San Remo Hotel Continues Battle In Federal Court

SAN FRANCISCO— After a decade of litigation against the City of San Francisco over private property rights, owners of the historic 62-room San Remo Hotel will challenge the California Supreme Court ruling, possibly taking their case to the U.S. Supreme Court. Issuing a four to three split decision reversing a state appellate court ruling, the states highest court upheld the citys imposition of a $567,000 “conversion fee,” paid under protest in 1993 by hotel owners, brothers Tom and Robert Field. The fee permitted the San Remo to continue renting rooms primarily to tourists rather than to low-income residents. The Fields sued the city for an unconstitutional taking of private property, citing provisions in a controversial law requiring certain smaller hotels to replace or to pay for any housing “lost” when rooms are not reserved for low-income residents. In 2000, the state high court agreed to review the decision to determine if an unconstitutional ordinance restricted their legal use of rooms.