HomeMy WebLinkAbout2005-363
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RESOLUTION NO. 2005-363
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO ESTABLISHING THE APPLICATION PROCESS, REVIEW
PROCEDURES, AND REQUIRED CONTRACT PROVISIONS FOR THE
IMPLEMENTATION OF A MILLS ACT PROGRAM IN THE CITY OF SAN
BERNARDINO PURSUANT TO GOVERNMENT CODE SECTION 50280, ET SEQ.,
AND SETTING AN APPLICATION FEE
WHEREAS, California Government Code, Article 12, Section 50280, more commonly
known as the Mills Act, established legislation providing property tax relief for owners of
qualified historic properties who contract with a city to abide by reasonable preservation
requirements; and
WHEREAS, preservation agreements will have beneficial effects on residential
neighborhoods, businesses, community pride, and regional image;
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The program implementing California Government Code, Article 12,
Section 50280 et seq. (known as the Mills Act) for the purpose of preserving, rehabilitating,
and maintaining designated historic resources, shall be known as the Mills Act.
SECTION 2. The Mayor and Common Council hereby directs the City Administrator
or his/her designee to develop and process applications for properties seeking qualification and
participation in the Mills Act. The City Administrator will also review and make a
recommendation to the Mayor and Council on any application submitted pursuant to the Mills
Act. The Mayor and Common Council is the final authority on the authorization and approval
of any application pursuant to the Mills Act.
SECTION 3. The form Preservation Agreement to be used in the Mills Act is attached
and incorporated herein as Exhibit "A". The Mayor and Council hereby directs the City
Administrator or his/her designee to amend and modify the form Preservation Agreement as
deemed necessary and appropriate, in consultation with the City Attorney. The terms of the
form Preservation Agreement shall always comply with California Government Code, Article
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2005-363
RESOLUTION OF THE MAYOR AND-COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO ESTABLISIDNG THE APPLICATION PROCESS, REVIEW
PROCEDURES, AND REQUIRED CONTRACT PROVISIONS FOR THE
IMPLEMENTATION OF A MILLS ACT PROGRAM IN THE CITY OF SAN
BERNARDINO PURSUANT TO GOVERNMENT CODE SECTION 50280, ET SEQ.,
AND SETTING AN APPLICATION FEE
12, Section 50280 et seq. (known as the Mills Act). The maintenance, repair, rehabilitation,
and/or restoration standards applicable to the subject property shall be set forth in the form
Preservation Agreement. In consideration for abiding with the terms of the Preservation
Agreement, the owner of the subject property shall be entitled to qualify for a reassessment of
the historic property, pursuant to Chapter 3, Part 2, of Division 1 of the California Revenue and
Taxation Code. Each Preservation Agreement shall be subject to the approval of the Mayor
and Common Council.
SECTION 4. To limit the fiscal impact of the Mills Act to the City of San Bernardino,
the City of San Bernardino shall not enter into or execute more than ten (10) Preservation
Agreements per calendar year. Applications shall be accepted during the month of November
only, during normal business hours. The ten (10) applicants will be randomly selected from all
eligible applications submitted.
SECTION 5. Eligibility for a Preservation Agreement shall be limited to the owners of
those properties identified in the San Bernardino Historic Resources Reconnaissance Survey,
Volume 2 - Tabular List of All Surveyed Historic Resources, dated April 30, 1991. The Mayor
and Council hereby find that all properties contained in this list shall be considered Qualified
Historic Properties for purposes of the Mills Act, pursuant to California Government Code
Section 50280. I (b)
SECTION 6. An application fee of $200 shall be paid by each property owner that has
a Preservation Agreement approved by the Mayor and Common Council.
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2005-363
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO ESTABLISIDNG THE APPLICATION PROCESS, REVIEW
PROCEDURES, AND REQUIRED CONTRACT PROVISIONS FOR THE
IMPLEMENTATION OF A MILLS ACT PROGRAM IN THE CITY OF SAN
BERNARDINO PURSUANT TO GOVERNMENT CODE SECTION 50280, ET SEQ.,
AND SETTING AN APPLICATION FEE
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
joint
and Common Council of the City of San Bernardino at a regular meeting thereof, held on the
7th day of November, 2005, by the following vote, to wit:
Council Members: AYES
ESTRADA X
LONGVILLE X
-
MCGINNIS X
DERRY X
KELLEY X
JOHNSON X
MCCAMMACK X
NAYS
ABSTAIN ABSENT
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The foregoing resolution is herehy approved rIJ #. day of N~embor ,
2005.
udith Valles, Mayor
ity of San Bernardino
Approved as to
Form and legal content:
James F. Penman, City Attorney
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Exhibit "A"
HISTORIC PROPERTY PRESERVATION AGREEMENT
("MILLS ACT CONTRACT")
THIS AGREEMENT is made this
San Bernardino, a municipal corporation ("City") and
("Owner").
, by and between the City of
RECITALS
I. California Government Code section 50280, et. Seq. allows cities the discretion to
enter into contracts with the owners of qualified historic properties, as that term is defined in
Government Code section 50280.1, for the purpose of providing for the use, maintenance,
protection, and restoration of such historic property so as to retain its characteristics as property
of historic significance.
2. Owner holds fee title in and to that certain real property, together with associated
structures and improvements thereon, general located at the street address
San Bernardino, California ("Historic Property"). A legal description of the Historic Property is
attached hereto as Exhibit "A" and incorporated herein by this reference.
3. By authorizing this agreement, the Common Council hereby designates the Historic
Property as a Qualified Historic Property as defined by Resolution 2005 - _, Section 5.
4. City and Owner desire to enter into this,Agreement for the purpose of protecting and
preserving the characteristics of historical significance of the Historic Property that help provide
the community with its own unique civic identity and character.
5. Owner, in consideration for abiding by the terms of this Agreement, shall be entitled
to qualify for a reassessment of valuation of the Historic Property, pursuant to the provisions of
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chapter 3, Part, 2, of Division 1 of the California Revenue and Taxation Code, and any
corresponding adjustment in property taxes resulting therefrom.
TERM
NOW, THEREFORE, the City and Owner in consideration of mutual covenants and
conditions set forth herein, do hereby agree as follows:
1. Effective Date and Term of Al!reement. This Agreement shall be effective and
commence on 200_ ("Effective Date") and shall remain in effect for
a term often (10) years thereafter.
2. Yearlv Renewal. Each year upon the anniversary of the Effective Date ("Renewal
Date"), an additional one (1) year shall automatically be added to the remaining term of the
Agreement unless a notice of nonrenewal is delivered as provided in Section 3 of this
Agreement.
3. Nonrenewal. If either the Owner or City desires in any year not to renew this
Agreement, Owner or City shall serve a written notice of nonrenewal upon the party in advance
of the Renewal Date ("Notice ofNonrenewal"). The Notice ofNonrenewal shall be effective
only if served by Owner upon City at least ninety \90) days prior to the Renewal Date, or if
served by City upon Owner, the Notice ofNonrenewal shall be effective only if served upon
Owner at least sixty (60) days prior to the Renewal Date. If either City or Owner serves a Notice
of Nonrenewal in any year, this Agreement shall remain in effect for the balance of the term then
remaining.
4. Owner Protest ofCitv Nonrenewal. Within fifteen (15) days of Owner's receipt of the
Notice ofNonrenewal from City, Owner may file with City a written protest of the Notice of
Nonrenewal. Upon receipt of the written protest, the Common Council shall set a hearing prior
to the expiration of the Renewal Date of this Agreement. Owner may furnish the Common
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Council with any information which Owner deems relevant and shall furnish the Common
Council with any information it may require. The Common Council may, at any time prior to
the annual Renewal Date, withdraw its Notice ofNonrenewal.
5. 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 characteristics of the cultural and historical
significance of the Historic Property. Compliance or non-compliance with this section shall be
determined by the Director of Development Services or hislher designee. In addition, Owner
shall obtain any applicable permits necessary to protect, preserve, restore, and rehabilitate the
Historic Property so as to maintain its historical and cultural significance.
B. Owner shall, where necessary, repair, maintain, restore, and rehabilitate the Historic Property.
The condition of the exterior of the Historic Property on the effective date of this Agreement is
documented in photographs attached as Exhibit "B" and incorporated herein by this reference. At
a minimum, the Owner shall continually maintain the exterior of the Historic Property in the
same condition as documented in Exhibit "B".
C. Owner shall carry out specific restoration, repair, maintenance, and/or rehabilitation projects
,
on the Historic Property, as outlined in the attached Exhibit "C", which is incorporated herein by
this reference. All such projects shall be undertaken and completed in accordance with the City
of San Bernardino design guidelines and in keeping with the historic nature of the property.
Projects may be interior or exterior, but must utilize all property tax savings.
D. Owner shall not be permitted to block the view corridor with any new structure, such as
walls, fences or shrubbery, so as to prevent the viewing of the Historic Property.
6. Periodic Examinations. Upon reasonable advance notice, Owner shall allow
reasonable periodic examinations of the exterior of the Historic Property by representatives of
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the County Assessor, the State Department of Parks and Recreation, the State Board of
Equalization and/or City, as may be necessary to determine Owner's compliance with the terms
and provisions of this Agreement.
7. Provision of Information of Comoliance: Yearly Administrative Fee. Owner hereby
agrees to furnish City with any and all information requested by City, which City deems
necessary or advisable to determine eligibility of the Historic Property and compliance with the
terms and provisions of this Agreement. Requested information may include, but not be limited
to, required annual reports, as well as receipts documenting property maintenance and/or
improvement expenditures that equal or exceed annual estimated property tax savings. Owner
shall also pay City a yearly administrative fee of seventy-five dollars ($75.00).
8. Breach of Agreement: Remedies.
A. Notice of Breach: Ooportunity to Cure. If Owner breaches any provision of this Agreement,
City may give written notice to Owner by registered or certified mail detailing Owner's
violations. If such violation is not corrected to the reasonable satisfaction of City within thirty
(30) days after the date of notice of violation, or within such a reasonable time as may be
required to cure the violation (provided the acts to cure the violation are commenced within
.
thirty (30) days and thereafter diligently pursued to completion), the City may, without further
notice, declare Owner to be in breach of this Agreement. Upon City's declaration of Owner's
breach, City may pursue any remedy available under local, state, or federal law, including those
specifically provided for in this section.
B. Remedy - Cancellation. City may cancel this Agreement if City determines, following a
duly noticed public hearing in accordance with Government Code section 50285, that Owner
breached any of the conditions of the Agreement, Owner allowed the Historic Property to
deteriorate to the point that it no longer meets the standards for a qualified historic property, or
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Owner failed to restore or rehabilitate the Historic Property in accordance with the terms of this
Agreement. If this Agreement is cancelled, under this paragraph, Owner shall pay a cancellation
fee to the Office of the Auditor for the County of San Bernardino as required by Government
Code section 50286.
C. Alternative Remedies. As an alternative to cancellation of this Agreement for Owner's
breach of any condition, City may bring an action in court necessary to enforce this Agreement
including, but not limited to, an action to enforce this Agreement by specific performance,
injunction, or receivership.
9. Destruction ofProoertv: Eminent Domain: Cancellation. If the Historic Property is
destroyed by earthquake, fire, flood, or other natural disaster such that in the opinion of the City
Building Official more than sixty percent (60%) of the original fabric of the structure must
replaced, this Agreement shall be cancelled because the historic value of the structure will have
been destroyed. If the Historic Property is acquired in whole or in part by eminent domain or
other acquisition by any entity authorized to exercise the power of eminent domain, and the
acquisition is determined by the City Council to frustrate the purpose of this Agreement, this
Agreement shall be cancelled. No cancellation fee pursuant to Government Code section 50286
.
shall be imposed if the Agreement is cancelled pursuant to this Section.
1 O. Waiver. City does not waive any claim of default by Owner 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 city's regulations governing historic properties 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 other
subsequent breach thereof or default hereunder.
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11. Bindinl!. Effect of Al!reement. Owner hereby subjects the Historic Property to the
covenants. conditions, and restrictions set forth in this Agreement. City and Owner hereby
declare their specific intent that the covenants, conditions, and restrictions set forth herein shall
be deemed covenants running with the land and shall inure to be binding upon Owner's
successors and assigns in title or interest to the Historic Property. Each and every contract. deed
or other instrument herein after executed, covering or conveying the Historic Property, or any
portion thereof, shall conclusively be held to have been executed, delivered and accepted subject
to the covenants, reservations and restrictions are set forth in such contract, deed or other
instrument.
12. Covenants Run with the Land. City and Owner hereby declare their understanding
and intent that the burden of the covenants, reservations and restrictions set forth herein touch
and concern the land in that it restricts development of the Historic Property. City and Owner
hereby further declare their understanding and intent that the benefit of such covenants,
reservations and restrictions touch and concern the land by enhancing and maintaining the
cultural and historical characteristics and significance of the Historic Property for the benefit of
the public and the Owner.
13. Notice. Any notice required to be given by the terms of this Agreement shall be
provided at the address of the respective parties as specified below or at any other address as
may be later specified by the parties hereto:
City: City of San Bernardino
City Administrator's Office
300 North D Street
San Bernardino, CA 82418-0001
Owner:
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14. Effect of Agreement. 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, not shall such terms, provisions or conditions cause the parties to be
considered joint venturers or members of any joint enterprise.
15. Indemnity of City. Owner shall defend, indemnify, and hold harmless City and its
elected officials, officers, agents and employees from any actual or alleged claims, demands
causes of action, liability, loss, damage, or injury to property or persons, including wrongful
death, whether imposed by a court of law or by administrative action of any federal, state or local
governmental agency, arising out of or incident to (i) the direct or indirect use or peration, or
maintenance of the Historic Property by Owner or any contractor, subcontractor, employee,
agent, lessee, licensee, invitee, or any other person; (ii) Owner's activities in connection with the
Historic Property, or from the enforcement of this Agreement. This indemnification includes,
without limitation, the payment of all penalties, fines, judgments, awards, decrees, attorneys'
fees and related costs or expenses, and the reimbursement of City, its elected officials,
employees, and/or agents for all attorney's fees, legal expenses and costs incurred by each of
them. The costs, salaries and expenses of the City Attorney and members of hislher office in
,
enforcing this Agreement on behalf of the City shall be considered as "attorneys' fees" for the
purposes of this paragraph. Owner's obligation to indemnify shall survive the termination,
cancellation, or expiration of this Agreement and shall not be restricted to insurance proceeds, if
any received by City, its elected officials, employees, or agents.
16. Binding UDon Successors. All of the agreements, rights, covenants, reservations,
and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit
of the parties herein, their heirs, successors, legal representative, assigns and all persons
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acquiring any part or portion of the Historic Property, whether by operation oflaw or in an
manner whatsoever.
17. Legal Costs. In the event legal proceedings are brought by any party or parties to
enforce or restrain a violation of any of the covenants, conditions or restrictions contained herein,
or to determine the rights and duties of any party hereunder, the prevailing parting in such
proceeding may recover all reasonable attorneys' fees to be fixed by the court, in addition to
court costs and other relief ordered by the court. The costs, salaries and expenses of the City
Attorney and members of his /her office in enforcing this Agreement on behalf of the City shall
be considered as "attorneys' fees" for the purposes of this paragraph.
18. Severability. In the event that any of the provisions of this Agreement are held to be
unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive
legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall
not be effected thereby.
19. Recordation. No later than twenty (20) days after the Effective Date, City shall
cause this Agreement to be recorded in the office of the County Recorder of the County of San
Bernardino. Owner shall provide written notice of the contract to the State Office of Historic
.
Preservation within six (6) months of entering into the contract.
20. Amendments. This Agreement may be amended, in whole or in part, only by written
recorded instrument executed by the parties hereto.
21. Governing Law and Venue. This Agreement shall be construed and governed in
accordance with the laws of the State of California. Any action at law or in equity brought by
either of the parties hereto for the purpose of enforcing a right or rights provided for by this
Agreement shall be tried in a court of competent jurisdiction in the County of San Bernardino
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HISTORIC PROPERTY PRESERVATION AGREEMENT
("MILLS ACT CONTRACT")
State of California, and the parties hereby waive all provisions of law providing for a change of
venue in such proceedings to any other county.
IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day
and year first above written.
Dated:
CITY OF SAN BERNARDINO
By:
ATTESTED TO:
By:
Dated:
Owner
Owner
Approved as to form
and legal content
JAMES F. PENMAN
City Attorney
By:
9.
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Exhibit "c"
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Mills Act Program Ten-Year Rehabilitation Plan
City of San Bernardino
Year Proposed .Project* Estimated
Cost
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
To be attached to the Historic Property Preservation Agreement (Mills Act Contract)
*See attached list of potential projects. Use additional sheets if necessary
Projects may be interior or exterior, but must utilize all of your tax savings. Retain
copies of all receipts and permits for submittal with the required annual reports.