HomeMy WebLinkAboutAPN 627-102-024 - Mills Act Contract - Amend 1STAFF REPORT
CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
MEETING DATE: May 23, 2019
PREPARED BY: Cora L. Gaugush, Management Specialist II
REQUEST: Approve Amendment No. 1 to the Historic Property Preservation
Agreement, "Mills Act Contract", for Property Located at 73697 Santa
Rosa Way (APN 627-102-024)
Recommendation
By Minute Motion:
1. Approve Amendment No. 1 to the Historic Property Preservation Agreement,
"Mills Act Contract", for Property Located at 73697 Santa Rosa Way (APN 627-
102-024), and
2. Authorize the Mayor to execute the same.
Strateqic Plan
This item is an Amendment to a previously approved item, and does not impact the
Strategic Plan.
Background Analvsis
The Miles Bates House, located at 73697 Santa Rosa, Palm Desert is a one -of -a -kind
example of the architecture of Walter S. White. While many of his works are located in
Palm Desert, this is the only known example of his unique "wave" roof. Since the sale of
the property by Successor Agency to the Palm Desert Redevelopment Agency (SARDA),
it has been listed on the National Register of Historic Places (National Register), as well
as in the California Register of Historical Resources.
Because of the historical significance of the property, it is the City's desire to see the
house preserved. To aid in the effort, the City Council authorized $50,000 to the future
owners of the Miles C. Bates House as incentive to preserve the historical and cultural
features of the house.
The owners have now spent in excess of $500,000 in restoring the house. Staff has
reviewed the receipts submitted for restoration and found the items consistent with the
intended purpose of restoration.
May 23, 2109- Staff Report
Approve Amendment No. 1 to Mills Act Contract (APN 627-102-024)
Page 2 of 2
On December 13, 2018, the City Council approved the Historic Property Preservation
Agreement, "Mills Act Contract" for this property. Under state law, this contract will remain
in effect for at least ten (10) years. The proposed amendment to the contract provides
that, in exchange for the City's payment of $50,000, the owners of the Wave House will
agree not to exercise their right of non -renewal of the "Mills Act Contract" for the Miles
Bates House for a period of 25 years.
Fiscal Analvsis
There is no cost above the amount already approved for the restoration efforts associated
with this item.
LEGAL REVIEW DEPT. REVIEW FINANCIAL CITY MANAGER
REVIEW
Robert W. Tom Garcia, P.E. t Moore Lauri Aylaian
Hargreaves Director of Public Works Director of Finance City Manager
City Attorney
APPLICANT: Palm Desert Wave House, LLC
3908 Dixie Canyon Avenue
Sherman Oaks, California 91423
ATTACHMENTS: Amendment No. 1 to Mills Act Contract for 73697 Santa Rosa Way
AMENDMENT TO HISTORIC PROPERTY
PRESERVATION AGREEMENT
PALM DESERT WAVE HOUSE
This Amendment is made this 23rd day of Mav 2019, by and between the
City of Palm Desert, a municipal corporation ("City") and Palm Desert Wave
House, LLC (Owner").
RECITALS
1. On December 13, 2018, City and Owner entered into a "Historic
Property Preservation Agreement ("Mills Act Contract"), which was subsequently
recorded as instrument No. 2019-0013756 in the official records of the County of
Riverside, California. The Mills Act Contract provides that Owner will maintain
the characteristics of cultural and historic significance of the property known as the
"Wave House".
2. Section 3 of the Mills Act Contract provides that either the Owner of
the City may provide notice of nonrenewal at least ninety (90) days prior to then
current Renewal Date.
3. To date, Owner has expended in excess of $500,000 in restoring the
Wave House.
4. City desires to ensure that the cultural and historical characteristics of
the Wave House are preserved for at least 25 years and agrees to reimburse Owner
$50,000 for expenditures Owner has made to restore the Wave House, in exchange
for Owner's agreement not to exercise its right of non -renewal for a period of 25
years.
TERMS
The Mills Act Contract is hereby amended to provide as follows:
1. Owner will not exercise its right to non -renewal provided under
Section 3 of the Mills Act Contract before December 13, 2043.
2. Within thirty (30 days) of the execution and recording of this
Amendment, City shall pay Owner the sum of $50,000.
3. All other terms of the Mills Act Contract remain the same.
4. No later than twenty (20) days after the execution of this Amendment,
City shall cause this Amendment to be recorded in the office of the County
Recorder of the County of Riverside.
IN WITNESS WHEREOF, City and Owner have executed this Agreement
on the day and year first written above.
Dated:
Dated:
APPROVED AS TO FORM:
City Attorney
CITY OF PALM DESERT
RE
Susan Marie Weber, Mayor
ATTESTED TO:
M
Rachelle D. Klassen, City Clerk
City of Palm Desert, California
Palm Desert Wave House, LLC
Palm Desert Wave House, LLC