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HomeMy WebLinkAboutCPRC 13-01 - Sandpiper Condos Circles 11-12 CITY OF PALM DESERT BUILDING & SAFETY DEPARTMENT STAFF REPORT REQUEST: APPROVE MILLS ACT CONTRACTS FOR NOTED PROPERTIES IN SANDPIPER CONDOMINIUMS CIRCLES 11 & 12 SUBMITTED BY: Russell A. Grance, Director of Building and Safety DATE: March 23, 2017 CONTENTS: 1. Mills Act Contracts _, 2. Mills Act Program Manual Recommendation: By Minute Motion: 1. Approve the following Mills Act contracts for the Sandpiper Condominiums located in Circles 11 & 12, 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. PARCEL NUMBER ADDRESS UNIT Circles 11 and 12 640-200-006 72487 El Paseo #1101 640-200-004 72497 El Paseo #1106 640-200-007 72499 El Paseo #1107 640-200-008 72501 El Paseo #1108 640-200-015 72475 El Paseo #1111 640-210-001 72459 El Paseo #1201 Staff Report Mills Act Contract March 23, 2017 Page 2 of 4 PARCEL NUMBER ADDRESS UNIT Circles 11 and 12 (Continued) 640-210-002 72461 El Paseo #1202 640-210-005 72467 El Paseo #1205 640-210-007 72439 El Paseo #1207 640-210-008 72441 El Paseo #1208 640-210-009 72443 El Paseo #1209 640-210-010 72445 El Paseo #1210 640-210-011 72447 Willow #1211 640-210-015 72455 El Paseo #1215 640-210-016 72457 El Paseo #1216 Strategic Plan Objective: N/A Background: 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. Staff Report Mills Act Contract March 23, 2017 Page 3 of 4 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. Discussion: The Palm Desert City Council named Sandpiper Condominium Circles 11 & 12 as the City's second historic district. Sandpiper Condominiums Circles 11 and 12, completed in 1965 by the Los Angeles- based architectural firm of Palmer & Krisel, exhibit numerous stylistic markers that place them directly in the historic context of Palm Desert's Modern Period. Further, Circles 11 and 12 are an excellent example of multi- family residential development in Palm Desert in the mid-1960s. The 32 units and 16 buildings that comprise Circles 11 and 12 reflect a coherent vision of modernist architecture rarely found anywhere else in the United States. The siting of the buildings in Circles 11 and 12, and the landscape architecture further reinforce a coherent modernist architectural vision that successfully created a leisure lifestyle of "carefree desert living." 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 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 a 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. Staff Report Mills Act Contract March 23, 2017 Page 4 of 4 Applications for a Mills Act contract are hereby presented to the City Council for review and approval. Staff has developed a Mills Acts Program Manual which includes an overview of the Mills Act program, submittal requirements and work sheets needed for review and processing of Mills Act contract requests (Attachment 2). Fiscal Analysis: There is no fiscal impact to the City. Submitted B : 0A Russell A. Grance, Director of Building & Safety Approval: Janet oore, Director of Finance Lauri Aylaian, City Manager •• •• • •• ' •. i / , i• •• 4! �� • • • • • � •.0 • • • •' :` i • 11 �'� • • Q • •,•• 4 __7c ••••. •••••F3 1 9 'r' Y'%**.. ••••••.•••••••• 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 1 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 7 Application 8 10-Year Property Improvement Plan 9 Financial Analysis Worksheet 10 Financial Analysis Worksheet Instructions 11 APPENDICES A. Sample Projects Qualified Under the Mills Act 13 B. Secretary of the Interior's Standards for Rehabilitation 14 C. Sample Mills Act Contract 15 D. Sample Site Plan 25 E. Site Inspection Form 26 F. State Mills Act Legislation 27 2 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: 3/4 Designated City Landmark %a Contributing feature of a designated City historic district 3/4 Listed individually in the National Register of Historic Places 3/4 Contributing feature of historic district listed in the National Register of Historic Places 3/4 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 30th 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. Mills Act Financial Analysis Worksheet 6. 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 façade). Images shall be printed onto archival paper in 3 x 5, 4 x 6 or multiple image letter sized sheet format. 7. 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. 8. Non-refundable application fee of $318.00 5 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 6 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. Application Form Copy of the grant deed, including complete legal description 10-Year Property Improvement Plan Financial Analysis Form Photographs Site Plan 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 7 ��� t�� City of Palm Desert �ieel p ; Department of Building and Safety 4 ' MILLS ACT HISTORIC PROPERTY CONTRACT APPLICATION 73-510 Fred Waring Drive • Palm Desert • California • 92260 - (760) 776-6420 - Fax (760) 776-6392 •Property Owner Information: Name: Address: City: State: Zip: Phone: (HM) (WK) Email: Property Information: Address of Property: Assessor's Parcel No(s): Legal Description (attach additional sheets if necessary): Date of Purchase by Current owner: Use of Property: Eligibility for the Mills Act Program: 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 Date Signature of Property Owner Date For Office Use: Mills Act Application 8 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). 9 Mills Act Financial Analysis Worksheet (See Excel Spreadsheet) 10 1c, o a "111111 "o c) o 11 111111 1 1111 ill „III 1111111rn IIw 111111iiiiiii II "rn g, co iiiiiiii ill iiiiiii ill' iiiiiii r-III i II r— N-11 ill a, ill coliiiiii -CCD C rIII. r ii L UII '11111 11 111111 u� 111 N .N v 111111111 v v>_ r rCaM illi' millil C co C i I 1 Ni cz-III N 111111 iii ." LL „II N C.) Q '11111r N ill . CD 2 11111 v L i 0 00C.) W c H m Q Z CC 0 o E Z 0 D_ D cars U m ~ 0 E a) a) a) U) a Lt W a o c 0 W W E o o c H n� N F - �, s' z U n m U c a m �, E —_ o p� g W C • @ E Cl X c Q > V' N 7C � C N Cc) w (� — C 2' a O m O -a N N @ LL! °) m E W @ o 0 m N ¢ w ~ Q w v m D Q a) p N L- o n o H N us x m.- X E 0 c 7 N 7, [4 co L O 0 a5 _ c = W Q 0 ~ 0 H W 8 2 Q E 2 2 0 m Z tit o ,- c co Z 10 Z up co r N Q co V i1] c0 I— co Z O7 0 r r How to Complete the Mills Act Financial Analysis income: 1. Monthly Rental Income: When a property is owner-occupied, the determination of "income" is based on what a property could reasonably be expected to yield, or an amount stipulated in the contract as the minimum income to be used. The income projected for owner-occupied property is based on comparable rents for similar property in the area, or, if insufficient rental information is available, the income that it could reasonably be expected to produce under prudent management. In the case of income producing property, the income amount is based on rent actually received and on typical rentals received for similar property in similar use. Two suggested methods for documenting comparable rents are through newspaper advertisements or a real estate or management company comparables. 2. Annual Rental Income: Annual Rental Income is calculated by multiplying the monthly rental income by twelve (12) months. Subtract a reasonable amount or percentage for vacancy and collection. 3-5% is a reasonable percentage. nnual Ex•ens- 3-8. Add typical expenses such as insurance, utilities, maintenance and repairs, and management fees to arrive at annual expenses. Exclude expenses include debt service, depletion charges, and interest on funds invested in the property. Net O•eratin■ Income: 9. Subtract annual expenses (Line 8)from Income (Line 2) Ca•italization Rate: The capitalization rate for both owner-occupied and income-producing property includes an interest component. a historical property risk component. an amortization component, and a property tax component. 10. An interest component is determined by the State Board of Equalization and announced no later than September 1 or the year preceding the assessment year. The Yield rate is equal to the effective rate on conventional mortgages as determined by the Federal Home Loan Bank Board, rounded to the nearest %4 percent. 11. The historic property risk component is 4°l0 in the case of owner-occupied single-family- dwellings. In all other cases, the property risk component is 2%. 12. The property tax component is defined as the "percentage of the estimated total tax rate applicable to property for the assessment year times the assessment ratio." This component will be 1% (0.1 post-Prop 13 tax rate X 100% assessment ratio). Special district assessments are not included in this component. The Riverside Tax Assessor's Office has the latest tax rate are information at (951) 955-6250. 13. The amortization component is a percentage equal to the reciprocal of the remaining life of the improvements. Although this calculation varies by individual structure, as an estimate, the typical remaining life of a frame building would be 20 years; for masonry buildings, the remaining life might be up to 50 years. 14. The capitalization rate is the sum of Line 10-12. New Assessed Value: 15. Calculate the Mills Act Assessment by dividing the net operating income by the capitalization rate. New Tax Assessmen : 16. Write in the current total taxes due. (The subsequent years are increased by 2%) 17. Calculate the tax under the Mills Act by multiplying the Mills Act Assessment (Line14) by .01142593 and then in the direct assessments as shown on your tax bill. (The Mills Act does not allow a reduction in direct assessment taxes) 18. Calculate the tax savings by subtracting the current tax under the Mills Act. (Line 18) 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 A Sample Projects Qualified Under the Mills Act Program Access Modifications— Exterior Interior Trim— Refinish Access Modifications—Interior Kitchen— New Counters Accessory Structure— Repair or Replace Masonry— New Annual Maintenance and Repairs Masonry— Repair or Replace Tile Hearth Appliance Vent Masonry— Repairs Architectural— Remove Non-historic feature and Masonry— Re-point Brick Restore to Original Mechanical—Air Conditioning Architectural Trim—Repair Mechanical— Heating Unit Architectural Trim — Replace Mechanical—Ventilation and Duct Work Architectural Trim— Install New Painting—Exterior Balcony/Decks—New Railings Painting — Interior Balcony/Decks—Repair or Replace Painting — Lead Based Paint Removal Basement—Access—Repair or Replace to Code Painting — Exterior Trim Basement—New or Rebuild Patio— Repair Cabinets— New Built-in Bathroom Plastering —Remove, Replace, or Refinish Cabinets— New Built-in Kitchen Plumbing—DWV(Drain, Waste, Vent) Cabinets—New Built-in Other Plumbing—Fixtures Caulking Plumbing— Install New Supply Lines Plumbing — Chimney— Inspect and Clean Install Sump Pump&discharge drain Chimney— New Plumbing —Minor Repairs Chimney— Rebuild or Repair Plumbing —New Supply Code Repair Item Plumbing—Service Lines Column— Replace or Rebuild Plumbing—Sewer Corbels/Structural Brackets—Replace or Repair Porch—Ceiling Replacement Door—Hardware Porch— Repair or Replace Door— New Basement Hatch Cover and Base Porch Railing—Repair or Replace to Code Door— Repair or Replace Porch— Resurface Drain for Deck— Install or Repair Remove Substandard Construction Drainage Protection or Correction Repair Eaves and/or Overhangs Dry-Rot Remove, Repair, and/or Replace Repair Exterior Stucco Electrical— Rewire or Install New Outlets Replace Non-historic Feature Electrical—Complete Rewire and Service Upgrade Roof—Minor Repair Electrical—Ground and Service Entry Roof— Re-roof Electrical— Install New Circuits Roof—Tear off and Install New Electrical— Lighting Fixtures Security Lighting and Alarm System Electrical— New Service Lines to Garage Seismic Retrofitting Electrical—Security Lighting and Alarm Siding— Remove Asbestos Siding and Restore Electrical— New Outlets Siding— Repair or Replace Flashing Skylights— Repair or Replace Floor Furnace— Remove or Restore Stair—Repair or Replace Flooring—Carpet Stone Work Flooring— Repair Stoop— Repair or Replace Flooring - Repair Wood Floors Structural — New Framing or Repairs Flooring— Replacement Structural Bracing Foundation—Bolting and Seismic Work Structural Modifications Foundation— New Structural Repairs— Roof and or Ceiling Joists Foundation— Repair Termite Treatment Gable or Attic— Re-screening Termite Damage— Repair Garage Door Tile—Replace, Repair, Re-point Garage—Repair or Replace Utility Enclosure— New Gutters and Downspouts Ventilation —Attic Fan HVAC — Complete New System Waterproofing HVAC — Maintenance or Repair Weatherproofing Insulation—Walls Window—Screens or Hardware Insulation—Attic 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. APPENDIX C Recording Requested by: ) When Recorded Mail to: ) CITY OF PALM DESERT ) 73-510 Fred Waring Drive ) Palm Desert, CA 92260 ) Attention: Cultural Resources ) Administrator ) (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 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 "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 18 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 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 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. 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. 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 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 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. 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. 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. 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. 22 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written. Dated: CITY OF PALM DESERT By ATTESTED TO: By Dated: Owner Owner APPROVED AS TO FORM City Attorney 23 State of California } SS County of } On , 20 , 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. 24 APPENDIX D SAMPLE SITE PLAN no PROPERTY �� r LINE 1111 gig PROPOSED ROOM ADDITION ill r?i7 PbTlry �w 90 COVER EXISTING HOUSE I yr EXISTING GARAGE —EXI aTIHOi'PROPOEEO or- PEKE • M.i 1frt Ncmravvra - I rarirre MI Amor pawl,eA.fa 21IC 5' 441111 i7o i 723.411Ft I PARKWAY MAIN STREET Provide and observe the Following: 1_ Provide two(2)sets of plans(minimum)are regr,ired for all bidding permits_ PIarrc aro to ho drawer noatly and mutt Eae logiblo(no graph pap. r)_ 3. Minimum 8112"x 11"sheet size_(Fill sheet with site plan.Do not use edge of paper for property lines. 4. Provide project address,owners name. and phone number. 5. Show al streets.driveways,and alleys frf any). 6. Clearly show all proposed and existing construction with corrplete dimensions. T. Indicate all easment locations(refer to your Title Report for this informatior. 8. Show North arrow. Mote- All dimensions shown on this sample plan are for reference only. Your site plan must show the actual dimensions for the lot located 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? Yes 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. 28 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 Recording Requested by: ) When Recorded Mail to: ) CITY OF PALM DESERT ) 73-510 Fred Waring Drive ) Palm Desert, CA 92260 ) Attention: Cultural Resources ) Administrator ) (Space above for Recorder's Office) HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT") between THE CITY OF PALM DESERT a municipal corporation and Donald J. Miller and S. Gail Miller Owner(s) of the property located at 72-487 El Paseo Drive, #1101, Palm Desert Ca 92260 APN: 640-200-006-2 1 HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT or Agreement") This agreement is made this , by and between the City of Palm Desert, a municipal corporation ("City") and Donald J. Miller and S. Gail Miller ("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 72-487 El Paseo Drive, #1101 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: 2 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 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: 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. 6. Periodic Examinations. Upon reasonable advance notice, Owner shall allow reasonable periodic examinations of the interior and exterior of the Historic 4 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 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 5 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 . 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 6 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: Donald J. Miller and S. Gail Miller 72-487 El Paseo Drive, #1101, 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. 7 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 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. 8 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 . 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. 9 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written. Dated: CITY OF PALM DESERT By ATTESTED TO: By Dated: Owner Owner APPROVED AS TO FORM City Attorney 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 California } } SS. County of Riverside } On , 2017 , 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 "A" Legal Description Order No.210-1491877-10 Exhibit "A" Parcel 1: All of Lot 1 in Tract No.2774,in the City of Palm Desert,County of Riverside,State of California, as per Map recorded in Book 50 Pages 24 and 25 of Maps,records of Riverside County,California. Parcel 2: An undivided 1/16th interest in and to Lot 33 of said Tract No.2774 for recreational purposes and the facilities therefor. Parcel 3: An undivided non-exclusive right for ingress and egress over an access easement over Lots 33 and 34 of said Tract No.2774 as shown on the recorded map of said tract,said right being appurtenant to the land described as Parcel 1. 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. Exhibit "C" Photos 1 I 1 .: .h ' • 3. .. 1 i , 1Y • 0, k • \;. , 1 ti R _at ..x. ...:4_,.,..,...4,_,_,... ....f.,...,... . .... . ,.. _ . •._ . . . , ... _ , ,_. ... . •. ... .,. ....„,,,„,...,..„,•:,.,,:_,-.:_ -. . , - - - ,......-.,..,,,,...,...::7.0.1,-;.,..7,_'=-,..-j.....-Fir r��r��.• _• .ail. l sr .. _ T. _:.ifti:4. Ciltir A.y `i.• Tit f sic ;�41. gym* / •�% ipihniewati#1. ,,. li! 41' • ii. I • .. _..- ._...w - F ..-- 1101SANDPIPER Exhibit "D" 10 Year Property Improvement Plan Recording Requested by: ) When Recorded Mail to: ) CITY OF PALM DESERT ) 73-510 Fred Waring Drive ) Palm Desert, CA 92260 ) Attention: Cultural Resources ) Administrator ) (Space above for Recorder's Office) HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT") between THE CITY OF PALM DESERT a municipal corporation and Robert K. Randolph Living and Carol A. Randolph Trustees of the Randolph Living Trust dated 2/28/13 Owner(s) of the property located at 72-497 El Paseo #1106, Palm Desert Ca 92260 APN: 640-200-004-0 1 HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT or Agreement") This agreement is made this , by and between the City of Palm Desert, a municipal corporation ("City") and Robert K. Randolph and Carol A. Randolph Trustees of the Living Trust of the Randolph Living Trust dated 2/28/13 ("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 72-497 El Paseo Drive. #1106 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. 2 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 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. 3 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. 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 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 5 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 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. 6 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. 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: Robert K. Randolph and Carol A Randolph Living Trustees of the Randolph Living Trust dated 2/28/13 72-497 El Paseo #1106, 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 7 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 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 8 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. 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. 9 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written. Dated: CITY OF PALM DESERT By ATTESTED TO: By Dated: Owner Owner APPROVED AS TO FORM City Attorney 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 California } SS. County of Riverside } On , 2017 , 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 "A" Legal Description DOC#2016-0165531 Page 6 of 6 Order Number: 062S-5139101 Page Number. 6 LEGAL DESCRIPTION • Real property in the aty of Palm Desert,County of Riverside,State of California,described as follows: . PARCEL 1: LOT 6 OF TRACT NO. 2774 AS PER MAP ON FILE IN BOOK 50 PAGES 24 AND 25 OF MAPS, RIVERSIDE COUNTY RECORDS. PARCEL 2: AN UNDIVIDED 1/16TH INTEREST IN AND TO LOT 33 OF TRACT NO. 2774 FOR RECREATION PURPOSES AND THE FACILITIES THEREFOR,AS SHOWN BY MAP ON FILE IN BOOK 50 PAGES 24 AND 25 OF MAPS,RIVERSIDE COUNTY RECORDS. PARCEL 3: AN UNDIVIDED NON-EXCLUSIVE RIGHT FOR INGRESS AND EGRESS OVER AN ACCESS EASEMENT OVER LOTS 33 AND 34 OF TRACT NO. 2774,AS SHOWN BY MAP ON FILE IN BOOK 50 PAGES 24 AND 25 OF MAPS, RIVERSIDE COUNTY RECORDS,SAID RIGHT BEING APPURTENANT TO THE LAND DESCRIBED AS PARCEL 1. APN: 640-200-004-0 • • • • • • first American 77de Page 6 of 15 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; s. 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. Exhibit "C" Photos • • s mid aft + • P ' .. .....,....-.,:. 4,.. ....._,_.......:-! ;17,21;!,.:-..,::: ‘t. -tip• Y F . .,,,;.,.. _ t. rt. • . ..,7:77...:-.....:.-1. -. ra y I. �'.' •�..-r.!-Vi ? :;� Pam' K • • • ._' - •r - til • • .. ..'2w•. a ._." ". " - ' ' f� 1-V 1176 SANDPf� --. 4t-,4_,. , r, ,, ,__...,..1,4:!:44.W.—,-.7r. .-•':- • :f• .-...,..6.1.01 .-Su,..--, ...*--•4.•-•:,.,'-.4'.Nr. ::•4' ' 4 err 1 '...�r `r' 0 1-'.... '....'......"...A".._t., R j is �(..` i -! :ice :; ' -.. ;` _ 7 ws ' :3s • � 4`- .: r ''.y Exhibit "D" 10 Year Property Improvement Plan 10 YEAR PROPERTY IMPROVEMENT PLAN YEAR PROPOSED PROJECT EASTIMATED COST 1 FOAM ROOF $1600 2 REMOVE CEILING RE MUD $3500 3 HVAC $1610 4 PAINTING $3500 5 FLOORING REPLACED $17,000 6 REMOVE HOT TUB $1600 7 WINDOWS $5000 8 HVAC $1710 9 RE DO KITCHEN $15000 10 RE DO BEDROOMS $10000 I Recording Requested by: ) When Recorded Mail to: ) CITY OF PALM DESERT ) 73-510 Fred Waring Drive ) Palm Desert, CA 92260 ) Attention: Cultural Resources ) Administrator ) • (Space above for Recorder's Office) HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT") between THE CITY OF PALM DESERT a municipal corporation and Donald G. Metcalfe Trustee of the Sandpiper Trust dated 5/1/14 Owner(s) of the property located at 72-499 El Paseo #1107, Palm Desert Ca 92260 APN: 640-200-007-3 1 HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT or Agreement") This agreement is made this , by and between the City of Palm Desert, a municipal corporation ("City") and Donald G. Metcalfe Trustee of the Sandpiper Trust dated 5/1/14 ("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 72-499 El Paseo #1107 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. 2 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 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. 3 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. 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 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 5 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 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. 6 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. 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: Donald G. Metcalfe Trustee of the Sandpiper Trust dated 5/1/14 72-499 El Paseo #1107, 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 7 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 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 8 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. 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. 9 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written. Dated: CITY OF PALM DESERT By ATTESTED TO: By Dated: Owner Owner APPROVED AS TO FORM City Attorney 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 California } } SS. County of Riverside } On , 2017 , 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 "A" Legal Description EXHIBIT "A" THE LAND REFERRED TO HEREIN IS SITUATED IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCEL 1: LOT 7 OF TRACT NO. 2774, IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA,AS PER MAP RECORDED IN BOOK 50, PAGES 24 AND 25 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL 2: AN UNDIVIDED ONE-SIXTEENTH INTEREST IN AND TO LOT 33 OF TRACT NO. 2774, IN THE CrTY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 50, PAGES 24 AND 25 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, FOR RECREATION PURPOSES AND THE FACILITIES THEREFOR. PARCEL 3: AN UNDIVIDED NON-EXCLUSIVE RIGHT FOR INGRESS AND EGRESS OVER AN ACCESS EASEMENT OVER LOTS 33 AND 34 OF TRACT NO. 2774, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 50, PAGES 24 AND 25 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY,AS SHOWN ON THE RECORDED MAP OF SAID TRACT, SAID RIGHT BEING APPURTENANT TO THE LAND DESCRIBED IN PARCEL 1. ASSESSOR'S PARCEL NUMBER: 640-200-007-3 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. Exhibit "C" Photos - 1. • - ••• . • •. • , • • -v . . ... •.,.. ... •) • •__._ ... —• . .. - ..• ..• .. ,1.:•r:. -,....r,-;.,_ - -..--••• - • • -...- , • ..,.e •• .•4 •• •--f. .,-11,..•_, 1 : ••,. • . , .•.-•/- . . • -it •.:;-,'..••,.::'..c4..\-.. ,i,.. ,•r . :T;•••••• •• • •-•-....-...“.4-....-.•,•••••,-..ia.•_•••.• .41,-.4.1v i ' __ . •,-, •_...i...••„4„;•...,-.,..-.... •.-''' _ . •-•- --Z.:, .".1 ,.r.thri "••••••-7•-•/`' `;--.1',......_ • ,.„...•4...--..,.._ 7",............4‘..._ •-.... ..4- , --- -•-•••-•.'- ',. • •....... Ofiro • _ .. . .. ......• . . . • p•,..r- ''... . •.i. * ,-..'- .--.."..,r.7 .:--. -•••••••"4-•-....-.! • , .,. .., - ,--: . - .... '-;..J....f.i.i.14•••••--_-_ .4.1.7•••k,-.1.-rj-c.--..., . — :••7' •••••••••:..L.1;.••••_. ,.....;•....,. r,--.1.-Ki.t.z...01-LizipER , ,_:: •••...•••.•_ • -•'-'•••••••••1-'.• .--'....' ',. l'j, ••• ' 14'' i*..1.7...:t -r...:1 ••.-,7.i, •..- • 4.1:-.'' ' • 17 Dr--; : . - ia • • -C'''- - ' 2-1) 7'2 • Pc•I _$'-1' '• •--! •••r ''1.4 •• ,i'•.• ••'• -I ,I.F•• -!I• ri. •'.- 5'40 li. • • 1;••,:i?,' 72! • 'I.,.r.; . • , 4 '1 • ..:• ;4.; •._, ..X). ..• ..1. • e Et ':• mk T• ••,-;'•...* i-•- .„ .-.--S•i•TiiL_ , 1,_-4 • :1•7-.'1"-,, :..i. - ' ' . c,.• • , • • -.-.. • . ...:,7 - - 2._. ,-4. - I• t.‘Sr i .IX' . ' t : ' •-' •!- '''' • ' '• 'r 1 li . • .,i .1. -,1114101•!...z.i--, . ..• . . ;•-,....: f .&!t.' . . . _•.:•...._ ...;., ._ -,,-, -. • •••;,• ••• _• • • _ •, . , ._ -- .- 1 I i ,,,•,4.".i.. ._.....-'S', •. , ,. , . . . ... '04:,-.. .••.._-, -•• •,_ .- - . . .—••••-,-- • -•-•-• .. ..,,__ , • • . . O.' '•• .. . .... ..., -- . . _ ,ir• .-• .,.•-, ••,,•- • .,• ...m..t..- • .••••-• .. ._..,:....r-,-. ..-r. ..•i -, • . - - ......-...- .--•-••tet:. IS'...17 tiL•440 r• E*. • ' -..,,7..• ii ..-, _ _ 1i i •.• .`.....•• . • - - 1r. , . oir r.le • ''.- "r• . .- .._-- • Kt •1 --4.7'•-• •-,., )4.641...- .:i i i• ii jar.t.' . I __ to.,,e.:,.,!•-• _-. -.....t-i,•-•--,-. J.•••-•47. -''-''• 1 . ._2•LI,,,•-•.. ".• .... • .. . . , , . _ 1..14 •• I, . '1 • 4..gi•C; ,•,-r-I-•P'..liCT.• 1 • : e ' .• .. 1-.... •, .• ) 1.- • ' .4 -la••• '''ty;'r •-0. %.•••.„;•.7.".:• 1.4": t -.: . •41 •' ". . i • L . • 1 =-..'#,:-...--- ,•,,-ti ' ... - :h• • "-. ., •..• 7.f• lc . ! / .4. ••. 4 2. • 1:x , .. I 1:Y • .Irk, .1 ,r1 • 1. -1. 4 ...__. .._ ._......._,,.,.... .. . e 4 I L.N•A Ritz ,. .._._.--- --_,... • IL,...` •••. .. •- • ..- _:.' .-; --- ''4,•.'I .1- . • -21. ,'_•-_,. ••• - ...,_ , _•.. . ..1 • '•-• ... , III•- ' •r -• - •-. - _;_.. - . - ••_ ., . .7. •-.. • -:.. ......_„ ji . , . • •••••••• - Exhibit "D" 10 Year Property Improvement Plan 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 re a t-1+ pa 2 . r .2,r cru4,41/4.72,rd tAt 4.t.6G-td COO' 3 f r�.o(Ace. q to c s °.o o•rs c a 4 y6-✓4( 6 col' � CJ 4 AktuildiAa t,e far-Y i f`VA-c- 22 av`O 5 6 ;ti•ci er r pA' i - Lim o wts l T S21 d 7 to.erck-4-Ne s u-r Cow {-70,re( 8 Pr 9 L .c p ) ik'f -�.,,w UM 6�P.! R cw-ec f ()rune 'a 'bard Z y `° 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 Recording Requested by: ) When Recorded Mail to: ) CITY OF PALM DESERT ) 73-510 Fred Waring Drive ) Palm Desert, CA 92260 ) Attention: Cultural Resources ) Administrator ) (Space above for Recorder's Office) HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT") between THE CITY OF PALM DESERT a municipal corporation and James Slauson Phelps and Michael-Ann North Herring Community Property Trust dated 2/18/94 Owner(s) of the property located at 72-501 El Paseo #1108, Palm Desert Ca 92260 APN: 640-200-008-4 1 HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT or Agreement") This agreement is made this , by and between the City of Palm Desert, a municipal corporation ("City") and James Slauson Phelps and Michael-Ann North Herring Community Property Trust dated 2/18/94 ("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 72-501 El Paseo #1108 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. 2 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 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. 3 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. 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 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 5 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 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. 6 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. 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: James Slauson Phelps and Michael-Ann North Herring Community Property Trust dated 2/18/94 72-501 El Paseo #1108, 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 7 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 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 8 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. 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. 9 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written. Dated: CITY OF PALM DESERT By ATTESTED TO: By Dated: Owner Owner APPROVED AS TO FORM City Attorney 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 California } } SS. County of Riverside } On , 2017 , 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 "A" Legal Description Exhibit "A" PARCEL 1: LOT 8 TRACT 2774 AS SHOWN BY MAP ON FILE IN BOOK 50 PAGES 24 AND 25 OF MAPS, RECORDS OF RIVERSIDE COUNTY,CALIFORNIA. PARCEL 2: AN UNDIVIDED 1/16TH INTEREST IN AND TO LOT 33 OF TRACT 2774 FOR RECREATION PURPOSES AND FACILITIES THEREOF AS SHOWN BY MAP ON FILE IN BOOK 50 PAGES 24 AND 25 OF MAPS, RECORDS OF RIVERSIDE COUNTY,CALIFORNIA. PARCEL 3: AN UNDIVIDED NON-EXCUSIVE RIGHT FOR INGRESS AND EGRESS OVER AN ACCESS EASEMENT OVER LOTS 33 AND 34 OF TRACT 2774 AS SHOWN BY MAP ON FILE IN BOOK 50 PAGES 24 AND 25 OF MAPS, RECORDS OF RIVERSIDE COUNTY, SAID RIGHT BEING APPURTENANT TO THE LAND DESCRIBED AS PARCEL I. 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; s. 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. Exhibit "C" Photos ?,rV...-, ..- - -,--••••..., g Irli ,- )!1 11 . .. ... .o..;.. WI. 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't• • -...--Isa-,-, • .it • . •-. - •• . .. • b.. . • ..14PIA'r: • • M. , ',A-1W.. ..• e , - • .—1 . . . . . 1108 2,6,tter-V E P. . _.. ._.,..,.....-.:A.7.•L••-.•-••,.4L.„.„•_..-' Exhibit "D" 10 Year Property Improvement Plan James S. Phelps & Michael-Ann Herring, Community Property Trust Location: 1108 Sandpiper, Palm Desert, CA 92260 APN: 640200008-4 10-Year Property Improvement Plan Year Proposed Project Estimated Cost 1 Alarm System, HVAC, Non-Owner Weekly Inspections, Garden $8,440 Maintenance, Ins., EQ Ins., Ext. Stucco repair & paint, Misc. Int. 2 Alarm System, HVAC, Non-Owner Weekly Inspections, Garden $8,579 Maintenance, Ins., EQ Ins., Misc. Int. Paint, new bedroom carpet. 3 Alarm System, HVAC, Non-Owner Weekly Inspections, Garden $7,221 Maintenance, Ins., EQ Ins., Misc. Int. Paint. 4 Alarm System, HVAC, Non-Owner Weekly Inspections, Garden $8,926 Maintenance, Ins., EQ Ins., Misc. Int. Paint, new bedroom carpet. 5 Alarm System, HVAC, Non-Owner Weekly Inspections, Garden $12,012 Maintenance, Ins., EQ Ins., Misc. Int. Paint, New HVAC. 6 Alarm System, HVAC, Non-Owner Weekly Inspections, Garden $9,286 Maintenance, Ins., EQ Ins., Misc. Int. Paint, new bedroom carpet. 7 Alarm System, HVAC, Non-Owner Weekly Inspections, Garden $7,816 Maintenance, Ins., EQ Ins., Misc. Int. Paint. 8 Alarm System, HVAC, Non-Owner Weekly Inspections, Garden $7,972 Maintenance, Ins., EQ Ins., Misc. Int. Paint. 9 Alarm System, HVAC, Non-Owner Weekly Inspections, Garden $8,131 Maintenance, Ins., EQ Ins., Misc. Int. Paint. 10 Alarm System, HVAC, Non-Owner Weekly Inspections, Garden $8,294 Maintenance, Ins., EQ Ins., Misc. Int. Paint. -J 0 0 CO 0 N in Ln Ln Ln t0 N •0 0 "I r-i .-i ,-i a " U cn a a) '0 vl Q 00 CO U oO a L cna L O O O .-I N Tr 0 01 M N M 'i Cr O M 0 01 N Ln 00 N Ln Ol Ln L a) I C li Ln Ln 0 0 0 N N H• Z .--I rl .-i .-i .--I rl .--I.- i- 14. U Lr) a z -EA- iA- -EA- -LA- i ifs ifs + ift i Y a) '1' N O Ct CO N N .-i tD N (0 U Ln 0 00 01 0 N M In tD 00 a tD O VD tD N N N N N (13 (S L w1--$ -EA- i i i - - -EA- { i U Cf N ,-I In 01 M 00 M CO I- L C 0 N 01 0 .-I M C (Lp 0 0 t0 N N. N N N0 N ON O O 'ND Q U c i ifs i if- -EA- if- -EA- if- i�} ifs N H 0) an Q W U O 0N 01 0 M ,-� 01 N 0 C C O .-I M Cf' tO CO 0 .-I M In •y_ U O (p co co co co CO co 01 01 01 01 a) C laN = t'"i) Gam) RI _• C C i N a (0 Qit n C- ++ z if- if- i i -Eft -EA- if- -EA- -EA- i{N- >- CO O L C Ln N 01 N N N CO ,--I (Op CD (0 O E 4) N N .-i t0 .-I tD .-I N N N U O a 0 0 C U M CO Cr Cr In Ln t0 t0 N� N t1 L N C o C N N N N N Ni- Ni. N N NI. tU O L as a 'd' - c to a C C Z ift ifs EA- {f} -LA- i i{) -EA- -EA- -Eft N (p a t a Q d 0 Ln 01 Cr 01 Ct 01 Ct 01 Ln O 00 - Ur) M M Cr 7 Ln Ln t0 tD N. (n U O Q N N N N N N N N N N O Cl) a = C L if- if} -Eft if- -69- -Eft if- -FA- if} -Li:)- 0 0 10 ^ 4 d CO co M CO [r rI N I- .-I 01 N 0 } E = N• CO 01 '-I rn C- 000 01 ,--i O p L. N N N CO CO CO CO CO CO 01 4.1(0 �tO J - Q (1) i {f} ifs if+ VI- -EA- LA. iA} to O O ,-i 0 N tD tD N N Cr U 1- Ln N 01 0 CO CO 01 ,-L N 76 13 O O CO N CO Ni. 01 N N CO CO O y-' ,-1 E tL in- -EA- i -LA- ift -EA- -EA- ifs i!- ifs N ,1 N M Ct n 0L N 00 01 0 Recording Requested by: ) When Recorded Mail to: ) CITY OF PALM DESERT ) 73-510 Fred Waring Drive ) Palm Desert, CA 92260 ) Attention: Cultural Resources ) Administrator ) (Space above for Recorders Office) HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT") between THE CITY OF PALM DESERT a municipal corporation and Robert Lloyd Thornton and Kristin Astrid Stead Owner(s) of the property located at 72-475 El Paseo #1111, Palm Desert Ca 92260 APN: 640-200-015 1 HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT or Agreement") This agreement is made this , by and between the City of Palm Desert, a municipal corporation ("City") and Robert Lloyd Thornton and Kristin Astrid Stead ("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 72-475 El Paseo #1111 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. 2 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 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. 3 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. 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 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 5 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 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. 6 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. 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: Robert Lloyd Thornton and Kristin Astrid Stead 72-475 El Paseo#1111, 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 7 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 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 8 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. 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. 9 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written. Dated: CITY OF PALM DESERT By ATTESTED TO: By Dated: Owner Owner APPROVED AS TO FORM City Attorney 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 California } } SS. County of Riverside } On , 2017. 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 "A" Legal Description • Order No. 210-1318627-10 Exhibit"A" Parcel I: All of Lot 11 of Tract No.2774,in the City of Palm Desert,County of Riverside,State of California, as shown by Map on file in Book 50,Pages 24 and 25 of Maps,Records of said County. Parcel 2: An undivided one-sixteenth interest in and to Lot 33 of said Tract 2774, in the City of Palm Desert, County of Riverside, State of California,for recreation purposes and the facilities therefor. Parcel 3: An undivided non-exclusive right for ingress and egress over an access easement over Lots 33 and 34 of Tract 2774 in the City of Palm Desert,County of Riverside,State of California,as shown on the recorded map of said Tract,said right being appurtenant to the land described as parcel 1. 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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Exhibit "D" 10 Year Property Improvement Plan 1111 Sandpiper Projected expenses related to the use, maintenance, protection,and restoration in accordance with the Mills Act contract with the City of Palm Desert Year Pro'osed Project (see detail below Estimated Cost 1 Annual Maintenance & Protection; Paint interior $5,850 2 Annual Maintenance & Protection; Re-carpet bdroom 1 $5,250 3 Annual Maintenance &Protection; Re-carpet bdroom 2 $5,550 4 Annual Maintenance & Protection; Replace windows &sliders $16,050 5 Annual Maintenance & Protection; recoat foam roof $9,050 5 Annual Maintenance &Protection; Replace bathroom cabinets/counters $15,550 7 Annual Maintenance & Protection; Replace cabinets/counter tops guest $18,550 8 Annual Maintenance & Protection; Courtyard paint $6,550 9 Annual Maintenance & Protection; restore front entry doors $9,050 10 Annual Maintenance & Protection; Replace kitchen cabinets/counters $19,050 Annual Maintenance & Protection Expenses * Item Purpose Expense HOA Management (source: 2016 budget) management $375 HOA"Earthquake Insurance (source: 2016 budget) protection $781 HOA Common Area Rep &Maint.(source: 2016 budget) maintenance $156 HOA Lighting Repair&Maint(source: 2016 budget) maintenance $188 Alarm Service protection $300 HVAC Maintenance maintenance $150 Summer Caretaking protection $400 Clean gutters maintenance $200 Prune Palm trees and garden maintenance maintenance $1,500 $4,050 *As a member of an HOA, certain items of the annual HOA budget relate to the objectives of the Mills Act contract. expenses noted as "HOA" display an owner's pro rata share of such expenses. One-off Projects Year Item Purpose cost 1 Paint interior restoration $1,800 2 Re-carpet bdroom 1 restoration $1,200 3 Re-carpet bdroom 2 restoration $1,500 4 Replace windows &sliders restoration $12,000 5 recoat foam roof maintenance $5,000 6 Replace bathroom cabinets/counters Master Bath restoration $11,500 7 Replace cabinets/counter tops guest bathroom restoration $14,500 8 Courtyard paint maintenance $2,500 9 restore front entry doors restoration $5,000 10 Replace kitchen cabinets/counters restoration $15,000 Recording Requested by: ) When Recorded Mail to: ) CITY OF PALM DESERT ) 73-510 Fred Waring Drive ) Palm Desert, CA 92260 ) Attention: Cultural Resources ) Administrator ) (Space above for Recorder's Office) HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT") between THE CITY OF PALM DESERT a municipal corporation and Nelson Justason and Karole Sutherland Owner(s) of the property located at 72-459 El Paseo Drive, #1201, Palm Desert Ca 92260 AP N: 640-210-001 1 HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT or Agreement") This agreement is made this , by and between the City of Palm Desert, a municipal corporation ("City") and Nelson Justason and Karole Sutherland ("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 72-459 El Paseo Drive, #1201 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. 2 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 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. 3 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. 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 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 5 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 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. 6 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. 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: Nelson Justason and Karole Sutherland 72-459 El Paseo #1201, 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 7 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 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 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. 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. 9 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written. Dated: CITY OF PALM DESERT By ATTESTED TO: By Dated: Owner Owner APPROVED AS TO FORM City Attorney 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 California J } SS. County of Riverside } On , 2017 , 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 "A" Legal Description tra11 n :G1l,user :ttw13 Lommeni: JLaiion 1U :yu'+/ DOC#2013-0596312 Page 3 of 3 12/27/2013 08:00 AM File Number: 0625-4528462 Exhibit"A" Legal Description A.P.N.:640-210-001 Real property in the City of Palm Desert, County of Riverside, State of California, described as follows: PARCEL 1: ALL OF LOT 17 OF TRACT NO. 2774 AS PER MAP RECORDED IN BOOK 50, PAGES 24 AND 25 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL 2: AN UNDIVIDED ONE-SIXTEENTH (1/16)INTEREST IN AND TO LOT 34 OF SAID TRACT NO.2774, FOR RECREATION PURPOSES AND THE FACILITIES THEREFOR. EXCEPT FROM SAID LOT 34 THE PORTION THEREOF PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWESTERLY CORNER OF LOT 30 IN SAID TRACT 2774 THENCE SOUTH 89°08'55"WEST,ALONG THE EASTERLY LINE OF SAID LOT 30 A DISTANCE OF 71.50 FEET TO THE SOUTHWESTERLY CORNER OF SAID LOT;THENCE NORTH 71°51'05"WEST, ALONG THE NORTHWESTERLY EXTENSION OF THE SOUTHERLY LINE OF SAID LOT 30,A DISTANCE OF 4.50 FEET; THENCE NORTH 18°08'55" EAST, PARALLEL WITH THE WESTERLY LINE OF SAID LOT 30,A DISTANCE OF 71.50 FEET;THENCE SOUTH 71°51'05"EAST,4.50 FEET TO THE POINT OF BEGINNING. PARCEL 3: AN UNDIVIDED NON-EXCLUSIVE RIGHT FOR INGRESS AND EGRESS OVER AN ACCESS EASEMENT OVER LOTS 33 AND 34 OF SAID TRACT 2774 AS SHOWN ON THE RECORDED MAP OF SAID TRACT, SAID RIGHT BEING APPURTENANT TO THE LAND DESCRIBED AS PARCEL 1. 0625-4528462 1 of 1 RIVERSIDE,CA Page 3 of 3 Printed on 6/13/2016 10:12:31 AM Document: DD 2013.596312 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. Exhibit "C" Photos ...; AA, •11.' , • I Cir . ,•,. . .11 I II ti VI ti,(‘;1/1Y1 III 1 It .. ...I, • , 1 . t II Pfilli tfititil;77717; 111111 ,1Tti!tITIVIIII I Ilittsumlimit 1 t n : ''' •- . . u" 1 .. . • # -...i" PS' I./ -'• -•--'-',,--45,-•fli.,-.• . ,, i'o p_. , , }.• - Ali 1 , • • 4A• ;• . "4..-" ..- . _ - - .-. _ .. —.. =.. . .,. . r 4". • . , -. • - iii +... •. ...__ • r• • - . ....,,- ... " '. . f..'"' JDPIPER .d....: s...... 4., •• 1-n tr.F11- d 71-17.nite'-'-'' • • ....._ . . it4f. '''. ' .4'• !L'r1; ;',..„'Icit . . ' - %i'... ,.., ,-;,. -j ii . 41-4.,F,:,?,.,c_ ,,_ ,_ •-t. '--h-'z'. • . 1 . 11 • I„, • .••.' ..e i — '- • - ' - " 4—. '.''i. 1:;i1:;:.;:14:.:it.:'.'• ..4 •---- 'il • , . . i . iti S. t t 71.6.4.4.-11:7',7 --7: ..-- r4Pir '..-•' - _ _.,- ---...-- ., • -...:- ... .-01.11. ....'..-.- .' —.-- ------ - .• • .‘ ;=-..." . , ?...„,....s.--.- n4 ':.I AMPRIPER IF mirk.•1"aliotittei . ..' t-Nil .• .4 Et • •.. ... , . 4 .4. . P - . . „ .44: .,W.:', 1-. :: : -:. _ . _. 1;4cr .-"... , . .. . 4.....:'- ' .jl.'1.• ,..' i „tr., •'- '•-. . '!144114.....;' ... • . or X f"... /1 •• • , 2, .r , _ ,,s.r...k -;"-,' .: ... e. , sf.t 'ilk-. ..,,,,...i,, ,,,. •- . j 4 1 1 ,I.• t.•.••._ :r:c•. ...,,•iMh'a.....t.r,••_=,._z_f_—-.-. ' --- - '- . ;Yi7-2T---7.i -rr777.•.r 7:1 ['r.'. ...t •. -, . . ., . , ''' -- ' , „,„. v.. A 10. -• . '.• •''''•• /'. ' ',rernk ' 4- . •6-' ''it; E''' i A -.- .'.4.rr": il...-e-, ," , .. I . 1 - ,-.1-4 :.- 4,-. . .11.• :nIt . .4-, •-4' ,tit'et t4. -1Ft ' '. - '.1.41/ - • • - _.„. / .. A •.1i• . .. ... •..k illt l'7 i ... ' ;1 I 1 r•'; '°I° 444,‘,..... -.--- - _, '•:°c7..... 1 2 r !..5AllaWF In . ' Exhibit "D" 10 Year Property Improvement Plan 1201 Sandpip.11.111 Projected expenses related to the use, maintenance, protection, and restoration in accordance with the Mills Act contract with the City of Palm Desert Yearin. Proposed Project (see detail below) Estimated Cost 1 Annual Maintenance & Protection; Kitchen - New Countertops $4,800 2 Annual Maintenance & Protection; Electrical - Rewire & Lighting Fixtures $3,800 3 Annual Maintenance & Protection; Cabinets - New Built-in Kitchen (Pantry) $4,100 4 Annual Maintenance & Protection; Plumbing - Sewer $3,500 5 Annual Maintenance & Protection; Plumbing - Fixtures (HW Tank) $3,900 6 Annual Maintenance & Protection; Skylights - Replace (Atrium Pergolas) $4,700 7 Annual Maintenance &Protection; Roof - Minor Repair; Gutter & $5,100 8 Annual Maintenance & Protection; Window - Replacement (Bathroom) $4,300 9 Annual Maintenance & Protection; Window - Screens $3,800 10 Annual Maintenance & Protection; Window - Replacement Cleresto $5,300 Annual Maintenance & Protection Expenses * Item Purpose Expense HOA Management (source: 2016 budget) management $375 HOA Earthquake Insurance (source: 2016 budget) protection $781 HOA Common Area Rep & Maint (source:2016 budget) maintenance $156 HOA Lighting Repair & Maint (source: 2016 budget) maintenance $188 Alarm Service protection $300 HVAC Maintenance maintenance $150 Summer Caretaking protection $350 $2,300 * As a member of an HOA, certain items of the annual HOA budget relate to the objectives of the Mills Act contract. Expenses noted as "HOA" display an owner's pro rata share of such expenses. One-off Projects Year Item Purpose cost 1 Kitchen - New Countertops restoration $2,500 2 Electrical - Rewire & Lighting Fixtures (Kitchen) maintenance $1,500 3 Cabinets - New Built-in Kitchen (Pantry) restoration $1,800 4 Plumbing - Sewer maintenance $1,200 5 Plumbing - Fixtures (HW Tank) maintenance $1,600 6 Skylights - Replace (Atrium Pergolas) restoration $2,400 7 Roof - Minor Repair; Gutter & Downspouts maintenance $2,800 8 Window - Replacement (Bathroom) restoration $2,000 9 Window - Screens maintenance $1,500 10 Window - Replacement Clerestor restoration $3,000 Recording Requested by: ) When Recorded Mail to: ) CITY OF PALM DESERT ) 73-510 Fred Waring Drive ) Palm Desert, CA 92260 ) Attention: Cultural Resources ) Administrator ) ) (Space above for Recorders Office) HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT") between THE CITY OF PALM DESERT a municipal corporation and Bernard L. Cain,Jr. and Barbara P. Cain Family Trust Dated 8/22/00 Owner(s) of the property located at 72-461 El Paseo Drive. #1202, Palm Desert Ca 92260 APN: 640-210-002 1 HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT or Agreement") This agreement is made this , by and between the City of Palm Desert, a municipal corporation ("City") and Bernard L. Cain. Jr. and Barbara P. Cain Family Trust Dated 8/22/00 ("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 72-461 El Paseo Drive. #1202 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. 2 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 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. 3 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. 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 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 5 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 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. 6 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. 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: Bernard L. Cain, Jr. and Barbara P. Cain Family Trust Dated 8/22/00 72-461 El Paseo Drive, #1202, 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 7 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 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 8 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. 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. 9 IN WITNESS WHEREOF. City and Owner have executed this Agreement on the day and year first above written. Dated: CITY OF PALM DESERT By ATTESTED TO: By Dated: Owner Owner APPROVED AS TO FORM City Attorney 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 California } } SS. County of Riverside } On , 2017 , 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 "A" Legal Description Exhibit "A" PARCEL 1: LOT 18 OF TRACT 2774 AS SHOWN BY MAP ON FILE IN BOOK 50 PAGES 24 AND 25 OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. PARCEL 2: AN UNDIVIDED 1/16TH INTEREST IN AND TO LOT 34 OF TRACT 2774 AS SHOWN BY MAP ON FILE IN BOOK 50 PAGES 24 AND 25 OF MAPS,RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. PARCEL 3: A NON EXCLUSIVE RIGHT FOR INGRESS AND EGRESS OVER THE ACCESS EASEMENTS OVER LOT 33 AND 34 OF TRACT 2774 AS SHOWN BY MAP ON FIT.F IN BOOK 50 PAGES 24 AND 25 OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, SAID RIGHT BEING APPURTENENT TO THE LAND DESCRIBED AS PARCEL 1. • IBM 111111 N111 111 111111 111'111 11111111 11111 1111 1111 8?/e9/ee 08 RAH 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. Exhibit "C" Photos ;i-4-',.., .----; ' ..t-'. -1-.4 ;k. -.-r.,-.-•:., ., „., ,,. , 1•,,l, 2.'' 1 k 1 ' . ,/,...'..P,-',. ..., '• . ' - 4 . . 4 tit' -• • — - . i • -• -,.. •-._. -. . 1 - - --• . . 1 i. .___ „--•:.=,-.%,•..iii. ,. . -.- • ot V',. •• ....'t... 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' ---;:, - m -..-- .- ,' ,-.--:-...•-• .7, 7'•' '• --4. ..4.•-•.z ,0•,:--:.. --. ... 7 ;-•:.-2..•:.: 74-#44.-1,4r._.„-r._ if,...- . . . . . . ..• :,-'...-..•:.:•s; .0 '. i !. -, • • ' ..::.. • -..........-.....ri: ..'• ' - '• •'-'••- r••••-.•:.:.; • 101.00 4•;!'. i'-:-•':• • : . j-ILli. i. ,, . . i r, .1-'.!.. r y • •4 'till_ ' - ....-- . .... • 644 . . ._. . . -.- - • --- • - . .___. 1. ...„ --- _.- ,. - ''.-.• - - -...--'ef.' -''''-"- - '' , i A - " .••"..'-".--..;.'f:,-....;•ii:.,L...-- "7F-''' -.2.- r, --- 12 02 SANDPIPER - '• - r -- , .•• ."' ..- ',"-c ''...1 -•, Exhibit "D" 10 Year Property Improvement Plan 6/30/16,1:02 PM 10-Year Property Improvement Plan 1202 Sandpiper Projected expenses related to the use, maintenance, protection, and restoration in accordance with the Mills Act contract with the City of Palm Desert ear Proposed Project (see detail below) Estimated Cost 1 Annual Maintenance & Protection; Annual solar system payment $3,943 2 Annual Maintenance & Protection; Restore/paint front doors/solar payment $4,543 3 Annual Maintenance & Protection; Replace atrium plantings/solar payment $4,443 4 Annual Maintenance & Protection; Replace hot water heater/solar payment $4,943 5 Annual Maintenance & Protection; Stucco repair atrium/solar payment $5,443 6 Annual Maintenance & Protection; Replace HVAC system/solar payment $7,943 7 Annual Maintenance & Protection; Roof repair, annual solar system payment $5,293 8 Annual Maintenance & Protection; Annual solar system payment $3,943 9 Annual Maintenance & Protection; Interior painting, annual solar system payment $8,943 10 Annual Maintenance & Protection; $2,257 Annual Maintenance & Protection Expenses * Item Purpose Expense HOA Management (source: 2016 budget) management $375 HOA Earthquake Insurance (source: 2016 budget) protection $781 HOA Common Area Rep & Maint (source: 2016 budget) maintenance $156 HOA Lighting Repair & Maint (source: 2016 budget) maintenance $188 Interior Pest Control protection $432 HVAC and Solar Systems Maintenance maintenance $200 General Maintenance maintenance $125 • $2,257 * As a member of an HOA, certain items of the annual HOA budget relate to the objectives of the Mills Act contract. Expenses display an owners pro rata share of such expenses. One-off Projects Year Item Purpose cost 1 Annual solar system payment improvement $1,686 2 Restore/paint front doors/solar payment restore/improve $2,286 3 Replace atrium plantings/solar payment maint/improve $2,186 4 Replace hot water heater/solar payment maint/improve $2,686 5 Stucco repair atrium/solar payment restore/improve $3,186 6 Replace HVAC system/solar payment maint/improve $5,686 7 Roof repair, annual solar system payment maint/improve $3,036 8 Annual solar system payment improvement $1,686 9 Interior painting, annual solar system payment maint/improve $6,686 10 file:///Users/barbara/Library/Containers/com.apple.mail/Data/Library/Mail%20Downloads/2E5375E6-DF01-458C-BFDB-98C719576FF8/Table.htm Page 1 of 1 Recording Requested by: ) When Recorded Mail to: ) CITY OF PALM DESERT ) 73-510 Fred Waring Drive ) Palm Desert, CA 92260 ) Attention: Cultural Resources ) Administrator ) (Space above for Recorder's Office) HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT") between THE CITY OF PALM DESERT a municipal corporation and Pierson R. Forbes and Karen A. Forbes Owner(s) of the property located at 72-467 El Paseo Drive,#1205. Palm Desert Ca 92260 APN: 640-210-005-2 1 HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT or Agreement") This agreement is made this , by and between the City of Palm Desert, a municipal corporation ("City") and Pierson R. Forbes and Karen A. Forbes ("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 72-467 El Paseo Drive. #1205 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. 2 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 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. 3 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. 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 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 5 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 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. 6 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. 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: Pierson R. Forbes and Karen A. Forbes 72-467 El Paseo Drive,#1205, 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 7 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 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 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 . 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. 9 IN WITNESS WHEREOF. City and Owner have executed this Agreement on the day and year first above written. Dated: CITY OF PALM DESERT By ATTESTED TO: By Dated: Owner Owner APPROVED AS TO FORM City Attorney 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 California } SS. County of Riverside } On , 2017 , 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 "A" Legal Description EXHIBIT "A" PARCEL 1: LOT 21 OF TRACT 2774, IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 50, PAGE(S) 24 AND 25 OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. PARCEL 2: AN UNDIVIDED 1/16TH INTEREST IN AND TO LOT 34 OF TRACT 2774, AS SHOWN BY MAP ON FILE IN BOOK 50, PAGE(S)24 AND 25 OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, FOR RECREATION PURPOSES AND THE FACILITIES THEREOF. EXCEPTING THEREFROM THAT PORTION DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWESTERLY CORNER OF LOT 30 OF TRACT 2774, SOUTH 18° 08' 55" WEST ALONG THE WESTERLY LINE OF LOT 30 A DISTANCE OF 71.50 FEET TO THE SOUTHWESTERLY CORNER; THENCE NORTH 71°51' 05" WEST ALONG THE NORTHWESTERLY EXTENSION OF THE SOUTHERLY LINE OF LOT 30, A DISTANCE OF 4.50 FEET; THENCE NORTH 18° 08' 55" EAST PARALLEL WITH THE WESTERLY LINE OF SAID LOT 30, A DISTANCE OF 71.50 FEET, SOUTH 71° 51' 05" EAST 4.50 FEET TO THE POINT OF BEGINNING. PARCEL 3: AN UNDIVIDED NON-EXCLUSIVE RIGHT OF INGRESS AND EGRESS OVER ACCESS EASEMENT OVER LOTS 33 AND 34, TRACT 27724, AS SHOWN BY MAP ON FILE IN BOOK 50, PAGES 24 AND 25 OF MAPS, RECORDS OF RIVERSIDE COUNTY, SAID RIGHT BEING APPURTENANT TO THE LAND HEREIN DESCRIBED AS PARCEL ONE. ***END OF LEGAL DESCRIPTION*** 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. Exhibit "C" Photos • i --,. _ ,. .I• '' '." ' .-1'"0- r- ' • t -vi' - , ,:;:f; .-.,4 19..0 tit.. )11, ‘.35_4.: -. • - ; • ' 14.' . ,••••Ari•A„,„e;„I'',• "'Jo ine .- • • .."%e..„;'..1/::.( , A r., .-t''..;NI •• . - i .. -- -.,.•l• ":54.- 4.•••4.- / .. ---*, r go . ..., , z • . .:. }!••.' .11.4 ogr YZ:T ,( , _ L ,..21,. ,..c..:.,.., . :or._ 4.. -el. .11, •A. .1. • ' t . ...... ' • 1 i ... ..".--... .-... -....- ...- • "ili. ,..._. .. . • _......_,.. -.won- '2i7 5 SANDPIPER _ -_„,.. _.... -.4ssmer --• _ _.... I - ., I. ..,,A.. , ..• P •L .„ t • I t I t iii v ,,,S , :, • • , 1 $ I , . .. ,, --ii. ,, ,.•,, t ita 0.: L..v•iiv , z ' 4 - inimiaaa,_ 4,i‘k J ;:,,' a,•$ , _ , _1 .4. 'ImK.=• - f- - - -,.- - - ,__4 I ... 1.".'411... •• 14 1, ...,„.. . t • . . • .N., — • 0 , k • Ii• ..1' *."d —. — —••.—n—.,.. ... .—.• 4 .. I • -- . i&_•-:-;•-.4„,;,-..:-.s., • I ,..,,.........,.., . __ow. _ •.::,. i 4;- • ... - -- .• .f / jir....... • / _ • ..4. •...,- . • • t - , . .. . -,,.-1, ' • - •'.:).;."''-4- - • - - . ... . K ,,,._ • v', ' ; ..".! ••• ? ''•-- ! , -• 4.if •I' 7&.. • 1. .•' „ ' 1 • '‘ ; 'I • i 4 e so 4foliircii r _ , i 0-;,1:" • • •ra , . . — i.11 ! fr,, •01. . .. • ..1 ' 1 ...! P 'STA r ' , • --i # s i i I I, ri . c , " —... :7"... / . 1 ,_... - • „.•-.•L $ • rk•_F:.•'.. ..r1 -..."4:f. '- . • .• • - It . . • 7..- •... .._ e‘ ..,-.. . .. ---J — ,., ,7.. 7 -':- Or; , 1_ ..l,.. 1 . • . .. ,, ,1-z-e . . . .. - ---.4e=zaseemziiirmemar___ _- 1205 SANDPIPER Exhibit "D" 10 Year Property Improvement Plan L205 Sandpiper Projected eatpestses related to the use,make,protection,ait ation i liscoidarice with the .. • Mitts Act contract with the City of Pairn Desert Year Pro• ' - • .P.• a - II belt:ow Estimated Cost. 1 Annual Maintenance&.Protection'.,brtelior Pat - _ _ __ __ - - - - _ -- _ - 2 980 _ _ _ 2 Annual Maintenance &Protection; Patio Landscape - 2430 3 Annual Maintenance&Protection; Flail Bath Cabinets _ = - = $3 080 4 Annual Maintenance & Protection; interior Painting =_ $2,980 w 5 Annual Maintenance&H�oted�lf"-��'atio Landscape - - - - - $2,930 6 Annual Maintenance & Protection- Master Bath Cabinets `' ''` - $3,280 7 Annual Maintenance&Protection, Master Bath Cabinets $3,180 8 Annual Maintenance&Protection; Patio Door Replacement - $2,930 -- -- - - --- ------ --- 9 Annual Maintenance&Protection, Patio. .. . ... _. 2 0 Landscape.�:aPe $ .93 10 Annual finance&Protection, Carpet $2,680 Annual Maintenan '& n: 0e Item r- = ': : ;:,_;•,_..:f = r's' ;.:;= ; :• ::-c:- - - - _ - Y t:: _ Purpose bcpense:> HOA M - --si1urce �2fl .f , - - _ :. . . - .: HOA Earthquake Insurance(source: 2016 budget) prate i : $781 HOA Common Area Rep&Maint(source: 2016 budget) maintenafe $156 HOA lighting Repair&Maint(source: 2016 budget) maintenance $188 HVAC Maintenance aintenance $180 General Maintenance maintenance $500 • 2180 * As a member of an:HOA,.certain items.:af.:the annual HOA budget relate to the objectives of the Mills Act contract. :. noted L":`: _- a n atmner's g ry.rat l=5tiare of such:ex•-rases.. On -vim'P s Purpose cost 1 interior Painting restoration $800 2 Patio Landscape restoration $750 3 Hall Bath Cabinets restoration $900 4 Interior Painting restoration $800 5 Patio Landscape restoration $750 6 Roof Resurfacing $1,100 7 Master Bath Cabinets restoration $1,000 8 Patio Door Replacement restoration $750 9 Patio Landscape restoration $750 10..:. . Bedroom Carpet restoration 1500 9 C Recording Requested by: ) When Recorded Mail to: ) CITY OF PALM DESERT ) 73-510 Fred Waring Drive ) Palm Desert, CA 92260 ) Attention: Cultural Resources ) Administrator ) (Space above for Recorder's Office) HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT") between THE CITY OF PALM DESERT a municipal corporation and Price Family Property Trust(M Kelley Price & Nancy W, Price) Owner(s) of the property located at 72-439 El Paseo Drive, #1207, Palm Desert Ca 92260 APN: 640-210-007 1 HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT or Agreement") This agreement is made this , by and between the City of Palm Desert, a municipal corporation ("City") and Price Family Property Trust(M Kelley Price & Nancy W. Price) ("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 72-439 El Paseo Drive, #1207 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. 2 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 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. 3 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. 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 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 5 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 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. 6 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. 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: Price Family Property Trust (M Kelley Price & Nancy W. Price) 72-439 El Paseo Drive, #1207, 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 7 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 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 8 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. 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. 9 IN WITNESS WHEREOF. City and Owner have executed this Agreement on the day and year first above written. Dated: CITY OF PALM DESERT By ATTESTED TO: By Dated: Owner Owner APPROVED AS TO FORM City Attorney 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 California J } SS. County of Riverside } On , 2017 , 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 "A" Legal Description ORDER NO.OR1351220 EXHIBIT"A" PARCEL 1: LOT 23 OF TRACT NO.2774, IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE,STATE OF CALIFORNIA,AS SHOWN BY MAP ON FILE IN BOOK 50, PAGES 24 AND 25 OF MAPS, RECORDS OF RIVERSIDE COUNTY,CAUFORNIA. PARCEL 2: AN UNDIVIDED ONE-SIXTEENTH (1116m)INTEREST IN AND TO LOT 34 OF TRACT NO.2774,AS SHOWN BY MAP ON FILE IN BOOK 50, PAGES 24 AND 25 OF MAPS, RECORDS OF RIVERSIDE COUNTY,CALIFORNIA,FOR RECREATION PURPOSES AND FACILITIES THEREFOR; EXCEPTING THEREFROM THAT PORTION DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWESTERLY CORNER OF LOT 30 IN SAID TRACT NO.2774;THENCE SOUTH 18 DEGREES 08' 55"WEST,ALONG THE WESTERLY UNE OF SAID LOT 30,A DISTANCE OF 71.50 I-tt t TO THE SOUTHWESTERLY CORNER OF SAID LOT;THENCE NORTH 71 DEGREES 51'05"WEST,ALONG THE NORTHWESTERLY EXTENSION OF THE SOUTHERLY LINE OF SAID LOT 30,A DISTANCE OF 4.50 FEET;THENCE NORTH 18 DEGREES 08'55"EAST,PARALLEL WITH THE WESTERLY UNE OF SAID LOT 30,A DISTANCE OF 71.50 FEET;THENCE SOUTH 71 DEGREES 51'05"EAST 4.50 FEET,TO THE POINT OF BEGINNING. PARCEL 3: AN UNDIVIDED NON-EXCLUSIVE RIGHT FOR INGRESS AND EGRESS OVER AN ACCESS EASEMENT OVER LOTS 33 AND 34 OF TRACT NO.2774,AS SHOWN BY MAP ON FILE IN BOOK 50,PAGE 24 AND 25 OF MAPS, RECORDS OF RIVERSIDE COUNTY,CALIFORNIA, SAID RIGHT BEING APPURTENANT TO THE LAND DESCRIBED AS PARCEL 1. '`'*END OF LEGAL DESCRIPTION'' ! 2813/285671 111 95191/291311,53R i; I ,I • 2 of 3 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. Exhibit "C" Photos N. y 14. l>x . ' r II di w.r'• N; TAt,. -..- :E;^ •. .--. `�! `• 1. ,f - '� f �.�� :.•s .,t: -�ti^ ink•::: Lliw, , ..,,c:.., — Ei• ' •711a.. �:. . '..::.-._,.... V ._ �.a:tr+,.r�:,_.z.......�:ram:. - _ .•+.,� 12 17 SANDP3°ER ! -4k- , li- . ... L r�fA; i, ` j T' r Exhibit "D" 10 Year Property Improvement Plan 111.1111.1.1M11.11.1111111111111111111111111.111 1207 Sandpiper Projected expenses related to the use, maintenance, protectiak;"and restoration in accordance with the Mills Act contract with the City of Palm Desert Year Proposed Project (see detail below) Estimated Cost Annual Maintenance & Protection; Install alarm system; remove existing 1 panel & re-stucco $3,C100 2 Annual Maintenance & Protection; Rebuild patio pergola; install gutters $4,300 3 Annual Maintenance & Protection; Refinish & re-coat foam roof $5,300 4 Annual Maintenance & Protection; Interior Paint touch-up $2,900 5 Annual Maintenance & Protection; Courtyard paint $2,740 5 Annual Maintenance & Protection; Interior Paint touch-up $2,900 7 Annual Maintenance & Protection; $2,300 8 Annual Maintenance & Protection; Re-coat foam roof $4,300 9 Annual Maintenance & Protection; Interior Paint touch-up $2,900 10 Annual Maintenance & Protection; $2,300 _ Annual Maintenance & Protection Expenses Item Purpose Expense HOA Management (source: 2016 budget) management $375 HOA Earthquake Insurance (source: 2016 budget) protection $781 HOA Common Area Rep & Maint (source: 2016 budget) maintenance $156 HOA Lighting Repair & Maint (source: 2016 budget) maintenance $188 Alarm Service protection $300 HVAC Maintenance maintenance $150 Summer Caretaking protection $350 $2,300 * As a member of an HOA, certain items of the annual HOA budget relate to the objectives of the Mills Act contract. Expenses noted as "HOA" display an owner's pro rata share of such expenses. One-off Projects Year Item Purpose cost 1 Install alarm system; remove existing panel & re-stucco protection $700 2 Rebuild patio pergola; install gutters restoration $2,000 3 Refinish & re-coat foam roof maintenance $3,000 4 Interior Paint touch-up maintenance $600 5 Courtyard paint maintenance $400 6 Interior Paint touch-up maintenance $600 7 8 Re-coat foam roof maintenance $2,000 9 Interior Paint touch-up maintenance $600 10 Recording Requested by: ) When Recorded Mail to: ) CITY OF PALM DESERT ) 73-510 Fred Waring Drive ) Palm Desert, CA 92260 ) Attention: Cultural Resources ) Administrator ) (Space above for Recorders Office) HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT") between THE CITY OF PALM DESERT a municipal corporation and Price Family Property Trust (M Kelley Price and Nancy W, Price) Owner(s) of the property located at 72-441 El Paseo #1208, Palm Desert Ca 92260 APN: 640-210-008 1 HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT or Agreement") This agreement is made this , by and between the City of Palm Desert, a municipal corporation ("City") and Price Family Property Trust(M Kelley Price and Nancy W. Price) ("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 72-441 El Paseo Drive. #1208 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. 2 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 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. 3 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. 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 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 5 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 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. 6 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. 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: Price Family Property Trust (M Kelley Price & Nancy W. Price) 72-441 El Paseo #1208, 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 7 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 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 8 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. 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. 9 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written. Dated: CITY OF PALM DESERT By ATTESTED TO: By Dated: Owner Owner APPROVED AS TO FORM City Attorney 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 California } } SS. County of Riverside } On , 2017 , 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 "A" Legal Description • ORDER NO. OR0951887 EXHIBIT "A" A CONDOMINIUM COMPRISED OF: PARCEL 1: LOT(S)24 TO TRACT NO. 2774, IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE,STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 50, PAGE(S)24 AND 25 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL 2: AN UNDIVIDED 1/16TH INTEREST IN AND TO LOT 34 AND SAID TRACT NO.2774, FOR RECREATION PURPOSES AND THE FACILITIES THEREFOR; EXCEPTING FROM SAID LOT 34 THE PORTION THEREOF PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWESTERLY CORNER OF LOT 30 IN SAID TRACT NO.2774; THENCE SOUTH 18°08'55"WEST,ALONG THE WESTERLY LINE OF SAID LOT 30, A DISTANCE OF 71.50 FEET TO THE SOUTHWESTERLY CORNER OF SAID LOT; THENCE NORTH 71°51' 05" WEST, ALONG THE NORTHWESTERLY EXTENSION OF THE SOUTHERLY LINE OF LOT 30, A DISTANCE OF 4.50 FEET; THENCE NORTH 18° 08'55" EAST, PARALLEL WITH THE WESTERLY LINE OF SAID LOT 30, A DISTANCE OF 71.50 FEET; THENCE SOUTH 71°51'05" EAST,4.50 FEET TO THE POINT OF BEGINNING. PARCEL 3: AN UNDIVIDED NON-EXCLUSIVE RIGHT FOR INGRESS AND EGRESS OVER AND ACCESS EASEMENT OVER LOTS 33 AND 34 OF SAID TRACT NO.2774,AS SHOWN ON THE RECORDED MAP OF SAID TRACT, SAID RIGHT BEING APPURTENANT TO THE LAND DESCRIBED AS PARCEL 1. PARCEL 4: AN UNDIVIDED NON-EXCLUSIVE RIGHT FOR INGRESS AND EGRESS OVER A 20 FOOT ACCESS EASEMENT OVER LOTS 33 AND 34 OF SAID TRACT NO.2659,ON FILE IN BOOK 47, PAGES 17 AND 18 OF MAPS, RECORD OF RIVERSIDE COUNTY,AS SHOWN ON SAID RECORDED MAP OF SAID TRACT, SAID RIGHT BEING APPURTENANT TO THE LAND HEREIN DESCRIBED AS PARCEL 1. ***END OF LEGAL DESCRIPTION*** 3 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. Exhibit "C" Photos „ ...:'.' ..• - . I .,• - .. '1 e • • _ ... . .4 _.....______ .•• - -II. _. ..ti.iv..•, °'-'''. ' ...pi•,••, ''`,'• - . i a.• .. •• • , t -.'•'-.. 4-- - ( .- • •• • • , t -•( . 1 .„ • -'1 .•'- ' 'i 1... ' •• •1- - • .. i• . . 1 c.-.49 I-••-• --•• . -.1 : ••.•- -• .1••,k ,?'' a-- •. /6 • -- ,r -.. . ..-&. -11L r• • .,..; ... •• ,-. .• .... . ..3 . et. ..•- "01/1.‘,\ . ]Li..;.-, L . ... ..•.... ..., . • - . ,.... -,.. _ 46.''',:, •,r!/ -— - . ••r .. --.••.-.y.• -':.:'-'• . 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' e• '' r'....'..i .,. . .• ... .• .. ••. •.-.,- -....-' '.-•...,.1%,•.,.. .•7*” -. '''...' '•: '.•. . •.•1 .., .. • ... I.. y.• . -•- -• . .._, . r ..---. -•- •• • • • • ..."-. •--• • e.. 7,, . •.II,.,. . -, •• . • • -1. •- • . • . . . •• •-.1 11 . ( •..,_ • • -I. - • . i. i• .1. • t:• ... • • .. . ...,..... . .. .- •,t/k '.- . ' ,.*. . . . , ...,, ... ..... ..--- • ._.....•'r''''. -. r. .u • •• -- - ''''-•.. V) • . • •• ''•'... ,N.:•.• • -.. .t 41„,i-''-'1.. ' . •, ,..,.14,,.0 . -... ,.. ; .,:: ,'-.. ••'' k..IL',..--• _ •Eff.li : • -..... • . , .__. ... . . vi 4*. ••••••Ta•T••• • t . . 1 t9i • — ••• I • :„. .....%..r • .-..•-•.• ... . - .... . ''.! • L',.N• . • ''. : "-*3".--•••'• . •• .....:.••1 _ .. •'•••••••"*.,i,..• -,t- .. 7...^ -T•,?,-.- .'t• ••• .:W..-. •-. T . • t.- - I . . , -•••. ....4,•:„. • i• i. 4 LA- .. --,- . I 1 •- • . •-• -414., ... •• ...___ • .._ .. . ... .. „.-, . ....„ . . ,..„ ...• _ •.... ... .. ..... ....__ • • ... •. _.. . .. - - .- . -.— - •-• .L • .,.• - - - • .. . • - . ._ .„, _ .. . __... _ •,..,..,, ..,„:,:::....:;.„! 7•••. ....:4_,.-.-.......2-..--7•'-',..16..,.-.1--:7.—...c•...:.•, .:...'`•..• _. ..... ••• ... . ;•.•::,.SANDE'.REP, • - .... -• •. __ , . .. 1 Exhibit "D" 10 Year Property Improvement Plan _ 1208 Sandpiper Projected expenses related to the use, maintenance, protection, and restoration in accordance with the Mills Act contract with the City of Palm Desert Year Proposed Project (see detail below) Estimated Cost 1 Annual Maintenance & Protection; Install septic inspection risers $4,063 2 Annual Maintenance & Protection; Refinish & re-coat foam roof $5,563 3 Annual Maintenance & Protection; Grind courtyard patio for drainage $3,213 4 Annual Maintenance & Protection; Remove shadow block nails & repair $3,163 5 Annual Maintenance & Protection; Courtyard painting $3,163 6 Annual Maintenance & Protection; $2,563 7 Annual Maintenance & Protection; Interior Paint touch-up $3,163 8 Annual Maintenance & Protection; Re-coat foam roof $4,563 9 Annual Maintenance & Protection; $2,563 10 Annual Maintenance &Protection; Interior Paint touch-up $3,163 Annual Maintenance & Protection Expenses * Item Purpose Expense HOA Management (source: 2016 budget) management $375 HOA Earthquake Insurance (source: 2016 budget) protection $781 HOA Common Area Rep & Maint (source: 2016 budget) maintenance $156 HOA Lighting Repair & Maint (source: 2016 budget) maintenance $188 Alarm Service protection $563 HVAC Maintenance maintenance $150 Summer Caretaking protection $350 $2,563 * As a member of an HOA, certain items of the annual HOA budget relate to the objectives of the Mills Act contract. Expenses noted as "HOA" display an owner's pro rata share of such expenses. One-off Projects Year Item Purpose cost 1 Install septic inspection risers maintenance $1,500 2 Refinish & re-coat foam roof maintenance $3,000 3 Grind courtyard patio for drainage restoration $650 4 Remove shadow block nails & repair stucco maintenance $600 5 Courtyard painting maintenance $500 6 7 Interior Paint touch-up maintenance $600 S Re-coat foam roof maintenance $2,000 9 10 Interior Paint touch-up maintenance $600 Recording Requested by: ) When Recorded Mail to: ) CITY OF PALM DESERT ) 73-510 Fred Waring Drive ) Palm Desert, CA 92260 ) Attention: Cultural Resources ) Administrator ) (Space above for Recorder's Office) HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT") between THE CITY OF PALM DESERT a municipal corporation and Norman E. Bell and Alison W. Bell,Trustees of the PDB and BB Revocable Trust Agreement dated 2/4/13 Owner(s) of the property located at 72-443 El Paseo #1209, Palm Desert Ca 92260 APN: 640-210-009-6 1 HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT or Agreement") This agreement is made this , by and between the City of Palm Desert, a municipal corporation ("City") and Norman E. Bell and Alison W. Bell, Trustees of the PDB and BB Revocable Trust Agreement dated 2/4/13 ("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 72-443 El Paseo Drive. #1209 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. 2 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 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. 3 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. 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 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 5 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 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. 6 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. 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: Norman E. Bell and Alison W. Bell,Trusteesof the PDB and BB Revocable Trust Agreement dated 2/4/13 72-443 El Paseo #1209, 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 7 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 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 8 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. 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. 9 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written. Dated: CITY OF PALM DESERT By ATTESTED TO: By Dated: Owner Owner APPROVED AS TO FORM City Attorney 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 California } } SS. County of Riverside } On , 2017 , 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 "A" Legal Description ORDER NO. OR1151065 EXHIBIT "A" PARCEL 1: ALL OF LOT 25 OF TRACT 2774,AS SHOWN BY MAP ON FILE IN BOOK 50 PAGES 24 AND 24 OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. PARCEL 2: AN UNDIVIDED ONE-SIXTEENTH (1/16TH)INTEREST IN AND TO LOT 34 OF SAID TRACT NO.2774, FOR RECREATION PURPOSES AND THE FACILITIES THEREFOR; EXCEPTING FROM SAID LOT 34 THE PORTION THEREOF PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWESTERLY CORNER OF LOT 30 IN SAID TRACT 2774;THENCE SOUTH 18°08'55"WEST,ALONG THE WESTERLY LINE OF SAID LOT 30,A DISTANCE OF 71.50 FEET TO THE SOUTHWESTERLY CORNER OF SAID LOT;THENCE NORTH 71°51'05"WEST,ALONG THE NORTHWESTERLY EXTENSION OF THE SOUTHERLY LINE OF SAID LOT 30,A DISTANCE OF 4.50 FEET;THENCE NORTH 18°08'55" EAST PARALLEL WITH THE WESTERLY LINE OF SAID LOT 30,A DISTANCE OF 71.50 FEET THENCE SOUTH 71° 51'05" EAST,4.50 FEET TO THE POINT OF BEGINNING. PARCEL 3: AN UNDIVIDED NON-EXCLUSIVE RIGHT FOR INGRESS AND EGRESS OVER AN ACCESS EASEMENT OVER LOTS 33 AND 34 OF TRACT 2774,AS SHOWN ON THE RECORDED MAP OF SAID TRACT SAID RIGHT BEING APPURTENANT TO THE LAND DESCRIBED AS PARCEL ONE. PARCEL 4: AN UNDIVIDED NON-EXCLUSIVE RIGHT FOR INGRESS AND EGRESS OVER A 20 FOOT ACCESS EASEMENT OVER LOTS 33 AND 34 IN TRACT 2659, AS SHOWN BY MAP ON FILE IN BOOK 47 PAGES 17 AND 18 OF MAPS, RECORDS OF RIVERSIDE COUNTY CALIFORNIA AS SHOWN ON THE RECORDED MAP OF SAID TRACT, SAID RIGHT BEING APPURTENANT TO THE LAND HEREIN DESCRIBED AS PARCEL 1. ***END OF LEGAL DESCRIPTION*** 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. Exhibit "C" Photos ., i y. , L r. L =f• 7 i t i .�f •.}� or 1 - .• '; • • in .— .. ' + }� --1279 SPA31'eft i R 1 I r• r. Exhibit "D" 10 Year Property Improvement Plan ',01 'O b 1209 Sand'i•er ,... :..: ,.; Projected expenses related to the use, maintenance, protection, and restoration in accordance with the Mills Act contract with the City of Palm Desert Year Proposed Project (see detail below) Estimated Cost Annual Maintenance & Protection; Paint interior courtyard/General 1 maintenance $3,900 Annual Maintenance & Protection; HVAC replacement/General 2 maintenance $5,400 3 Annual Maintenance & Protection; Foam roof resurface/general $4,900 4 Annual Maintenance & Protection; Interior paint touchup/general $5,400 5 Annual Maintenance & Protection; Replace bedroom sliders/general $3,900 maintenance 6 Annual Maintenance & Protection; Electrical upgrades/General $3,900 7 Annual Maintenance & Protection; Paint interior courtyard/General $3,900 8 Annual Maintenance & Protection; Replace appliances/General maintenace $4,400 9 Annual Maintenance & Protection; Interior door replacement/General $4,400 10 Annual Maintenance & Protection; Replace foam roof/General $5,900 Annual Maintenance & Protection Expenses * Item Purpose Expense HOA Management (source: 2016 budget) management $375 HOA Earthquake Insurance (source: 2016 budget) protection $781 HOA Common Area Rep & Maint (source: 2016 budget) maintenance $156 HOA Lighting Repair & Maint (source: 2016 budget) maintenance $188 Alarm Service protection $720 HVAC Maintenance maintenance $150 Summer Caretaking protection $530 $2,900 * As a member of an HOA, certain items of the annual HOA budget relate to the objectives of the Mills Act contract. Expenses noted as "HOA" display an owner's pro rata share of such expenses. .�'S....1 s f'.Z�2t}:i'�&Mca;t:MM..1'f L4 32•414 .a°.Li1F'r`st�_]::Yv,4'.4Si is ir',: One-off Projects Year Item Purpose cost 1 Paint interior courtyard/General maintenance maintenance $1,000 2 HVAC replacement/General maintenance restoration $2,500 3 Foam roof resurface/general maintenance maintenance $2,000 4 Interior paint touchup/general maintenance maintenance $2,500 5 Replace bedroom sliders/general maintenance restoration $1,000 6 Electrical upgrades/General maintenance maintenance $1,000 7 Paint interior courtyard/General maintenance restoration $1,000 8 Replace appliances/General maintenace restoration $1,500 9 Interior door replacement/General maintenance maintenance $1,500 10 Replace foam roof/General maintenance restoration $3,000 Recording Requested by: ) When Recorded Mail to: ) CITY OF PALM DESERT ) 73-510 Fred Waring Drive ) Palm Desert, CA 92260 ) Attention: Cultural Resources ) Administrator ) (Space above for Recorder's Office) HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT") between THE CITY OF PALM DESERT a municipal corporation and Karen Brady Czopek,Trustee of the Karen Brady Czopek Revocable Trust dated 12/13/12, as to 50%interest. and Bruse Lee Czopek, Trustee of the Bruse Lee Czopek Revocable Trust dated 12/13/12, as to 50% interest Owner(s) of the property located at 72-445 El Paseo #1210, Palm Desert Ca 92260 APN: 640-210-010-6 • HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT or Agreement") This agreement is made this , by and between the City of Palm Desert, a municipal corporation ("City") and Karen Brady Czopek, Trustee of the Karen Brady Czopek Revocable Trust dated 12/13/12, as to 50%interest, and Bruse Lee Czopek. Trustee of the Bruse Lee Czopek Revocable Trust dated 12/13/12, as to 50% interest ("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 72-445 El Paseo Drive. #1210 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. 2 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. Non renewal. 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. 3 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. 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 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 5 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 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. 6 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. 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: Karen Brady Czopek, Trustee of the Karen Brady Czopek Revocable Trust dated 12/13/12, as to 50%interest, and Bruse Lee Czopek, Trustee of the Bruse Lee Czopek Revocable Trust dated 12/13/12, as to 50% interest 72-445 El Paseo#1210, Palm Desert, Ca 92260 7 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 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. 8 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. 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. 9 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written. Dated: CITY OF PALM DESERT By ATTESTED TO: By Dated: Owner Owner APPROVED AS TO FORM City Attorney 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 California } } SS. County of Riverside } On , 2017 , 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 P.ERJURY 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 "A" Legal Description EXHIBIT "A" THE LAND REFERRED TO HEREIN IS SITUATED IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: A CONDOMINIUM COMPRISED OF: PARCEL 1: ALL OF LOT 26 OF TRACT NO. 2774, IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS RECORDED IN BOOK 50, PAGES 24 AND 25 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL 2: AN UNDIVIDED ONE-SIXTH (1/16) INTEREST IN AND TO LOT 34 OF SAID TRACT NO. 2774 FOR RECREATION PURPOSES AND THE FACILITIES THEREFOR. EXCEPTING FROM SAID LOT 34 THE PORTION THEREOF PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEASTERLY CORNER OF LOT 30 IN SAID TRACT 2774;THENCE SOUTH 18° 08' 55" WEST, ALONG THE WESTERLY LINE OF SAID LOT 30 A DISTANCE OF 71.50 FEET TO THE SOUTHEASTERLY CORNER OF SAID LOT;THENCE SOUTH 71° 51' 05" WEST,ALONG THE NORTHEASTERLY EXTENSION OF THE SOUTHERLY LINE OF SAID LOT 30,A DISTANCE OF 4.50 FEET; THENCE NORTH 18° 08' 55" EAST, PARALLEL WITH THE WESTERLY LINE OF SAID LOT 30, A DISTANCE OF 71.50 FEET; THENCE SOUTH 71° 51' 05" EAST, 4.50 FEET TO THE POINT OF BEGINNING. PARCEL 3: AN UNDIVIDED NON-EXCLUSIVE RIGHT FOR INGRESS AND EGRESS OVER AN ACCESS EASEMENT OVER LOTS 33 AND 34 OF SAID TRACT 2774, AS SHOWN ON THE RECORDED MAP OF SAID TRACT, SAID RIGHT BEING APPURTENANT TO THE LAND DESCRIBED AS PARCEL ONE. EXCEPTING • TO GRANTOR, ITS SUCCESSOR AND ASSIGNS, A NON-EXCLUSIVE EASEMENT OVER THE WESTERLY PORTIONS OF LOTS 33 AND 34 OF SAID TRACT 2774 VARYING FROM 20 TO 30 FEET IN WIDTH FOR INGRESS AND EGRESS FOR THE BENEFIT OF AND BEING APPURTENANT TO LAND ADJOINED ON THE WEST. ASSESSOR'S PARCEL NUMBER: 640-210-010-6 CLTA Preliminary Report Form—Modified(11-17-06) 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. Exhibit "C" Photos _ ........ • --.-1 •7••••e7- •••• •••• • . 1.1111114 1. 1 ..J . .. , if-,11. •i t. . . . • i• • • . - • -•'.i; .,. ...-. , • 4 .\ 1 ______._L.__..- .____ ' '1-'"••••••1 -. -i • ' .. 5." •• 1114 1- -- I lig - ii••• • -i ;• • .. • - --- •.. ._•__.___..—. ,.• • . .. • . . .•• 1, '11 KII WV 1 .I X RAXX 2 XXX XX • - - •.. ›.-•,---'7,-.. ..... 1. ,• • ,. -.-,1:::. , • ....• • ,..... • • it- . X gli le -. . „- •- .. • ... •. -.• A WV X .. •.-.', .....•.-. •••L:.,.. ..-. '.,,,fr1-:17,,.:_, Iiri'- -..'.. 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IV 1.0•:.. . j'-7 1.•_ .1, . . • • . . .o.• ' Ili'. 4.41.(i. ---':' • s • ,. . ,. : •• 't!'.$ •$.,1/ 1 4.tr ''.e.- , .;. •' .-- ." ..r. Ity; so .• ..: .. A • . ..'..,'.0 , , !L , 0 - • • • ti \ • • • • • 4-4 --.- .• .' : ' ..ei. : i . •....-:' • ''..• . '-•••• ' 14.• '•t•--••• • •.4.'•7..4:.-14*.•''''r• •'• ••:. ...•_ I !it./•ZZlit• •. i . , 7--•-•• ..... y ..!.9!.. i••,,••,...., t ' F . • ..• • 4- • i , i:,•,,,, . .... ..1.„ --11). •• .., ..: •- ).- • • Y' . . . . ••..........,____.... . - ks • ,.• .. . ...li,:- , . . • .. — 1 .j.-11.. \.. 'r . ..5,...... `--.--....-...t \ _,..f -.--•'.,••-,-,.1:-4• !i,i.4,,4-..i•.•., j 114...-,14 i-'*°..i Jt','.1 2 l.,r.t!:-'•, ._.4i - ;.,'-•.•. :r:.r.'e•4•-•N- , •-..:' 't '•2916Vroff Exhibit "D" 10 Year Property improvement Plan 1210 Sandpiper Projected expenses related to the use, maintenance, protection, and restoration in accordance with the Mills Act contract with the City of Palm Desert Year Pro Died Project (see details below) Estimated.Cost 1 Annual Maintenance & Protection; HVAC - new system $11,201 2 Annual Maintenance & Protection; Roof - tear off and install new $9,701 3 Annual Maintenance & Protection; Door - replace exterior store room door $3,501 4 Annual Maintenance & Protection; Gutter and Downspouts - replace $3,651 5 Annual Maintenance & Protection; $3,201 6 Annual Maintenance & Protection; $3,201 7 Annual Maintenance & Protection; $3,201 8 Annual Maintenance & Protection; $3,201 9 Annual Maintenance & Protection; $3,201 10 Annual Maintenance & Protection; $3,201 Annual Maintenance & Protection Expenses * Item Purpose Expense HDA Management (source; 2016 budget) management $375 HOA Earthquake Insurance (source: 2016 budget) protection $781 HOA Common Area Rep & Maint (source: 2016 budget) maintenance $156 HOA Lighting Repair& Maint (source: 2016 budget) maintenance $188 Alarm Service protection $180 HVAC Maintenance maintenance $150 Interior Earthquake Insurance (2016) protection $1,371 $3,201 * As a member of an HOA, certain items of the annual HOA budget relate to the objectives of the Mills Act contract. Expenses noted as "HOA" display an owner's pro rata share of such expenses. One-off Projects Year Item Purpose cost 1 HVAC - new system protection $8,000 2 Roof- tear off and instal! new protection $6,500 3 Door - replace exterior store room door restoration $400 4 Gutter and Downspouts - replace protection $450 5 6 7 S 9 10 ., Recording Requested by: ) When Recorded Mail to: ) CITY OF PALM DESERT ) 73-510 Fred Waring Drive ) Palm Desert, CA 92260 ) Attention: Cultural Resources ) Administrator ) (Space above for Recorder's Office) HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT") between THE CITY OF PALM DESERT a municipal corporation and Karen Leon Owner of the property located at 72-447 Willow Street #1211, Palm Desert Ca 92260 APN: 640-210-011 1 HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT or Agreement") This agreement is made this , by and between the City of Palm Desert, a municipal corporation ("City") and Karen Leon ("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 72-447 Willow Street, #1211 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: 2 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 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: 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. 6. Periodic Examinations. Upon reasonable advance notice, Owner shall allow reasonable periodic examinations of the interior and exterior of the Historic 4 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 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 5 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. 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 6 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: Karen Leon 72-447 Willow St#1211, 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. 7 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 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. 8 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. 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. 9 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written. Dated: CITY OF PALM DESERT By ATTESTED TO: By Dated: Owner Owner APPROVED AS TO FORM City Attorney 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 California } } SS. County of Riverside } On , 2017 , 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 "A" Legal Description DOC#2014-0318844 Page 2 of 2 08/21/2014 03:17 PM • • EXHIBIT A LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE,STATE OF CALIFORNIA,AND IS DESCRIBED AS FOLLOWS: PARCEL I: ALL OF LOT 27 OF TRACT NO. 2774, IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 50, PAGES 25 AND 26 OF MAPS, RECORDS OF RIVERSIDE COUNTY,CALIFORNIA. PARCEL 2: AN UNDIVIDED 1/16TH INTEREST IN AND TO LOT 34 OF SAID TRACT NO.2774 FOR RECREATION PURPOSES AND THE FACILITIES THEREFOR; EXCEPTING FROM SAID LOT 34 THE PORTION THEREOF PARTICULARLY DESCRIBED AS FOLLOWS: • BEGINNING AT THE NORTHWESTERLY CORNER OF LOT 30 IN SAID TRACT NO.2774; THENCE SOUTH 18 DEGREES 08' 55" WEST, ALONG THE WESTERLY LINE OF SAID LOT 30, A DISTANCE OF 71.50 FEET TO THE SOUTHWESTERLY CORNER OF SAID LOT; THENCE NORTH 71 DEGREES 51' 05" WEST, ALONG THE NORTHWESTERLY EXTENSION OF THE SOUTHERLY LINE OF SAID LOT 30,A DISTANCE OF 4.50 FEET; THENCE NORTH 18 DEGREES 08' 55" EAST, PARALLEL WITH THE WESTERLY LINE OF SAID LOT 30, A DISTANCE OF 71.50 FEET; THENCE SOUTH 71 DEGREES 51'05"EAST,4.50 FEET TO THE POINT OF BEGINNING. PARCEL 3: AN UNDIVIDED NON-EXCLUSIVE RIGHT FOR INGRESS AND EGRESS OVER AN ACCESS EASEMENT OVER LOTS 33 AND 34 OF SAID TRACT NO. 2774, AS SHOWN ON THE RECORDED MAP OF SAID TRACT, SAID RIGHT BEING APPURTENANT TO THE LAND DESCRIBED AS PARCEL ONE. APN: 640-210-011-7 o-,. m A,.,,... L,.A,. o..,.:......,.�.n,�.., .. 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. Exhibit "C" Photos 1 i 1 r ilt' e ' . . -4 t I -, ., • & 1 i • .r.--: i ; T''. '2.--V.144-.••• 2... .1'• ''' .$.•• , • • i.•h,. ' - • •. •4", •••„ ••••• • T '"•- . & • - ,1.1-, c . ••• . • • - . •fr r : •..111,1,.. -,, *II...'• •t.,-;'''''-'r;-' .'" • ,' - • - -- ari - i' -- S.;- _ ...4., • 4 * - . k., ■ . - . ., ..., ... , , -4 , - b ' _. - • er, $1 #'NW: , ...L Air•.,., • .'S 1 •116• ; • , 11,.1••• , 7 ilez. • ... .1. • , 4r4 .• .01, , " —le • -. - -- - , •. ...., , , ... •• , : • • -.......„..• . - _ - 1%64 , . .‘ - ' — , . .,„0„.....1W — - 1211 SAN6•IP""l' . _ " . , 7:V".•• r ,-, a',-,0 le; , 7 •r ,r, i '' -.• :-... .P.... •'-'1* ,. i 7 1 d•l Pt 44,74 ' 'i . .. - _: $.3. " •,.` "s...11, :La- .,..... •0 , / i 'i ii . .. . . • I I ', , 1.•,; 54.',4 t 1 1 1 ' kr •IC %.,. 15:• . L. 1 1 i 1 . • . . •!.1.,,e,1 , .12'-. 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'• .• V at;!Will, •. t I .E +4,i• i, l'e i - • , \ ,.,.. 1 .ti es.".f it' #. 4 tt 1 ' 1-- IL 4 i ..... 1 \ - ;1 II •.... -— - -, . .., i• 1. ;IT- .7k t-'''_ i , I IL -' ‘7.- i ' 1 klit% XI- . . . . .,- , .._. F . !---` - •- 'g•' -. /.4.0-'r• iP• 4: 1.4. ,Pil•1. ',--4 ,......, NI w.,, , . .01•..11a•1111.•41.•14 • a.41' '',,14*al • .. .. . 1N;I ,,,L,.11 _, •,..,...y.aim a. 1 ''-, Idt. 11CMC'411-4 4 411.44**•*.•4 4.ow,.t.A - -0. , •.4.•14..6..i..1 41 tt 6.41 1 il ii•••• "---- .....i. M 1•141• .... i , '4 v.'.::: i-I' -,• .4!•*•v4..1.o :'6"•fk.•4.-‘4.% '.*41 ,. g•4ae: Ar- . - 1k••4.c1•',,'T0 1i.11.V_ 1p:*64A.•*."l*sk.4...1 *i V' -,r . Z -, 1211 SANDPIPER • .'. Li ..,..- ,-- •4 -.., :11K.1 ,40-i•?1%-..S' 6-.1 • ...... J'8.r k4 4..7 P........1 .= - ,..; - Exhibit "D" 10 Year Property Improvement Plan = f`�'` "': °.i1 '_- ;1+.;�,ri _�',• - 1211 Sandpiper Projected expenses related to the use, maintenance, protection, and restoration in accordance with the Mills Act contract with the City of Palm Desert Year Proposed Project (see detail below) Estimated Cost 1 Annual Maintenance & Protection; Paint Interior $3,150 2 Annual Maintenance &Protection; New flooring $7,150 3 Annual Maintenance & Protection; New cabinets $4,650 4 Annual Maintenance & Protection; New Alarm System $3,650 5 Annual Maintenance & Protection; Re-coat foam roof $4,650 6 Annual Maintenance & Protection; Courtyard touch up $2,650 7 Annual Maintenance & Protection; Add gutters $3,650 8 Annual Maintenance & Protection; $2,1S0 9 Annual Maintenance & Protection; $2,150 10 Annual Maintenance &. Protection; $2,150 Annual Maintenance & Protection Expenses Item Purpose Expense HOA-Management (source: 2016 budget) management $375- HOA Earthquake Insurance (source: 2016 budget) protection $78.1 HOA Common Area Rep & Maint (source: 2016 ,budget) maintenance $1.56 HOA Lighting Repair & Maint (source: 2016 budget) maintenance $188 HVAC Service maintenance $300 Roof Check and maintenance maintenance $350 $2,150 As a member of an HOA, certain items of the annual HOA budget relate to the objectives of the Mills Act contract. Expenses noted as "HOA" display an owner's pro rata share of such expenses. One-off Projects Year . Item Purpose cost 1 Paint Interior restoration $1,000 2 New flooring restoration $5,000 3 New cabinets restoration $2,500 4 New Alarm System protection $1,500 5 Re-coat foam roof maintenance $2,500 6 Courtyard touch up maintenance $500 7 Add gutters maintenance $1,500 8 9 1❑ Recording Requested by: ) When Recorded Mail to: ) CITY OF PALM DESERT ) 73-510 Fred Waring Drive ) Palm Desert, CA 92260 ) Attention: Cultural Resources ) Administrator ) ) (Space above for Recorder's Office) HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT") between THE CITY OF PALM DESERT a municipal corporation and Threeagreed, LLC Owner(s) of the property located at 72-455 El Paseo #1215, Palm Desert Ca 92260 APN: 640-210-015-1 1 HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT or Agreement") This agreement is made this , by and between the City of Palm Desert, a municipal corporation ("City") and Threeagreed, LLC ("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 72-455 El Paseo Drive, #1215 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: 2 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 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: 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. 6. Periodic Examinations. Upon reasonable advance notice, Owner shall allow reasonable periodic examinations of the interior and exterior of the Historic 4 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 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 5 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. 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 6 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: Threeagreed, LLC 72-455 El Paseo #1215, 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. 7 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 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. 8 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. 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. 9 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written. Dated: CITY OF PALM DESERT By ATTESTED TO: By Dated: Owner Owner APPROVED AS TO FORM City Attorney 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 California } SS. County of Riverside } On , 2017 , 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 "A" Legal Description DOC#2015-0407438 Page 3 of 3 • EXHIBIT A LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF PALM DESERT, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA,AND IS DESCRIBED AS FOLLOWS: PARCEL 1: ALL OF LOT 31 OF TRACT NO. 2774, IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA,AS SHOWN BY MAP ON FILE IN BOOK 50, PAGES 24 AND 25 OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. PARCEL 2: AN UNDIVIDED 1/16TH INTEREST IN AND TO LOT 34 OF SAID TRACT NO. 2774, AS RECREATION PURPOSES AND THE FACILITIES THEREFOR; EXCEPTING FROM SAID LOT 34 THE PORTION THEREOF PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWESTERLY CORNER OF LOT 30 IN SAID TRACT NO. 2774; THENCE SOUTH 18° 08'55"WEST,ALONG THE WESTERLY LINE OF SAID LOT 30, A DISTANCE OF 71.50 FEET TO THE SOUTHWESTERLY CORNER OF SAID LOT; THENCE NORTH 71° 51'05"WEST,ALONG THE NORTHWESTERLY EXTENSION OF THE SOUTHERLY LINE OF SAID LOT 30, A DISTANCE OF 4.50 FEET; THENCE NORTH 18° 08'55" EAST, PARALLEL WITH THE WESTERLY LINE OF SAID LOT 30,A DISTANCE OF 71.50 FEET; THENCE SOUTH 71° 51'05" EAST, 4.50 FEET TO THE POINT OF BEGINNING. PARCEL 3: AN UNDIVIDED NON-EXCLUSIVE RIGHT FOR INGRESS AND EGRESS OVER AN ACCESS EASEMENT OVER LOTS 33 AND 34 OF SAID TRACT NO.2774, AS SHOWN ON THE RECORDED MAP OF SAID TRACT, SAID RIGHT BEING APPURTENANT TO THE LAND DESCRIBED AS PARCEL 1. APN: 640-210-015-1 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. Exhibit "C" Photos • ... ; - - .0 • Iji ill.. . , . • • + i _ �: • 1........,.•_, ..„............._._...„.„...,.. .1.. , ..., . _ '''''t 1 I. V...; 7i:ill!!1...t....,... I J. , , • ' • l{ :� "c/ - � ' ' y. • S~ ti ' • • Li ." °— • f . 1] ,•-11-4:Y74-,:' -_ i ,. M-. - : A4° •'Ay z• ` •4. • l. • .r _• r_' k'.• xyry + -xi• g ' _; ems. r•A r Exhibit "D" 10 Year Property Improvement Plan 1215 Sandpipe Projected expenses related to the use, maintenance, protection, and restoration in accordance with the Mills Act contract with the City of Palm Desert Year Pro i osed Pro"ect see detail below Estimated Cost 1 Annual Maintenance & Protection; install storm drain in courtyard $2,700 Annual Maintenance & Protection; resurface courtyard concrete $ ,300 2 decking; seal cracks 4 3 Annual Maintenance & Protection; remove stucco inside patio; $3,300 4 Annual Maintenance & Protection; new roof--part 1 $4,300 5 Annual Maintenance & Protection; new roof--part 2 $4,300 6 Annual Maintenance & Protection; gutters $3,300 7 Annual Maintenance & Protection; interior paint $3,300 8 Annual Maintenance & Protection; other interior refurbishments $3,800 9 Annual Maintenance & Protection; bathroom cabinet upgrades $3,800 10 Annual Maintenance & Protection; exterior painting and $3,300 Annual Maintenance & Protection Expenses * Item Purpose Expense lso.M2a�,5 6 ud e :�:. �.. � e:f]AdrN ' 41-It�-,-��'�,; ay.F�o_-•.,�:E.:gAlwa$i` 1'nss•>rka ce ' 'ti^`= .re..r Y^r n`=•� r.r...�S;c?'rK�-.• p ^�y ?Av �M4. i i H® ©r , Fepa oe � ' • . xQkitn i . Ma ZD'rbj a F: a -57i o•o Alarm Service protection $300 HVAC Maintenance maintenance $150 Summer Caretaking protection $350 $2,300 * As a member of an HOA, certain items of the annual HOA budget relate to the objectives of the Mills Act contract. Ex■enses noted as "HOA" dis■la an owner's •ro rata share of such ex■enses. One-off Projects Year Item Purpose cost 1 install storm drain in courtyard protection $400 2 resurface courtyard concrete decking; seal cracks restoration $2,000 3 remove stucco inside patio; insulate and restucco restoration $1,000 4 new roof--part 1 protection $2,000 5 new roof--part 2 protection $2,000 6 gutters protection $1,000 7 interior paint restoration $1,000 8 other interior refurbishments restoration $1,500 9 bathroom cabinet upgrades restoration $1,500 10 exterior saintins and refurbishment non HOA •rotection 1 000 Recording Requested by: ) When Recorded Mail to: ) CITY OF PALM DESERT ) 73-510 Fred Waring Drive ) Palm Desert, CA 92260 ) Attention: Cultural Resources ) Administrator ) (Space above for Recorder's Office) HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT") between THE CITY OF PALM DESERT a municipal corporation and Mary M. Cobb and William S. Cobb Owner(s) of the property located at 72-457 El Paseo #1216, Palm Desert Ca 92260 APN: 640-210-016-2 1 HISTORIC PROPERTY PRESERVATION AGREEMENT ("MILLS ACT CONTRACT or Agreement") This agreement is made this , by and between the City of Palm Desert, a municipal corporation ("City") and Mary M. Cobb and William S. Cobb ("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 72-457 El Paseo Drive, #1216 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: 2 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 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: 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. 6. Periodic Examinations. Upon reasonable advance notice, Owner shall allow reasonable periodic examinations of the interior and exterior of the Historic 4 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 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 5 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. 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 6 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: Mary M. Cobb and William S. Cobb 72-457 El Paseo #1216, 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. 7 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 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. 8 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. 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. 9 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written. Dated: CITY OF PALM DESERT By ATTESTED TO: By Dated: Owner Owner APPROVED AS TO FORM City Attorney 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 California } SS. County of Riverside } On , 2017 , 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 "A" Legal Description Order No. 210-1325936-10 Exhibit "A" Parcel One: All of Lot 32 of Tract No.2774,in the City of Palm Desert,County of Riverside, State of California,as recorded in Book 50,Page(s) 24 and 25 of Maps,Records of Riverside County,California. Parcel Two: An undivided one-sixteenth(1/16)interest in and to Lot 34 of said Tract No.2774 for recreation purposes and the facilities therefor. Excepting from said Lot 34 the portion thereof particularly described as follows: Beginning at the Northwesterly corner of Lot 30 in said Tract 2774;Thence South 18° 08' 55"West, along the Westerly line of said Lot 30 a distance of 71.50 feet to the Southwesterly corner of said lot; Thence North 71° 5' 05" West, along the Northwesterly extension of the Southerly line of said Lot 30,a distance of 4.50 feet; Thence North 18° 08' 55"East,parallel with the Westerly line of said Lot 30,a distance of 71.50 feet;Thence South 71°51'05"East 4.50 feet to the point of beginning. Parcel Three: An undivided non-exclusive right for ingress and egress over an access easement over Lots 33 and 34 of said Tract 2774,as shown on the recorded map of said tract, said right being appurtenant to the land described as Parcel One. Reserving to grantor, its successors and assigns,a non-exclusive easement over the Westerly portions of Lots 33 and 34 of said Tract 2774 varying from 20 to 30 feet in width for ingress and egress for the benefit of and being appurtenant to land adjoined on the West. 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. Exhibit "C" Photos — — --= • _ r 1. , . i. ., .„ . , i . li .L., . ( .4. ) . - . ... - . . .. . . ,..._„. .-- $.. *p : •J.-!. -..- ' .4 .. . .4 ? .,. • - •-• •li .. :-- I . 10 .41 . . ... ' '''t i• • 1 :- ' -- ....,...........2. i .,. •. , J , i . 4 .. . - Ir - - ' '1-,-..' '4 -..---- • ... ., _ ...-; . i - •'' • ..e. , .!'If..t -•. . k•r. ,. .u.,- / .;," -... ... - ....... 0.....4 -: ' :' ! • 4'Te..41 '';• ;, kial. ...x $01. • A9Mi _ .. •I'' ....9. .. •. • r ' .7- . • .. 1[.SANDPIPER -""'"'"' ,-.-- .,......_ . . - - 4• i _.-- " .'/, as -_- ",- -• "•:.4 - '• — , r• • 4 2`,:t" 1 . 4y..i.-f - .... ' • f . .4)7., t.. ,...., r , .. , .• -..., . •,. ..-i *.• , ...,, . „ f ' -4. 4... . ,-* 4 ...„... ,.....,.. , . ,....., ,.. ,,•,...,, ) ..... , st.t • . .,:;..! ,. ..,-- ... -. • . t .-. . . . _f, •-,... . . ..*;,.,.., . . .'A ' • PA ,: .1141- . .-• , ,,. - .....• L.- . 1 'A .• ... S.N . . .... ' . .... . 1r iH! 1 . . . '- ,.•1 , ': , • . ' 7.'• ,.. 1.it. ......„_,.._., ., , •, .. . - . ..,_ i‘ - . _. . ,_•,...: __ . ...„:-.. .. ,, . „..,,,.,..._ _ . v-.. ,1!.... ... • , . _.._ ., ., . .. .•.. ,,. 1 _ . • ,L, _. .. „ , , . 1216 SANDPIPER i lit.6..•.'''' : '''', ... ' . r...-:. ' 4..r. ..•-• . . . _._...c Exhibit "D" 10 Year Property Improvement Plan 1216 Sandpiper 10-Year Property Improvement Plan Year Proposed Project Estimated Cost 1 HVAC & General Maintenance, Bedroom Carpet $2,230 2 HVAC & General Maintenance, Patio Door Replacement $4,430 3 HVAC &General Maintenance, Patio Door Replacement $4,430 4 HVAC & General Maintenance, Interior Painting $2,130 5 General Maintenance, HVAC Replacement, $2,150 6 HVAC & General Maintenance, Tile Replacement $2,530 7 HVAC & General Maintenance, Patio Landscape $2,230 8 HVAC & General Maintenance, Interior Door Replacement $2,230 9 HVAC &General Maintenance, Patio Landscape $2,230 10 HVAC & General Maintenance, Hall Bathroom Cabinets $2,630 $27,220