(1) The city council may conduct a public hearing before taking final action on a recommendation from the city manager. The city council shall not waive or modify a land use regulation unless the council first holds a public hearing. Notice of a public hearing shall be mailed at least 14 days prior to the public hearing, and shall at a minimum be sent to the claimant, to owners and occupants of property within 300 feet of the perimeter of the subject property, and neighborhood groups or community organizations officially recognized by the city council whose boundaries include the subject property.
(2) Upon conclusion of any hearing, and consistent with any requirements of state law, the city council shall adopt a resolution that:
(a) Determines that the claim is a valid claim and removes or modifies land use regulation(s) with respect to the subject property to allow the owner to use the property for a use permitted at the time the owner acquired the property;
(b) Determines that the claim is a valid claim and compensation is due to the claimant in an amount set forth in the council’s resolution;
(c) Determines that the claim is a valid claim and that the city should acquire the property; or
(d) Denies the claim.
(3) The city council’s decision to waive or modify a land use regulation or to compensate the owner shall be based upon consideration of whether the public interest would be better served by compensating the applicant, or by removing or modifying the challenged land use regulation(s) with respect to the subject property.
(4) If the city council removes or modifies the challenged land use regulation, the council may as part of the decision re-impose with respect to the subject property, all of the land use regulations in effect at the time the claimant acquired the property.
(5) A decision by the city council to remove or modify a land use regulation shall be transferable to a future purchaser of the property to the extent required by the Ballot Measure 37.