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SR-406-002 (6) PCD:SF:JT:AS:KC:EB: F:\PLAN\SHARE\COUNCIL\Mills Act\MA3Properties.Final.CC rpt .doc Council Mtg: December 11, 2001 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Mills Act Historical Property Contracts between the City of Santa Monica and the Property Owners of 2608 Third Street, a Designated Contributor to the Third Street Neighborhood Historic District; 2402 4th Street, #1 (Hollister Court), a City Landmark; and 2450 25th Street, a Designated Structure of Merit. Applicants: Robert Ulrich & Lisa Langlois (2608 Third Street) Peter Kerndt & Nancy Geshke (2402 4th Street, #1) Vincent Landay & Cheryl Clark (2450 25th Street) INTRODUCTION This report recommends that the City Council adopt three resolutions authorizing the City Manager to negotiate and execute Mills Act Historic Property Preservation Agreements between the City of Santa Monica and the property owners of three residential properties – a designated contributor to the Third Street Neighborhood Historic District, a designated Landmark and a designated Structure of Merit. The Mills Act is a state law that enables local governments to enter into contracts with owners of qualified historic properties to authorize a property tax reduction. The Mills Act is one of the few financial incentives available to owners of historic properties and is an important tool in the Citys efforts to = encourage the designation and long-term preservation of the Citys historic resources. = The three attachments contain information for each property, including a proposed resolution; a Mills Act Contract application with a financial analysis for the property as well as the proposed restorative/rehabilitation plan that would be incorporated into the Mills Act Contract; and the draft contract. BACKGROUND In 1991, as part of a comprehensive revision to the Citys Landmarks Ordinance, the City = Council authorized designated structures of merit, landmarks, and contributing structures located in designated historic districts to be considered qualified historical properties A@ eligible for historical property contracts submitted pursuant to the provisions of California Government Code Sections 50280-50290. As a result, property owners of such designated historic properties may file a Mills Act Contract Application. Once approved, a Mills Act contract requires the County Tax Assessors office to determine the value of the = historic property based upon its current net operating income, rather than upon the traditional assessed valuation method, resulting in most cases in a property tax reduction. For structures that are owner-occupied such as the subject property, the net operating income is determined by the income the property would produce if rented. In exchange for the property tax reduction, the owner agrees to protect, maintain and, if necessary, restore the historic property. Under the traditional method of determining property taxes, properties are reassessed when sold. However, since Mills Act contracts run with the property, subsequent owners may realize greater tax benefits, as the assessed property value typically increases when property is sold, resulting in an even greater difference between the property taxes under the assessed valuation method versus the property tax calculation permitted by the Mills Act contract. This can be a significant marketing feature for the property in terms of future sales and is considered an important historic preservation incentive because the property will be maintained. The initial Mills Act Contract term is a ten-year period. The agreement is renewed automatically each year on the contracts anniversary, and an additional year is added to = the contract term. This effectively makes the actual term of the contract at least ten years but possibly indefinite unless the owner or City submits a notice of non-renewal. If such a notice on non-renewal were submitted, the contract would terminate at the end of the then current ten-year term. Alternatively, the owner may petition the City to initiate an immediate cancellation, which would result in a penalty equal to 12% of the propertys 2= assessed market value. The City may also cancel the contract in the case of breach of the contract conditions. The rights and obligations to the contract are also binding upon successive property owners during the contract term. The three Mills Act applications provide estimates of the property owners tax savings as = well as an estimate of the Citys annual costs due to the property tax reduction. Since this = estimate is based on financial data submitted by the applicants, the County Assessor will verify the calculation prior to the final tax assessment. By executing the contract, the City does not corroborate the applicants submitted financial statement, but authorizes tax = abatement for the property. (See Budget/Fiscal Impact, below, for further detail.) ANALYSIS 2608 Third Street The property at 2608 Third Street is a contributor to the Third Street Neighborhood Historic District, designated on July 1, 1990. The proposed maintenance plan for this property is included in the Mills Act application and will be incorporated into the Mills Act Contract (Historic Property Preservation Agreement). The property owners of 2608 Third Street have requested to enter into a Mills Act contract to offset the cost of normal maintenance and repairs, as well as some restoration work. They are committing to undertake a number of maintenance projects for the Colonial Revival style house, which was built in 1905. These projects include updating the plumbing and electrical systems, adding insulation, repairing the foundation, and various activities to restore the exterior of the building, including repairing a damaged chimney, damaged wood, exterior stairs, rebuilding and restoring the roof, and rebuilding and replacing windows. The proposal calls for repainting the house in the last year of the contract following completion of other work. All exterior work would require Planning Division or Landmarks Commission approval, through processes required for the Third Street Neighborhood Historic District [SMMC 9.40]. 2402 4th Street, #1 2402 4th Street, #1 (Hollister Court) is a unit that is part of a property designated as a City landmark on December 13, 1990. The property consists of two rows of Craftsman-style bungalows facing a central walk street. The maintenance plan for this property is included in the Mills Act application and will be incorporated into the Mills Act Contract (Historic Property Preservation Agreement). The property owners of 2402 Fourth Street, #1, have requested to enter into a Mills Act contract to offset the cost of normal maintenance and repairs, as well as some restoration work. The plan for restoring and rehabilitating the structure includes replacing damaged wood, replacing the roof, restoring windows and doors to their original styles, and painting the building’s exterior. The applicant’s planned interior improvements are not included in the Mills Act Contract because the interior portions of the house are not part of the Landmark designation. 2450 25th Street The single-family residence at 2450 25th Street was designated September 13, 1999, as a City Structure of Merit at its original location at 1140 7th Street. The maintenance plan for this property is included in the Mills Act application and will be incorporated into the Mills Act Contract (Historic Property Preservation Agreement). The property owners of 2450 25th Street have requested to enter into a Mills Act contract to offset the cost of normal maintenance and repairs, as well as the cost of restoring the structure at its new location. This request is an unusual case in which the applicants undertook the burden of saving this historic structure by relocating it. Because the previous owner, St. Monica’s Church, needed to remove the structure from the property, extensive initial costs have already been incurred, and the applicants have nearly completed the restoration work. Therefore, most of the “proposed” work under the Mills Act Contract has actually already taken place, with all required City permits. The applicants are requesting the Mills Act tax incentive based on their current restoration activity and on continued general maintenance of the property in a way that preserves the building’s architectural and historic integrity over the next 10- year period. LANDMARKS COMMISSION REVIEW The Landmarks Commission reviewed these three requests at its November 12, 2001 meeting and directed staff to forward recommendations to the Council in support of these applications. BUDGET/FISCAL IMPACT Execution of these Mills Act contracts would result in reduced property tax revenue to the City. The tax rate under the Mills Contract is determined by the Los Angeles County Assessor, based on location-specific rates and an evaluation of the worksheets provided with the applications. According to the calculations in the financial analysis worksheets, the current annual property taxes and estimated annual cost to the City in approving Mills Act Contracts for these properties are estimated as follows: Property Address Current taxes Estimated annual cost to City in lost tax revenue under Mills Act Contract 2608 Third Street $8,310.72 $861 2402 Fourth Street $2,415 $122 2450 25th Street $6,632 $783 These amounts would increase approximately 2% each year. While these estimates are calculated as accurately as possible, the County Tax Assessor will calculate the actual taxes only after the contract has been executed and recorded with the County. RECOMMENDATION The Mills Act applications for all three of these properties have been properly submitted, contain appropriate maintenance/restoration plans and will assist the property owners to preserve these City Landmarks. It is recommended that the City Council adopt the three attached resolutions and authorize the City Manager to execute Historical Property Preservation Agreements under the Mills Act, between the City of Santa Monica and each of the property owners of 2608 Third Street, 2402 Fourth Street #1 and 2450 25th Street. Prepared by: Suzanne Frick, Director Jay M. Trevino, AICP, Planning Manager Amanda Schachter, Principal Planner Kimberly Christensen, AICP, Senior Planner Elizabeth Bar-El, AICP, Associate Planner City Planning Division Planning and Community Development Department Attachments: A. 2608 Third Street: Supporting Documentation (including the draft Mills Act Resolution, Mills Act Contract Application and Financial Analysis, draft Historic Property Preservation Agreement and photographs) B. 2402 Fourth Street #1: Supporting Documentation (including the draft Mills Act Resolution, Mills Act Contract Application and Financial Analysis, draft Historic Property Preservation Agreement and photographs) C. 2450 25th Street: Supporting Documentation (including the draft Mills Act Resolution, Mills Act Contract Application and Financial Analysis, draft Historic Property Preservation Agreement and photographs) F:\PLAN\SHARE\COUNCIL\Mills Act\MA 3 Properties CC rpt .doc ATTACHMENT A 2608 Third Street: Supporting Documentation (including the draft Mills Act Resolution, Mills Act Contract Application and Financial Analysis, draft Historic Property Preservation Agreement and photographs) PCD:SF:JT:AS:KC:EB:F:\PLAN\SHARE\COUNCIL\Mills Act\Mills Act Reso 2608 3rd St.doc City Council Meeting: 12/11/01 Santa Monica, California RESOLUTION NUMBER ___ (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AUTHORIZING THE CITY MANAGER TO EXECUTE A HISTORICAL PROPERTY CONTRACT IN ACCORDANCE WITH GOVERNMENT CODE SECTION 50280 WITH THE OWNER OF THE PROPERTY LOCATED AT 2608 THIRD STREET IN SANTA MONICA WHEREAS, Government Code Section 50280 et seq. authorizes a city to enter into a historical property contract with the owner of any qualified historical property to restrict the use of such property so that it retains its historically significant characteristics in return for which the property owner obtains property tax relief; and WHEREAS, Santa Monica Municipal Code Section 9.36.270(g) provides that designated structures of merit, landmarks, and contributing structures located in historic districts that are privately owned shall be considered qualified historical properties eligible to enter into historical property contracts with the City upon resolution by the City Council; and WHEREAS, the property located at 2608 Third Street is a contributor to a designated City Historic District, and the owner of the property has filed an application to enter into a historical property contract with the City; and WHEREAS, the Landmarks Commission reviewed the owner=s application at its November 12, 2001, meeting and directed City Staff to forward a recommendation to the City Council in support of the application; and WHEREAS, the City Council has determined that it is appropriate for the City to enter into a historical property contract with the owner of the property located at 2608 Third Street, NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Pursuant to Santa Monica Municipal Code Section 9.36.270(g), the City Council authorizes the City Manager to enter into a historical property contract with the owner of the property located at 2608 Third Street, Santa Monica, California in accordance with Government Code Section 50280 et seq. SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: ______________________________ MARSHA JONES MOUTRIE City Attorney Recording Requested By: City of Santa Monica When Recorded Mail To: City of Santa Monica 1685 Main Street Santa Monica, California 90407 Attention: City Attorney No Recording Fee Required Government Code Section 27383 HISTORIC PROPERTY PRESERVATION AGREEMENT THIS AGREEMENT is made and entered in to this ____ day of _________, 2001, by and between the City of Santa Monica, a municipal corporation (hereinafter referred to as the "City") and Robert Ulrich & Lisa Langlois (hereinafter referred to as "Owner"). R E C I T A L S: A. California Government Code Section 50280, et seq. authorizes cities to enter into contracts with the owners of qualified historical property, as defined in Government Code Section 90280.1, to provide for the use, maintenance and restoration of such historical property so to retain its characteristics as property of historical significance; and B. Owner possesses fee title to certain real property, together with associated structures and improvements thereon, located at 2608 Third Street, Santa Monica, California, (hereinafter such property shall be referred to as the "Historic Property"). A legal description of the Historic Property is attached hereto, marked as Exhibit "A" and is incorporated herein by this reference; and C. On July 1, 1990, the Landmarks Commission of the City of Santa Monica designated the Historic Property as a contributor to the Third Street Neighborhood Historic District pursuant to the terms and provisions of Santa Monica Municipal Code Chapter 9.36; and D. On December 11, 2001, the City Council of the City of Santa Monica approved Resolution Number ____ (CCS) authorizing the execution of this Agreement between the City of Santa Monica and the property owner of 2608 Third Street; and E. City and Owner, for their mutual benefit, now desire to enter into this Agreement both to protect and preserve the characteristics of historical significance of the Historic Property and to qualify the Historic Property for an assessment of valuation pursuant to the Provisions of Chapter 3, of Part 2, of Division 1 of the California Revenue and Taxation Code. NOW, THEREFORE, City and Owner, in consideration of the mutual covenants and conditions set forth herein, do hereby agree as follows: 1. Effective Date and Term of Agreement. This Agreement shall be effective and commence on January 1, 2002, and shall remain in effect for a term of ten (10) years thereafter. Each year upon the anniversary of the effective date, such initial term will automatically be extended as provided in paragraph 2, below. 2. Renewal. Each year on the anniversary of the effective date of this Agreement (hereinafter referred to as the "renewal date"), a year shall automatically be added to the initial term of this Agreement unless notice of non-renewal is mailed as provided herein. If either Owner or City desires in any year not to renew the Agreement, Owner or City shall serve written notice of non-renewal of the Agreement on the other party in advance of the annual renewal date of the Agreement. Unless such notice is served by Owner to City at least ninety (90) days prior to the annual renewal date, or served by City to 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. Upon receipt by the Owner of a notice of non-renewal, Owner may make a written protest of the notice of non- renewal. At any time prior to the renewal date, the City may withdraw its notice to Owner of non-renewal. If either City or Owner serves notice to the other of non-renewal in any year, the Agreement shall remain in effect for the balance of the term then remaining, either from its original execution or from the last renewal of the Agreement, whichever may apply. 3. Standards for Historical Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements and restrictions: a. Owner shall preserve and maintain the Historic Property in accordance with the minimum standards and conditions for maintenance, use and preservation attached hereto as Exhibit "B", and incorporated herein by this reference. b. In any restoration or rehabilitation of the property, the Owner shall restore and rehabilitate the property according to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation, the United States Secretary of the Interior's Standards for Rehabilitation, the State Historical Building Code, and the City of Santa Monica to the extent applicable. c. Owner shall make improvements to the Historic Property in accordance with the schedule of home improvements, drafted by the Owner and approved by the City Council, attached as Exhibit "C". d. Owner shall allow reasonable periodic examinations, by prior appointment, of the interior and exterior of the Historic Property by representatives of the County Assessor, State Department of Parks and Recreation, State Board of Equalization, and City, as may be necessary to determine owner's compliance with the terms and provisions of this Agreement. 4. Provision of Information of Compliance. Owner hereby agrees to furnish City with any and all information requested by the City that may be necessary or advisable to determine compliance with the terms and provisions of this Agreement. 5. Cancellation. City, following a duly noticed public hearing as set forth in California Government Code Section 50285, may cancel this Agreement if it determines that Owner breached any of the conditions of this Agreement (including the obligation to restore or rehabilitate the property in the manner specified in subparagraph 3 (c) 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 set forth in Government Code Section 50280.1. In the event of cancellation, Owner may be subject to payment of cancellation fees set forth in California Government Code Section 50286. 6. Notice to Office of Historic Preservation. Within six (6) months of execution of this Agreement, Owner shall send written notice of this Agreement, including a copy hereof, to the State Office of Historic Preservation. 7. Enforcement of Agreement. In addition to the remedy provided in the cancellation provision of this Agreement, City may specifically enforce, or enjoin the breach of, the terms of this Agreement. The City does not waive any claim of owner default if 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 Santa Monica Municipal Code Chapter 9.36 are available to the City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any subsequent breach or default. 8. Burden to Run With Property. The covenants and conditions herein contained shall apply to and bind the heirs, successors and assigns of all the parties hereto and shall run with and burden the subject property for the benefit of the surrounding landowners and the City of Santa Monica. Owner shall expressly make the conditions and covenants contained in this Agreement a part of any deed or other instrument conveying any interest in the property. 9. Notice. Any notice required to be given by the terms of this Agreement shall be provided at the address of the parties as specified below or at any other address as may be later specified by the parties. To City: City of Santa Monica 1685 Main Street, Room 212 Santa Monica, CA 90401 Attention: Department of Planning and Community Development To Owner: Robert Ulrich & Lisa Langlois 2608 Third Street Santa Monica, CA 90405 10. No Joint Venture. 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 venturers or members of any joint enterprise. 11. Hold Harmless. As between the City and the Owner, the Owner is deemed to assume responsibility and liability for, and the Owner shall indemnify and hold harmless the City and its City Council, boards and commissions, officers, agents, servants or employees from and against any and all claims, loss, damage, charge or expense, whether direct or indirect, to which the City or its City Council, boards and commissions, officers, agents, servants or employees may be put or subjected, by reason of any damage, loss or injury of any kind or nature whatever to persons or property caused by or resulting from or in connection with any negligent act or action, or any neglect, omission or failure to act when under a duty to act, on the part of the Owner or any of its officers, agents, servants, employees or subcontractors in this or their performance hereunder. 12. Attorneys' Fees and Costs. In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or breach thereof, the prevailing party shall be entitled to recover from the losing party reasonable expenses, attorneys' fees and costs. 13. Severability. In the event any limitation, condition, restriction, covenant or provision contained in this Agreement is held to be invalid, void or unenforceable by any court or competent jurisdiction, the remaining portions of this Agreement shall, nevertheless be and remain in full force and effect. 14. Applicable Law. All questions pertaining to the validity and interpretation of this Agreement shall be determined in accordance with the laws of California applicable to contracts made to and to be performed within the state. 15. Recordation. Within 20 days of execution, the parties shall cause this Agreement to be recorded in the official records of the County of Los Angeles. 16. Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. 17. Sale or Conversion of Property. In the event of sale or conversion of the Historic Property, the Conditions, Covenants and Restrictions (C. C. & R.'s) for the Historic Property, if required, shall incorporate by reference all obligations and duties of the parties created by this Agreement. 18. Prohibition Against Discrimination. Owner agrees not to discriminate or impose any restrictions on the sale, lease, or occupancy of the Subject Property on the basis of sex, race, religion, ancestry, national origin, age, sexual preference, pregnancy, marital status, family composition, or the potential or actual occupancy of minor children. Owner further agrees to take affirmative action to ensure that no such person is discriminated against for any of the aforementioned reasons. IN WITNESS WHEREOF, City and Owner have caused this Agreement to be executed as of the day and year first written above. CITY OF SANTA MONICA By:____________________________ Susan E. McCarthy, City Manager Approved As To Form: Owners _____________________________ By:_________________________ Marsha Jones Moutrie Robert Ulrich City Attorney By:____________________________ Lisa Langlois ATTEST: _______________________________ Maria Stewart, City Clerk STATE OF CALIFORNIA ) ) ss. COUNTY OF LOS ANGELES ) On __________________, 2001, before me, ___________________________ the undersigned, a Notary Public in and for said State, personally appeared ____________________, personally known to me - OR - proven to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity as property owner. WITNESS my hand and official seal. _______________________________ SEAL Notary Public in and for said State Description of Instrument Title: Historic Property Preservation Agreement Property location: 2608 Third Street Number of Pages: 5, plus Exhibits A, B, and C STATE OF CALIFORNIA ) ) ss. COUNTY OF LOS ANGELES ) On __________________, 2001, before me, ___________________________ the undersigned, a Notary Public in and for said State, personally appeared ____________________, personally known to me - OR - proven to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in her authorized capacity as property owner. WITNESS my hand and official seal. _______________________________ SEAL Notary Public in and for said State Description of Instrument Title: Historic Property Preservation Agreement Property location: 2608 Third Street Number of Pages: 5, plus Exhibits A, B, and C STATE OF CALIFORNIA ) ) ss. COUNTY OF LOS ANGELES ) On _______________, 2001, before me, the undersigned, a Notary Public in and for said State, personally appeared SUSAN E. McCARTHY, known to me to be the CITY MANAGER of the CITY OF SANTA MONICA, a Municipal Corporation, that executed the within instrument on behalf of the CITY OF SANTA MONICA, and acknowledged to me that the CITY OF SANTA MONICA executed the same. WITNESS my hand and official seal. SEAL ___________________________________ Notary Public in and for said State Description of Instrument Title: Historic Property Preservation Agreement Property location: 2608 Third Street Number of Pages: 5, plus Exhibits A, B, and C EXHIBIT "A" LEGAL DESCRIPTION In the City of Santa Monica, County of Los Angeles, State of California: Lot 2 In Block “N” of Vawter’s Ocean View Tract, In The City of Santa Monica, County Of Los Angeles, State Of California, As Per Map Recorded In Book 9 Page(s) 1 and 2 Of Miscellaneous Records, In The Office Of The County Recorder Of Said County. EXHIBIT "B" HISTORIC PROPERTY PRESERVATION Agreement PROPERTY MAINTENANCE CITY OF SANTA MONICA Property Maintenance. As required by Landmarks Ordinance Section 9.36.190, all designated landmarks and structures located within a historic district shall be maintained in good repair and preserved against deterioration through the prompt repair of any of the following: 1. Facades which may fall and injure members of the public or property. 2. Deteriorated or inadequate foundation, defective or deteriorated flooring or floor supports, deteriorated walls or other vertical structural supports. 3. Members of ceilings, roofs, ceiling and roof supports or other horizontal members which age, split or buckle due to defective material or deterioration. 4. Deteriorated or ineffective waterproofing of exterior walls, roofs, foundations or floors, including broken windows or doors. 5. Defective or insufficient weather protection for exterior wall covering, including lack of paint or weathering due to lack of paint or other protective covering. 6. Any fault or defect in the building that renders it not properly watertight or structurally unsafe. In addition, the following maintenance measures are also required for the subject property: 1. Remove the existing roof and repair in-kind. Repair all roof leaks, re-flash, seal and re-gutter as necessary. 2. Repair or replace existing damaged broken plumbing lines. Repair all miscellaneous plumbing leaks within the walls. 3. Rewire, rework, and update as needed interior electrical wiring. Rework and update exterior electrical panels to make watertight. EXHIBIT "C" HISTORIC PROPERTY PRESERVATION Agreement PROPOSED HOME IMPROVEMENTS The following renovation projects shall be completed by the applicant over the initial 10 year term of the contract. Item Year Task Estimate 1. 2001 Fix electrical / safety issue (remove knob & tube) $3,100.00 2. 2001 Install heating (none exists) $3,900.00 3. 2002 Rebuild broken foundation (jack up whole house) $30,000.00 4. 2002 Restore / repair termite damage $5,000.00 Re-pipe & plumb whole house 5. 2003 $6,600.00 6. 2003 Re-wire whole house $6,900.00 7. 2004 Rebuild chimney (fell during earthquake) $4,500.00 8. 2005 Install insulation (none exists) $4,300.00 9. 2006 Replace exterior stairs $7,000.00 10. 2007 Rebuild / replace windows $8,000.00 11. 2008 Rebuild / restore roof / soffit / facia $6,500.00 12. 2009 Paint / restore exterior $5,300.00 ATTACHMENT B 2402 Fourth Street #1: Supporting Documentation (including the draft Mills Act Resolution, Mills Act Contract Application and Financial Analysis, draft Historic Property Preservation Agreement and photographs) PCD:SF:JT:AS:KC:EB:F:\PLAN\SHARE\COUNCIL\Mills Act\Mills Act Reso 2402 4th St.doc City Council Meeting: 12/11/01 Santa Monica, California RESOLUTION NUMBER ___ (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AUTHORIZING THE CITY MANAGER TO EXECUTE A HISTORICAL PROPERTY CONTRACT IN ACCORDANCE WITH GOVERNMENT CODE SECTION 50280 WITH THE OWNER OF THE PROPERTY LOCATED AT 2402 FOURTH STREET #1 (HOLLISTER COURT) IN SANTA MONICA WHEREAS, Government Code Section 50280 et seq. authorizes a city to enter into a historical property contract with the owner of any qualified historical property to restrict the use of such property so that it retains its historically significant characteristics in return for which the property owner obtains property tax relief; and WHEREAS, Santa Monica Municipal Code Section 9.36.270(g) provides that designated structures of merit, landmarks, and contributing structures located in historic districts that are privately owned shall be considered qualified historical properties eligible to enter into historical property contracts with the City upon resolution by the City Council; and WHEREAS, the property located at 2402 Fourth Street, #1, is a designated City landmark and the owner of the property has filed an application to enter into a historical property contract with the City; and WHEREAS, the Landmarks Commission reviewed the owner=s application at its November 12, 2001, meeting and directed City Staff to forward a recommendation to the City Council in support of the application; and WHEREAS, the City Council has determined that it is appropriate for the City to enter into a historical property contract with the owner of the property located at 2402 Fourth Street, #1, NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Pursuant to Santa Monica Municipal Code Section 9.36.270(g), the City Council authorizes the City Manager to enter into a historical property contract with the owner of the property located at 2402 Fourth Street, #1, Santa Monica, California in accordance with Government Code Section 50280 et seq. SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: ______________________________ MARSHA JONES MOUTRIE City Attorney Recording Requested By: City of Santa Monica When Recorded Mail To: City of Santa Monica 1685 Main Street Santa Monica, California 90407 Attention: City Attorney No Recording Fee Required Government Code Section 27383 HISTORIC PROPERTY PRESERVATION AGREEMENT THIS AGREEMENT is made and entered in to this ____ day of _________, 2001, by and between the City of Santa Monica, a municipal corporation (hereinafter referred to as the "City") and Peter R. Kerndt (hereinafter referred to as "Owner"). R E C I T A L S: A. California Government Code Section 50280, et seq. authorizes cities to enter into contracts with the owners of qualified historical property, as defined in Government Code Section 90280.1, to provide for the use, maintenance and restoration of such historical property so to retain its characteristics as property of historical significance; and B. Owner possesses fee title to certain real property, together with associated structures and improvements thereon, located at 2402 Fourth Street, #1, Santa Monica, California, (hereinafter such property shall be referred to as the "Historic Property"). A legal description of the Historic Property is attached hereto, marked as Exhibit "A" and is incorporated herein by this reference; and C. On December 13, 1990, the Landmarks Commission of the City of Santa Monica designated the Historic Property as a historic landmark pursuant to the terms and provisions of Santa Monica Municipal Code Chapter 9.36; and D. On December 11, 2001, the City Council of the City of Santa Monica approved Resolution Number ____ (CCS) authorizing the execution of this Agreement between the City of Santa Monica and the property owner of 2402 Fourth Street, #1; and E. City and Owner, for their mutual benefit, now desire to enter into this Agreement both to protect and preserve the characteristics of historical significance of the Historic Property and to qualify the Historic Property for an assessment of valuation pursuant to the Provisions of Chapter 3, of Part 2, of Division 1 of the California Revenue and Taxation Code. NOW, THEREFORE, City and Owner, in consideration of the mutual covenants and conditions set forth herein, do hereby agree as follows: 1. Effective Date and Term of Agreement. This Agreement shall be effective and commence on January 1, 2002, and shall remain in effect for a term of ten (10) years thereafter. Each year upon the anniversary of the effective date, such initial term will automatically be extended as provided in paragraph 2, below. 2. Renewal. Each year on the anniversary of the effective date of this Agreement (hereinafter referred to as the "renewal date"), a year shall automatically be added to the initial term of this Agreement unless notice of non-renewal is mailed as provided herein. If either Owner or City desires in any year not to renew the Agreement, Owner or City shall serve written notice of non-renewal of the Agreement on the other party in advance of the annual renewal date of the Agreement. Unless such notice is served by Owner to City at least ninety (90) days prior to the annual renewal date, or served by City to 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. Upon receipt by the Owner of a notice of non-renewal, Owner may make a written protest of the notice of non- renewal. At any time prior to the renewal date, the City may withdraw its notice to Owner of non-renewal. If either City or Owner serves notice to the other of non-renewal in any year, the Agreement shall remain in effect for the balance of the term then remaining, either from its original execution or from the last renewal of the Agreement, whichever may apply. 3. Standards for Historical Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements and restrictions: a. Owner shall preserve and maintain the Historic Property in accordance with the minimum standards and conditions for maintenance, use and preservation attached hereto as Exhibit "B", and incorporated herein by this reference. b. In any restoration or rehabilitation of the property, the Owner shall restore and rehabilitate the property according to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation, the United States Secretary of the Interior's Standards for Rehabilitation, the State Historical Building Code, and the City of Santa Monica to the extent applicable. c. Owner shall make improvements to the Historic Property in accordance with the schedule of home improvements, drafted by the Owner and approved by the City Council, attached as Exhibit "C". d. Owner shall allow reasonable periodic examinations, by prior appointment, of the interior and exterior of the Historic Property by representatives of the County Assessor, State Department of Parks and Recreation, State Board of Equalization, and City, as may be necessary to determine owner's compliance with the terms and provisions of this Agreement. 4. Provision of Information of Compliance. Owner hereby agrees to furnish City with any and all information requested by the City that may be necessary or advisable to determine compliance with the terms and provisions of this Agreement. 5. Cancellation. City, following a duly noticed public hearing as set forth in California Government Code Section 50285, may cancel this Agreement if it determines that Owner breached any of the conditions of this Agreement (including the obligation to restore or rehabilitate the property in the manner specified in subparagraph 3 (c) 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 set forth in Government Code Section 50280.1. In the event of cancellation, Owner may be subject to payment of cancellation fees set forth in California Government Code Section 50286. 6. Notice to Office of Historic Preservation. Within six (6) months of execution of this Agreement, Owner shall send written notice of this Agreement, including a copy hereof, to the State Office of Historic Preservation. 7. Enforcement of Agreement. In addition to the remedy provided in the cancellation provision of this Agreement, City may specifically enforce, or enjoin the breach of, the terms of this Agreement. The City does not waive any claim of owner default if 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 Santa Monica Municipal Code Chapter 9.36 are available to the City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any subsequent breach or default. 8. Burden to Run With Property. The covenants and conditions herein contained shall apply to and bind the heirs, successors and assigns of all the parties hereto and shall run with and burden the subject property for the benefit of the surrounding landowners and the City of Santa Monica. Owner shall expressly make the conditions and covenants contained in this Agreement a part of any deed or other instrument conveying any interest in the property. 9. Notice. Any notice required to be given by the terms of this Agreement shall be provided at the address of the parties as specified below or at any other address as may be later specified by the parties. To City: City of Santa Monica 1685 Main Street, Room 212 Santa Monica, CA 90401 Attention: Department of Planning and Community Development To Owner: Peter R. Kerndt 2402 Fourth Street, #1 Santa Monica, CA 90405 10. No Joint Venture. 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 venturers or members of any joint enterprise. 11. Hold Harmless. As between the City and the Owner, the Owner is deemed to assume responsibility and liability for, and the Owner shall indemnify and hold harmless the City and its City Council, boards and commissions, officers, agents, servants or employees from and against any and all claims, loss, damage, charge or expense, whether direct or indirect, to which the City or its City Council, boards and commissions, officers, agents, servants or employees may be put or subjected, by reason of any damage, loss or injury of any kind or nature whatever to persons or property caused by or resulting from or in connection with any negligent act or action, or any neglect, omission or failure to act when under a duty to act, on the part of the Owner or any of its officers, agents, servants, employees or subcontractors in this or their performance hereunder. 12. Attorneys' Fees and Costs. In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or breach thereof, the prevailing party shall be entitled to recover from the losing party reasonable expenses, attorneys' fees and costs. 13. Severability. In the event any limitation, condition, restriction, covenant or provision contained in this Agreement is held to be invalid, void or unenforceable by any court or competent jurisdiction, the remaining portions of this Agreement shall, nevertheless be and remain in full force and effect. 14. Applicable Law. All questions pertaining to the validity and interpretation of this Agreement shall be determined in accordance with the laws of California applicable to contracts made to and to be performed within the state. 15. Recordation. Within 20 days of execution, the parties shall cause this Agreement to be recorded in the official records of the County of Los Angeles. 16. Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. 17. Sale or Conversion of Property. In the event of sale or conversion of the Historic Property, the Conditions, Covenants and Restrictions (C. C. & R.'s) for the Historic Property, if required, shall incorporate by reference all obligations and duties of the parties created by this Agreement. 18. Prohibition Against Discrimination. Owner agrees not to discriminate or impose any restrictions on the sale, lease, or occupancy of the Subject Property on the basis of sex, race, religion, ancestry, national origin, age, sexual preference, pregnancy, marital status, family composition, or the potential or actual occupancy of minor children. Owner further agrees to take affirmative action to ensure that no such person is discriminated against for any of the aforementioned reasons. IN WITNESS WHEREOF, City and Owner have caused this Agreement to be executed as of the day and year first written above. CITY OF SANTA MONICA By:____________________________ Susan E. McCarthy, City Manager Approved As To Form: Owners _____________________________ By:_________________________ Marsha Jones Moutrie Peter R. Kerndt City Attorney ATTEST: _______________________________ Maria Stewart, City Clerk STATE OF CALIFORNIA ) ) ss. COUNTY OF LOS ANGELES ) On __________________, 2001, before me, ___________________________ the undersigned, a Notary Public in and for said State, personally appeared ____________________, personally known to me - OR - proven to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity as property owner. WITNESS my hand and official seal. _______________________________ SEAL Notary Public in and for said State Description of Instrument Title: Historic Property Preservation Agreement Property location: 2402 Fourth Street, #1 Number of Pages: 5, plus Exhibits A, B, and C STATE OF CALIFORNIA ) ) ss. COUNTY OF LOS ANGELES ) On _______________, 2001, before me, the undersigned, a Notary Public in and for said State, personally appeared SUSAN E. McCARTHY, known to me to be the CITY MANAGER of the CITY OF SANTA MONICA, a Municipal Corporation, that executed the within instrument on behalf of the CITY OF SANTA MONICA, and acknowledged to me that the CITY OF SANTA MONICA executed the same. WITNESS my hand and official seal. SEAL ___________________________________ Notary Public in and for said State Description of Instrument Title: Historic Property Preservation Agreement Property location: 2402 Fourth Street, #1 Number of Pages: 5, plus Exhibits A, B, and C EXHIBIT "A" LEGAL DESCRIPTION In the City of Santa Monica, County of Los Angeles, State of California: A Condominium Comprised of: Parcel 1: An undivided 1/13th interest in and to Lot 1 of Tract No. 51352, in the City of Santa Monica, County of Los Angeles, State of California, as per map recorded in Book 1199 Pages 84 through 86 inclusive of Maps, in the office of the County Recorder of said County. EXCEPT therefrom Units 1 through 13 inclusive as defined and delineated on a Condominium Plan recorded August 30, 1993, as Instrument No. 93- 1687545, Official Records, and amended Condominium Plan recorded October 14, 1993, as Instrument No. 93-2004233, Official Records. Parcel 2: Unit 11 as defined and delineated on the above referred to Condominium Plan. EXHIBIT "B" HISTORIC PROPERTY PRESERVATION Agreement PROPERTY MAINTENANCE CITY OF SANTA MONICA Property Maintenance. As required by Landmarks Ordinance Section 9.36.190, all designated landmarks and structures located within a historic district shall be maintained in good repair and preserved against deterioration through the prompt repair of any of the following: 1. Facades which may fall and injure members of the public or property. 2. Deteriorated or inadequate foundation, defective or deteriorated flooring or floor supports, deteriorated walls or other vertical structural supports. 3. Members of ceilings, roofs, ceiling and roof supports or other horizontal members which age, split or buckle due to defective material or deterioration. 4. Deteriorated or ineffective waterproofing of exterior walls, roofs, foundations or floors, including broken windows or doors. 5. Defective or insufficient weather protection for exterior wall covering, including lack of paint or weathering due to lack of paint or other protective covering. 6. Any fault or defect in the building that renders it not properly watertight or structurally unsafe. In addition, the following maintenance measures are also required for the subject property: 1. Remove the existing roof and repair in-kind. Repair all roof leaks, re-flash, seal and re-gutter as necessary. 2. Repair or replace existing damaged broken plumbing lines. Repair all miscellaneous plumbing leaks within the walls. 3. Rewire, rework, and update as needed interior electrical wiring. Rework and update exterior electrical panels to make watertight. EXHIBIT "C" HISTORIC PROPERTY PRESERVATION Agreement PROPOSED HOME IMPROVEMENTS The following renovation projects shall be completed by the applicant over the initial 10 year term of the contract. ITEM YEAR TASK COST 1. Paint Exterior 2001 Clean house, scrape loose paint and sanding, $3,350 caulking for any needed gaps, finish moulding on (see estimate by O&A front posts and windows, fix wood cracks, priming, Painting) paint 2 coats Dunn Edwards 2. Replace dryrot / 2001 Remove bottom siding of exterior, replace new $2,200 termite damage of boards, paint and retouch all cracks, etc for dryrot (See estimate of Jimmy exterior Barrios Construction and Painting) 3. Replace roof 2002 Replace shingle roof $5,000 - $8,000 (Estimate pending from Galaxy Home Improvement) 4. Repair exterior 2001 Exterior baseboard has dryrot and damage which Costs included in estimate of baseboard should be replaced Jimmy Barrios Construction and Painting) 5. Earthquake retrofit 2004 Foundation bolting and repair for seismic retrofitting $10,000 - $15,000 (Estimate pending from Galaxy Home Improvement) 6. New entry door 2003 Replace screen door to CA Bungalow Style Estimated Costs from Home Depot from Castle Door Designs (See attached brochure) Screen Door: $80 7. Replace entry light 2003 Replace light fixtures with Mission Style / CA Estimated costs from fixtures Bungalow style in front porch (one overhead light and Restoration Hardware: two post lanterns) Overhead: $250 Side Lanterns $550 Labor: $250 - $300 8. Weather stripping of 2005 Weather-strip 14 windows Estimated Costs from Home all windows Depot Materials $500 - $1,000 Labor: $1,400 - $2,000 9. Put in upstairs 2005 Design and install ventilating windows to existing Estimated Costs from windows to current design (currently open) Economy Glass Co. design Materials: $4,923 Labor: ATTACHMENT C th 2450 25 Street: Supporting Documentation (including the draft Mills Act Resolution, Mills Act Contract Application and Financial Analysis, draft Historic Property Preservation Agreement and photographs) PCD:SF:JT:AS:KC:EB:F:\PLAN\SHARE\COUNCIL\Mills Act\Mills Act Reso 2450 25th St.doc City Council Meeting: 12/11/01 Santa Monica, California RESOLUTION NUMBER ___ (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AUTHORIZING THE CITY MANAGER TO EXECUTE A HISTORICAL PROPERTY CONTRACT IN ACCORDANCE WITH GOVERNMENT CODE SECTION 50280 WITH THE OWNER OF THE PROPERTY LOCATED AT 2450 25TH STREET IN SANTA MONICA WHEREAS, Government Code Section 50280 et seq. authorizes a city to enter into a historical property contract with the owner of any qualified historical property to restrict the use of such property so that it retains its historically significant characteristics in return for which the property owner obtains property tax relief; and WHEREAS, Santa Monica Municipal Code Section 9.36.270(g) provides that designated structures of merit, landmarks, and contributing structures located in historic districts that are privately owned shall be considered qualified historical properties eligible to enter into historical property contracts with the City upon resolution by the City Council; and WHEREAS, the property located at 2450 25th Street is a designated City Structure of Merit, and the owner of the property has filed an application to enter into a historical property contract with the City; and WHEREAS, the Landmarks Commission reviewed the owner=s application at its November 12, 2001, meeting and directed City Staff to forward a recommendation to the City Council in support of the application; and WHEREAS, the City Council has determined that it is appropriate for the City to enter into a historical property contract with the owner of the property located at 2450 25th Street, NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Pursuant to Santa Monica Municipal Code Section 9.36.270(g), the City Council authorizes the City Manager to enter into a historical property contract with the owner of the property located at 2450 25th Street, Santa Monica, California in accordance with Government Code Section 50280 et seq. SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: ______________________________ MARSHA JONES MOUTRIE City Attorney Recording Requested By: City of Santa Monica When Recorded Mail To: City of Santa Monica 1685 Main Street Santa Monica, California 90407 Attention: City Attorney No Recording Fee Required Government Code Section 27383 HISTORIC PROPERTY PRESERVATION AGREEMENT THIS AGREEMENT is made and entered in to this ____ day of _________, 2001, by and between the City of Santa Monica, a municipal corporation (hereinafter referred to as the "City") and Vincent P. Landay & Cheryl A. Clark (hereinafter referred to as "Owner"). R E C I T A L S: A. California Government Code Section 50280, et seq. authorizes cities to enter into contracts with the owners of qualified historical property, as defined in Government Code Section 90280.1, to provide for the use, maintenance and restoration of such historical property so to retain its characteristics as property of historical significance; and B. Owner possesses fee title to certain real property, together with associated structures and improvements thereon, located at 2450 25th Street, Santa Monica, California, (hereinafter such property shall be referred to as the "Historic Property"). A legal description of the Historic Property is attached hereto, marked as Exhibit "A" and is incorporated herein by this reference; and C. On September 13, 1999, the Landmarks Commission of the City of Santa Monica designated the Historic Property as a structure of merit pursuant to the terms and provisions of Santa Monica Municipal Code Chapter 9.36; and D. On December 11, 2001, the City Council of the City of Santa Monica approved Resolution Number ____ (CCS) authorizing the execution of this Agreement between the City of Santa Monica and the property owner of 2450 25th Street; and E. City and Owner, for their mutual benefit, now desire to enter into this Agreement both to protect and preserve the characteristics of historical significance of the Historic Property and to qualify the Historic Property for an assessment of valuation pursuant to the Provisions of Chapter 3, of Part 2, of Division 1 of the California Revenue and Taxation Code. NOW, THEREFORE, City and Owner, in consideration of the mutual covenants and conditions set forth herein, do hereby agree as follows: 1. Effective Date and Term of Agreement. This Agreement shall be effective and commence on January 1, 2002, and shall remain in effect for a term of ten (10) years thereafter. Each year upon the anniversary of the effective date, such initial term will automatically be extended as provided in paragraph 2, below. 2. Renewal. Each year on the anniversary of the effective date of this Agreement (hereinafter referred to as the "renewal date"), a year shall automatically be added to the initial term of this Agreement unless notice of non-renewal is mailed as provided herein. If either Owner or City desires in any year not to renew the Agreement, Owner or City shall serve written notice of non-renewal of the Agreement on the other party in advance of the annual renewal date of the Agreement. Unless such notice is served by Owner to City at least ninety (90) days prior to the annual renewal date, or served by City to 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. Upon receipt by the Owner of a notice of non-renewal, Owner may make a written protest of the notice of non- renewal. At any time prior to the renewal date, the City may withdraw its notice to Owner of non-renewal. If either City or Owner serves notice to the other of non-renewal in any year, the Agreement shall remain in effect for the balance of the term then remaining, either from its original execution or from the last renewal of the Agreement, whichever may apply. 3. Standards for Historical Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements and restrictions: a. Owner shall preserve and maintain the Historic Property in accordance with the minimum standards and conditions for maintenance, use and preservation attached hereto as Exhibit "B", and incorporated herein by this reference. b. In any restoration or rehabilitation of the property, the Owner shall restore and rehabilitate the property according to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation, the United States Secretary of the Interior's Standards for Rehabilitation, the State Historical Building Code, and the City of Santa Monica to the extent applicable. c. Owner shall make improvements to the Historic Property in accordance with the schedule of home improvements, drafted by the Owner and approved by the City Council, attached as Exhibit "C". d. Owner shall allow reasonable periodic examinations, by prior appointment, of the interior and exterior of the Historic Property by representatives of the County Assessor, State Department of Parks and Recreation, State Board of Equalization, and City, as may be necessary to determine owner's compliance with the terms and provisions of this Agreement. 4. Provision of Information of Compliance. Owner hereby agrees to furnish City with any and all information requested by the City that may be necessary or advisable to determine compliance with the terms and provisions of this Agreement. 5. Cancellation. City, following a duly noticed public hearing as set forth in California Government Code Section 50285, may cancel this Agreement if it determines that Owner breached any of the conditions of this Agreement (including the obligation to restore or rehabilitate the property in the manner specified in subparagraph 3 (c) 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 set forth in Government Code Section 50280.1. In the event of cancellation, Owner may be subject to payment of cancellation fees set forth in California Government Code Section 50286. 6. Notice to Office of Historic Preservation. Within six (6) months of execution of this Agreement, Owner shall send written notice of this Agreement, including a copy hereof, to the State Office of Historic Preservation. 7. Enforcement of Agreement. In addition to the remedy provided in the cancellation provision of this Agreement, City may specifically enforce, or enjoin the breach of, the terms of this Agreement. The City does not waive any claim of owner default if 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 Santa Monica Municipal Code Chapter 9.36 are available to the City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any subsequent breach or default. 8. Burden to Run With Property. The covenants and conditions herein contained shall apply to and bind the heirs, successors and assigns of all the parties hereto and shall run with and burden the subject property for the benefit of the surrounding landowners and the City of Santa Monica. Owner shall expressly make the conditions and covenants contained in this Agreement a part of any deed or other instrument conveying any interest in the property. 9. Notice. Any notice required to be given by the terms of this Agreement shall be provided at the address of the parties as specified below or at any other address as may be later specified by the parties. To City: City of Santa Monica 1685 Main Street, Room 212 Santa Monica, CA 90401 Attention: Department of Planning and Community Development To Owner: Vincent P. Landay & Cheryl A. Clark 2450 25th Street Santa Monica, CA 90405 10. No Joint Venture. 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 venturers or members of any joint enterprise. 11. Hold Harmless. As between the City and the Owner, the Owner is deemed to assume responsibility and liability for, and the Owner shall indemnify and hold harmless the City and its City Council, boards and commissions, officers, agents, servants or employees from and against any and all claims, loss, damage, charge or expense, whether direct or indirect, to which the City or its City Council, boards and commissions, officers, agents, servants or employees may be put or subjected, by reason of any damage, loss or injury of any kind or nature whatever to persons or property caused by or resulting from or in connection with any negligent act or action, or any neglect, omission or failure to act when under a duty to act, on the part of the Owner or any of its officers, agents, servants, employees or subcontractors in this or their performance hereunder. 12. Attorneys' Fees and Costs. In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or breach thereof, the prevailing party shall be entitled to recover from the losing party reasonable expenses, attorneys' fees and costs. 13. Severability. In the event any limitation, condition, restriction, covenant or provision contained in this Agreement is held to be invalid, void or unenforceable by any court or competent jurisdiction, the remaining portions of this Agreement shall, nevertheless be and remain in full force and effect. 14. Applicable Law. All questions pertaining to the validity and interpretation of this Agreement shall be determined in accordance with the laws of California applicable to contracts made to and to be performed within the state. 15. Recordation. Within 20 days of execution, the parties shall cause this Agreement to be recorded in the official records of the County of Los Angeles. 16. Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. 17. Sale or Conversion of Property. In the event of sale or conversion of the Historic Property, the Conditions, Covenants and Restrictions (C. C. & R.'s) for the Historic Property, if required, shall incorporate by reference all obligations and duties of the parties created by this Agreement. 18. Prohibition Against Discrimination. Owner agrees not to discriminate or impose any restrictions on the sale, lease, or occupancy of the Subject Property on the basis of sex, race, religion, ancestry, national origin, age, sexual preference, pregnancy, marital status, family composition, or the potential or actual occupancy of minor children. Owner further agrees to take affirmative action to ensure that no such person is discriminated against for any of the aforementioned reasons. IN WITNESS WHEREOF, City and Owner have caused this Agreement to be executed as of the day and year first written above. CITY OF SANTA MONICA By:____________________________ Susan E. McCarthy, City Manager Approved As To Form: Owners _____________________________ By:____________________________ Marsha Jones Moutrie Vincent P. Landay City Attorney By:____________________________ Cheryl A. Clark ATTEST: _______________________________ Maria Stewart, City Clerk STATE OF CALIFORNIA ) ) ss. COUNTY OF LOS ANGELES ) On __________________, 2001, before me, ___________________________ the undersigned, a Notary Public in and for said State, personally appeared ____________________, personally known to me - OR - proven to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity as property owner. WITNESS my hand and official seal. _______________________________ SEAL Notary Public in and for said State Description of Instrument Title: Historic Property Preservation Agreement Property location: 2450 25th Street Number of Pages: 5, plus Exhibits A, B, and C STATE OF CALIFORNIA ) ) ss. COUNTY OF LOS ANGELES ) On __________________, 2001, before me, ___________________________ the undersigned, a Notary Public in and for said State, personally appeared ____________________, personally known to me - OR - proven to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in her authorized capacity as property owner. WITNESS my hand and official seal. _______________________________ SEAL Notary Public in and for said State Description of Instrument Title: Historic Property Preservation Agreement Property location: 2450 25th Street Number of Pages: 5, plus Exhibits A, B, and C STATE OF CALIFORNIA ) ) ss. COUNTY OF LOS ANGELES ) On _______________, 2001, before me, the undersigned, a Notary Public in and for said State, personally appeared SUSAN E. McCARTHY, known to me to be the CITY MANAGER of the CITY OF SANTA MONICA, a Municipal Corporation, that executed the within instrument on behalf of the CITY OF SANTA MONICA, and acknowledged to me that the CITY OF SANTA MONICA executed the same. WITNESS my hand and official seal. SEAL ___________________________________ Notary Public in and for said State Description of Instrument Title: Historic Property Preservation Agreement Property location: 2450 25th Street Number of Pages: 5, plus Exhibits A, B, and C EXHIBIT "A" LEGAL DESCRIPTION In the City of Santa Monica, County of Los Angeles, State of California: Lot 18 of Tract 11922, in the City of SANTA MONICA, County of Los Angeles, California as per map recorded in Book 227, Page 4, of Maps in the Office of the County Recorded of said County. EXHIBIT "B" HISTORIC PROPERTY PRESERVATION Agreement PROPERTY MAINTENANCE CITY OF SANTA MONICA Property Maintenance. As required by Landmarks Ordinance Section 9.36.190, all designated landmarks and structures located within a historic district shall be maintained in good repair and preserved against deterioration through the prompt repair of any of the following: 1. Facades which may fall and injure members of the public or property. 2. Deteriorated or inadequate foundation, defective or deteriorated flooring or floor supports, deteriorated walls or other vertical structural supports. 3. Members of ceilings, roofs, ceiling and roof supports or other horizontal members which age, split or buckle due to defective material or deterioration. 4. Deteriorated or ineffective waterproofing of exterior walls, roofs, foundations or floors, including broken windows or doors. 5. Defective or insufficient weather protection for exterior wall covering, including lack of paint or weathering due to lack of paint or other protective covering. 6. Any fault or defect in the building that renders it not properly watertight or structurally unsafe. In addition, the following maintenance measures are also required for the subject property: 1. Remove the existing roof and repair in-kind. Repair all roof leaks, re-flash, seal and re-gutter as necessary. 2. Repair or replace existing damaged broken plumbing lines. Repair all miscellaneous plumbing leaks within the walls. 3. Rewire, rework, and update as needed interior electrical wiring. Rework and update exterior electrical panels to make watertight. EXHIBIT "C" HISTORIC PROPERTY PRESERVATION Agreement PROPOSED HOME IMPROVEMENTS The following renovation projects shall be completed by the applicant over the initial 10 year term of the contract. ITEM YEAR TASK 1 2000 Replace Brick Foundation 2 2000 Replace Roof 3 2001 Replace All Old Electrical Wiring 4 2001 Replace All Plumbing 5 2001 Replace and Repair All Rotting & Termite Damaged Wood 6 2001 Repair Front Porch 7 2001 Repair All Interior Plaster Cracks 8 2001 Repair and Upgrade Undersize Fireplace 9 2001 Repair All Broken and Rotting Windows 10 2001 Refinish All Floors 11 2001 Restore All Trim and Woodwork to Original 12 2001 Repair and Refinish All Doors 13 2001-2010 General Repair and Maintenance, No Further Restoration Needed