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HomeMy WebLinkAboutItem 6d. Approve a Mills Act Historical Property Preservation Agreement for the Snyder House at 1406 Morro St (HIST-0386-2024) Item 6d Department: Community Development Cost Center: 4003 For Agenda of: 10/1/2024 Placement: Consent Estimated Time: N/A FROM: Timmi Tway, Community Development Director Prepared By: Walter Oetzell, Assistant Planner SUBJECT: APPROVE A MILLS ACT HISTORICAL PROPERTY PRESERVATION AGREEMENT FOR THE SNYDER HOUSE AT 1406 MORRO STREET (HIST-0386-2024) RECOMMENDATION As recommended by the Cultural Heritage Committee, adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, Cali fornia, approving a Historic Property Preservation Agreement between the City and the owner of the Snyder House at 1406 Morro Street (Application No. HIST-0386-2024).” POLICY CONTEXT The recommended action on this item is supported by historical preservation policies set out in § 3.0 of the Conservation and Open Space Element of the City’s General Plan, particularly Program 3.6.2, regarding participation in financial incentive programs to encourage maintenance and restoration of historic propertie s, and also with the purpose of encouraging private stewardship of historic buildings through incentives, as provided by Section 14.01.010 (B)(3) of the City’s Historic Preservation Ordinance. DISCUSSION The owners of the Snyder House at 1406 Morro Street (Figure 1) submitted an application to enter into a Mills Act Historic Property Preservation Agreement with the City (see Request Letter, Attachment B, and Draft Agreement, Attachment C). The property is located at the southeast corner of Morro and Pismo Streets, in the Old Town Historic District, and is developed with six residential buildings. The Snyder House is located at the corner of the property and is a two-story single-family dwelling built around 1885 (Figure 1), currently accommodating Figure 1: The Snyder House (1406 Morro) Page 25 of 369 Item 6d several rental units. The property was included in the Master Inventory of Historic Structures adopted in 1983 (Resolution No. 5197).1 The Historic Resources Inventory for the building (Attachment D) notes its architectural significance and several of the characteristic features of the dwelling’s architectural style, described as “Victorian Wood Frame with Eastlake Motifs such as its shiplap siding, high - pitched roof, gabled dormers, and bargeboard woodwork attached to the eaves and façade. Also noted is its association with D.D. and Harriet H. Snyder, who operated a store on Higuera Street, and lived in the home in 1904 (Inventory, pg. 2). The Mills Act Program It is the City’s policy that significant historic resources be rehabilitated and preserved (COSE § 3.3). The Mills Act Program is a property tax reduction program for protection of cultural resources that encourages their maintenance and restoration (§ 3.6.2 of the General Plan Conservation and Open Space Element). Participation in the program is limited to Master List Resources; the most unique and important historic resources in terms of age, architectural or historical significance, rarity, or association with important persons or events in the City’s past (HPO § 14.01.050 (A)). Currently, there are 66 properties participating in the program, with the last request (for the Brecheen House at 1133 Pismo) approved by the Council in August, 2024. The City and owners of a Master List Resource enter into an historical property contract under which the owners agree to restore, maintain, and protect the property in accordance with historical preservation standards. Owners may qualify for property tax relief, potentially realizing tax savings of between 40% and 60% per year. A Mills Act Contract has a minimum term of ten years, and is extended annually for an additional year, unless, after the initial term, either the City or the owner, by written notice, decides not to renew the contract. Previous Council or Advisory Body Action On August 26, 2024, the Cultural Heritage Committee reviewed this application for participation in the Mills Act Historic Preservation Program,2 along with the terms of the draft preservation contract, and, by a vote of 7-0, recommended that the Council approve the contract. Public Engagement Public notice of this hearing has been provided to owners and occupants of property near the subject site, and published in The New Times and posted on the City’s website. The agendas for this meeting have been posted at City Hall and online, consistent with adopted notification procedures for development projects. 1 Council Resolution 5197 available at: opengov.slocity.org/WebLink/DocView.aspx?id=27829 2 Cultural Heritage Committee staff report (August 26, 2024) available online at: opengov.slocity.org/WebLink/DocView.aspx?id=198786 Page 26 of 369 Item 6d ENVIRONMENTAL REVIEW Entering into a “Mills Act Contract” with the owners of historical property is not subject to the provisions of the California Environmental Quality Act (CEQA) because it is not a project as defined in CEQA Guidelines § 15378 (Definitions – Project). Implementation of the Mills Act is a government fiscal activity which does not involve commitment to any specific project resulting in a potentially significant physical impact on the environment CEQA Guidelines § 15378 (b)(4)). FISCAL IMPACT Budgeted: No Budget Year: 2024-2025 Funding Identified: No Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $ N/A $ $ $ State Federal Fees Other: Total $ $ 0 $ $ 0 After the Mills Act contract is recorded, the County Assessor values the property by an income capitalization method, following guidelines provided by the State Board of Equalization. Because of the timing and the method of valuing the restricted property, it is difficult to accurately estimate the tax savings and resulting fiscal impacts to the City under a particular historical property contract. However, the Office of Historic Preservation (California Department of Parks and Recreation) estimates that property owners participating in the program may realize property tax savings of between 40% and 60% each year for newly improved or purchased older properties. The City’s property tax revenue will be reduced accordingly. ALTERNATIVES 1. Decline to enter into a Mills Act Historical Property Contract with the property owner. This alternative is not recommended. The contract provides a tax relief incentive that is a tool for achieving the City’s goals for historical preservation. 2. Continue consideration of the request to a future date for additional information or discussion. Page 27 of 369 Item 6d ATTACHMENTS A - Draft Resolution approving a Mills Act Contract for 1406 Morro Street) B - Draft Historic Property Preservation Agreement (HIST-0386-2024) C - Applicant Request Letter (HIST-0386-2024) D - Historic Resources Inventory (1406 Morro) Page 28 of 369 RESOLUTION NO. ____ (2024 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING A HISTORIC PROPERTY PRESERVATION AGREEMENT BETWEEN THE CITY AND THE OWNERS OF THE SNYDER HOUSE AT 1406 MORRO STREET (APPLICATION NO. HIST-0386-2024) WHEREAS, the City Council of the City of San Luis Obispo is authorized by California Government Code Section 50280 et seq. (known as “the Mills Act”) to enter into contracts with the owners of qualified historical properties to provide for appropriate use, maintenance, and rehabilitation such that these historic properties retain their historic characteristics; and WHEREAS, the City Council has adopted Resolution No. 9136 (2000 Series), establishing the Mills Act Historic Property Tax Incentive Program as an ongoing historic preservation program to promote the preservation, maintenance , and rehabilitation of historic resources through financial incentives; and WHEREAS, the City Council of the City of San Luis Obispo designated 1406 Morro Street, described as the Snyder House, as a Master List Historic Resource of the City of San Luis Obispo on August 16, 1983 by adoption of Resolution No. 5197, pursuant to the policies in the City’s Historic Preservation Program Guidelines; and WHEREAS, Fred E. Kelley and Sophia P. Kelley, Trustees of the Kelley Family Trust dated April 13, 2005, are the owners of that certain qualified real property, together with associated structures and improvement thereon, located on Assessor’s Parcel Number 003-541-017, located at 1406 Morro Street, in the City of San Luis Obispo, California, also described as The Snyder House; and WHEREAS, the City and Owners, for their mutual benefit, now desire to enter into an agreement to limit the use of the property to prevent inappropriate alterations and to ensure that character-defining features are preserved and maintained in an exemplary manner, and repairs and improvements are completed as necessary to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Sec. 50280 et seq., and to qualify for an assessment of valuation pursuant to Article 1.9, Sec. 439 et. seq. of the Revenue and Taxation Code; and WHEREAS, the Cultural Heritage Committee of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on August 26, 2024, for the purpose of reviewing the proposed historic property preservation agreement, and recommended that the City enter into the agreement; and Page 29 of 369 Resolution No. _____ (2024 Series) Page 2 R ______ WHEREAS, the City Council conducted a public meeting in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on October 1, 2024, for the purpose of considering approval of the historic property preservation agreement, and has duly considered all evidence, including the record of the Cultural Heritage Committee hearing and recommendation and the evaluation and recommendation by staff; and WHEREAS, notices of said public hearings and meetings were made at the time and in the manner required by law. NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. Based upon all the evidence, the City Council makes the following findings: a) Conservation and Open Space Element Program 3.6.2 states that the City will participate in financial assistance programs such as property tax reduction programs that encourage maintenance and restoration of historic properties. b) The Snyder House, located at 1406 Morro Street, has been recognized as a historic asset in the community by its designation as a Master List Historic Property by the City Council on August 16, 1983 (Resolution 5197). As such, maintaining the structure will meet the City’s goals for historic preservation listed in policies 3.3.1 through 3.3.5 of the Conservation and Open Space Element. SECTION 2. Environmental Determination. The City Council has determined that the above actions do not constitute a project, as defined in California Environmental Quality Act Guidelines § 15378, and are not subject to environmental review. SECTION 3. Historic Property Preservation Agreement Approved. The City Council hereby approves the “Historic Property Preservation Agreement between the City of San Luis Obispo and the Owners of the Historic Property Located at 1406 Morro Street,” to be entered into by the City and the property owners, Fred E. Kelley and Sophia P. Kelley, Trustees of the Kelley Family Trust dated April 13, 2005. SECTION 4. Community Development Director Authorized to Sign Agreement for City. The City Council hereby authorizes the Community Development Director to execute said agreement on behalf of the Council of the City of San Luis Obispo. Page 30 of 369 Resolution No. _____ (2024 Series) Page 3 R ______ SECTION 5. Recordation of the Agreement. No later than twenty (20) days after the parties enter into said agreement, the City Clerk shall cause the agreement to be recorded in the Office of the County Recorder of the County of San Luis Obispo. On motion of Council Member ________________, seconded by Council Member _____________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was passed and adopted this _____ day of___________, 2024. ___________________________ Mayor Erica A. Stewart ATTEST: _________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: __________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington City Clerk Page 31 of 369 Page 32 of 369 HISTORIC PROPERTY PRESERVATION AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE OWNERS OF THE HISTORIC PROPERTY LOCATED AT 1406 MORRO STREET, IN THE CITY AND THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA. THIS AGREEMENT is made and entered into this ________ day of ________ , 2024, by and between the City of San Luis Obispo, a municipal corporation (hereinafter referred to as the “City”), and Fred E. Kelley and Sophia P. Kelley, Trustees of the Kelley Family Trust dated April 13, 2005 (hereinafter referred to as “Owners”), and collectively referred to as the “parties.” Section 1. Description of Preservation Measures. The Owners, their heirs, or assigns hereby agrees to undertake and complete, at their expense, the preservation, maintenance, and improvements measures described in “Exhibit A” attached hereto. Section 2. Effective Date and Term of Agreement. This agreement shall be effective and commence upon recordation and shall remain in effect for an initial term of ten (10) years thereafter. Each year upon the anniversary of the agreement’s effective date, such initial term will automatically be extended as provided in California Government Code Section 50280 through 50290 and in Section 3, below. Section 3. Agreement Renewal and Non-renewal. a. Each year on the anniversary of the effective date of this agreement (hereinafter referred to as “annual renewal date”), a year shall automatically be added to the initial term of this agreement unless written notice of nonrenewal is served as provided herein. b. If the Owners or the City desire in any year not to renew the agreement, the Owners or the City shall serve written notice of nonrenewal of the agreement on the other party. Unless such notice is served by the Owners to the City at least ninety (90) days prior to the annual renewal date, or served by the City to the Owners at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the term of the agreement as provided herein. c. The Owners may make a written protest of the notice. The City may, at any time prior to the annual renewal date, withdraw its notice to the Owners of nonrenewal. d. If either the City or the Owners serves notice to the other party of nonrenewal in any year, the agreement shall remain in effect for the balance of the term then remaining. Section 4. Standards and Conditions. During the term of this agreement, the historic property shall be subject to the following conditions: a. Owners agree to preserve, maintain, and, where necessary, restore or rehabilitate the building and its character-defining features, including: the building’s general Page 33 of 369 Historic Preservation Agreement 1406 Morro Street Page 2 architectural form, style, materials, design, scale, proportions, organization of windows, doors, and other openings; interior architectural elements that are integral to the building’s historic character or significance; exterior materials, coatings, textures, details, mass, roof line, porch, and other aspects of the appearance of the building’s exterior, as described in Exhibit A, to the satisfaction of the Community Development Director or his designee. b. The building’s interior closely relates to the property’s eligibility as a qualified historic property. The Owners agree to allow pre-arranged tours on a limited basis, to the approval of the Community Development Director or his designee. c. All building changes shall comply with applicable City specific plans, City regulations and guidelines, and conform to the rules and regulations of the Office of Historic Preservation of the California Department of Parks and Recreation, namely the U.S. Secretary of the Interior’s Standards for Rehabilitation and Standards and Guidelines for Historic Preservation Projects. Interior remodeling shall retain original, character-defining architectural features such wood details, pillars and arches, special tile work, or architectural ornamentation to the greatest extent possible. d. The Community Development Director shall be notified by the Owners of changes to character-defining exterior features prior to their execution, such as major landscaping projects and tree removals, exterior door or window replacement, repainting, remodeling, or other exterior alterations requiring a building permit. The Owners agree to secure all necessary City approvals and/or permits prior to changing the building’s use or commencing construction work. e. Owners agree that property tax savings resulting from this agreement shall be used for property maintenance and improvements as described in Exhibit A. f. The following are prohibited: demolition or partial demolition of the historic building; exterior alterations or additions not in keeping with the standards listed above; dilapidated, deteriorating, or unrepaired structures such as fences, roofs, doors, walls, windows; outdoor storage of junk, trash, debris, appliances, or furniture visible from a public way; or any device, decoration, structure, or vegetation which is unsightly due to lack of maintenance or because such feature adversely affects, or is visually incompatible with, the property’s recognized historic character, significance, and design as determined by the Community Development Director. g. Owners shall allow reasonable periodic examination, by prior appointment, of the interior and exterior of the historic property by representatives of the County Assessor, the State Department of Parks and Recreation, the State Board of Equalization, and the City as may be necessary to determine the owners’ compliance with the terms and provisions of this agreement. Page 34 of 369 Historic Preservation Agreement 1406 Morro Street Page 3 Section 5. Furnishing of Information. The Owners hereby agree to furnish any and all information requested by the City which may be necessary or advisable to determine compliance with the terms and provisions of this agreement. Section 6. Cancellation. a. The City, following a duly-noticed public hearing by the City Council as set forth in Government Code Section 50285, may cancel this agreement if it determines that the Owners have breached any of the conditions of this agreement or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified historic property; or if the City determines that the Owners have failed to preserve, maintain, or rehabilitate the property in the manner specified in Section 4 of this agreement. If a contract is cancelled because of failure of the Owners to preserve, maintain, and rehabilitate the historic property as specified above, the Owners shall pay a cancellation fee to the State Controller as set forth in Government Code Section 50286, which states that the fee shall be 12 ½% of the full value of the property at the time of cancellation without regard to any restriction imposed with this agreement. b. If the historic building is acquired by eminent domain and the City Council determines that the acquisition frustrates the purpose of the agreement, the agreement shall be cancelled and no fee imposed, as specified in Government Code Section 50288. Section 7. Enforcement of Agreement. a. In lieu of and/or in addition to any provisions to cancel the agreement as referenced herein, the City may specifically enforce, or enjoin the breach of, the terms of the agreement. In the event of a default, under the provisions to cancel the agreement by the Owners, the City shall give written notice of violation to the Owners by registered or certified mail addressed to the address stated in this agreement. If such a violation is not corrected to the reasonable satisfaction of the Community Development Director or designee within thirty (30) days thereafter; or if not corrected within such a reasonable time as may be required to cure the breach or default of said breach; or if the default cannot be cured within thirty (30) days (provided that acts to cure the breach or default may be commenced within thirty (30) days and shall thereafter be diligently pursued to completion by the Owners); then the City may, without further notice, declare a default under the terms of this agreement and may bring any action necessary to specifically enforce the obligations of the Owners growing out of the terms of this agreement, apply to any court, state or federal, for injunctive relief against any violation by the owners or apply for such relief as may be appropriate. b. The City does not waive any claim of default by the Owners if the City does not enforce or cancel this agreement. All other remedies at law or in equity which are not otherwise provided for in this agreement or in the City’s regulations governing Page 35 of 369 Historic Preservation Agreement 1406 Morro Street Page 4 historic properties are available to the City to pursue in the event that there is a breach or default under this agreement. No waiver by the City of any breach or default under this agreement shall be deemed to be a waiver of any other subsequent breach thereof or default herein under. c. By mutual agreement, City and Owners may enter into mediation or binding arbitration to resolve disputes or grievances growing out of this contract. Section 8. Binding Effect of Agreement. The Owners hereby subject the historic building located at 1406 Morro Street, San Luis Obispo, California, Assessors Parcel Number 003-541-017, to the covenants, reservations, and restrictions as set forth in this agreement. The City and Owners hereby declare their specific intent that the covenants, reservations, and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon the Owners’ successors and assigns in title or interest to the historic property. Every contract, deed, or other instrument hereinafter executed, covering or conveying the historic property or any portion thereof, shall conclusively be held to have been executed, delivered, and accepted subject to the covenants, reservations, and restrictions expressed in this agreement regardless of whether such covenants, restrictions, and reservations are set forth in such contract, deed, or other instrument. Section 9. Notice. Any notice required by the terms of this agreement shall be sent to the address of the respective parties as specified below or at other addresses that may be later specified by the parties hereto. To City: Community Development Director City of San Luis Obispo 919 Palm Street San Luis Obispo, CA 93401 To Owners: Fred E. Kelly and Sophia P. Kelley, Trustees The Kelley Family Trust dated April 13, 2005 1323 Mill St San Luis Obispo CA 93405 Section 10. General Provisions. a. None of the terms, provisions, or conditions of this agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors, or assigns, nor shall such terms, provisions, or conditions cause them to be considered joint ventures or members of any joint enterprise. b. The Owners agree to hold the City and its elected and appointed officials, officers, agents, and employees harmless from liability for damage or from claims for damage for personal injuries, including death, and claims for property damage which may arise from the direct or indirect use or activities of the Owners, or from Page 36 of 369 Historic Preservation Agreement 1406 Morro Street Page 5 those of their contractor, subcontractor, agent, employee, or other person acting on the Owners’ behalf which relates to the use, operation, maintenance, or improvement of the historic property. The Owners hereby agree to and shall defend the City and its elected and appointed officials, officers, agents, and employees with respect to any and all claims or actions for damages caused by, or alleged to have been caused by, reason of the Owners’ activities in connection with the historic property, excepting however any such claims or actions which are the result of the sole negligence or willful misconduct of City, its officers, agents, or employees. c. This hold harmless provision applies to all damages and claims for damages suffered, or alleged to have been suffered, and costs of defense incurred, by reason of the operations referred to in this agreement regardless of whether or not the City prepared, supplied, or approved the plans, specifications, or other documents for the historic property. d. All of the agreements, rights, covenants, reservations, and restrictions contained in this agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns, and all persons acquiring any part or portion of the historic property, whether by operation of law or in any manner whatsoever. e. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations, or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorney’s fees to be fixed by the court, in addition to court costs and other relief ordered by the court. f. In the event that any of the provisions of this agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be affected thereby. g. This agreement shall be construed and governed in accordance with the laws of the State of California. Section 11. Amendments. This agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. Section 12. Recordation and Fees. No later than twenty (20) days after the parties enter into this agreement, the City shall cause this agreement to be recorded in the office of the County Recorder of the County of San Luis Obispo. Participation in the program shall be at no cost to the Owners; however the City may charge reasonable and necessary fees to recover direct costs of executing, recording, and administering the historical property contracts. Page 37 of 369 Historic Preservation Agreement 1406 Morro Street Page 6 IN WITNESS WHEREOF, the City and Owners have executed this agreement on the day and year written above. THE KELLEY FAMILY TRUST DATED APRIL 13, 2005 ____________________________________ ______________________________ Fred E. Kelley, Trustee Date ____________________________________ ______________________________ Sophia P. Kelley, Trustee Date CITY OF SAN LUIS OBISPO ____________________________________ ______________________________ Mayor Erica A. Stewart Date ATTEST: ______________________________ Teresa Purrington, City Clerk APPROVED AS TO FORM: ______________________________ J. Christine Dietrick, City Attorney ALL SIGNATURES MUST BE NOTARIZED Page 38 of 369 Historic Preservation Agreement 1406 Morro Street Page 7 EXHIBIT A MAINTENANCE AND IMPROVEMENT MEASURES FOR THE SNYDER HOUSE LOCATED AT 1406 MORRO STREET, SAN LUIS OBISPO, CALIFORNIA 1. Owners shall preserve, maintain, and repair the historic building, including its character-defining architectural features in good condition, to the satisfaction of the Community Development Director or designee, pursuant to a Mills Act Pre servation Contract with the City of San Luis Obispo for property located at 1406 Morro Street. Character-defining features shall include, but are not limited to: roof, eaves, dormers, trim, porches, walls and siding, architectural detailing, doors and wind ows, window screens and shutters, balustrades and railings, foundations, and surface treatments. 2. Owners agree to make the following improvements and/or repairs during the term of this contract but in no case later than ten (10) years from the contract date. All changes or repairs shall be consistent with the City’s Historic Preservation Ordinance and the Secretary of the Interior’s Standards for the Treatment of Historic Properties:  Replacement of roofing materials and gutters  Repair of trim detail (under gutters)  Landscape maintenance, including trimming of trees  Interior and exterior painting  Waterproofing around claw-footed (original) bathtubs  Window maintenance  Interior structural renovations  General maintenance and upkeep THE KELLEY FAMILY TRUST DATED APRIL 13, 2005 ____________________________________ ______________________________ Fred E. Kelley, Trustee Date ____________________________________ ______________________________ Sophia P. Kelley, Trustee Date Page 39 of 369 Page 40 of 369 Hello, Our names are Fred and Sophia Kelley and we own the Snyder House, a historical home located at 1406 Morro Street, at the corner of Morro and Pismo downtown. We believe this building qualifies for Mills Act Status and are therefore applying as such. Built in 1885, the Snyder House boasts vernacular architecture consisting of its Victorian wood frame with Eastlake motifs. lt is an L-shaped, 2-story wood house with 150' of frontage by 180' of depth. lt has a high pitch roof with vintage gable dormers. This legacy property once belonged to D.D. and Harriet Snyder who supplied necessary goods to the San Luis Obispo community by running a store at 760 Higuera. We imagine they may be related to local dentist G.A. Snyder, after whom the Snyder Building was named. Later, it was home to Mrs. Marion Kohler who served to educate the local youth as a teacher. This beautifully-restored gem preserves the integrity of the Old Historic Town neighborhood by conveying a glimpse into SLO's past to everyone heading downtown on Morro or Pismo St. We love it and are very passionate about preserving it. The home is currently on the "Master's List" and we hope to have it added to the Mills Act list. We have attached a list of Planned lmprovements and a timeline of what we plan to do in the next few years. Thank you for your time and consideration Best, Sophia and Fred Kelley Page 41 of 369 PLANNED IMPROVEMENTS Property: 1406 Morro Street, San Luis Obispo, CA 93401 Item Replace roof Replace gutters Repair trim detail under gutters Trim trees Update landscaping Landscape lighting lnterior painting Exterior painting New fence in back by parking lot Waterproof around daw tubs to keep original tubs Maintenance on original windows lnterior structural renovations Itam completion vear 2024 2424 2025 2425 2026 2026-2027 2027 2027-2028 2025 2A25-2026 2027 2025-2028 Page 42 of 369 Page 43 of 369 Page 44 of 369