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HomeMy WebLinkAbout20260310_Declaration of Building Official ISO Application- City_City v Smith DECLARATION OF SUPERVISING BUILDING INSPECTOR NELSON 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 CIV I C A LAW GRO U P , AP C J. CHRISTINE DIETRICK, SBN 206539 City Attorney, City of San Luis Obispo MATTHEW R. SILVER, SBN 245528 MSilver@CivicaLaw.com SEAN E. MORRISSEY, SBN 297371 SMorrissey@CivicaLaw.com NICHOLAS GARCÉS, SBN 273277 NGarces@CivicaLaw.com CIVICA LAW GROUP APC 4000 Barranca Parkway, Suite 250, PMB #782 Irvine, California 92604 Phone: 949-592-0165 Fax: 949-335-1701 Attorneys for Plaintiffs City of San Luis Obispo, and People of the State of California Exempt from filing fees pursuant to Government Code section 6103. SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF SAN LUIS OBISPO THE PEOPLE OF THE STATE OF CALIFORNIA, EX REL, J. CHRISTINE DIETRICK, CITY ATTORNEY OF THE CITY OF SAN LUIS OBISPO; and, THE CITY OF SAN LUIS OBISPO, a California municipal corporation, Plaintiff, v. LAUREL CREEK, LP, a California Limited Partnership; LAUREL CREEK, II, L.P., a Delaware limited partnership; 1160 LAUREL LANE, LLC, a California limited liability company; PATRICK N. SMITH a/k/a PATRICK SMITH, an individual; SMITH AND COMPANY, A REAL ESTATE INVESTMENT DEVELOPMENT CORPORATION, a California corporation; PATRICK N. SMITH a/k/a PATRICK SMITH, AS TRUSTEE OF THE PATRICK N SMITH 2004 LIVING TRUST; Case Number: 25CV-0667 Action Filed: October 16, 2025 Judge: Hon. Judge Tana L. Coates Dept.: 4 DECLARATION OF SUPERVISING BUILDING INSPECTOR TREVOR NELSON IN SUPPORT OF PLAINTIFF CITY OF SAN LUIS OBISPO ’S EX PARTE APPLICATION FOR APPOINTMENT OF RECEIVER, OR ALTERNATIVELY, FOR AN ORDER SHORTENING TIME Filed concurrently with: 1. Ex Parte Receivership Application; 2. Memorandum of Points and Authorities; 3. Declaration of Code Enforcement Supervisor John Mezzapesa; 4. Declaration of Fire Marshal Josh Daniel; 5. Declaration of Attorney Sean Morrissey; 6. Declaration of Proposed Receiver Singer; 7. Request for Judicial Notice; 8. Appendix of Exhibits; 9. [Proposed] Receivership Order; 10. Proof of Service. ELECTRONICALLY FILED 3/10/2026 9:29 AM DECLARATION OF SUPERVISING BUILDING INSPECTOR NELSON 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 CIV I C A LAW GRO U P , AP C CPIF CALIFORNIA LLC, a California limited liability company; CPIF LAUREL CREEK, LLC, a Washington limited liability company; ALL WALL SYSTEMS, INC., a Delaware corporation; AMERICAN RIVIERA BANK, a California corporation; ARNOLD BUILDERS, INC., a California corporation; B & B CONSTRUCTION CLEANUP INC., a California corporation; BLUE STEEL CONCRETE, LLC, a California limited liability company; COAST ENGINEERING & DESIGN INC., a California corporation; CONSOLIDATED ELECTRICAL DISTRIBUTORS, INC., d/b/a CALIFORNIA ELECTRICAL SUPPLY, a Delaware corporation; CULBERT PLUMBING INC., F/K/A CULBERT CONSTRUCTION AND PLUMBING, INC., a California stock corporation; EMPIRE ELECTRICAL SOLUTIONS, INC., a California corporation; FAMCON PIPE & SUPPLY, INC., a California corporation; G W SURFACES, a California corporation; HOMER T. HAYWARD LUMBER CO., a California corporation; KIRK CONSTRUCTION, a California corporation; LC LENDERS, LLC, a Delaware limited liability company; LW CONSTRUCTION, INC., a California corporation; MAHOGANY CONSTRUCTION, INC., a California corporation; NOLAN CHURCH DOING BUSINESS AS COLORTRENDS PAINTING & DECORATING, a California sole ownership or proprietor business; SCHINDLER ELEVATOR CORPORATION, a Delaware corporation; THE SHERWIN-WILLIAMS COMPANY, an Ohio corporation; UNITED RENTALS (NORTH AMERICA) INC., a Delaware corporation; US AIR CONDITIONING DISTRIBUTORS, LLC, a Delaware limited liability company; and, DOES 1 through 50, inclusive, Defendants. Hearing: Date: March 12, 2026 Time: 8:30 a.m. Dept: 4 – 1 of 11 – DECLARATION OF SUPERVISING BUILDING INSPECTOR NELSON 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DECLARATION OF SUPERVISING BUILDING INSPECTOR TREVOR NELSON I, Trevor Nelson, declare: 1. I am a competent adult over the age of 18 and have personal knowledge of the following facts which I could and would testify to if called as a witness. I make this declaration in support of the City of San Luis Obispo’s Ex Parte Application for Appointment of Receiver, or Alternatively, for an Order Shortening Time pursuant to Health and Safety Code Section 17980.7(c). 2. I am currently employed as a Supervising Building Inspector with the City of San Luis Obispo (“City”) and have been so employed at all times relevant to this Declaration. 3. I have extensive training and experience with building standards and codes, building inspection, and various building safety issues. I am trained in and familiar with state housing law, the California Health and Safety Code (“HSC”), the California Building Code (“CBC”), the California Electrical Code (“CEC”), the California Fire Code (“CFC”), the California Mechanical Code (“CMC”), the California Plumbing Code (“CPC”), the International Property Maintenance Code (“IPMC”), the Uniform Code for Abatement of Dangerous Buildings (“UCADB”), the San Luis Obispo Municipal Code (“SLOMC”) and other applicable laws. I have conducted dozens of inspections of properties for compliance with the law. As such, I am readily familiar with the requirements of these laws and conditions which violate them. I am a competent adult over the age of 18 years and have personal knowledge of the following facts which I could and would testify to if called as a witness. 4. In my capacity as Supervising Building Inspector, I am familiar with and have been involved with the City’s code enforcement efforts and investigation of the substandard building violations and other dangerous conditions on the parcel of real property identified as 1150 Laurel Lane, San Luis Obispo, California, 93401, Assessor’s Parcel Numbers 004-962-036, 004-962-037, and 004-962-042 (“Subject Property”). I have reviewed the City’s records regarding the Subject Property, and I am readily familiar with them. I make the following statements and opinions based on my review of the City’s entire code enforcement file, including all photographs, my experience with the Subject Property, and my extensive training and experience with code enforcement issues and violations. As the City’s Supervising Building Inspector, I can attest to violations related to building, life, and safety. 5. Based on City records, I am aware that the record title owners of the Subject Property are – 2 of 11 – DECLARATION OF SUPERVISING BUILDING INSPECTOR NELSON 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Defendant Laurel Creek L.P., a California limited partnership, (“Defendant Laurel Creek LP”) and Defendant Laurel Creek II, L.P., a California limited partnership, (“Defendant Laurel Creek II LP”) (collectively, “Defendant Owners” or “Owners”) pursuant to a Grant Deed recorded June 24, 2020, in the San Luis Obispo County Record’s Office (“SLO Official Records”), with record number 2020031255 (“Grant Deed 1”), and a Grant Deed recorded on April 1, 2021, in SLO Official Records, with record number 2021024686 (“Grant Deed 2”), respectively. True and correct copies of Grant Deed 1 and Grant Deed 2 are attached as Exhibit 1 to the Appendix of Exhibits (“AOE”) and are incorporated herein. 6. I am also informed and believe that Defendant 1160 Laurel Lane, LLC (“Defendant 1160 Laurel Lane LLC”), is general partner for, and authorized to act in a representative capacity as an agent for, both Defendant Laurel Creek LP and Defendant Laurel Creek II LP in relation to the Subject Property. I am also informed and believe Defendant Patrick N. Smith, also known as, Patrick Smith (“Defendant P. Smith”) is an officer, director, manager, and/or member of, and acts on behalf of and directs the actions of Defendant 1160 Laurel Lane, LLC, and therefore also acts on behalf of and directs the actions of Defendant Owners in his capacity as an officer, director, manager, and/or member of Defendant Laurel Creek LP’s and Defendant Laurel Creek II LP’s general partner and in regard to matters related to the Subject Property. 7. During the City’s enforcement efforts, Defendant P. Smith and other agents for the Owners have been communicating with the City about the Subject Property. 8. City building and planning department records reflect that the Subject Property consists of a large multiple parcel property of approximately 8.6-acres containing an approximately 200,000 plus square foot development project with a warehouse, storage units, and incomplete, unpermitted, substandard, unsafe, red tagged two-story, mixed-use structure with approximately twelve (12) separate commercial suites located on the first floor, and partially constructed apartment/dwelling units on the second floor, and contain violations of state and local laws. The Subject Property is located in a densely populated residential community within the City near many businesses, parks, churches, residences, a museum, and schools, and is plagued with severe health, safety, sanitation, electrical, structural, and fire hazards in violation of State and local laws, including the HSC, CBC, CEC, CFC, CMC, CPC, IPMC, UCADB, and the SLOMC, which render the Subject Property substantially dangerous to entrants, – 3 of 11 – DECLARATION OF SUPERVISING BUILDING INSPECTOR NELSON 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 occupants, neighbors, and the community. These violations include, but are not limited to: red tagged/condemned property; first floor office suites, second floor, apartment/dwelling units, and exterior structure in various stages of construction with significant unpermitted, unauthorized, and/or incomplete and unfinished work; incomplete or lacking fire safety requirements, systems, and safeguards; and many dangerous, substandard, and hazardous conditions posed by a pattern of unpermitted construction, unauthorized occupancy, and building activity that compromises public safety, among other violations. 9. I understand from the City’s records that, before 2020, the Subject Property was at least partly owned by a different entity, which I am informed and believe was managed or operated in some way by Defendant P. Smith. In or around 2020, part of the ownership interest in the Subject Property was transferred to Defendant Laurel Creek LP. In 2021, another part of the ownership interest in the Subject Property was transferred to Defendant Laurel Creek II LP. 10. Since 2020, City staff observed a visible shift in development intent by the Owners, which was partially demonstrated in the many permits that were issues and that ultimately affected the whole building and uses inside. Around 2020, at least fourteen (14) building, fire, and grading permits were applied for and/or issued. More permits were also applied for or issued in 2021, 2022, and 2023. 11. The various permits intended to bring significant changes to the Subject Property, including for residential and assembly use conversions from the buildings original use classifications, with plans for adding multi-family units to both stories, accessibility upgrades, converting warehouse spaces into large assembly spaces, and upgrading fire separations and building systems to meet code requirements, among other projects. 12. Since 2020, around the time this shift and increase in development began, the Subject Property has been a focus of the City’s code enforcement efforts where the City observed the emerging pattern of unpermitted, incomplete, unfinished construction, unauthorized occupancy, as well as substandard, unsafe, hazardous conditions. 13. The City has made more than reasonable efforts and attempted all feasible methods of enforcement with Defendant Owners. All efforts have proven ineffective and, despite having been given ample opportunity to comply, Defendant Owners have failed to do so. The details of the City’s code enforcement efforts are attested to in the concurrently filed Declaration of Code Enforcement Supervisor/ – 4 of 11 – DECLARATION OF SUPERVISING BUILDING INSPECTOR NELSON 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Interim Deputy Building Official John Mezzapesa. 14. Despite the City’s efforts to obtain compliance, by September 2025, at least eight permitted projects remained incomplete with expired permits for tenant improvements and/or for interior renovations for planned remodels or upgrades to commercial spaces and remain unfinished. 15. By September 2025, at least four permitted projects remained incomplete with expired permits for modifications or new fire sprinkler systems and/or fire alarms and remain unfinished. 16. By September 2025, at least six permitted projects remained incomplete with expired permits for unfinished or canceled efforts to convert commercial space into residential or mixed-use space and remain unfinished. 17. By September 2025, at least two permitted projects remained incomplete with expired permits for site-level construction, which was not finalized for American Disabilities Act compliance, and general grading work and remain unfinished. 18. Code Enforcement Supervisor/Interim Deputy Building Official John Mezzapesa, Fire Marshall Josh Daniel and I have observed and/or identified no less than 274 substandard and extremely dangerous building violations and other illegal conditions that posed, and continue to pose, an immediate and serious risk to the health and safety of occupants, entrants, neighbors, and the community. The Subject Property is in violation of numerous State and local laws, including but not limited to, the HSC, CBC, CEC, CFC, CMC, CPC, IPMC, UCADB, and the SLOMC, and other applicable laws. A summary of the 274 violations of law and nuisance conditions identified on the Subject Property includes, but is not limited to, the following unlawful conditions: 18.1. First floor office suites 100, 110, 115, 120, 132, 140, 160, 170, 175, 180, 184, 190, and 300: suites in various states of partial or incomplete construction, including red tagged areas unsafe for occupancy; unpermitted construction; unfinished, uneven, and unfinished floors; unfinished, dilapidated, and/or damaged walls with exposed electrical, plumbing, structural, and/or mechanical components, and including incomplete fire walls; damaged, inadequate, or improperly applied interior wall coverings; unfinished, missing, and/or unsealed ceilings and ceiling penetrations; improper, missing, unfinished and/or nonfunctioning fire sprinklers, fire alarm – 5 of 11 – DECLARATION OF SUPERVISING BUILDING INSPECTOR NELSON 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 monitoring systems, and/or smoke detectors; improper and/or inadequate fire resistance protections, fire-rated doors, and fire protection equipment; unfinished plumbing and piping and missing drain caps; unpermitted and improper electrical installations and/or wiring; exposed, loose, unsecured, damaged electrical wires, fixtures, and outlets; exposed, unsecured, and/or unfinished electrical conduits and junction boxes; exposed, missing, and/or unfinished mechanical components; inadequate heating; unfinished and exposed gas lines; missing required exit signage; accumulations and excessive storage of equipment, machinery, tools, and other materials, including obstructing egress routes; improperly secured and maintained storage racks; blocked doors; lack of required ADA bathroom access and counters; and, signs of animal and/or rodent infestation in some areas, among other violations. 18.2. Second floor incomplete apartment/dwelling units: units in various states of partial or incomplete construction, including red tagged areas unsafe for occupancy; unpermitted construction; unfinished, uneven, and unfinished floors in hallways and units, including holes and gaps in the floor of some units; unfinished, inadequate, dilapidated, damaged, and/or unsealed walls and wall penetrations, including incomplete fire walls; unsealed penetrations in fire-rated horizontal assemblies around structural, plumbing, mechanical, and other installed components in its floors and ceilings; unfinished, missing, and/or unsealed ceilings and ceiling penetrations; missing or unfinished interior doors; units with signs of water damage; missing or unfinished second-floor balcony guard railing and/or balcony fire sprinklers; damaged balcony exterior walls lacking adequate weather protection; exposed and unfinished mechanical components, including unprotected HVAC line sets; inadequate, unfinished, and/or missing mechanical exhaust facilities, including exhaust systems, registers, and kitchen exhaust facilities; unpermitted and improper electrical installations and/or wiring; exposed, loose, unsecured, damaged electrical wires, fixtures, and outlets; exposed, unsecured, and/or unfinished electrical conduits and junction boxes; dangerous and exposed electrical panel/breakers; missing and – 6 of 11 – DECLARATION OF SUPERVISING BUILDING INSPECTOR NELSON 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 unfinished required light fixtures and covers; exposed and unfinished plumbing and piping, including but not limited to, incomplete and unsupported water lines, lack of adequate shutoff valves, and, lack of hot water pipe insulation; inadequate and unfinished bathroom and kitchen facilities; obstructions to egress and egress routes; accumulation of stored construction materials, including trash bins, extension cords and other wiring, wood materials, and other miscellaneous construction materials and debris; missing required exit signage in halls and stairways; improper, missing, unfinished and/or nonfunctioning fire sprinklers, fire alarm monitoring systems, and/or smoke detectors; and, improper, unfinished, and/or inadequate fire resistance protections, fire-rated doors, and fire protection equipment, among other violations. 18.3. Exterior Structure: improper exterior materials and/or exterior walls; unfinished, damaged, and dilapidated exterior walls, resulting in inadequate weather protection; damaged, inadequate, or missing exterior structural components, including intumescent paint and other protective coverings; unfinished and dilapidated exterior doors; uneven and extremely unsafe exterior walking surfaces; exterior standpipe connection blocked by unfinished construction; mold growth on exterior and open unfinished interior walls; substantially damaged and dilapidated roof, which contains large holes; damaged and exposed exterior electrical conduits and equipment, mechanical components, and piping on the roof; corroded, damaged, unsupported, and unpermitted gas lines and unprotected gas meter on the roof; inaccessible exterior electrical transformer; unsafe, open, damaged exterior guardrails on stairways and stairways and other areas; unsafe exterior stairs; unpermitted exterior electrical heaters; unsecured, exposed, dilapidated and/or damaged exterior electrical conduits, junction boxes, wiring, outlets; improper excavation and unprotected foundation; obstructed, locked and/or improper exterior exit doors, stairways, and lighting; damaged and missing fencing; damaged and dilapidated parking; inaccessible required ADA parking; blocked accessibility signage; improper drain grate openings; damaged and unsecured electrical components for a fire protection system; – 7 of 11 – DECLARATION OF SUPERVISING BUILDING INSPECTOR NELSON 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 obstructed, inadequately maintained, abandoned, and/or unfinished fire hydrants; unpermitted construction, including water line work; unpermitted temporary fire pump; inaccessible emergency fire and electrical equipment in the event of an emergency; inadequate fire pump vehicle impact protection; various unlawful fire protection system conditions, including damaged, cracked, nonfunctional, obstructed, abandoned, buried, disconnected, inoperable and/or improperly identified post valve indicators, faulty and/or inoperable pressure gauges, and, unsupervised and unsecured fire pump room with inadequate flow alarms, lighting, and signage; inadequate exterior access routes; inadequate separation from of vehicular and pedestrian traffic; unlawful zoning uses, including off-site business vehicle parking and signage; inadequate tree protection; accumulations of junk, trash and debris; overgrown and dead weeds and vegetation; inadequate stormwater best management practices to prevent migration of pollutants into the storm drain system; and, inadequate exterior balcony guardrails; among other violation. True and correct copies of the photographs of the Subject Property taken by City staff during several 2025 inspections are attached as Exhibit 5, 7, 8, 10, 12, 14, and 15 to the AOE and are incorporated herein. 19. On September 2, 2025, the City issued a Notice and Order to Repair or Abate (“N&O”), pursuant to HSC sections 17980.6 and 17980, et seq., to Defendant Owners and all interested parties of the Subject Property. The N&O cited the 274 violations of law on the Subject Property and ordered rehabilitation of the Subject Property to begin within 15 days and to be completed within 30 days, by October 2, 2025 (“Compliance Deadline”). 20. The N&O detailed all identified violations, described the dangers attendant to each violation, and indicated what steps needed to be taken to correct each identified violation. The N&O also noted that failure to comply would potentially result in further legal action, including the appointment of a court receiver. 21. On September 2, 2025, the N&O was mailed via first class mail and certified mail, return receipt requested, to Defendant Owners and also posted on the Subject Property. It was also served on – 8 of 11 – DECLARATION OF SUPERVISING BUILDING INSPECTOR NELSON 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 all interested parties with a recorded interest in the Subject Property by posting the N&O on the Subject Property and mailing it by first class mail. True and correct copies of September 2, 2025, Photographs, which were taken at the time the N&O was posted on the Subject Property, are attached as Exhibit 10, to the Appendix of Exhibits, and are incorporated herein. 22. On September 8, 2025, the City recorded a Notice of Pendency of Nuisance Abatement Action (“NoP”) and attached the N&O as an exhibit, on title to the Subject Property as document number 2025-026224 with the San Joaquin County Recorder in order to provide constructive notice to all interested parties of the City’s pending nuisance abatement action and the N&O (“NoP with N&O”). A true and correct copy of the NoP with N&O is attached as Exhibit 11 to the Appendix of Exhibits and is incorporated herein. 23. To date, the Subject Property remains in violation of law and remains a substandard nuisance that is substantially and immediately dangerous to the health, safety, and welfare of the community and public. Defendant Owners have failed to, are unable or unwilling to abate the violations identified in the N&O. 24. Despite having been provided more than a reasonable time and adequate opportunity to rehabilitate the Subject Property—over 180 days since the N&O was issued and over five years since code enforcement efforts began in 2020—Defendant Owners and any interested party have failed to fully rehabilitate the Subject Property and bring it into compliance with State and local laws. The City needs this Court’s intervention, particularly given the immediate dangers that the Subject Property poses. 25. The Subject Property is maintained in a condition that violates applicable law, and these conditions are so extensive that the health and safety of the occupants, entrants, neighboring residents, the community, and the public is substantially endangered. The persistence of these dangerous and substandard conditions also continues to drain valuable City resources, threatens property values of innocent neighboring properties by blighting the community, and causes the people who live nearby to suffer the negative impacts and be exposed to risks and dangers the Subject Property presents. In its present state, the Subject Property is in a state of partial and/or incomplete construction, full of unpermitted construction, a fire hazard, full of structural hazards and other dangers, substandard, and a public nuisance. Since code enforcements efforts began, there have been minimal to no major – 9 of 11 – DECLARATION OF SUPERVISING BUILDING INSPECTOR NELSON 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 improvements in the conditions on the Subject Property. A receivership, therefore, is critical to avoid disastrous consequences of significant injury to persons or property 26. The Subject Property contains several dilapidated structural elements, such as deteriorated and dilapidated structural supports, exterior structural components, walls, ceilings, and floors, including holes or dilapidated/damaged sections of roof; unsanitary living conditions, damaged and/or missing guardrails; and is unfit for human occupancy, which is partly why it has been condemned/red-tagged. 27. The Subject Property is also an extreme fire hazard. Unsealed penetrations in fire walls, unfinished walls, dilapidated and/or missing ceilings, present structural and fire dangers due to insufficient fire control and retardation; inadequate, incomplete, and/or missing fire protection systems and equipment, exist signs, emergency lighting, missing fire sprinklers, and smoke detectors among other conditions present a danger to occupants and entrants in the event of a fire, as well as to first responders who rely on fire protection systems to combat fire outbreaks. Exposed, loose, unsecure and/or damaged, electrical wiring, fixtures, electrical outlets, conduit, junction boxes, further contribute to fire hazards and lack of safety protection should a fire ignite. Additionally, storage of miscellaneous materials results in blocked ingress and egress routes throughout the Subject Property which can endanger any entrants, occupants and first responders in the case of a fire. Overgrown vegetation, accumulation of junk, trash, and debris, storage of combustible materials, unfinished fire protection systems, and the damaged and unfinished fire-resistant walls and ceilings places the Subject Property at risk of a fire that may threaten the safety of occupants and first responders. 28. There are severe health, safety, and sanitation dangers present at the Subject Property, which continue to exist. The Subject Property contains partial construction with missing and dilapidated walls, floors, ceilings, mechanical, plumbing (including unfinished and exposed gas lines that have been partially installed), and electrical components, which compromise the integrity of the building and exposes any entrant to danger and health and safety hazards. Incomplete, unfinished, and/or abandoned mechanical components pose health and safety risks as such equipment is necessary to maintain airflow and indoor air quality. The Subject Property also contains unsanitary conditions, such as large holes in the roof that can lead to mold growth and spread, rodent and vermin; exposed and damaged electrical – 10 of 11 – DECLARATION OF SUPERVISING BUILDING INSPECTOR NELSON 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 wiring, exposed plumbing, inadequate plumbing that creates substantial sanitation and degradation issues; signs of animal and/or rodent infestation, including accumulation of feces and urine in at least one area; and the Subject Property exterior contains accumulations of junk, trash, and debris, which create a dangerous environment that can lead to many other adverse health conditions. 29. The Subject Property is in is in such a blighted and deteriorated condition due to the condemned/red-tagged building unfit for occupancy, building code violations, partial and/or incomplete construction, structural damage and/or hazards, deteriorated, dilapidated, and/or missing ceilings, walls (including exterior walls), and floors, roof holes and/or damage, damaged and/or missing guardrails, exterior accumulations of junk, trash, and debris, and that it is harming neighboring properties as well. The Subject Property is also located in a populated area near many businesses, parks, churches, residences, a museum, and schools, exacerbating its danger to the community because the Subject Property is an attractive nuisance to children who may be attracted to and wander onto, or even walk into, the Subject Property, risking severe harm. 30. At the time of the City’s last public right-of-way inspections since the Compliance Deadline, City Staff observed and verified that many if not all 274 unlawful and dangerous conditions described in the N&O continue to persist. 31. Based on upon my professional experience and training as a Supervising Building Inspector, the conditions on the Subject Property are so extensive and of such a nature that they pose an immediate and substantial danger to the health and safety of the occupants, neighbors, and the public. 32. The City has expended all reasonable efforts to gain voluntary compliance by Defendant Owners or any interested parties willing to accept responsibility for the rehabilitation of the Subject Property, to no avail. In order to protect the health and safety of the residents and the public, all these dangerous and unlawful conditions need to be abated immediately. 33. Without immediate relief, the Subject Property will continue to deteriorate and potentially attract squatters and vagrants to break in and cause further harm to the Subject Property, the neighbors, the public, and the surrounding community. People who had offices in the Subject Property, including CalFire, a church, and other offices, continue to be unable to return or use offices they were ordered to remove from. I 2 J 4 5 6 7 8 9 10 11 l2 13 t4 15 34. Because of the extremely unsafe conditions on the Subject Property caused or allowed to exist due to Defendant Owners and any interested party's actions or inactions, it has become necessary for the City to act to protect its residents, visitors, and public. Without the City's and the Court's help, the Subject property will continue to deteriorate, creating increasingly dangerous conditions and will continue to put entrants, occupants, neighbors, businesses, and the public in substantial danger. 35. In my professional opinion, based on my training, experience, and observations, the appointment of a court receiver is warranted in this case to address the substantially dangerous and persistent building code violations on the Subject Property. With the Subject Property in such an extremely unsafe condition, the appointment of a court receiver is the only way to ensure that the Subject Property is rehabilitated and the community protected. 36. A court appointed receiver is the City's last option and the community's last hope. As such, we respectfully ask this Court to protect our cofirmunity and neighborhood and appoint a receiver immediately to bring the Subject Property into compliance with the law. I declare under penalty of perjury under the laws of the State of Califomia that the foregoing is true and correct. Executed in the County of San Luis Obispo, California. Dated: March 2026 By: TRE NELSON Supervising Building InsPector Ctrv or Sau Lrus OstsPo - 11of ll - DECLARATION OF SUPERVISING BUILDING INSPECTOR NELSON t6 t7 18 t9 20 2t 22 23 24 25 26 27 28