HomeMy WebLinkAboutCRPC 13-01 - 72483 El Paseo #1115..«�� �
STAFF REPORT
CITY OF PALM DESERT
DEPARTMENT OF BUILDING AND SAFETY
MEETING DATE: August 27, 2020
PREPARED BY: Russell A. Grance, Director of Building and Safety
REQUEST: Approve Mills Act Contract for property located at 72-483, Unit
#1115, in Sandpiper Condominiums, EI Paseo, APN 640-200-010-5.
Recommendation
By Minute Motion:
1. Approve the following Mills Act contract(s) for 72-483 EI Paseo, Unit #1115, in
Sandpiper Condominiums, APN 640-200-010-5, in accordance with section
29.70.030 of the Palm Desert Municipal Code.
2. Authorize City Manager and City Attorney to approve, sign and execute the
contracts.
Strateqic Plan
Providing owners of qualified historic buildings the opportunity to participate in a Mills Act
program further promotes the goals of the Art and Culture element of the City's Envision
Palm Desert Strategic Plan because this landmark designation will increase public
recognition and appreciation of an architectural and artistic treasure. Cultural tourism
events are growing in popularity and are scheduled throughout the Coachella Valley to
celebrate this type of architecture. Tourists drawn to Palm Desert to view our growing list
of cultural landmarks provide economic benefits to the City of Palm Desert.
Executive Summary
The Mills Act allows the City to enter into a historical property preservation agreement,
also known as a"Mills Act contracY' with the owner of a qualified owner-occupied or
income-producing property for the purpose of protecting and preserving properties of
historical significance. As a general rule, a building is considered historic if it is at least 50
years old and considered to be a good example of a particular architectural style or if it is
associated with a person or event of local, statewide, or national historic importance.
Once a property owner enters into a contract, the County Assessor will determine the
value of the property as of January 1 of each year based upon an income approach to
valuation ("restricted value") rather than the property's market value. The income
projected for an owner-occupied property is based on comparable rents for similar
properties in the area or, if sufficient rental information is unavailable, the income that it
August 27, 2020 - Staff Report
Mills Act Contract
Page 2 of 3
could reasonably be expected to produce under prudent management. In the case of an
income producing property, the income amount is based on rent actually received and on
typical rents received for similar properties having similar uses. The restricted value can
be considerably lower than the market value thereby creating tax savings to the property
owner, especially if the building was recently purchased.
During the term of the contract, the property owner is required to allow for periodic
examinations of the interior and exterior of the premises by the County Assessor, the
Department of Parks and Recreation, the State Board of Equalization, and the City or its
agent as may be necessary to determine the Owner's compliance with the Agreement.
Backqround Analvsis
The Mills Act (Government Code 50280 et seq.) is a State law that provides incentives
for the restoration and preservation of qualified historic buildings by private property
owners. Enacted in 1972, the Mills Act legislation grants participating local governments
(cities and counties) the authority to enter into contracts with owners of qualified owner-
occupied and income-producing property who actively participate in the rehabilitation,
restoration, preservation, and maintenance of their historic property. In exchange,
participating property owners may be eligible for a reduction in their property taxes.
The Mills Act is recognized as one of the most important incentive programs available in
California for use by private property owners pf qualified historic buildings. Over 80
communities in the state have established a Mills Act program.
Applications for a Mills Act contract are hereby presented to the City Council for review
and approval. The staff has developed a Mills Acts Program Manual (available upon
request), which includes an overview of the Mills Act program, submittal requirements,
and worksheets needed for review and processing of Mills Act contract requests.
August 27, 2020 - Staff Report
Mills Act Contract
Page 3 of 3
Fiscal Analvsis
There is no fiscal impact associated with this action.
LEGAL REVIEW DEPT. REVIEW FINANCIAL
REVIEW
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Robert W. Hargreaves Russell A. Grance Janet M. Moore
City Attorney Director of Building and Director of Finance
Safety
'' �_
City Manager Lauri Aylaian:
APPLICANT: Lee Kinoshita-Bevington
72-483 EI Paseo, Unit #1115
Palm Desert, Ca 92260
ASSISTANT
CITY MANAGER
.�lndy �irestine
Andy Firestine
Assistant City Manager
ATTACHMENTS: 1. Mills Act Contract
RECORDING REQUESTED BY, AND
WHEN RECORDED, MAIL TO:
City Clerk’s Office
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
FOR THE BENEFIT OF THE
CITY OF PALM DESERT
- NO FEE -
6103 OF THE GOVT. CODE
(This Space for Recorder’s Use Only)
Historic Property Preservation Agreement
(“Mills Act Contract”)
Between
City of Palm Desert, California
a Municipal Corporation “City”
and
Lee Kinoshita-Bevington
“Owner”
Legal Description of Property
APN 640-200-010-5
72-483 El Paseo, #1115, Palm Desert, California 92260
Dated: August 27, 2020
(Resolution No. 2013-28 – Case No. CRPC 13-01
Approved at the Palm Desert City Council Meeting of May 23, 2013)
____________________________________________________________________________________________________________
(Title of Document)
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HISTORIC PROPERTY PRESERVATION AGREEMENT
(“MILLS ACT CONTRACT or Agreement”)
This agreement is made this August 27, 2020, by and between the City of Palm Desert, a
municipal corporation (“City”) and Lee Kinoshita-Bevington (“Owner”).
RECITALS
1. California Government Code section 50280, et. seq. allow 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 72-483 El
Paseo, #1115, Palm Desert, California (“Historic Property”). A legal description of the Historic
Property is attached hereto as Exhibit “A,” and incorporated herein by this reference.
3. On May 23, 2013, the Cultural Resources Preservation Committee and/or the City
Council designated the Historic Property as an historic resource pursuant to the terms and
provisions of Title 29 of the Palm Desert Municipal Code.
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.
TERMS NOW, THEREFORE, the City and Owner in consideration of mutual covenants and
conditions set forth herein, do hereby agree as follows:
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1. Effective Date and Term of Agreement. This Agreement shall be effective and
commence on August 27, 2020, (“Effective Date”) and shall remain in effect for a term of
ten (10) years thereafter.
2. Yearly Renewal. Each year upon the anniversary of the Effective Date
(“Renewal Date”), an additional one (1) year shall automatically be added to the remaining
term of the Agreement unless a notice of nonrenewal is delivered as provided in Section
3 of this Agreement.
3. Nonrenewal. If either the Owner or City desires in any year not to renew this
Agreement, Owner or City shall serve a written notice of nonrenewal upon the party in
advance of the Renewal Date (“Notice 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 Nonrenewal. Within fifteen (15) days of Owner’s receipt
of the Notice of Nonrenewal from City, Owner may file with City a written protest of the
Notice of Nonrenewal. Upon receipt of the written protect, the City Council shall set a
hearing prior to the expiration of the Renewal Date of this Agreement. Owner may furnish
the City Council with any information which Owner deems relevant and shall furnish the
City Council with any information it may require. The City Council may, at any time prior
to the annual Renewal Date, withdraw its Notice of Nonrenewal.
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. Attached hereto as Exhibit
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“B,” and incorporated herein by this reference, is a list of the minimum
standards and conditions for maintenance, use, protection, and
preservation of the Historic Property, which shall apply to the Historic
Property and be complied with by Owner throughout the term of this
Agreement. In addition, Owner shall comply with the terms of the City’s
Cultural Resources Ordinance 1168 (Title 29 of the Palm Desert Municipal
Code), and shall obtain any applicable permits necessary to protect,
preserve, restore, and rehabilitate the Historic Property so as to maintain its
historical and cultural significance.
B. Owner shall, where necessary, repair, maintain, restore, and rehabilitate the
Historic Property according to the rules and regulations of the Office of
Historic Preservation of the State Department of Parks and Recreation and
the City of Palm Desert. The condition of the exterior of the Historic Property
on the effective date of this Agreement is documented in photographs
attached as Exhibit “C” and incorporated herein by this reference. At a
minimum, Owner shall continually maintain the exterior of the Historic
Property in the same condition as documented in Exhibit “C.”
C. Owner shall carry out specific restoration, repair, maintenance, and/or
rehabilitation projects on the Historic Property, as outlined in the attached
Exhibit “D,” which is incorporated herein by this reference. All such projects
shall be undertaken and completed in accordance with the Secretary of
Interior Standards for Rehabilitation and the City of Palm Desert design
guidelines.
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. City shall inspect Historic
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Property prior to entering into this Agreement and at least every five years thereafter to
determine Owner’s continued compliance with Agreement.
7. Provision of Information of Compliance. 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.
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), 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 50286, that Owner breached any of the conditions of the
Agreement, Owner allowed the Historic Property to deteriorate to the point
that it no longer meets the standards for a qualified historic property, or
Owner failed to maintain and preserve the Historic Property in accordance
with the terms of this Agreement. If this Agreement is cancelled, under this
paragraph, Owner shall pay a cancellation fee to the Office of the Auditor
for the County of Riverside 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
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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. 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. If the Historic Property is acquired in whole or
in part by eminent domain or other acquisition by any entity authorized to exercise the
power of eminent domain, and the acquisition is determined by the City Council to
frustrate the purpose of this Agreement, this Agreement shall be cancelled. No
cancellation fee pursuant to Government Code section 50286 shall be imposed if the
Agreement is cancelled pursuant to this Section.
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 reach 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 herein after executed, covering or
conveying the Historic Property, or any portion thereof, shall conclusively be held to have
been executed, delivered and accepted subject to the covenants, reservations and
restrictions are set forth in such contract, deed or other instrument.
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12. Covenants Run with the Land. City and Owner hereby declare their
understanding and intent that the burden of the covenants, reservations and restrictions
set forth herein touch and concern the land in that it restricts development of the Historic
Property. City and Owner hereby further declare their understanding and intent that the
benefit of such covenants, reservations and restrictions touch and concern the land by
enhancing and maintaining the cultural and historical characteristics and significance of
the Historic Property for the benefit of the public and the Owner.
13. Notice. Any notice required to be given by the terms of this Agreement shall be
provided at the address of the respective parties as specified below or at any other
address as may be later specified by the parties hereto:
City: City of Palm Desert
Department of Building and Safety
73-510 Fred Waring Drive
Palm Desert, CA 92260
Owner: Lee Kinoshita-Bevington
72-483 El Paseo #1115, Palm Desert, Ca 92260
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, 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; and (iii) any restrictions on
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the use or development of the Historic Property, from application or enforcement of Title
29 of the City’s Municipal Code, 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 legal expenses and costs
incurred by each of them.
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, 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.
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 Riverside.
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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.
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 Riverside, State of California, and the parties hereby waive all provisions of law
providing for a change of venue in such proceedings to any other county.
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IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and
year first above written.
Dated: _______________ CITY OF PALM DESERT
By ________________________
GINA NESTANDE, MAYOR
ATTEST:
By ________________________________
GRACE L. ROCHA, ACTING CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
Dated: ________________
LEE KINOSHITA-BEVINGTON
OWNER
APPROVED AS TO FORM
___
ROBERT W. HARGREAVES
CITY ATTORNEY
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A notary public or other officer completing this certificate verifies only the identity of
the individual who signed the document to which this certificate is attached, and not
the truthfulness, accuracy, or validity of that document.
State of ___________________ }
} SS.
County of __________________ }
On , 2020 , before me,____________________, a Notary Public,
personally appeared__________________________________________, who
proved to me on the basis of satisfactory evidence to be the person(s) whose name(s)
is/are subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
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Exhibit “A”
Legal Description
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Exhibit “B”
Property Maintenance Minimum Standards
1. The Historic District Property shall comply with all regulations of Title 8 and Title 9,
Palm Desert Municipal Code, including the definition of “Good Repair” as outlined in
Sections 29.20 and 29.60.160;
2. The Historic District Property shall continue to be maintained in a manner consistent
with the level of maintenance that has customarily been employed at the property and
consistent with the typical condominium development in the Palm Desert area.
3. The Historic District Property shall not have non-operational vehicles or portions of
them in public view;
4. The Historic District Property shall not have stagnant or standing water;
5. The Historic District Property shall not have overgrown or decaying landscaping. All
landscape features should be maintained including, but not limited to, grass, trees,
and any plantings.
6. The Historic District Property shall prominently display and properly maintain its City
Landmark plaque.
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CITY OF PALM DESERT, CALIFORNIA
HISTORIC PROPERTY PRESERVATION AGREEMENT
(“MILLS ACT CONTRACT”)
RESOLUTION NO. 2013-28 – CASE NO. CRPC 13-01
Between
CITY OF PALM DESERT
A Municipal Corporation
and
LEE KINOSHITA-BEVINGTON
Owner of the property located at
72-483 El Paseo, #1115, Palm Desert, CA 92260
APN: 640-200-010-5
EXHIBIT C
(Photographs of the condition of the exterior of the Historic Property)
Not able to be appropriately recorded,
Is on file in the
Office of the City Clerk
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260
(760) 346-0611 Ext. 304
___________________________________
GRACE ROCHA, INTERIM CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
AUGUST 27, 2020
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Exhibit “D”
10 Year Property Improvement Plan