SR-10-26-2010-3GCity Council Meeting: October 26, 2010
Agenda Item:
To: Mayor and City Council
From: Eileen Fogarty, Director, Planning & Community Development
Subject: New Mills Act Contracts at 2402 4th Street #12 and 2323 5th Street.
Recommended Action
Staff recommends that the City Council adopt resolutions authorizing the City Manager
to negotiate and execute Historic Property Preservation Agreements (Mills Act
Contracts) between the City of Santa Monica and the property owners of two
designated City Landmarks at 2402 4th Street #12, a unit within the Hollister Court
bungalow court, and at 2323 5th Street.
Executive Summary
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 for implementing the City's Historic Preservation Element goals, to
promote the designation and long-term preservation of historic resources through the
provision of incentives and technical assistance.
The City requires Mills Act Contract applicants to provide a report prepared by a
qualified architect describing the condition of the structure and its restoration and
maintenance needs in order to ensure the resource's historic integrity and structural
stability. The recommendations in the architect's report are reflected in the proposed 10-
year restoration/maintenance plan which becomes an attachment to the Mills Act
Contract entered into between the City of Santa Monica and the property owners. Staff
verifies the information contained in the report and may identify additional restoration
and maintenance items as necessary.
Execution of the two pending Mills Act Contracts will result in reduced property tax
revenue to the City estimated at $1,376 total for the 2010-2011 fiscal year and a similar
amount annually thereafter.
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Background
In 1991, as part of a comprehensive revision to the City's Landmarks Ordinance, the
City Council authorized designated structures of merit, landmarks, and contributing
structures located in designated historic districts to be considered qualified historic
properties eligible for historic 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 Assessor's 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 residential or commercial structures that are
rented, the net operating income is determined based on actual rents received. For
residential and commercial structures that are owner-occupied, the net operating
income is determined by the income the property would produce if rented. In exchange
for a 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 MiIIs 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. Similarly, the obligations and
property tax reduction benefits associated with the Mills Act contract are also binding
upon successive property owners during the contract term.
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The initial Mills Act contract term is a minimum 10-year period. Each year on the
anniversary of the effective date of the agreement, also known as the renewal date, a
year is automatically added to the initial 10-year term of the agreement. This effectively
makes the term of the contract at least 10 years, but possibly indefinite unless the
owner or City submits a notice of non-renewal. A notice of non-renewal could be
initiated by the City if the property owner is not fulfilling the obligations (i.e. scheduled
improvements or maintenance) specified within their contract with the City. If such a
notice of non-renewal were submitted, the contract would remain in effect for the
balance of the term remaining, either from its original date of execution if within the
initial 10-year term, or from the date of the last one-year renewal of the agreement.
Alternatively, the owner may petition the City to initiate an immediate cancellation, which
would result in payment of a pehalty equal to 12.5% of the property's assessed current
fair market value, as determined by the County Assessor as though the property were
free of the contractual restriction. The City may also cancel the contract in the event of a
breach of contract conditions, whereby the property owner would be subject to pay the
same 12.5% penalty.
The terms of the contract also state that the agreement may be amended, in whole or in
part, if both the owner and the City agree to execute a recorded document to
memorialize the contract amendment.
Santa Monica Mills Act Contracts
In addition to the certified architect's report, financial data is also required as part of the
Mills Act Contract application in order to calculate an estimate of the potential tax
reduction and provide guidance to the Landmarks Commission and Council in making a
decision on Contract requests. The County Assessor will make a final determination of
the taxes due when the approved Contract is submitted. and recorded, and will continue
to conduct property tax assessments on an annual basis.
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Los Angeles County Assessor's Office data showed that for the 2006-2007 tax year,
property value assessments of 37 of the 39 Santa Monica historic properties with
executed Mills Acts Contracts have been reduced between 12% and 91%, with the
average reduction being 51%, when compared to their "Proposition 13" values. From
these Mills Act Contract property value assessments, correspondingly lower taxes have
been levied on these properties. Each year, the County Assessor reassesses taxes due
for properties with Mills Act Contracts.
Data for the 2010-2011 tax year has not yet been received from the County Assessor's
Office; however, it is anticipated that the average reduction in property taxes will be
similar to data from prior years:
• 2003-2004: 14%-75% reduction with an average reduction of 47%;
• 2004-2005: 6%-74% with an average reduction of 42%;
• 2005-2006: 12%-90%with an average reduction of51%; and
• 2006-2007: 12%-90% with an average reduction of 51 %. Staff estimates that
the two new contracts will result in respective property tax reductions between
28%-48% with an average reduction of 38%.
Property owners are required to obtain all applicable entitlements such as a Certificate
of Appropriateness, and all associated building permits, for work proposed in the 10-
year restorationlmaintenance plan. Furthermore, all work proposed in the 10-year
restoration/maintenance plan must comply with "The Secretary of the Interior's
Standards for the Treatment of Historic Properties with Guidelines for Preserving,
Rehabilitating, Restoring & Reconstructing Historic Buildings" (Weeks & Grimmer,
1995).
Property owners are also required to submit a report to the City on a biennial basis to
demonstrate compliance with Contract terms. Staff may also conduct a site visit every
year to ensure that restoration and maintenance plans are implemented in accordance
with Contract terms.
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Analysis
The two new applications submitted in 2009/2010 include a single unit in the Hollister
Court bungalow court and atwo-story Colonial Revival style single family residence. In
addition to the specific restoration and repair obligations listed below for each property,
each Mills Act Contract will include a standard requirement for ordinary maintenance
and upkeep throughout the Contract's term for work such as additional roof
maintenance, and plumbing and electrical systems maintenance.
2402 4th Street #12
A Mills Act Contract application was filed on August 3, 2010 for a single unit within the
Hollister Court bungalow court located at 2402 4th Street #12. The entire Hollister Court
bungalow court complex was designated a City Landmark on December 13, 1990.
The Hollister Court bungalow court is located on the west side of 4th Street, immediately
adjacent to Hotchkiss Park. Constructed between 1904 and the early 1920s, Hollister
Court is a representative example of amulti-family housing form that was once
prevalent and popular throughout Southern California: a grouping of single-family
residences clustered around a central open space and/or walkway. The subject Unit
#12 was constructed in 1921. Like all of the other units within this bungalow court, this
building is designed in the Craftsman architectural style, accentuated by Colonial
Revival detailing and the key character-defining features that remain intact including:
• Aside hipped gabled roof
• A small, classically inspired gable above the front entry that resembles a
pedimented portico
• Row of dentiles across the entry gable
• Molded cornice trim at the base of the entry gable
• Molded porch supports
• Triple sash transom windows along the front fagade
• Projecting roof rafters
• Small, highly placed windows located just below the roof line.
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•~,
~~
As part of the Mills Act application, an architect's report was prepared by architect Tom
Avila, of Avila Architects, Inc. The report assesses the condition of the primary
residence and identifies repair, restoration/rehabilitation and maintenance needs
(Attachment A) along with a general schedule for completion of work. As discussed
more fully in Attachment A, the exterior of the residence is in fair condition and is in
need of renovation, repair and replacement. Cripple wall framing conditions in the
crawlspace warrant immediate attention due to failure risk in the event of an
earthquake. Most of the exterior wood siding is in need of repair/replacement and much
of the exterior brickwork needs re-pointing. A full inventory of proposed work items is
included in the 10-year maintenance/rehabilitation plan; the work items that address the
treatment of the exterior and enhancement and/or stabilization of the building's
structural integrity will be an attachment to the Mills Act Contract.
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Proposed Maintenance and Rehabilitation Plan
Examples of work proposed during the contract terms include the following:
• Seismic anchor bolting
• Framing of east cripple wall, floor support, piers and other damaged members
• Repairing exterior siding
• Replace insulation
• Repainting exterior
• Repairing and replacing damaged or broken bricks, cracked masonry, re-pointing
• Replacing west window in every vestibule
• Repairing rafters
• Repair drainage and new landscaping
• Upgrading mechanical (HVAC)
• Replacing east window (non-original)
• Removing abandoned electrical and plumbing components
• Replacing fire place
Attachment A also contains the estimated financial analysis for the property at 2404 4tn
Street #12.
2323 5th Street
A Mills Act Contract application was filed on August 12, 2010 for the two-story Colonial
Revival style single-family residence located at 2323 5th Street. This residence was
designated a City Landmark on July 10, 2006.
The subject building is located on the east side of 5th Street, between Strand Street and
Hollister Avenue, in the Ocean Park neighborhood. Originally constructed in 1925, the
building was relocated to its current location in 1936 from a beachfront site within the
City. The residence retains a high level of physical integrity as applied to single-family
residential development from the 1920s. Character-defining features of the residence
include:
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• Front gable roof
• Shallow eaves
• Dormers
• Wide clapboard siding
• Wood-framed, six-over-six, double-hung sash fenestration
• Squared, fluted pilasters
• Dentiled entablature
• Broken pediment centered by a decorative urn.
1
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As part of the Mills Act application, an architect's report was prepared by Peyton Hall,
FAIA, of Historic Resources. Group. The report assesses the condition of the primary
residence and identifies repair, restoration/rehabilitation and maintenance needs
(Attachment B) along with a general schedule for completion of work. As discussed
more fully in Attachment B, the exterior of the residence is in fair condition and generally
requires routine inspection and some repair to the woodwork, as well as repainting. The
metal staircase on-the east far~ade appears to be pulling away from the structure and
needs structural reinforcement. The roof is in fair condition and some water infiltration at
the dormers has been noted. The landscape/hardscape elements of the site need repair
and refurbishment. A full inventory of proposed work items is included in the ten-year
maintenance/rehabilitation plan; the work items that address the treatment of the
exterior and enhancement and/or stabilization of the building's structural integrity will be
an attachment to the Mills Act Contract.
Proposed Maintenance and Rehabilitation Plan
Examples of work proposed during the contract terms include the following:
• Inspect and repair exterior wood prior to painting
• Interior painting
• Inspect and repair east fagade porch and staircase
• Repair roof at front dormers
• Patch and repair cracked driveway; replace if necessary
• Repair chimney and restore fireplace mantel
• Repair damaged front entry concrete stoop
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• Additional annual repair and maintenance
Attachment B also contains the financial analysis estimate for the property at 2323 Stn
Street.
In general, each of these contracts provides a subsidy to the property owner in
exchange for maintaining an historic resource that is considered valuable to the City.
The combined value of this subsidy for these two specific properties within the initial
contract period of ten years is approximately $13,760 ($6,830 for 2402 4th Street #12
and $6,930 for 2323 5th Street).
Commission Action
The Landmarks Commission reviewed the Mills Act Contract requests at its September
13, 2010 meeting and directed staff to forward recommendations to the Council in
support of all new applications.
Budget/Financial Impact
Execution of these Mills Act Contracts will result in reduced properly tax revenue to the
City estimated at $683 for 2402 4th Street #12 and $693 for 2323 5th Street, for a total of
$1,376 for the 2010-2011 fiscal year. Similar reductions in property tax revenue to the
City are anticipated each fiscal year for the life of the both Mills Act Contracts. However,
the amount of revenue loss is not significant in terms of total property tax revenues
collected from all properties in the City. A summary financial analysis table is included
as Attachment C.
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Prepared by: Scott Albright, AICP, Senior Planner
Approve: Forwarded to Council:
~~,,I1
Erteen .Fogarty Rod Gould
Director, Plannir) nd mmuryi y City Manager
Development
Attachments:
A. 2402 4th Street #12: Draft Mills Act Resolution and Contract, Architect's Report
and Financial Analysis
B. 2323 5th Street: Draft Mills Act Resolution and Contract, Architect's Report and
Financial Analysis
C. Summary Financial Analysis Table
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ATTACHMENT A
2402 4th Street #12:
Draft Mills Act Resolution, Draft Mills Act Contract, Architect's Report and
Financial Analysis
Partial attachments are not available in electronic format. Entire document is available
for review at the City Clerk's office and the Libraries.
Recording Requested Bv:
City of Santa Monica
When Recorded Mail To:
City of Santa Monica
1685 Main Street
Santa Monica, California 90401
Attention: City Attorney
No Recording Fee Required
Government Code Section 27383
Contract No. _ (CCS)
HISTORIC PROPERTY PRESERVATION AGREEMENT
THIS AGREEMENT is made and entered in to this 26`h day of October, 2010 by and
between the City of Santa Monica, a municipal corporation (hereinafter referred to as the
"City") and Dana and Brad Colwell (hereinafter referred to as the "Owner").
RECITALS:
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;
B. Owner possesses fee title to certain real property, together with associated
structures and improvements thereon, located at 2402 4`h Street #12, 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;
C. On December 13, 199Q, 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. OrnOctober 26, 2010 the City Council of the City of Santa Monica
approved Resolution Number authorizing the execution of this Agreement between
the City of Santa Monica and the property owner of 2402 4t" Street #12; 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, 2011 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 nonrenewal 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 nonrenewal 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 nonrenewal, Owner may make a written protest of the notice of nonrenewal. At
any time prior to the renewal date, the City may withdraw its notice to Owner of nonrenewal.
If either City or Owner serves notice to the other of nonrenewal 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 Prooertv. 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. Owner shall make improvements to the Historic Property in
accordance with the schedule of home improvements, drafted by the applicant and
approved by the City Council, attached as Exhibit "C", and incorporated herein by this
reference.
c. In any restoration or rehabilitation of the property required by
subsections (a) and (b) of this Section 3, 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.
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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 df 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.
e. Before undertaking the property maintenance required by subsection
(a) of this Section 3 and the home improvements required by subsection (b) of this Section.
3, Owner shall obtain all necessary building and planning permits to the extent required by
local law, including but not limited to, a Certificate of Appropriateness
4. Provision of Information of Compliance. Owner hereby agrees to furnish City
with 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 on an annual basis.
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, the City 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 Chapters 9.36 and 9.40
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.
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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: Dana and Brad Colwell
2402 4~h Street #12
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. Attornevs' 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. Severabilitv. 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
A Municipal Corporation,
ROD GOULD
City Manager
APPROVED AS TO FORM:
OWNERS:
By:
MARSHA JONES MOUTRIE BRAD COLWELL
City Attorney
By:
ATTEST:
MARIA STEWART
City Clerk
DANA COLWELL
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STATE OF CALIFORNIA )
ss.
COUNTY OF LOS ANGELES )
On __ __ before me,
personally appeared
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 entity upon behalf on 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.
SEAL Notary Public in and for said State
Description of Instrument
Title: Historic Property Preservation Agreement
Property location: .2402 4T" Street #12
Number of Pages: 5, plus Exhibits A: B, and C
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STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
ss.
On before me,
personally appeared ,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 entity upon behalf on 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.
SEAL
Description of Instrument
" Notary Public in and for said State
Title: Historic Prooertv Preservation Agreement
Property location: 2402 41ti Street #12
Number of Pages: 5, plus Exhibits A. B, and C
7
STATE OF CALIFORNIA )
ss.
COUNTY OF LOS ANGELES )
On before me,
personally appeared Rod Gould, 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
entity upon behalf on 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.
SEAL
Description of Instrument
WITNESS my hand and official seal.
Notary Public in and for said State
Title: Historic Prooerty Preservation Agreement
Property location: 2402 4t Street #12
Number of Pages: 5. plus Exhibits A. B, and C
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EXHIBIT "A"
LEGAL DESCRIPTION
In the City of Santa Monica, County of Los Angeles, State of
California:
PARCEL 1:
AN UNDVIDED 1/13T" 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, PAGE(S) 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 COMDOMINIUM .PLAN
RECORDED AUGUST 30, 1993 AS INSTRUMENT NO. 93-1687545,
OFFICAL RECORDS, AND AMENDED CONDOMINIUM PLAN
RECORDED OCTOBER 14, 1993 AS INSTRUMENT NO. 93-
2004233, OFFICAL RECORDS.
PARCEL 2:
UNIT 4 AS DEFINED AND DELINATED ON THE ABOVE REFERRED
TO CONDOMINUM PLAN.
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EXHIBIT "B"
HISTORIC PROPERTY PRESERVATION AGREEMENT
PROPERTY MAINTENANCE
CITY OF SANTA MONICA
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 which renders it not properly watertight or
structurally unsafe.
In addition, the following maintenance measures are also required for the subject property:
1. Maintain all electrical and plumbing systems in safe, working order; repair and
replace as necessary.
**The property owner is required to obtain all necessary building permits and
planning permits such as a Certificate of Appropriateness for the work specified
herein **
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EXHIBIT "C"
HISTORIC PROPERTY PRESERVATION AGREEMENT
PROPOSED HOME IMPROVEMENTS
The following projects shall be completed by the property owner of 2402 4th Street #12 over
the initial ten (10) year term of the contract.
Item Year Task
1 2010-2011 Seismic anchor bolting.
2 2010-2011 Framing beneath house -east cripple wall, floor support and
piers. Identify dry-rot or other damaged members.
3 2011-2012 Repair exterior siding -repair/ in-kind replacement of trim
molding, window casing, fascia boards, gutter system, vent
louvers, screens, insulate walls, and remove abandoned
electrical/plumbing system.
4 2011-2012 Insulation work =floors, ceiling, walls insulated with siding
replacement.
5 2011-2012 Repaint entire house, trim and visible interior surfaces with colors
that are compatible with the neighborhood and appropriate with
the architectural style of the residence.
6 2013-2014 Masonry repair, cap repair/replacement - re-pointing,
replacement of damaged or broken bricks, masonry crack repair.
7 2013-2014 West window replacement in entry vestibule rafter repair - in-kind
replacement of existing windows with architectural solution for
existing window system to remain, repair broken rafters.
8 2013-2014 Drainage repair-swale at north property, landscape planter
replacement.
9 2013-2014 New landscaping -new landscape and irrigation.
10 2014-2015 Mechanical (HVAC upgrade) -install upgrade heating and cooling
system.
11 2015-2016 Rear porch renovation/ in-kind replacement -porch framing
siding, treads and handrails.
12 2015-2016 East window replacement of non-original window - in-kind
replacement of existing windows with architectural solution
reconfiguration of existing windows.
13 2017-2018 Earth grading and paving removal -grade earth away from wood
at tops of foundation and remove paving beneath house.
14 .2017-2018 Remove abandoned electrical components.
15 2017-2018 Remove abandoned plumbing components.
16 2019-2020 Fireplace replacement -new foundation, firebox, flue, and flue
framing.
**The property owner is required to obtain all necessary building permits and
planning permits such as a Certificate of Appropriateness for the work specified
herein **
11
~~I~L.~~1R~IIITE~T~, INC
3304 pico blvd., suite g
Santa monica, ca 90405
310 450 7542 tel
310 450 7543 fax
Property ®wners
Dana and Brad Colwell
aA~~S 1
~~
Property Address
2402 4th Street -Cottage 12
Santa Monica, CA 90405
Property Evaluation Report
~~~ ~~~i
Building code for renovation, or repair qualifies for review under the currently adopted edition of
California Historic Building Code (CHBC) California Code of Regulations Title 24, Part 8.
Recommend repair, replacement, and renovation per Department of Interior Guidelines for
Historic Renovation -current edition.
Installation and integration of recommendations noted here shall be reviewed and considered
under separate contract by licensed professionals. Licensed professionals are licensed by the
state of California to practice, advise, and perform construction work allowed by their respective
license.
House not reviewed for hazardous materials, electrical system safety, plumbing system safety,
nor mechanical heating system safety.
General Description of Property
The .house structure is part.. of an association of houses collectively known as The Hollister
Court Bungalows and is classified as a condominium unit. There are 13 units in the association
each of which share a common central walkway. The house is a designated local landmark by
the City of Santa Monica and qualifies for the MiIIs Act under the city's Landmarks Ordinance.
The house is a mix of craftsman and east-coast colonial design. Entry detailing above the front
door has been fitted with dentils, decorative columns, and gable returns consistent with
American colonial detailing. The siding, brick-work, oak doors, and heavy exterior window and
door casing are consistent with craftsman detailing. Generally the house proportions, interior
detailing, and the material pallet are craftsman.
The. house- is approximately 900 square feet. The building structure is wood ,frame over
concrete and masonry foundations. Exterior walls are covered with horizontal wood siding,
windows are dressed with broad casing bands, and vents with narrower casing bands. Roof is
shaped with a common ridge running north and south and terminates in a combination gable
and hip, commonly referred to as a half-hip or dutch-hip.
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The roof structure of the main entry vestibule appears to be original. Windows enclose the
vestibule on 3 sides. A wall separating the balance of the house from the entry vestibule
separates the entry vestibule from the balance of the house. Enclosure of the vestibule
appears to date back to the time of construction and is a charming feature of the house that
should remain.
A porch located at the rear (east side) is in disrepair ahd renovation andlor replacement of the
porch is recommended.
General house condition is fair and is in need of renovation, repair, and replacement. Framing
conditions in the crawl space along the east side of the house should be prioritized first for
repair because of the likely hood of failure in an earthquake. Additional specific conditions are
described below with recommendations for other items included.
Upgrades to the house for contemporary utility connections, services, heating and cooling
systems, window standards for energy efficiency, lighting, insulation, and etc. is strongly
recommended. Design changes to accommodate upgrades are strongly encouraged to
promote the continued use and viability of the historic property now and over time.
Note:
West side is the side facing the walkway serving the front of all units.
North side is the side facing 4~h street.
South side is the side facing the ocean.
East side is the rear of house.
Exterior
1. Exterior siding is in need of repair and replacement in most wall areas. It appears that
existing siding is either of redwood or cedar-like material. Recommend siding
replacement be for the whole house. (Salvaging some of the existing siding may be
possible if the exact same siding specification is required by an enforcement agency.)
2. Bricks in the front entry vestibule are degraded and need to be replaced and re-pointed.
Selective removal and replacement of damaged and deteriorated brick is recommended.
Replacement with used brick of sound consistency and similar color is encouraged.
Grout material between bricks is of different colors and reflects a history wall repair due
to settlement, tree roots, and general wall maintenance over the years. Recommend
that wall masonry be re-pointed and bricks replaced. Masonry wall damage from an
adjacent tree is prevalent on the north side of the house. Recommended tree be
removed and replaced with a tree that has less invasive surface roots along with smaller
plants.
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3. Penetrations in the exterior envelope of the structure for natural ventilation have
damaged and have missing or damaged bug screens. Recommend replacement of
damaged screens with copper wire screen. Re-square access doors and vent openings.
4. The original fireplace has been removed on the south side of the house and original
fireplace is still apparent above the exterior and interior grades.
5. Original knob and tube connection through siding still in place. Since house knob and
tube wiring has been removed from the house recommend that exposed unattached
wires be removed.
6. Electrical conduit penetrates the south and north side of the house and crudely
penetrates the siding. Recommend rerouting conduit, or neatly framing around the
penetration with new siding.
7. Rear porch has been covered with plywood. Plywood covering is not original. Porch
framing beneath plywood covering may or may not be original.. Recommend that
plywood be removed and further investigation of the concealed framing be performed.
Replacement of damaged framing with like framing members is recommended and
replacement of exposed walking and tread surfaces with like members is also
recommended.
8. Rear porch roof (rain cover) does not appear to be original. The underside of the eave
is a dissimilar material to the original house. Recommend that it be removed in favor of
the original roof (rain covering) if a suitable example is present in the bungalow
development.
9. Grade beneath house has been excavated and generally slopes up towards the top of
the concrete foundations on the north and south. Recommend that no further removal
of sloped earth against the foundations be done until foundation depths are known.
Current code requires 18" clear to grade beneath the house, however this is not
reasonable for this historic condition. Effort to increase the distance, between grade and
exposed wood is recommended. However, the house was built so that removal of soil
adjacent to the footings could undermine the foundations if foundation depth is shallow.
This recommendation to leave. the grade alone is prudent until fouhdation depths are
investigated. Grade appears to be consistently below exposed wood around the
perimeter foundation of house and is currently a suitable distance from wood members
given the circumstances described above.
10.The original brick foundations appear to have been replaced with concrete. This is
beneficial for the house and occupants. However, the depth and design of the
foundations is unknown and anchor bolting to the foundation was not observed. Any
bolting if present is probably not consistent with contemporary fastening and it is
recommended that the house be retrofitted for seismic strengthening to the foundation.
11. Paving was observed beneath house. Paving appears to have been there prior to
construction of the house with little or no effort to remove prior to construction of the
house. Paving appears to be concrete and asphalt type paving. Do not recommend
removing paving at this time, unless necessary to install piers. Paving appears to be
shoring or otheruvise consolidating soil adjacent to portions of the foundation.
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12. Portions of the exterior wythe of the brick masonry foundation underneath the entry
vestibule area is missing in some areas and should be repaired. Recommend repair
when grouting, re-pointing and brick replacement are performed for the exterior brick
masonry wall
13. Concrete cap on masonry wall of vestibule broken above the location of the invasive tree
roots and cracked at other various locations along the top of the masonry wall.
Recommend concrete cap be replaced to match existing for a uniform and consistent
cap.
14. The front vestibule to the house is original and appears to have been fitted with windows
consistent with the period of construction. It is unknown when the window system was
installed and it is possible that the windows on the north end (west side) were replaced
since then and are dissimilar. Lack of maintenance and ad-hoc repair/adjustments have
left the windows of the vestibule in poor shape and in need of replacement. Recommend
that the window enclosures to south be used as a standard with which to address all the
vestibule windows for replacement repair and renovation.
Paint, Exterior Trion, Exposed Wood, Fascias, and Cutters.
15. Paint on the existing house is past its serviceable life. Paint is pealing, and bare wood is
exposed in several locations, most notably on the eaves fascias and trim molding.
Recommend exterior surfaces of the house siding, trim, and eave, be patched/sanded
and/or replaced in kind and then hand/machine sand and repaint all exposed wood
surfaces. Recommend any color selection by the Owner to personalize and individuate
the house. Color restoration is not recommended because it could diminish the
enjoyment the house by the owner and/or community. A contemporary color selection
will continue the cultural relevance of the house as it continues oven time.
16. Decorative trim and eaves boards need to be replaced in some areas of the house- but
some can be salvaged, refinished and saved. Recommend that a sample trim molding
and eaves be identified as a standard, left in place on the building and replicated as
necessary where re-painting isn't sufficient to restore the design appearance.
17. Decorative window casing need to be replaced in some areas of the house but some
can be salvaged, refinished and saved. Recommend that a sample window casing be
identified as a standard, left in place on the building and replicated as necessary where
re-painting isn't sufficient to restore the design appearance.
18.The rear window adjacent to the rear Boar is not original. Glass is of a different type of
glass- (wire glass) and casing is of a different standard than the majority of the windows
in the house. Recommend that it be replaced with a smaller window that is consistent
with the original window designs of the house and coordinated with the floor plan of the
house.
19.A decorative rafter tail is broken at the west. Recommend that entire rafter board be
replaced in-kind with lumber of the same thickness and dimension. as the historic
member.
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20. Louvers are missing on south attic vent recommend louvers be replaced in-kind with
louvers of the same thickness and dimension as the remaining louvers of the attic vent
on the north.
21.A 2x4 attached to support gutter drains on the east is not original and is inconsistent with
the original design of the eaves. Recommend removal of the 2x4 fascia board.
22. Gutters do not appear to be original and it may be reasonable to remove them altogether
from the house at the option of the owner with an alternate roof drainage program.
General frartaing conditions
23. Water damage was apparent in some of the framing beneath the floor. Recommend
floor framing be surveyed for dry rot or other damage and replaced.
24. Cripple wall framing that supports the floor and east side of house is should be replaced
with new framing per current framing standards. Currently the floor framing on the east
side is currently supported by 2x4 studs that have been placed "flat" against the exterior
siding. This framing technique is not evident on the other cripple wall framing members
beneath the house and is not clear why it differs. Recommend refraining the cripple wall
with minimum 2x4 at 16" spacing per contemporary framing standards along the east
cripple wall
25. Interior floor framing support posts are resting on broken concrete slab pieces or resting
directly on grade. There is no attachment between the posts the blocks. Connection is
loose. Recommend piers placed beneath new or existing bearing posts.
26. Attic framing is per standards used when house was built. Mid-span roof framing
supports {purlins) are resting on ceiling framing. Recommended that purlin supports be
replaced so that roof weight is transferred directly onto the walls or major beams and not
directly onto individually ceiling members. Puriin and bearing board missing (probably
not originally installed) at the north-east end of attic. Recommend upgrading the roof
framing purlin system.
Insulation
27. No insulation in the floor. Insulation in floor is recommended.
28. No insulation in the ceiling. Insulation in ceiling is recommended.
29.Insulation does not appear to be consistently placed in the exterior walls as it does not
appear in the observable floor and attic areas. Insulation in exterior wall is
recommended to be installed when siding is replaced.
Site Drainage
30. Site drainage appears to be causing minor damage to the north side of the house.
Grade is up against the side of the house and there is some dry-rot that is visible where
_the grade has been removed from the side of the house. Recommend that the north
side of the house be regarded so that the top of the soil is below the siding and wood
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AVILAR~'I~ITE~TS, INC
(continued)
framing beneath the siding at the base of the wood wall. Recommend that wood should
not be in contact with soil/water in any part of the house. (This could be achieved by
removing 6" to 18" of soil along the north side of the house, placing a 4" thick concrete
swale to direct water to the east side of the house. Swale could then be covered by
gravel or potentially soil with at least 6" clear to the wood wall surface.)
31. Drainage beneath the planter areas in the front appears to spill over into the walkway
areas. Recommend removing 6" to 10" of top-soil to re-grade and contain water that
reaches the raised planter areas. .Drainage through or under curbs and walks is
recommended for overflow into the existing site drainage of the property.
Landscape and plant material
32. Plant material was seen growing on the house and within the crawl space. Plant growth
entered crawl space through the gaps within the exterior siding at the southeast corner
of the house. The potential for damage to wood trim, siding, and roof areas, increase
with contact to plant material. Recommend plan growth be maintained and periodically
trimmed so that it doesn't invade nor cling to building material. Plant maintenance
practices should also include periodic irrigation system maintenance to limit water
damage caused by leaks and off-target spray devices.
33. Recommend tree at north side of house be removed per item # 12.
34. Recommend trees be planted near house for shade and aesthetic appearance.
35. Landscaping of the existing house is recommended. Landscape is overgrown.
Recommend exterior areas of the house be re-landscaped. Recommend landscape
selection by the Owner to personalize and individuate the house. Landscape restoration
is not recommended because it could diminish the enjoyment the house by the owner
and/or community. A contemporary landscape selection will continue the cultural
relevance of the house as it continues over time.
Electrical
36.Origihal knob and tube electrical system appears to have been replaced with a newer
electrical system.
Plasmbing
37.Original plumbing system appears to have been replaced with a newer plumbing system.
Mechanical (Heating System)
38. Existing heating system is suspected of leaking and is old and probably fairly inefficient.
Recommend that the old system be replaced with a new system of greater efficiency.
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ESTIMATE FINANCIAL ANALYSIS FOR MILLS ACT CONTRACT**
2402 4th Street #12
REVENUES Current
1) Est. Monthly Rental Income ;~2a2~4_; (estimate only ")
2) Annual Rental Income $27,000
ANNUAL EXPENSES $5
Gen. Expenses: 25% SFD, Others 30% $6,750
Vacancy loss 3% $810
8) Total Expenses $7,560
NET OPERATING INCOME (NOI) $19,440
(Line 2 Minus 8)
CAPITALIZATION RATE
9) Interest Component 6.75%
10) Historic Property Risk 4%
(2%, or 4% for SFD)
11) Property Tax Component 1
12) Amortization Component 0.5%
13) Capitalization Rate 12%
(Sum Line 9 - 12)
TAXES
14) Mills Act Assessment $158,694
(NOI/ Line 13)
15) Tax Under Mills Act $1,643
(Line 14 X .01035146)
16) Current Tax „m~ ,yr,,~JQ9,
17) Tax Savings
(Line 16 -Line 15) $4,266
18) Annual Costs to City
(Line 17 X 16%) $683
*This worksheet provides only an estimate analysis.
The County of Los Angeles Office of the Assessor is responsible
for calculating official Mills Act property tax assessments each year.
ATTACHMENT B
2323 5th Street:
Draft Mills Act Resolution, Draft Mills Act Contract, Architect's Report and
Financial Analysis
Partial attachments are not available in electronic format. Entire document is available
for review at the City Clerk's office and the Libraries.
Recording Requested Bv:
City of Santa Monica
When Recdrded Mail To:
City of Santa Monica
1685 Main Street
Santa Monica, California 90401
Attention: City Attorney
No Recording Fee Required
Government Code Section 27383
Contract No. (CCS)
HISTORIC PROPERTY PRESERVATION AGREEMENT
THIS AGREEMENT is made and entered in to this 26th day of October, 2010 by and
between the City of Santa Monica, a municipal corporation (hereinafter referred to as the
"City") and Alex and Mary Jane Ricciardulli (hereinafter referred to as the "Owner").
RECITALS:
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;
B. Owner possesses fee title to certain real ~roperty, together with associated
structures and improvements thereon, located at 2323 5h 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;
C. On July 10, 2006, 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 October 26, 2010 the City Council of the City of Santa Monica
approved Resolution Number authorizing the execution of this Agreement between
the City of Santa Monica and the property owner of 2323 5th 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, 2011 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 nonrenewal 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 nonrenewal 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 nonrenewal, Owner may make a written protest of the notice of nonrenewal. At
any time prior to the renewal date, the City may withdraw its notice to Owner of nonrenewal.
If either City or Owner serves notice to the other of nonrenewal 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. Owner shall make improvements to the Historic Property in
accordance with the schedule of home improvements, drafted by the applicant and
approved by the City Council, attached as Exhibit "C", and incorporated herein by this
reference.
c. In any restoration or rehabilitation of the property required by
subsections (a) and (b) of this Section 3, 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.
2
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.
e. Before undertaking the property maintenance required by subsection
(a) of this Section 3 and the home improvements required by subsection (b) of this Section
3, Owner shall obtain all necessary building and planning permits to the extent required by
local law, including but not limited to, a Certificate of Appropriateness
4. Provision of Information of Compliance. Owner hereby agrees to furnish City
with 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 on an annual basis.
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 ih 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, the City 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 Chapters 9.36 and 9.40
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.
3
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: Alex and Mary Jane Ricciardulli
2323 5`h 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. Attornevs' 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 aII 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
A Municipal Corporation,
APPROVED AS TO FORM:
MARSHA JONES MOUTRIE
City Attorney
ATTEST:
MARIA STEWART
City Clerk
ROD GOULD
City Manager
OWNERS:
By:
ALEX RICCIARDULLI
By;
MARY JANE RICCIARDULLI
5
STATE OF CALIFORNIA )
ss.
COUNTY OF LOS ANGELES )
On before me;
personally appeared
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 entity upon behalf on 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.
SEAL
Description of Instrument
WITNESS my hand and official seal.
Notary Public in and for said State
Title: Historic Property Preservation Agreement
Property location: 2323 5 Street
Number of Pages: 5, plus Exhibits A, B, and C
6
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
ss.
On before me,
personally appeared ,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 ihstrument the
person(s), or entity upon behalf on 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.
SEAL
Description of Instrument
WITNESS my hand and official seal.
Notary Public in and for said State
Title: Historic Property Preservation Agreement
Property location: 2323 5t Street
Number of pages: 5. plus Exhibits A. B, and C
7
STATE OF CALIFORNIA )
ss.
COUNTY OF LOS ANGELES )
On before me.
personally appeared Rod Gould, 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
entity upon behalf on 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.
SEAL
Description of Instrument
WITNESS my hand and official seal.
Notary Public in and for said State
Title: Historic Property Preservation Acareement
Property location: 2323 5' Street
Number of Pages: 5, plus Exhibits A, B, and C
8
EXHIBIT "A"
LEGAL DESCRIPTION
In the City of Santa Monica, County of Los Angeles, State of
California:
LOT 2 IN BLOCK 4 OF THE HIGHLAND TRACT, IN THE CITY OF
SANTA MONICA, COUNTY OF LOS ANGELES, STATE OF
CALIFORNIA, AS PER MAP RECOREDED IN BOOK 24, PAGES 55
OF MISCELLANEOUS RECORDS IN THE OFFICE OF THE
COUNTY RECORDER OF SAID COUNTY.
9
EXHIBIT "B"
HISTORIC PROPERTY PRESERVATION AGREEMENT
PROPERTY MAINTENANCE
CITY OF SANTA MONICA
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 which renders it not properly watertight or
structurally unsafe.
In addition, the following maintenance measures are also required for the subject property:
1. Maintain all electrical and plumbing systems in safe, working order; repair and
replace as necessary.
**The property owner is required to obtain all necessary building permits and
planning permits such as a Certificate of Appropriateness for the work specified
herein **
10
EXHIBIT "C"
HISTORIC PROPERTY PRESERVATION AGREEMENT
PROPOSED HOME IMPROVEMENTS
The following projects shall be completed by the property owner of 2323 5th Street over the
initial ten (10) year term of the contract.
Item Year Task
1 2010-2020 Inspect and repair exterior wood prior to painting.
2 2010-2020 Paint exterior.
3 2010-2020 Inspect and repair east facade porch and staircase.
4 2010-2020 Repair roof at front dormers.
5 2010-2020 Patch and repair cracked driveway; replace if necessary.
6 2010-2020 Chimney repair and fireplace mantel restoration; pursue
restoration using original materials.
7 2010-2020 Repair damaged front entry concrete stoop.
8 2010-2020 Repair/paint exterior wood as needed.
9 2010-2020 Repair roof as needed.
10 2010-2020 Repair windows as needed.
11 2010-2020 General carpentry repairs to interior woodwork as needed.
12 2010-2020 Repair/paint interior plaster walls and ceilings as needed:
13 Annual Gutter and rain leader maintenance.
14 Annual Landscape maintenance.
15 Annual MEP systems maintenance.
**The property owner is required to obtain all necessary building permits and
planning permits such as a Certificate of Appropriateness for the work specified
herein **
11
City of Santa Monica
Mills Act Contract Application -Architectural Report
2323 5`h Street. Santa Monica, CA 90405
~rchitecturai Report
The intent of this report is to identify the status and condition of all character-defining
features of the property.
General Description
Built circa 1925, and moved to its current location in 1936, the one-and-one-half/two-story
single family residence is designed in the Colonial Revival architectural style and is
rectangular in plan and constructed of wood frame with and a concrete foundation. It is
situated towards the front of a 50 x 140 foot parcel with a concrete driveway to the south.
There is anon-contributing small one-story combination apartment and garage toward the
rear of the lot. Landscaping consists of a small grassy lawn fronting the house with low
shrubs and other vegetation in ground-level planting beds surrounding the dwelling on all
sides. There are several large trees including two palms at the rear of the house.
The residence is roofed by a steeply pitched, front-gabled roof with shallow eaves, with a
mix of hipped and gabled dormers. The majority of the dwelling's exterior elevations are
.sheathed in wide clapboard siding while the dormers are clad in wood shingles. Fenestration
is wood-frame, six-over-six double hung sash windows along the primary (west) fagade,
divided-light French doors on second floor, and a mix of divided-light casement and sash
windows of varying size on north, east, and south facades.
The features of the property which are typical of the Colonial Revival architectural style and
period, include the overall massing and scale; front gable roof; shallow eaves; dormers;
wide clapboard siding; wood framed, six-over-six, double-hung sash fenestration; squared,
fluted pilasters; dentiled entablature; and broken pediment centered by a decorative urn.
The property includes common elements of the Colonial Revival style as applied to a single-
family residence and exhibits a high level of physical integrity from the mid 1920s.
- _ 1-Id5TOR1C RESOURCES GROUP
t7zS Whitley Avenue, Hollywood, CA 9ooz8-g8o9
Telephone 323 469 2349, Facsimile 323 469 049
www.historicla.com
City of Santa Monica
Mills Act Contract Application -Architectural Report
2323 5th Street, Santa Monica, CA 90405
Character-®efin®ng Features
Spaee Character-®efiraing Features Condition recommendation
Exterior
West Facade • steeply pitched front gable with shallow Fair Inspect integrity of
(primary) eave woodwork; repair and
• wide horizontal wood clapboard siding Chipped, spilt and repaint
• six-over-six, double hung wood sash peeling paint
windows (x4) at the first floor
• wood-framed multi-light French doors Windows and doors in
(x2) at second floor good operating
• bracketed balconette with decorative condition
wrought iron railing flanked by squared
pilasters topped with a broken pediment
and decorative urn
North Facade • wide horizontal wood clapboard siding Fair Inspect integrity of
• dormers clad with wood shingles woodwork; repair and
• squared fluted pilasters at corners Chipped, split and repaint
• main entry at west end of facade; peeling paint
paneled wood door with wood-framed, Water infiltration and
divided-light sidelights and adivided-light Windows and doors in carbonation of concrete
transom good operating where iron rods are cast
• four steps and scored concrete stoop condition into front stoop has
• secondary entry at center of facade; - caused the expansive
paneled and glazed Dutch door with There are spills at two corrosion of iron and
squared fluted pilasters and an back corners of front spilling of the concrete;
entablature embellished with dentils concrete stoop remove iron rod and loose
. wood framed screen door concrete; epoxy coat iron
• three steps and concrete stoop Deteriorated metal before resetting; patch
• tertiary entry at east end of facade; flashing at drip damaged concrete in kind
Dutch door with divided-light vision panel sill/gutter
• two steps and concrete stoop Inspect and repair
• windows (first floor): six-over-six, double flashing; replace any
hung wood sash window (xl); single light deteriorated metal in kind
double hung wood sash window (xi);
divided-light double casement wood -
window (xl) _
•windows (second floor): wood-framed
divided-light French doors (x2); divided-
light double casement wood windows (x3)
East Facade • steeply pitched gable with shallow eave Fair Inspect integrity of
o wide horizontal wood clapboard siding woodwork; repair and
• squared fluted pilasters at corners Chipped, split and repaint
. wood-framed, divided-light single peeling paint
casement windows (x2) at first floor Engage a licensed
• wood-framed, divided-light Palladian- Windows and doors in structural engineer to
style double door flanked by divided-light good operating inspect the structural
single casement windows at second floor condition integrity of the metal
• wrought iron porch with wood deck staircase and its
supported by scrolled iron brackets with Staircase appears to be connections; repair and
sheet metal canopy and decorative railing pulling away from improve as recommended
and supports - house at connection of
• metal staircase with metal handrail from porch floor Inspect and repair
the driveway to the upstairs porch flashing; replace any
Deterioration of sheet deteriorated metal in kind.
metal scalloped trim
HISTORIC RESOURCES GROUP
1728 Whitley Avenue, Hollywood, CA gooz8-g8oq
Telephone 323 464 2349, Facsimile 323 469 0491
www.historicla.com
City of Santa Monica
Mills Act Contract Application -Architectural Report
2323 St" Street, Santa Monica, CA 90405
Space CFearacter-Defining Features Condition Reconemendation
around porch floor
South Facade .wide horizontal wood clapboard siding Fair Inspect integrity of
• dormers clad with wood shingles woodwork; repair and
• squared fluted pilasters at corners Chipped, split and repaint
• chimney clad in wood shingles (original peeling paint
brick chimney removed following 1994 Inspect chimney; repair
Northridge earthquake) Windows and doors in as needed
• windows (first floor): six-over-six, double good operating
hung wood sash windows (xZ); wood- condition -
framed, divided-light fixed windows,
flanking chimney (x2); wood-framed,
divided-light single casement windows
(x2); wood-framed, divided-light double
casement window (xl)
• windows (second floor): wood-framed
divided-light French doors (xl); divided-
light double casement wood windows
(z3); single light double hung wood sash
windows (x2)
Roof • mineral surfaced asphalt composition Fair Inspect flashing and wood
shingles at location of water
Water infiltration at infiltration; repair or
front dormers replace deteriorated
flashing and wood; repair
roof
Hardscape .poured concrete walkways Fair to poor Patch and repair
• poured concrete driveway driveway; selective
Heavily cracked removal and replacement
driveway in kind where repair is not
technically feasible
Landscape .Planting beds at perimeter of house Fair Restore front and back
. Front and back yard areas yard lawns and maintain
• Mature trees in back yard mature plantings and
recently installed shrubs..
Yn$eC90P
The interior of the residence is in good condition having recently been rehabilitated. Replace fireplace mantel
The kitchen and bathrooms have been updated. The fireplace mantel is not original with one of compatible
(the chimney was replaced after 1994 Northridge earthquake). design
Character-defining features include:
General layout of rooms and circulation pattern
Wood strip flooring
Window and door hardware
Wood paneled doors
Stairway with floor mounted wrought iron handrail _
Smooth finish plaster on walls and ceilings
Hand troweled plaster ceiling in dining room with Zodiac reliefs
Built-in casework in dining room/family room, hallway, bathroom and bedroom on
first floor
Hexagonal the on floor and on top of built-in casework, and built-in vanity with mirror
in first floor bathroom
Castiron tub with porcelain enamel finish in second floor bathroom
HiSTORiC RESOURCES GROUP
i7z8 Whitley Avenue, Hollywood, CA 9ooz8-48o9
Telephone 323 469 2349, Facsimile 323 469 o49t
www.historicla.com
City of Santa Monica
Mills Act Contract Application -Architectural Report
2323 5ih Street, Santa Monica, CA 90405
4
MEP S stems
The electrical system was completely upgraded. The plumbing was upgraded on an as
needed basis in kitchen and master bathroom. The forced air heating system was
newly installed, No future work needed at
this time
Structural
During the recent rehabilitation dry rot and structural deficiencies were found and
repaired. No future work needed at
this time
Prepared by:
Peyton Hall, FAIA
Principal/Preservation Architect
nP
Laura Janssen
Senior Architectural Historian
Historic Resources Group, LLC
July/August 2010
H15TOR1C RESOURCES GROUP
1y28 Whitley Avenue, Hollywood, CA gooz8-48o9
Telephone 323 464 2349, Facsimile 323 469 0491
www.historicla.com
City of Santa Monica
Mills Act Contract Application -Photographs
2323 5th Street, Santa Monica, CA 90405
Photographs
HISTORIC RESOURCES GROUP
1y28 Whitley Avenue, Haltywood, CA 90028-4809
Telephone 323 469 2349, Facsimite 323 469 0491
www.historicla.com
Description: West facade; View: Southeast
City of Santa Monica
Mills Ad Contract Application -Photographs
2323 St" Street, Santa Monica, CA 90405
HI570RICR£SOURC£S GROUP
1728 Whiney Avenue, Hollywood, CA 9oo28-g8o9
Telephone 323 469 2349. Facsimile 323 469 0491
Nnwv.historicla.com
Description: West facade; View: Northeast
City of Santa Monica
Mills Act Contract Application -Photographs
2323 5`h Street, Santa Monica, CA 90405
Description: West facade detail of steeply pitched roof with
fluted pilasters, broken pediment and decorative urn; balconette
with decorative wrought iron railing supported by scrolled brackets
View: Northeast
HISTORIC RESOURCES GROUP
iy28 Whitley Avenue, Y,ollywood, CA 9oo28-G8o9
Telephone 323 469 2349, Facsimile 323 469 o49t
www.historicla.com
City of Santa Monica
Mills Act Contract Application -Photographs
2323 5`h Street, Santa Monica, CA 90405
HISTORIC RESOURCES GROUP
2~z8 Whitley Avenue, Hollywood, CA 9oo28-G8o9
Telephone 323 4692349, Facsimile 3z3 469 049
www.historicla.com
4
Description: North facade main entry; View: Southeast
City of Santa Monica
Mills Act Contract Application -Photographs
2323 5th Street, Santa Monica, CA 90405
Description: North facade main entry detail of
with divided-light sidelights and transom
View: Southeast
HISTORIC RESOURCES GROUP
1728 Whitley Avenue, Hollywood, CA 9oo28-g8oo
Telephone 323 469 2349, Facsimile 323 q69 o49i
www.historida.com
City of Santa Monica
Mills Act Contract Application -Photographs
2323 St" Street, Santa Monica, CA 90405
iiISTORIC RESOURCES GROUP
t~z8 Whitley Avenue, Hollywood, CA 9ooz&g8og
Telephone 3z3 469 z349~ Facsimile 3z3 469 049
www.historida.com
6
City of Santa Monica
Mills Act Contract Application -Photographs
2323 St" Street, Santa Monica, CA 90405
HISTORIC RESOURCES GROOP
t7z8 Whitley Avenue, Hollywood, CA 9ooz8-4809
Telephone 323 469 2349, Facsimile 323 q69 oggi
www.historicla.com
Description: North facade secondary entry detail of pilasters
with decorative entablature
View: Southeast
City of Santa Monica
Mills Act Contract Application -Photographs
2323 5th Street, Santa Monica, CA 90405
H15TORIC RESOURCES GROUP
iyz8 Whitley Avenue, Hollywood, CA gao28-g8o9
Telephone 323 469 2349, Facsimile 323 469 049
www.historicla.com
City of Santa Monica
Mills Act Contract Application -Photographs
2323 5th Street. Santa Monica. CA 90405
H]STORiC RESOURCES GROUP
tyz8 Whitley Avenue, Hollywood, CA 9oo28-4809
Telephone 323 469 2349, Facsimile 323 469 og9i
www.historicla.com
City of Santa Monica
Mills Act Contract Application -Photographs
2323 St" Street, Santa Monica, CA 90405
HISTORIC RESOURCES GROUP
ty2S Whitley Avenue, Hollywood, CA 9ooz8-g8o9
Telephone 323 469 2349, Facsimile 323 469 o49i
www.historida.com
10
scrolled brackets and sheet metal canopy; Palladian-style door
View: Northwest
City of Santa Monica
Mills Act Contract Application -Photographs
11
2323 5th Street, Santa Monica, CA 90405
H75TORIC RESOURCES GROUP
1728 Whiney Avenue, Hottywood, CA goo28-4809
Telephone 323 469 2349, Facsimile 323 469 0491
evww.historicla.com
Description: East facade detail of structural deficiency of
wrought iron balcony
View: North
City of Santa Monica
Mills Act Contract Application -Photographs
2323 5th Street, Santa Monica, CA 90405
View: Northwest
HtSTORIC RESOURCES GROUP
1728 Whitley Avenue, Holtywood, CA 90028-4809
Telephone 323 469 2349, Facsimile 323 q6g og9i
rovww.historida.mm
12
City of Santa Monica
Mills Act Contract Application -Photographs
2323 5`" Street. Santa Monica. CA 90405
HiSTOR1C RESOURCES GROUP
iyz8 Whitley Avenue, Hollywood, CA 90028-4809
Telephone 323 469 2349, Facsimile 323 469 og9i
w~uw.historicla.com
13
City of Santa Monica
Mills Act Contract Application -Photographs
2323 St" Street. Santa Monica. CA 90405
and corner pilaster;
View: North
HISTORIC RESOURCES GROUP
t728 Whitley Avenue, Hollywood, CA 9oo28-n8o9
Telephone 323 469 2349, Facsimile 323 469 0491
www.historicla.com
14
City of Santa Monica
Mills Act Contract Application -Photographs
2323 5th Street, Santa Monica, CA 90405
ti1STORIC RESOURCES GROUP
i9z8 Whitley Avenue, HoIlywood, CA 9ooz8-g8o9
Telephone 323 469 2349, Facsimile 323 469 o49r
wuvw.historicla.com
15
Description: South facade detail of shingle clad chimney
View: Northwest
City of Santa Monica
Mills Act Contract Application -Photographs
16
2323 S`h Street, Santa Monica, CA 90405
}i15TORiC RESOURCES GROUP
i7z8 Whiney Avenue, Hollywood, CA 9ooz8-g8o9
Telephone 3z3 469 2349, Facsimile 3z3 469 049
www.historicla.com
Description: Rear yard; View: Northeast
City of Santa Monica
Mills Act Contract Application -Photographs
2323 St" Street, Santa Monica, CA 90405
HISTORIC RESOURCES GROUP
iy28 Whitley Avenue, Hollywood, CA 9oo28-n8o9
Telephone 323 469 2349, Facsimile 323 469 o49i
www.historida.com
17
Description: Driveway; View: West
City of Santa Monica
Mills Act Contract Application -Photographs
2323 5th Street. Santa Monica. CA 90405
View: North
HISTORIC RESOURCES GROUP
lyz8 Whitley Avenue, Hvllyuvood, CA 9ooz8-48o0
Telephone 3z3 469 z349, Facsimile 3z3 469 og9i
uvww.historicla.com
ws
18
City of Santa Monica
Mills Act Contract Application -Photographs
2323 5th Street, Santa Monica, CA 90405
View: Southeast
xtsroxtc xasouxcES cxour
i7z8 Whittey Avenue, Hollywood, CA 9ooz8-g8o9
Telephone 323 469 2349, Facsimile 323 G69 0491
www.historicla-com
19
City of Santa Monica
Mills Act Contract Application -Photographs
2323 5`" Street, Santa Monica, CA 90405
HtSTOR1CRE50URCES GROUP
i~z8 Whitley Avenue, Hollywood, CA gooz8-g8o9
Telephone 323 469 2349, Facsimiie 3z3 469 049
www.historicla.com
20
Description: Dining room with secondary entry door, built-in casework, picture molding,
and hand troweled plaster ceiling;
View: East
City of Santa Monica
Mills Act Contract Application -Photographs
2323 5`h Street, Santa Monica. CA 90405
View: Northeast
H15TORIC RESOURCES GROUP
.128 Whitley Avenue, HoIlywood, CA 9oo28-g8o9
Telephone 323 469 2349, Facsimile 323 469 0491
wwuv.historicla.com
21
City of Santa Monica
Mills Act Contract Application -Photographs
2323 5th Street, Santa Monica, CA 90405
HISTORIC RESOURCES GROUP
1~z8 Whitley Avenue, Hollywood, CA 9oo28-g8o9
Telephone 323 469 2349, Facsimile 323 469 0491
www.historicla.com
~r the
22
View: Northwest
City of Santa Monica
Mills Act Contract Application -Photographs
23
2323 5th Street, Santa Monica, CA 90405
HISTORIC RESOURCES GROUP
i~z8 Whitley Avenue, Hollywood, CA 9ooz8-g8o9
Telephone 323 469 2349, Facsimile 3z3 q69 o49i
www.historida-com
Description: Typical door hardware
Description: Typical window hardware
City of Santa Monica
Mills Act Contract Application -Photographs
2323 5`" Street, Santa Monica, CA 90405
View: Northwest
HiSTORiC RESOURCES GRQUP
t~28 Whifley Avenue, Hollywood, CA 9ooz8-4809
Telephone 3z3 469 2349, Facsimile 323 469 o49i
www-historicla.mm
24
City of Santa Monica
Mills Act Contract Application -Photographs
2323 5th Street, Santa Monica, CA 90405
HISTORIC RESOURCES GROUP
i~z8 Whittey Avenue, Hollywood, CA 9ooz8-g8o9
Tetephone 3z3 469 2349. Facsimile 3z3 469 049
www.historicta.com
25
Description: Middle bedroom with divided-light casement windows
View`. East
City of Santa Monica
Mills Act Contract Application -Photographs
2323 5th Street. Santa Monica, CA 90405
HIS'i'ORPC RESOURCES GROUP
t7z8 Whitley Avenue, Hollywood, CA goozB-g8o9
Telephone 323 469 2349, Facsimile 323 469 o49c
wuwv.historicla.com
26
Description: Bathroom with cast iron bathtub with porcelain
enamel finish
View: Northwest
City of Santa Monica
Mills Act Contract Application -Photographs
2323 5`" Street, Santa Monica, CA 90405
HiSTOR1C RESOURCES GROUP
1728 Whitley Avenue, Hollywood, CA 90028-4809
Telephone 323 469 2349 Facsimile 323 469 0491
www.historidacom
27
Description: Back bedroom with Palladian-style door and divided-light casement windows
View: East
ESTIMATE FINANCIAL ANALYSIS FOR MILLS ACT CONTRACT**
2323 5th Street
REVENUES Current
1) Est. Monthly Rental Income $5,500 (estimate only'")
2) Annual Rental Income $66,000
ANNUAL EXPENSES
Gen. Expenses: 25% SFD, Others 30% $16,500
Vacancy loss 3% $1,980
8) Total Expenses $18,480
NET OPERATING INCOME (NOI) $47,520
(Line 2 Minus 8)
CAPITALIZATION RATE
9) Interest Component 6.75%
10) Historic Property Risk 4%
(2%, or 4% for SFD)
11) Property Tax Component 1
12) Amortization Component 0.5%
13) Capitalization Rate 12%
(Sum Line 9 - 12)
TAXES
14) Mills Act Assessment $387,918
(NOI/Line 13)
15) Tax Under Mills Act $4,016
(Line 14 X .01035146)
16) Current Tax $8,346
17) Tax Savings
(Line 16 -Line 15) $4,330
18) Annual Costs to City
(Line 17 X 16%) $693
**This worksheet provides only an estimate analysis.
The County of Los Angeles Office of the Assessor is responsible
for calculating official Mills Act property tax assessments each year.
ATTACHMENT C
Summary Financial Analysis Table
Electronic version of attachment is not available for review. Document is available for
review at the City Clerk's Office and the Libraries.
Attachment C
2010 --SUMMARY OF ESTIMATE FINANCIAL ANALYSIS FOR MILLS ACT CONTRACTS**
Property
Address Est. Assessed
Value (MILLS
ACT) Current Tax ~
(Prop. 13) Est. Tax
(MILLS ACT) Est. Mills Act
Tax as a % of
Current Tax Est. Reduction in
Property Tax City Revenue
(Prop. 13) City Revenue
(MILLS ACT) City Revenue
Reduction
24024th Street#12 $158,694 $5,909 $1,643. 27.8% -$4,266 $945 $263 ($683)
23235th Street $387,918 $8,346 $4,016 48.1% -$4,330 $1,335 $642 ($693)
Reference Resolution Nos.
10536 (CCS) and 10537
(ccs).