Maxwell House Conditional Use Permit Appeal on City Council Agenda – Again

The appeal on the Western Justice Center’s Conditional Use Permit for holding events at the historic Maxwell House near the Arroyo is scheduled to be heard by the Pasadena City Council on Monday after being twice continued previously.

The permit would allow the Western Justice Center (WJC) to host up to 21 events per calendar year at the Maxwell House, a significant reduction from their previous average of 47 annual events. These events would primarily be weddings and other private celebrations that generate revenue for the maintenance of the Center’s historic campus.

“The cost to staff, maintain and repair the campus annually exceeds $400,000 to $500,000,” states a letter from WJC’s legal counsel. “Denial of the CUP will lead to an annual loss of approximately $300,000 for Western Justice Center.”

WJC has said that the short-term rental of the Maxwell House is crucial for maintaining its campus and supporting its nonprofit work in conflict resolution education. The Center provides conflict resolution education in local schools, working with more than 4,000 students and educators across dozens of schools in recent years.

Despite the financial burden of maintaining the campus, the Center also provides below-market-rate office space to nearly 20 nonprofits and recently opened its doors to displaced organizations after the Eaton Fire.

“For nearly three years, the ongoing conflict with the Appellants has placed a significant strain on our staff and the nearly 20 other nonprofits that use our campus. Despite our repeated efforts to find common ground – offering multiple compromises, including reducing the number of weddings by nearly 60% and implementing numerous operational measures – no resolution has been reached,” said WJC Executive Director, Elissa Barrett.

“We hope that the City will acknowledge our extensive efforts, along with the overwhelming support from the surrounding neighbors, and grant this permit.”

The permit controversy reportedly began when neighbors complained after a wedding guest at the Maxwell House facility was involved in a DUI accident, hitting two parked cars.

The ensuing investigation brought to light that WJC had apparently been hosting dozens of events per year for the past 15 years without proper permits, prompting city officials to require appropriate permissions.

Neighbors opposing the permit, led by appellant Anita Yagjian, argue that commercial wedding activities fundamentally clash with the residential character of the area and violate both zoning codes and the organization’s lease with the City. The weddings occur just 10 to 15 feet from some neighboring residential patios, it is said.

“How can I possibly make you understand how wrong it is to approve this CUP for the WJC?” Yagjian stated in submitted comments. “How many of you have a neighbor with whom you share a common wall that is allowed to hold 21 for-profit weddings over 14 weekends, 27% of the weekends every year from 9 a.m. to 11 p.m. which denies you your right to use and quietly enjoy your property?”

The site, located at 55 South Grand Avenue, is owned by the City of Pasadena and leased to WJC, which has operated from the Maxwell House since 1989. The organization manages four historic buildings dating from the 1890s to 1920s under a 55-year City lease with a 45-year option.

The appellants contend that the lease agreement expressly prohibits for-profit activities, citing language in Section 5.1 that the tenant is “expressly prohibited from…allowing the Premises or any portion thereof to be used for any for profit activities.” However, the City’s Economic Development Department has interpreted the lease differently, concluding that while for-profit activities are prohibited during ordinary business hours, the site may be used for events during non-business hours.

This interpretation contradicts an earlier assessment by Code Enforcement, which determined in 2022 that “the banquet facility use is not only prohibited by Zoning, but also by their lease.”

On October 10, 2024, the Board of Zoning Appeals (BZA) voted 4-1 to uphold the Hearing Officer’s decision to approve the permit with modified conditions of approval. The BZA added several restrictions, including reducing the maximum number of events per year from 28 to 21, requiring unannounced code compliance inspections, and mandating third-party security personnel at all events.

According to Richard McDonald, attorney for the appellants, the BZA “failed to act in a quasi-judicial manner as required, instead preferring to play the role of ‘mediator’ in a biased manner.” The appeal also contends that the BZA failed to address several key issues, including the impermissibility of the categorical exemption under the California Environmental Quality Act (CEQA).

As a compromise, the appellants have proposed a three-year phase-out plan that would allow 18 events in 2025, 12 events in 2026, and 6 events in 2027, before ceasing entirely. WJC has not adopted this proposal.

City staff recommends that the Council uphold the BZA’s decision and approve the Conditional Use Permit with the conditions in place. The Planning Department maintains that the proposal complies with zoning requirements, as the PS-1 (Public and Semi-Public) zoning district permits clubs, lodges, and private meeting halls as accessory uses to a principal use with a CUP.

The proposed conditions would limit events to Saturdays and Sundays between 9:00 a.m. and 11:00 p.m., with no events permitted on consecutive weekends. Of the allowed events, 75% would be capped at 125 guests, with the remainder limited to 150 attendees. The permit also restricts outdoor patio use to three-hour periods between 1:00 p.m. and 6:00 p.m., requires security staff and mandates public website posting of the event schedule.

Councilmember Rick Cole has recused himself from voting on this matter.