HomeMy WebLinkAboutMills Act - Sandpiper CRPC 13-01 - 72477 El Paseo #1112STAFF REPORT
CITY OF PALM DESERT
DEPARTMENT OF BUILDING AND SAFETY
MEETING DATE: June 13, 2019
PREPARED BY: Russell A. Grance, Director of Building and Safety
REQUEST: Approve Mills Act Contract for property located at 72-477 El Paseo
#1112, in Sandpiper Condomimums, APN 640-200-016.
Recommendation
By Minute Motion:
1. Approve the following Mills Act contract(s) for 72-477 El Paseo, #1112, APN
640-200-016, in accordance with section 29.70.030 of the Palm Desert
Municipal Code.
2. Authorize the City Manager and City Attorney to sign and execute the contracts.
Strateqic Plan
By 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 contract," 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
June 13, 2019 - Staff Report
Mills Act Contract
Page 2of3
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.
Background 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 of 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, which includes an
overview of the Mills Act program, submittal requirements and worksheets needed for
review and processing of Mills Act contract requests (Attachment 2).
June 13, 2019 - Staff Report
Mills Act Contract
Page 3 of 3
Fiscal Analvsis
There is no fiscal impact associated with this action.
LEGAL REVIEW
t
rgreaves
City Attorney
DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER
411
Russell A. Grance Moore auri Aylaian 7
Director of Building and Director of Finance City Manager
Safety
APPLICANT: Ralph E. Siegel and Alicia A Siegel Trustees of the Siegel California
Revocable Residential Trust dated April 2, 1018
72-507 El Paseo, Unit #1112
Palm Desert, Ca 92260
ATTACHMENTS: 1. Mills Act Contract
2. Mills Act Program Manual
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
Ralph E. Siegel and Alicia A. Siegel Trustees of the
Siegel California Revocable Residential Trust dated
April 2, 2018
"Owner"
Legal Description of Property
APN 640-200-016
72-477 El Paseo, #1112, Palm Desert, California 92260
Dated: June 13, 2019
(Resolution No. 2013-28 — Case No. CRPC 13-01
Approved at the Palm Desert City Council Meeting of May 23, 2013)
(Title of Document)
HISTORIC PROPERTY PRESERVATION AGREEMENT
("MILLS ACT CONTRACT or Agreement")
This agreement is made this June 13, 2019, by and between the City of Palm Desert, a
municipal corporation ("City") and Ralph E. Siegel and Alicia A. Siegel Trustees of the
Siegel California Revocable Residential Trust dated April 2. 2018 ("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 72-477 El
Paseo, #1112. 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 Mav 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, inconsideration 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.
K
TERMS 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 Aqreement. This Agreement shall be effective
and commence on June 13, 2019, ("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 Citv 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:
3
A. Owner shall preserve and maintain the characteristics of the cultural and
historical significance of the Historic Property. Attached hereto as
Exhibit "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.
4
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 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 Aareement: 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. Remedv - 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
5
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 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. Bindina Effect of Aareement. 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
C.
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.
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: Ralph E. Sieael and Alicia A. Sieael Trustees of
the Sieael California Revocable Residential
Trust dated Aoril 2. 2018
72-477 El Paseo #1112. Palm Desert. Ca 92260
14. Effect of Aareement. None of the terms, provisions or conditions of this
Agreement shall be deemed to create a partnership between the parties hereto and
VA
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 Citv. 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 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. Bindina 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. Leaal 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
8
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.
20. Amendments. This Agreement may be amended, in whole or in part, only
by written recorded instrument executed by the parties hereto.
21. Governina 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.
E
IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and
year first above written.
Dated:
Dated:
APPROVED AS TO FORM
ROBERT W. HARGREAVES
CITY ATTORNEY
CITY OF PALM DESERT
SUSAN MARIE WEBER, MAYOR
ATTEST:
X
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
_(owner name typed)
Owner
Owner
10
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 , 2019, 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
11
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.
CITY OF PALM DESERT, CALIFORNIA
HISTORIC PROPERTY PRESERVATION AGREEMENT
("MILLS ACT CONTRACT")
RESOLUTION NO. 2013-01 — CASE NO. CRPC 13-01
Between
CITY OF PALM DESERT
A Municipal Corporation
and
Ralph E. Siegel and Alicia A. Siegel Trustees of the Siegel California Revocable
Residential Trust dated April 2. 2018
Owner(s) of the property located at
72-477 El Paseo, #1112, Palm Desert, CA 92260
APN: 640-200-016
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
RACHELLE D. KLASSSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
JUNE 13, 2019
t 1*7
'qf. I.q`
- 1 F
7� � ►tM
� ws
AIL
Exhibit "D"
10 Year Property Improvement Plan
See Attached
10-Year Property Improvement Plan
For sample projects qualifying under the Mills Act see Appendix "A". Attach additional
sheets if necessary.
Year Proposed Project Estimated Cost
Repairs & maintenance, property protection and painting $3,650
Repairs & maintenance, property protection, painting and $4,150
2 landscape plantings
3 Repairs & maintenance, property protection and painting $3,650
4 Repairs & maintenance, property protection and painting .$3,650
Repairs & maintenance, property protection, painting and $4,150
5 landscape plantings
6 Repairs & maintenance, property protection and painting $3,650
7 Repairs & maintenance, property protection and painting .$3,650
Repairs & maintenance, property protection, painting and $4,150
8 landscape plantings
9 Repairs & maintenance, property protection and painting $3,650
10 Repairs & maintenance, property protection and painting $3,650
This schedule will be attached as an exhibit to the Historic Property Preservation
Agreement (Mills Act Contract). It may be revised or updated by mutual consent of the
property owner(s) and the Cultural Resources Administrator in the Department of Building
and Safety.
All projects that affect the exterior of the property are subject to review and approval by
the Cultural Resources Administrator and/or the Cultural Resources Preservation
Committee before work begins. Work must meet all City requirements and the Secretary
of the Interior's Standards for Rehabilitation (Appendix B).
9
CITY OF PALM DESERT
MILLS ACT PROGRAM
APPLICATION MANUAL
Department of Building and Safety
73-510 Fred Waring Drive
Palm Desert, CA 92260
(760)346-0611
TABLE OF CONTENTS
APPLICATION INFORMATION
Introduction and Purpose 3
Property Qualifications 3
Terms of a Contract 3
Administration 4
Application and Selection Process 5
FORMS
Application Checklist 6
Application 7
10-Year Property Improvement Plan 8
APPENDICES
A. Sample Projects Qualified Under the Mills Act 10
B. Secretary of the Interior's Standards for Rehabilitation 11
C. Sample Mills Act Contract 12
D. Sample Site Plan 25
E. Site Inspection Form 26
F. State Mills Act Legislation 27
,41
MILLS ACT PROGRAM
APPLICATION MANUAL
INTRODUCTION AND PURPOSE
The City of Palm Desert Mills Act Program was established by Resolution No. 2011-1 in
2011. The Mills Act is state legislation, enacted in 1972, that grants participating local
governments the authority to enter into contracts with owners of qualified historic
properties who receive a reduction in local property taxes to help offset the costs to
restore, rehabilitate, repair and maintain their properties. Although it is applicable to
historic income producing properties, it is the single most important economic incentive
program available in California for owner occupied historic residential buildings,
particularly single-family homes. A Mills Act program is developed in accordance with
California Government Code, Article 12, Sections 50280-50290 and California Revenue
and Taxation Code, Article 1.0, Sections 439-439.4
This manual is designed to assist you in completing the Mills Act application and provides
a summary of the program requirements.
QUALIFYING HISTORIC PROPERTIES
To qualify for the Palm Desert Mills Act program a property must be one of the
following:
❑ Designated City Landmark
❑ Contributing feature of a designated City historic district
❑ Listed individually in the National Register of Historic Places
❑ Contributing feature of historic district listed in the National Register of Historic
Places
❑ National Historic Landmark
A property must be designated at the time an application is submitted. Questions
regarding the designation status of a property of the City's designation program can be
addressed to the Cultural Resources Administrator in the Department of Building and
Safety.
TERMS OF A MILLS ACT CONTRACT
Duration: A Mills Act contract is for a minimum term of ten years. It is automatically
renewed each year on its anniversary date and a new ten year term becomes effective.
Contracts are transferred to new owners when the property is sold.
3
Termination: The property owner may terminate the contract by notifying the City at least
ninety (90) days prior to the annual renewal date. The City may terminate the contract by
notifying the owner at least sixty (60) days prior to the renewal date. The owner may make
a written protest about termination by the City. The contract remains in effect for the
balance of the term of the contract beyond the year of termination.
Alterations or Additions to a Property: Work performed on the property (interior,
exterior, and grounds) must meet all City requirements and comply with the "Secretary
of the Interior's Standards for Rehabilitation". A 10-Year Property Improvement Plan is
required as part of the application and will be re-evaluated by the City every five years
or as needed.
Annual Reports: Property owners are required to submit an annual report to the City
indicating work completed per the 10-Year Property Improvement Plan. The report is
due by December 31 of each year and should include copies of receipts and/or building
permits where applicable.
Inspection for Compliance: City staff conducts a pre -contract inspection of the
property to ensure compliance with the terms of the contract. Conditions not conforming
to the Secretary of the Interior's Standards for Rehabilitation may be required to be
brought into compliance before a contract is executed. City staff will conduct annual
property inspections following submittal of the annual report to ensure that proposed work
has been completed and meets all applicable City standards. Inspections may also be
required by the County Assessor, State office Historic Preservation and/or State Board of
Equalization. All inspections are by appointment with the property owner.
Breach of Contract: If the City determines that the property owner is in breach of contract,
the City may cancel the contract and the owner is liable for a cancellation fee of 12.5%
of the current value of the property as determined by the County Assessor.
ADMINISTRATION
City of Palm Desert: Mills Act applications and contracts are administered by the Cultural
Resources Administrator in the Department of Building and Safety. Upon selection for
the program, contracts are reviewed by the Cultural Resources Preservation
Committee and referred to the City Council for approval.
Riverside County: The County records executed Mills Act contract documents with the
County Recorder before December 31 of the applicable calendar year. After
recordation, the City transmits contract documents to the Riverside County Assessor
where the calculation for the exact property tax under the Mills Act is completed.
4
The County Assessor calculates the tax saving using a stated -mandated reassessment
formula based on "capitalization of income" rather than simple "market value." Mills Act
participants may realize a property tax savings averaging about 50% each year
depending on property value, net operating income, and other variables. Recently
purchased historic properties are most likely to receive the highest reduction. The Mills
Act Program does not guarantee a reduction amount for any property.
Contracts that are recorded by December 31 are reassessed by June 30 of the
following year and the reduced tax will appear on the tax bill of October of that year.
State of California: Within six months of entering into a Mills Act contract, the property
owner must submit written notice to the State Office of Historic Preservation. This
notification states that the property owner has entered into a Mills Act contract. A copy
of the letter must be submitted to the City Cultural Resources Administrator.
APPLICATION AND SELECTION PROCESS
The City accepts up to seven (7) Mills Act contracts per year. Applications are accepted
year-round, but to be considered for the next fiscal year applications must be submitted
by July 30tn
Fees: A non-refundable application fee of $318.00 is due with your application. If your
application is accepted, a contract initiation fee deposit of $1000.00 will be due.
Submittal Requirements: The application should include the following:
1. Application Checklist
2. Application Form
3. Copy of the grant deed, including a complete legal description
4. 10-Year Property Improvement Plan
5. Photographs — Photographs shall be black and white 35mm film including
negatives or compact disc (CD) of the building interior (all rooms) and exterior
(front, sides, rear as well as assessor buildings, and hardscape and landscape
features). Include as many views of architectural details as necessary to
document the character defining features of the building and site. Include one 8 x
10 printed image that best captures the property, (e.g. front fagade). Images shall
be printed onto archival paper in 3 x 5, 4 x 6 or multiple image letter sized sheet
format.
6. Site plan — The plan shall be drawn to scale and showing the location of all
buildings, structures and major site features on the property, street names, north
arrow, and dimensions.
7. Non-refundable application fee of $318.00
The complete application should be submitted to:
Cultural Resources Administrator
Department of Building and Safety
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
5
City of Palm Desert Mills Act
Application Checklist
The following should be completed and submitted with your application packet. See the
Palm Desert Mills Act Application Manual for details on the submittal requirements.
t Application Form
t Copy of the grant deed, including complete legal description
t 10-Year Property Improvement Plan
fi Photographs
t Site Plan
fi Non -Refundable Application Fee
The complete application should be submitted to:
Cultural Resources Administrator
Department of Building and Safety
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
0
City of Palm Desert
Department of Building and Safety
MILLS ACT HISTORIC PROPERTY CONTRACT APPLICATION
73-510 Fred Waring Drive - Palm Desert - California - 92260 - (760) 776-6420 • Fax (760) 776-6392
s
Property Owner Information:
Name:
City: State:
Phone: (HM) (WK)
Property Information:
Address of Property:
Parcel No(s):
Description (attach additional sheets if necessary):
Date of Purchase by Current owner:
Use of Property:
Eligibility for the Mills Act Program:
Zip:
Email:
Address:
Assessor's
Legal
A property must be designated and recorded with the Riverside County Recorder at the time an
application is submitted. Please check the designation(s) that apply to the property:
City Historic Landmark
Contributor to a City Historic District
National Register of Historic Places (individually listed)
National Register of Historic Places (contributor to a historic district)
National Historic Landmark
Name of Historic District (if applicable):
Date of Designation:
Property Owner Consent: I am (we are) the present owner(s) of the property described
above and hereby apply for consideration for a Mills Act Historic Property Contract
Signature of Property Owner
Signature of Property Owner
For Office Use:
Date
Date
Mills Act Application
7
10-Year Property Improvement Plan
For sample projects qualifying under the Mills Act see Appendix "A". Attach additional
sheets if necessary.
Year Proposed Project Estimated Cost
1
2
3
4
5
6
7
8
9
10
This schedule will be attached as an exhibit to the Historic Property Preservation
Agreement (Mills Act Contract). It may be revised or updated by mutual consent of the
property owner(s) and the Cultural Resources Administrator in the Department of Building
and Safety.
All projects that affect the exterior of the property are subject to review and approval by
the Cultural Resources Administrator and/or the Cultural Resources Preservation
Committee before work begins. Work must meet all City requirements and the Secretary
of the Interior's Standards for Rehabilitation (Appendix B).
0
APPENDICES
A. Sample Projects Qualified Under the Mills Act
B. Secretary of the Interior's Standards for Rehabilitation
C. Sample Mills Act Contract Agreement
D. Sample Site Plan
E. Site Inspection Form
F. State Mills Act Legislation
APPENDIX
Sample Projects Qualified Under the Mills Act Program
Access Modifications — Exterior
Access Modifications — Interior
Accessory Structure — Repair or Replace
Annual Maintenance and Repairs
Appliance Vent
Architectural — Remove Non -historic feature and
Restore to Original
Architectural Trim — Repair
Architectural Trim — Replace
Architectural Trim — Install New
Balcony/Decks — New Railings
Balcony/Decks — Repair or Replace
Basement — Access — Repair or Replace to Code
Basement — New or Rebuild
Cabinets — New Built-in Bathroom
Cabinets — New Built-in Kitchen
Cabinets — New Built-in Other
Caulking
Chimney — Inspect and Clean
Chimney — New
Chimney — Rebuild or Repair
Code Repair Item
Column — Replace or Rebuild
Corbels/Structural Brackets — Replace or Repair
Door — Hardware
Door — New Basement Hatch Cover and Base
Door — Repair or Replace
Drain for Deck — Install or Repair
Drainage Protection or Correction
Dry -Rot Remove, Repair, and/or Replace
Electrical — Rewire or Install New Outlets
Electrical — Complete Rewire and Service Upgrade
Electrical — Ground and Service Entry
Electrical — Install New Circuits
Electrical — Lighting Fixtures
Electrical — New Service Lines to Garage
Electrical — Security Lighting and Alarm
Electrical — New Outlets
Flashing
Floor Furnace — Remove or Restore
Flooring — Carpet
Flooring — Repair
Flooring - Repair Wood Floors
Flooring — Replacement
Foundation — Bolting and Seismic Work
Foundation — New
Foundation — Repair
Gable or Attic — Re -screening
Garage Door
Garage — Repair or Replace
Gutters and Downspouts
HVAC — Complete New System
HVAC — Maintenance or Repair
Insulation — Walls
Insulation — Attic
Interior Trim — Refinish
Kitchen — New Counters
Masonry — New
Masonry — Repair or Replace Tile Hearth
Masonry — Repairs
Masonry — Re -point Brick
Mechanical — Air Conditioning
Mechanical — Heating Unit
Mechanical — Ventilation and Duct Work
Painting — Exterior
Painting — Interior
Painting — Lead Based Paint Removal
Painting — Exterior Trim
Patio — Repair
Plastering — Remove, Replace, or Refinish
Plumbing — DWV (Drain, Waste, Vent)
Plumbing — Fixtures
Plumbing — Install New Supply Lines Plumbing —
Install Sump Pump & discharge drain
Plumbing — Minor Repairs
Plumbing — New Supply
Plumbing — Service Lines
Plumbing — Sewer
Porch — Ceiling Replacement
Porch — Repair or Replace
Porch Railing — Repair or Replace to Code
Porch — Resurface
Remove Substandard Construction
Repair Eaves and/or Overhangs
Repair Exterior Stucco
Replace Non -historic Feature
Roof — Minor Repair
Roof — Re -roof
Roof — Tear off and Install New
Security Lighting and Alarm System
Seismic Retrofitting
Siding — Remove Asbestos Siding and Restore
Siding — Repair or Replace
Skylights — Repair or Replace
Stair — Repair or Replace
Stone Work
Stoop — Repair or Replace
Structural — New Framing or Repairs
Structural Bracing
Structural Modifications
Structural Repairs — Roof and or Ceiling Joists
Termite Treatment
Termite Damage — Repair
Tile —Replace, Repair, Re -point
Utility Enclosure — New
Ventilation — Attic Fan
Waterproofing
Weatherproofing
Window — Screens or Hardware
Windows — Repair or Replacement
APPENDIX B
The Secretary of the Interior's Standards for Rehabilitation
The Standards (Department of Interior regulations, 36 CFR 67) pertain to historic buildings of all
materials, construction types, sizes, and occupancy and encompass the exterior and the
interior, related landscape features and the building's site and environment as well as attached,
adjacent, or related new construction. The Standards are to be applied to specific rehabilitation
projects in a reasonable manner, taking into consideration economic and technical feasibility.
1. A property shall be used for its historic purpose or be placed in a new use that requires
minimal change to the defining characteristics of the building and its site and environment.
2. The historic character of a property shall be retained and preserved. The removal of historic
materials or alteration of features and spaces that characterize a property shall be avoided.
3. Each property shall be recognized as a physical record of its time, place, and use. Changes
that create a false sense of historical development, such as adding conjectural features or
architectural elements from other buildings, shall not be undertaken.
4. Most properties change over time; those changes that have acquired historic significance in
their own right shall be retained and preserved.
5. Distinctive features, finishes, and construction techniques or examples of craftsmanship that
characterize a property shall be preserved.
6. Deteriorated historic features shall be repaired rather than replaced. Where the severity of
deterioration requires replacement of a distinctive feature, the new feature shall match the old in
design, color, texture, and other visual qualities and, where possible, materials. Replacement of
missing features shall be substantiated by documentary, physical, or pictorial evidence.
7. Chemical or physical treatments, such as sandblasting, that cause damage to historic materials
shall not be used. The surface cleaning of structures, if appropriate, shall be undertaken using
the gentlest means possible.
8. Significant archeological resources affected by a project shall be protected and preserved. If
such resources must be disturbed, mitigation measures shall be undertaken.
9. New additions, exterior alterations, or related new construction shall not destroy historic
materials that characterize the property. The new work shall be differentiated from the old and
shall be compatible with the massing, size, scale, and architectural features to protect the
historic integrity of the property and its environment.
10. New additions and adjacent or related new construction shall be undertaken in such a manner
that if removed in the future, the essential form and integrity of the historic property and its
environment would be unimpaired.
Recording Requested by:
When Recorded Mail to:
CITY OF PALM DESERT
73-510 Fred Waring Drive
Palm Desert, CA 92260
Attention: Cultural Resources
Administrator
APPENDIX C
(Space above for Recorder's Office)
HISTORIC PROPERTY PRESERVATION AGREEMENT
("MILLS ACT CONTRACT")
between
THE CITY OF PALM DESERT
a municipal corporation
and
Owner(s) of the property located at
APN
HISTORIC PROPERTY PRESERVATION AGREEMENT
("MILLS ACT CONTRACT")
This agreement is made this , by and between the City of Palm
Desert, a municipal corporation ("City") and ("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
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 , 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:
1. Effective Date and Term of Agreement. This Agreement shall be effective and
commence on , 20 ("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 Citv 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
"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 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.
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
AN
to determine eligibility of the Historic Property and compliance with the terms and
provisions of this Agreement.
8. Breach of Aareement: 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
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 Prooertv: Eminent Domain: Cancellation. If the Historic
Property is destroyed by earthquake, fire, flood, or other natural disaster such that in the
19
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. Bindina Effect of Aareement. 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.
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.
20
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:
14. Effect of Aareement. 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 Citv. 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
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.
21
16. Bindina 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. Leaal 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. Owner shall provide written notice of the contract to the State Office of Historic
Preservation within six (6) months of entering into the contract.
20. Amendments. This Agreement may be amended, in whole or in part, only by
written recorded instrument executed by the parties hereto.
21. Governina 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.
22
IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and
year first above written.
Dated:
Dated:
APPROVED AS TO FORM
City Attorney
CITY OF PALM DESERT
By
ATTESTED TO:
Owner
Owner
23
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 , 2019 , 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
24
APPENDIX D
SAMPLE SfTE PLAN
' PROPERTY
} LINE
I
PR€!PGBED '
' ROOM ADDITION
MR PATIn
!COVER -
N ESTINSE I +G FU
EMSTiNG E7KIaTIMO/PROPOiEG
FUCE
r3410 MOW 5a40
m I
FLAY .r I
r
STREET
Provide and observe the foillowing_
i. Prawide hNo (2) sets or plans (minimum) are required for all budding permits.
2. Plano am to be draumn nosily and muct be k4ble (nog graph pWa4.
3. PAnimr.an 81,12" x i 1" street size- (Fill sheet with sibe purl, Do not use edge aF paper fir
property lines.
d. Provide project address, owners narne, and phone number-
5. Shaw al streets, driveways, and a" (f any).
6. Gle'erty show an proposed and exhdng v rrstrction with aarrpieW dlnrenslo ns_
7. k bcate aU eas ent Weawtions. {refer to youir Title Report for ttus iirdorr nabon.
S. Shaw North arrow.
Mote: All dimensiorm shown on this airnple plan arc for reference only. Your
site purl must show, the actual dimensions for the tat kmated at the address.
25
APPENDIX E
MILLS ACT PROGRAM
CITY STAFF ANNUAL INSPECTION REPORT
Date of inspection: -{ Drive -by -{- Site Visit
Staff Name:
Was work completed in accordance with all City requirements? t Yes t No
Comments:
Signature:
26
APPENDIX F
GOVERNMENT CODE SECTION 50280-50290
50280. Upon the application of an owner or the agent of an owner of any qualified historical property, as
defined in Section 50280.1, the legislative body of a city, county, or city and county may contract with the
owner or agent to restrict the use of the property in a manner which the legislative body deems
reasonable to carry out the purposes of this article and of Article 1.9 (commencing with Section 439) of
Chapter 3 of Part 2 of Division 1 of the Revenue and Taxation Code. The contract shall meet the
requirements of Sections 50281 and 50282.
50280.1. "Qualified historical property" for purposes of this article, means privately owned property which
is not exempt from property taxation and which meets either of the following:
(a) Listed in the National Register of Historic Places or located in a registered historic district,
as defined in Section 1.191-2(b) of Title 26 of the Code of Federal Regulations.
(b) Listed in any state, city, county, or city and county official register of historical or architecturally
significant sites, places, or landmarks.
50281. Any contract entered into under this article shall contain the following provisions:
(a)The term of the contract shall be for a minimum period of 10 years.
(b) Where applicable, the contract shall provide the following:
(1) For the preservation of the qualified historical property and, when necessary, to restore and
rehabilitate the property to conform to the rules and regulations of the Office of Historic
Preservation of the Department of Parks and Recreation, the United States Secretary of the
Interior's Standards for Rehabilitation, and the State Historical Building Code.
(2) For the periodic examinations of the interior and exterior of the premises by the assessor,
the Department of Parks and Recreation, and the State Board of Equalization as may be
necessary to determine the owner's compliance with the contract.
(3) For it to be binding upon, and inure to the benefit of, all successors in interest of the owner.
A successor in interest shall have the same rights and obligations under the contract as the
original owner who entered into the contract.
(c) The owner or agent of an owner shall provide written notice of the contract to the Office of
Historic Preservation within six months of entering into the contract.
50281.1. The legislative body entering into a contract described in this article may require that the
property owner, as a condition to entering into the contract, pay a fee not to exceed the reasonable cost
of administering this program.
50282. (a) Each contract shall provide that on the anniversary date of the contract or such other annual date
as is specified in the contract, a year shall be added automatically to the initial term of the contract unless
notice of nonrenewal is given as provided in this section. If the property owner or the legislative body desires
in any year not to renew the contract, that party shall serve written notice of nonrenewal of the contract on
the other party in advance of the annual renewal date of the contract. Unless the notice is served by the
owner at least 90 days prior to the renewal date or by the legislative body at least 60 days prior to the
renewal date, one year shall automatically be added to the term of the contract.
(b) Upon receipt by the owner of a notice from the legislative body of nonrenewal, the owner may make a
written protest of the notice of nonrenewal. The legislative body may, at any time prior to the renewal
date, withdraw the notice of nonrenewal.
(c) If the legislative body or the owner serves notice of intent in any year not to renew the contract, the
existing contract shall remain in effect for the balance of the period remaining since the original execution
or the last renewal of the contract, as the case may be.
(d) The owner shall furnish the legislative body with any information the legislative body shall require in
order to enable it to determine the eligibility of the property involved.
(e) No later than 20 days after a city or county enters into a contract with an owner pursuant to this article,
the clerk of the legislative body shall record with the county recorder a copy of the contract, which shall
27
describe the property subject thereto. From and after the time of the recordation, this contract shall impart
a notice thereof to all persons as is afforded by the recording laws of this state.
50284. The legislative body may cancel a contract if it determines that the owner has breached any of the
conditions of the contract provided for in this article or has allowed the property to deteriorate to the point
that it no longer meets the standards for a qualified historical property. The legislative body may also cancel
a contract if it determines that the owner has failed to restore or rehabilitate the property in the manner
specified in the contract.
50285. No contract shall be canceled under Section 50284 until after the legislative body has given notice
of, and has held, a public hearing on the matter. Notice of the hearing shall be mailed to the last known
address of each owner of property within the historic zone and shall be published pursuant to Section
6061.
50286. (a) If a contract is canceled under Section 50284, the owner shall pay a cancellation fee equal to
121/2 percent of the current fair market value of the property , as determined by the county assessor as
though the property were free of the contractual restriction.
(b) The cancellation fee shall be paid to the county auditor, at the time and in the manner that the county
auditor shall prescribe, and shall be allocated by the county auditor to each jurisdiction in the tax rate area
in which the property is located in the same manner as the auditor allocates the annual tax increment in
that tax rate area in that fiscal year.
(c) Notwithstanding any other provision of law, revenue received by a school district pursuant to this section
shall be considered property tax revenue for the purposes of Section 42238 of the Education Code,
and revenue received by a county superintendent of schools pursuant to this section shall be considered
property tax revenue for the purposes of Article 3 (commencing with Section 2550) of Chapter
12 of Part 2 of Division 1 of Title 1 of the Education Code.
50287. As an alternative to cancellation of the contract for breach of any condition, the county, city, or any
landowner may bring any action in court necessary to enforce a contract including, but not limited to, an
action to enforce the contract by specific performance or injunction.
50288. In the event that property subject to contract under this article 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 legislative body to frustrate the purpose of the contract, such
contract shall be canceled and no fee shall be imposed under Section 50286. Such contract shall be deemed
null and void for all purposes of determining the value of the property so acquired.
50289. In the event that property restricted by a contract with a county under this article is annexed to a city,
the city shall succeed to all rights, duties, and powers of the county under such contract.
50290. Local agencies and owners of qualified historical properties may consult with the State Historical
Resources Commission for its advice and counsel on matters relevant to historical property contracts.
California Revenue and Taxation Code, Article 1.9, Sections 439 - 439.4
439. Historical Property Restrictions; enforceably restricted property.
For the purposes of this article and within the meaning of Section 8 of Article XIII of the
Constitution, property is "enforceably restricted" if it is subject to an historical property
contract executed pursuant to Article 12 (commencing with Section 50280) of Chapter 1
of Part 1 of Division 1 of Title 5 of the Government Code.
439.1. Historical Property; definitions.
For purposes of this article "restricted historical property" means qualified historical
property, as defined in Section 50280.1 of the Government Code, that is subject to a
historical property contract executed pursuant to Article 12 (commencing with Section
50280) of Chapter 1 of Part 1 of Division 1 of Title 5 of the Government Code. For purposes
of this section, "qualified historical property" includes qualified historical improvements and
any land on which the qualified historical improvements are situated, as specified in the
historical property contract. If the historical property contract does not specify the land that
is to be included, "qualified historical property" includes only that area of reasonable size
that is used as a site for the historical improvements.
439.2. Historical Property; valuation.
When valuing enforceably restricted historical property, the county assessor shall not
consider sales data on similar property, whether or not enforceably restricted, and shall
value that restricted historical property by the capitalization of income method in the
following manner:
(a) The annual income to be capitalized shall be determined as follows:
(1) Where sufficient rental information is available, the income shall be the fair rent that
can be imputed to the restricted historical property being valued based upon rent
actually received for the property by the owner and upon typical rentals received in the
area for similar property in similar use where the owner pays the property tax. When the
restricted historical property being valued is actually encumbered by a lease, any cash
rent or its equivalent considered in determining the fair rent of the property shall be the
amount for which the property would be expected to rent were the rental payment to be
renegotiated in the light of current conditions, including applicable provisions under
which the property is enforceably restricted.
(2) Where sufficient rental information is not available, the income shall be that which
the restricted historical property being valued reasonably can be expected to yield under
prudent management and subject to applicable provisions under which the property is
enforceably restricted.
(3) If the parties to an instrument that enforceably restricts the property stipulate therein
an amount that constitutes the minimum annual income to be capitalized, then the income
to be capitalized shall not be less than the amount so stipulated. For purposes of this
section, income shall be determined in accordance with rules and regulations issued by
the board and with this section and shall be the difference between revenue and
expenditures. Revenue shall be the amount of money or money's worth, including any
cash rent or its equivalent, that the property can be expected to yield to an owner- operator
annually on the average from any use of the property permitted under the terms by
which the property is enforceably restricted. Expenditures shall be any outlay or average
annual allocation of money or money's worth that can be fairly charged
29
against the revenue expected to be received during the period used in computing the
revenue. Those expenditures to be charged against revenue shall be only those which
are ordinary and necessary in the production and maintenance of the revenue for that
period. Expenditures shall not include depletion charges, debt retirement, interest on
funds invested in the property, property taxes, corporation income taxes, or corporation
franchise taxes based on income.
(b) The capitalization rate to be used in valuing owner -occupied single family dwellings
pursuant to this article shall not be derived from sales data and shall be the sum of the
following components:
(1) An interest component to be determined by the board and announced no later than
September 1 of the year preceding the assessment year and that was the yield rate equal
to the effective rate on conventional mortgages as determined by the Federal Housing
Finance Board, rounded to the nearest 1/4 percent.
(2) A historical property risk component of 4 percent.
(3) A component for property taxes that shall be a percentage equal to the estimated total
tax rate applicable to the property for the assessment year times the assessment ratio.
(4) A component for amortization of the improvements that shall be a percentage
equivalent to the reciprocal of the remaining life.
(c) The capitalization rate to be used in valuing all other restricted historical property
pursuant to this article shall not be derived from sales data and shall be the sum of the
following components:
(1) An interest component to be determined by the board and announced no later than
September 1 of the year preceding the assessment year and that was the yield rate equal
to the effective rate on conventional mortgages as determined by the Federal Housing
Finance Board, rounded to the nearest 1/4 percent.
(2) A historical property risk component of 2 percent.
(3) A component for property taxes that shall be a percentage equal to the estimated total
tax rate applicable to the property for the assessment year times the assessment ratio.
(4) A component for amortization of the improvements that shall be a percentage
equivalent to the reciprocal of the remaining life.
(d) Unless a party to an instrument that creates an enforceable restriction expressly
prohibits the valuation, the valuation resulting from the capitalization of income method
described in this section shall not exceed the lesser of either the valuation that would have
resulted by calculation under Section 110, or the valuation that would have resulted
by calculation under Section 110.1, as though the property was not subject to an
enforceable restriction in the base year.
(e) The value of the restricted historical property shall be the quotient of the income
determined as provided in subdivision (a) divided by the capitalization rate determined
as provided in subdivision (b) or (c).
(f) The ratio prescribed in Section 401 shall be applied to the value of the property
determined in subdivision (d) to obtain its assessed value.
439.3. Historical Property; notice of nonrenewal.
Notwithstanding any provision of Section 439.2 to the contrary, if either the county or
city or the owner of restricted historical property subject to contract has served notice of
30
nonrenewal as provided in Section 50282 of the Government Code, the county
assessor shall value that restricted historical property as provided in this section.
(a) Following the hearing conducted pursuant to Section 50285 of the Government
Code, subdivision (b) shall apply until the termination of the period for which the restricted
historical property is enforceably restricted.
(b) The board or assessor in each year until the termination of the period for which the
property is enforceably restricted shall do all of the following:
(1) Determine the full cash value of the property pursuant to Section 110.1. If the property
is not subject to Section 110.1 when the restriction expires, the value shall be determined
pursuant to Section 110 as if the property were free of contractual restriction. If the
property will be subject to a use for which this chapter provides a special restricted
assessment, the value of the property shall be determined as if it were subject to the new
restriction.
(2) Determine the value of the property by the capitalization of income method as provided
in Section 439.2 and without regard to the fact that a notice of nonrenewal or cancellation
has occurred.
(3) Subtract the value determined in paragraph (2) of this subdivision by capitalization of
income from the full cash value determined in paragraph (1).
(4) Using the rate announced by the board pursuant to paragraph (1) of subdivision (b)
of Section 439.2, discount the amount obtained in paragraph (3) for the number of years
remaining until the termination of the period for which the property is enforceably
restricted.
(5) Determine the value of the property by adding the value determined by the
capitalization of income method as provided in paragraph (2) and the value obtained in
paragraph (4).
(6) Apply the ratios prescribed in Section 401 to the value of the property determined in
paragraph (5) to obtain its assessed value.
439.4. Historical Property; recordation.
No property shall be valued pursuant to this article unless an enforceable restriction
meeting the requirements of Section 439 is signed, accepted and recorded on or before
the lien date for the fiscal year in which the valuation would apply.
31