Code would have required family to pay more than $23,000 in city
fees
Juan and Maria Diaz have permit problems with the city and they wonder if their problems would go away if they had as much money as John Fry of Fry’s Electronics.
Fry is a founder of the American Institute of Mathematics that plans to move to Morgan Hill. To accommodate mathematicians and others seeking recreation, he and his business partners expanded a pitch and putt course into an 18-hole championship course – without proper permits, environmental studies and mitigations.
The Diaz family owns a house on West Main Avenue and planned to build a small addition for Maria to open her own one-chair hair salon. However, the long arm of city ordinances has been standing in their way.
The municipal code would require them to pay $23,000 in water/sewer fees and in lieu fees for undergrounding the utilities in front of their property, plus a so-far unknown amount for permits and plan checks. They have had trouble finding out whether a commercial or residential addition would be possible.
“We’re just a small business,” Maria said. “That’s too much money for such a small business.”
The couple did get some good news Wednesday night when the City Council, responding to pleas from the Diazes and other property owners downtown for relief from the high fees, waived those fees under certain circumstances. Other fees will still have to be paid
From now on, downtown residential units converting to commercial use and commercial additions up to 1,500 square-feet are exempt from development and street and sidewalk development impact fees. Council also voted, 3-0, to allow the exemptions to expire in three years so the results can be evaluated. Mayor Dennis Kennedy and Mayor Pro Tempore Hedy Chang, in Mexico for the Sister City signing ceremony, did not vote.
In the meantime, the Diaz family, residents of Morgan Hill for 25 years, are trying to figure out what they need to do to satisfy the city.
“We just wanted to be honest citizens and get the right permits,” Juan Diaz said. “One year ago David (Gilchrist, the couple’s architect) made plans for a 723 square-foot commercial building with a parking lot and handicapped access,” Juan said.
When the Diaz’ and Gilchrist first approached the city about the expansion, they were told it was do-able and to go ahead. Melissa Dile, assistant to the city manager, said the information the couple received had changed.
“We did give them direction that turned out to be faulty,” Dile said. “When they submitted a commercial application, they went through the initial review stages but objected to the $24,000 in fees,” she said. “We suggested they operate as a home-based business and add onto the house as a residential addition to save money.”
Dile said, as a residential operator, Diaz could operate under her existing license.
Diaz ran the “Images by Maria” salon at Monterey Road and Central Avenue for eight years but moved because the rents became too high.
“Now they say we can’t have a home business,” Maria said.
“It turned out that this conflicted with the building code,” Dile said.
Dile said the city staff offered to refund the $6,000 in processing fees and is sympathetic with the Diaz’ plight but that everyone must meet building code standards for reasons of safety and fairness. The outstanding requirements are different from the impact fees no longer largely applicable.
“They still will need to meet some other costly conditions,” Dile said. “All the initial planning requirements still apply.”
Other knotty issues include the number of parking slots a one-chair salon would require. More than one, Juan said.
One part of the residential-to-commercial code that the council has not yet changed to ease the burden on small business owners is that of fire sprinkler requirements. The city has been working with the Santa Clara County Fire Department to allow smoke detectors instead of fire sprinklers or, at least, residential sprinklers instead of commercial sprinklers.
But so far the fire department is sticking to its guns in the interest of fire safety since many downtown buildings are old structures made of wood and in close proximity to each other.
The Diaz’ raised two children who are now in college. Juan, who works for San Jose Unified School District, also coaches 11 and 12-year-old soccer teams in town and is on the Dayworkers’ Committee. He said he is as anxious as Maria to get going.
“It’s our dream,” Maria said. “We just want to earn a living.”
Images by Maria, 778-7162
