At the conclusion of the Lauren Condominium Association’s Annual Meeting, owners who wished to remain met with the Lauren C-of-O Normalization Committee. The Committee is an independent group of Lauren owners. It was not appointed by the Board and does not represent the Board.

Representing the Committee, Dr. Brian Larkin, Mike Silverstein and Dr. John Doolittle addressed the Certificate of Occupancy issue. Dr. Larkin explained that On February 8, 2000, the Dupont Circle Advisory Neighborhood Commission (ANC2B) passed a policy that would support the BZA (Board of Zoning Adjustment) in awarding the rights to use Lauren units for non-residential purposes exclusively to the 1^st and 2^nd floors. The effect of this policy would deny any chance to compete for the assumed financial benefits of such usage to the 80 percent of Lauren owners who units are on floors 3 through 10. Many owners felt this policy would be fundamentally unfair, and would have negative quality of life and governance implications as well.

ANC2B Commissioner Vincent Micone III

By law, the BZA places great weight on the recommendations of the ANC. Dr. Larkin reported that he and a group of owners met with ANC2B Commissioner Vincent Micone III to see what options might be available.

1. The ANC 2B is committed to maintaining the residential nature of the Dupont Circle neighborhood including The Lauren Condominium.

2. The maximum number of Lauren units that his ANC would allow to be used for nonresidential purposes was some number smaller—and preferably much smaller—than 20 percent which is mentioned in one of the Lauren founding documents.

3. His ANC generally favors limiting nonresidential usage to first and second floors, although he did agree that he was not necessarily committed to this arrangement, and suggested that some other arrangement might be possible.

4. The ANC would give very heavy weight to the Lauren Board’s wishes as to C-of-Os in the Lauren.

The Silverstein Proposal

Mike Silverstein explained a proposal the Committee has developed with and discussed with the ANC. The entire first floor would be for businesses and every other floor could have up to three businesses. Only the first floor currently has more than three businesses. However, Dr. Larkin reported that new information was discovered this afternoon that indicates that there are actually four businesses on the second floor. Dr. John Doolittle said, "It is crucial that every owner in the building be treated equitably."

The C-of-O Plan and Petition -- 5 to 1 in Favor

Dr. Larkin reported that the Committee had sent a copy of the Silverstein Plan and a Petition to every Lauren owner. While returns are still coming back, he said, the results are overwhelmingly support the proposal by a ratio of at least 5 to 1. Of those who gave a reason for opposing the proposal, most oppose any limitation at all on the number of units that might be used for businesses purposes. Also, two were from owners of second floor units. Tonight’s meeting, he said, is to give owners a chance to further discuss the issue.

"Certificates of Occupancy" and "Special Exceptions."

It was explained that certain professional businesses are permitted under SP-2 zoning (which applies to the Lauren). In order to operate a professional business in The Lauren two things are necessary. One is a zoning variance known as a Special Exception. A Special Exception is granted to a piece of property as a zoning condition for its use. That zoning condition remains permanently in effect thereafter. The second is a Certificate of Occupancy, which is a city permit to operate a specific business.

A question was asked about C-of-Os and whether they are transferable. Joe Douglass, the Association’s attorney explained that the C-of-O is granted to an occupant. If the occupant leaves the C-of-O is not transferred to the new occupant. Joe Douglass further explained that a Special Exception is needed to get a C-of-O. According to Mr. Douglass, Special Exceptions are fairly specific as to the type of business that can be operated in the unit.

Equity, Quality of Life and Governance Issues

Equity. Dr. Larkin summarized the equity issue with a metaphor. The odds of any given Lauren owner being able to either get a professional office C-of-O or selling to someone for that purpose are very long. But so are the odds on the state lottery. But no one would like to be told that he or she is not eligible to participate because he or she owns a unit on the wrong floor, while those who own on the right floor are almost 100 percent guaranteed winners.

Residential Quality of Life. A number of people expressed concern about having a 2^nd floor with mainly businesses, which are empty at night and on weekends. They would far prefer, they said, to have business scattered evenly throughout the building. Dr. Larkin recounted a retired resident who told him she likes to have businesses around during the day when everyone else is off working. It made her feel more secure, he reported.

Governance. Owners of units on the first two floors would be seen as winners while the other 80 percent of owners would be likely to view themselves as losers.

Other Issues and Questions

Certificate of Occupancy Cost. Dr. Marilyn Schwartz pointed out that getting a Special Exception and a C-of-O is a lengthy, time consuming and expensive procedure that can easily take 6 to 12 months a cost at least $10,000.

Enforcement Mechanism? Nathalie Peters, Joe Morris, and others asked about how the Board would handle the process as well as what would happen if multiple applicants appeared at the same time. Dr. Larkin explained that the business have to apply to the ANC/BZA which assigns each a case number. Under the proposed plan, the ANC would check with the Board to see if the application falls within the ANC-Board aggrement.11

Do We Want Any Businesses at All? One owner asked if it is an assumption that a majority of the residents are happy with the idea of having three businesses on a floor. Dr. Larkin pointed out that there are a variety of views as to whether businesses are welcomed in the building

Why Is the First Floor All Business? - Would it not be more equitable to allocate the 20 percent across all floors? Dr. Larkin pointed out the first floor is already all businesses except for one unit. He also explained the difficulty that the previous owner of a premium unit had trying to sell the unit for residential use. It ended up after over a year on the market being bought by a resident with a home office business and a Home Office Business Permit.

What Happens Next

Mr. Glazer asked what will happen if the membership does not back the Committee and its proposal. Dr. Larkin responded that he would advise Commissioner Micone that he was not able to get sufficient backing and that the ANC is free to act as it chooses.

David Lilling—owner of a 2^nd floor unit—pointed out that the owners have a decision to make – whether to support the policy or not. If the owners do not support the policy and the ANC goes with its policy it is shame on the owners.

Jan Schneider suggested that perhaps a meeting be held where Commissioner Micone and others involved could address the owners and allow owners to hear and participate directly in a discussion. Ms. Schneider also pointed out that perhaps a study should be done on condo fees and tax equity issues between residents and business.

An owner advised against having any dealings with the ANC because they are advisory and because they change membership over time. Therefore, he claimed, they change their positions and the Lauren should have nothing to do with them.

One owner pointed out that this is an attempt at some equity and that if we are able to influence the ANC it may make it easier for the Association members to influence the ANC is the future to modify or change the policy.

Dr. VanderPutten concluded with a reminder to owners that they might write and interact directly with the ANC with their opinion.