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HomeMy WebLinkAbout11-City Manager I [ f CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Catherine Pritchett, Management Subject: Resolutions authorizing the Analyst execution of Mills Act Preservation Agreements. Through: Charles McNeely, City Manager ORIGINAL Dept: City Manager's Office Date: November 13, 2009 Council Meeting Date: December 7, 2009 Synopsis of Previous Council Action: December 18,2008—Mayor and Common Council adopt Resolutions authorizing the execution of five Mills Act Agreements. December 3, 2007 - Mayor and Common Council amend Resolution 2005-363 to include the use of a City Register of Historical and Architecturally Significant Properties for the purposes of Mills Act eligibility, and authorize one Mills Act Agreement. December 18, 2006—Mayor and Common Council amend resolution 2005-363, changing the application period from November to October, and authorize a Mills Act Agreement. November 7, 2005 - Council adopts Resolution 2005-363 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 and an annual administrative fee, and authorizing four Mills Act Agreements. Recommended motion: Adopt resolutions. Signature Contact person: Catherine Pritchett, Management Analyst Phone: 5122 Supporting data attached: Staff report, resos, contracts Ward: 4, 7 FUNDING REQUIREMENTS: Amount: Some nominal loss of property tax revenue annually, depending on property tax reductions. Source: (Acct.No.) (Acct.Description) Finance: Council Notes: Agenda Item No. STAFF REPORT Subiect• Resolutions authorizing the execution of Mills Act Preservation Agreements. Background: The Mills Act is a state law designed to provide financial incentives for property owners that restore and maintain historic residential and commercial properties. The Mills Act involves property being assessed using a different methodology, the result is a reduction in property taxes paid by the property owner. The owner agrees to invest the savings into the property with the purpose of protecting and preserving the characteristics of historical significance of their historic property Applications for 2009 Mills Act Agreements were accepted from October 1St through October 30t . Prior to the deadline, two (2) property owners submitted complete applications along with the required application fees. Following an initial review of the applications, staff met with the Historic Preservation Commission who performed site surveys on each of the properties to determine their historic relevance. Utilizing similar procedures employed for the 1991 Historic Resources Reconnaissance Survey, the commissioners confirmed the date or period the homes were built, the architectural style of the structures, the construction materials that were used, and the historical significance of the property (prior ownership or use). After review, the committee members recommend the approval of both applications. Upon adoption of this resolution, the property owner(s) will each enter into a 10-year preservation agreement, beginning December 7, 2009 and remaining in effect for a minimum initial term of ten (10) years thereafter unless canceled by the City pursuant to Section(s) 8 or 9 of the agreement. During this time the property owner (s) will be required to reinvest all property tax savings into rehabilitation or maintenance of the historic property. The agreement requires the property owner(s) to preserve and maintain the historic significance of the property, and to carry out the rehabilitation and maintenance projects specified in their application materials. In accordance with Government Code Section 50286, if the City cancels an agreement due to breach by the property owner, or for the owner's failure to restore or rehabilitate the property in accordance with the agreement, the property owner shall be required to pay a penalty to the County Auditor. State law currently sets this penalty at 12.5% of the current fair market value of the property. The Mills Act program is becoming increasingly popular. Upon adoption if this resolution, the City will have 12 active residential Mills Act contracts with San Bernardino residents. Participants in the program have seen property tax savings ranging from $200-$6,000. In addition, all of the participants have been compliant with the City's reporting requirements stated in the Mills Act Agreement. Mills Act Agreements 2009 Page I of 2 Financial impact: Property owners that have approved Mills Act contracts will see a reduction in their property tax assessments, resulting in a corresponding reduction in property tax revenues. In San Bernardino, the City receives an average of seventeen cents ($.17) of each dollar ($1.00) of property tax generated, with the balance of revenues allocated to counties, school districts, and special districts. Each property owner has paid an application fee of $200.00. This fee will partially offset the City's cost to process each application. In addition the property owner will pay an annual administrative fee of$75.00 to offset costs of program administration. Recommendation: Adopt resolutions. Mills Act Agreements 2009 Page 2 of 2 C (Opy 1 RESOLUTION NO. 2 RESOLUTION AUTHORIZING THE EXECUTION OF A MILLS ACT 3 PRESERVATION AGREEMENT WITH STEVEN AND SUZANNE EARP. 4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 5 SECTION 1. The City Manager of the City of San Bernardino is hereby authorized 6 7 and directed to execute on behalf of said City, a Mills Act Preservation Agreement between 8 Steven and Suzanne Earp. and the City of San Bernardino. which is attached hereto, mr rked 9 Exhibit"A" and incorporated herein by reference as though fully set forth at length. 10 SECTION 2. The authorization to execute the above-referenced agreement is t t rescinded if the parties to the agreement fail to execute it within sixty (60) days of the passage 12 of this resolution. 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1,2- 28 1 I I 1 RESOLUTION AUTHORIZING THE EXECUTION OF A MILLS ACT PRESERVATION AGREEMENT WITH STEVEN AND SUZANNE EARP. 2 3 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor 4 and Common Council of the City of San Bernardino at a meeting thereof; held on the 5 day of .-2009, by the following vote, to wit: 6 Council Members: . AYES NAYS ABSTAIN ABSENT 7 ESTRADA 8 BAXTER 9 BRINKER 10 SHORETT 12 KELLEY 13 JOHNSON 14 MCCAMMACK 15 16 City Clerk 17 The foregoing resolution is hereby approved this day of 18 2009. 19 20 Patrick J. Morris, Mayor 21 City of San Bernardino 22 ``approved as to form: 23 JAMES F. PENMAN 24 Citv Attornev 25 / 26 Bv: 27 28 (I Exhibit "A" HISTORIC PROPERTY PRESERVATION AGREEMENT "MILLS ACT CONTRACT" THIS AGREEMENT is made on this, by and between the City of San Bernardino, a municipal corporation ("City"), and Steven & Suzanne Earp ("Owner"). RECITALS 1. 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, generally located at the street address 339 W. 25"' Street Avenue, San Bernardino, California ("Historic Property"). A grant deed description of the Historic Property is attached hereto as Attachment"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 — 363, 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 Chapter 3, Part, 2, of Division 1 of the California Revenue and Taxation Code, and any corresponding adjustment in property taxes resulting therefrom. TERM 1 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 Agreement. This Agreement shall be effective and commence on Monday, December 7, 2009 ("Effective Date") and shall remain in effect for a minimum initial term of ten (10) years thereafter unless canceled by the City pursuant to Section 8 or 9 of this Agreement. 2. Renewal. Upon each anniversary date of this contract ("Renewal Date") an additional one (1) year shall automatically be added to the 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 other party in advance of the Renewal Date ("Notice of Nonrenewal"). The Notice of Nonrenewal 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 of Nonrenewal 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 of City Non-renewal. Within fifteen (15) calendar days of service of the Notice of Non-renewal by City, Owner may file with the City Clerk a written protest of the non- renewal. Upon receipt of the written protest, the City Clerk shall set a date and tine for hearing of the matter by the Mayor and Common Council. The hearing date shall be within 30 calendar days of the receipt of the written protest by the City Clerk. Owner may furnish the Common 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 of Non-renewal. 2 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 his/her 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, when necessary as determined by the City, shall restore and rehabilitate the Historic Property to conform to the rules and regulations of the Office of Historic Preservation of the California Department of Parks and Recreation, the United States Secretary of the Interior Standards for Rehabilitation, and the State Historical Building Code. The condition of the exterior of the Historic Property on the effective date of this Agreement is documented in photographs on file and available in the City Manager's Office. The Owner shall continually maintain the exterior of the Historic Property in the same or better condition as documented in said photographs. C. Owner shall carry out specific restoration, repair, maintenance, and/or rehabilitation projects on the Historic Property, as outlined in the attached Attachment "B", which is incorporated herein by this reference. All such projects shall be undertaken and completed in keeping with the historic nature of the property. Projects may be interior or exterior, but must utilize all property tax savings. Adjustments to the project plan will not result in a breach of contract as long as the projects maintain the historical integrity of the property. 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 from the public right of way. 6. Periodic Examinations. Upon reasonable advance notice, Owner shall allow reasonable periodic examinations of the interior and exterior of the Historic Property by representatives of the 3 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 Compliance; 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; Opportunity 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 as determined by the City in the exercise of its sole discretion), 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 it is subject to cancellation pursuant to Government Code Section 50284. 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. 4 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 of Property; Eminent Domain; Cancellation. A. 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 be replaced, this Agreement shall be cancelled because the historic value of the structure will have been destroyed. B. 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 Mayor and Common 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. 10. 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. 11. Binding, Effect of Agreement. 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 and be binding upon Owner's successors and assigns in title or interest to the Historic Property. Each and every contract, deed or other 5 instrument hereinafter 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 set forth herein. 12. Covenants Run with the Land. Each act hereby required relates to the use, repair, maintenance or improvement of the Historic Property for the benefit of the land owned by the public and all property owners of the City. 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 they restrict 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 Manager's Office 300 North D Street San Bernardino, CA 92418-0001 Owner: Steven & Suzanne Earp 339 W. 25`x' Street San Bernardino, CA 92405 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; nor shall such terms, provisions or conditions cause the parties to be considered joint venturers or members of any joint enterprise. 6 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, operation, 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 his./her 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 Upon Successors. All of the agreements, rights, obligations, 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 representatives, assigns and all persons acquiring any part or portion of the Historic Property, whether by operation of law or in any 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 party 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 7 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 Agreement to the State Office of Historic Preservation within six (6) months of entering into the contract and shall provide the City with evidence of such notification. 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. State of California, or the United States District Court for the Central District of California, Riverside Division, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings. 8 i HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT") 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: JAMES F. PENMAN City Attorney By: 9 17'4,6-11 MZ4<4- `',4 Electronically Recorded in Official Records,County of San Bernardino 111612009 10:53 AM RECORDING REQUESTED BY LARRY Recorder b�-Uh� Coct�t-Tc-F-tt AND WHEN REC ED MAIL TO: \ 753 Orange Coast Title Company Steven Earp Suzanne Earp Doc#: 2009.0019600 Titles: 1 Pages: 2 339 W. 25th Street Fees 12.50 San Bernardino, CA 92405 Taxes 137.50 K+b oiner 00 PAID 149.50 Space Above This Line for Recorder's Use Only A.P.N.: 0149-182-07 Order No.: 210-1025297-10 Escrow No.: 13116KS GRANT DEED THE UNDERSIGNED GRANTOR(s)DECLARE(s)THAT DOCUMENTARY TRANSFER TAX IS:COUNTY$137.50 N computed on full value of property conveyed, or computed on full value le5 value of liens or encumbrances remaining at time of sale, [ ] unincorporated area; [.4 City of San Bernardino , and FOR A VALUABLE CONSIDERATION,Receipt of which is hereby acknowledged, Richard J. Acosta,a Single man hereby tixAiv i(S) to Steven Earp and Suzanne i cep,i il.t5 W-.-"iu VV t L �� T�j i trt�i�'i '�✓ the following described property in the City of San Bernardino, County of San Bernardino State of California; Lot 8, Block"E",of Tract 1758,Polytechnic Square No.3,in the City of San Bernardino, County of San Bernardino, State of California as per map recorded in Book 25, Page(s) 51, Inclusive of Maps, in the Office of the County Recorder of said County. 'Property Address: 339 W. 25th Street, San Bernardino, CA 92405 hard J. Acosta Document Date: December 16, 2008 STATE OF CALIFORNIA )SS COUNTY OF On 7 0 —VV before me, �- personally appeared U who roved tome on the basis of satisfactory evidence to be the personjsj whose nam�re subscribed to the within instrument and acknowledged to me tttat�i/she/they executed the same in&herltheir authorized rapacity and that by s /their signaturef6j on the instrument the person or the entity upon behalf of which the person(yf 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. WMESS my hand and official seal Signature / \\� CC„im'.v 1# Z A -� b•x.27 Counly < rt_ Z ,�L7!'_.,��' ti.:Yi:,:^,•�Ut)'C-GGiifG.'t;lfl MAIL TAX STP` 5 T NIVCo.-.,n1.L:YVres Jar,26,2010 SAME r,6 ti87VE Mail Tax Statements to: SAME AS ABOVE or Address Noted Below 14-7�'_ 'h wlZ4tt San Bpi7lar ino Mills Act Program Ten-Year Rehabilitation Plan City of San Bernardino Year Proposed Project(s)* Estimated Cost Year 1 w.R ow SC.rccn S / rtercpai r- 5C;r�e.n 6 0025 C �� O- 1A�4 rt'ar a i r� 1�0U Year cvrri -4- draitic�,{ �._ covr4-herd pa 'o t dk-hk.V a l M G M rt.J. hn q Year 3 Q P1acc. 6/'�Gwca It A,Kn ✓a I K4 i* OQ-Aa�iGG Year 4 Y{MOV4, Subs 4A (IW cdnG s a Years CA one- rnaiK �. h (,U 0 ot'1'r 7 dri vcw d6 i A 4. Year 6 in 5014 h.on w.115 II I� UvC� &ih d7-ti - to G?X Year 7 rCP(a 4 z bit _Q /1 Year 8 Yt• i4G - car re-Pa t r wi h a�aw 5/ daak.5 Z,, CJv C� 4.,uC > HA "A fen - Year 9 -TeA i' �e- Kyair on ovhi'4 , 44 5 2 vu U rn G o v <� J h �1la.�j'vn Year 10 �•Ic i/�s #r 7,n--^4+Pa 41M t4C l-h 4cri'curZ Z, crcrc) 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. i HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT") THIS AGREEMENT is made on this, by and between the City of San Bernardino, a municipal corporation ("City"), and Steven & Suzanne Earp ("Owner"). RECITALS 1. 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, generally located at the street address 339 W. 25u' Street Avenue, San Bernardino, California ("Historic Property"). A grant deed description of the Historic Property is attached hereto as Attachment"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 — 363, 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 Chapter 3, Part, 2, of Division 1 of the California Revenue and Taxation Code, and any 40 corresponding adjustment in property taxes resulting therefrom. 1 TERM NOW, THEREFORE, the City and Owner in consideration of mutual covenants and conditions set forth herein. do hereby agree as follows: I. Effective Date and Term of Agreement. This Agreement shall be effective and commence on Monday. December 7, 2009 ("Effective Date") and shall remain in effect for a minimum initial term of ten (10) years thereafter unless canceled by the City pursuant to Section 8 or 9 of this Agreement. 2. Renewal. Upon each anniversary date of this contract ("Renewal Date") an additional one (I) year shall automatically be added to the 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 other party in advance of the Renewal Date ("Notice of Nonrenewal"). The Notice of Nonrenewal 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 of Nonrenewal 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 of City Non-renewal. Within fifteen (15) calendar days of service of the Notice of Non-renewal by City, Owner may file with the City Clerk a written protest of the non- renewal. Upon receipt of the written protest, the City Clerk shall set a date and tine for hearing of the matter by the Mayor and Common Council. The hearing date shall be within 30 calendar days of the receipt of the written protest by the City Clerk. Owner may furnish the Common Council with any information which Owner deems relevant and shall furnish the Common Council with any !� infornation it may require. The Common Council may, at any time prior to the annual Renewal Date, withdraw its Notice of Non-renewal. 2 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 his/her 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, when necessary as determined by the City, shall restore and rehabilitate the Historic Property to conform to the rules and regulations of the Office of Historic Preservation of the California Department of Parks and Recreation, the United States Secretary of the Interior Standards for Rehabilitation, and the State Historical Building Code. The condition of the exterior of the Historic Property on the effective date of this Agreement is documented in photographs on file and available in the City Manager's Office. The Owner shall continually maintain the exterior of the Historic Property in the same or better condition as documented in said photographs. C. Owner shall carry out specific restoration, repair, maintenance, and/or rehabilitation projects on the Historic Property, as outlined in the attached Attachment "B", which is incorporated herein by this reference. All such projects shall be undertaken and completed in keeping with the historic nature of the property. Projects may be interior or exterior, but must utilize all property tax savings. Adjustments to the project plan will not result in a breach of contract as long as the projects maintain the historical integrity of the property. 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 from the public right of way. w 6. Periodic Examinations. Upon reasonable advance notice, Owner shall allow reasonable periodic examinations of the interior and exterior of the Historic Property by representatives of the 3 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 Compliance; 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 (575.00). 8. Breach of Agreement: Remedies. A. Notice of Breach; Opportunity to Cure. If Owner breaches any provision of this Agreement, .r- 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 withiri thirty (30) days and thereafter diligently pursued to completion as determined by the City in the exercise of its sole discretion), 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 it is subject to cancellation pursuant to Government Code Section 50284. 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. 4 C. Alternative Remedies. As an alternative to cancellation of this Agreement for Owner's breach luof 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 of Property: Eminent Domain; Cancellation. A. 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 be replaced, this Agreement shall be cancelled because the historic value of the structure will have been destroyed. B. 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 Mayor and Common 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. 10. 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. 11. Binding, Effect of Agreement. 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 and be binding upon Owner's successors and assigns in title or interest to the Historic Property. Each and every contract, deed or other 5 i instrument hereinafter 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 set forth herein. 12. Covenants Run with the Land. Each act hereby required relates to the use, repair, maintenance or improvement of the Historic Property for the benefit of the land owned by the public and all property owners of the City. 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 they restrict 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 Manager's Office 300 North D Street San Bernardino, CA 9241 5-0001 Owner: Steven & Suzanne Earp 339 W. 25th Street San Bernardino, CA 92405 l4. 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; nor shall such terms, provisions or conditions cause the parties to be considered joint venturers or members of any joint enterprise. 6 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, operation, 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 his/her office in enforcing this Agreement on behalf of the City shall be 01 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 Upon Successors. All of the agreements, rights, obligations, 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 representatives, assigns and all persons acquiring any part or portion of the Historic Property, whether by operation of law or in any 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 party in such proceeding 0 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 7 i 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 Agreement to the State Office of Historic Preservation within six (6) months of entering into the contract and shall provide the City with evidence of such notification. 20. Amendments. This Agreement may be amended, in whole or in part, only by written recorded instrument executed by the parties hereto. 21. Governinp, 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. State of California. or the United States District Court for the Central District of California, Riverside Division. and the parties hereby waive all provisions of law providing for a change of venue in such proceedings. 8 F HISTORIC PROPERTY PRESERVATION AGREEMENT i ("MILLS ACT CONTRACT") l i 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: JAMES F. PENMAN City Attorney By: 9 Electronically Recorded in Official Records,County of San Bernardino 111612009 10:53 AM RECORDING REQUESTED BY � LARRY WALKER FV 4,Q. Auditor/Controller-Recorder AND WIZEN RECQRDED MAIL TO: 753 Orange Coast Title Company Steven Earp � Suzanne Earp Doc#: 2009-0019600 Titles: 1 Pages: 2 339 W. 25th Street San Bernardino, CA 92405 Fees .00 Taxes 13737.50 mc�l 1 -ktc ��1 J b Other 00 PAID 149.50 Space Above This Line for Recorder's Use Only A.P.N.: 0149-182-07 Order No.: 210-1025297-10 Escrow No.: 13116KS GRANT DEED THE UNDERSIGNED GRANTOR(s)DECLARE(s)THAT DOCUMENTARY TRANSFER TAX IS:COUNTY$137.50 N computed on full value of property conveyed, or computed on full value leas value of liens or encumbrances remaining at time of sale, unincorporated area; [: City of San Bernardino , and FOR A VALUABLE CONSIDERATION,Receipt of which is hereby acknowledged, Richard J.Acosta, a Single man hereby GRANT(S) to Steven Earp and Suzanne Earp,4'il,tS CtVId°� W f e a S T4(1j�--Flf Cq n-"S the following described property in the City of San Bernardino, County of San Bernardino State of California; Lot 8, Block"E",of Tract 1758,Polytechnic Square No.3,in the City of San Bernardino, County of San Bernardino, State of California as per map recorded in Book 25, Page(s) 51, Inclusive of Maps, in the Office of the County Recorder of said County. ` 'Property Address: 339 W. 25th Street, San Bernardino, CA 92405 �2 PAchard J. Acosta Document Date: December 16, 2008 STATE OF CALIFORNIA ),SS COUNTY OF a/?-� ) On 7 Da)i before me, + personally appeared U who roved to me on the basis of satisfactory evidence to be the person�rJ whose namd fare subscribed to the within instrument and acknowledged to me that�r /she/they executed the same in&h erltheir authorized capacity and that by(&9he" r/their signatumA on the instrument the personnj or the entity upon behalf of which the person(4 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. WTI'NESS my hand and official seal. Signature C- mi_livi# 75.9 ?27 z.MAIL TAX ST i 5 To. Ccuniy tvl Co:.;ra.�rpass Jan 2G,2010 SAME z;ABOVE Mail Tax Statements to: SAME AS ABOVE or Address Noted Below San Belylar i' Mills Act Program Ten-Year Rehabilitation Plan Citti of San Bernardino Year Proposed Project (s)* Estimated Cost Year 1 ow sc,r�n rt 4c�1rcpair sir-�j,n �00k5 L t) �t I ()U U. � Year 2 c.or'c -lr draitia cvwr•!-�and Pa o k-hkvat M 46h1�h4hc1. JJ 000' Year rCrJ�4Ct� �l �GWu 11 j C>d U A-Rn va I Al A r'1, J-em aAc-C Year 4 femove, Subs 4A IW `vhLrl a Year s C.hlytnc rna;A7 . 1, C)C) 0 orZ7 drivcw ins Year in54,/. •ter g / 1 �j p U C) Year 7 f{P(4cL it W /1 vo o Year 8 Yrrlcc�` Cyr re-pa I r- wi n a7aw 5/ daoR,S Z, UU C� �T�uc. ' Hki1# LnCe- Year 9 7e_&h,,' le- re qa r c7n ouh/;,'•l , ova 5 Z vu U sw4m ID C_00/'r- Year 10 40i iks #a yn i�4- peJrc-k��C>Ur- r Z Uc vc) � 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. ice... 1 RESOLUTION NO. COPY 2 RESOLUTION AUTHORIZING THE EXECUTION OF A MILLS ACT 3 PRESERVATION AGREEMENT WITH STEPHEN T. AND DENISE DAWSON. 4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 5 SECTION 1. The City Manager of the City of San Bernardino is hereby authorized 6 7 and directed to execute on behalf of said City, a Mills Act Preservation Agreement between 8 Stephen T. and Denise Dawson, and the City of San Bernardino, which is attached he etc,. 9 marked Exhibit "A" and incorporated herein by reference as though fully set forth at lengm. 10 SECTION 2. The authorization to execute the above-referenced agreement is 11 rescinded if the parties to the agreement fail to execute it within sixty (60) days of the passage 12 of this resolution. 13 14 15 16 17 18 19 20 21 22 23 24 ill 25 26 27 28 i 1 RESOLUTION AUTHORIZING THE EXECUTION OF A MILLS ACT PRESERVATION AGREEMENT WITH STEPHEN T. AND DENISE DAWSON. 2 3 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor 4 and Common Council of the City of San Bernardino at a meeting thereof, held on the 5 day of 2009, by the following vote. to wit: 6 Council Members: AYES NAYS ABSTAIN ABSENT 7 ESTRADA 8 BAXTER 9 BRINKER 10 11 SHORETT 12 KELLEY 13 JOHNSON 14 MCCAMMACK 15 16 City Clerk 17 18 The foregoing resolution is hereby approved this day of 2009. 19 20 Patrick J. Morris, Mavor 21 City of San Bernardino 22 Approved as to form: 23 JAMES F. PENMAN 24 City Attorney 25 26 By: 27 28 Exhibit "A" ar HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT") THIS AGREEMENT is made on this, by and between the City of San Bernardino, a municipal corporation ("City"), and Stephen T. and Denise Dawson ("Owner"). RECITALS 1. 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, generally located at the street address 5020 Sepulveda Avenue, San Bernardino, California ("Historic Property"). A grant deed description of the Historic Property is attached hereto as Attachment"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 — 363, 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 Chapter 3, Part, 2, of Division 1 of the California Revenue and Taxation Code, and any corresponding adjustment in property taxes resulting therefrom. TERM 1 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 Agreement. This Agreement shall be effective and commence on Monday, December 7, 2009 ("Effective Date") and shall remain in effect for a minimum initial term of ten (10) years thereafter unless canceled by the City pursuant to Section 8 or 9 of this Agreement. 2. Renewal. Upon each anniversary date of this contract ("Renewal Date") an additional one (1) year shall automatically be added to the 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 other party in advance of the Renewal Date ("Notice of Nonrenewal"). The Notice of Nonrenewal 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 of Nonrenewal 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 of City Non-renewal. Within fifteen (15) calendar days of service of the Notice of Non-renewal by City, Owner may file with the City Clerk a written protest of the non- renewal. Upon receipt of the written protest, the City Clerk shall set a date and tine for hearing of the matter by the Mayor and Common Council. The hearing date shall be within 30 calendar days of the receipt of the written protest by the City Clerk. Owner may furnish the Common 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 of Non-renewal. 5. Standards for Historical Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements, and restrictions: 2 9 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 his/her 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, when necessary as determined by the City, shall restore and rehabilitate the Historic Property to conform to the rules and regulations of the Office of Historic Preservation of the California Department of Parks and Recreation, the United States Secretary of the Interior Standards for Rehabilitation, and the State Historical Building Code. The condition of the exterior of the Historic Property on the effective date of this Agreement is documented in photographs on file and available in the City Manager's Office. The Owner shall continually maintain the exterior of the Historic Property in the same or better condition as documented in said photographs. C. Owner shall carry out specific restoration, repair, maintenance, and/or rehabilitation projects on the Historic Property, as outlined in the attached Attachment "B", which is incorporated herein by this reference. All such projects shall be undertaken and completed in keeping with the historic nature of the property. Projects may be interior or exterior, but must utilize all property tax savings. Adjustments to the project plan will not result in a breach of contract as long as the projects maintain the historical integrity of the property. 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 from the public right of way. 6. Periodic Examinations. Upon reasonable advance notice, Owner shall allow reasonable periodic examinations of the interior and exterior of the Historic Property by representatives of 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. 3 W 7. Provision of Information of Compliance; 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; Opportunity 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 as determined by the City in the exercise of its sole discretion), 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 it is subject to cancellation pursuant to Government Code Section 50284. 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. 4 9. Destruction of Property; Eminent Domain; Cancellation. A. 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 be replaced, this Agreement shall be cancelled because the historic value of the structure will have been destroyed. B. 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 Mayor and Common 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. 10. 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. 11. Binding, Effect of Agreement. 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 and be binding upon Owner's successors and assigns in title or interest to the Historic Property. Each and every contract, deed or other instrument hereinafter 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 set forth herein. 5 12. Covenants Run with the Land. Each act hereby required relates to the use, repair, maintenance or improvement of the Historic Property for the benefit of the land owned by the public and all property owners of the City. 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 they restrict 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 Manager's Office 300 North D Street San Bernardino, CA 92418-0001 Owner: Stephen T. and Denise Dawson 5020 Sepulveda Avenue San Bernardino, CA 92404 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; nor shall such terms, provisions or conditions cause the parties to be considered joint venturers or members of any joint enterprise. 15. Indemnit of f 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 6 out of or incident to (i) the direct or indirect use, operation, 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 his/her 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 Upon Successors. All of the agreements, rights, obligations, 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 representatives, assigns and all persons acquiring any part or portion of the Historic Property, whether by operation of law or in any 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 party 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 I I 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 Agreement to the State Office of Historic Preservation within six (6) months of entering into the contract and shall provide the City with evidence of such notification. 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 r tried in a court of competent jurisdiction in the County of San Bernardino. State of California, or the United States District Court for the Central District of California, Riverside Division, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings. 8 HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT") 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: k Owner Owner Approved as to form: JAMES F. PENMAN City Attorney By: 9 a db OWN _ rx ,g amer Ar 6*Vt RICOROING REQUESTED/Y 91=048546 REC�501NG REQUESTED Y FIDELITY NATIONAL TITLE INSURANCE M- RMWED IN OfFlM REORDS AND WHEN RECORDED MAIL THIS DEED ANO. t UNLESS OTHERWISE SHOWN BELOW. MAIL TAY FEB 11 1991 81AM STATEMENTS TO -4AN BERNARDINO COOM CIIIIE. STEPHEN T. DAWSON I DENISE DAMSON 5020 SEPULVEDA AVENUE / SAN BERNARDINO, CALIFORNIA 924 ,L EfC NOW NO m_vt�-� TITLE ORDER NO. SPACE ABOVE THIS LINE FOR RECORDER'S USE I GRANT DEED I The undenlgnCd granturlsl JvcUrelsl A.►k. 194-091-48 Documentary transfer tax is S 195.25 ( H computed on Iull value of property conveyed,or l I computed on full value less value of liens and encumbrances remaining at time of sale.and I 1 Unincorporated area: l %City of AM BERNARDINO — fBy this Instrument dated SECOND DAY OF OCT OBER, 1990 for a valuable consideration PHILIP HOWARD PERGLER AND KAREN DELORES PERGLER, HUSBAND AND WIFE, AS JOINT (� TENANTS '1 1 hereby GRANTS to STEPHEN T. DAMSON AND DEMISE DAMSON, HUSBAND AND WIFE, AS JOINT TEYeANTS I 111C following des.TibCJ real prolserty n1 the CITY OF SAN BERNARDINO County of SAN BERNARDINO ,State of CALIFORNIA PARCEL I OF PARCEL MAP NO. 8890, AS PER PARCEL MAP RECORDED IN BOOK 94, PAGES 78 AND 79 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAN BERNARDINO COUNTY, CALIFORNIA. I STATE OF CA JFORNV. COUNTY OF On �Clb ✓ ay �9y0 before Mc P1ftLIP HOWARD ERGLER the undercyloed,a Notary public in and fur sad County and$tea. pe-omtly appeared Ph�C.� /for rated Pte. �� PC yit� KAREN DELORES PERGLER a..reir ice/orts I whow mmole)a Wareawe tiileed�he within MRrvlrwatatprd acknor4daed Io me lots,AeNw they executed the=am. WITNI.SS my hard and official wel. Raintree Escrow Company GFFICIAL �E.\1. 4226 No. Sierra Wa y Y,ATI{RYN L KIRKIEY r San Bernardino, California 92407 �... sax r._enxccn;o couYtr ' My cater er;.res MAY e I t MAIL TA x STATEMLNTS TO PARTY SHOWN ON FOLIDWING WINE:III:NO PARTY IS SHOWN,MAIL AS UIRECfEU ABOVE, I Aro»o Nome Street Address Cloy It Stele i Iy San tern no 2009 Mills Act Program Ten-Year Rehabilitation Plan City of San Bernardino Street Address 5020 Sepulveda Avenue, San Bernardino, CA Year Proposed Project(s)* Estimated Cost Year 1 Exterior Painting 2,000.00 Year 2 Balcony railing and surface, replace 2 Year 3 Replace 6 windows with Pella double pane 6/6 1 ,800.00 Year 4 Repair and refinish hardwood floors 1 ,200.00 Year 5 Replace gutters and downs p gu pouts, chimney Year 6 Termite treatment 1 ,800.00 Year 7 Foundation repair 1 ,400.00 Year 8 HVAC 4,400.00 Year 9 Repair exterior gara g e walls, structural Year 10 Attic insulation, waterproofing and weather- 1 ,200.00 stripping 4 porch and balcony doors, interio *See a ace i t 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. I/H 1 HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT") THIS AGREEMENT is made on this, by and between the City of San Bernardino, a municipal corporation ("City"), and Stephen T. and Denise Dawson ("Owner"). RECITALS 1 . 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, generally located at the street address 5020 Sepulveda Avenue, San Bernardino, California ("Historic Property"). A grant deed description of the Historic Property is attached hereto as Attachment "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 — 363, 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 Chapter 3, Part, 2, of Division 1 of the California Revenue and Taxation Code, and any corresponding adjustment in property taxes resulting therefrom. t 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 Agreement. This Agreement shall be effective and commence on Monday, December 7, 2009 ("Effective Date") and shall remain in effect for a minimum initial term of ten (l 0) years thereafter unless canceled by the City pursuant to Section 8 or 9 of this Agreement. 2. Renewal. Upon each anniversary date of this contract ("Renewal Date") an additional one (l) year shall automatically be added to the 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 other party in advance of the Renewal Date ("Notice of Nonrenewal"). The Notice of Nonrenewal 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 of Nonrenewal 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 of City Non-renewal. Within fifteen (15) calendar days of service of the Notice of Non-renewal by City, Owner may file with the City Clerk a written protest of the non- renewal. Upon receipt of the written protest, the City Clerk shall set a date and tine for hearing of the matter by the Mayor and Common Council. The hearing date shall be within 30 calendar days of the receipt of the written protest by the City Clerk. Owner may furnish the Common 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 of Non-renewal. 2 1 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- his/her 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, when necessary as determined by the City, shall restore and rehabilitate the Historic Property to conform to the rules and regulations of the Office of Historic Preservation of the California Department of Parks and Recreation, the United States Secretary of the Interior Standards for Rehabilitation, and the State Historical Building Code. The condition of the exterior of the Historic Property on the effective date of this Agreement is documented in photographs on file and available in the City Manager's Office. The Owner shall continually maintain the exterior of the Historic Property in the same or batter condition as documented in said photographs. C. Owner shall carry out specific restoration, repair, maintenance, and/or rehabilitation projects on the Historic Property, as outlined in the attached Attachment "B", which is incorporated herein by this reference. All such projects shall be undertaken and completed in keeping with the historic nature of the property. Projects may be interior or exterior, but must utilize all property tax savings. Adjustments to the project plan will not result in a breach of contract as long as the projects maintain the historical integrity of the property. 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 from the public right of way. 6. Periodic Examinations. Upon reasonable advance notice, Owner shall allow reasonable s.6 periodic examinations of the interior and exterior of the Historic Property by representatives of the County Assessor, the State Department of Parks and Recreation, the State Board of Equalization and/or 3 II City, as may be necessary to determine Owner's compliance with the terns and provisions of this Agreement. 7. Provision of Infonnation of Compliance: 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 teens 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; Opportunity 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 as determined by the City in the exercise of its sole discretion), 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 it is subject to cancellation pursuant to Government Code Section 50284. 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. 4 I 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 of Property; Eminent Domain; Cancellation. A. 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 be replaced, this Agreement shall be cancelled because the historic value of the structure will have been destroyed. B. 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 Mayor and Common Council to frustrate the purpose of this Agreement, this Agreement shall be cancelled. No cancellation fee pursuant to Government Code Section 50286 shall he imposed if the Agreement is cancelled pursuant to this Section. 10. 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. 11. Binding. Effect of Aureement. 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 and be binding upon Owner's successors and assigns in title or interest to the Historic Property. Each and every contract, deed or other instrument hereinafter executed, covering or conveying the Historic Property, or any portion thereof, shall 5 conclusively be held to have been executed, delivered and accepted subject to the covenants, reservations and restrictions set forth herein. 12. Covenants Run with the Land. Each act hereby required relates to the use, repair, maintenance or improvement of the Historic Property for the benefit of the land owned by the public and all property owners of the City. 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 they restrict 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 Manager's Office 300 North D Street San Bernardino, CA 92418-0001 Owner: Stephen T. and Denise Dawson 5020 Sepulveda Avenue San Bernardino, CA 92404 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; nor 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, 6 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, operation, 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 his/her 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 Upon Successors. All of the agreements, rights, obligations, 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 representatives, assigns and all persons acquiring any part or portion of the Historic Property, whether by operation of law or in any 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 party 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 Agreement to the State Office of Historic Preservation within six (6) months of entering into the contract and shall provide the City with evidence of such notification. 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. State of California, or the United States District Court for the Central District of California, Riverside Division, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings. 8 i HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT") 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: JAMES F. PENMAN City Attorney By: 9 RECORDING 1111901.116790 Sly - 91=048546 RECORDING REQUESTED'IaY FIDELITY NATIONAL TITLE INSURANCE CO. RECORDED IN DMIX RECORDS AND WHEN RECORDED MAIL THIS DEED ANO. UNLESS OTHERWISE SHOWN aELOW. MAIL TAR FEB 11 1991 fff BEAM t STATEMENTS TO ---SAM BERNARDINO COMY, GAVE. STEPHEN T. DAMSON "•'- ' DENISE DAMSON 5020 SEPULVEDA AVENUE IL—E SAN BERNARDINO, CALIFORNIA 924 T 1 I ESCROW NO [19-5717-1 �5 I f t TITLE ORDER NO. S►ACE ASOVE THIS LINE►on RECORDER'S USE ; GRANT DEED I The undersigned Wrauturltil JecUre(s) Documentary transfer lux is S 195.25 A.►it. 154-091-48 ( M Computed on lull value of property conveyed,or ( 1 computed on full value less value of liens and encumbrances remaining at time of sale,and 1 1 Unincorporated area: 1 4 City of AN BERNARDINO — I 1 I By this Instrument dated SECOND DAY OF OCTOBER, 1990 for a valuable consideration I I PHILIP HOWARD PERGLER AND KAREN DELORES PERGLER, HUSBAND AND WIFE, AS .:DINT TENANTS (� I 'J I I I I MM0 hereby GRANTS to r'J STEPHEN T. DAMSON AND DENISE DAMSON, HUSBAND AND WIFE, AS JOINT TEKAKTS I 1 - 1 I the tollowinti des-mbLd real property ❑I tine CITY OF SAN BERNARDINO County of SAN BERNARDINO State of CALIFORNIA PARCEL I OF PARCEL MAP NO. 8890, AS PER PARCEL MAP RECORDED IN BOOK 94, I PAGES 78 AND 79 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAN BERNARDINO COUNTY, CALIFORNIA. I I I I I �/ I I STATE OF CA FORN COUNTY OF �� on QC[b be.� o�Y, 990 berurc me PPi LIVII PP,,HLOWARD qERGLER, the unally j pc.+Nuur1 Public m and for wW Courtly and Stale, perwnallr appeared I Ph1,I-P �lowa.d /0* 6� KAREN DELORES PERGLER A.u1 ac/erCS Pe gk/ I , gored to me on Ike baw of MIY(aetorl e•trlarn+a to M lie rnoa(a) -hole mmc(#) Ware wbaerlbed to Ike within MprYlnaari, Cud adtnovladaaed to tae that bOdw IhaY eaxrtad the lama. WITNI.SS y bond aad orfk-W we]. I TV Raintree Escrow Company OFFICIAL SE,;I "! 4226 No. Sierra Wa -.� KAT14RYN L KIRKIEY y '`''r'-1C-rA7*,:-.70A San Bernardino, California 927 C�RNARMNO COUNTY 40(' �d I MAIL TAX STATI-MLNTS TO PARTY SHOWN ON POLtDWING LINE:IF NO PARTY IS SHOWN,MAIL AS DIRECTEU AIIOVF I Aroyso Name SUest Addrtaa ply A Slate I • r v UD I n IAU 2009 Mills Act Program Ten-Year Rehabilitation Plan City of San Bernardino Street Address 5020 Sepulveda Avenue, San Bernardino, CA Year Proposed Project (s)* Estimated Cost Year 1 Exterior Painting 2,000.00 Year') Balcony railing and surface, replace 2 Year 3 . I------ Replace 6 windows with Pella double pane 6/6 1 ,800.00 Year 4 Repair and refinish hardwood floors 1 ,200.00 Year 5 Replace p gutters and downspouts, chimney Year 6 Termite treatment 1 ,800.00 Year 7 Foundation repair 1 ,400.00 Year 8 HVAc 4,400.00 Year 9 Repair r exterior garage walls, structural Year 10 Attic insulation, waterproofing and weather- stripping 4 porch and balcony doors, interio 1 ,200.00 *See a ace i t 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. CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Catherine Pritchett, Management Subject: Resolutions authorizing the Analyst execution of Mills Act Preservation Agreements. Through: Charles McNeely, City Manager C 00py Dept: City Manager's Office Date: November 13, 2009 Council Meeting Date: December 7, 2009 Synopsis of Previous Council Action: December 18,2008-Mayor and Common Council adopt Resolutions authorizing the execution of five Mills Act Agreements. December 3, 2007 - Mayor and Common Council amend Resolution 2005-363 to include the use of a City Register of Historical and Architecturally Significant Properties for the purposes of Mills Act eligibility, and authorize one Mills Act Agreement. December 18, 2006—Mayor and Common Council amend resolution 2005-363, changing the application period from November to October, and authorize a Mills Act Agreement. November 7, 2005 - Council adopts Resolution 2005-363 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 and an annual administrative fee, and authorizing four Mills Act Agreements. Recommended motion: Adopt resolutions. Ll- ZZ Signature Contact person: Catherine Pritchett, Management Analyst Phone: 5122 Supporting data attached: Staff report, resos, contracts Ward: 4, 7 FUNDING REQUIREMENTS: Amount: Some nominal loss of property tax revenue annually, depending on property tax reductions. Source: (Acct.No.) (Acct. Description) Finance: Council Notes: Agenda Item No. ia- 7 09 i STAFF REPORT Subject: Resolutions authorizing the execution of Mills Act Preservation Agreements. Background: The Mills Act is a state law designed to provide financial incentives for property owners that restore and maintain historic residential and commercial properties. The Mills Act involves property being assessed using a different methodology, the result is a reduction in property taxes paid by the property owner. The owner agrees to invest the savings into the property with the k purpose of protecting and preserving the characteristics of historical significance of their historic t property Applications for 2009 Mills Act Agreements were accepted from October 1St through October 30' . Prior to the deadline, two (2) property owners submitted complete applications along with the required application fees. Following an initial review of the applications, staff met with the Historic Preservation Commission who performed site surveys on each of the properties to t determine their historic relevance. Utilizing similar procedures employed for the 1991 Historic Resources Reconnaissance Survey, the commissioners confirmed the date or period the homes were built, the architectural style of the structures, the construction materials that were used, and the historical significance of the property (prior ownership or use). After review, the committee members recommend the approval of both applications. Upon adoption of this resolution, the property owner(s) will each enter into a 10-year preservation agreement, beginning December 7, 2009 and remaining in effect for a minimum initial term of ten (10) years thereafter unless canceled by the City pursuant to Section(s) 8 or 9 of the agreement. During this time the property owner(s) will be required to reinvest all property tax savings into rehabilitation or maintenance of the historic property. The agreement requires 4 the property owner(s) to preserve and maintain the historic significance of the property, and to carry out the rehabilitation and maintenance projects specified in their application materials. In F accordance with Government Code Section 50286, if the City cancels an agreement due to breach by the property owner, or for the owner's failure to restore or rehabilitate the property in i accordance with the agreement, the property owner shall be required to pay a penalty to the County Auditor. State law currently sets this penalty at 12.5% of the current fair market value of the property. F The Mills Act program is becoming increasingly popular. Upon adoption if this resolution, the City will have 12 active residential Mills Act contracts with San Bernardino residents. Participants in the program have seen property tax savings ranging from $200-$6,000. In addition, all of the participants have been compliant with the City's reporting requirements stated in the Mills Act Agreement. F F E P E 4 Mills Act Agreements 2009 Page 1 of 2 a Financial impact: Property owners that have approved Mills Act contracts will see a reduction in their property tax assessments, resulting in a corresponding reduction in property tax revenues. In San Bernardino, the City receives an average of seventeen cents ($.17) of each dollar ($1.00) of property tax generated, with the balance of revenues allocated to counties, school districts, and special districts. Each property owner has paid an application fee of $200.00. This fee will partially offset the City's cost to process each application. In addition the property owner will pay an annual administrative fee of$75.00 to offset costs of program administration. Recommendation: Adopt resolutions. Mills Act Agreements 2009 Page 2 of 2