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HomeMy WebLinkAbout04/01/2008, C2 - MILLS ACT CONTRACT FOR THE HISTORIC STOVER'S SANITARIUM, LOCATED AT 1160 MARSH STREET (CHC 153-07). council q11109 j ac,En6a nEpout CITY OF SAN LUIS O B I S P O FROM: John Mandeville, Director of Community Development Prepared By: Philip Dunsmore, Associate Planner SUBJECT: MILLS ACT CONTRACT FOR THE HISTORIC STOVER'S SANITARIUM, LOCATED AT 1160 MARSH STREET(CHC 153-07). CAO RECOMMENDATION: As recommended by the Cultural Heritage Committee (CHC), adopt a Resolution approving a Mills Act contract for the historic Stover's Sanitarium, located at 1160 Marsh Street. DISCUSSION Advisory Body Recommendation At its January 28, 2008 public hearing, the CHC voted 7-0 to recommend the City Council approve a Mills Act contract for the Stover's Sanitarium building (also known as the "Old French Hospital"), as described in the draft Mills Act contract. Background In December 2000, the City Council approved the Mills Act Program as an on-going historic preservation program and allowed up to 10 additional historic properties to be included in the program annually. Originally begun in 1996 as a pilot program, the Mills Act Program allows the City to enter into preservation contracts with the owners of designated historic properties who agree to preserve, maintain and in some cases, improve the properties in return for property tax savings. The City recently received a request by the owners of the Old French Hospital (historically known as Stover's Sanitarium) to be included in the Mills Act program. The proposed Mills Act contract was referred to the Cultural Heritage Committee for comment prior to Council action. The applicant requests participation in the Mills Act Program to use property tax savings to continue rehabilitation and maintenance of the building. Historic Preservation is an important General Plan goal as discussed below. Property Description Address: 1160 Marsh Street Historic Name: Stover's Sanitarium Owners: RKE Properties H A LTD Current Use: Office Zoning: O (Office) Status: Added to the Master List of Historic Resources in August, 1983. City Council Staff Report, Mills Act Contract for 1160 Marsh Street Page 2 History Originally known as the Stover's Sanitarium and later known as French Hospital, the building facing 1160 Marsh Street was constructed in 1911 for Dr. W.M. Stover. Dr. Stover was a local physician and surgeon, and one of two leading doctors in the County in the early 1900's..Stover also served as Mayor of San Luis Obispo from 1917 to 1919. The building was designed to be a hospital by W.H. Weeks, an architect who was well known for numerous designs such as the Carnegie Library and other structures throughout California. The building is a two story Classic Revival building with a basement. The exterior treatment consists of a brick veneer and an interesting cornice with detailed brackets and dentils. A large concrete stair is centrally located at the front of the building. Today the building maintains its original form, and the exterior fagade at Marsh Street is in good condition. The applicant is requesting to be part of the Mills Act Program to complete repairs and restoration of the building, and to provide for ongoing maintenance and preservation (See applicant's request letter, Attachment 2). To provide for continued preservation and restoration, the CHC recommended that the City Council approve the Mills Act contract. General Plan Policy The Conservation and Open Space Element (COSE) discusses the value of historic buildings and their contribution to the City's heritage and character. The General Plan policies recognize that the loss of significant historic resources can reduce the community's uniqueness and make it a.less desirable place in which to live, work, or visit. The following COSE policy and programs demonstrate the policy direction that supports the Mills Act program implementation. 3.3.1 Historic Preservation Significant historic and architectural resources should be identified preserved, and rehabilitated. 3.6.2 Financial assistance and incentives The City will participate in financial assistance programs, such as low-interest loans and property tax reduction programs that encourage maintenance and restoration of historic properties. 3.6.8 Promote adaptive reuse of historic buildings The City will, consistent with health, safety and basic land-use policies, apply building and zoning standards within allowed ranges of flexibility, to foster continued use and adaptive reuse of historic buildings. By providing a financial incentive, the Mills Act Program is one of the most effective tools available to implement the General Plan goal of historic preservation and encourage the rehabilitation and maintenance of historic buildings and neighborhoods. Mills Act Contracts Only commercial and residential properties on the Master List of Historic Resources are eligible for the program. Mills Act contracts are prepared using standard language approved by the State Historic Preservation Office. The contract included in the proposed Council Resolution (Attachment 4) City Council Staff Report, Mills Act Contract for 1160 Marsh Street Page 3 describes the historic property and the property owner's planned maintenance, repairs and improvements. Standard features of these contracts include: 1. 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 after the 19906. If the contract is canceled, the assessment is gradually increased to market value basis over the remaining contract term (described below). 2. 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. Each contract includes an exhibit which lists the maintenance and improvement measures for which tax savings will be used. 3. 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. 4. 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 contract 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. 5. 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 Il"ACT Approval of the agreement will not have a significant fiscal impact. It will result in a minor decrease in property tax collected by the County and passed through to the City. For example, in the 2000- 2001 tax year staff determined that the 18 properties then under Mills Act contracts would reduce that year's city property tax revenue from the previous year by $4,700, or about $260 per property. ATTACHMENTS 1. Vicinity Map 2. Property Owners' Letter 3. Cultural Heritage Committee Minutes, January 28, 2008 4. Draft Council Resolution and draft Mills Act Contract G:\CD-PLAN\Pdunsmore\CHC\153-07(1160 Marsh)\CHC 153-07(1160 Marsh)CC Report.DOC A I.v LIS w It VICINITY MAP ; Fmile No. 153=07 1160 Marsh Stree �tU,C�Mi'tG'11� � RKE II 750 Pismo Street - San Luis Obispo _ California 93401 (805)543-4333 -- Fax: (805)543-4220 E-Mail: info@rossi-ent.com August 30, 2007 Mr. Jeff Hook Community Development Department CITY OF SAN LUIS_ OBISPO 921 Palm Street San Luis Obispo, CA 93401 RE: Mills Act Application — Old French Hospital APN: 003=568-002 Dear Jeff: By this letter I am initiating the application process for the old French Hospital, for its inclusion under the City's Mills Act program. The building is presently on the City's Master List of Historic Properties. It is my understanding that, due the historic documentation that is already available on the building, it will not be necessary to do a formal historic documentation report. The building is presently undergoing required seismic safety improvements. As part of the same process, the interior of the building is being upgraded for continuation of contemporary uses. A functional and modem building connection will be constructed between the older portions of the building. As you know, contemporary design was consciously chosen, in order to distinguish.it from the historic sections of-the building. We look forward to working with the members of the City's Cultural Heritage Commission and you on this application. Attached is a completed planning application. Be egards, R Jd/pe Enclosures �a-s Attachment 2 OLD FRENCH HOSPITAL - 1160 Marsh Street The Project: The building has several major problems which need to be addressed, in order to achieve modem usability and to restore the building to its authentic historic condition. 1. It is under a City requirement to meet seismic safety requirements, primarily the annex building. 2. There are five restrooms in the building which do not meet ADA requirements. 3. It needs an abatement of lead and asbestos, which are contained in the paint and plaster. 4. 1t needs new electrical wiring, plumbing and HVAC infrastructure. 5. It needs a modem employeetcustomer circulation system, a central elevator and staircase. 6. The building needs to be restored to its historically authentic design and appearance, repairing damage occurring to the building over the years. The project will consist of: 1. Perforin seismic strengthening. 2. Rehabilitate five restrooms into an ADA compliant condition. 3. Remove lead paint and asbestos—containing materials and replacement of these with environmentally safe materials. 4. Replace building infrastructure—electrical, plumbing, HVAC. 5. Perform other upgrades of doors, exit pathways, lighting, etc. 6. Replace existing ramp system with hallways. 7. Configure interior generally as originally constructed. 8. Install a central elevator/stairway system. 9. Repair/renovate original double-hung windows. Attachment 2 10. Remove rear courtyard walkway cover. This steel post and panel system was added in the 1950's, Is unsightly, and detracts from the original design. 11. Replace second floor balcony on rear of annex portion of the building. Original was removed 25-30 years ago. 12. Replace existing third floor landing and staircase (unstable and not to code)with new landing and staircase similar in design to one being replaced on the Annex. 13. Repair damage to exterior brick and concrete walks, restore trim details and re- paint. 14. Finish off and paint interior of the building. 15. Restore (replace as necessary)original architectural design details to restore original architectural character and to maintain its preserved condition over the long- term. The estimated cost for the above is 1.5 million or more. 2 l� I Draft MINUTES SAN LUIS OBISPO CULTURAL HERITAGE COMMITTEE Regular Meeting of Monday,January 28, 2008 The meeting convened at 5:30 p.m. in the Council Hearing Room, San Luis Obispo City Hall, 990 Palm Street. ROLL CALL: Present: Committee Members Chuck Crotser, John Fowler, Lynn Landwehr, Dean Miller, Bob Pavlik, Elise Wheeler and Chairperson Barbara Breska. STAFF: Jeremiah Robbins, Planning Intern; James David, Assistant Planner, Phil Dunmore, Associate Planner; Jeff Hook, Senior Planner and Kim Murry, Deputy Director, Long-Range Planning MINUTES: On a motion by Committee member Miller, seconded by Committee member Fowler, the minutes of the December 17,2007 regular meeting were approved on a 7:0 vote. PUBLIC HEARING ITEMS: Committee members revised the agenda and took items 2 and 3 ahead of item 1 to allow the project planner to be present. 2. 1160 Marsh Street. CHCMA 153-07; Review a Mills Act contract for the historic Stover's Sanitarium; O zone; Robin Rossi, applicant. (Phil Dunsmore) Jeff Hook presented the staff report, recommending the Committee endorse the Mills Act Contract and that the Committee recommend City Council approve the contract. Rob Rossi,property owner, and Craig Smith, Architect, explained planned exterior and interior improvements intended to rehabilitate the historic building. Mr. Rossi explained his intent was to use property tax savings through the Mills Act program to return the building to a condition as close as possible to original, within building code provisions. Chairperson Breska opened the public hearing. Mike Shipsey commented that he had lived in the town all his life and was very familiar with the building. He was glad the building was being rehabilitated to its original appearance. Hearing no further comment,the public hearing was closed. On a motion by Committee member Crotser, seconded by Committee member Pavlik, the Committee endorsed the draft Mills Act contract and recommended that the City Council approve the contract, finding that: 1. Conservation and Open Space Element program 3.6.2 indicates the City will participate in financial assistance programs such as property tax reduction programs that encourage maintenance and restoration of historic properties. 2. Stover's Sanitarium located at 1160 Marsh Street has been recognized as an historic asset in the community by its designation as a Master List Historic Property. As such,maintaining the structure l� �� Afk c 11rc,''i7k CHC Minutes,January 28,2008 Meeting Page 2 • 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. The motion carried 7:0. 3. 1500 o Circle. ARCMI 185-07; Review proposed landscape impr vements for the historic S omon Forman House; R-1-PD zone; Sue & Steve Lumm, pplicant. (Brian Leveille) Jeremiah bbins presented the staff report, recommending the Committee ap rove the proposed landscape provements subject to findings and conditions that he summariz d. Sue and Steve Lumm, ap licants, explained the project and landscape designer Stephen Roe enbeck answered questions out the planting design. Committee members felt the design was ompatible with the historic h house. Committee member Wheeler was concerned that the pro sed minor grading could enc unter subsurface historic resources, like old building foundatio , privies or other historical atures. She asked that conditions be added to require that th applicant retain a historical chaeologist to monitor grading and a standard condition regarding cedures to follow when histo 'cal or archaeological resources are uncovered. On a mo on by Committee member Crotser, seconded by Committee ember Miller, the Committee voted 7:0 to recommend the Community Development Director a rove the landscape plan for th historic Solomon Foreman house subject to findings and conditions Findings: 1. Thep ject is consistent with standards contained in the Historical eservation Program Guide es and the historical character of the house is not diminished or alt red by the proposed site im rovements. 2. The untia cactus is not considered historical and its removal will not i lestroy the historical relatio hip between the building and the landscape, consistent with e Secretary of the Interio s Standards for the Treatment of Historic Properties, because t is not an original histori al landscape feature. 3. The p ject is categorically exempt from environmental review (CEQ Guidelines, Section 15301 Existing Facilities). Conditio s: 1. Appli ants will submit a detailed grading plan for Community Developni ent Director approval prior o grading or landscape construction to ensure there will be no poteni ial impacts to cultural reso ces. 2. Ligh g system shall be low voltage and applicants shall submit inf rmation on the light fix to determine appropriateness prior to construction. ® The City of San Luis Obispo is committed to include the disabled in all of its services,programs and activities. Please contact the City Clerk or staff liaison prior to the meeting if you require assistance. Attachment 4 RESOLUTION NO. (2008 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING AN HISTORIC PROPERTY PRESERVATION AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE OWNERS OF A DESIGNATED HISTORIC RESOURCE AT 1160 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. 9136 (2000 Series), establishing the Mills Act Historic Property Tax Incentive Program as an on-going historic preservation program to promote the preservation, maintenance and rehabilitation of historic resources through financial incentives; and WHEREAS, the owners possess fee title in and to that certain qualified real property, together with associated structures and improvements thereon, located on Assessor's Parcel Number 002-437-026, located at 1160 Marsh Street, San Luis Obispo, California 93401, also described as Stover's Sanitarium, (hereinafter referred to as the"historic property); and WHEREAS, the City Council of the City of San Luis Obispo has designated this property as an 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 owners, 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 owners, Attachment 1. 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. 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 • Attachment 4 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 , 2008. Mayor David F. Romero ATTEST: Audrey Hooper, City Clerk APPROVED: JonaLowell, ity Attorney Y n �. Attachment 4 DRAFT HISTORIC PROPERTY PRESERVATION AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE OWNERS OF HISTORIC PROPERTY LOCATED AT 1160 MARSH STREET,IN THE CITY AND COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA. THIS AGREEMENT is made and entered into this_day of ,2008,by and between the City of San Luis Obispo, a municipal corporation(hereinafter referred to as the"City"), and RKE Properties 11 A LTD (hereinafter referred to as"Owners"), and collectively referred to as RYE Properties II , a California Limited Partnership,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 automatically be added to the initial term of this agreement unless written notice of nonrenewal is served as provided herein. B. If the Owner or the City desires in any year not to renew the agreement, the Owner or the City shall serve written notice of nonrenewal of the agreement on the other party. Unless such notice is served by the Owner to the City at least ninety(90) days prior to the annual renewal date, or served by the City to the Owner 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 Owner 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 Owner of nonrenewal. D. If either the City or the Owner 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. Owner agrees 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, 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, and other aspects of the appearance of the building's exterior, as described in Exhibit B, 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 cC� - ( �- ' Attachment 4 property, the Owner agrees 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 to the greatest extent possible. D. The Community Development Director shall be notified by the Owner 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 Owner agrees to secure all necessary City approvals and/or permits prior to changing the building's use or commencing construction work. E. Owner agrees that property tax savings resulting from this agreement shall be used for property maintenance and improvements as described in Exhibit. 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. Owner 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. Section 5. Furnishing of Information. The Owner hereby agrees 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 Owner has 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 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 Owner 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. Ca - 13 Attachment 4 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 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 Owner, the City shall give written notice of violation to the Owner 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 Owner); 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 Owner 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 Owner 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 Owner may enter into mediation or binding arbitration to resolve disputes or grievances growing out of this contract. Section 8. Binding Effect of Agreement. The Owner hereby subjects the historic property located at 1160 Marsh Street, San Luis Obispo, California, to the covenants, reservations, and restrictions as set forth in this agreement. The City and Owner 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 Owner's 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. Attachment 4 To City: Community Development Director City of San Luis Obispo 919 Palm Street San Luis Obispo, CA 93401 To Owners: RKE Properties II A LTD Robin Rossi 750 Pismo Street San Luis Obispo, CA 93401 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 Owner agrees 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 Owner, or from those of their contractor, subcontractor, agent, employee or other person acting on the Owner's behalf which relates to the use, operation, maintenance, or improvement of the historic property. The Owner hereby agrees 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 Owner's 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"whither 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 effected thereby. 0-N , Attachment 4 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 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 Owner; 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. CITY OF SAN LUIS OBISPO Mayor David F. Romero Date City Attorney Jonathan P. Lowell Date OWNERS Robin Rossi Date STATE OF CALIFORNIA ) ) ss. COUNTY OF SAN LUIS OBISPO ) On this day of , 2008,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. Attachment 4 EXHIBIT A MAINTENANCE AND IMPROVEMENT MEASURES FOR PROPERTY LOCATED AT 1160 MARSH 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 1160 Marsh Street. Character-defining features shall include, but are not limited to: roof and associated elements, eaves, dormers, trim, walls and siding, architectural detailing, doors and windows, window screens and shutters,balustrades and railings, foundations, and surface treatments. 2. Owner agrees to make the following improvements and/or repairs during the term of this contract, but in no case later than February, 2018 or ten (10) years from the contract date, which ever comes first. All changes or repairs shall be consistent with the City's Historic Preservation Program Guidelines and the Secretary of the Interior's Standards for the Treatment of Historic Properties: A. Seismic Retrofit. B. Removal of lead paint and asbestos. C. Replacement of building infrastructure. D. Repair and renovate existing double-hung windows. E. Restoration of original architectural design details F. Replace existing P floor landing and staircase. G. Replace 2nd floor balcony on rear of building H. Remove rear courtyard walkway cover. OWNERS Date Date Date Ca- l � RED FILE ,RECEIVE® - AAE ING AGENDA DAT 1�N- ITEM APR 01 2008 MCOLINCIL HEH01MOLIH SLO,CITY CLERK OUNCIL CDD DIR DATE: April 1,2008 ICAO FIN DIR ACAO 2 FIRE CHIEF TO: City Council j MTTOFIN.Ey xPW DIR .P-CLERK/0RI(3 OLIGE OHF VIA: Ken Hampian, CAO DS REO DIR .9UTIL DIR HR DIR FROM: John Mandeville, Community Development Director BY: Philip Dunmore,Associate Planner SUBJECT: Consent Item C2 April 1,.2008 Agenda(CHCMA 153-0 This is a clarification of the vicinity map that was attached to the staff report for item C2. Instead of the entire property as indicated on the generic vicinity map,the property subject to the Mills Act request is only the historic -Stover's Sanitarium" building at 1160 Marsh as outlined in red in the photo below. �O Redjle memo 4-1-08