HomeMy WebLinkAbout06.D- Council Office DOC ID: 2707
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
In Support/Opposition
From: Chas A. Kelley M/CC Meeting Date: 10/07/2013
Prepared by: Cheryl Weeks, (909) 384-5188
Dept: Council Office Ward(s): All
Subject:
Waiver of $200.00 Application Fee for Property Owners that Have a Mills Act Preservation
Agreement Approved by the Mayor and Common Council (#2707)
Current Business Registration Certificate: Not Applicable
Financial Impact:
Account Budgeted Amount: <<Insert Amount>> Account No. <<Insert Account No.>>
Account Description: <<Insert Account Description
Balance as of: <<Insert Date>>
Balance after approval of this item: <<Insert Amount>>
Please note this balance does not indicate available funding. It does not include non-encumbered
reoccurring expenses or expenses incurred, but not yet processed.
Motion: Waive the $200.00 Application Fee for the 10 property owners that have an
approved Mills Act Preservation Agreement.
Synopsis of Previous Council Action:
<<Insert synopsis here>>
Backl1round•
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.
The City of San Bernardino limits the number of Mills Act Preservation Agreements to 10 per
calendar year.
To encourage residents to maintain and restore eligible historic homes under the Mills Act, the $
200.00 Preservation Agreement application fee shall be waived by the City of San Bernardino
for the 10 eligible applications submitted.
The maintenance and restoration of historic homes will benefit the local economy by increasing
the purchasing of building supplies and by creating increased job opportunities for local
contractors. Restored historic homes also help to preserve the City historic heritage.
Supporting Documents:
Mills Act Reso 2005-363, Historic Property Preservation Agreement & Contract, Ten-Year Plan
(PDF)
Updated: 10/1/2013 by Cheryl Weeks Packet Pg. 380
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RESOLUTION NO.
2 2005-363 r
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3 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN A
BERNARDINO ESTABLISHING THE APPLICATION PROCESS, REVIEW
4 PROCEDURES, AND REQUIRED CONTRACT PROVISIONS FOR THE o
IMPLEMENTATION OF A MILLS ACT PROGRAM IN THE CITY OF SAN
5 BERNARDINO PURSUANT TO GOVERNMENT CODE SECTION 50280, ET SEQ.,
AND SETTING AN APPLICATION FEE
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7 WHEREAS, California Government Code, Article 12, Section 50280,more commonly
known as the Mills Act, established legislation providing property tax relief for owners of r-
g qualified historic properties who contract with a city to abide by reasonable preservation a.
requirements; and
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WHEREAS, preservation agreements will have beneficial effects on residential
10 neighborhoods,businesses,community pride,and regional image;
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BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE c
12 CITY OF SAN BERNARDINO AS FOLLOWS: 0
13 SECTION 1. The program implementing California Government Code, Article 12,
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Le 14 Section 50280 et seq. (known as the Mills Act) for the purpose of preserving, rehabilitating,
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and maintaining designated historic resources,shall be known as the Mills Act. o
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SECTION 2. The Mayor and Common Council hereby directs the City Administrator N
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or his/her designee to develop and process applications for properties seeking qualification and a.
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19 participation in the Mills Act. The City Administrator will also review and make a 0-
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20 recommendation to the Mayor and Council on any application submitted pursuant to the Mills •L
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21 Act. The Mayor and Common Council is the final authority on the authorization and approval =
of any application pursuant to the Mills Act. M
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SECTION 3. The form Preservation Agreement to be used in the Mills Act is attached o
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and incorporated herein as Exhibit "A". The Mayor and Council hereby directs the City
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26 Administrator or his/her designee to amend and modify the form Preservation Agreement as
27 deemed necessary and appropriate, in consultation with the City Attorney. The terms of the
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28 form Preservation Agreement shall always comply with California Government Code,Article
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Packet Pg. 381
6.D.a
2005-363
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RESOLUTION OF THE MAYOR AND•COMMON COUNCIL OF THE CITY OF SAN
2 BERNARDINO ESTABLISHING THE APPLICATION PROCESS, REVIEW a
PROCEDURES, AND REQUIRED CONTRACT PROVISIONS FOR THE
3 IMPLEMENTATION OF A MILLS ACT PROGRAM IN THE CITY OF SAN
¢ BERNARDINO PURSUANT TO GOVERNMENT CODE SECTION 502$0, ET SEQ., o
AND SETTING AN APPLICATION FEE
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12, Section 50280 et seq. (known as the Mills Act). The maintenance, repair, rehabilitation,
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and/or restoration standards applicable to the subject property shall be set forth in the form N
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$ Preservation Agreement. In consideration for abiding with the terms of the Preservation a
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9 Agreement, the owner of the subject property shall be entitled to qualify for a reassessment of
10 the historic property,pursuant to Chapter 3, Part 2,of Division 1 of the California Revenue and ~
11 Taxation Code. Each Preservation Agreement shall be subject to the approval of the Mayor o
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and Common Council. 06
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SECTION A. To limit the fiscal impact of the Mills Act to the City of San Bernardino, d
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Ib the City of San Bernardino shall not enter into or execute more than ten (10) Preservation =
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16 Agreements per calendar year. Applications shall be accepted during the month of November
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17 only, during normal business hours. The ten(10) applicants will be randomly selected from all
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18 eligible applications submitted.
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19 SECTION 5. Eligibility for a Preservation Agreement shall be limited to the owners of a
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those properties identified in the San Bernardino Historic Resources Reconnaissance Survey,
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Volume 2-Tabular List of All Surveyed Historic Resources,dated April 30, 1991. The Mayor
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q and Council hereby find that all properties contained in this list shall be considered Qualified °o
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24 Historic Properties for purposes of the Mills Act, pursuant to California Government Code
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25 Section 50280.1(b) a
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26 SECTION 6. An application fee of$200 shall be paid by each property owner that has
27 a Preservation Agreement approved by the Mayor and Common Council.
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Packet Pg. 382
6.D.a
2005--363
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN w
2 BERNARDINO ESTABLISHING THE APPLICATION PROCESS, REVIEW a
3 PROCEDURES, AND REQUIRED CONTRACT PROVISIONS FOR THE
IMPLEMENTATION OF A MILLS ACT PROGRAM IN THE CITY OF SAN
4 BERNARDINO PURSUANT TO GOVERNMENT CODE SECTION 50280, ET SEQ., °
AND SETTING AN APPLICATION FEE
5 �
6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor o
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7 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: a
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Council Members: AYES NAYS ABSTAIN ABSENT
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11 ESTRADA x M
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12 LONGVILLE x 0
13 MCGINNIS X
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14 DERRY x
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15 KELLEY x o
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JOHNSON X
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18 MCCAMMACK
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21 The foregoing resolution is hereby approved thi d� day of November ,
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2005. M
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+udith O
24 lle s, Mayor
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Approved as to
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26 Form and legal content: T
27 dames F. Penman, City Attorney
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28 By:
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Exhibit"A" N
HISTORIC PROPERTY PRESERVATION AGREEMENT o
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("MILLS ACT CONTRACT") 2
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THIS AGREEMENT is made this , by and between the City of N
San Bernardino, a municipal corporation ("City")and a
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("Owner").
RECITALS (D
1. California Government Code section 50280,et. Seq.allows cities the discretion to
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enter into contracts with the owners of qualified historic properties,as that term is defined in 06
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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 Q
of historic significance.
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2. Owner holds fee title in and to that certain real property,together with associated
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structures and improvements thereon,general located at the street address
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San Bernardino,California("Historic Property"), k legal description of the Historic Property is a
attached hereto as Exhibit"A"and incorporated herein by this reference. o
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3. By authorizing this agreement,the Common Council hereby designates the Historic M
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Property as a Qualified Historic Property as defined by Resolution 2005 - ,Section 5. o
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4. City and Owner desire to enter into this,Agreement for the purpose of protecting and Cn
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preserving the characteristics of historical significance of the Historic Property that help provide q
the community with its own unique civic identity and character.
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5. Owner, in consideration for abiding by the terms of this Agreement, shall be entitled
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to qualify for a reassessment of valuation of the Historic Property,pursuant to the provisions of E
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chapter 3,Part,2,of Division 1 of the California Revenue and Taxation Code,and any
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corresponding adjustment in property taxes resulting therefrom. a
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TERM 4-
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NOW,THEREFORE, the City and Owner in consideration of mutual covenants and >
conditions set forth herein,do hereby agree as follows: ti
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1. Effective Date and Term of Agreement. This Agreement shall be effective and
commence on 200 ("Effective Date")and shall remain in effect for 0.
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a term of ten(10)years thereafter.
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2. Yearly Renewal. Each year upon the anniversary of the Effective Date("Renewal
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Date"), an additional one(1)year shall automatically be added to the remaining term of the o
Agreement unless a notice of nonrenewal is delivered as provided in Section 3 of this
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Agreement.
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3. Nonrenewal. If either the Owner or City desires in any year not to renew this =
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Agreement, Owner or City shall serve a written notice of nonrenewal upon the party in advance
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of the Renewal Date("Notice of Nonrenewal"). The Notice of Nonrenewal shall be effective a
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only if served by Owner upon City at least ninety i90)days prior to the Renewal Date,or if
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served by City upon Owner, the Notice of Nonrenewal shall be effective only if served upon
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Owner at least sixty(60)days prior to the Renewal Date. If either City or Owner serves a Notice N
of Nonrenewal in any year,this Agreement shall remain in effect for the balance of the term then
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remaining. N
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4. Owner Protest of City Nonrenewal. Within fifteen(15)days of Owner's receipt of the
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Notice of Nonrenewal from City, Owner may file with City a written protest of the Notice of a
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Nonrenewal. Upon receipt of the written protest,the Common Council shall set a hearing prior
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to the expiration of the Renewal Date of this Agreement. Owner may famish the Common M
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Packet Pg. 385
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Council with any information which Owner deems relevant and shall furnish the Common LL
Council with any information it may require, The Common Council may, at any time prior to Q
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the annual Renewal Date,withdraw its Notice of Nonrenewal.
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5. Standards for Historical Property. During the term of this Agreement, the Historic >
o Property shall be subject to the following conditions,requirements,and restrictions:
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A. Owner shall preserve and maintain the characteristics of the cultural and historical
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significance of the Historic Property. Compliance or non-compliance with this section shall be a
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determined by the Director of Development Services or his/her designee. In addition,Owner
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shall obtain any applicable permits necessary to protect,preserve,restore, and rehabilitate the
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Historic Property so as to maintain its historical and cultural significance. c
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B. Owner shall,where necessary,repair,maintain,restore, and rehabilitate the Historic Property,
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The condition of the exterior of the Historic Property on the effective date of this Agreement is
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as
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documented in photographs attached as Exhibit"B"and incorporated herein by this reference. At
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a minimum,the Owner shall continually maintain the exterior of the Historic Property in the
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same condition as documented in Exhibit"B".
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C. Owner shall carry out specific restoration,repair,maintenance, and/or rehabilitation projects a
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on the Historic Property, as outlined in the attached Exhibit"C",which is incorporated herein by a
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this reference. All such projects shall be undertaken and completed in accordance with the City N
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of San Bernardino design guidelines and in keeping with the historic nature of the property. M
Projects may be interior or exterior, but must utilize all property tax savings. N
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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.
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6. Periodic Examinations, Upon reasonable advance notice, Owner shall allow
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reasonable periodic examinations of the exterior of the Historic Property by representatives of
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Packet Pg. 386
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the County Assessor, the State Department of Parks and Recreation, the State Board of �?
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Equalization and/or City,as may be necessary to determine Owner's compliance with the terms a
and provisions of this Agreement.
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7. Provision of Information of Compliance, Yearly Administrative Fee Owner hereby >
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agrees to furnish City with any and all information requested by City,which City deems
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necessary or advisable to determine eligibility of the Historic Property and compliance with the y
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terms and provisions of this Agreement. Requested information may include, but not be limited °-
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to,required annual reports,as well as receipts documenting property maintenance and/or
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improvement expenditures that equal or exceed annual estimated property tax savings. Owner
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shall also pay City a yearly administrative fee of seventy-five dollars($75.00). o
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8. Breach of A reement: Remedies 06
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A. Notice of Breach,Opportunity to Cure If Owner breaches any provision of this Agreement, E
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City may give written notice to Owner by registered or certified mail detailing Owner's Q
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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 a
required to cure the violation(provided the acts to cure the violation are commenced within CD
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thirty(30)days and thereafter diligently pursued to completion),the City may,without further
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notice,declare Owner to be in breach of this Agreement. Upon City's declaration of Owner's N
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breach,City may pursue any remedy available under local, state, or federal law,including those co
specifically provided for in this section. c
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B. Remedy—Cancellation. City may cancel this Agreement if City determines,following a
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duly noticed public hearing in accordance with Government Code section 50285,that Owner Q
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 E
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Packet Pg.387
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Owner failed to restore or rehabilitate the Historic Property in accordance with the terms of this
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Agreement. If this Agreement is cancelled,under this paragraph, Owner shall pay a cancellation Q
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fee to the Office of the Auditor for the County of San Bernardino as required by Government
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Code section 50286.
C. Alternative Remedies. As an alternative to cancellation of this Agreement for Owner's
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breach of any condition,City may bring an action in court necessary to enforce this Agreement
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including,but not limited to, an action to enforce this Agreement by specific performance, n.
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injunction,or receivership.
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9. Destruction of Prop a Eminent Domain• Cancellation. If the Historic Property is
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destroyed by earthquake, fire,flood,or other natural disaster such that in the opinion of the City o
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Building Official more than sixty percent(60 1/6) of the original fabric of the structure must
replaced,this Agreement shall be cancelled because the historic value of the structure will have
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been destroyed. If the Historic Property is acquired in whole or in part by eminent domain or Q
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other acquisition by any entity authorized to exercise the power of eminent domain,and the
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acquisition is determined by the City Council to frustrate the purpose of this Agreement, this L
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Agreement shall be cancelled. No cancellation fee pursuant to Government Code section 50286
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shall be imposed if the Agreement is cancelled pursuant to this Section. °-
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10. Waiver. City does not waive any claim of default by Owner if City does not enforce y
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or cancel this Agreement. All other remedies at law or in equity which are not otherwise
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provided for in this Agreement or in city's regulations governing historic properties are available o 0
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to the City to pursue in the event that there is a breach of this Agreement. No waiver by City of
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any breach or default under this Agreement shall be deemed to be a waiver of any other N
subsequent breach thereof or default hereunder.
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11. Binding, Effect of A reement. Owner hereby subjects the Historic Property to the u
covenants, conditions, and restrictions set forth in this Agreement. City and Owner hereby N
declare their specific intent that the covenants,conditions,and restrictions set forth herein shall
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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
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or other instrument herein after executed,covering or conveying the Historic Property,or any
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portion thereof,shall conclusively be held to have been executed,delivered and accepted subject a
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to the covenants,reservations and restrictions are set forth in such contract,deed or other c
instrument. ,c
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12. Covenants Run with the Land. City and Owner hereby declare their understanding 0
and intent that the burden of the covenants,reservations and restrictions set forth herein touch
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and concern the land in that it restricts development of the Historic Property. City and owner a
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hereby further declare their understanding and intent that the benefit of such covenants, a
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reservations and restrictions touch and concern the land by enhancing and maintaining the
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cultural and historical characteristics and significance of the Historic Property for the benefit of a.
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the public and the Owner.
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13. Notice. Any notice required to be given by the terms of this Agreement shall be 2
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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: M
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City: City of San Bernardino N
City Administrator's Office 0
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300 North D Street W
San Bernardino, CA 82418-0001 a
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Owner:
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14. Effect of Agreement. None of the terms,provisions or conditions of this Agreement u0-
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shall be deemed to create a partnership between the parties hereto and any of their heirs, N
successors or assigns,not shall such terms,provisions or conditions cause the parties to be o
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considered joint venturers or members of any joint enterprise.
15. Indemnity of City. Owner shall defend,indemnify, and hold harmless City and its c
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elected officials,officers, agents and employees from any actual or alleged claims,demands v
causes of action liability, loss, damage,or injury to property or persons,including wrongful °
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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
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maintenance of the Historic Property by Owner or any contractor,subcontractor,employee, 0
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agent,lessee,licensee,invitee, or any other person;(ii)Owner's activities in connection with the
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Historic Property, or from the enforcement of this Agreement. This indemnification includes, d
without limitation, the payment of all penalties, fines,judgments,awards,decrees, attorneys' o
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 a`
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them. The costs,salaries and expenses of the City Attorney and members of his/her office in c.
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enforcing this Agreement on behalf of the City shall be considered as"attorneys' fees"for the
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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
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any received by City, its elected officials, employees,or agents. N
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16. Binding,Upon Successors. All of the agreements,rights,covenants,reservations, W
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and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit a
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 of law or in an a
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manner whatsoever. a
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17. Legal Costs. In the event legal proceedings are brought by any party or parties to
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enforce or restrain a violation of any of the covenants, conditions or restrictions contained herein,
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or to determine the rights and duties of any party hereunder,the prevailing parting in such
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proceeding may recover all reasonable attorneys' fees to be fixed by the court,in addition to
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court costs and other relief ordered by the court.The costs,salaries and expenses of the City a
Attorney and members of his/her office in enforcing this Agreement on behalf of the City shall >-
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be considered as"attorneys' fees" for the purposes of this paragraph.
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18. Severability. In the event that any of the provisions of this Agreement are held to be o
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unenforceable or invalid by any court of competent jurisdiction,or by subsequent preemptive
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legislation, the validity and enforceability of the remaining provisions,or portions thereof,shall
not be effected thereby. a
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19. Recordation. No later than twenty(20)days after the Effective Date,City shall
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cause this Agreement to be recorded in the office of the County Recorder of the County of San a
Bernardino. Owner shall provide written notice of the contract to the State Office of Historic
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Preservation within six (6)months of entering into the contract. a
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20. Amendments. This Agreement may be amended, in whole or in part,only by written
recorded instrument executed by the parties hereto. co
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21. Governing Law and Venue. This Agreement shall be construed and governed in N
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accordance with the laws of the State of California. Any action at law or in equity brought by 0 Ce
either of the parties hereto for the purpose of enforcing a right or rights provided for by this a
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Agreement shall be tried in a court of competent jurisdiction in the County of San Bernardino
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Exhibit"C"
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Mills Act Program Ten-Year Rehabilitation Plan 2
City of San Bernardino 'S
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Year Proposed Project* Estimated
Cost
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Year 1 a
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Year 2 Q
Year 3 L
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Year 4 U
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Year 5 E
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Year 6 a
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Year 7
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Year 8
Year 9 0
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Year 10 L
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To be attached to the Historic Property Preservation Agreement(Mills Act Contract) _
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*See attached list of potential projects. Use additional sheets if necessary o
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Projects may be interior or exterior,but must utilize all of your tax savings. Retain 0
copies of all receipts and permits for submittal with the required annual reports.
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