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Council Adopts Law Taking Aim at House of Rock

City leaders vote unanimously to approve ordinance making it a misdemeanor to operate a home for "a commercial purpose."

Throwing big parties for "commercial purposes" at homes in Santa Monica's residential neighborhoods will be illegal next month when a new city ordinance adopted unanimously on a second reading Tuesday night takes effect.

The new ordinance targets the House of Rock, a multi-million "designer" home used as a venue for large charity fundraisers unpopular with neighbors. The city contends the parties are a marketing ploy to sell the estate.

Events are planned at the House of Rock, at 2009 La Mesa Dr., through Dec. 6, so they will presumably be allowed to continue. 

On Tuesday, the City Council could have adopted an emergency ordinance to  take effect immediately. But recent House of Rock parties—including a Halloween bash sponsored by KIIS FM—did not result in any code enforcement violations, so city leaders decided that wasn't necessary.

Councilwoman Gleam Davis walked her dog by the radio station's party on Oct. 30 and said though the event was "relatively quiet," she believed they needed to be brought to a halt.

"This isn’t her home... where she happens to have the occasional party," Davis told Patch that night. "She’s elected to run an event house business in a residential neighborhood and is using that event house business to create cache around the house, so when she goes to sell it, she’ll make a better profit."

Here's what the ordinance adopted by the council says:

No person shall operate a single family residential property for a commercial purpose including, but not limited to, as an event facility. No business license shall be issued for such an operation. 

For purposes of this section, an "event facility" is property that is utilized for gatherings of more than 150 people at any one time.

Ben Reznick, an attorney representing the La Mesa Drive home's owners, Greg Briles and Elaine Culotti, called the ordinance "broad and vague."

"If someone is selling a house and has a big party, is that a commercial purpose?" he asked. "Is the selling, developing of a house now a commercial venture?"

Culotti formed the House of Rock LLC and renovated the historic home last year, turning it into a "show house" by commissioning high-end designers to decorate rooms in tribute to rock legends, such as the Rolling Stones. The home isn't open to the public (parties are invite-only), but there's a website for visitors to purchase items featured in each of the rooms.

Interior designer Susan Cohen, who has been involved in design houses in the past and has been to several fundraisers at the House of Rock, told the council last month she was "saddened" by the home's detractors.

"Charity is what it's all about," she said. "Nothing bizarre happened. People were very excited to donate."

But according to city staffers,

The adverse impacts of this marketing scheme upon the neighborhood are significant. 

They far exceed the impacts of selling a home through traditional means, such as broker caravans and Sunday afternoon open houses because of the timing, the large numbers of vehicles and party goers, the noise, and the lights, among other things. 

"The issue has never been one of charity," said Steve Pokress, a Georgina Avenue resident who said he sympathizes with La Mesa residents.

"Having one event is one thing, having six in a row is quite another thing with all of the staff moving in and out, bringing in chairs and tables beforehand, the next day cleaning up... it's a very narrow street," Pokress said.

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Glenn E Grab November 15, 2012 at 01:01 pm
good job, city council....
Reggie barns November 15, 2012 at 03:05 pm
Good job wasting city dollars. The only people that lose is this is the charities. The neighbors clearly think more of themselves than charitable organizations. Shame on the council for supporting them and cracking to political pressure. Hope the contributions to your campaigns are worth it.
Anna Corral November 15, 2012 at 07:21 pm
Sometimes I feel Santa Monica is "pretentiously snobby" by it's inducted standards! So be it, its decided, but I am shaking my head at the decision.
Anna Corral SAMO resident
Reggie barns November 15, 2012 at 09:15 pm
It's interesting how Gleam knows everything about this residence life and has an opinion on how she should live it. Also, her comment makes no sense... Don't we want our homes to sell for more?? Doesn't the city and neighbors benefit from higher property value. She must have it out for this lady. How do they pass a city law and waste all this time and money when there has been no citations?
mimi November 16, 2012 at 04:16 am
Wouldn't it be a reasonable compromise to limit the number of parties per month and the number of guests, instead of eliminating any/ all parties for commercial profit?
What about sample clothing sales held in homes that may or may not be listed for sale? Are they now illegal, too? Let's not forget Tupperware parties and Mary Kay cosmetics parties. They are always in private homes, by invitation only , have large number of attendees with one singular goal---make a lot of money. There isn't even a pretense of donating a portion of the profits to charity. I don't know any of the people involved in this dispute. I am an outsider looking in. I don't like what I see. I am cynical about the true motives of this law and where they intend to draw the line. Why a
Juan Sanchez November 19, 2012 at 01:25 am
Let's talk about what is really the issue. For decades Santa Monica law has said that is is not legal to conduct a business entity in a single family zoned area (with a few exceptions). The developers of the House of Rock, who do not live there, have tried to do just that. They advertise parties to sell furniture, promote daily recording sessions of various musicians who are "booked" into recording times (as the Manager of the onsite recording studio testified at the City Council), and have served alcohol without the required ABC permit - illegal under State Law. Documents filed with the City Clerk show that their own lawyer, Benjamin Resnick has threatened to sue several of the neighbors claiming they are interfering with the House of Rock's ability to conduct it"s businesses (a quote from his letter). If we want the problems to go away, just have the developers start obeying the law.
Bridget Smith November 19, 2012 at 03:53 am
The first parties were out of control and loud with trucks blocking driveways and the streets. What if there was an emergency? Who on earth would want to live next to a party house? Plus, she set it up as a for-profit LLC, so I imagine she took a cut of the charitable proceeds. I heard she just bought a house in the Palisades to do the same thing. Thank you Santa Monica City Council for keeping 150+ capacity event venues out of our residential neighborhoods. Anyone who needs a larger gathering should use one of our many hotels.
Reggie barns November 20, 2012 at 12:25 am
Well Juan... seems like you have many of the facts wrong. i guess you are reading all the articles that quote 2-3 uninformed neighbors. seems like people formed an opinion early on and couldn't let go. i own my own charity and had researched this organization and have followed this thing since the beginning.
Turns out you can own as many houses as you want. I've heard this purchase furniture thing many times but have yet see anything on how you do it. Please send me the link or show me what facts you have on it. As far as the studio, they are helping struggling artists... And yes that takes organizing because you clearly are unaware that there are many artists looking for help. I guess you are against helping artists. Not sure what you are referring to as it relates to the liquor board. You must be on the inside since I've never seen anything on this or citations for this. Please share your facts (I'm interested). The word "business" has many definitions. I guess the way you interpret it must be correct ( I'm being sarcastic). I would threaten my neighbors if they were in my business as much as these people are. They complain about everything to the curtains in the windows...
Reggie barns November 20, 2012 at 12:56 am
I feel obligated to respond Bridget. I heard about their first party and that it could have been better, but such in life you usually improve from your first attempt. To publicly linch these two women seems really unfair for their good natured approach. I have seen so much hate from the people on these street that it just shocks me that people act this way. I mean really... You think that a fire truck couldn't get down the street if they needed to? That is a very extreme statement to make and it's the most mild comment that these neighbors made. I also heard that someone was in fear of their life. This is just funny. It's really nothing more than someone trying to trick others that there is more going on. I would guess there are far more dangerous streets in Santa Monica.
As far as your comments on on them taking a cut... I'm not even sure how to respond to this... The fact that they are doing this work is amazing and we should be grateful for people like this in our community. I challenge you to look at non profit originations and you'll see how much they pay their people. There are many 501c3 non profits paying their VPs $600k plus salaries. I'm sure they won't scrape 1/6 of that one salary. I think the term party house is very derogatory to their work. I would challenge you to do something unique to help raise money for a good cause. A charity function in a hotel is a dime a dozen. Something unique creates new people to get involved. Stop all the hate.

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stewart resmer June 18, 2013 at 02:35 pm
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Joanne June 14, 2013 at 12:34 pm
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Joanne June 14, 2013 at 12:41 pm
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