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HomeMy WebLinkAbout12/15/1998, C-2 - APPROVAL OF MILLS ACT CONTRACTS UNDER THE HISTORIC PROPERTY TAX INCENTIVE PROGRAM council U..fimm" j agenda uEpout °ZL e- 1 C I T Y OF SAN LUIS O B I S P O FROM: Arnold Jonas, Community Development Direclar Prepared By: Jeff Hook, Associate P4 SUBJECT': Approval of Mills Act Contracts under the Historic Property Tax Incentive Program. CAO RECOMMENDATION: Adopt resolutions approving Mills Act contracts for historic properties located at 1725 Santa Barbara Street, 1426 Broad Street, 1117/1119 Marsh Street, and 599 Pismo Street. DISCUSSION Background In October 1996 the City Council adopted Resolution No. 8589, establishing a pilot program to encourage historic preservation. The program, based on a State law called the "Mills Act", allows cities to enter into contracts with property owners to ensure that historic properties are preserved in good condition and in some cases,improved or restored. In return,property owners may qualify for a lower property valuation and reduced property taxes. The pilot program authorized up to 15 historic preservation contracts, with the intent of evaluating the program after one year of operation. Following Council approval, staff worked with the owners of 15 historic properties to finalize their lists of planned maintenance and/or improvements and prepare the Mills Act contracts. The initial 15 contracts were recorded and are in effect. In September, the Council reviewed the program and adopted Resolution No. 8843, extending the pilot program and authorizing the City to enter into three additional Mills Act contracts. Council members wanted to allow additional time to evaluate the program's effectiveness while accommodating three property owners who were already on the "waiting list." Those three property owners are now ready to enter into Mills Act Contracts, as is one additional property owner who submitted a letter of interest shortly after the Council's September action and would like to be included in this round of contracts. This additional property is located at 1426 Broad Street. Council's September action allowed the City to enter three additional Mills Act contracts because at the time, three requests were pending. There was no intent to exclude a specific property; Council members merely wanted to hold the number of new contracts to a minimum until the program's effectiveness could be evaluated. Given the timing of this fourth property owner's request and the fact that no more than four can be accommodated within the County's submittal deadline this year, Council may wish to consider approving this additional contract. Mills Act Contracts Historic Preservation is an important goal of the City's General Plan. By providing a financial incentive, the Mills Act Program is one of the most effective preservation tools available to achieve ex-1 Council Staff Report- Mills Act Contracts Page 2 that goal and encourage the preservation of heritage properties. Only commercial and residential properties on the Master List of Historic Resources are eligible for the program. The Mills Act contracts were prepared using standard language provided by the State Historic Preservation Office. The contracts differ substantively only in Exhibits A and B, which describe the historic property and the property owners' planned maintenance and improvement programs. Standard features of the contracts include: • the County Tax Assessor assesses the historic property's value using a"Capitalization of Income" method. This assessment method can often result in significant property tax savings,particularly for properties acquired in the 1980s or 1990s. If the contract is canceled, the assessment is gradually increased to market value basis over the remaining contract term. • The property owner must promise to preserve the building and to use the tax savings to maintain and/or improve the historic building to enhance its historical value, exterior appearance, structural condition,or longevity. • The contract is recorded, and is binding on subsequent owners, heirs, or assigns until the agreement is canceled.There is a significant financial penalty for breach of the historic contract. • Mills Act Contracts have a minimum 10-year term. The agreement is self-renewing annually for additional one-year terms, so there is always 10 years remaining on the contract until the owner or City decides not to renew the contract. Once written notice of non-renewal is given, the contact will remain in effect for the balance of the term remaining since the original contract execution or since the last renewal date, as the case may be. The agreement may be amended by mutual consent of the City and property owner. • Building changes are possible under the contract; however changes must comply with all City requirements and with the Secretary of the Interior's Standards for Historic Preservation Projects, with the guiding objective being the preservation of the building's original historical character and significance. FISCAL IMPACT Approval of the agreement will not have any significant fiscal impact. Attachments: -Draft Council Resolutions and Sample Mills Act Contract -Council Resolutions No. 8843 and 8589 (1996 and 1998 Series) Council Reading File: Mills Act Contracts imr,:MiUsconl l-98.rpt Cz- z. RESOLUTION NO. (1998 Series) APPROVING AN HISTORIC PROPERTY PRESERVATION AGREEMENT BETWEEN THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO,IN THE COUNTY OF SAN LUIS OBISPO,STATE OF CALIFORNIA,AND ASTRID I GALLAGHER,OWNER OF A DESIGNATED HISTORIC RESOURCE AT 1725 SANTA BARBARA STREET,IN SAN LUIS OBISPO. 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. 8589 (1996 Series), establishing a pilot program to implement General Plan policies and to encourage the preservation, restoration and maintenance of historic properties through the Mills Act Program, and adopted Resolution No. 8843 (1998 Series),extending said program;and WHEREAS, the owner possesses fee title in and to that certain qualified real property, together with associated structures and improvements thereon, located on Assessor's Parcel Number 003-552-008, located at 1725 Santa Barbara Street, San Luis Obispo, California 93401- 4451, also described as The Alexander Galewski House (Hereinafter referred to as the "historic Property");and WHEREAS,the City Council of the City of San Luis Obispo has designated this property as a historic resource of the City of San Luis Obispo pursuant to the policies in the City's Historic Preservation Program Guidelines;and WHEREAS, the City and owner, for their mutual benefit, now desire to enter into this 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/or 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. sea. of the Revenue and Taxation Code. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: SECTION 1. Historic Preservation Agreement approved. The City Council hereby approves the attached historic preservation agreement between the City of San Luis Obispo and the owner. SECTION 2. Mayor Authorized to Sign Agreement for City. The City Council hereby authorizes the Mayor to execute said agreement on behalf of the Council of the City of San Luis Obispo. Council Resolution No. (1998 Series) Page 2 SECTION 3. Environmental Determination The City Council has determined that this historic preservation agreement is not a project, as defined by Section 15378 of the California Environmental Quality Act and is exempt from environmental review. SECTION 4. Recordation of the Agreement No later than twenty(20) days after the parties execute and enter into said agreement,the City Clerk shall cause this agreement to be recorded in the Office of the County Recorder of the County of San Luis Obispo. Upon motion of . seconded by ,and on the following roll call vote: AYES: NOES: ABSENT: The foregoing Resolution was adopted this . 1998. Mayor Allen K Settle ATTEST: Lee Price,City Clerk APPROVED: olenfColAttorney If f0p cz-� RESOLUTION NO. (1998 Series) APPROVING AN HISTORIC PROPERTY PRESERVATION AGREEMENT BETWEEN THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO,IN THE COUNTY OF SAN LUIS OBISPO,STATE OF CALIFORNIA,AND MARY ADRIENNE RILEY,OWNER OF A DESIGNATED HISTORIC RESOURCE AT 1426 BROAD STREET,IN SAN LUIS OBISPO. 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. 8589 (1996 Series), establishing a pilot program to implement General Plan policies and to encourage the preservation, restoration and maintenance of historic properties through the Mills Act Program, and adopted Resolution No. 8843 (1998 Series),extending said program; and WHEREAS, the owner possesses fee title in and to that certain qualified real property, together with associated structures and improvements thereon, located on Assessor's Parcel Number 003-533-007, located at 1426 Broad Street, San Luis Obispo, California 93401, also described as The Dutton House(Hereinafter referred to as the"historic property");and WHEREAS,the City Council of the City of San Luis Obispo has designated this property as a historic resource of the City of San Luis Obispo pursuant to the policies in the City's Historic Preservation Program Guidelines;and WHEREAS, the City and owner, for their mutual benefit, now desire to enter into this 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/or improvements are completed as necessary to cavy 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. M. of the Revenue and Taxation Code. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: SECTION 1. Historic Preservation Agreement approved. The City Council hereby approves the attached historic preservation agreement between the City of San Luis Obispo and the owner. SECTION 2. Mayor Authorized to Sign Agreement for City. The City Council hereby authorizes the Mayor to execute said agreement on behalf of the Council of the City of San Luis Obispo. ca.-5 Council Resolution No. (1998 Series) Page 2 SECTION 3. Environmental Determination. The City Council has determined that this historic preservation agreement is not a project, as defined by Section 15378 of the California Environmental Quality Act and is exempt from environmental review. SECTION 4. Recordation of the Agreement. No later than twenty(20)days after the parties execute and enter into said agreement,the City Clerk shall cause this agreement to be recorded in the Office of the County Recorder of the County of San Luis Obispo. Upon motion of , seconded by ,and on the following roll call vote: AYES: NOES: ABSENT: The foregoing Resolution was adopted this . 1998. Mayor Allen K Settle ATTEST: Lee Price,City Clerk APPROVED: /(ffr#fbrg ityy ttomey cz-� RESOLUTION NO. (1998 Series) APPROVING AN HISTORIC PROPERTY PRESERVATION AGREEMENT BETWEEN THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO,IN THE COUNTY OF SAN LUIS OBISPO,STATE OF CALIFORNIA,AND LORILEE M. SELVAGGIO,OWNER OF A DESIGNATED HISTORIC RESOURCE AT 1117 AND 1119 MARSH STREET,IN SAN LUIS OBISPO. 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. 8589 (1996 Series), establishing a pilot program to implement General Plan policies and to encourage the preservation, restoration and maintenance of historic properties through the Mills Act Program, and adopted Resolution No. 8843 (1998 Series),extending said program;and WHEREAS, the owner possesses fee title in and to that certain qualified mal property, together with associated structures and improvements thereon, located on Assessor's Parcel Number 002-445-003, located at 1117 and 1119 Marsh Street, San Luis Obispo, California 93401-3323, also described as The Esquar House (Hereinafter referred to as the "historic property"); and WHEREAS, the City Council of the City of San Luis Obispo has designated this property as a historic resource of the City of San Luis Obispo pursuant to the policies in the City s Historic Preservation Program Guidelines;and WHEREAS, the City and owner, for their mutual benefit, now desire to enter into this 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/or improvements are completed as necessary to cant' 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_ sea. of the Revenue and Taxation Code. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: SECTION 1. Historic Preservation Agreement approved. The City Council hereby approves the attached historic preservation agreement between the City of San Luis Obispo and the owner. SECTION 2. Mayor Authorized to Sign Agreement for City. The City Council hereby authorizes the Mayor to execute said agreement on behalf of the Council of the City of San Luis Obispo. C 2- 7 Council Resolution No. (1998 Series) Page 2 SECTION 3. Environmental Determination. The City Council has determined that this historic preservation agreement is not a project, as defined by Section 15378 of the California Environmental Quality Act and is exempt from environmental review. SECTION 4. Recordation of the Agreement. No later than twenty (20)days after the parties execute and enter into said agreement,the City Clerk shall cause this agreement to be recorded in the Office of the County Recorder of the County of San Luis Obispo. Upon motion of . seconded by ,and on the following roll call vote: AYES: NOES: ABSENT: The foregoing Resolution was adopted this . 1998. Mayor Allen K Settle ATTEST: Lee Price, City Clerk APPROVED: or ns ,C' 1Attomey n� _s RESOLUTION NO. (1998 Series) APPROVING AN HISTORIC PROPERTY PRESERVATION AGREEMENT BETWEEN THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO,IN THE COUNTY OF SAN LUIS OBISPO,STATE OF CALIFORNIA,AND RICHARD AND ADIAN LENZ,OWNERS OF A DESIGNATED HISTORIC RESOURCE AT 559 PISMO STREET,IN SAN LUIS OBISPO. 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. 8589 (1996 Series), establishing a pilot program to implement General Plan policies and to encourage the preservation, restoration and maintenance of historic properties through the Mills Act Program; and Resolution No. 8843 (1998 Series),extending said program; and WHEREAS, the owner possesses fee title in and to that certain qualified real property, together with associated structures and improvements thereon, located on Assessor's Parcel Number 003-615-016, located at 559 Pismo Street, San Luis Obispo, California 93401, also described as The Biddle House(Hereinafter referred to as the"historic property");and WHEREAS, the City Council of the City of San Luis Obispo has designated this property as a historic resource of the City of San Luis Obispo pursuant to the policies in the City's Historic Preservation Program Guidelines;and WHEREAS, the City and owner, for their mutual benefit, now desire to enter into this 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/or 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. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: SECTION 1. Historic Preservation Agreement approved. The City Council hereby approves the attached historic preservation agreement between the City of San Luis Obispo and the owner. SECTION 2. Mayor Authorized to Sign Agreement for City. The City Council hereby authorizes the Mayor to execute said agreement on behalf of the Council of the City of San Luis Obispo. C.1- 9 Council Resolution No. (1998 Series) Page 2 SECTION 3. Environmental Determination. The City Council has determined that this historic preservation agreement is not a project,as defined by Section 15378 of the California Environmental Quality Act and is exempt from environmental review. SECTION 4. Recordation of the Agreement. No later than twenty (20) days after the parties execute and enter into said agreement,the City Clerk shall cause this agreement to be recorded in the Office of the County Recorder of the County of San Luis Obispo. Upon motion of , seconded by ,and on the following roll call vote: AYES: NOES: ABSENT: The foregoing Resolution was adopted this . 1998. Mayor Allen K Settle ATTEST: Lee Price,City Clerk APPROVED: �64'1 -OLA4xa� J org ,C' Attorney C2,-10 HISTORIC PROPERTY PRESERVATION AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE OWNER OF HISTORIC PROPERTY LOCATED AT 559 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 . 1998,by and between the City of San Luis Obispo,a municipal corporation(hereinafter referred to as the "City"),and Richard H. and Adian M.Lenz. (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 improvement 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 desires 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 property and its character-defining features, including: the building's general architectural form, style, materials, design,scale,proportions,organization of windows, U-11 Historic Property Agreement Page 2 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 B,and as existing at the time this contract was entered into,to the satisfaction of the Community Development Director or his designee. B. If 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 as oak and mahogany details,pillars and arches, original hardware and fixtures, special tilework 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 commencing 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 or accessory buildings;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 pet iodic 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. Historic Property Agreement Page 3 Section 5. Furnishing of Information. The Owners hereby agree to famish 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 have 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 Owner has failed to preserve,maintain or rehabilitate the property in the manner specified in Section 4 of this agreement. If a contract is canceled because of failure of the Owners to preserve,maintain,and rehabilitate the historic property as specified above,the Owner 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 1/2% 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 property is acquired by eminent domain and the City Council determines that the acquisition frustrates the purpose of the agreement,the agreement shall be canceled and no fee imposed,as specified in Goverment 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,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. C2.- i3 Historic Property Agreement Page 4 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 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 property located at 559 Pismo Street, San Luis Obispo,California,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 990 Palm Street San Luis Obispo, CA 93401 To Owners: Richard H. and Adian M.Lenz 3515 Highland Avenue Manhattan Beach, CA 90266 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. r .7 -r4 Historic Property Agreement Page 5 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 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 cause 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 1emaining 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. cz- �s Historic Property Agreement Page 6 Section 12. Recordation and Fees. No later than twenty (20)days after the parties execute and 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 the Owners have executed this agreement on the day and year written above. CITY OF SAN LUIS OBISPO Allen K Settle,Mayor Date OWNERS Richard H. Lenz Date Adian M. Lenz Date STATE OF CALIFORNIA ) ) ss. COUNTY OF SAN LUIS OBISPO ) On this day of 1998,before me,the undersigned,a Notary Public in and for said State,personally appeared 'known to me to be the mayor of the City of San Luis Obispo, a municipal corporation existing and organized under the laws of the State of California. Witness my hand and official seal. C.Z-�6 EXHIBIT A MAINTENANCE AND IM1PROVEMENT MEASURES FOR PROPERTY LOCATED AT 559 PISMO STREET,SAN LUIS OBISPO,CALIFORNIA. 1. Owner 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 559 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. Owner agrees to follow the following maintenance program and make the following improvements and/or repairs during the term of this contract,but in no case later than ten years from the date of recording the contract with the County Recorder. All changes or repairs shall be consistent with the City's Historic Preservation Program Guidelines and the Secretary of the Interior's Standards for Historic Preservation Projects: a. Restore and paint the ornamental iron fence atop the granite wall along Pismo Street, within 1 year of recording the contract. b. Complete restoration of the Queen Anne style porch,including ballustrades and raillings,within 2 years of recording the contract. C. Install period stone veneer on the exposed concrete foundation,to match original, within 4 years of recording the contract. d. Install concrete/brick walkways,Victorian period landscaping and an irrigation system,within six years of recording the contract. e. Continue a high level of building and landscape maintenance,which will entail exterior repainting of the building within ten years of recording the contract. 3. Property shall be maintained in accordance with Zoning Regulations,and with the City's Property Maintenance Standards. OWNERS Richard H.Lenz Date Adian M.Lenz Date !WLMi =1-9s.0 cz- i' VICINITY MAP ARC 90-119 fi hen 'r'' � `♦� p 4 0*P - ,6} — '$ `�" 2 a - H o m p , 4 1fP f n'��� • O si S, 'O pa's v �O � r► p F_ H H - O .,. ,4i;r a R_ Z +r o n� y .11 190 AN n r7i! O . O meq' R-2- I fibf .�• +� ' O O� O O ^'J - - - r 7 _ Ilk EXHIBIT Z Ser. No. 0090-03R HAGS_ HAER_ NR SHL Loc_ UTM: A 10/712;,_j%39051 HISTORIC RESOURCES INVENTORY C D IDENTIFICATION 1. Common name. Biddle House 2. Historic name: Biddle House 3. Street or rural address: 559 Pismo Cit% San Luis Obispo - Zip 93401 County San Luis Obispo 4. Parcel number: 03-615-15 S. Present Owner: Northincrton, H.H. and E.A. Address: 572 Islay Street City San Luis Obist)o Zip 93401 Ownership is: Public Private R 6. Present Use: Residential Original use: Residential DESCRIPTION 7a. Architectural style: Victorian Carpenter Gothic Revival w/ Eastern Stick motifs 7b. Briefly describe the present physical description of the site or structure and describe any major alterations from its original condition: This three story irregular shaped structure on a raised stone foundation with steeply pitched gables covered with composition shingles. The house has a variety of influences: Queen Anne in the irregualr floor plan and details in the gable ends. Eastern Stick and Carpenter Gothic are also seen in details, the verandah is Queen Anne; curving around and projecting gables. Carpenter Gothic in the porch posts and details along eaves and in stickwork. One projecting side gable is typical of a northern European influence with gabled dormer projecting out over a hipped roofed two story bay. Dormer is supported by two stickwork brackets. { 8. Construction date: P .:= Estimated Factual 1889-9 ' 9. Architect Unknown 10. Builder Unknown 11. Approx. property size lin feet) Frontage 19n' Depth -1��— or approx. acreage 12. Date(s) of enclosed pnotograph(s) December 1982 DPR 523 (Rev.4179) C2--r9 13. Condition: Excellent x Good Fair_ Deteriorated No longer in existence 14. Alterations: 15. Surroundings: (Check more than one if necessary) Open land _Scattered buildings_Densely built-up Residential --j--Industrial Commercial Other: 16. Threats to site: None knownPrivate development_ Zoning Vandalism Public Works project Other: 17. Is the structure: On its original site? Moved? Unknown? 18. Related features: SIGNIFICANCE 19. Briefly state historical and/or architectural importance (include dates,events,and persons associated with the site.) This three story "high Victorian" house was constructed between 1889 and 1897 for the widow of John Biddle. He died in1891. The Biddles were an influential ranching family in .the county. Mrs. Biddle and her children occupied a house in back of where the present structure now stands. The Biddle house is important for both its historical association with a prominent family and its meritorious architecture, the style of which incorporates profuse stick motifs. Its actual design, however, is proto- typically Victorian-Carpenter Gothic Revival, in particular. The detailing is largely Eastlake and Queen Anne, such as the spindled porch. Of note is the fact that this house, in keeping with general 19th century building trends in the area, was constructed quite late for its style. In contrast, a house of this sort may have appeared in San Francisco in the early 1880's or even 18701s. Locational sketch map(draw and label site and surrounding streets,roads,and prominent landmarks): 20. Main theme of the historic resource: (If more than one is NORTH checked,number in order of importance.) Architecture 1 Arts& Leisure Economic/Industrial 2 Explcration/Setdemerrt Government Military Religion Social/Education 21. Sources(List books,documents,surveys,personal interviews and their dates). Gebbhard, David and Winter, Robert A. 2 Guide to Architecture in Los Angeles and 'Southern California, 1977 Heritage Walking Tour, OTNA 22. Date form prepared By Historic Res.Survey SUIT— Organization City UOrganization—City of San Luis Obispo Address: P.O. Box 321 City San Luis Obispo Zip 93401 Phone: (805) 541-1000 RESOLUTION NO. 8843 (1998 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO CONTINUING A PILOT HISTORIC PROPERTY TAX INCENTIVE PROGRAM AND AUTHORIZING THE MAYOR TO EXECUTE THREE ADDITIONAL MILLS ACT CONTRACTS WITH OWNERS OF HISTORIC PROPERTIES. WHEREAS, Article 1.9 of the California Revenue and Taxation Code provides for the differential property tax assessment of certain enforceably restricted properties to encourage historic restoration and preservation; and WHEREAS, the City's General Plan policies encourage the use of tax incentives and other means to encourage property owners to protect, restore and preserve historic buildings; and WHEREAS, tax incentives for qualifying historic properties benefit the entire community and improve the City's appearance by encouraging the preservation and restoration of heritage buildings, fostering pride and reinvestment in neighborhoods, and by defraying a portion of the costs of restoring and maintaining historic structures; and WHEREAS, the City's Cultural Heritage Committee has considered the potential costs and benefits of a property tax incentive program, and has recommended the establishment of such a program pursuant to State law; and WHEREAS, the City Council has considered the Committee's recommendation and established a one-year pilot program to evaluate the program; and WHEREAS, the City Council has evaluated the pilot program after approximately one year of start-up and operation and determined that the program's initial results are favorable and merit continuation and further evaluation of the pilot program for one additional year. NOW THEREFORE BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Fin dings. The Council finds the following: 1. The Historic Property Tax Incentive Program is consistent with the General Plan, and will implement policies therein calling for the protection, restoration, preservation and maintenance of historically significant structures; and 2. The program's continuation will benefit the Public by enhancing the Community's appearance and preserving historically significant buildings which help describe and document the Community's heritage; and 3. Continuation of the program is exempt from environmental review under the G2-2( Council Resolution No. 8843 (1998 Series) Page 2 City's Environmental Guidelines and under Section 15308 of the California Environmental Quality Act. SECTION 2. Pilot Historic Property Tax Incentive Program Extended. The Council hereby extends the pilot tax incentive program known as the "Historic Property Tax Incentive Program", to be administered by the Community Development Director, for a period of one additional year. During this time, the Mayor is authorized to enter into up to three additional Mills Act Contracts, for a program total of 18 contracts. The contracts shall be subject to all previous requirements listed under Council Resolution No. 8589 (1996 Series) which established the pilot program. On motion of Council Member Roahnan, seconded by Vice Mayor Romero and on the following roll call vote: / AYES: Council Members Roahnan, Romero, Williams and Mayor Settle NOES: None ABSENT: None the foregoing Resolution was passed and adopted this 1st day of September, 1998. yor Allen Settle ATTEST: Co Acting City Clerk APPROVED: i Att ey j"MillsAmms c z-a2 RESOLUTION NO. 8589 (1996 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ESTABLISHING A HISTORIC PROPERTY TAX INCENTIVE PROGRAM AND AUTHORIZING THE MAYOR TO INITIATE THE PROGRAM WITH THE COUNTY OF SAN LUIS OBISPO. WHEREAS, Article 1.9 of the California Revenue and Taxation Code provides for the differential property tax assessment of certain enforceably restricted properties to encourage historic restoration and preservation; and WHEREAS, the City's General Plan policies encourage the use of tax incentives and other means to encourage property owners to protect, restore and preserve historic buildings; and WHEREAS, tax incentives for qualifying historic properties benefit the entire community and improve the City's appearance by encouraging the preservation and restoration of heritage buildings, fostering pride and reinvestment in neighborhoods, and by defraying a portion of the costs of restoring and maintaining historic structures; and WHEREAS, the City's Cultural Heritage Committee has considered the potential costs and benefits of a property tax incentive program, and has recommended the establishment of such a program pursuant to State law; and WHEREAS, this City Council has considered the Committee's recommendation and desires to establish a tax incentive program in the City of San Luis Obispo, based on the findings herein described; NOW THEREFORE BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. The Council finds the following: 1. The proposed Historic Property Tax Incentive Program is consistent with the General Plan, and will implement policies therein calling for the protection, restoration, preservation and maintenance of historically significant structures; and 2. The proposed program will benefit the Public by enhancing the Community's appearance and preserving historically significant buildings which help describe and document the Community's heritage; and 3. Adoption of the proposed Program is exempt from environmental review under the City's Environmental Guidelines and under Section 15308 of the California Environmental Quality Act. Council Resolution No. 8589 (1996 Series) Page 2 SECTION 2. Historic Property Tax Incentive Program Established. The Council hereby establishes a pilot tax incentive program known as the "Historic Property Tax Incentive Program", to be administered by the Community Development Director, on adviceand recommendation of the Cultural Heritage Committee, subject to State Law and the following local requirements. 1. The purpose of the pilot program is to encourage the restoration, preservation and upkeep of historic structures in the City of San Luis Obispo, including both residential and commercial properties, and to allow the City to evaluate the program prior to establishing an on-going program. 2. Participating properties may be located anywhere in the City. Only those properties listed in the "Master List of Historic Resources", or those added to the Master List by City Council action, shall be eligible to participate in the tax incentive program. 3. To qualify for the program, owners of eligible properties must enter into a "Mills Act" contract with the City of San Luis Obispo. The City Council shall review, and where appropriate, authorize the Mayor to execute such contracts, subject to the City's Historic Preservation Program goals, policies and preservation guidelines, and subject to the requirements of State law. 4. Mills Act contracts shall include performance standards and/or descriptions of the maintenance, restoration or repairs to be done by the property owner using the expected property tax savings. Restoration and preservation activities shall promote the City's Historic Preservation Program goals and principles. 5. The pilot program shall commence upon the date of execution of the fust"Mills Act° contract, and shall continue for one year. During the pilot program, up to 15 contracts may be executed the City Council. After one year of program operation, the Council shall hold a public .hearing to review the program to determine its effectiveness and to decide whether to continue the program. A program status report shall be presented to Council on or about their first regular meeting in October, 1997. 6. Upon program review, the Council may amend or terminate the program by resolution, after holding a public hearing and providing appropriate public and property owner notice as required by law. Executed Mills Act contracts shall remain in effect for the minimum term of 10 years, as provided by state law. 7. The Community Development Director shall establish application and review procedures to administer the program. Participation in the program is optional, and shall be at no cost to CJ --'74- Council Resolution No. 8589 (1996 Series) Page 3 SECTION 3. Authorization to Initiate the Program. The Mayor is hereby authorized to send a letter to the County of San Luis Obispo to initiate the program. On motion of. vice Mayor •Williams , seconded by Council Member Roalmanand on the following roll call vote: AYES: Council Members Williams, Roalman, Romero and Mayor Settle NOES: None ABSENT: Council Member Smith (not participating) the foregoing Resolution was passed and adopted this 1st day of October, 1996. Mayor Allen Settle ATTEST: lty Clerk , nnie . Ga/If APPROVED: I w tto ey council j ac En as nEpout -c- z. CITY OF SAN LUIS OBISPO FROM: Arnold Jonas, Community Development Prepared By: Jeff Hook, Associate SUBJECT: Approval of Mills Act Contracts under the Historic Property Tax Incentive Program. CAO RECON NMWATION: Adopt resolutions approving Mills Act contracts for 10SP& located at 1725 Santa Barbara Street, 1426 Broad Street, 1117/LO Street, ander, �o Street. ' DISCUSSION ❑POLi❑REC DIR O UTIL DIR Background O PFA$DIR In October' 19% the City Council adopted Resolution No. 8589, establishing a pilot program to encourage historic preservation. The program, based on a State law called the 'Mills Act", allows cities to enter into contracts with property owners to ensure that historic properties are preserved in good condition and in some cases,improved or restored. In return,property owners may qualify for a lower property valuation and reduced property taxes. The pilot program authorized up to 15 historic preservation contracts, with the intent of evaluating the program after one year of operation. Following Council approval, staff worked with the owners of 15 historic properties to finalize their lists of planned maintenance and/or improvements and prepare the Mills Act contracts. The initial 15 contracts were recorded and are in effect. In September, the Council reviewed the program and adopted Resolution No. 8843, extending the pilot program and authorizing the City to enter into three additional Mills Act contracts. Council members wanted to .allow additional time to evaluate the program's effectivecess while accommodating three property owners who were already on the "waiting list." Those three property owners are now ready to enter into Mills Act Contracts, as is one additional property owner who submitted a letter of interest shortly after the Council's September action and world like to be included in this rood of contracts. This additional property is located at 1426 Broad Street. Council's September action allowed the City to enter three additional Mills Act contracts because at the time, three requests were pending. There was no intent to exclude a specific property; Council members merely wanted to hold the number of new contracts to a minimum until the program's effectiveness could be evaluated. Given the timing of this fourth property owner's request and the fact that no more than four can be accommodated within the County's submittal deadline this year, Council may wish to consider approving this additional contract. MiGs Act Contracts Historic Preservation is an important goal of the City's General Plan. By providing a financial incentive, the Mills Act Program is one of the most effective preservation tools available to achieve C�:-1