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SR-10-22-2013-3DCity Council Meeting: October 22, 2013 Agenda Item:J-D To: Mayor and City Council From: David Martin, Director, Planning & Community Development Subject: New Mills Act Contracts at 642 Kensington Road, 1001 3`d Street and 128 Hollister Avenue. 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 three designated City Landmarks at 642 Kensington Road, 1001 3rd Street and 128 Hollister Avenue. 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 three pending Mills Act Contracts will result in reduced property tax revenue to the City estimated at $10,291 total for the 2013 -2014 fiscal year and a similar amount annually thereafter. fl 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 Recently on May 13, 2013, the Landmarks Commission, at the request of Council, reviewed the City's existing Mills Act Program and developed recommendations to improve applicant submittals and further suggested guidelines that provide greater specificity as to contract eligibility. An Ordinance recommending these revisions will be introduced to the Council on November 12, 2013. As the current Mills Act applications were submitted and determined complete prior to any formal changes to the Mills Act Program, the current applicants are not affected by any pending local changes 3 regarding eligibility or applicant submittals. However, staff encouraged all applicants during this Mills Act cycle to comply with the Commission's recommendation that the following properties be ineligible for historic property contracts: • Undesignated property on the City's Historic Resources Inventory • Non - contributing structures located within a designated Historic District • Property with confirmed and outstanding code violations • Property with tax delinquency • Designated buildings or structures with completed or on -going rehabilitation work that does not conform to the Secretary of the Interior's Standards for the Treatment of Historic Properties The proposed contracts are compliant with these eligibility requirements. These contracts are time- sensitive and must be recorded by the end of the 2013 calendar year in order to take effect the following year. 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. Los Angeles County Assessor's Office data showed that for the 2011 -2012 tax year, property value assessments for the 54 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 valuetassessments, correspondingly lower taxes have been levied on these properties. Each year, the County Assessor reassesses taxes due for properties with Mills Act Contracts. C! Staff estimates that the three new contracts will result in property tax reductions equating to 44.7 percent for 642 Kensington Road, 11.5 percent for 1001 3`d Street and 87.5 percent for 128 Hollister Avenue. 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 January 2013, staff initiated its latest contract monitoring effort for all 54 of the City's existing contracts, 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 three new applications for consideration in 2013: • a single - family residence designed as a unique variant of the Craftsman Bungalow style at 642 Kensington Road; • The Embassy Apartment Hotel (a.k.a. Palihouse Hotel) at 1001 3rd Street; and • a single - family residence designed in the American Foursquare style at 128 Hollister Avenue. In addition to any specific rehabilitation or restoration tasks included in the contract for each individual property, each Mills Act Contract includes a standard requirement for ordinary maintenance and upkeep throughout the Contract's term for work such as roof, plumbing, and electrical systems maintenance. R 642 Kensington Road A Mills Act Contract application was filed on August 15, 2013 for the one and one -half story building designed in a unique variant of the Craftsman Bungalow style. The subject property is located on the south side of Kensington Road, opposite Jocelyn Park. The residence was constructed around 1917 and relocated to its current location in 1937. The existing single - family residence was designated a City Landmark on December 10, 2012 based on its unique, representative architecture. 642 Kensington Road —A Craftsman Bungalow constructed in 1917 and designated in 2012 As part of the Mills Act application, an architect's report was prepared by architect Diane Waingrow. The report assesses the condition of the primary residence and identifies repair, restoration /rehabilitation and maintenance needs (Attachment A) along with a general schedule for completion of work. As discussed more fully in Attachment A, the exterior of the residence and some of the more prominent features appear to be in very good condition and repair. The foundation of the residence has been identified as the primary concern, requiring seismic bolting. A full inventory of proposed work items is included in the 10 -year Restoration /Rehabilitation /Maintenance Plan. Below is an itemized listing of the more significant work tasks that will be completed during the initial terms of the contract: f • Foundation work /seismic bolting • Window, screens repair /maintenance • Kitchen renovation • Bathroom renovation • New electrical system • HVAC upgrade • Termite prevention Attachment A also contains the estimated financial analysis for the property at 642 Kensington Road, which describes the projected benefit to be realized by the property owners and fiscal impact to the City. 1001 3rd Street A Mills Act Contract application was filed on August 15, 2013 for the three -story Embassy Hotel Apartment located at 1001 3rd Street. This building, which is presently known as the Palihouse Hotel, was designated a City Landmark on October 13, 2003. The subject building is located north of downtown on the southeast corner of 3rd Street and Washington Avenue. Originally constructed in 1927, the building retains a high level of physical and historic integrity in expressing its Spanish Colonial Revival design. Its interior lobby has recently experienced a significant renovation. The Embassy Hotel Apartment— Spanish Colonial Revival in style, designated a City Landmark in 2003 7 i� As part of the Mills Act application, an architect's report was prepared by architect Stenfors Associates. The report assesses the condition of the building and details repair, restoration /rehabilitation and maintenance needs (Attachment B) along with a general schedule for completion of work. As discussed more fully in the attachment, overall, the exterior is noted as being in good condition and generally requires only routine maintenance. Portions of the felt underlayment of the tile roof will need replacement as a means of maintaining adequate and proper waterproofing. A non - original window will also be replaced with an appropriate substitute. Other significant work tasks proposed include: • Replacement of penthouse windows • Termite treatment • Repointing of exposed brickwork • Stablize exterior cast stone ornamentation • Maintenance /Repair of "The Embassy" neon sign • Replace existing galvanized plumbing • Replace furnac Attachment B also contains the financial analysis estimate for the property at 1001 3`d Street. 128 Hollister Avenue A Mills Act Contract application was filed on August 15, 2013 for the two -story American Four - Square styled single - family residence located in Ocean Park at 128 Hollister Avenue. The building, which was constructed in 1905, was designated a City Landmark on July 14, 2003 as a representative example of the early development of the South Beach tract, as an extant example of a rare architectural style and as a familiar feature of the neighborhood. E 128 Hollister Avenue — An American Four - Square Residence, representative of early Ocean Park, designated in 2003 As part of the Mills Act application, an architect's report was prepared by Chattel, Incorporated. The report assesses the condition of the residence and identifies repair, restoration /rehabilitation and maintenance needs (Attachment C) along with a general schedule for completion of work. As discussed more fully in the attachment, the residence is generally in good condition with structural foundation work recommended to prolong the life of building. Other work tasks contained in the proposed contract include: • Repair /repainting of wood clapboard siding • Main entry door replacement • Upgrade electrical system. Attachment C also contains the financial analysis estimate for the property at 128 Hollister Avenue. Commission Action The Landmarks Commission reviewed the Mills Act Contract requests at its September 9, 2013 meeting and directed staff to forward recommendations to the Council in support of all new applications. During its discussion, the Commission appreciated the thoroughness of each application and acknowledged the financial impacts to the City that are projected. Financial Impacts & Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Staff will return to Council if specific budget actions are required in the future. Execution of these Mills Act Contracts would result in a reduction in annual property tax revenue to the City in the amount of $10,291. A summary financial analysis table is included as Attachment D. Prepared by: Scott Albright, AICP, Senior Planner Approved: 1) i j David Martin Director, Planning and Community Development Forwarded to Council: Rod Gould City Manager Attachments: A. 642 Kensington Road: Draft Mills Act Resolution and Contract, Architect's Report and Financial Analysis B. 1001 3`d Street: Draft Mills Act Resolution and Contract, Architect's Report and Financial Analysis C. 128 Hollister Avenue: Draft Mills Act Resolution and Contract, Architect's Report and Financial Analysis D. Summary Financial Analysis 10 ATTACHMENT A 642 Kensington Road: 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. 11 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. XXXX (CCS) HISTORIC PROPERTY PRESERVATION AGREEMENT THIS AGREEMENT is made and entered in to this 22nd day of October, 2013 by and between the City of Santa Monica, a municipal corporation (hereinafter referred to as the "City ") and Christopher S. Cohoon (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 642 Kensington Road, Santa Monica, California, (hereinafter such property shall be referred to as the "Historic Property "). A legal description of the Historic Property is attached hereto, marked as Exhibit "A" and is incorporated herein by this reference; C. On December 10, 2012, 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 22, 2013 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 642 Kensington Road; 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, 2014 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: Christopher S. Cohoon 642 Kensington Road Santa Monica, CA 90405 10. No Joint Venture. None of the terms, provisions or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors or assigns, nor shall such terms, provisions or conditions cause them to be considered joint venturers or members of any joint enterprise. 11. Hold Harmless. As between the City and the Owner, the Owner is deemed to assume responsibility and liability for, and the Owner shall indemnify and hold harmless the City and its City Council, boards and commissions, officers, agents, servants or employees from and against any and all claims, loss, damage, charge or expense, whether direct or indirect, to which the City or its City Council, boards and commissions, officers, agents, servants or employees may be put or subjected, by reason of any damage, loss or injury of any kind or nature whatever to persons or property caused by or resulting from or in connection with any negligent act or action, or any neglect, omission or failure to act when under a duty to act, on the part of the Owner or any of its officers, agents, servants, employees or subcontractors in this or their performance hereunder. 12. Attorneys' Fees and Costs. In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or breach thereof, the prevailing party shall be entitled to recover from the losing party reasonable expenses, attorneys' fees and costs. 13. Severability. In the event any limitation, condition, restriction, covenant or provision contained in this Agreement is held to be invalid, void or unenforceable by any court or competent jurisdiction, the remaining portions of this Agreement shall, nevertheless be and remain in full force and effect. 14. Applicable Law. All questions pertaining to the validity and interpretation of this Agreement shall be determined in accordance with the laws of California applicable to contracts made to and to be performed within the state. 15. Recordation. Within 20 days of execution, the parties shall cause this Agreement to be recorded in the official records of the County of Los Angeles. 16. Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. 17. Sale or Conversion of Property. In the event of sale or conversion of the Historic Property, the Conditions, Covenants and Restrictions (C. C. & R.'s) for the Historic Property, if required, shall incorporate by reference all obligations and duties of the parties created by this Agreement. 18. Prohibition Against Discrimination. Owner agrees not to discriminate or impose any restrictions on the sale, lease, or occupancy of the Subject Property on the basis of sex, race, religion, ancestry, national origin, age, sexual preference, pregnancy, marital status, family composition, or the potential or actual occupancy of minor children. Owner further agrees to take affirmative action to ensure that no such person is discriminated against for any of the aforementioned reasons. IN WITNESS WHEREOF, City and Owner have caused this Agreement to be executed as of the day and year first written above. APPROVED AS TO F,ORM:. MARSHA JONES MOUTRIE City Attorney ATTEST: SARAH GORMAN City Clerk 5 CITY OF SANTA MONICA A Municipal Corporation, ROD GOULD City Manager OWNER: By: CHRISTOPHER S. COHOON 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: 642 Kensington Road 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: 642 Kensington Road 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: 642 Kensington Road Number of Pages: 5. plus Exhibits A, B, and C EXHIBIT "A" LEGAL DESCRIPTION In the City of Santa Monica, County of Los Angeles, State of California: LOT 82 OF TRACT 3734, IN THE CITY OF SANTA MONICA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 42, PAGE 95 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. FS MM nff 1 HISTORIC PROPERTY PRESERVATION AGREEMENT PROPERTY MAINTENANCE CITY OF SANTA MONICA As required by Landmarks Ordinance Section 9.36.190, all designated landmarks and structures located within a historic district shall be maintained in good repair and preserved against deterioration through the prompt repair of any of the following: 1. Facades which may fall and injure members of the public or property 2. Deteriorated or inadequate foundation, defective or deteriorated flooring or floor supports, deteriorated walls or other vertical structural supports. 3. Members of ceilings, roofs, ceiling and roof supports or other horizontal members which age, split or buckle due to defective material or deterioration. 4. Deteriorated or ineffective waterproofing of exterior walls, roofs, foundations or floors, including broken windows or doors. 5. Defective or insufficient weather protection for exterior wall covering, including lack of paint or weathering due to lack of paint or other protective covering. 6. Any fault or defect in the building which renders it not properly watertight or structurally unsafe. In addition, the following maintenance measures are also required for the subject property: 1. Maintain all electrical and plumbing systems in safe, working order; repair and replace as necessary. * *The property owner is required to obtain all necessary building permits and planning permits such as a Certificate of Appropriateness for the work specified herein.** 10 EXHIBIT "C" HISTORIC PROPERTY PRESERVATION AGREEMENT PROPOSED HOME IMPROVEMENTS The following projects shall be completed by the property owner of 642 Kensington Road over the initial ten (10) year term of the contract. Item Year Task 12 2017 -19 Maintenance Tasks 1 As needed Exterior maintenance (paint trim) 2 2018 -19 Repair window sashes 3 Annual Maintenance of interior plaster, trim 4 2017 -18 Renovation of interior oak flooring 5 2019 -22 Insulation and ventilation improvements 6 Annual Landscape maintenance 7 Annual Site maintenance (gates, hardscape, fencing) 8 Annual Site drainage and irrigation maintenance 9 2019 Termite prevention 10 2014 Installation of Landmark Property sign Rehabilitation /Restoration Tasks 11 2014 -16 Foundation work /Seismic bolting 12 2017 -19 New kitchen 13 2019 -21 New bathroom 14 2017 -19 Electrical upgrade 15 2020 -21 Chimney repair 16 2019 -21 Upgrade plumbing (water heater) 17 2022 -23 Upgrade HVAC equipment * *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 ESTIMATE FINANCIAL ANALYSIS FOR MILLS ACT CONTRACT ** 642 Kensington Road REVENUES 1) Est. Monthly Rental Income 2) Annual Rental Income Current $4,200 (estimate only `) $50,400 ANNUALEXPENSES Gen. Expenses: 25% SFD, Others 30% $12,600 Vacancyloss 3% $1,512 8) Total Expenses $14,112 NET OPERATING INCOME (NOI) $36,288 (Line 2 Minus 8) CAPITALIZATION RATE 9) Interest Component 3.75% 10) Historic Property Risk 4% (2 %, or 4% for SFD) 11) Property Tax Component 1% 12) Amortization Component 0.5% 13) Capitalization Rate 9% (Sum Line 9 - 12) Current Tax 14) Mills Act Assessment $392,303 (NOI/ Line 13) 15) Tax Under Mills Act $4,061 (Line 14 X.01 035146) 16) Current Tax $7,j209 17) Tax Savings (Line 16 - Line 15) $3,148 18) Annual Costs to City (Line 17 X 16 %) $504 * *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. August 12, 2013 Mr, Christopher Cohoon 642 Kensington Road Santa Monica, CA 90405 Report of Historic House located at: 642 Kensington Road Santa Monica, California 90405 Scope of Report: The intent of this report is to generally describe the conditions of the existing house. General Description: The subject property is a one and one -half story, single - family residence designed in the Asian - inspired variation of the Craftsman architectural style. It was designated a Landmark structure by the City of Santa Monica on January 14, 2013. Given that it is an uncommon variant of a common architectural style, the dwelling represents an important component of the City's architectural history from a particular time period, the first decade of the 20th century. The house has a front gabled, medium pitched roofline with wide, overhanging eaves and ornate exposed rafter tails. A projecting front porch with flared eaves dominates the street facing elevation. This wood porch contains three groups of multiple posts with short protruding knobs, topped by a short horizontal board with a carved circle design on either side. The porch is accessed by a single concrete step at the center of the facade and has a closed balustrade with clapboard siding and low, molded wood caps. The exterior of the structure is clad in wood clapboard siding. Wood vents with horizontal slats and pronounced lintels and sills are evident in the gable peaks. The fenestration is wood framed, double -hung sash, with a gothic -style muntin design on the upper sash, which divides the pane into four differentiated lights. To the west of the house is a wide driveway, with a brick surface. The garage at the rear of the house was converted in 2010 to an "accessory building" and no longer has an auto - related function. A low concrete block retaining /garden wall is located along the sidewalk at the front of the house. A row of medium- height hedges behind the wall provides a natural screen for the front lawn. The residence was originally constructed around 1917. A 1937 building permit documents the relocation of the subject dwelling from 1227 14th Street to 642 Kensington Road. The property is located on the south side of Kensington Road, between 7th Street and Beverly Avenue, in a residential neighborhood consisting of both single - family homes from the 1920s and the late 1940s, as well as multi - family apartment complexes from the 1960s and later. The residence is oriented to the north /northwest, facing Kensington Road and Jocelyn Park across the street. Exterior Finishes: The exterior of the house is in very good condition. The original character defining historical elements such as the ornate exposed rafter tails and the decorative wood posts at the front porch, are all in very good condition. Within the last 3 years, any and all rotted wood has been replaced and the exterior has been primed and painted with authentic historical paint colors. All of the doors and windows are original and are in good condition. The foundation is made of redwood and shows no settlement, and the crawl space is dry. Recommendation: • Maintenance of exterior woodwork by painting and sealing should continue. • Repair of the sash of several windows should occur for their continued functioning. • Continue to maintain weatherproof sealing of all windows and doors. • The foundation should be bolted in conformance with current seismic codes. Interior Finishes: The interior finishes are in good condition. New oak flooring was installed in the early 1990's. The interior lath and plaster walls are well maintained. The kitchen and bathroom are functioning but are in need of remodeling. Recommendation: • Maintenance of lath and plaster walls should continue as needed. • Oak floors need to be refinished. • The kitchen and bathroom need to be completely remodeled including new fixtures, fittings, appliances, cabinets, countertops, lighting, and flooring. Roof: A new 30 yr. asphalt shingle roof was installed 10 years ago. The louvered, wood vent in the gabled peak is an architectural element. Recommendations: • Add another attic vent for cross ventilation with a mechanical fan. • Insulate at the attic ceiling joists to promote energy savings. • Continue general maintenance of gutters and downspouts with seasonal servicing to assure effectiveness. • Maintain existing chimney as required. Electrical, Plumbing and Forced Air Units: The existing electrical service and panel show evidence of many re- workings over the years, but are in fair condition. All new copper plumbing was installed in the early 1990's. A new forced air heating system was installed in the early 1990's. Recommendations: • Replace substandard electrical and upgrade panel. • At end of functioning of water heater, replace with tankless unit to promote energy savings. • Continue HVAC system maintenance. Landscape: The planting on the property is varied and well maintained. The site drainage is effective and irrigation is functioning well. The gates and fences are in good condition. Recommendations: • Maintenance of landscape should continue to enhance the historical nature of the property. • Repair irrigation heads and piping as needed. Prepared by: Diane Waingrow Architect AIA 1014 Maroney Lane Pacific Palisades, CA 90272 (310)230 -2909 3 Diane Waingrow Architect AIA 1014 Maroney Lane Pacific Palisades, CA 90272 310 - 230 -2909 r 642 KensingtonjWe. Santa Monica, CA 04 MILLS ACT EXTERIOR PHOTOS S't' Q-r+ { A-" ®nJ Diane Waingrow Architect AIA 1014 Maroney Lane Pacific Palisades, CA 90272 310- 230 -2909 � '� . . Santa Monica, CA 90405 MILLS ACT EXTERIOR PHOTOS �� «iN 3 Diane Waingrow Architect AIA 1014 Maroney Lane Pacific Palisades, CA 90272 310 - 230 -2909 6! Kensington Santa Monica, CA 0.0 MILLS ACT O. PHOTOS t� e A t �t fi r'-5t'r4 -r C N� gq4 N Diane Waingrow Architect AIA 1014 Maroney Lane Pacific Palisades, CA 90272 310 - 230 -2909 i 642 t Santa Monica, CA 0.0 EXTERIOR MILLS ACT PHOTOS Rm N =6 (v 't�-Il*,C) t v l4Sa'<x-- L-A "Jo L40t 0(:� 'PlAhN� 2c7aMr K'CN s L N61-'c� FJ t1c t� s `/i n/t Pr N I n/G r - 7 o _ � - y 7v._ _ �,. _ _} n ��.I� i� _� ).6 ����U ��U�`7 /Or�> Need Statement 8/15/2013 I am applying for the Mills Act in order to share the burden of our mutual investment of a landmarked property in Santa Monica. This will supplement the more than $100,000 1 anticipate spending in the next 10.years which is something I will invest in with my own funds but also with the Mills Act fund to make this project feasible. I have already spent a considerable sum of my own money in improving the exterior fapade of the property during the last several years and need this assistance for future maintenance. Christopher S. Cahoon 642 Kensington Road Santa Monica, CA 90405 ATTACHMENT B 1001 3`1 Street: Draft Wills 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. 13 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. XXXX (CCS) HISTORIC PROPERTY PRESERVATION AGREEMENT THIS AGREEMENT is made and entered in to this 22nd day of October, 2013 by and between the City of Santa Monica, a municipal corporation (hereinafter referred to as the "City ") and 1001 3`d Street, LLC (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 1001 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 October 13, 2003, 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 22, 2013 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 1001 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, 2014 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: 1001 3'd Street, LLC . 1180 S. Beverly Drive #508 Los Angeles, CA 90035 Attn: Ramin Kolahi 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. FAV • : �I17_F�lilY�]:�i�iE MARSHA JONES MOUTRIE City Attorney ATTEST: SARAH GORMAN City Clerk 5 CITY OF SANTA MONICA A Municipal Corporation, By: ROD GOULD City Manager OWNER: By: RAMIN KOLAHI 1001 3RD STREET, LLC 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: 1001 3' Street 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: 1001 3rd 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: 1001 3` Street Number of Pages: 5, plus Exhibits A B and C 0 EXHIBIT "A" LEGAL DESCRIPTION That certain real property located in the City of Santa Monica, County of Los Angeles, State of California, and is described as follows: Lots "W" and "X" and the northwesterly one -half of Lot "V" in Block 73 of Town of Santa Monica, in the City of Santa Monica, County of Los Angeles, State of California, as per Map recorded in Book 3, Page(s) 80 and 81 and in Book 39, Page 45 et seq. of Miscellaneous Records, in the Office of the County Recorder of said County. APN: 4292 - 019 -015 ANW911 nd"0. HISTORIC PROPERTY PRESERVATION AGREEMENT PROPERTY MAINTENANCE CITY OF SANTA MONICA As required by Landmarks Ordinance Section 9.36.190, all designated landmarks and structures located within a historic district shall be maintained in good repair and preserved against deterioration through the prompt repair of any of the following: 1. Facades which may fall and injure members of the public or property 2. Deteriorated or inadequate foundation, defective or deteriorated flooring or floor supports, deteriorated walls or other vertical structural supports. 3. Members of ceilings, roofs, ceiling and roof supports or other horizontal members which age, split or buckle due to defective material or deterioration. 4. Deteriorated or ineffective waterproofing of exterior walls, roofs, foundations or floors, including broken windows or doors. 5. Defective or insufficient weather protection for exterior wall covering, including lack of paint or weathering due to lack of paint or other protective covering. 6. Any fault or defect in the building which renders it not properly watertight or structurally unsafe. In addition, the following maintenance measures are also required for the subject property: 1. Maintain all electrical and plumbing systems in safe, working order; repair and replace as necessary. "The property owner is required to obtain all necessary building permits and planning permits such as a Certificate of Appropriateness for the work specified herein." 10 EXHIBIT "C" HISTORIC PROPERTY PRESERVATION AGREEMENT PROPOSED HOME IMPROVEMENTS The following projects shall be completed by the property owner of 1001 3`d Street over the initial ten (10) year term of the contract. Item Year Task Maintenance Tasks 1 2014 Roof repair (flat portions) 2 2014 Roof repair (pitched roof, clay tiles) 3 2019 Termite treatment 4 2020 Paint exterior walls 5 Annual Landscape maintenance 6 Annual Inspect and repoint exposed brick on rear wall 7 2016 than bi- Repaint wood windows, sills, trim and screens annually 8 2017 than bi- Restain wood doors at main entry annually 9 2017 than bi- Scrape and paint roof soffits annually 10 2014 Clean and maintain gutters and downspouts 11 2017 than bi- Balconies, inspect, clean and repair annually 12 2017 than bi- Refastening, stabilizing corner molding and cast stone annually ornamentation 13 Bi- annual Neon sign maintenance 14 As needed Repair /replace rear patio tiles, 15 2016 Replace galvanized plumbing 16 2019 Replace furnace 17 2014 Upgrade electrical panels 18 2021 Repair exterior walls 19 2017 Maintenance of interior tile floors, stairs, decorative handrails, ceiling wood beams 20 2017 Repair and maintenance of leaded glass windows 21 As needed Repair of historic Water Fountain Rehabilitation /Restoration Tasks 22 2016 Install sister joists to portions of main first floor structure 23 2014 Replace penthouse windows 24 2017 -19 Elevator, replacement of relays and motor "The property owner is required to obtain all necessary building permits and 11 planning permits such as a Certificate of Appropriateness for the work specified herein. ** 12 ESTIMATE FINANCIAL ANALYSIS FOR MILLS ACT CONTRACT ** 1001 3rd Street REVENUES 1) Est. Monthly Rental Income 2) Annual Rental Income Current $225,000 (estimate only * ) $2,700,000 ANNUALEXPENSES Gen. Expenses: 25% SFD, Others 30% $810,000 Vacancy loss 3% $81,000 8) Total Expenses $891,000 NET OPERATING INCOME (NO[) $1,809,000 (Line 2 Minus 8) CAPITALIZATION RATE 9) Interest Component 3.75% 10) Historic Property Risk 2% (2 %, or 4% for SFD) 11) Property Tax Component 1% 12) Amortization Component 5.0% 13) Capitalization Rate 11.75% (Sum Line 9 - 12) Current Tax 14) Mills Act Assessment $15,395,745 (NOI/ Line 13) 15) Tax Under Mills Act $159,368 (Line 14 X.01035146) 16) Current Tax $180,000 17) Tax Savings (Line 16 - Line 15) $20,632 18) Annual Costs to City (Line 17 X 16 %) $3,301 * *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. architects Architectural Report for Mills Act Application September 4th 2013 Palihouse Motel aka Embassy Hotel and Apartments Santa Monica, CA Scope of Project This document will describe the significance of the Palihouse /Embassy Hotel, discuss the character- defining features of the building, and develop:amaintenance plan for work to be performed during the next 10 years. This report and the accompanying maintenance plan are intended to identify and prioritize actions to be undertaken by the owner under a Mills Act contract. General Description The Palihouse /Embassy Hotel is a Spanish Colonial Revival apartment hotel, constructed in 1927 on a prominent corner location. It is based on an "L" shaped plan, allowing for amain fa4ade, and a courtyard space facing the street. The main entrance is a recessed opening facing the courtyard, rather than the street. The building has stucco walls, articulated with several balconies, and cast stone ornament at the roofline and on the front corners. The building is 3 stories tall, and has a shallow pitched gable roof sheathed with curved clay tiles. There are both rectangular and arched window openings, with wood casement sash in most locations. Character Defining Features The Palihouse /Embassy Hotel exhibits all of the character - defining features and materials associated with the Spanish Colonial Revival style: Exterior: ® Smooth stucco walls. ® Extensive use of applied cast -stone on corners and at the roofline ®_ Arched windows, typically with wood casement sash. ® Projecting Balconies supported on corbel brackets. 0 Wrought iron window grills. ® Entry doors set in a recessed opening with elaborate cast -stone surround. 1 • Stained -glass entry doors and windows accented with wrought -iron decorative pattern. • - Low pitched gable roof, with cropped eaves, accented by cast stone. ® Red clay roof tiles. Interior Lobby: a Saltillo tiles floors. Colored /Painted tiles accenting stairs and openings. ® Exposed beams with stenciled painting. • Wrought iron railings and fixtures. Exterior Finishes Due to extensive remedial maintenance by the current owners, the exterior stucco walls are in good condition due to recent repair of the deteriorated and spelling sections. All of the cracks were caulked, and the exterior was repainted. Most of the case stone ornament at the roof line and the corners is in solid condition, but attachments will need to be secured and joints caulked routinely. The windows have been painted and are in good condition. The rear wall is brick, and in good condition, but will require periodic repointing: Recommendations Stucco should be patched as needed. The brick walls should be repointed on an ongoing basis. Most of the prior damage to the stucco was due to overgrown landscaping that caused abrasion, and trapped moisture at the base of the walls. This condition has been corrected by removing most of the large plants, and installing new landscaping and drainage., The landscape should be trimmed and cut back as needed to minimize contact with the wall surfaces: Interior Systems and Finishes The interior has been recently painted and is in good condition. Ornamental tiles and the main floor of the lobby space have been recently polished and are in good condition. The ceiling has been left as -is with its decorative stenciling. The elevator door and cab is original and the operating equipment has been receiving ongoing maintenance. Upgrading is anticipated this year, and will be required overtime to ensure compliance with safety regulations. Recommendation Routine cleaning and maintenance should continue in the interior. The decorative ceiling in the lobby will need some minor repairs in the future to correct past water damage that caused minor paint discoloration Elevator upgrading should proceed as required. Roof The roof surfaces appear to be in good condition based on visual inspection but due to the age of the building and the deferred maintenance, it is expected that the roof will need remedial work within the next 10 years. Recommendation On the tiled roof surfaces, the tile will need to be removed, so the felt underlayments can be removed and replaced. Any damaged decking would be replaced if necessary at the time. Metal flashing in the valleys would also be replaced. The original tiles would then be re -set, using the original tiles to the greatest extent possible. Any new tiles would need to match the color and shape of the existing as closely as possible. On the small sections of flat roof, the existing rolled roofing should be removed down to the roof decking, and new material installed as required. Flashing should also be replaced. Electrical, Plumbing and HVAC units The electrical system was upgraded in 2013 and is now in good condition. The plumbing to the kitchens and bathrooms was also upgraded, but has to our knowledge never been completely repiped, so it is likely that there may be some pieces of original galvanized pipe still in use. This is a serious concern due to the potential for pinhole leaks to occur, or for pieces of pipe to break. 2 Recommendation The plumbing systems should be inspected over the next year, and priorities established to replace any galvanized pipe that remains with new copper. Due to the potential for internal damage, this is a critical item to implement in the immediate future, and be completed within the next 10 years. The furnace is scheduled for replacement in 2019: Landscape The landscape on the entire property was substantially trimmed or removed as part of a major re- landscaping project in 2013. A detailed plan was approved by the Historic Preservation Office in the summer of 2013. The new plantings, and all existing plants should be trimmed on a routine basis to avoid any physical contact with the wall surfaces. Any irrigation or watering systems should be adjusted to ensure water from sprinklers does not directly hit the building, or rainwater does not pond at the base of any foundation walls. The new drainage system should handle this, but the drainage should be monitored routinely. MP A 10% architects September 4th 2013 EXHIBIT "A" 9 11111W 12 Address: Palihouse Hotel aka Embassy Hotel and Apartments 1001 3rd Street, Santa Monica, CA 90403 Contract Year of Proposed Work Completion: 2014 - 2024 COMPLETED WORK 2013 Building Feature: Landscape, Hardscape - Front yard and Perimeter Z Rehabilitation/Restoration ❑ Maintenance Cost: $90,700 Z Completed ❑ Proposed Year Work Completion: 2013 Description of work: As approved by the Historic Preservation Commission, the front courtyard plantings were selectively removed to minimize impact to the building and water penetration against the foundation walls. The pathways and other hardscape features were replaced and the original fountain located on the walkway to the main entrance was restored. New irrigation systems were installed to sustain the landscape elements. Plantings around the perimeter of the property that were obscuring architectural features were trimmed to enhance visibility of exterior walls and'ornamentation. Exterior Feature: Painting Exterior Walls ❑ Rehabilitation/Restoration Z Maintenance Cost: $80,000 Z Completed F­1 Proposed Year Work Completion: 2013 Description of work: Complete exterior painting, with stucco patching and related maintenance. (Cost figure includes interior painting, noted below) Interior Building Features: ❑ Rehabilitation /Restoration ® Maintenance Cost: $221,362 ® Completed ❑ Proposed Contract Year of Proposed Work Completion: 2013 Description of work: The Embassy has recently undergone a major upgrade on the interior. New Carpets and Floor Restoration and Maintenance $93,015 Elevator Maintenance and Repairs $ 4,756 Back Of House Improvements $ 1,652 Interior Signage $ 5,252 Lobby and Fireplace Repairs $ 2,331 Lobby Shelving and Cabinetry Repairs $ 8,415 Office Shelving and Cabinetry Repairs $ 7,250 Rooms — Closet Improvements $14,541 Rooms, Vanity — Cabinet Repairs $ 6.500 Rooms, Bathroom and Kitchen — Tile Repairs, Epoxy $13,545 Painting Kitchen, Cabinet Repairs $ 8,539 Kitchens, Plumbing Fixtures, Maintenance /Repair $ 3,156 Electrical Repairs $ 8,250 Plumbing Repairs $11,640 Room updating $ 8.155 Hot Water Heaters, Repair and Replacement $18,840 Termite Treatments 5,525 _ $221,362 TOTAL INVESTED INTO PROPERTY SINCE RECENT $392,062 OWNERSHIP CHANGE IN 2013 E FUTURE MILLS ACT CONTRACT WORK 2014 - 2024 List recently completed work first (if applicable) and continue with work proposed to be complete within the next ten years, arranging in order of priority. EXTERIOR FEATURES: Building Feature: Roof ❑ Rehabilitation /Restoration ® Maintenance Cost: $30,000 ❑ Completed ® Proposed Contract Year of Proposed Work Completion: 2014 _Description of work: The Embassy has a several sections of flat roof with rolled asphalt roofing. Existing material will be removed down to the roof decking and replaced with new material, in kind. ----- Building Feature: Pitched. Roof, Clay tile - ❑ Rehabilitation /Restoration ® Maintenance Cost: $25,000 ❑ Completed ❑ Proposed Contract Year of Proposed Work Completion: 2014 Description of work: All clay tiles will be removed in order to replace felt underlayments with new material. Any damaged decking will be replaced as required. Metal flashing in valleys will be replaced as needed. Tiles will be re -set, using, the original tiles to the greatest degree possible. Any new tiles required will match the color and shape of the existing as closely as possible. Building Feature: Windows in Penthouse ® Rehabilitation /Restoration '❑ Maintenance Cost: $5,000 ❑ Completed ❑ Proposed Contract Year of Proposed Work Completion: 2014 Description of work: The three existing windows in the penthouse are deteriorated and will need to be replaced. New units will match existing in materials and configuration. Building Feature: Entire Building — Termite Treatment Rehabilitation /Restoration ® Maintenance Cost: $10,000 ❑ Completed '® Proposed Contract Year of Proposed Work Completion: 2019 Description of work: Treatment for subterranean termites, perimeter chemical application. Ongoing monitoring for any signs of active infestation by termites or other insects. Building Feature: Landscape, Hardscape — Front yard and Perimeter ❑ Rehabilitation /Restoration ® Maintenance Cost: $75,000 ® Completed ❑ Proposed Year Work Completion: 2014-2024 Description of work: Ongoing maintenance of landscaping including tree trimming and plant maintenance, irrigation system maintenance, gardeners to do work and walkway maintenance. Exterior Feature: Painting Exterior Walls Rehabilitation /Restoration ® Maintenance Cost: $60,000 ® Completed ❑ Proposed Year Work Completion: 2020 Description of work: Complete exterior painting, with stucco patching and related maintenance. Building Feature: Rear Wall (northeast by courtyard) ❑ RehabilitationlRestoration ® Maintenance Cost: $7,500 ❑ Completed ❑ Proposed Contract Year of Proposed Work Completion: 2014 2024 Description of work: The rear wall that is exposed brick (never stuccoed) will be repointed as needed, using mortar that matches the existing in color, texture and composition. Joints will be repaired as required. The mortar will be inspected on an ongoing basis. Building Feature: Wood Windows, All elevations ❑ Rehabilitation /Restoration ® Maintenance Cost: $5,000 ❑ Completed '® Proposed Contract Year of Proposed Work Completion: 2016, 2018, 2020, 2022 Description of work: Ongoing painting of windows and framing to insure water tight conditions, and avoid air infiltration at perimeter of all sash. Reglaze if needed. Building Feature: Window Sills and Trim ❑`Rehabilitation /Restoration ' ® Maintenance Cost: $5,000 El Completed ®?Proposed Contract Year of Proposed Work Completion: 2016, 2018, 2020 2022 Description of work: Ongoing painting and maintenance. Scrape, paint and caulk joints as needed to ensure water tight conditions and avoid cracks between wood and stucco. rd Building Feature: Window Screening ❑ Rehabilitation /Restoration ® Maintenance Cost: $5,000 ❑ Completed ®.Proposed Contract Year of Proposed Work Completion: 2016, 2018, 2020, 2022 Description of work: Ongoing painting and maintenance. Scrape and paint as heeded. Repair or replace screening when necessary. Building Feature: Main Entrance, Wood Doors ❑ Rehabilitation /Restoration ® Maintenance Cost: $5,000 ❑ Completed ® Proposed Contract Year of Proposed Work Completion: 2017, 2019, 2021, 2023 Description of work: Ongoing staining of wood for appearance. Maintain and repair of hardware for proper operation. Building Feature: Roof Soffits, Ornamental Cast Stone ❑ Rehabilitation /Restoration ® Maintenance Cost: $5,000 ❑ Completed ® Proposed Contract Year of Proposed Work Completion: 2017, 2019, 2021 Description of work: Ongoing and maintenance. Scrape and paint and exposed wood as needed. Building Feature: Gutters and Downspouts ❑ Rehabilitation /Restoration ® Maintenance Cost: $5.000 ❑ Completed ® Proposed Contract Year of Proposed Work Completion: 2017, 2019, 2021 Description of work: Clean debris from gutters to ensure water flow. Caulk all joints routinely. Replace in kind if needed due to storm damage or deterioration. Building Feature: Exterior Balconies, all elevations ❑ Rehabilitation /Restoration ® Maintenance Cost: $2,000 ❑ Completed ® Proposed. Contract Year of Proposed Work Completion: 2017, 2019, 2021 Description of work: Clean all debris from floor area, ensure joint between wall and floor is caulked and sealed to avoid any water penetration. Ensure all balconies are sloped so water does not pond against wall surface. Correct any problems as needed. Building Feature: Embassy, corner moldings and other cast stone ❑ Rehabilitation /Restoration ® Maintenance Cost: $10,000 ❑ Completed ® proposed Contract Year of Proposed Work Completion: 2017, 2019, 2021 Description of work: All of the cast stone ornamentation must be refastened, stabilized and properly caulked to ensure positive attachment and avoid any water penetration that would allow ornament to become loose. All ornamental elements at corners of building and beneath roofline are character defining features to be protected. Building Feature: Embassy Hotel Neon Sign ❑ Rehabilitation /Restoration ® Maintenance Cost: $1,500 ❑ Completed ® Proposed Contract Year of Proposed Work Completion: 2017, 2019, 2021 Description of work: The Embassy Hotel sign is a feature of the building that should be retained. Routine maintenance of metal and neon tubes will be required to ensure sign is attached securely. All adjacent plant materials must be trimmed to avoid damage from new growth. Building Feature. Rear Patio - Tile Floor ❑ Rehabilitation /Restoration ® Maintenance I Cost: $7,000 ❑ Completed ® Proposed Contract Year of Proposed Work Completion: 2017, 2019, 2021 Description of work: Perform ongoing repair and maintenance. Tiles may be replaced periodically if cracked ordamaged. Building Feature: Water Fountain in Front Yard Rehabilitation /Restoration ® Maintenance Cost: $3,500 ❑ Completed ® Proposed Contract Year of Proposed Work Completion: 2017, 2019, 2021 Description of work: Perform on -going repair and maintenance. ESTIMATED INVESTMENT ON EXTERIOR 1 $266,000 INTERIOR: BUILDING SYSTEMS and STRUCTURAL Building Feature: Main first floor structure ❑ Rehabilitation /Restoration ❑ Maintenance Cost: $3,000 ❑ Completed ® Proposed Contract Year of Proposed Work Completion: 2016 Description of work: Install sister joists under interior guest room to repair earthquake damage presumed to be from 1994 Northridge quake (per structural report). Building Feature: Piping and Plumbing ❑ Rehabilitation /Restoration ® Maintenance Cost: $20,000 ❑ Completed ® Proposed Contract Year of Proposed Work Completion: 2016 Description of work: Building still has sections of galvanized pipe. Replace sections with copper as required due to leaks or breakage. Intent is to have entire system replaced with copper over next 10 years. Building Feature. HVAC - Furnace ❑ Rehabilitation /Restoration ® Maintenance Cost: $20,000 ❑ Completed ® Proposed Contract Year of Proposed Work Completion: 2019 Description of work: Replace furnace with new unit. Building Feature: Electrical Panel Upgrades ❑ Rehabilitation /Restoration ® Maintenance Cost: $5.000 ❑ Completed ® Proposed Contract Year of Proposed Work Completion: 2014 - 2024 Description of work: Add circuits as needed to sub -panel due to electrical needs of building for service upgrades, and to avoid overloading. Building Feature: Stucco Exterior Walls ❑ Rehabilitation /Restoration ® Maintenance Cost: $10,000 ❑ Completed ❑ Proposed Contract Year of Proposed Work Completion: 2021 - 2024 Description of work: Stucco will be inspected and all cracks filled. Any spalling will be repaired with matching material and textured to match adjacent surfaces as required. I!7 - Building Feature: Elevator ❑ Rehabilitation /Restoration ® Maintenance Cost: $3,000 ❑ Completed ❑ Proposed Contract Year of Proposed Work Completion: 2014 - 2024 Description of work: Elevator is original to the building and requires on -going maintenance and repairs that require higher than normal repair costs due to its age. Building Feature: Elevator_ ® Rehabilitation /Restoration ❑ Maintenance Cost: $30,000 ❑ Completed ❑ Proposed Contract Year of Proposed Work Completion: 2020 - 2024 Description of work: Elevator is original to the building and will require replacement of the relays and replacement of motor. Exterior Feature: Painting ❑ Rehabilitation /Restoration ® Maintenance Cost: $15,000 ® Completed ❑ Proposed Year Work Completion: 2014-2024 Description of work: Ongoing paint patching and related maintenance. Repainting every 3 - 5 years. Building Feature: Tile Floors, Stairways, and Decorative Handrails ❑ Rehabilitation /Restoration ® Maintenance Cost: $2,500 Completed ® Proposed Contract Year of Proposed Work Completion: 2017, 2019, 2021 Description of work: Perform on -going repair and maintenance. Building Feature: Leaded Glass Windows ❑ Rehabilitation /Restoration ® Maintenance Cost: $2,500 ❑ Completed ® Proposed Contract Year of Proposed Work Completion: 2017, 2019, 2021 Description of work: Perform on -going repair and maintenance. H Building Feature: Wood Beam Ceiling with Decorative Painting ❑ Rehabilitation /Restoration ® Maintenance Cost: $1,500 ❑ Completed ® Proposed Contract Year of Proposed Work Completion: 2017, 2019, 2021 Description of work: Perform ongoing repair and maintenance. ESTIMATED INVESTMENT ON INTERIOR $112,500 TOTAL EST. INVESTMENT OVER 10 YEARS 1 $378,500 v �FQ 2 t No. 19656 OF m 3. Overview of courtyard after landscaping was replaced in 2013. Santa Monica, CA 90403 August 12, 2013 .r(877) 268 -8481 - www.HistorfcConsultants.com S. Internal corner of building where planting was removed to resolve water penetration into foundation. New drainage and waterproofing resolved problem, but water ponding must be t d t v id further enetration into foundation moni ore o a o p 1001 3rd St., Santa Monica, CA 90403 August 12, 2013 8. Overall building perspective from northwest corner of Washington and 3rd Street. Indicates various roof forms with clay tiles, various applied ornament, windows, and balconies. 1001 3rd St., Santa Monica, CA 90403 August 12, 2013 . Taro Jones Hamacher (877) 268 -8481 - www.HistoricConsultants.com I 9. Most of the primary roof sections are low- pitched gables with red clay roof tiles. Walls are smooth textured stucco, original windows are wood casement sash that need ongoing painting. 1001 3rd St., Santa Monica, CA 90403 August 12, 2013 Tara Jones Hamacher (877) 268 -8481 - WWW.Histor!cConsultants.corn 10. Overall building perspective from northeast corner of property, also indicates various pitched and flat roof sections, and various components of the exterior. - 1001 3rd St.,. Santa Monica, CA 90403 August 12, 2013 Tara Jones Hamacher (877) 268 -8481 - www.HistoricConsultants.com 11. Rear elevation with brick exposed. Walls were repointed. Maintaining sound mortar joints will be a ongoing maintenance item. 1001 3rd St. Santa Monica CA 90403 August 12 2013 Tara Jones Hamacher (877) 268 -8481 - www.HistoricConsultonrs.com t 12. Typical wood window, recently painted, Ongoing maintenance of wood windows will be necessary on an ongoing basis. 1001 3rd St., Santa Monica, CA 90403 August 12, 2013 Tara JonesH h 87 amac er( 7j268- 8481 - www.HistoricConsultants.com 13. Non - original windows may be replaced overtime with new wood windows to match /restore the original condition. 1001 3rd St., Santa Monica, CA 90403 August 12, 2013 Tara Jones Hamacher (877) 258 -8481- www.HistoricConsultants,com 14. Prominent wndows in penthouse are character defining elements. Replacement of windows with like -kind may be a future consideration. 1001 3rd St., Santa Monica, CA 90403 August 12, 2013 Tnrn fnnoc Hmm�rhar /X771 96R_9AAI . un.v.v Hictnrirr'nn<ulhnntc �nm r 1 16. Corner moldings will be inspected to ensure proper anchoring and that no water can penetrate behind the cast stone. Same condition applies to cast stone ornament at windows and roofline. 100131d St., Santa Monica, CA 90403 August 12, 2013 Tara Jones Hamacher (877) 268 -8481- www.HistoricConsultants . com 0 I. 17. Embassy Hotel neon sign to be retained as an ornamental feature. Periodic painting of metal will be required, and potentially repair of neon tubes. 1001 3rd St., Santa Monica, CA 90403 August 12, 2013 Tara Jones Hamacher (877) 268 -8481 - www.HistoricConsultants.com 18. Roof soffits, cast stone ornament to be cleaned and joints with wall caulked as needed to stop any water penetration behind panel. 1001 3rd St., Santa Monica, CA 90403. August 12, 2013 Tara Jones Hamacher (877) 268 -8481- www.HistoricCpnsultants.com for ponding of water and keep joint with wall surface caulked and sealed. 1001 3rd St Santa Monica CA 90403 A t 12 2013 , ugus , Tara Jones Hamacher (877) 268 -8481 - www.HistoricConsultants.com 20. Interior lobby area. Features are intact, notably ceiling beams, flooring, and ornamental tiles. Ongoing cleaning and maintenance will be required. 1001 3rd St, Santa Monica, CA 90403 August 12, 2013 Tara Jones Hamacher (877) 268 -8481 - www.Histor!cConsultants.com 21. Ornamental ceramic tile flooring in patio is notable. - Maintenance will be needed to ensure joints are solid. 1001 3rd St., Santa Monica, CA 90403 August 12, 2013 - Tara Jones Hamacher ( 877) 268 - 8481 - www.HistoricConsultonts.com 22. ongoing painting and maintenance will be required on the ceiling. 1001 3rd St., Santa Monica, CA 90403 August 12, 2013 Tara Jones Hamacher (877) 268 -8481 - WWW.HistoricCoostiltants.com 23. Stairs from Lobby to Main Hallway are notable ornamental 25. Interior of typical room. 1001 3rd St., Santa Monica, CA 90403 August 12, 2013 Tara Jones Hamacher (877) 268 -8481- www.HistoricConsultants.com 26. Representative bathroom. Fixtures and all related plumbing will need ongoing maintenance, and in some cases, original piping will need to be replaced with new copper. 1001 3rd St., Santa Monica, CA 90403 August 12, 2013 Tara Jones Hamacher (877) 268 -8481 - www.HistoricConsuttants.com 28. Piping and plumbing. 10013rd St, Santa Monica, CA90403 Augustl2, 2013 Tara Jones Hamocher(877) 268 -8481- www,HistoricConsultants.com ATTACHMENT C 128 Hollister Avenue: 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: 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. XXXX (CCS) HISTORIC PROPERTY PRESERVATION AGREEMENT THIS AGREEMENT is made and entered in to this 22nd day of October, 2013,by and between the City of Santa Monica, a municipal corporation (hereinafter referred to as the "City ") and Michael Burns (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 128 Hollister Avenue; 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 14, 2003, 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 22, 2013 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 128 Hollister Avenue; 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, 2014 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: Michael Burns 128 Hollister Avenue Santa Monica, CA 90405 10. No Joint Venture. None of the terms, provisions or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors or assigns, nor shall such terms, provisions or conditions cause them to be considered joint venturers or members of any joint enterprise. 11. Hold Harmless. As between the City and the Owner, the Owner is deemed to assume responsibility and liability for, and the Owner shall indemnify and hold harmless the City and its City Council, boards and commissions, officers, agents, servants or employees from and against any and all claims, loss, damage, charge or expense, whether direct or indirect, to which the City or its City Council, boards and commissions, officers, agents, servants or employees may be put or subjected, by reason of any damage, loss or injury of any kind or nature whatever to persons or property caused by or resulting from or in connection with any negligent act or action, or any neglect, omission or failure to act when under a duty to act, on the part of the Owner or any of its officers, agents, servants, employees or subcontractors in this or their performance hereunder. 12. Attorneys' Fees and Costs. In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or breach thereof, the prevailing party shall be entitled to recover from the losing party reasonable expenses, attorneys' fees and costs. 13. Severability. In the event any limitation, condition, restriction, covenant or provision contained in this Agreement is held to be invalid, void or unenforceable by any court or competent jurisdiction, the remaining portions of this Agreement shall, nevertheless be and remain in full force and effect. 14. Applicable Law. All questions pertaining to the validity and interpretation of this Agreement shall be determined in accordance with the laws of California applicable to contracts made to and to be performed within the state. 15. Recordation. Within 20 days of execution, the parties shall cause this Agreement to be recorded in the official records of the County of Los Angeles. 16. Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. 17. Sale or Conversion of Property. In the event of sale or conversion of the Historic Property, the Conditions, Covenants and Restrictions (C. C. & R.'s) for the Historic Property, if required, shall incorporate by reference all obligations and duties of the parties created by this Agreement. 18. Prohibition Against Discrimination. Owner agrees not to discriminate or impose any restrictions on the sale, lease, or occupancy of the Subject Property on the basis of sex, race, religion, ancestry, national origin, age, sexual preference, pregnancy, marital status, family composition, or the potential or actual occupancy of minor children. Owner further agrees to take affirmative action to ensure that no such person is discriminated against for any of the aforementioned reasons. IN WITNESS WHEREOF, City and Owner have caused this Agreement to be executed as of the day and year first written above. APPROVED AS TO FORM: CITY OF SANTA MONICA A Municipal Corporation, By: ROD GOULD City Manager OWNER: By: MARSHA JONES MOUTRIE MICHAEL BURNS City Attorney ATTEST: SARAH GORMAN 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. WITNESS my hand and official seal. SEAL Notary Description of Instrument blic in and for said State Title: Historic Property Preservation Agreement Property location: 128 Hollister Avenue Number of Pages: 5 plus Exhibits A, B, and C 6 STATE OF CALIFORNIA ss. COUNTY OF LOS ANGELES On L 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: 128 Hollister Avenue 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: 128 Hollister Avenue Number of Pages: 5, plus Exhibits A, B, and C 0 F:E1:If3IIl VTW LEGAL DESCRIPTION APN: 4288 - 016 -010 LOT 13 AND THE EAST HALF OF LOT 14 IN BLOCK 2 OF WADSWORTH AND HOLLISTER TRACT, IN THE CITY OF SANTA MONICA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 2, PAGE(S) 9 AND 10 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 4288 - 016 -008 AND 4288 - 016 -009 LOT 12 AND THE WEST HALF OF LOT 11 IN BLOCK 2 OF WADSWORTH AND HOLLISTER TRACT, IN THE CITY OF SANTA MONICA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 2, PAGE(S) 9 AND 10 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. 9 EXHIBIT "B" HISTORIC PROPERTY PRESERVATION AGREEMENT PROPERTY MAINTENANCE CITY OF SANTA MONICA As required by Landmarks Ordinance Section 9.36.190, all designated landmarks and structures located within a historic district shall be maintained in good repair and preserved against deterioration through the prompt repair of any of the following: 1. Facades which may fall and injure members of the public or property 2. Deteriorated or inadequate foundation, defective or deteriorated flooring or floor supports, deteriorated walls or other vertical structural supports. 3. Members of ceilings, roofs, ceiling and roof supports or other horizontal members which age, split or buckle due to defective material or deterioration. 4. Deteriorated or ineffective waterproofing of exterior walls, roofs, foundations or floors, including broken windows or doors. 5. Defective or insufficient weather protection for exterior wall covering, including lack of paint or weathering due to lack of paint or other protective covering. 6. Any fault or defect in the building which renders it not properly watertight or structurally unsafe. In addition, the following maintenance measures are also required for the subject property: 1. Maintain all electrical and plumbing systems in safe, working order; repair and replace as necessary. * *The property owner is required to obtain all necessary building permits and planning permits such as a Certificate of Appropriateness for the work specified herein.** 10 EXHIBIT "C" HISTORIC PROPERTY PRESERVATION AGREEMENT PROPOSED HOME IMPROVEMENTS The following projects shall be completed by the property owner of 128 Hollister Avenue over the initial ten (10) year term of the contract. Item Year Task 12 2016 Maintenance Tasks 1 Annual Repair and replace deteriorated portions of dimensional asphalt shingle roof 2 Annual Clean and repair roof gutters 3 Bi- Annual Inspect siding, repair and replace as necessary 4 Bi- Annual Inspect and repair corner caps 5 Annual Inspect, repair and repainting of windows, as necessary 6 Annual Landscape maintenance 7 Annual Inspect, repair exterior wood details (bargeboard, decorative rafter tails), as necessary 8 Annual Inspect and refinish interior floors, as necessary 9 2019 Inspect electrical, mechanical, plumbing systems Termite prevention 10 Annual Pest Control inspection and protection 11 Bi- Annual Mold, mildew inspection Rehabilitation /Restoration Tasks 11 2014 -15 Repair and repaint wood clapboard siding 12 2016 Replace main entry door with suitable replacement 13 2017 Rehabilitate historic site features (front porch stoop, driveway, remove asphalt infill of mowstrip replace with grass) 14 2015 Remove extant knob and tube wiring 15 2014 Foundation structural upgrade "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 ESTIMATE FINANCIAL ANALYSIS FOR MILLS ACT CONTRACT ** 128 Hollister Avenue REVENUES 1) Est. Monthly Rental Income 2) Annual Rental Income Current $6,000 (estimate only * *) $72,000 ANNUALEXPENSES Gen. Expenses: 25% SFD, Others 30% $18,000 Vacancy loss 3% $2,160 8) Total Expenses $20,160 NET OPERATING INCOME (NOI) $51,840 (Line 2 Minus 8) CAPITALIZATION RATE 9) Interest Component 3.75% 10) Historic Property Risk 4% (2 %, or 4% for SFD) 11) Property Tax Component 1% 12) Amortization Component 0.5% 13) Capitalization Rate 9% (Sum Line 9 - 12) 14) Mills Act Assessment $560,432 (NOI/ Line 13) 15) Tax Under Mills Act $5,801 (Line 14 X .01035146) 16) Current Tax $46,342 17) Tax Savings (Line 16 - Line 15) $40,541 18) Annual Costs to City (Line 17 X 16 %) $6,487 * *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. ARCHITECTURAL REPORT 128 HOLLISTER AVENUE „ E] Chattel, Inc. i Historic Preservation Consultants August 15, 2013 VIA E -MAIL Michael Burns 128 Hollister Avenue Santa Monica, CA 90405 Re: 128 Hollister Avenue, Santa Monica, CA Architectural Report Dear Mr. Burns: This report documents the existing condition and character - defining features of 128 Hollister Avenue in Santa Monica, California (subject property) for the purpose of entering into a Mills Act Contract with the City of Santa Monica (City). The subject property contains two buildings: a two -story single - family house (house), located on the front of the lot and a one -story casita, or minor ancillary building (casita), located at the rear of the parcel. The house was locally designated as a Landmark in 2003 for being one of the City's most intact examples of,American Foursquare style, a symbol of early growth in the Ocean Park area, and an established visual feature of the South Beach residential tract. In 2010, the statement of official action designating the house was officially amended to include the entire parcel (Landmark parcel, Assessor's Parcel Number 4288- 016 -010), and not just the house. Furthermore, it should be noted that the parcel immediately to the east, adjacent to the Landmark parcel (adjacent parcel, Assessor's Parcel Number 4288 -016 -011), has functioned historically as part of 128 Hollister and is currently the site of its swimming pool and additional site features (this parcel was the location of a garage before it was replaced with the swimming pool). As a Landmark, exterior rehabilitation will be reviewed by the Landmarks Commission for conformance with the Secretary of the Interior's Standards for the Treatment of Historic Properties (Secretary's Standards). This Architectural Report follows on our May 30, 2013 site visit and includes photographs of the subject property's existing condition, in addition to recommendations for future work. General Description The house was constructed c. 1905 in the Ocean Park area of Santa Monica. The casita was built sometime between 1909 and 1918 on the rear of the property and operated for a period as a rental unit. The adjacent parcel was the site of a one -car garage constructed in 1962 and then demolished in 2003 to allow for addition of the existing swimming pool. The house is a two -story single- family wood frame building located on the south side 6f Hollister Avenue. It is roughly square- shaped in plan and features a hipped roof with off- cent�r gabie-fad z 0 ro ti w m ro z 0 m 128 Hollister Avenue Architectural Report August 15, 2013 Page 2 north over the main entrance. The roof is covered in dimensional asphalt shingles. Both floors at the primary north fagade include infilled porches spanning the entire width of the house. The ground floor porch is infilled with a continuous band of wood divided light fixed pane windows. The main entrance is located off center and includes French doors. The second floor porch is infilled with a continuous band of wood casement windows. Bands of windows at both floors return at the east and west elevations. Original windows are extant within the second floor porch and the original main entrance door is extant within the ground floor porch. Randomly spaced wood casement and double -hung windows are located at the remaining elevations. Detailing throughout the exterior of the house is minimal, limited to barge board, decorative rafter tails, and simple milled window sills. The building is entirely clad in wood clapboard siding. The one -story L- shaped casita is located behind the house on the southwest corner of the Landmark parcel and is not visible from the street. This simple wood frame building is of single wall construction and features double -hung wood sash windows and simple paneled wood doors. The subject property contains a number of early site features, including a driveway with mowstrip adjacent to the west elevation of the house, a raised concrete curb running along the north boundary of the parcel, and a concrete stoop leading to the main entrance. Other features, such as the white picket fence, and taller wood fence separating the street facing portion of the parcel from the rear appear to be contemporary. Furthermore, there do not appear to be any historic plantings located on the subject property. Certificate of Appropriateness A Certificate of Appropriateness was filed for an addition to 128 Hollister by Frederick Fisher and Partners, Architects. Plans dated April 8, 2013, prepared by Frederick Fisher and Partners, Architects, detail construction of a two -story 2,000 square foot "L- shaped" addition with habitable basement, connected to the east elevation of the house. The recessed connection between the addition and house will create a courtyard in front of the property, while the rear of the property will incorporate a new swimming pool and patio and walkway to the casita. As part of the work associated with the addition, interior renovation of the house will take place. Renovation of the casita is not included in the scope of work for the addition. The addition to the subject property was found to be in conformance with the Secretary's Standards by the Santa Monica Landmarks Commission on May 13, 2013. The addition is described in further detail in this report. General Recommendations Considering its age, the subject property appears to be in good condition. Routine maintenance and structural upgrade of the house foundation is recommended to prolong the life of the subject property and maintain the character defining- features that contribute to its Landmark status. As part of the work associated with construction of the addition, we recommend the following areas of work for 128 Hollister, to be completed at least biennially unless otherwise noted. Areas of Work Exterior Roof Building permits indicate the house was reroofed in 2003 and shingles were replaced in kind. Periodic repair and replacement of materials may be necessary within the next ten years; however the roof is currently in good condition. A new skylight is proposed for the east slope of the hipped roof. 128 Hollister Avenue Architectural Report August 15, 2013 Page 3 Recommendations • Inspect roof and replace individual shingles as necessary. • Service all gutters and downspouts regularly to ensure water.flow away from building foundation, repair or replace deteriorated gutters and downspouts in kind. • Annually clean all gutters. Exterior Finishes A number of wood details on the exterior of the subject property, such as the decorative rafter tails and milled window sills, appear to be in relatively good condition. However, wood clapboard siding, which is a significant character - defining feature, is obscured by multiple layers of paint and the top layer is in poor condition, especially on the south elevation. Rust is also evident at corner caps, or metal sheathing over mitered corners of the clapboard siding, which is common for buildings near the ocean. Dense landscaping adjacent to the house and vines growing against portions of the exterior cover wood siding and trap moisture against this surface, exacerbating deterioration. Recommendations • Engage a building materials conservator to determine best practice to prepare existing wood clapboard siding for repainting. Follow recommended course of action. • Consider hiring a building materials conservator to perform paint analysis to determine a historically accurate paint scheme for the house. • Annually inspect all exterior elevations for evidence of cracking and water damage. • Maintain finish of wood details. • Inspect wood for termites, follow recommended courses of action. • Assess condition of corner caps to determine when they should be replaced. Consider replacement with a rust resistant metal (galvanized steel), or alternative non -metal material. • Annually clean up dirt and plant materials near house and remove all vines growing against exterior to ensure wood siding does not come in contact with landscape. Windows Most windows on the house were replaced with compatible dual - glazed windows that appear to be in good condition. The appropriately thin muntins of these contemporary windows do not detract from historic character of the house. The ground and second floor porches were enclosed as early as 1918. Original windows are extant within interior spaces of the enclosed porches. Recommendations Annually inspect windows for damage and repair deteriorated portions as necessary. • Repair and repaint window sash and frames as necessary, ensure strike surfaces remain unpainted to allow for proper operation. Main Entrance The existing main entrance to the house may date to the porch infill as early at 1918; however, it appears to be altered at a later unknown date. The double French door does not appear to fit the opening properly, creating unusual connections to the adjoining sidelights and bulkhead that appear out of character with the rest of the house. Recommendations • Consider redesigning existing main entrance with a door that fits the entrance more properly, eliminating awkward sidelights and bulkhead. In our opinion a French door is an appropriate choice for this entrance as it communicates the nature of the enclosed porch. One option is to install a new main door that is more consistent with the American Foursquare style, creating a more seamless transition between the surrounding enclosed porch and front door. 128 Hollister Avenue Architectural Report August 15, 2013 Page 4 Another alternative is to install a contemporary door that ties the house with the proposed addition. If current zoning codes require a landing to be installed at entrance, replacement of the main entrance will not be feasible. Addition Proposed plans include a two -story addition (and basement), extending from the southeast corner of the house that will double its square footage. As stated previously, plans for the addition were found to be in conformance with the Secretary's Standards by the Santa Monica Landmarks Commission and were approved May 13, 2013. A number of steps have been taken to reduce the visual impact of the addition on the house. The building envelope of the addition is staggered and set back from the house to give visual prominence to the original building as well as present two distinct building masses from the street. A recessed glass "bridge" connects the addition and house, and has a lower roofline to allow for a visual separation and avoid conflict between the two rooflines. The ground floor of the bridge has no interior partitions so as to allow an uninterrupted view from the front courtyard into the backyard, lightening the connection to the house with a "see- through" quality. Use of smooth stucco and glass allow for material differentiation between the house and addition. Existing non - historic additions that read as lean -to structures will be removed to accommodate the new addition. Recommendations • Complete new addition per approved plans to mitigate potential visual impacts to house. • Assess condition of wood clapboard siding on existing non - historic additions to be removed to determine if material can be salvaged and used as replacement material on sections of house that have deteriorated beyond repair. Landscape Generally the landscape does not appear to retain any historic plantings, however, there are a few hardscape elements that could be rehabilitated to restore the early setting of the subject property. The prominent concrete front stoop of the main entrance is a character - defining feature of the house and should be retained. The driveway along the west elevation is also another early character - defining feature that contributes to its setting. The concrete appears to be in poor condition and mowstrip between the concrete strips has been infilled with asphalt. Plans for the approved addition include removal of a number of landscape features to harmonize the connection between the Landmark and adjacent parcels. The existing wood fence that separates the front of the property from the rear will be removed to accommodate the addition. The existing concrete pathway that runs between the Landmark and adjacent parcels will be removed and a new acid washed concrete slab patio and walkway is proposed for the courtyard. At the rear of the property, a new crushed granite walkway will be installed between the casita and addition. The pool, equipment shed, and small pond and rock feature on the adjacent parcel will be removed and a smaller pool will be installed. A number of trees will also be removed as part of the addition, including a mature ficus tree planted close to the casita. Recommendations • Repaint front porch stoop and inspect for cracks and water damage, repair or replace elements in kind as necessary. • Remove and replace asphalt infill of mowstrip with grass and evaluate condition of concrete driveway, repair or replace elements in kind as necessary. • Periodically inspect new pool for cracks and repair as necessary. • Consider planting drought resistant plants near foundation of house and casita so as to reduce water adjacent to the foundation. 128 Hollister Avenue Architectural Report August 15, 2013 Page 5 ® Remove trees that pose threat to buildings, including mature ficus tree planted near the casita. Electrical Mechanical and Plumbing It is unclear to what extent electrical, mechanical, and plumbing systems have been replaced within the house. Recommendations ® Inspect and maintain new electrical, mechanical, and plumbing systems of addition to ensure existing systems are not overly burdened. Avoid making new penetrations in interior and exterior historic fabric to the greatest extent feasible to accommodate MEP systems. Foundation In 2003, a demolition permit was requested for the house at the subject property that triggered its evaluation and listing as a Landmark. At the time, the house was not occupied and owners claimed structural work in the amount of $70,000 was necessary to make it habitable. This structural work does not appear to have been implemented, and it remains to be seen what structural work is necessary to upgrade the foundation. The foundation appears to be concrete with unreinforced cripple walls. Plans for the addition include structural work on the house foundation. Along a portion of the west elevation, a new footing and stem wall will be bolted to the existing footing to allow for installation of a stairway to the basement of the addition. Upon inspection of the foundation, additional work may be necessary to stabilize the house. Work may likely include bolting the bottom plate to the concrete stem wall and adding plywood shear panels to the interior of the cripple walls. Recommendations • Collaborate with structural engineer to inspect foundation of house and determine what additional structural upgrades are necessary to seismically upgrade the house. Implement recommended course of action. • Work with project architect to ensure upgrade to foundation of the house causes minimal damage to historic fabric and exterior finish of house.. Casita Although the casita is not specifically called out in the Landmark nomination, it is located on the southwest corner of the Landmark parcel and could potentially be treated as a contributing feature of the subject property. Current plans do not include rehabilitation of the casita. Recommendations ® If future work on casita is proposed, seek a Certificate of Appropriateness from the Santa Monica Landmarks Commission. All work shall be in conformance with the Secretary's Standards. 128 Hollister Avenue Architectural Report August 15, 2013 Page 6 Interior Interior Finishes As stated in the Santa Monica Mills Act application materials, interior alterations are not subject to review but may be described in the Architectural Report. There are a number of early and original interior finishes that are character defining features of the house. As part of the addition, some of these features will be removed to accommodate contemporary living spaces. On the ground floor, significant interior finishes include, the living room with its plaster finish and crown molding, the dining room with its barrel - vaulted ceiling, the original main entrance door, and stairway. The plaster ceiling and crown moldings within the living room will be retained. The dining room appears to have been altered as it was expanded approximately three feet to the south and a bay window appears to have been added to the west, as evidenced by changes in the hardwood floor. Nevertheless it has a distinctive barrel vaulted ceiling that will be removed as the dining room will be opened up to transition into the interior space of the addition. The original main entrance door (now on the interior) is a feature that should be retained or salvaged for future use. The stair treads and railings of the stairway are character - defining features of the interior that will be removed, as a new stairway will be installed to serve the habitable basement in the addition. The second floor has doors with transoms and plaster details on bedroom walls to the rear of the house; while the infilled porch still reads as such, with its tongue and groove ceiling, porch windows, and clapboard siding (now on the interior), and is located at the front of the house. Other finishes have been altered over the course of the property's history. The wood floor appears to be a later alteration, based on the width of the planks. The textured stucco ceiling in a second floor bedroom is also an alteration. Recommendations ® Work with project architect to ensure some original and early interior finishes are retained. On the ground floor we recommend retention of the original main door and finishes within the living room. We recommend where the historic wall configuration is retained on the second floor, some retention of doors and transoms to the extent feasible. We also recommend that features within the infilled porch, such as the porch windows, tongue and groove ceiling, and wood clapboard siding, be retained to communicate its historic function as an exterior space. This report is intended to provide a general assessment of the current condition of the property; however, it is by no means comprehensive in scope of future work. Further inspections may be necessary to determine other specific work that should be implemented. Very truly yours, CHATTEL, INC. I HISTORIC PRESERVATIO NTS a q JAY By: obert Jay C a el, OA, President * C 27398 r 3 31 -Z Attachment: Figures 1 -37 %® RENEWAL OAT ARCHITECTURAL REPORT ATTACHMENT FIGURES 1 -37 123 HOLLISTER AVENUE 128 Hollister Architectural Report August 15, 2013 4 3 2 HOLLISTER AVDVUE ' " fflIN1i YF1,o -. UIOP�INY ' I I EtEYAIION ' i ,251J'Ft PIi11Yl IIY uuE _ l 5 13 - 115 l f ; N 51 II N C 1 Yt ]6.9 ]' 1 `®6g t_ r u s c nor 11 o� l OT 13 UT 12 I PORYIIOi I ji 14_l IV a 1 � `yam �1 Lot II � o i—r 7— -(- § — d), u ~ I t 8�, 1 II °k 91 t N, w 4.9 S`51<I I'S6'W jt. 6�Y^1@PN L2a 3P � uz —b':1 LINE Figure 1: Site plan of 128 Hollister. House is outlined in blue while casita is outlined in orange. Exterior photographs 2 -20 are keyed to this plan (Adapted from a survey prepared by Becker and Miyamoto, Inc., dated June 12, 2012) 128 Hollister Architectural Report August 15, 2013 Figure 2: 128 Hollister, north and east elevations of house, view south, 1983 (Santa Monica Public Library Image Archive) Figure 3: 128 Hollister, note adjacent parcel to east has functioned historically as part of subject property, view southeast (Chattel, 2013) 128 Hollister Architectural Report August 15, 2013 Figure 4: North and west elevations of house, view east (Chattel, 2013) Figure 5: East and North elevations of house, view south (Chattel, 2013) 128 Hollister Architectural Report August 15, 2013 Figure 6: Casita located to the rear of 128 Hollister, view north (Chattel, 2013) Figure 7: North elevation of casita, view south (Chattel, 2013) 128 Hollister Architectural Report August 15, 2013 Figure 8: Casita located to the rear of 128 Hollister, view southeast (Chattel, 2013) Figure 9: View of casita from adjacent parcel, view southwest (Chattel, 2U13) ,' k' 128 Hollister Architectural Report August 15, 2013 Figure 12: View south of swimming pool on adjacent parcel (Chattel, 2013) Figure 13: View southeast of adjacent parcel from street, note swimming pool is behind wood fence in background, (Chattel, 2013) 128 Hollister Architectural Report August 15, 2013 Figure 14: Detail of second floor showing decorative rafter tails and bargeboard, view south (Chattel, 2013) Figure 15: Main entrance to house does not fit the door frame properly and appears out of character with the American Foursquare style (Chattel, 2013) 128 Hollister Architectural Report August 15, 2013 Figure 16: Stoop in front of main entrance is a character - defining feature of the house, view south (Chattel, 2013) Figure 17: Driveway and mowstrip along west elevation of house, view southeast. Note casita in background (Chattel, 2013) 128 Hollister Architectural Report August 15, 2013 Figure 18: View of southeast corner of house, note non - historic "shed" additions will be removed (Chattel 2013) Figure 19: Detail view showing rust on corner caps (Chattel 2013) 128 Hollister Architectural Report Auqust 15, 2013 Figure 20: Detail of window sill showing multiple layers of paint that may compromise building envelope (Chattel 2013) 128 Hollister Architectural Report August 15, 2013 Figure 21: Ground and second floor plans of house (outlined in blue), and casita (outlined in or- ange). Interior photographs 22 -37 are keyed to these plans (Adapted from plans prepared by Fre- derick Fisher and Partners, Architects, dated April 15, 2013) �i - (, 30 H X31u�a . 1 Q 26 4®25 °; jI 22-0, it 24 0 I ol 28 1 II 1321f . 23 C ��rr'�� ,�� IF - Ili 3�4 i � 37 t i E D T1 1 EX 'r 7 NG FLOOR PLAN - GROUND LEVEL Y• F21 FLOOR PLAN - SECOND LEVEL & ROOF /• Figure 21: Ground and second floor plans of house (outlined in blue), and casita (outlined in or- ange). Interior photographs 22 -37 are keyed to these plans (Adapted from plans prepared by Fre- derick Fisher and Partners, Architects, dated April 15, 2013) 128 Hollister Architectural Report August 15, 2013 Figure 22: View of foundation showing cripple wall (Chattel 2013) Figure 23: View of foundation from one of the "lean to" additions (Chattel 2013) 128 Hollister Architectural Report August 15, 2013 Figure 24: Living room, view north (Chattel 2013) Figure 25: Living room, view west. Note original main entrance that is now an interior door (Chattel 2013) 128 Hollister Architectural Report August 15, 2013 Figure 26: Interior view of main entrance, view north, note interior windows (Chattel, 2013) Figure 27: Interior view of enclosed porch on ground floor, view northwest (Chattel, 2013) 128 Hollister Architectural Report August 15, 2013 Figure 28: Interior view of ground floor dining room, view north (Chattel, 2013) Figure 29: Interior view of stairway to second floor, view northeast (Chattel, 2013) 128 Hollister Architectural Report August 15, 2013 Figure 30: Interior view of second floor enclosed porch, view northeast (Chattel, 2013) Figure 31: Interior view of second floor enclosed porch, view south. Note exterior de- tails such as clapboard siding and tongue and groove ceiling are extant (Chattel, 2013) 128 Hollister Architectural Report August 15, 2013 Figure 32: interior view of transom window into second floor bedroom (Chattel, 2013) Figure 33: Interior view of second floor bedroom, view south (Chattel, 2013) 128 Hollister Architectural Report August 15, 2013 Figure 34: Interior view of casita (Chattel, 2013) Figure 35: Interior view of casita (Chattel, 2013) 126 Hollister Architectural Report August 15, 2013 Figure 36: Interior view of casita (Chattel, 2013) Figure 37: Interior view of casita (Chattel, 2013) 128 Hollister — necessity statement Constructed circa 1905, the American Foursquare house located at 128 Hollister has been an established visual feature of the Ocean Park area in Santa Monica for over a century. Given its age, the property appears to be in good condition. However, preliminary investigation of the house indicates there has not been structural retrofit of the concrete foundation and cripple wall since construction, placing it at risk of severe damage or demolition during the next earthquake. Additionally, the wood clapboard siding, a character defining feature of the house, needs to be retained to maximum extent possible, not an easy task given the house's proximity to the ocean. The current owners love the historic character of 128 Hollister and an addition to the home as well as renovation of the existing interior will allow them to stay and raise children in Ocean Park. Granting a Mills Act Contract will provide the homeowner with the financial incentive to identify and perform necessary structural work and periodic maintenance to ensure this Landmark remains an established visual feature for another century. ATTACHMENT D 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. 116'1 J ©R# \ > U - / / d # °® q {\ Q}& \ \�( / / d # °® q {\ Q}& \ \�( / / d # °® q LU ®/® % !) )§ � CD ( Lu _7a o,% LLI # °® q ®/® % !) � 2 ( ] \ o,% E n - « t! { \0 ) d- /)§ C-4 Reference: Resolution Nos. 10770 & 10771 (CCS) Agreement Nos. 9814 — 9816 (CCS)