer harm. In weighing the statutory test, the benefit to the applicants are far outweighed by any detriment to the health, safety or welfare of the community. Should the attorney have waited to receive an answer from the city before they closed on the property? Yes. But that was not within the control of my clients, who, appropriately, hired a professional to advise them and guide them through the purchase of the property. Should the owners have not hired a realtor to advise them about their prospective purchase? In the absence of either of the owners having such training, it was appropriate to hire someone to find them a rental property and to rely on the advice they were given about that property. Their realtor had both an ethical and fiduciary responsibility to tell them about the 5 outstanding violation. However, she violated those duties and did not disclose information that was pertinent to the transaction. While the MLS listing may have contained information related to the cottage, most buyers do not review that detailed information. Instead, it is common practice for realtors to search the MLS listings and then show properties to clients based on their search. Clients are often then given one page summaries, such as the one attached to the earlier submission, which highlights features of the property, but does not provide the detail found in the MLS listing. Saratoga Springs has many houses that have carriage houses on the property used for additional living space. Some are legal and some are illegal. Absent significant knowledge of local zoning, most lay people do not make this distinction. This is readily evident in the number of recent violations and applications before the ZBA to get these outstanding issues resolved. As such, there was no reason to believe that the cottage was not allowed to be used as it was advertised, had been previously used and as it was configured when they toured the property. The owners, in good faith, purchased an income property that needed a great deal of work with the intent to invest in the property to make it more attractive and then rent out the residence and the cottage. The owners invested significant sums in updating the properties, inside and out. They transformed the two units from an older, dated house and cottage and made them both into warm and inviting spaces. Not only did those improvements allow them to charge more for the rentals, but they also added significant value to the neighborhood by tending to the exterior of the properties. One of the first things they did was to repair the cracked and defective sidewalk in front of their house in order to create a safe space for pedestrians in the front of the property. With the granting of this variance, the owners are committed to continue to use the space and upkeep the property in a responsible and responsive manner in order to be beneficial to the adjacent property owners and to protect the significant investment they have made in the property. Finally, it is clear that the City of Saratoga Springs had some responsibility for this circumstance and has documented this fully within their own files. The facts and evidence demonstrate city was aware of this illegal conversion since at least 2001 when they contacted the prior owners regarding the illegal use. The city revisited this issue in 2015, but again failed to follow through with a violation or enforcement of the code. In 2017, the city failed to flag this property once they learned it was on the market from inquiries from two separate realtors. Finally, the city failed to promptly respond to the inquiry of the applicants attorney seeking information on any code violations for the property. This variance application provides the ZBA with a rare opportunity to correct the city's mistakes. 6 ' J�F. �i t�� a :''�a -,e rr [. a ti • �«/ t �• i 4 �7� ,{�1 iR g` • ,.•r' v ,—itic., . - Z 4 ��,;Yri •i `• `' .- .. ,- •i', a live''' • • ! r' .74'w4. } 1#.t h ,Fj ii,• ,;,.•-, rz•'. `.� k ,..t..,... ,ffil [ i. �,�• , - 1, -...• 1 '.' -a��...1.:111,0k,„ '.�.. .'�>l. i. 4; -',�.•►� i,�"y,• �'� i •i1ir 1 Ali ,... '' 1M igjit, -,Jub. r1-7 F 1 It:ea All$;.111.*.4i --, iise.- , :,-,,,--. . ,.'—i----- --..\- " , .-. '..' 1: '''Yitivtf.?NI A ' - . • -. 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I., . .No- -t• ,...*. -,._, . .•_ .-$ . -' - - r-, - '. i -,A fr V-' , , ..' . 1 - .7.: =,, 7,--,1..., •,c7:::`,.,.,',,,i. '''..,.. .r..1 •trft:;.„--- -.-11- . :. • - r ...'14 -...,1., .,.., .. •, • ..,4, ' 1. .. .....'.' ' • _�..+r" •'� - ' -d �.li.. .,td, ? t ; ....'— _ ,,..�mpi -- �. -v t^ .. - i LJ CITY OF SARATOGA SPRINGS ZONING BOARD OF APPEALS In the Matter of the Application for an Appeal of the Denial of the Building Inspector Regarding Area Variance by: Application No.: 20190029 VAL-KILL RESIDENCE, 40 Second Street, Saratoga Springs,NY STATE OF NEW YORK } )ss: COUNTY OF SARATOGA ) GINA PECA, being duly sworn, hereby deposes and says: 1. I am a member of Val-Kill Properties North LLC, a limited liability corporation formed in the State of New York, and the owner of property located at 40 Second Street in the City of Saratoga Springs, State of New York. 2. Christopher Rose and I, as the two members of Val-Kill Properties North LLC, purchased the property located at 40 Second Street, Saratoga Springs,NY in on August 1, 2017 as an investment property. The property was listed as three bedroom house with a separate structure that could be used for additional rental space with a variety of uses—both business or residential —as office space or an in-law space. This was listed in two separate promotional materials. 3. While I was preparing this affidavit, I located the attached additional promotional material which is attached to this and made a part hereof as Exhibit A. As you can see from the within, our realtor characterized the cottage as a "Tiny House." This provides additional documentation of the verbal representations which were made to us at the time we were viewing properties for investment. Clearly, this, in combination with the city's records of discussion with 1 her advising the homes were illegal, demonstrates that our realtor was "selling"us something she knew could not be used legally. 4. When we went to view the property, the cottage contained a full kitchen with appliances, a full bath, including a shower, and living space on the main floor, with a loft which was accessed by a ladder. We were told that the cottage had been recently rented out by the current owners. 5. When we inquired about the use of the cottage, the realtor Leslie Rafaniello of Miranda Realty—who was both the listing agent for the property and our realtor- advised that the owners of the property had rented out the cottage and received$800.00 per month from the rental. She further advised that the owners' mother had lived in the space for a period of time. 6. Given that we were searching for rental property to provide us with a steam of income,the additional rental income from the separate structure made this property more attractive than others we were evaluating. We were seeking a rental property that would provide us with additional income because,being in our 50's,we wanted to create additional income for retirement purposes. When making a decision about which property to invest in, the overall analysis hinged on our ability to generate sufficient income to pay for the property and any improvements as well as provide us with additional income. Even though the house on Second Street was in need of many repairs, we liked the idea of it being in our neighborhood where we could immediately respond if our tenants had any issues. We wanted to contribute to the upgrading of our neighborhood by purchasing a house in disrepair and making it a beneficial asset to those around us. Instead, we are currently losing money on a monthly basis, despite the rental of the main residence. Z 7. We made an offer on the house originally in late March 2017, but it was rejected because we were unwilling to go above the price of$240,000. Although the house is in a good location, we knew it would need a great deal of work. A few months after our offer was rejected, the realtor approached us and told us that a previous offer had fallen through for lack of financing. We eventually had a viable acceptance of a new offer on June 14, 2017. After the problems began with the stop work order when we were making some changes to the cottage, we did research into the property with a Freedom of Information Law (FOIL) request to the city of Saratoga Springs planning department and discovered the following had happened between the time when our initial offer was rejected and when the offer was accepted: a. On April 5,2017, Laura Rong,a realtor,called the city and was told the cottage was an illegal dwelling. b. On April 11, 2017, our realtor, Leslie Rafaniello, called the city and was also told the cottage was an illegal use. c. The file notes show two different handwritten notes regarding the above discussions, showing that two different staff members logged the calls and were aware that (1) the property was listed for sale and that the listing included the illegal space's use as "garage with in law/home office" and (2)it had an illegal structure on it. d. The call log also showed the history of the violation,including(1) a letter with no action in 2001 and (2) that the owners came to work with Susan Barden in 2015, but no action has been taken and no resolution has occurred. 8. At the time of the purchase, I was aware that the property was being used for residential purposes. I did not make inquiry into the zoning, as the area appeared to be mostly 3 residential. When the purchase occurred, there was a cottage on the same lot that was advertised for use for an in-law apartment, art studio with loft or a home office. 9. When we were searching for properties, we liked the house on Second Street because we felt that the location was good and the fact that it had three bedrooms, a driveway and an additional living space in the cottage, made it very desirable. Other properties that we looked at did not have the same space or structure and were in such a state of disrepair that we couldn't take on the project. 10. When we found this specific property, our realtor showed us two pieces of promotional material, both of which described the cottage as suitable for home office, art studio or in-law space. She confirmed that the property had been recently rented and the monthly income the rental generated. Ms. Rafaniello never told us that the cottage was not legal. In fact, she told us that we could rent it out as a separate apartment or use it as a fourth bedroom, or in the alternative, turn it back into the garage. We reviewed the properties based primarily on price, but also on the state of the properties when we were walking through them. We did not go to the city to investigate the property and we rightfully relied on our attorney and realtor to delve into the details and inform us of any problems. We did not pay attention to the minor details of the MLS listing or the contract to purchase, as those roles were filled by the professionals we hired—both a realtor and as attorney. 11. Despite our reliance on our realtor's expertise and guidance, we later discovered that she knew about the illegal use on the property, as documented by her call to the city. She never disclosed this information to us, which is a violation of her fiduciary and ethical obligations to us as her clients. She knew we were interested in using the cottage for rental purposes because we 4 constructed. we have learned that our property has eight percent (S%) more lot coverage than is currently allowed by the zoning in place now, but we have no plans to make any changes to the lot coverage or the structures as they presently exist. 16. Prior to our purchase of the property, we were not aware that the cottage was unable to be used. we believe that multiple failures of individuals other than ourselves have caused the circumstances we find ourselves in, seeking a variance to allow the property to be used as we reasonably believe it was able to be used. These failures include the following: a. original owner's illegal conversion of the cottage to living space. b. Rothstein's failure to work with the city to cure the violation. c. Rothstein's failure to disclose the illegal use. d. Realtor Leslie Rafaniello's failure to disclose the use of the property and information obtained from the city of Saratoga Springs about the cottage's illegal use. e. Failure of city of Saratoga Springs to proceed with enforcement or cure of violation from 2001 and again in 2015. f. Failure of closing attorney to obtain the information regarding the code violation from the city prior to closing. g. City of Saratoga Springs' six week delay in response to the closing attorney related to whether any violations existed on the property. h. Failure of closing attorney to advise of the response from the city at the time it was received and before significant investment was made into the interior of the cottage. i. Failure of the city to notify us immediately when they first inspected the cottage, instead of allowing us to work on it for approximately another 10 days resulting in a significant investment of time and money on our part. 17. once we purchased the property, we immediately began work to make improvements and update it so we could rent the space. we repaired the sidewalk in front of the house, repaired 17 broken windows, painted the house and cottage, and put in new cabinets, light fixtures and flooring in the kitchen and replaced the toilet, sink and shower in the bathroom. we wanted a house that would be an asset to the neighborhood, not an eyesore as it was when we purchased it. Almost two months after purchase and after significant sums had been used to fund the rehabilitation of the interior of the cottage, John Barney from the city building department came to 40 Second Street to investigate what work was being done and to inquire if there was a valid building permit. when he spoke with our construction team, they advised him that the work they were doing did not require a permit. He inspected the interior of the space and what they were working on in the cottage, agreed with them that the work did not require a building permit, and left the site. At this point in time, significant work was being done in the cottage on a daily basis, including installing new cabinets and light fixtures, painting of the entire interior, new flooring, new toilet and vanity and new kitchen appliances. We continued to incur costs for the workers and materials and relied on John's assessment of the situation and approval to continue work. 18. A week passed, and on September 25, 2017, Jim Herkel of the city code enforcement office arrived at the property and advised the workers that they had to stop work. they were doing in the cottage. Jim went to his car, likely to make a call to the city, and when he returned a few minutes later, advised the workers that they could continue to work. 19. on September 27, 2017, a stop work order was issued for the cottage. 7 20. As you can imagine, we were very concerned with the stop work order and the long term ramifications of purchasing a property for use as rental, only to be shut down when we had expended significant sums in order to update the space. At the time of the stop work order, in addition to the purchase of the property, we specifically spent more than $20,000 in labor, appliances, fixtures and materials for the space. we cannot recoup those losses, absent the granting of the variance. The space has been tastefully updated into a small unit that would be ideal for a single person to live in. 21. Following the issuance of the stop work order, we filed a FOIL request to determine what the history of the property had been and to understand why the stop work order was issued. We found a history of the prior owners failing to cure the violation and the city failing to enforce the violation. This history is detailed more fully in the narrative which accompanied our original application for an area variance. Those details are made a part of this affidavit as if fully set forth herein. 22. Despite the fact that multiple failures occurred, by the city, the prior owners, by the realtors and our closing attorney, we are the only ones who are suffering any loss related to others' missteps. 23. The only way to make us whole in this transaction and cure the financial hardship that exists would be to grant the variance to allow the space to be used and rented. 24. It is curious to me that there is neighborhood opposition to what we are doing. The neighbors have admitted that the modifications we have made to update the property have been beneficial. There is no dispute that a significant portion of the properties surrounding ours contain multifamily homes, which negates the concern that we would be causing an undesirable change in the neighborhood. Having one small property which has been in existence for approximately 70 �� years continue to be used for rental will not have any impact on a neighborhood that contains both single and multifamily use. In fact, given the updates to the cottage and the rental price point, the space would be attractive to young professionals, as an in-law apartment to the existing residence or for a single working tenant. At present, we have an engineer and a Skidmore professor renting the house. 25. Given my review of the police records relating to the property, this would be an improvement on how the space was used in the past when the city was not pursuing enforcement and issues with the tenants of the house and cottage existed. I understand the neighbors were not happy with what reportedly transpired over the years in the cottage, but I take exception to the neighbors attributing motives to us that have no basis in fact. Those issues relate to prior ownership and use of the house, not our present ownership and intent. It is difficult to be vilified for trying to do something good for the neighborhood. we had no idea of the history of this structure. The neighbors did, but unfortunately chose not to share that information with us candidly or to report the issues to the city before we purchased the property. The city knew about the illegal activities at the site, both the criminal issues and the use of the structure, but chose not take action, for which we are being harmed. The neighbors have not held the city responsible or sought enforcement prior to our ownership. WHEREFORE, I submit this affidavit as evidence of the statements herein and request the Zoning Board of Appeals grant the variance for this use. Sworn to before me this day of June, 2019 Gina Peca, member Val -Dill Properties North, LLC STEPHANIE W. FERRADI o�C Nott' P ubllcw Stats of N Na, OI FE5DQ7939 y Qualiti din Saratv9a eQ B mmisstle Expires tic 9 Exhibit A d 'arato:,T 40 Secon St 6 ,,-,a Sprh$-i'lgS, NTY 12 c --)'6 0' i �n LA 74 u P0. , RATOG", A S P 'R' i: N G si. TR E DEL. ap. 0.'! 4.=�- -11 R LJ 17: Ta I P N2 - FO -OOP Alo LE W'Jum 12 r- lqj,.N f an 'le Fac 6�1,141 rr-- Z'.12 2 0 -1 br-i W3f, 14 t� r! I V P r,, P;i,"1 ���,.! �. - per.- - - - ...�,.� ., FLS? PA, c r -I IN C, L31'11JD- mood I N TIF-Uc i �n LA 74 u P0. , RATOG", A S P 'R' i: N G si. TR E DEL. ap. 0.'! 4.=�- -11 R LJ 17: Ta I P N2 - FO -OOP Alo LE W'Jum 12 r- lqj,.N f an 'le Fac 6�1,141 rr-- Z'.12 2 0 -1 br-i W3f, 14 CITY OF SA.RATOGA SPRINGS ZONING BOARD OF APPEALS In the Matter of the Application for an Appeal of the Denial of the Building Inspector Regarding Area Variance by: Application No.: 20190029 VAL-DILL RESIDENCE, 40 Second Street, Saratoga Springs, NY STATE OF NEW YORK ) )ss: COUNTY OF SARATOGA ) CHRISTOPHER ROSE, being duly sworn, hereby deposes and says: 1. I am a member of Val -Kill Properties North LLC, a limited liability corporation formed in the State of New York, and the owner of property located at 40 Second Street in the City of Saratoga Springs, State of New York. 2. Gina Peca and I, as the two members of Val -Dill Properties North LLC, purchased the property located at 40 Second Street, Saratoga Springs, NY in on August 1, 2017 as an investment property. 3. Prior to approaching the ZBA seeking an area variance and after receiving the stop work order, we had many discussions and meetings with city officials pertaining to the cottage, including the Mayor and City Attorney. we were trying to ascertain how the city could let a situation like this occur and how best to work with the city to resolve it. At every meeting, the participants expressed regret that we were having to go through this situation that had not been caused by us. 4. On May 9, 2018, 1 met with John Barney and Tony Izzo. we discussed possible solutions to the problem, such as attaching the cottage to the main house, creating one structure. I also offered a restrictive covenant whereby we would not rent the cottage separately from the main house and that we would not use the property for purposes of an Airbnb. These had both been concerns expressed by the city to us. 5. Based on our discussions with the city, there was no explanation as to why the city had not taken action to enforce the violation in 2001 when they sent the first letter to the previous owners or more recently in 2015 when they started the process again. Tony Izzo's response to me was that the city can enforce or not enforce its laws when they want to which is the direct opposite of what is written in the city code Enforcement handbook and the NY State Enforcement Handbook. 6. We were initially told that we could connect the structures so just one primary structure existed. However, several days after the meeting we were told that this was not possible. From the beginning of the discussions, Susan Barden advised that if we agreed to take out the shower and the stove, the ZBA may approve our request. 7. on May 24, 2018 I met with Mayor Meg Felly, Susan Barden, John Daley and John Barney. During the meeting, all expressed regret that we had to go through this, but they advised us that they could not offer any sort of compromise. S. On June 4, 2018, I met with Tony Izzo, Susan Barden, John Barney and Jack Donnelly. We met again because Tony Izzo wanted to explore how a covenant could work. Although we tried to reach some sort of compromise whereby we offered a restrictive covenant regarding restricting the use of the cottage to the occupants of the house, there was a concern that the city officials in the room did not have the power to agree to this and we would need to go to the ZBA. 9. Because the discussions were unable to be resolved with an agreement with the city, it became necessary to engage an attorney and obtain a survey in order to file an area variance application with the Zoning Board. 10. It is also worth noting that while we did not create this situation, and the city failed to enforce it with the prior owners, the city has taken us to court over the violations. This seems an unfortunate, embarrassing and unnecessary act, especially given how the situation arose and our lack of culpability in any of the actions which brought about the problem. 11. when it was mentioned during the 1" ZBA meeting by a neighbor that there had been criminal activity in the cottage over the years, I filed a Freedom of Information Law (FOIL) request with the police department. I received 4 and % pages of incidents dating back to 1997, which is as far back as the police were able to search. The city had actual knowledge of illegal activity in the structure but chose to do nothing for 20+ years. Now, suddenly we have been held responsible for a problem we did not have any role in creating. 1 2. we are reliable and responsive owners of the house who just wish to use the space in the cottage as additional living space. we have no desire to rent it out using Airbnb or to do short --term rentals. This is our neighborhood and it is our intent to foster the beneficial use and upkeep of the home without any detrimental impact on our neighbors. 13. Because of the situation that was created, in part, by the city's failure to enforce the violations with the prior owners for almost Zo years, we sought to find a way to work together to resolve the issue. we even went so far as to offer the city a restrictive covenant that the Cottage would only be used by those renting or living in the main house. Since this issue has occurred, we have learned that there is high demand for additional, but separate, living space within one family unit. The demand arises from an increase in potential tenants caring for aging parents or for parents who have college age children residing with them after school. 14. We also offered to connect the two (2) structures at our own expense so there would just be one principal residence. while ideally the cottage would be rented as a separate unit which would generate additional rental income, we have offered these concessions to allow us to get some benefit from what we thought we had purchased and the later investments that we have made. 15. We continue to be open to finding a solution to this issue with the city through our application to the Zoning Board of Appeals and would welcome some dialogue which could create a path for allowing us to use the space as it is configured, while keeping the impact of the space low on adjacent properties. WHEREFORE, I submit this affidavit as evidence of the statements herein and request the Zoning Board of Appeals consider the information contained herein as relates to our request for a variance for this property. .......................... ......... . . Q446'pher Rose, member Val -Kill Properties North, LLC Sworn to before me this day of June, 2019 STEPHANIE W. FERRADINO Notary Public, State of New York No. U1 FE5067939 Qualified in Saratoga County Commission Expires October 23, 620,1 Notary Public CITY of SARA.TOGA SPRINGS ZONING BOARD of APPEALS In the Matter of the Application for an Appeal of the Denial of the Building Inspector Regarding Area Variance by: Application No.: 20190029 VAL-KILL RESIDENCE, 40 Second Street, Saratoga Springs, NY STATE OF NEW YORK ) )ss -9 COUNTY OF SAR.ATOGA ) WA.YNE PERRAS, being duly sworn, hereby deposes and says: I. I am a licensed real estate broker for Keller Williams Capital District Realty. I have been a licensed sales person for 31 years and licensed associate broker since 1996 and have practiced in Saratoga Springs during the entirety of my career. 2. I was asked to provide input related to the calculation of value as relates to the second rental unit located at 40 Second Street in Saratoga Springs, NY. 3. I have reviewed two documents submitted with the application to the Zoning Board of Appeals. one appears to be a real estate brochure/fact sheet which was prepared by Miranda Real Estate Group and the other was from the buyer's version of the MLS which does not reveal certain details about the house. 4. In my experience, potential buyers often review these types of materials rather than the more detailed MLS listing information. In fact, it is unusual for potential buyers to ask for and review the MLS listing in detail. Instead, these type of materials provide an overview of the property highlights with the key information most buyers are seeking. 5 . Based on the information I was asked to review, it appears that the garage was being represented as additional space to be used for multiple purposes, either as an additional space for an apartment/separate Irving space, a home office or a studio. 6. Two -unit usage was clearly suggested and implied in the remarks of these materials. As such, it was reasonable for the purchasers to expect and rely on the information provided by their agent that the property could be used in that way. 7. The advertisements for the property also highlighted the investment potential of this listing and appeared to be directed toward investors. 8. If the garage space was represented as a potential rental unit, the loss of value to the new owners of not being able to use that unit is estimated at between $60,000 to $100,000 depending on the method of calculation. 9. It is my understanding that this unit was anticipated to, and represented as, being able to bring in approximately $800 in monthly income as a yearly rental unit. That seems a reasonable amount given the location and size of the rental. This would have produced approximately $10,000 in revenue per year. over a ten-year investor period of time, that would result in at least $100,000 in lost revenue. Given that the cost of rentals in Saratoga Springs continues to increase and demand for quality rental space is high, that figure would likely be significantly increased over a ten year period of time. 10. If the owners were able to use the additional space for seasonal (track) rental or AirBNB, additional revenue would be anticipated and possible. 11. Calculated another way, conservatively speaking, an auxiliary building located on a slab would have been worth approximately $170 per square foot of space in 2017. Two years' later, in 2019, a standard square footage value of $200 would be the norm for a fixer upper. Without the basement and because this building is located on a slab, a slight discount in square footage value would be reasonable. 12. If we calculate the loss based on square footage, the loss of value is predicated on a square footage figure of the separate unit which is +1- 3 5 osf which should be multiplied by $170/per square foot. This results in approximately $60,000 in lost value and is a conservative estimate. To put this in perspective with 2019 values, a standard square footage of $200/sf for a property characterized as a "fixer upper" would be the norm currently. 13. The losses to the now owners of 40 Second Street are significant if their offer was based upon the viability and legality of the rental of the second unit. Given the improvements that were made shortly after the purchase of the property, it appears clear that they intended to rent this additional unit. WHEREFORE, I submit this affidavit as evidence of the statements herein and request the Zoning Board of Appeals consider the information contained herein as relates to the request for an area variance for property located at 40 Second Street in Saratoga Springs. Sworn to before me this day of June, 2019 Notary Public WAYNE VMERKAS, associate broker STEPHANIE W. FERRADINO Notary Public, State of New York No. 01 F E5067939 Qualified in Saratoga County Commission Expires October 28, 24 2YI- Ik 0 fjQ e od LUXURY BUILDING & REMODELING 75 Church Street -Saratoga Springs, NY 12866 - 518.587.2880 -Fax 518.587.2855 - W W w.T E A K W O O D B U I L D E R S. C o M June 51 2419 Gina Peca 67 Catherine Street Saratoga Springs, NY 12866 Re: WORK SCOPE AND PRICING OPTIONS FOR DETACHED STRUCTURE 67 Catherine St Gina: Thank you for reaching out to Teakwood Builders in regards to partnering with you to complete modifications to the detached structure at your home address. Work scopes with accompanying budget quotes are provided for your reference. Please feel free to contact me with any questions. Regards, Thad Smith Project Planner PROJECT DESCRIPTIONS AND PROPOSED BUDGETS 1. Remove the kitchen and bathroom Take out appliances and cupboards. Remove shower, sink and toilet and close plumbing connections Repair flooring where cabinets were 5heetrock walls where appliances and cupboards were Change light fixtures Paint entire interior Remove windows — or at least large window Remove loft Remove walls for bathroom Replace bathroom flooring so it matches the rest of the unit Proposed Budget: $13,752.00 2. Convert to a garage Remove all interior — cabinets, walls, flooring, bathroom, appliances Bring it down to studs Replace sheetrock Replace flooring with something like concrete Make garage doors workable again Remove plumbing and electricity Proposed Budget: $22,280.00 3. Attach cottage to house Create covered walkway from back of house to the side door of the cottage • Concrete walkway • Frame roof structure • Asphalt shingle roof • Trim paint columns and fascia Proposed Budget: $13,265.00 2 of 2 PCca Rcsidcnce