Scottish Rite Cathedral v. City of L.A.

67 Cal.Rptr.3d 207

156 Cal.App.4th 108

SCOTTISH RITE CATHEDRAL ASSOCIATION OF LOS ANGELES et al., Plaintiffs and Appellants, v. The CITY OF LOS ANGELES et al., Defendants and Respondents Windsor Square Association, Intervener and Respondent.

No. B194230.

Court of Appeal, Second District, Division 7.

October 3, 2007.

Roger Jon Diamond and Roman P. Storzer for Plaintiffs and Appellants.

Rockard J. Delgadillo, City Attorney, Jeri L. Burge, Assistant City Attorney, and Tayo A. Popoola, Deputy City Attorney, for Defendants and Respondents.

Brandt-Hawley Law Group, Susan Brandt-Hawley, Glen Ellen, and Paige J. Swartley for Intervener and Respondent.

PERLUSS, P.J.

The Scottish Rite Cathedral Association of Los Angeles (SRCALA), a nonprofit mutual benefit corporation that built and owns the Scottish Rite Cathedral (Cathedral) located in the mid-Wilshire district of Los Angeles, and a private entity named Los Angeles Scottish Rite Center, LLC (LASRC), which currently operates the Cathedral under a lease with SRCALA, appeal from the denial of their petition for writ of administrative mandamus challenging the City of Los Angeles's revocation of the Cathedral's certificate of occupancy, an action that bars the use of the Cathedral for any purpose unless a new certificate of occupancy is granted. SRCALA and LASRC contend the City's actions impermissibly burdened the exercise of their religious beliefs in violation of the Religious Land Use and Institutionalized Persons Act of 2000, title 42 United States Code section 2000cc et seq. (RLUIPA). We affirm.

FACTUAL AND PROCEDURAL BACKGROUND

1. The Scottish Rite Cathedral

Between 1958 and 1959 SRCALA sought and received a zoning change, a variance and a building permit to allow the construction of a four-story Masonic temple and parking lot on a parcel on Wilshire Boulevard bordering the affluent residential neighborhood of Hancock Park. In January 1963 the City issued a certificate of occupancy for the new Cathedral, which housed an auditorium with a capacity of 2,020 persons, an assembly room with an occupancy of 1,880 persons, a dining room accommodating 860 persons and several small class and lodge rooms. According to the City's planning file,¹ representatives of SRCALA had pledged during the quest for City approval the building would not be rented out or used for commercial purposes. Based on SRCALA's representations that only charitable and nonprofit organizations would use the facility, the City approved the project with only 259 parking spaces, about half of the parking that would have been required for commercial use.

From its inception SRCALA allowed nonprofit religious and community organizations to lease the premises for non-Masonic events.² The building was also leased to a handful of businesses, film production companies and individuals for private functions. In the late 1970's, as membership began to decline, it became necessary for SRCALA to fund its operations by increasing income from rentals to both commercial and nonprofit organizations. Predictably, increased rentals intensified parking-related impacts on the surrounding neighborhood and generated an increase in complaints. In 1979 the City's Department of Building and Safety confirmed the absence of any existing limitations on rental of the building to nonprofit organizations or private parties affiliated with the Masons, but noted any accessory use of the building as an auditorium for commercial purposes would require SRCALA to obtain a variance.³ Notwithstanding these clear limitations SRCALA continued to lease the building for commercial events.⁴ During the 1980's the City issued two citations to SRCALA for zoning violations based on improper use of the Cathedral.

2. The 1993 Nuisance Abatement Proceedings

In 1993 the City initiated public nuisance abatement proceedings after receiving "numerous letters and statements" citing the Cathedral as "a frequent source of [parking, noise, and trash] problems for the residents of the attractive, well-maintained, residential estate neighborhood surrounding the property." After a public hearing an associate zoning administrator for the City concluded the Cathedral constituted a public nuisance and imposed conditions of use on its continued operation, including a prohibition on use of the property "for any purpose other than for nonprofit activities directly related to the purpose and function of the Scottish Rite Masonic Temple." The Board of Zoning Appeals conducted two additional hearings and subsequently denied SRCALA's appeal, affirming the finding of public nuisance and modifying slightly the conditions imposed by the zoning administrator to allow use by certain "bona-fide nonprofit non-Masonic organizations." SRCALA's appeal to the City Council was denied, and the Mayor approved the Council's action in December 1993.

SRCALA did not seek an administrative writ of mandamus or otherwise challenge the City's action and, concluding it could not financially operate the Cathedral under the conditions imposed by the City, ceased operations shortly after the City's action and closed the building.

3. The 2003 Nuisance Abatement Proceedings

The Cathedral was shuttered for nearly 10 years. In 2002 SRCALA entered into a long-term lease allowing a newly formed limited liability company, LASRC, to open and operate the Cathedral. LASRC refurbished the facility and began hosting events later that year. In promoting the building LASRC referred to the Cathedral variously as the Wilshire Windsor Pavilion, the Wilshire International Pavilion, the International Cultural Center and the Scottish Rite Temple. One of the first major events hosted by LASRC at the Cathedral celebrated the opening of the American Heritage Masonic Museum,⁵ but LASRC simultaneously publicized its intention to rent the building for public use of its theater and banquet facility.

In July 2003 in response to renewed neighborhood complaints, the City initiated a review of LASRC's compliance with the conditions imposed in 1993. A staff report disclosed LASRC was not only operating in violation of the 1993 conditions but also had been cited for its failure to obtain necessary business tax certificates or police and fire permits. A public hearing on July 17, 2003 confirmed LASRC's failure to comply with the 1993 conditions and its admission that renting out of the auditorium was necessary to generate income for maintenance of the facility. In a report issued on January 17, 2004 the zoning administrator substantially retained the limitations imposed in 1993 but tightened two principal conditions related to use of the building and parking. The first barred use of the Cathedral by non-Masonic organizations, even if the purpose was philanthropic or religious in nature. The second modification barred the Cathedral from charging fees for parking and required the lot be operated as a free parking facility for persons attending functions at the Cathedral. Concluding, the zoning administrator stated, "The basic problem with this facility is that it was established as a masonic lodge use with parking requirements based accordingly.... Over time the use of the property has been illegally expanded to include a[n] entertainment venue with parking demands greatly exceeding [those] originally provided.... [¶] ... It may well be that given the nature of the facility and its proximity to a fully developed single family area, the use of the subject property as a nonprofit lodge is no longer appropriate."

After additional public hearings, the City Council voted to adopt the findings of the zoning administrator; on April 21, 2004 the Mayor concurred.

4. The Revocation Proceedings

Despite the City's action, LASRC continued its practice of renting the Cathedral to non-Masonic organizations. Although some of the events appeared to be religiously oriented, most fell into the category of performance entertainment.⁶ On June 29, 2004 the City's Department of Building and Safety issued an order to comply with the 2004 conditions finalized in April 2004. Complaints from neighbors continued. In February 2005 the Department of Building and Safety was informed that a boxing match was being advertised by LASRC on TicketMaster, a for-profit ticket agency, again in violation of the conditions of use. The professional boxing match took place as advertised, and two City inspectors attended the event. They confirmed tickets had been purchased through TicketMaster and observed alcohol being sold without the required conditional use permit.

On March 22, 2005 the zoning administrator conducted a public hearing to review "compliance with conditions previously imposed by the City Council." The zoning administrator concluded the Cathedral "continues to operate in violation of conditions imposed ... and has been and continues to be a public nuisance." More specifically, the zoning administrator found, "The owner or operator has failed to demonstrate, to the satisfaction of the Director, the willingness or ability to eliminate the problems associated with the use.... [¶] ... As a consequence, the inevitable result is requiring the discontinuance of the masonic lodge use at this site." (Emphasis deleted.)

SRCALA and LASRC's appeal of the zoning administrator's decision to the City Council was rejected; on September 29, 2005 the Mayor approved the Council's action.

5. The Petitions for Writ of Mandate

On July 21, 2004, following the City's adoption of the 2004 conditions on the use of the Cathedral, SRCALA and LASRC filed their first petition for writ of administrative mandate in the superior court. For reasons not explained in the record, the hearing on that petition was continued for more than a year. On October 4, 2005, while the first petition was still pending, SRCALA and LASRC filed a second petition challenging the City's revocation of the Cathedral's certificate of occupancy. The petitions were consolidated, and a...