HomeMy WebLinkAboutItem 5f - Approve a Mills Act Historical Property Preservation Agreement for 1116 Pismo Street Item 5f
Department: Community Development
Cost Center: 4003
For Agenda of: 6/3/2025
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 “VOLLMER HOUSE” AT 1116 PISMO STREET
(HIST-0151-2025)
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, California, approving a
Historic Property Preservation Agreement between the City and the owners of the Vollmer
House at 1116 Pismo Street (Application No. HIST -0151-2025)” (Attachment A)
POLICY CONTEXT
The recommended action on this item is supported by historical preservation policies set
out in Section 3 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 properties, 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 Vollmer House at
1116 Pismo Street applied to enter
into a Mills Act historical property
contract with the City (see Draft
Agreement and Request Letter,
Attachments B and C).
The property is located on the north
side of Pismo Street, about 150 feet
east of Santa Rosa Street, in the Old
Town Historic District. It is
developed with a two-story single-
family dwelling, known as the
Vollmer House (see Figure 1), built Figure 1: Vollmer House (1116 Pismo)
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Item 5f
in 1912. 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 “Bungaloid,” such as its clapboard siding, medium-pitched roof, larger
dormer, and exposed rafters, brackets and purlins. The architect is noted as Charles
McKenzie of Wolf and Wolf, San Jose) and H. R. Lyman as builder. Also noted is its
association with Ernest and Marguerite Vollmer, partners in A. McAlister and Co., and
owners of commercial property in the city, for whom the house was built (Inventory, pg. 2).
As described in the applicant’s request letter (Attachment C), several renovation and
maintenance items are planned to be completed within the life of the contract:
1. Replace or repair roof
2. Fix or replace dry rot issues including fumigation
3. Repaint exteriors and interiors and maintain
4. Maintain the historical look including the existing windows repair or, where
necessary, replacement
5. Improve foundation as needed
The Mills Act Program
It is the City’s policy that significant historic resources be rehabilitated and preserved
(COSE § 3.3.1). The Mills Act Program is a property tax reduction program for protection
of cultural resources that encourages their maintenance and restoration (COSE § 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 Snyder House at
1406 Morro) approved by the Council in October, 2024.
The City and owners of a Master List Resource enter into a 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.
1 Council Resolution 5197 available at: opengov.slocity.org/WebLink/DocView.aspx?id=27829
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Previous Council or Advisory Body Action
On April 28, 2025, 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 vot e of 5-0 (two Members absent), recommended
that the City Council approve the contract.
Public Engagement
Public notice of this hearing has been provided to owners and occupants of property near
the subject site, published in The New Times, and posted on the City’s website. The
agenda for this meeting has been posted at City Hall and online, consistent with adopted
notification procedures.
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 which may result in a potentially significant physical impact on the
environment (Guidelines § 15378 (b)(4)).
FISCAL IMPACT
Budgeted: No Budget Year: 2024-25
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, a recent summary provided in
2 Cultural Heritage Committee staff report (April 28, 2025) available online at:
opengov.slocity.org/WebLink/DocView.aspx?id=207942
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2024 by the County Assessor indicated that the total reduction in annual tax revenue to
the City amounted to approximately $67,000 for a total of 65 properties on Mills Act
contracts at the time, or about $1,000 per property.
ALTERNATIVES
1. Decline to enter into a Mills Act Historical Property Contract with the property
owner. Denying the request to enter into a Mills Act contract would make unavailable
an effective incentive for the historic property’s long-term preservation. The Mills Act
Program is a financial assistance program identified in the General Plan for
encouraging maintenance and restoration of historic properties.
2. Continue consideration of the request to a future date for additional information
or discussion. If the Council wishes to continue consideration of this item to a future
date, staff requests that the Council detail the specific information that should be
provided for discussion at the future meeting.
ATTACHMENTS
A - Draft Resolution approving a Mills Act Contract for 1116 Pismo Street
B –Draft Historic Property Preservation Agreement (HIST -0151-2025)
C - Applicant Request Letter (HIST-0151-2025)
D - Historic Resources Inventory (1116 Pismo)
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RESOLUTION NO. ____ (2025 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 VOLLMER HOUSE AT 1116 PISMO STREET
(APPLICATION NO. HIST-0151-2025)
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
1116 Pismo Street, described as the Vollmer 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, Christopher David Frago and Heidi A. Howland-Frago are the owners
of that certain qualified real property, together with associated structures and
improvement thereon, located on Assessor’s Parcel Number 002-446-019, located at
1116 Pismo Street, in the City of San Luis Obispo, California, also described as The
Vollmer 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 April 28, 2025, for the purpose of reviewing the proposed
historic property preservation agreement, and recommended that the City enter into the
agreement; and
WHEREAS, the City Council conducted a public meeting in the Council Chamber
of City Hall, 990 Palm Street, San Luis Obispo, California, on June 3, 2025, for the
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Resolution No. _____ (2025 Series) Page 2
R ______
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 Vollmer House, located at 1116 Pismo 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 1116 Pismo
Street,” to be entered into by the City and the property owner s, Christopher David Frago
and Heidi A. Howland-Frago, attached hereto as “Exhibit A.”
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.
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.
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Resolution No. _____ (2025 Series) Page 3
R ______
On motion of Council Member , seconded by Council Member , and on the
following roll call vote:
AYES:
NOES:
REFRAIN:
ABSENT:
The foregoing resolution was passed and adopted this 3rd day of June 2025.
____________________________________
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, this ______ day of ______________, 2025.
____________________________________
Teresa Purrington
City Clerk
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HISTORIC PROPERTY PRESERVATION AGREEMENT BETWEEN
THE CITY OF SAN LUIS OBISPO AND THE OWNERS OF THE HISTORIC
PROPERTY LOCATED AT 1116 PISMO STREET, IN THE CITY AND THE COUNTY
OF SAN LUIS OBISPO, STATE OF CALIFORNIA.
THIS AGREEMENT is made and entered into this ________ day of ________ , 2025, by and
between the City of San Luis Obispo, a municipal corporation (hereinafter referred to as the
“City”), and Christopher David Frago and Heidi A. Howland-Frago (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
agree 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 automaticall y 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
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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.
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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
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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 1116 Pismo Street, San Luis Obispo, California, Assessors Parcel Number 002-446-019,
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: Christopher David Frago
Heidi A. Howland-Frago
PO Box 84
San Luis Obispo CA 93406
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
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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.
IN WITNESS WHEREOF, the City and Owners have executed this agreement on the day
and year written above.
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OWNERS
____________________________________ ______________________________
Christopher David Frago Date
____________________________________ ______________________________
Heidi A. Howland-Frago Date
CITY OF SAN LUIS OBISPO
____________________________________ ______________________________
Timothea Tway Date
Community Development Director
Pursuant to authority conferred by Resolution [NNNN] (2025 Series)
ATTEST:
______________________________
Teresa Purrington, City Clerk
APPROVED AS TO FORM:
______________________________
Christine Dietrick, City Attorney
ALL SIGNATURES MUST BE NOTARIZED
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EXHIBIT A
MAINTENANCE AND IMPROVEMENT MEASURES FOR THE VOLLMER HOUSE
LOCATED AT 1116 PISMO 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 Preservation
Contract with the City of San Luis Obispo for property located at 1116 Pismo Street.
Character-defining features shall include, but are not limited to: roof, eaves, dormers, trim,
porches, walls and siding, architectural detailing, doors and windows, 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:
Repair or, as necessary, replace roofing materials
Repair dry rot of materials
Interior and exterior painting
Window maintenance or, where necessary, replacement
Foundation repair
General maintenance and upkeep
OWNERS
____________________________________ ______________________________
Christopher David Frago Date
____________________________________ ______________________________
Heidi A. Howland-Frago Date
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