HomeMy WebLinkAbout11-19-2013 c8 mills act contract
FROM: Derek Johnson, Community Development Director
Prepared By: Rachel Cohen, Planning Technician
SUBJECT: APPROVAL OF MILLS ACT CONTRACT FOR THE MASTER LIST ZION
LUTHERAN CHURCH AND PARSONAGE (CHCMA 139-12)
RECOMMENDATION
As recommended by the Cultural Heritage Committee (CHC), adopt the attached resolution
approving a Mills Act contract for the Master List Zion Lutheran Church and Parsonage located at
863 and 867 Pacific Street (CHCMA 132-12).
SITE DATA
Applicant Cayucos Cowboys LLC
Historic Status Master List
Zoning O (Office Zone)
General Plan Office
Site Area ~18,580 square feet
Environmental
Status
Categorically Exempt from
environmental review under
Section 15378 of the CEQA Guidelines
BACKGROUND
Advisory Body Recommendation
The City received a request by the owner of the Master List Zion Lutheran Church and Parsonage to
be included in the Mills Act Program on November 16, 2012. Staff presented the request to the
Cultural Heritage Committee (CHC) on February 25, 2013. At that time, staff did not have
sufficient information to confirm the Parsonage building (867 Pacific) was included in the 1983
Master listing of the property. As such, only the main church structure was included in the Mills Act
contract request. The CHC recommended approval of the request to enter a Mills Act contract with
the City with direction to the applicant to return before the Committee at a later date to amend the
contract to include the Parsonage structure. On July 22, 2013 the CHC reviewed the proposed
amendment to the Mills Act Contract to include the Parsonage and recommended that the City
Council approve the Mills Act contract for 863 and 867 Pacific Street (Attachment 8).
Meeting Date
Item Number November 19, 2013
C8 - 1
Council Agenda Report – Mills Act Contract for 863/867 Pacific Street
November 19, 2013 Page 2
Mills Act Program
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. 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
promise to preserve, maintain, and in some cases improve the properties in exchange for property
tax reductions. As of February 2013, 49 historic residential properties are benefiting from the
program and realizing property tax reductions (Attachment 2, Mills Act Properties February 2013).
Although there were no Mills Act requests in 2012, this application is one of three requests
considered this year. The other two properties (1144 Palm Street and 1123 Pismo Street) were
accepted into the Mills Act Program on April 2, 2013.
Mills Act Contract
By providing a financial incentive, the Mills Act Program is one of the most effective tools
available to encourage the preservation of heritage properties. Only commercial and residential
properties on the Master List of Historic Resources are eligible for the program. The attached Mills
Act contract was prepared using standard language provided by the State Historic Preservation
Office (Attachment 8, Draft Mills Act Agreement). Standard features of the contract 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 after the 1990s. If the contract is canceled, the assessment is
gradually increased to market value basis over the remaining ten year 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. Each contract includes an exhibit which lists the
maintenance and improvement measures for which tax savings will be used.
• The contract is recorded, and is binding on subsequent owners, heirs, or assigns until the
agreement is canceled. There is a significant financial penalty if the agreement is cancelled due
to breach of performance.
• Mills Act contracts have a minimum 10-year term. The agreement is self-renewing annually
for additional 10-year terms, so there are 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 ten year term remaining. 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 the Treatment of
C8 - 2
Council Agenda Report – Mills Act Contract for 863/867 Pacific Street
November 19, 2013 Page 3
Front Elevation. 863 Pacific Street- Zion
Lutheran Church
Front Elevation. 867 Pacific Street-
Parsonage
Historic Properties, with the guiding objective being the preservation of the building’s original
historical character and significance.
DISCUSSION
Property/Site Description
The property is an approximately 18,000 square foot parcel fronting Pacific Street between Morro
and Chorro Streets in the Office (O) zone (Attachment 1, Vicinity Map). There are two structures
on this property, the church and the parsonage building.
The City Council added the property to the Master List in
August 16, 1983, as the historic “Zion Lutheran Church.”
The church was built in the Carpenter Gothic Revival style
as characterized by its steep bell cast gable roof, shiplap
siding, and Gothic arched windows with wood trim. The
main church structure was completed in 1910. The structure
has maintained its integrity as the rear addition has been in
existence since 1916
and no other
additions have since
been made to the
church structure.
The parsonage
structure was built
shortly after the
addition. The
parsonage is a
bungalow type structure with a side facing gable roof, full
front porch, and small shed roof dormer. (Attachment 3,
Historical Resources Inventory).
Proposed Improvements
The applicant has demonstrated commitment to maintaining both of the historic structures
throughout its ongoing restoration and site improvements. The applicant is requesting to be part of
the Mills Act Program to provide for the structure’s ongoing maintenance and preservation
(Attachment 4, Applicant Letter). The applicant has noted that some actions have been completed
in the past two years and others are in progress. The applicant’s list of proposed improvements is as
follows:
Status Timeframe
1 Reroof church and parsonages structures with shingles more in character
with historic style
Complete
2 Complete parsonage renovation to include interior and exterior painting Complete
3 Renovate site landscaping to include more period appropriate landscape
materials.
Complete
4 Replace damaged doors on both structures with solid wood doors Complete
C8 - 3
Council Agenda Report – Mills Act Contract for 863/867 Pacific Street
November 19, 2013 Page 4
5 Repair of existing wood gutter and replacement of gutter on eastern
elevation with metal gutters to protect structure from water damage
Complete
6 Repainting of the exterior of the Church structure Complete
7 Ongoing prevention of termite infestations and fungal problems Ongoing
8 Required mechanical system upgrades 1-10 years
9 Required plumbing repairs and pipe replacement 1-10 years
10 Regular repainting of the structure as required. 5-10 years
Staff conducted a site visit and confirmed that the above mentioned items will help maintain and
enhance the historic character of the buildings and contribute towards the long term preservation of
the structures. It is important to note that some of the improvements have already been completed
and the structure is in relatively good condition. The attached draft Mills Act Contract describes
agreed upon improvements that address these items as well as other projects that will enhance or
maintain the building’s historic character in an exemplary fashion.
FISCAL IMPACTS
The Mills Act Program is the only direct financial incentive to encourage historic preservation. The
purpose of the benefit is to support the ongoing maintenance and preservation of historic properties.
The Mills Act reduces the tax base liability and therefore reduces the annual tax payment in
exchange for Historic property maintenance and upgrades.
The current tax rate for properties in the City is approximately 1.1% The City receives
approximately 14.9% of this 1.1% and the remainder goes to other resources such as the County and
the school district. For example, annual tax on a property with a base value (land and
improvements) of $600,000 would be approximately $6,000 and the City would receive
approximately $894 annually.
There were 55 Mills Act contracts as of February 2013. Six of these contracts cover commercial
buildings and 49 apply to residential structures. The County Assessor has reported that the annual
tax revenue to the County has been reduced by approximately $212,000 due to City of San Luis
Obispo Mills Act contracts. This resulted in a reduction of approximately $31,000 in annual tax
revenue to the City; an average of approximately $560 per residential contract.
Staff has provided a preliminary estimate of property tax savings and anticipated costs associated
with the property owners proposed improvements (Attachment 5, Fiscal Evaluation). Based on a
comparison of the estimated tax savings and the costs associated with preservation/maintenance of
the property, staff has determined the approximate cost of the proposed improvements under the
Mills Act contract will exceed the tax savings. These approximate calculations are preliminary; the
County Assessor will provide accurate figures following City Council approval of the Mills Act
contract.
Approximate 10 year savings to owner realized under Mills Act contract: $92,460
Approximate 10 year cost of proposed improvements to owner: $150,850
C8 - 4
Council Agenda Report – Mills Act Contract for 863/867 Pacific Street
November 19, 2013 Page 5
RECOMMENDATION
Adopt the attached resolution (Attachment 9) approving a Mills Act contract for the Master List
Zion Lutheran Church and Parsonage located at 863and 867 Pacific Street (CHCMA 139-12).
ALTERNATIVES
1. Do not approve a Mills Act contract for the historic Zion Lutheran Church and Parsonage based
on findings of inconsistency with Historic Preservation Program guidelines.
2. Continue the item for additional information or discussion.
ATTACHMENTS
1. Vicinity Map
2. List of Historic Properties under Mills Act Contract, February 2013
3. Historic Resources Inventory, 863/867 Pacific Street
4. List of Improvements / Applicant’s Request Letter
5. Fiscal Evaluation
6. Draft February 25, 2013 CHC Minutes
7. Draft July 22, 2013 CHC Meeting Update
8. Draft Mills Act Contract
9. Draft Resolution
T:\Council Agenda Reports\2013\2013-11-19\Mills Act Contract (Johnson-Cohen)
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C8 - 7
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ATTACHMENT 2
C8 - 9
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ATTACHMENT 2
C8 - 10
ATTACHMENT 3
C8 - 11
ATTACHMENT 3
C8 - 12
ATTACHMENT 4
C8 - 13
ATTACHMENT 4
C8 - 14
Mills Act Property Tax Savings Estimate1
863 Pacific Street
Historic Zion Lutheran Church Building
1 These approximate calculations are preliminary; the County Assessor will provide accurate figures following City Council
approval of the Mills Act Contract.
A Current assessed valuation $ 1,224,000.00
B Estimate of annual Historic Preservation repair and maintenance costs $ 4,200.00
(Cost of new roof per year amortized over 20 year lifespan) $ 3,000.00
(Cost of repainting buildings per year amortized over 5 years) $ 1,200.00
C Estimate of operations and general maintenance costs $ 10,885.00
D Estimate of potential monthly rent of property $ 5,561.40
Gross Income - (Fair Rent)
1. Gross Income From Rent (2852 @ 1.95/sf x 12 months) $ 66,736.80
2. Anticipated vacancy and collection loss (5% of less income from rent) $ 3,336.84
3 Effective Gross Income (subtract #2 from #1) $ 63,399.96
Net Operating Income (Effective Gross Income - Maintenance Costs)
4. Annual Maintenance Costs (item B + item C) $ 15,085.00
5 Net Operating Income (subtract #4 from #3) $ 48,314.96
Restricted Value (Net Operating Income / Restricted Cap. Rate)
6. Interest Rate 0.08
7. Risk 0.02
8. Property Tax (basic tax plus any special taxes for district) 0.011
9. Amortization Rate (50 year remaining life;
improvements 70% of total property value .02 x .75) 0.015
10. Restricted Capitalization Rate 12.6%
11 Restricted Value (divide #10 into #5) $ 383,452.00
12. Current Assessed Value $ 1,224,000
13. Tax Rate 0.011
14 Current Assessed Value in Annual Property Tax $ 13,464
15. Restricted Value $ 383,452
16. Tax Rate 0.011
17 Restricted Value in Annual Property Tax (a.k.a new annual property tax) $ 4,218
Yearly Savings to the Owner (subtract #17 from #14) $ 9,246
*Fixed Rates in Italic
Definitions
Interest component: Pre-determined on an annual basis by the State Board of Equalization.
Historic property risk component: 4% in the case of owner-occupied dwellings and 2% in all others.
Amortization component: A percentage equal to the reciprocal of the remaining life of the improvements.
Property tax component: Defined as the percentage of the estimated total tax rate applicable to the property
for the assessment year multiplied by the assessment ratio.
ATTACHMENT 5
C8 - 15
)
SAN LUIS OBISPO
CULTURAL HERITAGE COMMITTEE MINUTES
February 25, 2013
ROLLCALL:
Present: Committee Members Thom Brajkovich, Hemalata Dandekar, Jaime Hill,
Patti Taylor, and Chairperson Enrica Costello
Absent: Vice-Chair Bob Pavlik
Staff: Senior Planner Phil Dunsmore, Associate Planner Brian Leveille, Assistant
Planner Marcus Carloni, and Recording Secretary Dawn Rudder
ACCEPTANCE OF THE AGENDA:
The agenda was accepted as presented.
MINUTES:
Minutes of January 28, 2013, were approved as amended.
PUBLIC COMMENTS ON NON-AGENDA ITEMS:
Dean Miller discussed the January minutes and noted that a change to his comments
regarding "placing 550 Dana on the CHC agenda as soon as possible" should be
incorporated into the minutes.
PUBLIC HEARING ITEMS:
1. 1123 Pismo Street. CHCMA 132-12; Request to enter into a Mills Act contract for
the Master List "Nuss House"; R-2-H zone; Brian O'Kelly, applicant (Marcus Carloni)
Marcus Carloni, Assistant Planner, presented the staff report, recommending the
adoption of the draft Cultural Heritage Committee Resolution recommending the City
Council approve the Mills Act Historic Preservation contract for the historic Nuss House,
as described in the draft contract based on findings and subject to conditions which he
outlined.
Committee Member Brajkovich questioned if there was a historical person associated
with this property. Mr. Carloni stated that this structure was recommended based on
architectural significance.
Committee Member Dandekar questioned whether the brick steps at the entry porch will
remain. Mr. Carloni stated the steps are a later addition. The porch originally had wing
walls finished with siding and the applicant proposes to reconstruct the wing walls
based on historic photographs.
ATTACHMENT 6
C8 - 16
CHC Minutes
February 25, 2013
Page 2
PUBLIC COMMENTS:
Brian O'Kelly, applicant, summarized his plans to restore the home to its original form
and urged the Committee to approve the project as presented.
COMMITTEE COMMENTS:
Committee Member Hill stated that Section 4 item B on the Mills Act Contract, should be
amended to read 'The building's interior closely relates ... " and also suggested that
additional language be included to ensure priority items (i.e. exterior improvements) are
completed first. She is also in favor of the project being approved.
Committee Member Brajkovich supports the Mills Act request. He stated exterior
improvements should take precedence over the interior.
Chairperson Costello voiced concern over the inside not being livable if exterior
improvements were to take place prior to interior improvements.
Committee Member Taylor concurred with Committee Member Brajkovich that the
exterior should be completed first.
There were no further comments made from the Committee.
On motion by Committee Member Brajkovich. seconded by Committee Member Taylor,
recommended the approval of the application allowing the City to enter into a Mills Act
Historic Preservation Agreement with modifications to Section 4B to read "The building's
interior ... " removing the word "If'.
AYES:
NOES:
RECUSED:
ABSENT:
Committee Members Brajkovich, Dandekar, Hill, Taylor, and Costello
None
None
Vice-Chair Pavlik
The motion passed on a 5:0 vote.
2. 863 Pacific Street. CHCMA 139-12; Request to enter into a Mills Act Contract for
the Master List "Zion Lutheran Church" building; 0 zone; Cayucos Cowboys, LLC,
applicant. (Liz Brighton)
Marcus Carloni, Assistant Planner, presented the staff report, recommending the
adoption of the draft Cultural Heritage Committee Resolution to recommend the City
Council approve the Mills Act Historic Preservation contract for the historic Zion
Lutheran Church Building, as described in the draft contract based on findings and
subject to conditions which he outlined.
ATTACHMENT 6
C8 - 17
CHC Minutes
February 25, 2013
Page 3
PUBLIC COMMENTS:
The applicant representative summarized the improvements completed and asked the
committee to approve the project based on findings stated in the staff report. He also
stated that as there have been no changes made to the Parsonage building other than
the enclosing of the front porch. He will come back at a later date with an application to
request that the Parsonage be recognized as an additional structure in the Master
Listing for 863 Pacific Street.
Dean Miller, San Luis Obispo, voiced opposition to the approval of the property to the
Mills Act due to the Parsonage building not being included in the application. He
summarized that he believes the buildings were listed as one property and should be on
the Master List together.
Mr. Dunsmore stated that the contract can be amended at a later date to add the
Parsonage building to the contract once the Parsonage building is added to the City's
Master List.
The applicant representative indicated he would like to move forward with this Mills Act
application. The applicant also stated that he intends to request the review of the
Parsonage building at a future date.
) COMMITTEE COMMENTS:
Chairperson Costello expressed concern with a newly-installed metal rain gutter on the
eastern elevation of the church structure.
The applicant representative stated the metal gutters were added on the eastern
elevation to protect the structure from water damage. The applicant also stated that the
wooden gutters on the elevation with street frontage have been repaired and restored.
Chairperson Costello voiced interest in including the additional buildings on the property
as an amendment to the contract as a condition to a motion.
Dean Miller, San Luis Obispo, stated that the inappropriate items should be removed
and done properly.
Committee Member Brajkovich stated that the added gutters are not significant as they
are a functional element to the property.
Committee Member Dandekar concurred with Committee Member Brajkovich.
Committee Member Hill noted the contract should be modified to clarify the interior is
part of the historic resource.
There were no further comments made from the Committee.
ATTACHMENT 6
C8 - 18
CHC Minutes
February 25, 2013
Page4
On motion by Committee Member Hill. seconded by Committee Member Dandekar,
recommended approval of the application allowing the City to enter into a Mills Act
Historic Preservation Agreement with modifications to Section 48 to read "The building's
interior ... " removing the word "If'.
AYES:
NOES:
RECUSED:
ABSENT:
Committee Members 8rajkovich, Dandekar, Hill, and Taylor
Chairperson Costello
None
Vice-Chair Pavlik
The motion passed on a 4:1 vote.
3. 1144 Palm Street. CHCMA 136-12; Request for a Mills Act Contract for the Master
List "Payne House"; 0 zone; Michael Wise, applicant. (Brian Leveille)
Marcus Carloni, Assistant Planner, presented the staff report, recommending the
adoption of the draft Cultural Heritage Committee Resolution recommending the City
Council approve a Mills Act Historic Preservation contract for the historic Payne
Residence, as described in the draft contract based on findings which he outlined.
PUBLIC COMMENTS:
) Michael Wise, applicant, discussed how the property has remained in the family since
nearly the time the house was originally constructed and that the house has a significant
amount of deferred maintenance that needs to be completed.
COMMITTEE COMMENTS:
Committee Member Hill noted the contract should be modified to clarify the interior is
part of the historic resource.
On motion by Committee Member Hill, seconded by Committee Member Taylor,
recommended approval of application allowing the Citv to enter into Mills Act Historic
Preservation agreement with modifications to Section 48 to read "The building's
interior. .. " removing the word "If".
AYES:
NOES:
RECUSED:
ABSENT:
Committee Members Taylor, 8rajkovich, Dandekar, Hill, and Costello
None
None
Vice-Chair Pavlik
The motion passed on a 5:0 vote.
4. 868 Chorro Street. ARCMI/ER/H 151-12; Review of rehabilitation and addition to
the Master List "Mancilla/Freitas Adobe" project; R-4 zone; Chris Hammer,
applicant. (Brian Leveille)
ATTACHMENT 6
C8 - 19
CHC Minutes
February 25, 2013
Page 5
Phil Dunsmore, Senior Planner, gave a general history of the property to the
Committee.
Brian Leveille, Associate Planner, presented the staff report, recommending the
Community Development Director approve the proposed rehabilitation and addition to
the Historic Mancilla/Freitas Adobe based on findings which he outlined.
Staff recommended that prior to final occupancy; a plaque shall be installed in a location
that is visible from the Chorro Street right of way, which discusses the historic
significance of the adobe.
Committee Member Taylor questioned whether the plaque recommendation is included
in the resolution. She also wanted clarification if the recommended modifications to the
porch supports are included in the plan set submittal. Mr. Leveille indicated that the
plaque would need to be added as a condition and the posts are represented in the
elevations.
Committee Member Hill questioned whether the parking is sufficient with the additional
rooms. Mr. Leveille indicated that there was sufficient parking.
Committee Member Brajkovich is supportive of the proposed project. He made
suggestions of material to use in order to allow the project to appear historic.
Thorn Jess, Applicant's architect, summarized plans for the project. He pointed out that
Archeology was a concern and an Archeologist will be on the project to monitor ground
disturbing activities. He indicated they will need to correct drainage issues which
threaten the adobe at the time of grading. He noted the applicant is in full support of the
plaque being installed on the project.
PUBLIC COMMENTS:
David Brodie, San Luis Obispo, expressed concern of the Council's previous decision to
allow demolition of the wood clad additions surrounding the adobe and felt that it may
be appropriate to have that decision reevaluated.
Thorn Jess voiced opposition to Mr. Brodie's comment indicating that he has brought no
new evidence to validate his concern.
Allan Cooper, San Luis Obispo, expressed concern regarding preservation of the
original siding. He pointed out that the original structure has been remodeled. He also
stated that the Secretary of the Interior Standards states that removal of features and
spaces should be avoided.
There were no further comments made from the public.
COMMITTEE COMMENTS:
Chairperson Costello approved of the proposed project.
ATTACHMENT 6
C8 - 20
)
CHC Minutes
February 25, 2013
Page 6
Committee Member Brajkovich addressed Mr. Brodie's comment. He supports the
solution proposed because it shows the adobe as it was originally envisioned.
Committee Member Taylor is in support of the proposed project.
Committee Member Dandekar concurred with Committee Member Brajkovich and
indicated support for the project.
There were no further comments made from the Committee.
On motion by Committee Member Taylor, seconded by Committee Member Hill.
recommended the approval of the application submitted by Staff with the addition of the
historical plague.
AYES:
NOES:
RECUSED:
ABSENT:
Committee Members Taylor, Brajkovich, Dandekar, Hill, and Costello
None
None
Vice-Chair Pavlik
The motion passed on a 5:0 vote.
Committee Member and Staff took a break.
5. City-Wide. CHC 31-12; Review of outline and progress report for the Historic
Context Statement project; City of San Luis Obispo -Community Development
Department., applicant. (Phil Dunsmore)
Phil Dunsmore, Senior Planner, presented the staff report, recommended that the
Cultural Heritage Committee take testimony and provide feedback on the project outline
based on findings which he outlined.
Draft outline of major periods of development:
• Early history -Native American -Mission-Mexican rule
• Late 19th century-town settlement
• Early 20th century
• Great Depression and WW II
• Mid-20th century
Committee members and staff had a general discussion of the workshop that was
attended and what information should be added to the outline that was determined from
the workshop. This topic will be open for several months to allow for additional input to
complete the outline with a goal of completion set for September or October 2013.
Committee Member Hill stated that current properties on the Historical list should be
reviewed to determine the theme they fit in and, if there are any homes that don't fall
into a theme, to establish additional themes at that time.
ATTACHMENT 6
C8 - 21
/~
CHC Minutes
February 25, 2013
Page 7
) Chairperson Costello voiced concern that remodeling on any historical home should be
stopped at the City level when applying for permits and directed to bring before the
Cultural Heritage Committee before any building commences.
COMMENT AND DISCUSSION:
6. Staff
a. Phil Dunsmore presented the agenda forecast.
b. Discussion of review process for alterations to historic properties was continued
to a future hearing to get additional information.
7. Committee
ADJOURNMENT: The meeting was adjourned at 8:41 p.m.
Respectfully submitted by,
Dawn Rudder
Recording Secretary
Approved by the Cultural Heritage Committee on March 25, 2013.
ising Administrative Assistant
ATTACHMENT 6
C8 - 22
Meeting Update
CULTURAL HERITAGE COMMITTEE
July 22, 2013 Monday 5:30 p.m.
ROLL CALL: Committee Members Sandy Baer, Thom Brajkovich, Jaime Hill, Patti
Taylor, Victoria Wood, Vice-Chair Hemalata Dandekar, and Chair Bob
Pavlik
STAFF: Phil Dunsmore, Senior Planner
PUBLIC COMMENT: Former Committee Member Buzz Kalkowski discussed potential
efforts toward creating a sub-committee or volunteer group designed to support funding
and resource allocation for the restoration and re-use of the La Loma adobe. He asked
for the CHC’s support in this effort.
ACCEPTANCE OF AGENDA:
MINUTES: Minutes of June 24, 2013, were approved as written.
PUBLIC HEARING ITEMS:
1. 1144 Buchon Street. CHC 106-12; Request to add a Contributing property to the
Master List of Historic Resources; R-2-H zone; Chris Hoover, applicant.
(Continued to August 26, 2013, CHC meeting) (Brian Leveille)
RECOMMENDATION: Approve the applicant’s request and continue the item to
the CHC meeting of August 26, 2013.
ACTION: The CHC did not take a formal action, but continued the item to August
26, 2013.
2. 863 Pacific Street. CHCMA 139-12; Request to modify a Mills Act contract for the
Master List “Zion Lutheran Church” Parsonage building; O zone; Cayucos
Cowboys, LLC, applicant. (Rachel Cohen)
RECOMMENDATION: Recommend the City Council approve a Mills Act contract
for 863/867 Pacific Street to include both the Church and Parsonage building.
ACTION: Moved by Hill/Baer to approve the Mills Act contract and add a finding to
clarify that DPR form would be modified to describe Parsonage building (7:0).
3. City-Wide. CHC 31-12; Review of outline and progress report for the Historic
Context Statement project; City of San Luis Obispo – Community Development
Dept., applicant. (Phil Dunsmore)
ATTACHMENT 7
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CHC Meeting Update
July 22, 2013
Page 2
RECOMMENDATION: Recommend the CHC take testimony and provide
feedback on the context statement.
ACTION: The item was continued to a date uncertain (no formal action).
COMMENT AND DISCUSSION:
4. Staff
a. Staff provided an update on the upcoming July 29th hearing date.
5. Committee
Committee members asked why a plaque had not been installed on the Anholm
Residence on north Chorro Street.
ADJOURNMENT
Meeting adjourned at 6:45 p.m.
ATTACHMENT 7
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1
HISTORIC PROPERTY PRESERVATION AGREEMENT BETWEEN
THE CITY OF SAN LUIS OBISPO AND THE OWNER OF THE HISTORIC BUILDINGS
LOCATED AT 863 AND 867 PACIFIC STREET, IN THE CITY AND COUNTY OF SAN LUIS
OBISPO, STATE OF CALIFORNIA.
THIS AGREEMENT is made and entered into this ____ day of _________, 2013, by and between the
City of San Luis Obispo, a municipal corporation (hereinafter referred to as the “City”), and Cayucos
Cowboys LLC (hereinafter referred to as “Owner”), and collectively referred to as the “parties.”
Section 1. Description of Preservation Measures. The Owner, 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 building
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.
ATTACHMENT 8
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2
b. 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. Secret ary 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; 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 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
ATTACHMENT 8
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3
states that the fee shall be 12 ½% of the full value of the property at the time of cancellation
without regard to any restriction imposed with this agreement.
b. If the historic building is acquired by eminent domain and the City Council determines that the
acquisition frustrates the purpose of the agreement, the agreement shall be cancelled and no fee
imposed, as specified in Government Code Section 50288.
Section 7. Enforcement of Agreement.
a. In lieu of and/or in addition to any provisions to cancel the agreement as referenced herein, the
City may specifically enforce, or enjoin the breach of, the terms of the agreement. In the event
of a default, under the provisions to cancel the agreement by the 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 building located at
863 and 867 Pacific Street, San Luis Obispo, California, Assessor’s Parcel Number 003-528-019, 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 8
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4
To City: Community Development Director
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401
To Owner: Cayucos Cowboys LLC
867 Pacific Street #210
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.
ATTACHMENT 8
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5
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.
OWNER
Cayucos Cowboys LLC Date
CITY OF SAN LUIS OBISPO
Mayor Jan Marx Date
ATTEST:
_______________________
Anthony Mejia, City Clerk
APPROVED AS TO FORM:
_______________________
J. Christine Dietrick, City Attorney
ALL SIGNATURES MUST BE NOTARIZED
ATTACHMENT 8
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6
EXHIBIT A
MAINTENANCE AND IMPROVEMENT MEASURES FOR ZION LUTHERAN CHURCH
BUILDING LOCATED AT 863 PACIFIC 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 863/867 Pacific 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 Ordinance and the Secretary of the Interior’s Standards for the
Treatment of Historic Properties:
1. Reroof church and parsonages structures with shingles more in character with historic
style
2. Complete parsonage renovation to include interior and exterior painting
3. Renovate site landscaping to include more period appropriate landscape materials
4. Replace damaged doors on both structures with solid wood doors
5. Repair of existing wood gutter and replacement of gutter on eastern elevation with metal
gutters to protect structure from water damage
6. Replacement of vinyl windows with more historically appropriate windows
7. Repainting of the exterior of the Church structure
8. Ongoing prevention of termite infestations and fungal problems
9. Required mechanical system upgrades
10. Required plumbing repairs and pipe replacement
11. Regular repainting of the structure as required.
OWNER
______________________________________ ______________________________
Cayucos Cowboys LLC Date
ATTACHMENT 8
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7
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
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
ATTACHMENT 8
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ATTACHMENT 9
RESOLUTION NO. (2013 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY SAN LUIS OBISPO APPROVING A
HISTORIC PROPERTY PRESERVATION AGREEMENT BETWEEN THE CITY OF SAN
LUIS OBISPO AND OWNERS OF A DESIGNATED HISTORIC RESOURCE AT 863 AND
867 PACIFIC STREET
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 003-528-
019, located at 863 and 867 Pacific Street, San Luis Obispo, California 93401, also described as the
Zion Lutheran Church and Parsonage, (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 Ordinance; 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 public
hearings on February 25, 2013 and July 22, 2013, to consider a request by Cayucos Cowboys, LLC,
owner of 863 and 867 Pacific 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 Ordinance.
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
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Council Resolution No. XXXX (2013 Series) ATTACHMENT 9
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. Zion Lutheran Church, located at 863 and 867 Pacific Street, has been recognized as an historic
asset in the community by its designation as a Master List Historic Property. As such,
maintaining the structures, including the main church building and parsonage, 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.
3. The Historic Resources Inventory clearly indicates the parsonage, a bungalow-type structure with
a side-facing gable roof, full front porch, and small shed roof dormer, as a related feature to the
Master List property.
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 863 and 867 Pacific Street”, attached hereto and entered into between the City and
owner, Cayucos Cowboys, LLC.
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 _____ day of _____________________ 2013.
____________________________________
Mayor Jan Marx
ATTEST:
Anthony Mejia, City Clerk
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Council Resolution No. XXXX (2013 Series) ATTACHMENT 9
APPROVED AS TO FORM:
Christine Dietrick, City Attorney
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