The URL can be used to link to this page

SR 10-11-2011 3AID _m City of City Council Report Santa Monica City Council Meeting: October 11, 2011 Agenda Item:JA To: Mayor and City Council From: David Martin, Director, Planning & Community Development Subject: New Mills Act Contracts at 1063 26th Street, 2504 3m Street, 1501 -1515 4" Street and 2616 -2618 3`d Street. Recommended Action Staff recommends that the City Council adopt the attached 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 four designated City Landmarks at 1063 26th Street, 2504 3rd Street, 1501 -1515 4th Street and 2616 -2618 3rd 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 four pending Mills Act Contracts will result in reduced property tax revenue to the City estimated at $12,164 total for the 2011 -2012 fiscal year and a similar amount annually thereafter. 1 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 Mills Act contracts run with the property, subsequent owners may realize greater tax benefits, as the assessed property value typically increases when the 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. 2 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 penalty 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. Discussion 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. 3 Los Angeles County Assessor's Office data showed that for the 2010 -2011 tax year, property value assessments for the 50 Santa Monica historic properties with executed Mills Acts contracts have been reduced between 11% and 82 %, with the average reduction being 52 %, 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. Staff estimates that the four new contracts will result in respective property tax reductions between 61% -79% with an average reduction of 69 %. 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 restoration /maintenance 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. In February 2011, staff initiated its latest contract monitoring effort for 48 of the 50 existing contracts (the remaining two were recent contracts approved in 2010), and to date, continues to work with the property owners to ensure that contractual terms and obligations are being fulfilled and the properties are appropriately maintained. Analysis There are four new applications for consideration in 2011: • a culturally significant variant of the American Four - Square style at 1063 26th Street (former Bertolt Brecht residence), • a two -story Craftsman style single - family residence at 2504 3rd Street (Charles rd W. Brown house) in the Ocean Park neighborhood; • the Builders Exchange Building, a commercial building designed with Churriguresque -style detail at 1501 -1515 4th Street in downtown; and, • a two -story Craftsman /Colonial Revival style multi - family residence located at 2616 -2618 3rd Street, a contributing building in the 3rd Street Neighborhood Historic District. In addition to the specific restoration and repair obligations listed below for the individual property, each Mills Act Contract would include a standard requirement for ordinary maintenance and upkeep throughout the Contract's term for work such as roof, plumbing, and electrical systems maintenance. 106326 th Street A Mills Act Contract application was filed on August 11, 2011 for the two -story, building designed in a unique variant of the American Four - Square style. The subject property is located on the east side of 26th Street, opposite California Avenue. The residence, which was constructed around 1921, is situated on a parcel that is unusually large for the neighborhood. The existing single - family residence was designated a City Landmark on March 14, 2011 primarily based on its cultural significance as the former residence of German -born playwright Bertolt Brecht between 1942 and 1947. As part of the Mills Act application, an architect's report was prepared by architect Gabriel L. Sandoval, of DUB Studios, Inc. The report assesses the condition of the 5 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 and some of the more prominent features appear to be in good condition and repair. The foundation of the residence is the exception and has been identified as an item of critical concern. The existing structure is constructed on a sub - standard foundation system of bricks and stone, and in some areas is not bolted to the residence. 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 would be an attachment to the Mills Act Contract. Proposed Maintenance and Rehabilitation Plan Examples of significant work proposed during the contract terms include the following: • Replace existing roof • Repair /replace corroded downspouts • Repair /replace damaged wood siding • Repair /repoint chimney • Replace and underpin existing foundation and replace damaged floor framing • Replace concrete flatwork and improve on -site drainage • Upgrade electrical and HVAC systems Attachment A also contains the estimated financial analysis for the property at 1063 26th Street. 2504 3'd Street A Mills Act Contract application was filed on August 15, 2011 for the one and one -half story Craftsman /Colonial Revival style single - family residence located at 2504 3`d Street. This residence, known as the Charles Warren Brown house, was designated a City Landmark on July 10, 2006. The subject building is located in the Ocean Park R neighborhood on the southeast corner of 3rd and Mills Streets. Originally constructed in 1910, the building retains a high level of physical and historic integrity. As part of the Mills Act application, an architect's report was prepared by architect Mike Salazar. 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 the attachment, the exterior of the residence is noted as being in good condition and generally requires only exterior repair work, mainly due to weathering conditions. The rear porch and stair rails are noted as being deteriorated and need replacement in the short term. Proposed Maintenance and Rehabilitation Plan Examples of significant work proposed during the contract terms include the following: • Replace wood shingle siding on west and south elevations • Repair /replace wood horizontal siding and add insulation on north and east elevations • Repaint exterior of house • Repair or replace non - historic railings at rear porch and stairs • Additional seismic bracing in basement, cripple walls and uplift brackets • New electrical service • Partial re- plumbing of house Attachment B also contains the financial analysis estimate for the property at 2504 3rd I/I Street. 1501 -1515 4m Street A Mills Act Contract application, was filed on August 15, 2011 for the two and three -story commercial Builders Exchange building located on the corner of 4th Street and Broadway in downtown. The building, with its elaborate and character defining Churriguerresque style decoration, was designated a City Landmark in June 2009. Originally constructed in 1927, the building underwent significant seismic repair and fagade restoration after the 1994 Northridge earthquake. mid As part of the Mills Act application, an architect's report was prepared by architect William Dale Brantley of aARts Architects. The report assesses the condition of the commercial building and identifies repair, restorationlrehabilitation and maintenance needs (Attachment C) along with a general schedule for completion of work. As discussed more fully in the attachment, the exterior of the Builders Exchange building is in very good condition and generally only requires on -going inspection and maintenance. No significant rehabilitation tasks are proposed. Proposed Maintenance and Rehabilitation Plan Examples of significant work proposed during the contract terms include the following: F] • Total building exterior repainting • Storefront and tile refurbishment • Repaint filigree and building ornamentation Attachment C also contains the financial analysis estimate for the property at 1501 -1515 4th Street. 2616 -2618 3`d Street A Mills Act Contract application was filed on August 15, 2011 for the two -story Craftsman /Colonial Revival style multi - family residence located within the 3`d Street Neighborhood Historic District at 2616 -2618 3`d Street. The building is noted as being a contributing structure within the District. The subject building is located on the west side of 3`d Street, between Beach and Hill Streets in the Ocean Park neighborhood. Originally constructed in 1909/1910 as a single - family, the building was converted to three separate residential units around 1919. The residence retains a high level of physical integrity and its distinctive roofline and dormers are extant. As part of the Mills Act application, an architect's report was prepared by architect Richard E. Barron. The report assesses the condition of the building and identifies 9 repair, restoration /rehabilitation and maintenance needs (Attachment D) along with a general schedule for completion of work. As discussed more fully in Attachment D, the exterior of the residence is in good condition and repainting was identified as the most substantial maintenance task to be undertaken.. Significant rehabilitation /restoration projects anticipated during the initial contract period would be the replacement of the exterior doors and certain aluminum windows with more architecturally and historically compatible elements. Also, the fireplace chimney on the north elevation, which was lost in the Northridge earthquake, is proposed to be rebuilt. Proposed Maintenance and Rehabilitation Plan Examples of significant work proposed during the contract terms include the following: • Termite abatement/Fumigation • Repaint entire building exterior • Rebuild former fireplace chimney • Repair roof at front dormers • Replace exterior doors and windows • Reroof • Rehabilitate rear garage Attachment D also contains the financial analysis estimate for the property at 2616 -2618 3`d Street. Commission Action The Landmarks Commission reviewed the Mills Act Contract requests at its September 12, 2011 meeting and directed staff to forward recommendations to the Council in support of all new applications. Financial Impacts & Budget Actions 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. Execution of these Mills Act Contracts would result in reduced annual property tax ID] revenue to the City estimated at $1,579 for 1063 26th Street, $9,512 for 1501 -1515 4th Street and $1,072 for 2616 -2618 3rd Street, for a total of $12,284 for the 2011/2012 fiscal year. The contract for 2504 3rd Street is expected to be cost neutral for the City based upon the length of current ownership and established procedures for determining assessments for Mills Act properties. The combined value of this subsidy for these specific properties within the initial contract period of ten years is approximately $127,262 ($16,520 for 1063 26th Street, $99,517 for 1501 -1515 4th Street and $11,215 for 2616 -2618 3`d Street.). However, if in the future the property at 2504 3`d Street were to be sold, revenues due to the City would be further reduced as a result. 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 E. Prepared by: Scott Albright, AICP, Senior Planner Approved: avid Martin Director, Planning and Community Development Forwarded to Council: Rod Gould City Manager Attachments: A. 106326 th Street: Draft Mills Act Resolution and Contract, Architect's Report and Financial Analysis B. 2504 3rd Street: Draft Mills Act Resolution and Contract, Architect's Report and Financial Analysis C. 1501-15154 Ih Street: Draft Mills Act Resolution and Contract, Architect's Report and Financial Analysis D. 2616 -2618 3rd Street: Draft Mills Act Resolution and Contract, Architect's Report and Financial Analysis 11 E. Summary Financial Analysis Table 12 ATTACHMENT A 106326 th 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. IN Recording Requested By: 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 25th day of October, 2011 by and between the City of Santa Monica, a municipal corporation (hereinafter referred to as the "City ") and David Golubchik (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 1063 26th 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 March 14, 2011, 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 25, 2011 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 1063 26th 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, 2012 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 Propert y. 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 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 Propert y. 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: David Golubchik 106326 th Street Santa Monica, CA 90403 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 4 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, By: ROD GOULD City Manager APPROVED AS TO FORM: OWNER: MARSHA JONES MOUTRIE DAVID GOLUBCHIK City Attorney ATTEST: MARIA STEWART City Clerk STATE OF CALIFORNIA ) ) ss. COUNTY OF LOS ANGELES ) Pro personally appeared me, 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: 1063 2street Number of Pages: 5, plus Exhibits A. B, and C 6 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: 1063 26t 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 Agreement Property location: 1063 26 S et Number of Pages: 5, plus Exhibits A, B, and C 0 L:Vzmllur9v_vl LEGAL DESCRIPTION In the City of Santa Monica, County of Los Angeles, State of California: Lot 27 and the southerly 20 feet of Lot 28 in Block 8 of Tract No. 27, in the City of Santa Monica, County of Los Angeles, State of California, as per Map recorded in Book 12, Page 188 of Maps, in the Office of the County Recorder of said County. iacu3rlrl HISTORIC PROPERTY PRESERVATION AGREEMENT PROPERTY MAINTENANCE [a] r W c.71 WWI Z I r_\ i! i 101 Z I WWI 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 i�aal 3r��ll HISTORIC PROPERTY PRESERVATION AGREEMENT PROPOSED HOME IMPROVEMENTS The following projects shall be completed by the property owner of 1063 26`h Street over the initial ten (10) year term of the contract. Item Year Task 12 2012 Maintenance Tasks 1 Annual Inspect roof, flashing, gutter and downspout inspection 2 2021 Repaint exterior of house 3 Annual Exterior door and window repair /maintenance 4 2015 -2016 Replace any damaged /deteriorated wood siding 5 2013 -2014 Chimney inspection and cleanings 6 Annual Crawlspace ventilation upkeep /inspection 7 2021 Repair /replace site drainage 8 2016 Repaint interior of house 9 Annual Periodic inspection of plumbing, mechanical and electrical 10 2012 Installation of carbon monoxide alarms 11 Bi- Annual Mechanical ductwork leak testing and inspection * *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 Rehabilitation /Restoration Tasks 12 2012 Replace existing roof 13 2012 -2013 Repair /replace (lashings 14 2012 -2013 Replace corroded downspouts 15 Annual Repair any wood sill /trim at doors /windows 16 2012 -2013 Repair / Repoint existing masonry joints at chimney 17 2011 -2012 Repair /Replace and underpin existing foundation and damaged 18 2011 -2012 floor framing members 19 2012 -2013 Replace concrete flatwork and improve on -site drainage 20 2012 -2013 Replace galvanized piping with copper 21r 2012 Upgrade electrical system 22 2012 Upgrade HVAC system * *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 studios August 3, 2011 Architectural Report of Existing Historic House located at: 1063 261h Street, Santa Monica, CA 90403 Scope of Report: The intent of this report is to generally describe the conditions of both the existing residence and the site. General Description: The house was built around 1921 (one of the oldest in the area) and is a variant of the American Four - Square architectural style. The house sits on a larger- than -usual lot for the neighborhood, which again allows the house and site to stand apart from the others along the busy 26th street thoroughfare. The influential German playwright Bertold Brecht lived in the house from 1942 to 1947, where he wrote several works that debuted in the Los Angeles area in the 1940s. Due to the historic and cultural nature of the house and property, the City of Santa Monica Landmarks Commission designated the house and property as a 'City Landmark' on January 10, 2011. The house sits on a large 160'x 75' (approx.) roughly flat lot, with some steep sloping near the 26th Street sidewalk/street. Vehicle access is from a single curb -cut on 26th Street, as well as from the alley behind the property. The front, and north side, of the existing house are open and visible from the public way with a chain -link fence at the end of a concrete driveway, which screens the back yard. There is a small wood fence along front property line with no gate, which makes the front of the house easily accessible from the sidewalk. The property has a wide variety of trees, shrubs, and plantings with no clear order or design. There are some existing fruit trees in the side and rear yards, with an abandoned raised garden area on the north side yard. There are several concrete pads and concrete walks throughout the property, all of which are in disrepair and cracked. There is an existing garage /guest building on the site that is significantly dilapidated and seemingly not built to any applicable codes or standards. The main house structural system is a matter of concern as the entire foundation is sub - standard and is in need of replacement and /or underpinning. Also, the roof framing has been severely stained from water intrusion and will most likely require replacement. Concealed wall framing (studs) have not been uncovered and thus not reviewed at this time. There have been a few additions to the rear of the house since initial construction in the 1920s. These additions include an exterior deck and the enclosing of the back porch into a laundry/utility room. The deck addition is sound, however the laundry room addition is completely substandard as to structure, finishes and ventilation, including stair access from the backyard. The interior of the house is standard drywall /plaster throughout with somewhat dated fixtures and casework. No special historical or unique aspects exist inside the house. 530 BROADWAY, FLOOR 3, NEW YORK, NY 100'12 TEL:917.621.2016 FAX 212.608.6388 842 19" STREET, SANTA MONICA, CA 90403 TEL 310.285.5199 FAX :310.496. 1234 studios Exterior Finishes & Systems: Roofing: The existing shingle roofing has reached the end of its useful life. Existing shingles are deteriorated, curled and there is more than one layer of shingles on the house. - Recommendation: Replace existing roofing (to match) with new shingle roofing system in the next six - months to a year. - Maintenance: Upon replacement, the roofing shall be inspected on a yearly basis by a roofing professional for possible leaks, damage, etc. Repair & replace shingles as determined by roofing professional at the time of those inspections. Flashing: Some metal flashing is missing over the front sun room (connection to main house). - Recommendation: Add missing flashing(s), and replace deteriorated flashing(s) in the next six- months to a year. - Maintenance: Flashings shall be inspected every year by a roofing /flashing professional for possible leaks, damage, etc. Repair or replace any damaged sub - standard flashing assemblies as determined by roofing /flashing professional. Flashings shall be repainted as necessary to maintain serviceability. 3. Gutters & Downspouts: Some metal gutters and downspouts are beginning to corrode and will need replacement in the future. - Recommendation: replace corroded downspouts and gutters in the next year to two years. - Maintenance: Gutters and downspouts should be visually inspected during their intended use (while raining) to see if connections, slopes, outlets, etc. are performing as intended. A sheet metal /gutter professional should inspect the system and components once a year and make necessary repairs & replacements (to match). Seasonal cleaning of debris from open gutters is also recommended. 4. Wood Siding: The existing wood siding (painted) has held up considering the age of the house. Only some areas of the wood siding require attention. - Recommendation: replace or repair any necessary siding pieces /elements in the next five years. Review siding in five to ten years for possible replacement of all exterior siding. Note: If siding remains intact and in serviceable condition, consideration should be to leave it in place due to its original and historical significance to the house overall. - Maintenance: Visually inspect the exterior wood siding yearly (especially at connections, corners, and details) to ensure siding remains securely attached and that protective coating (paint) remain continuous and intact. Apply new paint over entire house in the next 10 to 20 years, removal of previous coatings is recommended at the time of new paint. 5. Doors & Windows: There are two main types of windows (metal & wood) throughout the exterior of the house with metal predominantly upstairs and wood downstairs. Doors to the house at the exterior are primarily of wood construction. Some trims and casings need attention as some of the paint has worn off and wood may begin to deteriorate. - Recommendation: Repair -in -place any exposed or deteriorated wood materials, and repaint to protect these areas. - Maintenance: Visually inspect the doors and windows yearly to ensure no exposed wood parts and that finishes (paint) are maintaining their protection of wood elements. 530 BROADWAY, FLOOR 3, NEW YORK, NY 10012 TEL:917.621.20'I6 FAX 212.608 -6388 842 1 9'" STREET, SANTA MONICA, CA 90403 TEL :310. 285.5199 FAX: 310. 496.1234 studios 6. Decks, Balconies, & Stairs: Existing decks balconies and stairs are made from wood and are currently in serviceable condition. Some of the rails do not meet current building code standards. - Recommendation: As these items are clearly not historic, it should be Owner's discretion as to their removal, if so desired. Should they be kept in place, additional elements should be added to maintain guardrail and handrail safety requirements per applicable building codes. - Maintenance: Should Owner decide to keep these elements, they should be painted on a two -year period, or re- stained /re- sealed on a one -year basis based on their current finish /coating. 7. Chimney: The existing red -brick chimney remains a clear visual element to the overall feel and look of the house, and though it is decades -old construction, it appears to be able to maintain its use and stability. A metal brace between the house and chimney currently exists. Some of the masonry joints are in need of attention. - Recommendation: Have the chimney inspected by a both a structural engineer and a chimney sweep /cleaner in the next six - months to a year. Specifically, the structural engineer should review the existing brace and provide additional recommendations as to the structural (earthquake) stability of the chimney. Current masonry joints should be filled / addressed by a qualified mason in the next one to two- years. - Maintenance: chimney shall be inspected every two years by a chimney sweep /inspector and report to Owner any necessary maintenance items. Chimney structure should be reviewed by a professional engineer after any major earthquake or tremor. Masonry joints should be repaired /filled as needed. 8. Foundation & Crawlspace: The existing structure sits on a sub - standard foundation system of bricks and stone, and in some areas exhibit cracks indicating structural movement. The house is not currently bolted to the (sub- standard) foundation. The crawlspace itself has damp soil in some areas, which could lead to mold and deterioration issues for wood framing members. Some floor framing members exhibit signs of water damage and deterioration. There are some wood -to -earth connections, which is typically not allowed in current building codes, and some of these piers have shifted from vertical. - Recommendation: Actual replacement or at least under - pinning of the existing foundation is recommended. New concrete foundations and footings should be installed and correct attachment of super - structure should occur through to these new foundation systems. It is recommended that a structural engineer be retained to advise on and implement this new foundation system. Any damaged floor joists (including any mold- bearing joists) and posts /column /piers be replaced with new (up to code) structural members and systems. Additional crawlspace vents should be added to ensure proper ventilation and air movement required by applicable building codes, These structural and air related items should be done in the next six - months to a year. These items may be done as part of any proposed remodel or renovation project. - Maintenance: Once upgrades and replacements are made, bi- monthly review of the ventilation system(s) should be made to ensure no new moisture situations arise under the house until it's determined that they are performing satisfactorily. 530 BROADWAY, FLOOR 3, NEW YORK, NY 10012 TEL 917.621.2016 FAX 212.608. 6388 842 19'" STREET, SANTA MONICA, CA 90403 TEL 310.285.5199 FAX: 310. 496 .12 34 studios 9. Garage & Guest Building: This building appears to be been constructed very poorly with some alterations made throughout the life of the building: The existing roof has reached the end of its useful life. There are structural beam deflections and deteriorations in the attic space. The garage floor has a significant crack indicating structural movement or settlement. The garage door is in disrepair and may be succumbing to termites or other pests. Rotted wood is evident along some portions of the exterior siding near grade. Also, safety issues such as no occupancy- separation wall between garage and guest quarters need to be addressed. - Recommendation: Generally this out - building is sub - standard in many ways and would require significant expense to upgrade and /or repair. It would be perhaps more cost effective to remove and replace this structure than to retrofit. Since this building does not appear to be part of the original house design /construction and maintains no historical significance, it should be removed and replaced with new construction. If there is to be a new garage / guest building designed as part of a remodel /addition to the main house, this building should be removed as part of that work. - Maintenance: Building as is would require significant maintenance work and schedule beyond reasonable expectations. However, once new building is constructed, typical building up -keep and inspections should be done periodically to ensure building components and materials and performing as designed. 10. Grounds: The grounds consist of lawn, flatwork and landscaped areas. Most of the flatwork (concrete) areas, including the primary driveway from 16th Street, appear to be cracked or have shifted structurally, either being raised or tilted in some manner. The entry steps and path to sidewalk appear to be in serviceable condition. Some areas of the relatively flat site appear to pond and need attention in regards to drainage. Overall landscape and planted areas remain in workable condition as -is. - Recommendations: Existing driveway and backyard flatwork that is cracked or damaged should be replaced in the next 5 to 10 years. New drainage devices and site drainage systems should be installed in the next one to two - years. - Maintenance: Existing site and grounds should be reviewed immediately after a rainfall to ensure site drainage (sheet and collected flows) systems are functioning properly, and that water is directed away from main building and any site structures. Any new site drainage devices and systems should be reviewed during & after a rainfall to ensure proper function. Replace any defective system devices in the next 5 to 10 years. Interior Finishes & Systems: Wall, Floor & Ceiling Finishes: In general the finishes and materials in the interior spaces are usable and are in fair condition. No severe cracks or damage are noticeable from the interior of the house. However, in the existing Laundry room there are some leak stains on the ceiling that need to be addressed. Existing fixtures and casework, though functioning, are dated and will come to a useful end in the next 5 to 10 years. Recommendation: replace the ceiling finish systems in the Laundry room, and address the leak issue in ceiling /roof above in the next year. Replace plumbing fixtures and casework in the next 5 to 10 years. Maintenance: Inspect interiors once a year for signs of any leak, mold, damage, etc. and make necessary repairs. Repaint interior of house in the next 5 years. 530 BROADWAY, FLOOR 3, NEW YORK, NY 10012 TEL 917.621 .2016 FAX: 21 2.608.5388 842 19" STREET, SANTA MONICA, CA 90403 TEL: 31 0. 285.51 99 FAX 310.496. 1234 studios 2. Doors & Windows: The downstairs 'historic' (operable) windows seem to all be painted shut and some of the doors are in need of adjustment/re- hanging. - Recommendation: Adjust / Alter wood windows downstairs to become operable, taking special care to avoid damage to frame /sash and breaking of older glazing. - Maintenance: Double -hung windows should be waxed /oiled yearly and all doors should be inspected yearly and adjusted (hinges, latches, etc) for proper operation. 3. Fireplace: The existing gas fireplace and brick hearth /surround remains intact and is in usable condition. There appears to be no damper, though not required for this type of fireplace operation. Some of the masonry joints have become worn and deteriorated. - Recommendation: Add damper (for weatherproofing concerns) to existing fireplace in the next one to two years. Masonry joints should be tended to by qualified. mason. - Maintenance: Mason or Chimney Inspector should review condition of internal flue and report to Owner need for repairs or replacement; inspection should be in the next year. Routine cleaning and inspection of fireplace should be done by qualified chimney /fireplace inspector /cleaner every two years. Plumbing System: Water Supply: It appears that the main water line is of galvanized piping, this is sub - standard and is most likely near the end of its useful life. No pressure regulatoris noticeable from the front of the house and needs addressing. Also, there is no pressure relief valve. - Recommendation: Replace existing galvanized water supply piping in the next 2 to 3 years. Install pressure regulator and pressure relief valve in the next year. - Maintenance: once installed, maintain periodic visual inspection 2. Water Lines /Pipes: The water piping throughout the building appear to be made of galvanized piping, with some new copper piping near kitchen. There are several areas where leaks are apparent as well as many areas where corrosion is readily visible. - Recommendation: replace all galvanized piping with new piping in the next year to two years. - Maintenance: once replaced, maintain periodic visual inspection 3. Gas System: There is no seismic gas shut -off valve. - Recommendation: add shut -off valve in the next year. - Maintenance: once installed, maintain periodic visual inspection 4. Water Heater: There is an existing gas water heater in the utility /laundry room area. The unit is in working order though older, and does not have a drain pan /drain underneath or the proper venting apparatus. - Recommendation: replace water heater in two to five- years. Provide proper venting at time of replacement. Add sheet metal pan under current water heater and drain to adjacent exterior. - Maintenance: have qualified plumbing professional inspect water heater in the next year. 530 BROADWAY, FLOOR 3, NEW YORK, NY 10012 TEL 917'_ 621 .2016 FAX 21 2.608.6388 842 19th STREET, SANTA MONICA, CA. 90403 TEL:310.285. 5199 FAX: 310.496. 1234 studios Electrical System: 1. Panels & Service: The main panel is an older fuse type box. Other electrical sub - panels glass fuse type. This is an older system and presents a safety concern. - Recommendation: replace existing out -dated main panel and sub - panels in the next year. - Maintenance: once installed, maintain periodic visual inspection 2. Grounding: No grounding system or components are apparent. - Recommendation: Install grounding system at time of main /sub -panel upgrade. - Maintenance: once installed, maintain periodic visual inspection 3. Wiring: The existing wiring consists of mostly cloth covered wiring and some of the wiring is NOT in conduit and is known as 'knob and tube' wiring. This is an outdated wiring system and cannot be grounded. Also, there are some wiring connections that are NOT made with junction boxes, which is a safety /fire hazard. - Recommendation: Replace 'knob and tube' and sub - standard wiring conditions throughout in the next year, or at time of main panel replacement. - Maintenance: once installed, maintain periodic visual inspection 4. Outlets: Many outlets are not grounded. Some outlets have reverse polarity, and there are no Ground Fault Circuit Interrupter outlets where required by code. - Recommendation: Replace all non - grounded outlets and repair all reverse polarity outlets at time of wire replacement (see above). Add GFCI outlets after wiring retrofit. - Maintenance: once installed, maintain periodic visual inspection 5. Smoke Alarms: Existing smoke alarms are chirping, indicating weak or expired battery. There are no carbon monoxide alarms. - Recommendation: Add batteries to existing smoke alarms and provide new alarms where required by code. Provide carbon monoxide alarms in the next one to two - years. - Maintenance: Batteries on alarms should be replaced yearly, and units themselves should be tested every six - months. Heating & Cooling System: 1. Heating System: There is an existing gas- fired, forced -air heating system in the laundry room area. This unit is exposed in the room and takes some air from the outside as return -air. This unit appears to have out -lived its intended lifespan, though still functioning. Also, return -air filters are in need of replacement. - Recommendation: replace existing heating unit with new in the next one to two years. Replace return -air filters with new filters. - Maintenance: Once replaced, have new unit inspected and serviced within two years by qualified technician. Continue to replace air filters are suggested by manufacturer. 630 BROADWAY, FLOOR 3, NEW YORK, NY 10012 TEL 917.621.2016 FAX 21 2.608.6388 842 19t° STREET, SANTA MONICA, CA 90403 TEL:310.285.5199 FAX :310. 49 6. 1234 studios 2. Ductwork: The insulation currently on the ductwork is the type of material that is often found to contain asbestos. - Recommendation: Duct insulation should be examined by a qualified technician familiar with asbestos products. If determined to have asbestos, ductwork insulation should be removed. Ductwork itself needs to be tested for leakage and performance by a qualified HVAC contractor in the next year. Repair or replacement of ductwork shall be as suggested by HVAC contractor. - Maintenance: periodic visual inspection of ductwork shall continue to occur. Every two to five years ductwork should be tested for leakage. End of Report. — . Agi Gabriel L. Sa doval C -31457 530 BROADWAY, FLOOR 3, NEW YORK, NY 10012 TEL 917.621.2016 FAX: 21 2.608.6388 842 19th STREET, SANTA MONICA, CA 90403 TEL :310,285.5199 FAX . 310.496.1234 _Ji, Item ;#4 1 a ('"� �, '��.`i" =air x . - � � `�� :: s� _ ��,..,. � �� '� ,,., � r� ,_ sad; � '�^>q _ � "*3 �,x, �'x d�'� v {a ,, r y >y �� x � /� Item ##8 _. ;.. "�^� �_,. t ��,� � � ~mom �r ;�ti, � ' �xvc+� r. }g„"� �' r `A AdP/ .�� __ yii �* ry M� ! d{' I {h4 � �}� � �.� i I a � � ��z � xFW. g �F, x h i�� 3i � r "�7 1: 3 �r� r � 5.,� �3� �� 4;M � � ' „a yP �.,� l .. <lV) �.' ESTIMATE FINANCIAL ANALYSIS FOR MILLS ACT CONTRACT ** 1063 26th Street REVENUES Current 1) Est. Monthly Rental Income $3,500 l(estimate only * *) 2) Annual Rental Income $42,000 ANNUALEXPENSES $5 Gen. Expenses: 25% SFD, Others 30% $10,500 Vacancy loss 3% $1,260 8) Total Expenses $11,760 NET OPERATING INCOME (NOI) $30,240 (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) Current Tax 14) Mills Act Assessment $246,857 (NOII Line 13) 15) Tax Under Mills Act $2,555 (Line 14 X.01035146) 16) Current Tax $12,421': 17) Tax Savings (Line 16 - Line 15) $9,866 18) Annual Costs to City (Line 17 X 16 %) $1,579 * *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 2504 3`d 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. 14 Recording Requested By: Contract No 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 HISTORIC PROPERTY PRESERVATION AGREEMENT (CCS) THIS AGREEMENT is made and entered in to this 25`h day of October, 2011 by and between the City of Santa Monica, a municipal corporation (hereinafter referred to as the "City ") and Louis F. D'Elia IV Trust (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 2504 3`d 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 25, 2011 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 2504 3`d 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, 2012 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 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. 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: Louis F. D'Elia IV Trust Louis F. D'Elia 2504 3`d 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. 4 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. APPROVED AS TO FORM: CITY OF SANTA MONICA A Municipal Corporation, By: ROD GOULD City Manager OWNER: By: MARSHA JONES MOUTRIE LOUIS F. D'ELIA IV TRUST LOUIS F. D'ELIA City Attorney ATTEST: MARIA STEWART City Clerk 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: 2504 3` Street Number of Pages: 5 plus Exhibits A, B, and C 6 STATE OF CALIFORNIA ) ) ss. COUNTY OF LOS ANGELES ) On personally appeared me, 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: 2504 3rd Street Number of Pages: 5, plus Exhibits A. B, and C VA 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 Agreement Property location: 2504 3` 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 1 BLOCK M OF VAWTER'S OCEAN VIEW TRACT, IN THE CITY OF SANTA MONICA, IN'THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 9, PAGES 1 AND 2 OF MISCELLANEOUS RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, EXCEPT THE SOUTHWESTERLY 45 FEET OF SAID LOT. 9 NN:n d"; 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 h►:cn3r��ll HISTORIC PROPERTY PRESERVATION AGREEMENT PROPOSED HOME IMPROVEMENTS The following projects shall be completed by the property owner of 2504 3rd Street over the initial ten (10) year term of the contract. Item Year 1 2013 -2015 2 2012 -2014 3 2012 -2014 4 2014 -2016 5 2017 -2021 6 2014 -2016 7 2012 -2013 8 2012 -2013 9 2012 -2013 10 2017 -2021 11 2012 -2013 12 2012 13 2012 14 2017 -2021 15 2012 16 2012 -2014 17 2014 -2017 18 2012 -2014 Task Maintenance Tasks Reinsulate attic Repaint exterior of house Repair /patch driveway Upgrade electrical system Partial replumb of house Seismic bracing in basement, cripple walls Repair /replace non - historic railings at rear porch Repair wrought iron fencing /gate Replace wood fence Repair wood stair posts Replace two rear doors and screen door Rehabilitation /Restoration Tasks Repair /replace south facing window sashes Repair wood screens Repair /replace front porch wood Repair /replace damaged rafter tails Replace wood shingle siding on west/south elevations Repair /Replace wood shingles north /east elevations Repair attic vent * *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 Mike Salazar, ARCHITECT C20563 January 29, 2011 2504 3rd Street Santa Monica, CA 90405 2504 3rd Street: Mill Act - Architectural Report GENERAL DESCRIPTION Of PROPERTY This house at 2504 3rd Street was constructed in 1910 in the Craftsman tradition of the owner - builder who was Charles Warren Brown (also attributed as the architect), active in civic affairs and a City Council member. Based on the bungalow form, this Craftsman houses features strongly delineated porch columns, exposed purlins and rafters, distinct gable motif and a combination of cladding. 2504 3rd Street shows the fine workmanship and attention to detail characteristic of Craftsman builders and demonstrates many important features of the style. At the same time, the house has its own individual character, achieved by the "application of the Craftsman spirit" - a disposition to shape buildings in a direct, simple, yet inherently artistic manner. The structure is a long- established and familiar visual feature of its neighborhood, a potential Landmark - district, and makes a distinct contribution as an important architectural feature that serves as an excellent example of an intact Craftsman bungalow. Its substantial styling and integrity make it a valuable index to the idiom. This property has not experienced substantial alterations since it was built and subsequently designated as a local Landmark. As such, it is easily recognizable and offers an important contrast to the surrounding infill and other remaining Craftsman -style examples which have been more substantially altered. The house is sited at the corner of 3rd and Mills Streets, facing 3rd Street (east elevation) at the high end of a downward - sloping parcel that was subdivided to its current 50' wide frontage by 85' deep lot size, sometime in the late 1920s- 1930s. The existing curb cut on Mills Street (north elevation) beyond the rear of the house that provides access to the basement level and to a rear yard /asphalt paved area for parking of up to 5 vehicles. This rear yard area is completely enclosed on Mills Street and at the west property line by a 6- foot -high c. 1995 wrought iron fence with tarpolin screening, on the west property line by a 6- foot -high chain -;ink fence with tarpolin screening, and on the south with an 8- foot -high sectional wood fence with lattice above. The rear (west) elevation of the house is secondary in design and importance, with few details. The frontage yards (3rd Street & Mills Street elevations) of the house contain mostly new landscaping with an original concrete bulkhead wall along Mills Street and two perpendicular to house to retain earth. Recent additions are c. 1991 design- appropriate arroyo -stone pillars at strategic points, flanked by mostly newer water -wise succulent and drought tolerant painting, as well as two Pepper trees planted in 1991. There is a gated landscaped patio with original walkway at Mills Street, with a relocated vintage Bachelder fountain over new pond. The rear yard has minimal planting at inside of the wood fence and the chain -link fence. The south elevation mimics the Mills Street design and also retains original bulkhead walls perpendicular to elevation, retaining earth to transition from ground floor at front to basement level in rear, with c.1991 concrete infill /steps. This house is a Santa Monica City Landmark, is a contributor to the potential neighborhood Landmark District and is eligible for individual listing on the National Register of Historic Places. Page 1 of 5 rNPV Mike Salazar, ARCHITECT C20S63 January 29, 2011 2504 3rd Street Santa Monica, CA 90405 2504 3rd Street; Mill Act - Architectural Report CHARACTER- DEFINING FEATURES A focal point of the Craftsman design of 2504 3rd Street is the "slide gable roof," steep enough to fully encompass the upper floor on the street -side of this visually one - and -a -half story residence that is actually two full floors with a full basement, as the house sits on a rear - sloping parcel. Slightly bellcast, the roof has exposed rafter tails and extended eaves, accented by a pair of gabled dormers at the 3rd Street (front) elevation. The northern dormer pair of doors, encompassed by the substantial roof form, opens to a second -floor balcony with shingled bulkhead walls at sides and front stick railing. The southern dormer opens to a window box and extends in elevation the ground floor front wall, Square rafter beams extend beyond the roof fascia with chamferred tails, and enclosed rafter corbel brackets. Toward the rear, at both side elevations the roof visually retains a consistant slope bythe use of a roof skirt detail continuing the front roof slope, while a "shed- type" roof extends over most of the rear (west) elevation between the eyebrows, perforated by an oversized opposing dormer /gable form. Split cedar shingles cover the upper level elevations, while redwood clapboard siding covers the first floor, divided by a contiuous decorative banding as the upper level shingles "skirt" above the banding. All of the exterior is finished in paint. Equally characteristic of the Craftsman design is the front porch, appearing to be 'recessed' beneath the gable roof, but actually extended across most of the facade into the limited frontyard setback that characterizes the west side of 3rd Street. Square, grouped columns visually create a typical paired - column look at the porch. However, actually three columns exist turning the two porch corners and one pair exist only in the center grouping at the porch). Grouped columns with a shared rafter -tail "capital" and rest on thickly capped clapboard bullkheads of alternating height, define the porch area, with a tall pair of sliding, single pane windows at the Mills side of the porch to minimize wind impact (and maximizing porch enjoyment in all weather conditions). The porch ceiling is original stained tongue -and- grove narrow planks, with the original porch lantern. The floor is the original wide -slat douglas fir, also stained. The original front door of oak veneer contains a high single square lite of original beveled glass, the original brass door hardware also remains. In a somewhat uncharacteristically Craftsman nod to modernism of the time are two oversized ground floor windows - at the living room overlooking the front porch, and at the dining room overlooking the garden. The dining room window configuration is a tripartite "Chicago- style" window configuration at the front elevation, and a pair of contemporary (but period- appropriate) stained glass windows shield the south dining room view from the adjacent apartment structure. Double -hung sash windows are throughout the house. Many windows contain the original "wavy" glass, and some have replacement vintage "wavy" glass. All opening exterior windows have original wood -frame screens. An understated chimney near the northeast corner of the house replicates the original chimney, lost in the 1994 Northridge earthquake. It is "faced" with the original bricks. The original brick intoerio chimney remains, albeit the bricks have been sandblasted, removing grout from thejoints. The interior displays characteristic stained wood wainscotting topped with a plate rail in living room and dining room. Both rooms also have original boxed beams in ceiling. The dining room contains a large wood built -in breakfront cabinet with leaded mirror above the wood counter with upper glass doors and original glass knobs. Page 2 of 5 // _ Mike Salazar, ARCHITECT C20563 2504 3rd Street Santa Monica, CA 90405 2504 3rd Street: Mill Act - Architectural Report January 29, 2011 The two upstairs bedrooms retain their original light fixtures (central ceiling and wall sconces). Most other light, while added over the years, is vintage and period appropriate or are period reproductions. Wood floors throughout the main floor are thin -plank oak, and the original douglas fir sub -floor is exposed and stained in the kitchen /back porch. Stair treads and risers are also oak. The upstairs floors are original maple planks. EXTERIOR FINISHES The house is in generally excellent condition. However, upon closer examination there is considerable paint and patch wear on the west elevation facing the constant sun and wind from the ocean, as well as minor wear on the south elevation. Many of the milled -cedar shingles have begun to weather and slightly cup and may need to be replaced, mostly at the west and south elevations. A few have begun to loosen and have fallen out. Many shingles in these two elevations can be retained as replacement shingles as required for all of the elevations. The original clapboard siding that encloses the main floor and lower level appear to be in excellent condition, except in a few locations on the west elevation, requiring some repair or replalcement. All of the exterior paint of the house is showing signs of fatigue, and the west and south elevations may require immediate attention, as the wood screens, window sills and exterior trim at most openings facing the ocean show considerable paint wear. Several of the original window sash muntin at the west elevation show signs of moisture damage, and have deteriorated and may need part - replacement or whole replacement in the near future. All double - hung windows continue to operate (albeit some quite noisily) on the original cord /pulley weights within the frames, and some 'tuning up' may be necessary in the future as well. Brick finish is excellen on the replacement chimney, and concrete footing all appear undamaged. The existing downspouts and gutters all appear to be functioning well and intact. However, at the high point on the west elevation, some repair or replacement of a small sections may be necessary in the near future. The rear porch railing and stair railings are deteriorating due to mositure /exposure and will need to be replaced right away. RECOMMENDATIONS: - Replace or repair damaged ends of rafters from dryrot. - Repair all damaged wood screens - Within the next 2 -5 years, replace exterior shingles at west & south elevations and repair or replace a small amount of clapboard siding. - Install insulation within wall cavities at this time, as no wall insulation exists today. - Replace all railing at (non- original) rear porch and stairs. - Paint house. Page 3 of 5 F Mike Salazar, ARCHITECT C20563 2504 3rd Street Santa Monica, CA 90405 2504 3rd Street: Mill Act - Architectural Report Repair attic vent. Repair rain gutters as needed.- INTERIOR FINISHES January 29, 2011 Most of the interior remains in relative original condition. Extensive stained douglas fir wood trim/ casing & doors throughout the house, wood wainscotting throughout the ground floor and original ceiling box beams in the living and dining rooms all retain a high level of original finish, showing only minor wear at some raised edges or corners. Original stucco finish walls appear to be relatively intact and free of blemishes and cracks. The wood staircase and railing appear in very good condition, with only minor deterioration at newall post caps. All wood finishes remain in excellent condition, with only minor touch -up needed at some corners and raised edges. The wood flooring - oak at ground floor, maple at second floor - appear in fair /good condition, with some repairs required. The fireplace has been sandblasted, during the reconstruction. The kitchen has been improved on throughout the life of the house, including electrical and minor plumbing upgrades, most recently in the 1990s and is in overall good condition. The original back porch remains utilitarian, although a small bathroom was added sometime in the 1970s. This bathroom, and the bathroom upstairs are in good working order but still utilize the original plumbing. RECOMMENDATIONS: - Repair or replace window sash muntins as needed. - Fill, repair or replace small sections of damaged wood floor. - Repair and refinish stair post caps. - Touch -up wood trim in some areas as needed. ELECTRICAL, PLUMBING AND HEATING SYSTEMS The original electrical wiring is knob and tube and remains throughout the house, although some areas (basement, kitchen, bathrooms) do have modern circuit breakers, albeit from various eras. The knob and tube electrical is intact and working well. There is a.modern circuit breaker panel for the house and is in fair /good condition. The existing plumbing largely remains (except newer at added ground floor bathroom and basement feeder lines). The main line out to City sewer is in good condition and is regualry inspected. The plumbing shows evidence of reworking, and is in fair /good condition, with generally good water pressure. However, a recently installed large on- demand water heater fails to deliver hot water in a timely manner to most of the house. The original gravity heater in the basement has been upgraded over the years with an electric thermostat, and is in good working order. There is no air conditioning system in the house. Page 4 of l� � Mike Salazar, ARCHITECT C20563 2504 3rd Street Santa Monica, CA 90405 2504 3rd Street: Mill Act - Architectural Report RECOMMENDATIONS: - Remove original knob and tube electrical line and replace with new electrical. - Consolidate and /or eliminate surface conduit /boxes on exterior of house. - Install additional on- demand water heater to provide hot water throughout house. - Clean existing gravity heater vents and burners as needed. January 29, 2011 LANDSCAPING /GROUNDS . While no original landscaping reamins, the current planting scheme form 1989 is presently being replace in most areas with drought resistant /water wise plants. However, existing sprinkler system remains in working order, but is not used often. Due to the close proximity of the house to the streets (on two sides), the landscaping creates a necessary buffer from the sidewalk The primary focus of the yard is to 3rd Street and Mills Street. Two pepper trees are well maintained in the front and side yard. The rear yard consists mostly of asphalt paving, and shows signs of wear (cracks, deterioration of edge). There is a small garden entrance at Mills Street, with a contemporary fountain with Bachelder tile water spout. The rear yard is enclosed with wrought iron fencing that shows signs of deterioration and loss of paint. The tarpolin covering this fencing (inside) is showing signs of deterioration as well. The wood fencing on south elevation also shows separation at top plate from fence rails, and general wood deterioration. RECOMMENDATIONS: - Existing wrought iron fence at Mills Street requires maintenance and painting. Screen material may need to be replaced or replace with more appropriate design wood slats. - Existing wood fence requires extensive repair or possible replacement (south property line). - Repair asphalt driveway /parking area or replace with pervious material to promote containment of run -off and reduction ofhardscape. - Replace gate motor with sensor - activated safety motor. - Rework motion sensor /security lighting system to better reflect character of house and neighborhood when electric work is performed. Page 5 of 5 t t 4b i 'd 7wMT r � re t i 11 ovr � � a d 4 M�� Yx'i•'Ta� t:3��R'S'Ya 'R s +o5�y € S as p am s+t > min u � wQ c3o M M KNUMUOM MOM MAR MM w oam o oom pvp vfl�D VISUALLY, COLUMNS APPEAR AS PAIRED IN ELEVATION. CORNER GROUPINGS ARE THREE COLUMNS. SLIDING TALL PAIR OF WINDOWS jSIDE OF PORCHj. 'M al3gllWM$ n lot 93011 AT YEtT TO -1 E R gi R E I ff ola ESTIMATE FINANCIAL ANALYSIS FOR MILLS ACT CONTRACT* 2504 3rd Street REVENUES Current 1) Est. Monthly Rental Income $3,500 (estimate only ) 2) Annual Rental Income $42,000 ANNUALEXPENSES Gen. Expenses: 25% SFD, Others 30% $10,500 Vacancyloss 3% $1,260 8) Total Expenses $11,760 NET OPERATING INCOME (NOI) $30,240 (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) Current Tax rr-Affiw 14) Mills Act Assessment $246,857 (NOI/ Line 13) 15) Tax Under Mills Act $2,555 (Line 14 X .01035146) 16) Current Tax $1,217 17) Tax Savings (Line 16 - Line 15) ($1,339) 18) Annual Costs to City (Line 17 X 16 %) ($214) * *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 1501-15154 Ih 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. fib ". Recording Requested By: 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 25th day of October, 2011 by and between the City of Santa Monica, a municipal corporation (hereinafter referred to as the "City ") and Cordelia B. Grischow Trust (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 1501 -1515 4th 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 June 8, 2009, 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 25, 2011 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 1501 -1515 4th Street; and 1 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, 2012 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 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. 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: Cordelia B. Grischow Trust Jerome P. Fleischman, Trustee 15054 th Street, Suite 219 Santa Monica, CA 90401 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. 11 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 Propert v. 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. APPROVED AS TO FORM: ��_: •► u• City Attorney ATTEST: MARIA STEWART City Clerk 5 CITY OF SANTA MONICA A Municipal Corporation, By: ROD GOULD City Manager OWNER: By: JEROME P. FLEISCHMAN 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: 1501 -1515 4'n Street Number of Pages: 5 plus Exhibits A, B, and C 6 STATE OF CALIFORNIA COUNTY OF LOS ANGELES M1 personally appeared ss. before me, 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: 1501-15154... Street Number of Pages: 5, plus Exhibits A, B, and C 7 STATE OF CALIFORNIA ) ) ss. COUNTY OF LOS ANGELES ) Ce , 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 Agreement Property location: 1501 -1515 4,n Street Number of Pages: 5, plus Exhibits A, B, and C E EXHIBIT "A" LEGAL DESCRIPTION In the City of Santa Monica, County. of Los Angeles, State of California: TOWN OF SANTA MONICA LOT V AND LOT COMMENCING AT MOST WEST CORNER OF LOT X, BLOCK 195 THEN NORTH 45 DEGREES 15 MINUTES EAST, 60.52 FEET THEN SOUTH 44 DEGREES 31 MINUTES 31 SECONDS EAST, 46.56 FEET THEN SOUTH 45 DEGREES 15 MINUTES WEST, 0.77 FEET THEN SOUTH 44 DEGREES 44 MINUTES 30 SECONDS EAST TO SOUTHEAST OMITTED PORTION IN ASSESSORS MAP BOOK, AND LOT W, BLOCK 195. 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 1 .1;11. - 31111110 Y HISTORIC PROPERTY PRESERVATION AGREEMENT PROPOSED HOME IMPROVEMENTS The following projects shall be completed by the property owner of 1501 -1515 4th Street Street over the initial ten (10) year term of the contract. Item Year Task Maintenance Tasks 1 2011 -2021 Upper level window washing 2 2011 -2021 Repair/replace canvas awning as needed 3 2011 -2021 Repaint fiberglass filigree and building ornamentation as needed 4 2011 -2021 Refurbish storefronts and tiles when needed 5 2011 -2021 Repaint building exterior/touch-up as needed 6 2011 -2021 Inspect/repair roof as required 7 2011 -2021 Inspect/clean roof scuppers and drains * *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.** I1 art ARCHITEO RE :studi 4217 Admiralty Way #311, Marina del Rey, CA 90292 310 578 -8222 The Bay Builder's Exchange 1503 to 1515 4th Street APN 4291 - 025 -032 Santa Monica, California Architectural Report of Existing Historic Landmark Identifying the Status & Condition of Character - defining Features of.the Building & Site Prepared by: aARts Architects William Dale Brantley, Architect California Architectural License C 08660 July 2011 Architect's Report Mills Act Application for 1503 —1515 4�' Street, Santa Monica, CA BACKGROUND INFORMATION AND DESCRIPTION The subject property, the Bay Builder's Exchange Building, is located on the southeast corner of 411, Street and Broadway. The two- and three -story brick masonry commercial building is located in Santa Monica's Central Business District. The property is approximately 110 feet by 150 feet. The Bay Builder's Exchange Building has an L- shaped footprint and occupies roughly half of Lot X and the entire Lot W. The property has been identified several times in the city's ongoing survey of potential historic properties and recommended eligible for the National Register as a contributor to the "Third Street District" with an NRHP status code of 5'/D5. As a result of the 1994 Northridge earthquake, there was substantial damage to the entire building that affected the integrity, and the status code changed from 5 " /5D to 5B1. The 1994 City of Santa Monica Historic Resources Update noted the building was undergoing repairs to the structure, terra cotta, and stucco finish. After the seismic repairs and fagade restoration were completed in 1995, the building remained an eligible local landmark and a contributor to the Central Business District, and was so designated on June 8, 2009. Constructed in 1927, the commercial Bay Builder's Exchange Building is designed in the Churriguerresque style. The L- shaped building is comprised of a three -story corner wing at the intersection of Broadway and 4th Street, and a two -story wing fronting 4th Street. The Bay Builder's Exchange was constructed with brick masonry, veneered with stucco and embellished with decorative art stone. The building has a flat roof and the principal facades have tapered mission tiles along the raised parapet. The north and west elevations retain the original eight - light metal casement windows topped by four -light transoms. The window bays are divided by upwardly - projecting pilasters with stylized capitals that terminate below the roofline; and decorative Churrigueresque style cast stone spandrels are located between the pilasters, above and below the window openings, and on the parapet. The Street level storefronts are framed by decorative cast -iron grillework which were recreated during the post Northridge earthquake restoration. The original storefront windows have been replaced with plate glass, but the cast -iron storefronts have been retained and "in- kind" window replacements are compatible in design with the overall architectural character of the building and retain the black -tiled storefront base. The rear (east) elevation has a loading dock with a roll -up door and two windows enclosed with brick on the rear faqade. The primary (west) elevation of the two -story wing facing 4th Street has casement windows above with a square decorative art stone spandrel flanked by pilasters Architect's Report Mills Act Application for 1503 — 1515 4�h Street, Santa Monica, CA that terminate below the roof line. The main entrance is recessed beneath a highly ornamented stone cast arch that features putt! and carp in the design in addition to continuing the vegetal motifs employed in the decorative panels. The three -story corner wing has paired casement windows on the second and third floors of the north elevation and single casement windows on the west elevation. A decorative Churrigueresque style cast stone frieze runs around the top of the three -story corner building. CONSTRUCTION HISTORY AND ALTERATIONS There are several building permits recorded with the City of Santa Monica for the Bay Builder's Exchange. On June 16, 1927 the contractor, Albert M Eaton, filed for a building permit (BPNo. 154) to construct a two- and three -story building for the addresses of 402 -4 -6 Broadway and 1503 -5 -7 -9 4th Street. Originally, the 60 foot by 100 foot building was planned to cost $40,000 to erect. Five months later, on November 8, 1927, another new building permit (BPNo. 637) to construct a two -story 50 foot x 149 foot building for the addresses 1511 -13 -15 4th Street. Both building permits listed Arthur P. Creel as the owner and Eugene Durfee as the architect. After the buildings were constructed, the subsequent building permits on file involve interior modifications, including in the '50's at 1515 4th Street the lessee, Rand Corporation, installed partitions, stairs between the two floors, and closed off the top stairway from the rest of the second floor. The Bay Builder's Exchange underwent seismic rehabilitation following the 1994 Northridge earthquake (BPNo. EOR1424). Repairs included reconstruction of the northwest corner and roof parapet, seismic retrofit throughout, infill of wall cracks, and repair of art stone, and were completed in September 1995. ARCHITECTURAL SIGNIFICANCE The Bay Builder's Exchange Building is an excellent example of the Spanish Colonial Revival style, specifically the Churrigueresque style, as interpreted for commercial buildings of the period in Santa Monica. The beginnings of this style date to 1915 when it was introduced at the Panama - California Exposition in San Diego. The period revival styles grew in popularity just after World War I. The most common style in the southwest was the Spanish Colonial Revival. Architect Bertram Grosvenor Goodhue's comprehensive set of Spanish Colonial Revival structures for the Panama - California Exposition catalyzed a region -wide building trend whose Spanish and Moorish influences incorporated and even supplanted the previously popular Mission Revival style. The style helped perpetuate powerful myths about California's origins tied to New Spain. Decorative elements that were appropriated from indigenous American cultures (Native American, Mayan, Aztec) were sometimes incorporated into these Architect's Report Mills Act Application for 1503 —1515 4P Street, Santa Monica, CA eclectic designs to infuse exoticism, along with a certain brand of perceived cultural authenticity. The Spanish Colonial Revival style and its variants were widely used throughout southern California for both commercial and residential properties. The unique features of this style are ornate low- relief carvings highlighting arches, columns, window surrounds, cornices, and parapets. Other features that characterize the style include stuccoed exterior walls; low pitched, multi -level the roofs; arched shaped window and door openings; iron railings and window grilles. The facades of large buildings often are enriched with curvilinear and decorated parapets, cornice window heads, and symbolic bell tower. Distinctive, more elaborate signatory elements, such as low- relief carvings, corbelled balconies, decorative vents, chimney tops, and /or towers, are characteristics of the Churrigueresque style. Several notable Churrigueresque -style buildings were constructed in Santa Monica including the Bay Builder's Exchange, the Mayfair Theatre (212 -216 Santa Monica Blvd.), 1530 Wilshire Blvd., and 310 -312 Wilshire Blvd, The 4th Street commercial district developed during the 1920's and was an expression of the popular architecture of the era including Art Deco and Churrigueresque. A number of these commercial buildings located in the 1400 and 1500 blocks of 4th Street are an expression of the eclectic mix of commercial architecture popular in the 1920's and the commercial development pattern of Santa Monica. The Bay Builder's Exchange was constructed towards the end of the City's building boom and was intended to be a one -stop center for the construction industry, occupying the upper floors, with retail at street level. Early tenants included notable constructors, designers and architects; also cartoonist Elzie Seeger who created the "Popeye" characters in his third -story studio. Directly below, Ray E. Schafer's Music Salon occupied the prominent corner, where the Santa Monica Evening Outlook stated the new music salon "forms a lavish setting for fine musical instruments, piano, radios and Brunswich phonographs. It will be one of the finest music shops in southern California." The Great Depression halted the building boom and the '30's shows a shift of occupants from construction to other business. The architect of the Bay Builder's Exchange, Morien Eugene Durfee, was a significant Southern California architect during the 1920's, after relocating from the Pacific Northwest in 1914. He also designed the Santa Monica landmark Georgian Hotel (Windemere Hotel), 1415 Ocean Avenue, and the Central Tower Building at 14244th Street. He was highly skilled in the regional interpretation of the popular styles of the period, including Art Deco, and Spanish Colonial Revival Churrigueresque, as demonstrated in the detailing in the Bay Builder's Exchange Building. Architect's Report Mills Act Application for 1503 -1515 4" Street, Santa Monica, CA CHARACTER DEFINING FEATURES The Bay Builder's Exchange is an outstanding example of the Churrigueresque style and has high integrity, The subject property displays the distinguishing features of the style in its architectural design and composition: stuccoed walls, red clay the roof highlights, and arched shaped window and door openings. The building features elaborate signatory elements such as stylized pilaster, low- relief cast stone decorative spandrels, and ornamental iron work characteristic of the Churrigueresque style, In sum, the subject property is an excellent representative example of a regional interpretation of the Spanish Colonial Revival style as applied to a commercial building. It is a distinctive local example of the Churrigueresque architectural style, and is one of a few existing Churrigueresque buildings in Santa Monica; a representative of a style in the city that is no longer prevalent. As it stands today, the Bay Builder's Exchange Building has high integrity for a late 1920's three and two story masonry commercial building, exhibiting excellent quality Churrigueresque ornamentation including the decorative cast stone spandrels, arched entry and cornice, decorative grillework, as well as cast iron storefronts. CURRENT STATUS AND PROPOSED MAINTENANCE After thorough repairs, seismic retrofit, and restoration to its original 1927 appearance of the exterior and interior of the Bay Builder's Exchange, following the damage caused by the 1994 Northridge earthquake, the building has been well maintained and maintenanced since. The following maintenance program is substantially continuing the program established after restoration. Continuing this program as outlined, with of course careful attention to any unforeseen issues that may arise in the meantime, should keep this historic structure in excellent condition for many more years. Architect's Report Mills Act Application for 1603 —1515 0 Street, Santa Monica, CA Bay Builders Exchange Building, circa 2010, northwest elevation, looking southeast Bay Builder's Exchange Building, circa 1927, northwest elevation, looking southeast. Architect's Report Mills Act Application for 1503 —1515 4'h Street, Santa Monica, CA Bay Builder's Exchange, circa 2010, north elevation, looking south Bay Builder's Exchange Building, Ray Schafer's Shop, circa 1927, northwest corner Architect's Report Mills Act Application for 1503 - 1615 4!" Street, Santa Monica, CA Primary entrance, west elevation on 4th Street, looking east Detail, west elevation, looking east Primary entrance detail, west elevation, above Architect's Report Mills Act Application for 1503 -1515 4" Street, Santa Monica, CA Primary west two story elevation, circa 2010, facing 4th street, looking east 2 South elevation (side yard), East elevation (alley) looking northwest looking northeast Architect's Report Mills Act Application for 1503 —1515 4`h Street, Santa Monica, CA ESTIMATE FINANCIAL ANALYSIS FOR MILLS ACT CONTRACT" 1501 -1515 4th Street REVENUES 1) Est. Monthly Rental Income 2) Annual Rental Income Current $43,414 (estimate only * *) $520,968 ANNUALEXPENSES Gen. Expenses: 25% SFD, Others 30% $156,290 Vacancy loss 3% $15,629 8) Total Expenses $171,919 NET OPERATING INCOME (NOI) $349,049 (Line 2 Minus 8) 9) Interest Component 6.75% 10) Historic Property Risk 4% 15) (2 %, or 4% for SFD) $29,495 11) Property Tax Component I% 12) Amortization Component 0.5% 13) Capitalization Rate 12% (Sum Line 9 - 12) $59,451 14) Mills Act Assessment $2,849,376 (NOI/ Line 13) 15) Tax Under Mills Act $29,495 (Line 14 X.01035146) 16) Current Tax $88,946 17) Tax Savings (Line 16 - Line 15) $59,451 18) Annual Costs to City (Line 17 X 16 %) $9,512 "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 D 2616-26183 d 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. iR Recording Requested By: 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 25`h day of October, 2011 by and between the City of Santa Monica, a municipal corporation (hereinafter referred to as the "City ") and Alessandra Montagna Revocable Living Trust (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 2616 -2618 3rd 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 24, 1990, the Landmarks Commission of the City of Santa Monica designated the Historic Property as a Contributing Structure to the Third Street Neighborhood Historic District pursuant to the terms and provisions of Santa Monica Municipal Code Chapter 9.36; and, D. On October 25, 2011 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 2616 -2618 3`d Street; and 1 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, 2012 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 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. 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: Alessandra Montagna Revocable Living Trust Alessandra Montagna, Trustee 2618 3'd 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. 4 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. APPROVED AS TO FORM: CITY OF SANTA MONICA A Municipal Corporation, By: ROD GOULD City Manager OWNER: By: MARSHA JONES MOUTRIE ALESSANDRA MONTAGNA City Attorney ATTEST: MARIA STEWART City Clerk 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. !�9 Description of Instrument WITNESS my hand and official seal. Notary Public in and for said State Title: Historic Property Preservation Agreement Property location: 2616 -2618 3` Street Number of Pages: 5, plus Exhibits A, B, and C 6 STATE OF CALIFORNIA COUNTY OF LOS ANGELES On personally appeared ss. before me, 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: 2616 -2618 V 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 Agreement Property location: 2616 -2 Street Number of Pages: 5, plus Exhibits A, B, and C 8 EXHIBIT "A" gXCUIR AD�Y4IC1Ii915*10 In the City of Santa Monica, County of Los Angeles, State of California: Lot 4, 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, Pages 1 and 2 of Miscellaneous Records, in the Office of the County Recorder of said County. 1WAMI71�1111% HISTORIC PROPERTY PRESERVATION AGREEMENT PROPERTY MAINTENANCE N I W L 67 �9 _\ 01W _\ A r i P►1 9 7_ 1 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 2616 -2618 3rd Street over the initial ten (10) year term of the contract. Item Year Task 1 2012 Repair of Porch attic unit 2 2012 Termite Abatement 3 2012 Repaint exterior of house 4 2012 Rehabilitate "garden level" unit interior 5 2012 Replace exterior doors 6 2013 Repair/replace side stair, deck and lower refuge deck area 7 2015 Replace /upgrade heating unit 8 2016 Rebuild fireplace chimney and firebox 9 2017 Repair /replace existing wood and aluminum slider windows with wood windows 10 2017 Repair concrete flatwork 11 2018 Redo landscaping 12 2019 Repair /rehabilitate existing garage 13 2019 Upgrade electricals stem 14 2021 Replace roof "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 Architectural/Historic Report on Georgia Post Hill Resident 2616 -18 Third Street, Santa Monica, CA 90405 Scope of Report: The intent of this report is to generally the condition of the exis Historical Description: The Georgia Post Hill Residence is a contributing structure for the Third Street Neighborhood Historic District Built in 1909 -10, by an unknown contractor, the house was possibly started as a spec house for local real estate investor George M. Sharp. Sharp then sold the property to Georgia Post Hill who it appears completed the house. Hill was the first person to live in the house and it has been named after her for that reason. Originally built as a single family house, the residence was converted to three flats around the time that she sold it to Harvey L. McConnell in 1919. The flats consist of the main floor, and attic unit, accessed by an exterior staircase at the front of the structure and a basement unit, known as the "Garden Flat" as it is accessed through the rear garden on the rearward sloped lot. The garden flat presently serves as the owner's home. The triplex was sold to Abraham and Minnie Tuchin on July 8, 1948 and then transferred to George Bernstein on August 29, 1952. On May 20, 1965 it was acquired by William H. Temkin, Jr. and Ronald A. Yates. Temkin and Yates filed an application to demolish the building on April 9, 1979. That permit was not issued and the again applied to demolish the triplex and replace it with a 4 -unit condominium project on November 21, 1989. The Third Street Neighborhood Historic District was established in 1991, listing the Georgia Post Hill Residence as a contributing structure. The subsequent Environmental Impact Report for the project determined it would result in an irreversible negative impact to the district and the application was denied. 1 Georgia Post Hill Residence Report, continued: The owners then applied to make changes, including enlarging upstairs dormers. That was also denied and they finally settled with remodeling the interior of the attic unit, redoing a front balcony and replacing the front stairs with a more appropriate looking design. On April 10, 2000, the property was sold to Alessandra Montagna, the current owner. It was subsequently placed into a trust and a new grand deed was recorded on June 28, 2011 to correct the legal description. There are some discrepancies on the historic documents that have been previously fled on the structure. The original data for the historic district refers to it as the "George M. Sharp House ". As noted earlier the house was a spec project for Mr. Sharp, who lived elsewhere in Santa Monica. Georgia Post Hill was the first owner to actually live in the house and the only one to be there when it was a single family dwelling. A Historic Resources Inventory form that was created for the property appears to have a number of errors. The exterior description is definitely for the subject house but it states that a second dwelling was located to the rear. Only an original single wall construction garage is to the rear of the house. It also appears that the significance statement may be that for another house: "This property contributes to the historic character of the Third Street Neighborhood Historic District and is potentially notable on an individual basis for its historical associations. In 1967 and 1968, according to the historic district application, it was `the center for the draft resistance movement in Southern California. Many of the political activist of the day, including Bill Garraway, David Harris, Tom Hayden, Timothy Leary and others visited the house and planned strategy there. Draft resisters used it as a sanctuary.' Its later notoriety notwithstanding, the house had an innocuous beginning. Building permit records indicate that it was built for A. Lawrence (perhaps the Amanda Lawrence who was associated with 2625 3`d) in 1909. The five room dwelling cost an estimated $1,350." A quick check of the original district application revealed nothing of the previous paragraph especially for the description of the subject house. The original cost of the house, based on county assessor's records, was $2,150.00 PJ Georgia Post Hill Residence Report, continued: and the assessed value shows an increase in 1920, which is believed to be the time that it was converted to flats. The earliest permit found at the city was one issued on August 28, 1938 for a roof repair. The original permit was not on file, but the record for the district shows that it was built be A. Wilmot. This may have been obtained through the Builder and Contractor. Architectural description: The house sits on a 50' X 130' lot which gently sloped downward from street level to the rear of the property. This slope allows easy access to the "garden flat" unit in the basement. A driveway leads along the Southeast side of the lot to a one -story frame two -car garage situated toward the rear of the lot. The word "Hill" is cast in the concrete at the head if the driveway on the left side of the entry. The numbers "1910" are cast on the right of the entry. These casting refer to the home's first owner- occupant, Georgia Post Hill, and that it was probably completed in the year 1910. The garage walls are the single wall "board n Batten" construction with a flat roof sloping to the rear. The rear wall is covered with corrugated steel. The present roof is also corrugated steel, but there is visible damage from weathering on the interior indicating this covering (as well as that on the rear wall) are later alterations. The original roof was most likely rolled composition. The garage appears to be an original structure, concurrent with the house, but will need a new roof and general repairs to its structure. It is not presently on a foundation or slab and the mudsills have begun to sink below the slab which was poured on the interior of the structure. A new slab that extends to the exterior edge of the structure or a perimeter foundation will be required to correct this situation. A rectangular pergola is also located in the rear yard. Supported by six fluted Doric columns, this pergola is probably a later addition to the property and may have been constructed with some used building parts, such as the columns. It will require general maintenance, painting and cosmetic repairs The main house has elements of both Craftsman and Colonial Revival styles. The main cable of the house is front to rear with a smaller forward gable featuring an enclosed pediment emanating from the center of the main gable. 3 Georgia Post Hill Residence Report, continued: A secondary transverse gable forms the roof of two large dormers on the North and South sides of the house. A tall brick chimney had previously been located on the North fagade, just front of the transverse gable, but it was lost in the 1994 Northridge Earthquake. The current owner desires to rebuild the chimney using modern materials and brick facing. The original mantle still exists within the main flat. Records also indicate a second red brick chimney was located in ridge of the main gable. No remnant of that chimney remains and it was probably removed when the attic unit was remodeled and the roof was redone in the early 1990s. The house is covered with wide clapboard siding with the exception of the front pediment, which has irregular rectangular shingles. The open eaves have plain bargeboards on the gable ends and flush eaves. (The roof has been reworked to eliminate any traces of the former chimney). The smaller interlocking front gable has a vertical slatted attic vent at its center and a small roof slope at the pediment base. The roof consists of composition shingles. The dormers have enclosed box eaves on their sides. Windows are mostly casements with some double hung on the side facades. However there are also a number of replacement windows of both louver and three aluminum single hung windows in the rear gable pediment. The rear fagade has a square sun room type addition which is used as the utility room for the main flat and an open balcony to the left. There is also a balcony for the attic unit to the South side of the front fagade with a tall lattice style railing, which is a later alteration. The front porch covering is supported by two simple square wooden posts with an extending cross beam at the front and flat 2" X 4" eaves covered by a simple flat wooden board roof topped with rolled composition which also appears to be an alteration over the pergola -style porch. The concrete porch itself is an original feature. The other major front fagade change is the addition of a staircase to the right of the main entry to serve the attic unit. The door to the main flat is presently what appears to be multi paneled a "Home Depot" type design with a half moon arched window near the top. That flat is also served by a second door enclosed behind a tall lattice fence and stairs located in a bay on the South fagade. This door appears to have replaced a window in the bay. The lattice covering and a second "Home in Georgia Post Hill Residence Report, continued: Depot" style door were added sometime after the house was photo documented in 1991. The attic flat is entered at the top of the front stairs through a plain wooden door. The garden flat is entered at the rear of the house through a single multi -light full muntined door. Earlier records indicate that the original front door was more like the one to the garden flat. The main flat at 2618A 3rd Street is the most intact of the interiors with dark hardwood floors original baseboards, coved crown moldings and matching interior door and window framing. One dining room doorway has a later "classical" type frame. The entry long hall appears also to be an alteration. Scars on the exterior wall indicate that the front door has been relocated approximately six feet to the North of its original location. The kitchen has been remodeled and the bathrooms appear to retain at least some of there original features. The mantle is sealed off as the chimney has been removed. The garden flat at 2618B 3rd Street is located in the basement of the home with a small patio to the left of the rear entry, which comes in through the kitchen. The patio is reached also by a set of French doors from the living room. An interior staircase that once went to the main flat has been closed off for years. The original design of the interior includes hardwood floors, a pocket door between the living and dining room and some built -in cabinetry. The detailing is consistent with that in the main flat, indicating that the basement may have been part of the living area when the house was a single family residence prior to 1920. This also indicates that the entrance door to the garden flat, which may be the only remaining original exterior door, was the rear entrance to the house before the alterations. The attic flat at 2616 3rd Street is the most altered having been remodeled in the early 1990s. There is no remaining trim and the white interior walls have more of the appearance of a late 20d' Century apartment with completely remodeled kitchen and bathroom. The cathedral ceilings follow the roofline of the house, with modern track lighting. A wooden stair railing where the entry- steps up into the living area may be a remaining early feature. All of the interior doors have been replaced with six panel modern units. All floors in the attic flat are carpeted. 61 Georgia Post Hill Residence Report, continued: Recommendations: The most noticeable alteration on the fagade is the addition is the staircase to the attic flat. The removal of that feature would do a lot to restore the original look to the fagade. However, its removal would also remove access to that unit. A new staircase would need to be constructed at a les visible location. The general slope of the lot would mean that a new staircase would require a substantial number of additional steps. It would also mean some reconfiguration of the attic flat to relocate the entrance. Another possibility would be to install an interior staircase coming up from within the front flat, using the entrance to that unit as the entry for both or installing a new entrance, possibly where the original front door was. That would also mean some reconfiguration of the upper flat as well as some loss of square footage in the main flat. Neither of these scenarios would seem feasible or practical. The house was recently repainted, giving the staircase a dark blue color, rather than the white that it previously had, making it blend a bit better with the structure. The banister was also replaced at some point in recent years giving it a more classical and less "tacked on" look. These two changes help to soften the impact of the staircase on the fagade. This is probably the best that can be done short of eliminating the attic flat. More practical changes include the replacement of the inappropriate exterior doors with historic units. Earlier documentation notes that the original front door had a large glass expanse in the center. A photo from 1991 also shows a wooden framed screen over the door. The replacement of that screen would have neither a positive or negative impact on a restored doorway, as those screens were appropriate for the period of significance, but were not always used. The door to the attic unit should also be replaced with a more historically appropriate one. All inappropriate aluminum and jalousie windows should also be replaced with more historically accurate sashes or casements. The rear attic unit windows were documented in 1991 as wood double hung units. The remaining windows should be replaced with what was most likely the original design, using the extant three muntined original casements as examples where the original windows were casement. Fortunately the original frames appear to have survived over the years. T Georgia Post Hill Residence Report, continued: The chimney that was formerly along the North fagade should also be replaced as it was an important original feature of the house. The original chimney was made of brick, whereas a replacement could be made of a lightweight modern unit and clad in half brick facing to mimic the original design. The original chimney matched the height of the main gable and a replacement would need to do the same. A small sliding window had been added to the garden flat bathroom after the chimney was removed. A new chimney will re -cover this area causing the loss of that newer window. Two double hung windows flanked the original chimney at the main level. They are still there. It is possible that a new window could be installed to the side of the chimney at the garden level. The garage will need to be raised and placed on either a perimeter foundation or a new slab that extends under the mudsills. The board and batten walls will require general repairs and rehabilitation and the roof should be redone in rolled composition, which would have been the historic covering. At least one of the roof boards will have to be replaced. That and any others should be replaced in kind as the underside of the roof is visible from within the garage. In addition, some of the driveway concrete is cracked. Care should be taken to match the original 101 year old concrete and square scoring. It is also important to preserve the stamped "HILL" and "1910" in the concrete as that documents an important part of the history of the house. 7 T l ; y� { F tY " tort omwx y .., � - " -1 ti f,ff+ P ir�t�7 r itP tri rile It I} r(,t rr�r -tpP F f rl r��lPd r ri r r ti �I r I P rxt < #I ,1 rt I r it I° r�i tip I s i Ift K� v4 Tl 1➢,l 5 ,ti � Y � 1 vu— fi � v "jA 4 S� ` M -. - . Y" a i Ift K� v4 Tl 1➢,l W � Y � 1 vu— Fw � v v4 Tl 1➢,l Py6' t'.�*✓!:�.p � 1 vu— S3ii � v 5i*IIys� All" ■ m Y 1� d a �'bflj � C Y i i "fig„ '✓ r.6 �� r , i [ ,� i Ir rr ` v tN, l4 Ali +, i ..I yy f i yy w a a I +` I 'twit t �II� Y 3 15, rt f r l �e vJ n��nr�'f Yl t,�. JIP � ?��C� 4' tY1 e� � �. G Y �. �., } $4�i'i��'y�i � � "i�� vh � �i 5 `` q� 9'i a� '� ,� a� ik � h ; i3` o�L� �� o � `'� �� 7 *�r � # s � , ��i {n � � � � ((i �� t F Y �k?SS d��i lns�� i 5�. A � � � � 5 � �" � r z! .�,"' r S ,y }�.iV luj� i i t�'r' jM1 f � ,e� yy�� Y � S U'. S %�v14�VK�L ��'�S aWF S�yy SS��Y y ��,� �'.. S'� se it �. k y3 a� 5 �:> `. I. Yp. � �'. ESTIMATE FINANCIAL ANALYSIS FOR MILLS ACT CONTRACT ** 2616 -2618 3rd Street REVENUES Current 1) Est. Monthly Rental Income $5,800 (estimate only ") 2) Annual Rental Income $69,600 ANNUALEXPENSES Gen. Expenses: 25% SFD, Others 30% $17,400 Vacancy loss 3% $2,088 8) Total Expenses $19,488 NET OPERATING INCOME (NOI) $50,112 (Line 2 Minus 8) 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) Current Tax WIVOW 14) Mills Act Assessment $409,078 (NOI/ Line 13) 15) Tax Under Mills Act $4,235 (Line 14 X.01035146) 16) Current Tax $10,933 17) Tax Savings (Line 16 - Line 15) $6,698 18) Annual Costs to City (Line 17 X 16 %) $1,072 * *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. Fi1areTd :I14I:I I I a 4 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. 17 Attachment E 2011 -- 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 106326th Street $246,857 $246,857 $2,849,376 $409,078 $12,421 $1,217 $88,946 $10,933 $2,555 20.6% 210.1% 33.2% 38.7% $9,866 $1,987 $195 $14,231 $1,749 $409 $409 $4,719 $678 ($1,579) $214 ($9,512) ($1,072) 25043rd Street $2,555 - $1,339 1501 - 15154th Street $29,495 $59,451 2616 -2618 3rd Street $4,235 $6,698 Reference Resolution Nos. 10616 (CCS) through 10619 (CCS); and Contract Nos. 9486 (CCS) through 9489 (CCS).