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SR-08-27-2013-8BY of City CouncilReport Santa Monica' City Council Meeting: August 27, 2013 Agenda Item: To: Mayor and City Council From: Marsha Jones Moutrie, City Attorney Subject: Approval of Preservation Covenant for the Downtown Post Office Building at 1258 5th Street Recommended Action Staff recommends that the City Council approve the attached proposed preservation covenant for the Downtown Post Office building. Executive Summary The United States Postal Service has exercised its authority to close and sell the Downtown Post Office. The City unsuccessfully contested the closure and has since been working with the Postal Service to maximize protection for the structure through the mechanism of a preservation covenant. The proposed covenant is attached for Council consideration. Background Faced with fiscal crisis, the United States Postal Service opted to close and sell postal facilities across the country, including the post office in Downtown Santa Monica at 1258 5th Street. On August 14th, 2012, the City Council voted, unanimously, to oppose the closure and sale; and on August 31St, the City appealed the decision by submitting a formal request for review to the Postal Service. On October 1, the Postal Service, in response to the City's request for review, confirmed its decision to close the Post Office. On October 9th, Congressman Henry Waxman also requested review by filing a petition with the Postal Regulatory Commission. The Postal Service moved to dismiss the appeal; and, on October 23`d, Council directed staff to oppose dismissal. Accordingly, staff filed a pleading opposing the motion to dismiss and supporting Congressman Waxman's appeal. The Postal Regulatory Commission granted the Postal Service's 1 Motion to Dismiss on December 19, 2012. The Post Office closed on June 29, 2013; and staff refocused its efforts on preservation of the structure. Discussion The Post Office is eligible for listing in the National Register of Historic Places. This status requires the Postal Service to follow procedural requirements imposed by certain federal regulations (commonly known as Section 106) prior to transferring the Post Office to private ownership. Pursuant to Section 106, transferring an historic property "without adequate and legally enforceable restrictions or conditions to ensure the long- term preservation of the property's historic significance" triggers a lengthy review process. In order to avoid that process, the Postal Service has proposed entering into a preservation covenant to protect the property's historic significance. Under Section 106, before a sale can occur, this covenant must be "in place", which means that a local government with a certified historic preservation program has agreed, by submitting a letter to the Postal Service and the State Preservation Officer, to review and approve any construction, alteration or rehabilitation of the property for conformity with the covenant conditions. Once the covenant is "in place", the Postal Service may proceed with the sale of the property with the covenant attached to the grant deed transferring the property to private ownership. This is the same process that the Postal Service and the City of Los Angeles utilized to preserve the Venice Post Office. Moreover, it is apparently the sole process that can be used at this time to preserve the Post Office because federal supremacy effectively precludes municipal regulation of federal property. Thus, the City lacks jurisdiction to landmark the Post Office while it is federally owned. Once the property is privately owned it will be subject to local regulations, including the City's Landmark Ordinance. 2 The covenant will prohibit the purchaser of the property, as well as all future owners of the property, from undertaking any construction, alteration or rehabilitation on the property that would affect the historic features of the property without first seeking review and approval from the certified local government. The City is a certified local government and is therefore qualified to serve in this capacity. And, once the property is privately owned, future review could be undertaken pursuant to the Landmarks Ordinance if the property if landmarked. The attached proposed preservation covenant has been prepared based on recommendations from the Landmarks Commission, which considered the matter in June, July and August, and identified historic features, both interior and exterior. As specified in the draft covenant, those features include, among others, the mass and plan of the main fagade, the poured concrete siding, the wood frame windows, the ornate groves in exterior walls, pilasters, columns, exterior motifs and the ornamental metal fence. Specified interior features include the original hanging light fixtures, marble wainscoting, horizontal wood walls and ceilings, metal staircase rails, and tall tables. The proposed covenant is worded so that additional features could be identified at a later time if the property is landmarked once it is privately owned. Language of the proposed covenant also reflects Council comments relating to maximizing effective remedies. Specifically, the covenant authorizes enforcement by members of the public. The Postal Service has reviewed the proposed covenant and concurred with its content. Staff recommends approval of the proposed covenant language in order to afford all possible protection to the historic Downtown Post Office. 3 Financial Impacts & Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Prepared by: Marsha Jones Moutrie, City Attorney Heidi von Tongeln, Deputy City Attorney Approved: Forwarded to Council: Mars a Jon s Noutrie Rod Gould City tfornoy City Manager Preservation Covenant Language Ml PRESERVATION COVENANT PRESERVATION COVENANT LANGUAGE In consideration of the conveyance of certain real property, located at 1248 5"' Street in the City of Santa Monica, the County of Los Angeles, State of California. (1) The grantee hereby covenants on behalf of itself, its heirs, successors and assigns at all times to restore, maintain and preserve this property in accordance with the recommended approaches of the "Secretary of the Interior's Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring & Reconstructing Historic Buildings" (National Park Service, 1995) in order to preserve those qualities that resulted in this property being eligible for listing on the National Register of Historic Places. Grantee further agrees to comply with all local laws and regulations governing the use of property, including, but not limited to, the requirements of the City of Santa Monica with respect to designated historical resources as set forth in the Landmark and Historic District Ordinance of the City of Santa Monica, Santa Monica Municipal Code, Chapter 9.36 (the "Landmark Ordinance"). Nothing contained herein shall in any way impair or limit the authority of the City, its City Council, boards and commissions, officers, agents and employees to exercise the City's police powers, including, but not limited to, the implementation of the City's Landmark Ordinance. (2) No construction, alteration or rehabilitation shall be undertaken or permitted to be undertaken that would affect the historic features of the property without prior consultation with, and the express permission of the City of Santa Monica ("City"), which consultation and permission shall be conferred through the process established in the Landmark Ordinance, if applicable. The historic features of this property shall include the following: (a) Interior historic character -defining features of this post office are the original hanging light fixtures, the marble wainscot, horizontal wood wall paneling and ceilings with zigzag motif, metal staircase rails with chevron ornamentation, terrazzo flooring, and the original tall tables used for post office patrons. (b) Exterior character -defining features include the overall mass and plan of the main fagade of the post office, the scalloped cornice at the roofline, the poured concrete exterior siding, the frieze consisting of three -stepped horizontal bands running along the entire building, the Art Deco -style lettering over the central window reading "United States Post Office ", the dedication plaque, original wood frame windows, modernistic pilasters along the primary fagade slightly above the roofline, pilasters flanking the entrance doors, and columns with pilasters capped with extremely stylized Corinthian capitals. The concrete wave and Art Deco motifs over the main entrances, including reliefs ofglobes set over stylized eagle's wings flanked by grooved vertical bands, granite steps, and the low, ornamental metal fence with a chevron motif are also historic character defining features. (3) Authorized representatives of the City shall be permitted at all reasonable times to inspect the property in order to ascertain if the above conditions are being met. (4) In the event of a violation of this covenant, and in addition to any remedy now or hereafter provided by law, the City, and any resident of the City of Santa Monica having an interest in the historic features of the property may, following reasonable notice to the current owner of the property, institute an action for specific performance, injunction and/or monetary damages. The action for specific performance may include restoration of the property to its conditions as existing prior to the construction, alteration or restoration undertaken in violation of this covenant. The plaintiff in any action brought pursuant to sections shall be entitled to recover its costs and attorney's fees if it is deemed to be the prevailing party. (5) This covenant is binding on the grantee, its heirs, successors and assigns in perpetuity. All stipulations and covenants contained herein shall be inserted by the grantee verbatim or by express reference in any deed or other legal instrument by which the grantee divests itself of any interest in the property or any part thereof. (6) The failure of any person or entity permitted by the terms hereof to exercise any right or remedy granted under this instrument shall not have the effect of waiving or limiting the exercise of any other right or remedy or use of such right or remedy at any other time. (7) This covenant shall be a binding servitude upon the property and shall be deemed to run with the land. Execution of this covenant shall constitute conclusive evidence that the grantee agrees to be bound by the foregoing conditions and restrictions and to perform to obligations herein set forth. (8) The City may, for good cause, and following notice to the public, modify or cancel any or all of the foregoing restrictions upon application of the grantee, its heirs, successors or assigns. The validity, interpretation, effect, and enforcement of this covenant, or any portion thereof, shall be governed by, and shall be construed and enforced in accordance with, the laws of the State of California. All litigation or other proceedings arising out of this covenant to interpret or enforce this covenant, or any portion thereof, or to recover for any breach thereof, shall be filed in the Los Angeles County Superior Court, unless the parties agree in writing to an alternative venue for litigation. (9) The unenforceability of any term or provision of this covenant shall not affect the validity of remaining sections or portions of this covenant.