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HomeMy WebLinkAbout10/07/2008, C2 - APPROVAL OF MILLS ACT CONTRACT FOR THE HISTORIC MUGLER HOUSE (CHCMA 88-08). Counck "'�"°m 7 0 acenaa Repoin ,�N CITY OF SAN LUIS OBISPO FROM: John Mandeville, Director of Community Development Prepared By: James David, Planning Technician SUBJECT: APPROVAL OF MILLS ACT CONTRACT FOR THE HISTORIC MUGLER HOUSE (CHCMA 88-08). CAO RECOMMENDATION: As recommended by the Cultural Heritage Committee (CHC), adopt a resolution approving a Mills Act contract for the historic Mugler House located at 1460 Mill Street. DISCUSSION Advisory Body Recommendation At its public hearing held August 25, 2008, the CHC voted 5-0 to recommend w the City Council approve a Mills Act : contract for the historic Mugler House (Attachment 1, Vicinity Map) as described in the draft Mills Act contract. Background In December 2000, the City Council �^ T approved the Mills Act Program as an on- going historic preservation program and R� View from Mill Street allowed up to 10 historic properties to be included in the program annually. So far this year, the Council has approved seven Mills Act contracts. The current request is the eighth application for a Mills Act contract in 2008. 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 promise to preserve, maintain and in some cases, improve the properties in return for property tax savings. The Mills Act program has been very successful in that 38 historic properties are benefiting from the property tax reductions of up to 50 percent (Attachment 2). The City recently received a request by the owner of the historic Mugler House to be included in the Mills Act program for tax savings required to continue restoration and maintenance of the building. Mills Act Contract for 1460 Mill Street Page 2 Property Description Address: 1460 Mill Historic Name: Mugler House Owners: Dora Drexler, Et. Al. Current Use: Single Family Residence Zoning: R-2 (Medium-Density Residential) Status: Added to the Master List of Historic Resources in August, 1983. Discussion The property is located a half block northeast of the Mill Street °''-. - Historical District. The structure was built in 1925 by builder W.J. Smith (Source: City of SLO y Building Permits). The Tudor Revival/Eastern Stick style brick residence, once occupied by former City of San Luis Obispo Mayor ` Melanie Billig, has multiple gables --- —'` and a roof covered in composite - shingle. � z �� cvca l9z� The house maintains many original features despite remodeling and additions in the late 201h century. In accordance with the Secretary of the Interior's Standards for the Treatment of Historic Properties, these improvements did not affect the front rooms or architectural features that can be seen from the street. The proposed Mills Act Contract will include the main house, detached carriage house and other historic site elements including brick patio flatwork and a historic brick wall on the westerly property line. The applicant is requesting to be part of the Mills Act Program to provide for ongoing maintenance, preservation and site improvements (Attachment 3, Property Owners' Letter). Staff conducted a field visit and confirmed that the brick patios, exterior stickwork and carriage house need maintenance. The attached draft Mills Act Contract describes agreed upon improvements that address these concerns as well as other projects that will enhance or maintain the building's historic character in an exemplary fashion. Staff supports the applicant's request to be part of the Mills Act Program and recommends the Council approve the attached draft Mills Act contract. Mills Act Contracts Historic Preservation is an important goal of the City's General Plan, as described in Conservation and Open Space Element policies 3.21.1, 3.21.4, 3.30.2 and Land Use Element policy 4.12. By providing a financial incentive, the Mills Act Program is one of the most Ca -� Mills Act Contract for 1460 Mill Street Page 3 effective preservation tools available to achieve these goals and encourage the preservation of historic buildings. Commercial and residential properties on the Master List of Historic Resources are eligible for the program. Mills Act contracts are prepared using standard language provided by the State Historic Preservation Office. Standard features of the 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 1990s. If the contract is canceled, the assessment is gradually increased to market value basis over the remaining contract term. 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 IMPACT 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. ALTERNATIVES 1. Continue the item for additional analysis or research. C a -3 Mills Act Contract for 1460 Mill Street Page 4 2. Deny the property owners request to enter into a Mills Act agreement with the City. Staff does not recommend this alternative since there would not be an agreement in place for ongoing historic preservation. ATTACHMENTS 1. Vicinity Map 2. List of Historic Properties under Mills Act Contracts, August 2008 3. Property Owners' Letter 4. Draft Council Resolution and draft Mills Act Contract Q J . 1 me e I Attachment city of San Luis OBISPO List of Historic Properties Under Mills Act Contracts Updated August 11,2008 Note: Property Ownership may not be current Property Owner Address Historic Name 1. Randy and Shayne Lavack 670 Islay Fitzpatrick House 2. Robert and Zoe Schrage 1167 Marsh. Graves House 3. G.Johnson and V. Wood 547 Marsh Kaetzel House 4. Malcolm and Peggy Carlaw 461 Islay Erickson House 5. Catherine Tait 591 Islay Sandercock Home 6. Lorilee M. Silvaggio 752 Buchon Stanton House 7. Astrid Gallagher 1763 Santa Barbara Tribune-Republic Bldg. 8. Astrid Gallagher 1717 Santa Barbara William M Duff House 9. Astrid Gallagher 1725 Santa Barbara Andrew Galewski House 10. Henry Duran and 1105 George Edward F. Bushnell House Brian Horrocks 11. Mark Waters 896 Buchon Cosset House 12. Mary McIntire 745 Buchon Bradbury Home 13. Adrienne Riley 1426 Broad Giffin or Dutton House 14. Bill and Michelle Walters 1504 Broad Vetterline House 15. Robert Carpenter 1511 Morro. Martha Dunlap House 16. John and Melissa Louch 1435 Broad George Miller House 17. Keith and Kathy Godfrey 963 Broad. Manderscheid House 18. Gary Toll 1117-1119 Marsh Esquar House C �L-60, i 1 Attachment 2 Mills Act Properties, 8/11/08 Page 2 Property Owner Address I-Estoric Name 19. SaniJavad 1212 Garden McCaffrey House 20. David Hannings 642 Monterey Hays/Latimer Adobe 21. Steven and Ilene Sicanoff 1720 Johnson The Judge's House 22. Gordon and Deanne Oliver 1428 Nipomo Rogers/Sandercock House 23. Richard and Adian Lenz 559 Pismo Biddle House 24. Vince Fonte, Rob Rossi, 1314 Palm Righetti House Brendan McAdams 25. Russell and Rea Berg 1306 Mill Lind House 26. Brendan and Katherine 1323 Mill Laird House McAdams 27. Steve and Laurie Butler 497 Islay Vollmer House 28. Steve and Susan Lumm 1500 Eto Solomon Foreman House 29. Dr.William Watson 800 Palm Ah Louis Store 30. Dan and Sandy Carpenter 2030 Johnson Ave Old SLO Economics Bldg. 31. Comel Artho &Shelby Bentz 1746 Chorro Street Aston Home 32. RKE Properties II 1160 Marsh Street Stovees Sanitarium 33. Matt Quaglino 1266 Mill Street Shipsey House 34. Pierre and Terri Rademaker 1333 Mill Street Burch House 35. James and Diane Duenow 1443 Osos Street Avila House 36. Stephen Linder and Cynthia Semel 1429 Osos Street Frank Campbell Mitchell House 37. Michael and Sharon Singleton 1052 Islay Street Kaufman House 002 -� _ n r" Attachment 2 Mills Act Properties, 8/11/08 Page 3 38. Joann Quaglino 1546 C horro Street Fleuger House 39. Dora Drexler,Et. Al. 1460 Mill Street Mugler House (pending CC approval) 40. Jennifer Blomfield 785 Buchon Marshall House (pending CC approval) 41. Conrad Young 1424 NO Street Maino House (pending CC approval) C o)-'O Attachment 3 June 24, 2008 City of San Luis Obispo Community Development.Department 919 Palm Street San Luis Obispo, CA 93401 SUBJECT: Request for Approval of Mills Act Contract for the Mugler House, 1460 Mill Street, San Luis Obispo. Dear Community Development Representative: Our family purchased the Mugler House in August 2002. It is a dream-come-true for us, as we have always admired the unique home's charm, but more importantly, the home has given us the opportunity to allow three generations of our family to live together comfortably under one roof. The house is associated with the "Mill Street District" and is on the City's Master List of Historic Resources. It was built in 1925 by W.J. Smith for Dr. Fred R. Mugler at the cost of$11,000. Dr. Mugler commissioned Chester Miller an Oakland architect to design the home, after visiting San Luis Obispo in 1921. Dr. Mugler decided that the city was charming and settled into practice as the sole owner of the San Luis Sanitarium. Upon his retirement he sold the Sanitarium to Dr. Edison French. Dr. Mugler sold the home to Dr. Dexter Guernsey in 1949. The house is described as a Tudor Revival/Eastern Stick Revival home with multiple gables, one of only a handful of similar homes that exist in San Luis Obispo. The two front-facing gables have stick work with the porch gable made completely of stick work. The central gable is red brick with darker brown brick patterned to represent stick work. The original floor plan consisted of six rooms downstairs with one room on the second floor. In 1936 the upstairs was completed with the addition of two bedrooms and one bath. In 2006, prompted by the Monday Club's tour of historic Mill Street homes, Dr. Mugler's son, Dr. Fred Mugler, Jr. visited our home. He described being a young child and watching the stone mason cut the pieces of brick ends to create the existing floor in the downstairs bathroom. He shared many stories of the home and his years growing up in San Luis Obispo. From our conversations with him, we were pleased to find that the house maintains many original features, despite remodeling of the home in the 1970's, 80's and 90's. Most of the previous remodels were to the rear or private portions of the Page 1 of 2 � Rachment 3 home and did not affect the front rooms or architectural features which can be seen from the street. When we purchased the house we were aware that the house is "historic" and were excited to be living in a home with such wonderfiil character. We understood that there would be extra costs associated with maintenance, but knew that we were committed to maintaining and preserving this beautiful home. After living here for nearly six years we have developed a feel for the house and have realized some of the challenges we will be facing in maintaining it and making it livable for today's lifestyle. Only last year, did we become aware of the City's Mill Act Preservation Program and the incentives available to historic home owners for preservation for their homes. The general condition of the home is good. The addition of the family room and remodel of the kitchen and bedroom areas by previous owners provided opportunities to improve some systems and make some repairs, however there are many projects that we would like to undertake to either preserve the home's integrity or improve the "livability" of the home. Some of the projects include: • Replacing and relocating the downstairs heating system from a bedroom closet to a more appropriate location • Contracting to have confirmed asbestos material removed from existing ductwork and replaced with new ducting material • Modification of the upstairs HVAC system to include air conditioning for the upstairs portion of the home • Upgrades to existing plumbing system • Repair/replacement of existing windows as needed s Repainting of all wood or stucco portions of the exterior facades • Repair of original sagging porches at front of home • Repair of leaning carriage house faeade • Repairs to mortar as required We commend the City of San Luis Obispo's commitment to preserving historic neighborhoods and appreciate the opportunity to partner with the City in our efforts to restore and maintain our home. We look forward to providing any further information that you may need in the evaluation of our application. Best Regards, Dora K. Drexler and E *c Ruzius 1460 Mill Street San Luis Obispo, Ca 93401 Cd -/o Page 2 of 2 Attachment RESOLUTION NO. (2008 Series) A RESOLUTION APPROVING AN HISTORIC PROPERTY PRESERVATION AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND DORA DREXLER, OWNER OF A DESIGNATED HISTORIC RESOURCE AT 1460 MILL 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 001-133-011, located at 1460 Mill Street, San Luis Obispo, California 93401, also described as the Mugler 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 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; and WHEREAS, as provided by adopted procedures, the Cultural Heritage Committee held a public hearing on August 25, 2008, to consider a request by Dora Drexler, owner of 1460 Mill Street; and WHEREAS, the City Council has considered the Cultural Heritage Committee's recommendation, documentation for the property on file in the Community Development Department, public testimony, the staff report, and the City's Historical Preservation Program Guidelines. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. The City Council makes the following findings: ca -�l - Attachment �{ Council Resolution No.XXXX(2008 Series) I. 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. The Mugler House, located at 1460 Mill Street, has been recognized as a historic asset in the community by its designation as a Master List Historic Property. 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. Historic Preservation Agreement approved. The City Council hereby approves the "Historic Preservation Agreement Between the City of San Luis Obispo and the Owners of the Historic Property Located at 1460 Mill Street", dated September 18, 2008, and entered into between the City and Dora Drexler SECTION 3. 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 4. Environmental Determination. The City Council has determined that the above actions do not constitute a project, as defined by Section 15378 of the California Environmental Quality Act and are exempt from environmental review. SECTION 5. Recordation of the Agreement. No later than twenty (20) days after the parties 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 vote: AYES: NOES: ABSENT: The foregoing Resolution was adopted this -12008. Mayor David F. Romero ATTEST: Audrey Hooper, City Clerk APPROVED AS TO FORM: —=yam. J athan well, City Attorney 1 Attachment 4 HISTORIC PROPERTY PRESERVATION AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE OWNERS OF HISTORIC PROPERTY LOCATED AT 1460 MILL STREET, IN THE CITY AND COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA. THIS AGREEMENT is made and entered into this / Ptd day of �, 2008, by and between the City of San Luis Obispo, a municipal corporation (hereinafter to as the "City„) and Dora Drexler(hereinafter referred to as "Owner"), and collectively referred to as the "parties." Section 1. Description of Preservation Measures. The owner, her 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 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, 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. ca - i3 - ' Attachment 4 b. If the building's interior closely relates to the property's eligibility as a qualified historic 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 such as oak and mahogany 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 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 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. 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 Owner's 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 cancelled 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 Ca a- — /Y Attachment 4 states that the fee shall be 12 '/s% 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 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 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 1460 Mill Street, San Luis Obispo, California, Assessors Parcel Number 001-133-011, 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. i f^ Attachment 4 To City: Community Development Director City of San Luis Obispo 919 Palm Street San Luis Obispo, CA 93401 To Owner: Dora Drexler 1460 Mill 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 caused 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 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. 0 a- A0 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 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 Owner have executed this agreement on the day and year written above. ALL SIGNATURES MUST BE NOTARIZED OW R `7 2009 Dora Drexler, Owner Date Owner Date CITY OF SAN LUIS OBISPO Mayor David F. Romero Date ATTEST= Audrey Hooper, City Clerk APPROVED AS TO FORM: J owell, City Attorney L° L9 Attachment 4 EXHIBIT A MAINTENANCE AND IMPROVEMENT MEASURES FOR PROPERTY LOCATED AT 1460 MILL 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 1460 Mill 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 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 Program Guidelines and the Secretary of the Interior's Standards for the Treatment of Historic Properties: a. Restore or replace exterior windows to match original windows, to the satisfaction of the Community Development Director. b. Restore or replace leaking windows in French doors on front of house with historically appropriate true divided lights, to the satisfaction of the Community Development Director. c. Repaint all wood or stucco portions of-the exterior fagades, to the satisfaction of the Community Development Director. d. Repair original sagging brick porches at front of home. e. Repair leaning carriage house fagade. f. Rehabilitate failing brick wall on westerly property line. g. Repoint mortar joints to match original. h. Replace and relocate the downstairs heating system, including replacement of confirmed asbestos ductwork. i. Upgrade HVAC and plumbing system for livability and long term maintenance. j. Continue a high level .of maintenance to the house's exterior and grounds, as evidenced by periodic repainting and repair of exterior materials and surfaces, high quality landscape maintenance, and repair or replacement of site features, such as fencing, walls, lighting, or other historic site features. OW RS S��CYr%�JC✓ l�, 2CJ0 Dora Drexler Date / Attachment 4 State of California } County of San Luis Obispo } On 1200 21� ,before me, Laurie L. Hanson,Notary Public Date Name and Title of the Officer personally appeared, Dora Drexler Name of.Signer(s) who proved to me on the basis of satisfactory evidence to be the personJg i hose namep<is/pre'subscribed to the within instrument and acknowledged to me that.bdshe/4hcY'executed the same in hidher heif" authorized capacityfiesj,and that by11i's/heraheiPsignatureKon the instrument the personW,, or the entity upon behalf of which the personS8-racted,executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. LAURIE L. HANSON .- ComniftWn If 1791108 WITNESS my hand and official seal. No1�Y p��O�O Son ltdb ob ltpo county conn►-. � rbt it Signature s+,/ Signature of Notary Public Place Notary Seal Above State of California } County of San Luis Obispo } On , before me, Date Name and Title of the Officer personally appeared, Name of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Signature of Notary Public Place Notary Seal Above 0a - lq Attachment 4 State of California } County of San Luis Obispo } On before me, Date Name and Title of the Officer personally appeared; Name of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/shelthey executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted,executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official sea]. Signature Signature of Notary Public Place Notary Seal Above State of California } County of San Luis Obispo } On ,before me, Date Name and Title of the Officer persona]]y appeared, Name of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s)is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Signature of Notary Public Place Notary Seal Above �° a -D