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SR-10-27-2015-3F City Council Report City Council Regular Meeting: October 27, 2015 Agenda Item: 3.F 1 of 6 To: Mayor and City Council From: David Martin, Director, Planning and Community Development, ARB/Landmarks (PCD) Subject: Adopt a Resolution Authorizing the City Manager to Negotiate and Execute an Historic Property Preservation Agreement (Mills Act Cont ract) Between the City of Santa Monica and the Property Owner of 828 7th Street, a Designated Structure of Merit. Recommended Action Staff recommends that the City Council adopt the attached resolution authorizing the City Manager to negotiate and execute a Historic Property Preservation Agreement (Mills Act Contract) between the City of Santa Monica and the property owner of a designated Structure of Merit at 828 7th Street. Executive Summary The Mills Act is a state law that enables local governments to enter into contracts with owners of qualified historic properties to authorize a property tax reduction. The Mills Act is one of the few financial incentives available to owners of historic properties, and is an important tool for implementing the City’s Historic Preservation Element goals: to promote the designation and long-term preservation of historic resources through the provision of incentives and technical assistance. The City requires Mills Act Contract applicants to provide a report prepared by a qualified architect describing the condition of the structure and its restoration and maintenance needs in order to ensure the resource’s historic integrity and structural stability. The recommendations in the architect’s report are reflected in the proposed ten-year rehabilitation/restoration and maintenance plan which becomes an attachment to the Mills Act Contract entered into between the City of Santa Monica and a property owner. Staff verifies the information contained in the report and may identify additional restoration and maintenance items as necessary. Execution of the pending Mills Act Contract will result in reduced property tax revenue to the City estimated at $2,264 for FY 2016-2017 and a similar amount annually thereafter. Background In 1991, as part of a comprehensive revision to the City’s Landmarks Ordinance, the 2 of 6 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. On July 8, 2014, the Council passed an Ordinance that revised the City’s Mills Act Program by narrowing contract eligibility requirements and expanding applicant submittals. 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 prop erty 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. 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 3 of 6 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. Mills Act contracts are time-sensitive and must be recorded by the end of the 2015 calendar year in order to take effect the following year. 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. 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). 4 of 6 Property owners are also required to submit a report to the City on a biennial basis to demonstrate compliance with contract terms. In early 2016, staff is expecting to initiate its latest contract monitoring effort for all 62 of the City’s existing contracts, to ensure that contractual terms and obligations are being fulfilled and the properties are appropriately maintained. Discussion There is a single application for consideration in 2015: a one and one-half story Craftsman residence, constructed in 1911, locate d at 828 7th Street. In accordance with SMMC 9.56.270(G), this application is eligible for consideration as there are no confirmed or outstanding code violations applicable to the property; the property is not subject to delinquency in its taxes; and, a ll work that had been previously conducted was done in a manner that is consistent with the Secretary of the Interior’s Standards. The single-family residence was designated as a Santa Monica Structure of Merit in December 2014 as an excellent example of its architectural style, which is no longer prevalent in Santa Monica. 828 7th Street - A Craftsman Bungalow constructed in 1911. As part of the Mills Act application, an architect’s report was prepared by Diane A. Waingrow, AIA. The report (Attachments “A” and “B”) assesses the condition of the residence and identifies repair, restoration/rehabilitation and maintenance needs along 5 of 6 with a general schedule for completion of work. As discussed more fully in this report, the exterior of the residence and some of the more prominent features are described as being in very good condition and repair. Prior to its designation as a Structure of Merit, the house was remodeled which included a carefully preserved and restored building exterior. All new HVAC, plumbing and electrical systems were also installed as part of the recent rehabilitation/restoration work. Some interior renovation has been identified. Otherwise, the majority of work to be performed as part of the contract is maintenance related. Attachment F contains the estimated financial analysis for the property at 828 7th Street, which describes the projected benefit to be realized by the property owners and fiscal impact to the City. Staff estimates that the new contract will result in a property tax reduction equating to 76.3 percent. Commission Action The Landmarks Commission reviewed the proposed Mills Act Contract request at its Special Meeting held on September 17, 2015 and directed staff to forward a recommendation to the Council in support of this application. 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 this Mills Act Contract would result in a reduction in annual property tax revenue to the City in the amount of $2,264 for FY 2016-17 and subsequent years thereafter. A summary financial analysis table is included as Attachment B. Prepared By: Scott Albright, Senior Planner Approved Forwarded to Council 6 of 6 Attachments: A. Architects Report for 828 7th Street Mills Act application B. Photographs for Architects Report for 828 7th Street Mills Act application C. Mills Act Resolution of Approval for 828 7th Street D. Mills Act Contract for 828 7th Street E. 2015 Mills Act Financial_Analysis May 19, 2015 Mr. Richard Kuyama 828 7th Street Santa Monica, CA 90403 Report of Historic House located at: 828 7th Street Santa Monica, CA 90403 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, Craftsman style, single-family residence built in 1911. It was designated a Santa Monica Structure of Merit in December 2014 as “a nicely detailed and very intact example of a building type that characterized Santa Monica during the first quarter of the twentieth century: the Craftsman bungalow.” The house has a cross-gabled roof with exposed eaves and rafter tails, and is clad in asphalt composition shingles. The exterior walls are clad in cedar shake. The primary entrance is symmetrically located on the front facade and consists of a flush wood door with a square vision light, metal hardware, and wood surround. The door is accessed by a partial-width porch with a front-gabled roof supported on a wood beam, square wood posts and battered arroyo stone piers. Stepped outriggers support the overhanging rake. There is an interior arroyo stone chimney projecting from the south side of the roof. Fenestration consists primarily of coupled, fixed divided light wood windows with wood surrounds. There are small, fixed, divided-light, wood sash windows in the upper half story at the gable ends. The house is of wood frame construction with a rectangular plan, and has a 1923 one-room addition to the southwest. In 2014, the Owner did a whole house remodel and addition. The home was carefully preserved and restored on the exterior. Seismic improvements were made at the foundation. Additional living space was added at the second story in the rear, which is not visible from the street and therefore did not alter the roofline facing 7th street. The existing interior space was remodeled with new wood flooring, complete interior painting and a new bathroom. All new plumbing, electrical and HVAC was also installed. A new concrete entrance patio was incorporated at the front, a new wood-framed deck, railing and stairs were installed in the rear, stonework and landscape features were installed in the rear yard, and new concrete hardscape was installed for circulation around the site. The property has retained its historical integrity through all alterations and additions over time. The subject property is located on the south side of 7th Street, between Idaho and Montana Avenues. The property is bounded on the west by a one-story single-family residence, on the east by a three-story multi-family residential building, on the north by 7th Street, and on the south by an alley. The property contains the 1911 one-story, single-family residence in the front, set back from the street amidst lush landscaping, and a 1953 two-story, multi-family residence in the rear, which is not visible from the street. The single-family residence is solely the subject of this report. Exterior Finishes: The exterior of the house is in very good condition. The original character defining historical elements such as the decorative wood posts and beams at the front porch, the arroyo stone piers, and the door and window surrounds are all beautifully restored. In 2014, some of the exterior cedar shake shingles were replaced, and all the shingles and wood trim were primed and painted with authentic historical paint colors. Some of the windows and doors were restored and are in good condition. Recommendation: • Replace exterior cedar shake shingles, as needed, approximately 20% of the house exterior, with custom fabricated shingles to match original. • Maintenance of exterior woodwork by painting and sealing should be done periodically. • General repair of the window sashes should occur for their continued functioning. • Continue to maintain weatherproof sealing of all windows and doors. • Replace several rear exterior doors as needed. • Resurface front door and restore historic hardware. • Restore or replace historic door hardware as needed. Interior Finishes: The first floor interior finishes were partially remodeled in 2014 and are in good condition. The first floor has new wood flooring. The original first floor bathroom is newly remodeled. The kitchen, replaced most likely in the 1980’s, needs some updating. The interior lath and plaster walls are well maintained and newly painted in 2014. The existing mantle is not original and should be replaced with one that reflects the Craftsman style. The second floor addition that was done in 2014 is in excellent condition. Recommendation: • Upgrade kitchen: new kitchen sink and fixtures, refacing of kitchen cabinets as needed, new LED lighting. • Upgrade to LED lighting for energy efficiency where possible • Install new living room mantle. Use wood detailing and hand-painted tiles to reinforce the Craftsman style of the house. • Finish and maintain interior painting. • Repair some interior doors and replace tracks as needed. Roof and Foundation: A new 30 yr. asphalt shingle roof was installed in 2014. The foundation was retrofitted and shear wall was added per code in 2014. Recommendations: • Inspect and maintain roofing and flashing periodically, and repair as needed. • Continue general maintenance of gutters and downspouts with seasonal servicing to assure effectiveness. • Perform safety inspection of existing chimney; restore and maintain fireplace flue and brickwork and stonework as required. Install new chimney cap. • Add insulation to the original attic space and to floor joists at raised foundation. Electrical, Plumbing and Forced Air Units: In 2014, a new electrical service, all new copper plumbing, and a new forced air heating system were installed. Recommendations: • Continue electrical, plumbing and 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. • Replace spray irrigation with drip irrigation when possible. Prepared by: Diane Waingrow Architect 1014 Maroney Lane Pacific Palisades, California 90272 MILLS ACT Project Photography 828 7th Street Santa Monica, CA 90403 7th Street frontage Northwest corner Northeast corner Front porch detail Front porch detail Stone pier detail Joinery detail East sideyard East sideyard detail West sideyard detail Rear elevation Eave detail Eave detail Window and siding details Prepared by: Diane Waingrow Architect AIA 1014 Maroney Lane Pacific Palisades, CA 90272 May 19, 2015 1 Recording Requested By: Contract No. XXXX (CCS) City of Santa Monica When Recorded Mail To: City of Santa Monica 1685 Main Street Santa Monica, California 90401 Attention: City Attorney No Recording Fee Required Government Code Section 27383 HISTORIC PROPERTY PRESERVATION AGREEMENT THIS AGREEMENT is made and entered in to this 27th day of October, 2015 by and between the City of Santa Monica, a municipal corporation (hereinafter referred to as the "City") and Yasuhiko R. Kuyama (hereinafter referred to as the "Owner"). R E C I T A L S: A. California Government Code Section 50280, et seq. authorizes cities to enter into contracts with the owners of qualified historical property, as defined in Government Code Section 90280.1, to provide for the use, maintenance and restoration of such historical property so to retain its characteristics as property of historical significance; B. Owner possesses fee title to certain real property, together with associated structures and improvements thereon, located at 828 7th 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 December 8, 2014, the Landmarks Commission of the City of Santa Monica designated the Historic Property as a Structure of Merit pursuant to the terms and provisions of Santa Monica Municipal Code Chapter 9.36; and, D. On October 27, 2015 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 828 7th Street; and 2 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 t he 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, 2016 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 o riginal 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 Un ited States Secretary of the Interior's Standards for Rehabilitation, the State Historical Building Code, and the City of Santa Monica to the extent applicable. 3 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 longe r 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 Chapter s 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. 4 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: Yasuhiko R. Kuyama 828 7th Street Santa Monica, CA 90403 10. No Joint Venture. None of the terms, provisions or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors or assigns, nor shall such terms, provisions or conditions cause them to be considered joint venturers or members of any joint enterprise. 11. Hold Harmless. As between the City and the Owner, the Owner is deemed to assume responsibility and liability for, and the Owner shall indemnify and hold harmless the City and its City Council, boards and commissions, officers, agents, servants or employees from and against any and all claims, loss, damage, charge or expense, whether direct or indirect, to which the City or its City Council, boards and commissions, officers, agents, servants or employees may be put or subjected, by reason of any damage, loss or injury of any kind or nature whatever to persons or property caused by or resulting from or in connection with any negligent act or action, or any neglect, omission or failure to act when under a duty to act, on the part of the Owner or any of its officers, agents, servants, employees or subcontractors in this or their performance hereunder. 12. Attorneys' Fees and Costs. In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or breach thereof, the prevailing party shall be entitled to recover from the losing party reasonable expenses, attorneys' fees and costs. 13. Severability. In the event any limitation, condition, restriction, covenant or provision contained in this Agreement is held to be invalid, void or unenforceable by any court or competent jurisdiction, the remaining portions of this Agreement shall, nevertheless be and remain in full force and effect. 14. Applicable Law. All questions pertaining to the validity and interpretation of this Agreement shall be determined in accordance with the laws of California applicable to contracts made to and to be performed within the state. 15. Recordation. Within 20 days of execution, the parties shall cause this 5 Agreement to be recorded in the official records of the County of Los Angeles. 16. Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. 17. Sale or Conversion of Property. In the event of sale or conversion of the Historic Property, the Conditions, Covenants and Restrictions (C. C. & R.'s) for the Historic Property, if required, shall incorporate by reference all obligations and duties of the parties created by this Agreement. 18. Prohibition Against Discrimination. Owner agrees not to discriminate or impose any restrictions on the sale, lease, or occupancy of the Subject Property on the basis of sex, race, religion, ancestry, national origin, age, sexual preference, pregnancy, marital status, family composition, or the potential or actual occupancy of minor children. Owner further agrees to take affirmative action to ensure that no such person is discriminated against for any of the aforementioned reasons. IN WITNESS WHEREOF, City and Owner have caused this Agreement to be executed as of the day and year first written above. CITY OF SANTA MONICA A Municipal Corporation, By:_____________________________ RICK COLE City Manager APPROVED AS TO FORM: OWNER: _____________________________ By:_____________________________ MARSHA JONES MOUTRIE YASUHIKO R. KUYAMA City Attorney ATTEST: ______________________________ SARAH GORMAN City Clerk 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. WITNESS my hand and official seal. _______________________________ SEAL Notary Public in and for said State Description of Instrument Title: Historic Property Preservation Agreement Property location: 828 7th 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 _________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or entity upon behalf on which the person(s) acted, executed the instrument. I certify under Penalty of Perjury under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. _______________________________ SEAL Notary Public in and for said State Description of Instrument Title: Historic Property Preservation Agreement Property location: 828 7th Street Number of Pages: 5, plus Exhibits A, B, and C 8 STATE OF CALIFORNIA ) ) ss. COUNTY OF LOS ANGELES ) On __________________before me, _______________________________ personally appeared Rick Cole, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or entity upon behalf on which the person(s) acted, executed the instrument. I certify under Penalty of Perjury under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. _______________________________ SEAL Notary Public in and for said State Description of Instrument Title: Historic Property Preservation Agreement Property location: 828 7th Street Number of Pages: 5, plus Exhibits A, B, and C 9 EXHIBIT "A" LEGAL DESCRIPTION LOT F IN BLOCK 20 OF TRACT THE TOWN OF SANTA MONICA IN THE CITY OF SANTA MONICA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS SHOWN ON MAP FILED IN BOOK 3, PAGE 80 AND 81 OF MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. 10 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.** 11 EXHIBIT "C" HISTORIC PROPERTY PRESERVATION AGREEMENT PROPOSED RESTORATION/REHABILITATION TASKS The following projects shall be completed by the property owner of 828 7th Street over the initial ten (10) year term of the contract. Item Year/timing Task Maintenance Tasks 1 Every 5 years Maintenance of exterior shingles, trim 2 Annually Door/Window Function and Weatherproofing 3 Every 5 years Maintenance of interior plaster, trim 4 Annually Maintenance of roof, gutters, downspouts 5 Annually Maintenance of HVAC 6 Annually Landscape maintenance 7 Annually Maintenance of gates, hardscape, fences 8 Annually Irrigation maintenance 9 Every 5 years Termite prevention Rehabilitation/Restoration Tasks 10 2017-2019 Replace/restore exterior and interior doors/hardware 11 2018-2020 Chimney repair, new mantle 12 2019-2021 Replace cedar shake shingles (approximately 20%) 13 2019-2021 Insulation improvements 14 2019-2021 Energy efficient lighting improvements 15 2022-2024 Kitchen 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.** Attachment B 2014 -- SUMMARY OF ESTIMATE FINANCIAL ANALYSIS FOR MILLS ACT CONTRACTS** Property Address Est. Assessed Value (MILLS ACT) Current Tax (Prop. 13) Est. Tax (MILLS ACT) Est. Mills Act Tax as a % of Current Tax Est. Reduction in Property Tax City Revenue (Prop. 13) City Revenue (MILLS ACT) 828 7th Street $424,421 $18,541 $4,393 23.7%$14,148 $2,967 $703 ($2,264)2101 La Mesa Drive $0 $64,527 #REF!#REF!#REF!$10,324 #REF!#REF! City Revenue Reduction     Reference:    Resolution No. 10197   (CCS)  &   Agreement No. 10028  (CCS)