HomeMy WebLinkAbout2/21/2007 - STAFF REPORTS - 2.I. 4�
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CITY COUNCIL STAFF REPORT
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DATE: February 21, 2007 CONSENT AGENDA
SUBJECT: Mills Act Historic Site Contract — 875 Chino Canyon Road; The Hamrick
House
FROM: David H. Ready, City Manager
BY: Planning Services
SUMMARY
This action would engage the City of Palm Springs into a standard Mills Act Agreement
with Mr. Mark Puopolo, owner of 875 Chino Canyon Road, ("The Hamrick House"). The
intent of this contract is to require maintenance and preservation of this Class 1 historic
site in exchange for possible property tax relief as calculated by the County of
Riverside.
RECOMMENDATION:
Adopt Minute Order No. , and direct staff to execute the Mills Act Agreement
between The City of Palm Springs and Mr. Mark Puopolo and record said agreement
with the Recorder of Records for the County of Riverside.
STAFF ANALYSIS:
On September 6, 2006, the City Council designated the property at 875 Chino Canyon
Road a Class 1 Historic Site.
On January 9, 2007, the Historic Site Preservation Board voted unanimously to
recommend to City Council that it execute the Mills Act Contract between the City of
Palm Springs and Mr. Mark Puopolo, owner of 875 Chino Canyon Road.
Pursuant with California Government Code Section 50280 — 50290 upon the application
of an owner of any qualified historic property, the legislative body of a city may contract
with the owner or agent to restrict the use of the property to carry out the purposes and
goals of historic preservation of the property. Such a contract is commonly referred to
as a "Mills Act Agreement" and it provides for possible alternative property tax rate
calculations in exchange for specific and ongoing preservation and maintenance of the
ITEM NO.
City Council Staff Report
February 21, 2007 - Page 2
Mills Act W 875 Chino Canyon Road
property, specifically its historically significant elements and characteristics.
The HSPB staff report dated January 9, 2007 is attached which provides background
and explanation of the Mills Act Agreement for this particular case.
FISCAL IMPACT: IFinanre Director Review:
There is no known fiscal impact upon the city as a result of this recommended action.
rwing, AIC Thomas J. WII n
". wing,
f Plann' g ervices Assistant City�anager
David H. Ready, City g'er
Attachments:
HSPB minutes of January 9, 2007
HSPB staff report dated January 9, 2007
Mills Act Contract between City of Palm Springs and Mr. Mark Puopolo, Owner
Draft Minute Order
MINUTE ORDER NO.
APPROVING CONTRACT # A MILLS
ACT HISTORIC PROPERTY AGREEMENT
BETWEEN THE CITY OF PALM SPRINGS,
CALIFORNIA AND MR. MARK PUOPOLO,
OWNER OF 875 CHINO CANYON ROAD.
I, James Thompson, City Clerk of the City of Palm Springs, hereby certify that
this Minute Order Approving Contract # , a Mills Act Historic Property
Agreement between the City of Palm Springs and Mr. Mark Puopolo, owner of
875 Chino Canyon Road, was adopted by the City Council of the City of Palm
Springs, California, in a meeting thereof held on the day of
, 2005.
James Thompson, City Clerk
CITY OF PALM SPRINGS
HISTORIC SITE PRESERVATION BOARD MEETING
Minutes of Meeting -Tuesday, January 9, 2007
Large Conference Room, City Hall, 3200 East Tahquitz Canyon Way
Palm Springs, California 92262
FY 2006-2007
Present Present Excused Absences
BOARD MEMBERS This Meeting Year-to-Date To-Date
Sidney Williams, Chairperson X 8 0
Jade Nelson, Vice Chair X 6 2
James Hayton X 7 1
John Williams 0 7 1
Harold `Bud" Riley X 8 0
Brian Strahl X 6 0
STAFF PRESENT:
Craig Ewing, Director of Planning Loretta Moffett, Administrative Assistant
Ken Lyon, Associate Planner
1. The HSPB regularly scheduled meeting was called to order at 8:17 a.m. on January 9, 2007 by
Chair Sidney Williams.
2, ROLL CALL: Present: S. Williams, J. Nelson, B. Riley, B. Strahl, J. Hayton
Absent: John Williams
3. REPORT OF POSTING OF AGENDA: This Agenda was available and posted in accordance with state
and local procedures for public access at the City Hall exterior bulletin board and the Department of Planning Services
counter by 4:00 p.m.Thursday,January 4,2007.
NOTE: Audio Cassettes and DVDs of HSPB Meetings are available for review. Cassettes will be kept
for six months only. DVDs of the meetings will be kept indefinitely. Minutes format is more action related
than verbatim except where special interest or special meetings are involved.
4. APPROVAL OF MINUTES: December 12, 2006
M/S/C (Riley/Hayton) moved that the December 12, 2006 Minutes be approved as
presented. (6 Yes, 0 No, 1 Absent, 0 Abstentions)
5. PUBLIC COMMENTS: is minutes)
Michael Stern, Palm Springs, read from a statement in support of designating the former Santa Fe
Federal Bank building at 300 South Palm Canyon Drive to a Class 1 Historic Site stating that it is
"one of the great buildings in Palm Springs and should be protected." (copy of read statement
attached)
Dana Stewart, Palm Springs, spoke about the condition of downtown Palm Springs because of
too many development projects stating that "this town is getting bulldozed to death."
Robert Imber, Palm Springs, read from a statement in support of the former Santa Fe Federal
Bank building at 300 South Palm Canyon Drive being nominated for designation to a Class 1
Historic Site and "urged the Board to defend and protect this corner." (copy of read statement
attached)
Historic Site Preservation Board Page 2 of 6
Minutes from the January 9,2007 Meeting
Peter Moru=i, Chair of Palm Springs Modern Committee, stated that ModCom and members
have tremendous interest in this important property and pointed out from the displayed drawings
how the building at 300 South Palm Canyon Drive will be smothered by this inappropriate design.
He urged the HSPB to carefully review this design and encourage Wessman Development to find
a way to develop this property in a way that is respectful to the existing building and does not
destroy the setting and the original design that is so important to Palm Springs.
Gary Johns, Palm Springs, spoke in behalf of protecting the 300 South Palm Canyon Drive
building and does not want to see anything "saddled" around it. This block of Palm Canyon has
three buildings important to Palm Springs which could be marketed in a "walking tour" because
many tourists visit Palm Springs seeking the architectural significance of the City.
Arthur Keller, Palm Springs resident, stated that sometimes a building, or other site, is so worthy
and significant that it should be protected. What is being proposed does change and compromise
the context and he urged the HSPB to protect the building at 300 South Palm Canyon Drive.
Roxann Ploss, Palm Springs resident for 37 years, stated that there is too much being
crammed into downtown Palm Springs and that 4,300 people signed petitions in the heat of
summer saying they wanted height guidelines for downtown. The Downtown Guidelines, at this
moment, have not been approved, so to use those Guidelines to build what is being proposed for
300 Palm Canyon Drive is not appropriate.
Board member James Hayton asked what the HSPB scope is for this project and what action the
Board can take today.
Staff explained that the materials presented today are part of a Pre-application by Wessman
Development whereby staff and various boards and committees can provide constructive input to
help the applicant understand the nature of where the City's various departments, divisions, and
board are coming from. A typical Pre-application is reviewed by ADA, Fire, Planning, Engineering,
Building, etc. to give the applicant a sense of the types of things they might be confronted with
when the actual Application is submitted. These materials were voluntarily submitted by
Wessman Development and presented to HSPB for comments, ideas, etc. how to make this
project a good one. There is no action that boards or commissions take on Pre-applications.
Board member Jade Nelson asked if HSPB will be taking action on the existing building at 300
South Palm Canyon Drive if the Board chooses to do so?
Staff advised that it is not on the Agenda today for action. The nomination process started at
the December meeting, and staff has been working with the P.S. Historical Society to pull together
historical information and to substantiate each one of those six properties. There is not enough
information to bring to the Board on any of those six as yet.
Frank Tysen, Palm Springs businessman, noted there is tremendous local support for
maintaining the historic and architectural quality of Palm Springs. The design for 300 South Palm
Canyon Drive comes from another project that is not selling — do not destroy this significant
building. He urged the Board to take a strong position in protecting this building.
PUBLIC COMMENTS CLOSED.
6. REPORT FROM THE CHAIR: Chairperson Sidney Williams stated that it takes a lot of work to
write staff reports for all six buildings that were nominated for Class 1 Designation and asked
Historic Site Preservation Board Page 3 of 6
Minutes from the January 9,2007 Meeting
Board members to assist in any way possible - provide materials, photos, background, and
some historic writing.
Staff reported that assistance is welcomed for research, defining the characteristics of each
property, etc. Staff can be contacted after this meeting, by email to Ken.Lyon@palmsprings-
ca.gov, or by telephone 760-323-8245. Information has been provided by Sidney Williams, PS
ModCom, and others -- more is welcome.
7. PUBLIC HEARINGS: NONE
8. CERTIFICATE OF APPROVAL REQUESTS: NONE
9. OTHER BUSINESS:
A. Hamrick House— Mills Act Contract, 875 West Chino Canyon Road — Recommendations to
City Council. Staff reported that the Hamrick House owner has applied for a Mills Act Contract
with the City. This Agreement is a mechanism which the City participates with property owners in
preservation efforts. In exchange, the property owners, through the County Assessor's office,
receive a recalculation of their property tax rate for a potential tax reduction. These are ten-year
rolling contracts with the basic incentive for the owners to keep their properties in good historic
condition and receive a tax reduction for doing so. This application will eventually be heard by the
City Council. The Board action today is to move to recommend that the Council enter into this
Mills Act Agreement.
M/S/C (J.Nelson/B.Riley) moved to recommend to Council that 875 West Chino Canyon
Road, Historic Class 1 Site #50, be approved by Council for a Mills Act Contract with the
City of Palm Springs. (5 Yes, 0 No, 1 Absent, O Abstentions)
11. B. Pre-App 06-011 —(taken out of order) -Wessman Development proposing "Baristo Lofts'
residential lofts over existing parking (new subterranean parking for residents only) and over
newly constructed retail building on a project site area of 29,620 s.f. at 300 South Palm Canyon
Drive, (formerly known as Santa Fe Federal Bank building)Zone CBD, Section 15,
Staff reported that this is a voluntary presentation by applicant. Normally a Pre-app does not
come before the Board, but because this project has a significant building on it, applicant was
invited to present this for Board input and comments. Please note that the project was delayed in
coming before the Board and this project has since been presented as an Application to Planning
Services.
John Wessman, Wessman Development, explained the drawings and talked about the property
from date of purchase to current development design being presented today. The project has
been reviewed by the Architectural Advisory Committee. They did not like the vertical look, so it
has been re-designed with horizontal lines. They also wanted to see the new building a foot
higher to float over the existing building. Materials in the new project would be similar to those
used in the 50's and 60's—not exactly the same so as not to copy the existing building. There will
be 25 residential units, 4,200 s.f. of retail on level one on the Palm Canyon Drive side, and the
existing building would become a restaurant.
Board member James Hayton commented that "site" is the key to this proposal and asked how
this "historic gem" is improved by having outlying buildings and appendages added?
Mr. Wessman stated that the site is probably not being improved by adding another building to it,
Historic Site Preservation Board Page 4 of 6
Minutes from the January 9,2007 Meeting
but when Mr. Williams designed the building for Santa Fe Federal Savings & Loan, they paid
$200,000 for the site. Today the site would cost $3.5 million, possibly $4 million. The highest
and best use would be to tear the building down, but the building is significant and the newly
designed project is trying to save it and still complement the project. This building will continue to
be significant and a show piece— nothing on this existing building is being touched and everything
that can be done is being done to preserve it within this project.
Board member Brian Strahl asked if the Board will review this again as an Application? The
current design is overwhelming the existing building. The new building looks good, but is over-
scaled for the site and the existing building.
Director Ewing explained that the site (at present) has no historic status and is in the process of
potential designation which will be a Council decision. Once Council makes a decision, staff will
know the answer. If Council does not designate, there will be no further review by this Board.
Board member Jade Nelson pointed out several items on the drawings and commented that the
new project does not respect the existing building. He provided photos of the original interior and
exterior that showed how important and significant the site and landscaping is to the original
building. The building needs to stand alone and breathe— it is important to the architect, E.
Stewart Williams and to the City of Palm Springs.
Board member Bud Riley commended Mr. Wessman in bringing this forward and deferred further
comment.
11. A. Review of Draft Ordinance Revisions
Staff explained that its report was supplied to the members to confirm Board input from the Study
Session at the November meeting during which recommendations for revisions were reviewed
and worked on for the Municipal Historic Preservation Ordinance 8.05. The five issues were
captured in the memo —staff briefly discussed. Staff asked for: (1) Does the Board concur with
the information in this memo?; (2) Is this correct?; (3) Is the Board comfortable with what is being
proposed?; If so, then it will be presented to a City Council session as a non-action item so the
Board can receive information from Council members.
Board member Brian Strahl felt the Board should have more time to review the contents of the
memo before making a decision. He feels that the Board needs to take public comments and
testimony before making recommendations to Council.
Board member Bud Riley talked about"historic districts" and wants that to go to Council.
Summary:
Item 1 — Changes to 8.05.125 definition of Class 3 - Board agreed with the written text but did not
want every little "like kind" item to come before them and stated that staff is capable of making
those types of approvals.
Item 2-- Penalties for Violations— Board agreed with written text with concerns that were
discussed relative to willful demolition.
Item 3— Modifications to Plague Program - Board agreed with written text with concerns that
were discussed relative to who initiates the designation, obtaining grants, donations, request
increased budget, etc. to pay for the plaques. National Trust and ModCom were suggested as
plaquing sources, and there may be other organizations that could be approached. Mills Act
could open a source because applicant will be receiving benefits. Importance of property for
Historic Site Preservation Board Page 5 of 6
Minutes from the January 9,2007 Meeting
public information should be considered.
Item 4— Provisions for site ins2ections-by Board members - Board agreed with written text
provided by staff.
Item 5-- Revisions to the public noticing requirements — Board agreed with written text provided
by staff for the change to 400 feet radius of public noticing to be consistent with all other public
hearing notices.
Staff indicated this would be prepared for submission to City Council with the appropriate Board
notes and concerns discussed and staff will report back with the Council's concerns and issues.
10. COMMITTEE REPORTS AND SPECIAL PROJECTS:
A. Media Outreach - John Williams
John Williams was not in attendance. Staff reported that Rick, John, Jim, and Ken will meet to
work out the details of the Channel 17 photo captions.
B. Historic Site Plaques Update - Bud Riley
Will write policy what a plaque should and can say and bring back to the Board. Will do an
inventory of where they are, text, photos, etc. Brian Strahl volunteered to help-
C. HSPB Brochure Proiect- Jade Nelson
Still waiting for staff to complete the draft and to meet with staff to go over step-by-step. Staff
reported that edits are concluded.
D. P.S. Preservation Foundation - Jade Nelson
The Preservation Foundation has shared photos for buildings that have been nominated for
the Class 1 designation. Those will be given to staff to include in the packets-
E. P.S. Historical Society-James Hayton
Mr. Hayton did not renew membership. Chairperson Sidney Williams will report in future.
F. P.S. Modern Committee - John Williams
John Williams not in attendance. Chairperson Sidney Williams reported that Modernism
Week starts February 16 and runs for 11 days. Palm Springs Modern Committee, Palm
Springs Preservation Foundation, Architecture & Design Counsel, and Palm Springs Historical
Society are working together for the events. Web site is www.modernismweek.com and all
the activities will be on that website. Among activities is the Modernism Show at the
Convention Center opening February 16 (brochures passed around).
G. Architecture & Design Council - Sidney Williams
The PS art Museum will have four events during Modernism week (brochures passed
around), including Jade Chang lecture February 20, west coast editor of Metropolis magazine,
"Sketches of Frank Gehry" film and reception February 22, "Design as Art" Symposium and
reception February 24. More information on web site www.psmuseum.org
11. STAFF & OTHER REPORTS:
Staff received correspondence from Chatten-Brown & Carsens, attorneys representing PS
ModCom, regarding their scoping comments for the Spa Resort Casino Master Plan project.
There is a Notice of Intent to prepare an environmental impact statement for a large
redevelopment project that the Agua Caliente Band of Cahuilla Indians are proposing at the
Spa Resort & Casino. A copy is in the Board packet. The City also received a letter dated
Histonc Site Preservation Board Page 6 of 6
Minutes from the January 9,2007 Meeting
January 9 from William Kopelk, President of Palm Springs Preservation Foundation
expressing concerns "about the density and concept mass" of the Wessman Development project
for 300 South Palm Canyon Drive (Santa Fe Federal Building). A copy will be distributed to the
Board. Information was provided for workshops being presented in Gilroy California. There was
a project in the Oasis Commercial Building before the AAC January 8 regarding the "Okum"
Restaurant. This was the second time before AAC and it was again sent back to the applicant for
re-study. It is a high-end Japanese restaurant, would be taking over the space formerly occupied
by the Ale House, and creates an enclosure around the northeast side of the building. The AAC
felt that if a building is going to have street-side dining, it should be an engaging experience.
The applicant was proposing a walled-off dining area. AAC asked that the design allow the
existing openness to continue to be part of the design.
12. BOARD MEMBER COMMENTS.
Board member Brian Strahl expressed concern that a recent pamphlet included a Board
member's name and RSPB title. His concern was the appearance that it was sponsored and put
out by RSPB, when the Board did not. HSPB members are involved in various organizations and
it was a Board consensus that members act as private citizens and individually during their
activities in other organizations.
13. ADJOURNMENT:
There being no further business it was moved and seconded to adjourn the meeting at 10:25 a.m.
The next regularly scheduled meeting of the Historic Site Preservation Board will be Tuesday,
February 13, 2007 at 8:15 a.m. in the Large Conference Room.
Respectfully submitted,
Ken Lyon, Associate Planner
Attachments:
1. Statement from Michael Stern
2. Statement from Robert Imber
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Historic Site Preservation Board
Staff Report
Date: January 9, 2007
Case No.: HSPB-50
Application Type: Mills Act Agreement
Location: 875 Chino Canyon Road
Applicant: Mark Puopolo
From: Ken Lyon, Associate Planner
PROJECT DESCRIPTION
An application by Mark Puopolo, owner of 875 Chino Canyon Road, `The Hamrick
House" to enter into a Mills Act Agreement with the City of Palm Springs.
RECOMMENDATION
That the Historic Site Preservation Board recommend that the City Council execute a
Mills Act Agreement between the City and Mr. Mark Puopolo, owner of 875 Chino
Canyon Road, 'The Hamrick House".
PRIOR ACTIONS TAKEN ON THE PROJECT
On September 6, 2006, the City Council designated the property at 875 Chino Canyon
Road a Class 1 Historic Site.
BACKGROUND AND SETTING
Pursuant with California Government Code Section 50280 — 50290 upon the application
of an owner of any qualified historic property, the legislative body of a city may contract
with the owner or agent to restrict the use of the property to carry out the purposes and
goals of historic preservation of the property. Such a contract is commonly referred to
Historic Site Preservation Board Staff Report
Case
Date
as a "Mills Act Agreement' and it provides for possible alternative property tax rate
calculations in exchange for specific and ongoing preservation and maintenance of the
property, specifically its historically significant elements and characteristics.
DESCRIPTION AND ANALYSIS
The Mills Act is state sponsored legislation granting local governments the authority to
directly participate in a historic preservation program. It is designed to provide private
property owners with an economic incentive, via property tax relief, to actively
participate in the restoration of their historic properties.
Property owners may qualify for property tax relief if they pledge to restore and maintain
the historical and architectural character of their properties for at least a ten-year period.
A formal agreement known as a Mills Act contract is executed between the local
government and the property owner for a minimum ten-year term. Contracts are
automatically renewed each year and are transferred to new owners when the property
is sold. Property owners agree to preserve and maintain the property in accordance
with specific historic preservation standards and conditions as identified in the contract.
Local authorities may impose penalties for breach of contract or failure to protect the
historic property. The contract is binding to all owners during the contract period.
The Mills Act contract has the effect of freezing the base value of the property. There is
little effect over the first few years but as the property is restored over a longer period of
time, the value increases and the property tax savings may increase over time. The
property owners have consulted with their tax advisors and determined that entering
into a Mills Act contract with the City would be mutually beneficial for both parties. The
owners also understand that entering into the Mills Act contract only represents the
potential for property tax savings and is not a guarantee.
The current owners of the subject property have already invested a significant amount
of money to restore and preserve the property in its original state and will continue to do
so. The potential property tax savings provided by the Mills Act contract will assist the
owners in defraying the casts associated with maintaining the property.
REQUIRED FINDINGS
Mills Act Agreements may only be executed on qualified historic properties.
Pursuant California Government Code 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).
(b) Listed in any state, city, county, or city and county official register of historical
or architecturally significant sites, places, or landmarks.
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Historic Site Preservation Board Staff Report
Case
Date
The property at 875 Chino Canyon Road meets this criteria in that it is was designated a
Class 1 historic site by the City Council of the City of Palm Springs.
Following review and recommendation by the Board, the contract will be forwarded to
the City Council for action.
ENVIRONMENTAL ASSESSMENT
This project is exempt from environmental review per Section 15331 of the California
Environmental Quality Act (CEQA) Guidelines.
ten Lyon
Associate Planner
gr i . Ewin , P ICP
Dir6dor of Plalngng Services
ATTACHMENTS
1. Draft Mills Act Agreement
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FREE RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:
City of Palm Springs
3200 East Tahquitz Canyon Way
Palm Springs, CA 92263-2743
Attn: City Clerk
HISTORIC PROPERTY PRESERVATION AGREEMENT
This Historic Property Preservation Agreement ("Agreement") is made and entered into
this _ day of , 20� (the "Effective Date"), by and between the
CITY OF PALM SPRINGS, a municipal corporation ("City"), ("Owner").
RECITALS:
A. California Government Code Sections 50280, et seq., authorizes cities to enter
into contracts with the owners of qualified historical property to provide for the
use, maintenance and restoration of such historical property so as to retain its
characteristics as property of historical significance-
B. Owner possesses fee title in and to that certain historic dwelling, commonly
known as The Hamrick House, together with associated structures and
improvements and real property, all generally located at the street address 875
Chino Canyon Road, Palm Springs, California (collectively, the 'Property"). A
legal description of the Property is attached hereto as Exhibit A and is
incorporated herein by this reference.
C. On September 6, 2006 (the "Approval Date"), the City Council of the City of Palm
Springs ("Council') adopted Resolution No. 21695 thereby declaring and
designating the Property as a historic landmark pursuant to the terms and
provisions of Chapter 8.05 of the Palm Springs Municipal Code.
D. City and Owner, for their mutual benefit, now desire to enter into this Agreement
both to protect and preserve the characteristics of historical significance of the
Property, in accordance with Government Code Sections 50280 through 50290,
as amended from time to time, and to qualify the Property for an assessment of
valuation pursuant to Revenue and Taxation Code Section 439.2.
AGREEMENT
NOW, THEREFORE, City and Owner, in consideration of the 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 the Effective Date, and shall remain in effect for a term often (10)
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years thereafter. Each year upon the anniversary of the Effective Date, unless
this Agreement is terminated in accordance with Section 2 below, such initial
term will automatically be extended by one (1) year.
2. Non-Renewal and Cancellation. Neither City nor Owner may terminate this
Agreement except in accordance with this Section 2. Termination shall be
effected either by (a) an election not to renew the Agreement, in which case
termination shall be effective upon the expiration of the remaining term of the
Agreement, as specified in Section 2.1 below, or (b) cancellation of the
Agreement, which shall effect an immediate termination of the Agreement upon
the happening of all events specified in Sections 22 and 5.
2.1 Each year on the anniversary of the Effective Date (hereinafter referred to
as the "Renewal Date"), an additional one (1) year shall automatically be
added to the term of this Agreement unless timely written notice of non-
renewal is served by the non-renewing party. Notice of non-renewal shall
be effective only if served by Owner at least ninety (90) days prior to the
next upcoming annual Renewal Date, or by City at least 60 days prior to
the next upcoming Renewal Date. City may elect not to renew this
Agreement for the reasons and in accordance with the procedures set
forth in Section 5 below. Owner may make a written protest of City's notice
of non-renewal in accordance with Section 5 below. The party giving
notice of non-renewal may, at any time prior to the annual Renewal Date
of the Agreement, withdraw its notice of non-renewal by giving a notice of
revocation to the other party. If Owner or City serves timely notice of non-
renewal in any year, the Agreement shall remain in effect for the balance
of the term then remaining at the time the notice of non-renewal was
given.
2.2 City may cancel this Agreement at any time only for the reasons and in
accordance with the notice and hearing procedure set forth in Section 5
below. City may, at any time prior to termination of the Agreement,
withdraw its notice of cancellation by giving a notice of revocation to
Owner.
3. Maintenance Standards for the Property- During the term of this Agreement, the
Property shall be subject to the following conditions, requirements, and
restrictions:
3.1 Owner shall preserve, maintain, and, when necessary, restore and
rehabilitate the Property, as necessary to retain its historical significance
including its "Character Defining Features" (as hereinafter defined), in
substantial conformance with the (i) the rules and regulations of the Office
of Historic Preservation of the California Department of Parks and
Recreation, (ii) the United States Secretary of the Interior's Standards for
Rehabilitation and (iii) the State Historical Building Code, as the same may
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be amended, restated, or replaced from time to time (the "Preservation
Standards"). "Character Defining Features" shall include, but not be
limited to, the general architectural form, style, materials, design, scale,
proportions, organization of windows, doors, and other openings, details,
mass, roof line, porch and all other aspects of the appearance of the
exterior of the Property. Owner may perform routine maintenance and
repair of the Property, but may not materially alter the Property without the
prior approval of City which approval shall not be unreasonably withheld or
delayed. "Material Alternations" shall include, but not be limited to,
demolition of any portion of the Property, exterior door or window
replacement, major landscaping projects and all other similar exterior
alterations of the Property, regardless of whether a building permit is
required for such alterations. Before performing any work requiring the
approval of City, Owner shall give at least sixty (60) days' written notice to
City, describing the work to be done; if City shall not have acted within
sixty (60) days thereafter to disapprove the work, or to approve the work
subject to specified conditions, the work shall be deemed approved as
submitted. In all events, City's Director of Planning Services shall be
notified of all changes to the Property which Owner reasonably determines
to be significant, prior to implementation of the changes.
3.2 Covenants Regarding Maintenance. The Owner shall maintain the
Property, Site and all improvements thereon, including lighting and
signage, in good condition, free of debris, waste, and graffiti, and in
compliance with all applicable provisions of the Municipal Code. Owner
shall maintain the Property and landscaping on the Property Site in
accordance with the "Maintenance Standards" (as hereinafter defined).
Such Maintenance Standards shall apply to all buildings, signage, lighting,
landscaping, irrigation of landscaping, architectural elements identifying
the Property and any and all other improvements on the Property Site
(collectively the "Improvements"). To accomplish the maintenance, Owner
shall either staff or contract with and hire licensed and qualified personnel
to perform the maintenance work, including the provision of labor,
equipment, materials, support facilities, and any and all other items
necessary to comply with the requirements of this Agreement.
Owner and its maintenance staff, contractor, or subcontractors shall
comply with the following standards (the "Maintenance Standards")-
a, The Improvements shall be maintained in conformance and in
compliance with the Preservation Standards, and reasonable
commercial development maintenance standards for similar project,
including but not limited to painting and cleaning of all exterior
surfaces and other exterior facades comprising all private
improvement sand public improvements to the curb-line. The
Improvements shall be maintained in good condition and in
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accordance with the custom and practice generally applicable to
comparable historic properties located in Palm Springs, California-
b. Landscape maintenance shall include, but not be limited to:
watering/irrigation; fertilization; mowing; edging; trimming of grass;
tree and shrub pruning, trimming and shaping of trees and shrubs
to maintain a healthy, natural appearance and safe road conditions
and visibility, and irrigation coverage; replacement, as needed, of
all plant materials; control of weeds in all planters, shrubs, lawns,
groundcovers, or other planted areas; and staking for support of
trees.
C. Clean-up maintenance shall include, but not be limited to:
maintenance of all sidewalks, paths, and other paved areas in
clean and weed-free condition; maintenance of all such areas clear
of dirt, mud, trash, debris, or other matter which is unsafe or
unsightly; removal of all trash, litter, and other debris from
improvements and landscaping prior to mowing; clearance and
cleaning of all areas maintained prior to the end of the day on which
the maintenance operations are performed to ensure that all
cutting, weeds, leaves, and other debris are property disposed of.
Upon reasonable advance notice, Owner shall allow reasonable periodic
examinations of the interior and exterior of the Property by City, County
Assessor, the California Department of Parks and Recreation, and the
State Board of Equalization, as may be necessary to determine Owner's
compliance with the terms and provisions of this Agreement.
3.3 Owner shall landscape the Property so as to permit a view corridor near
the entrance to the Property, enabling the general public to see the entry
to the Property from the public way adjacent to the Property, and an
historical marker briefly documenting the site for public view shall be
maintained adjacent to the public right-of-way near the entry within one (1)
year after the Completion Date. Such marker has been or shall be
provided by the City in City's standard form used for historical properties
as of the Effective Date (as to size, material, text, exact location and
method of installation), and in the event of its loss, theft, or destruction,
shall be replaced at Owner's sole cost and expense (provided, however,
that if the total cost and expense of creating and installing the marker shall
exceed $500, the excess shall be borne solely by City), and maintained at
Owner's sole cost and expense. City acknowledges and agrees that
Owner is maintaining the Property, and the marker and view corridor shall
be situated and limited so as to minimize public intrusion and afford Owner
all reasonable expectations of privacy.
4
3.4 Owner shall take reasonable steps to obtain and keep in force during the
term of this Agreement a policy or policies of insurance (or a reasonable
substitute therefore) providing replacement value coverage against
damage to the Property against all perils included within the classification
of fire, extended coverage, vandalism, malicious mischief and other
generally covered perils, but excluding earthquake, flood and other
matters either not generally available within the Palm Springs area, or not
generally offered in such a policy without requiring an additional premium.
Failure to maintain insurance or a reasonable substitute therefore shall be
grounds for termination of this Agreement pursuant to Section 5(a) below.
4. Provision of Information. Owner hereby agrees to furnish City with all reasonable
information requested by City which may be necessary or advisable to determine
compliance with the terms and provisions of this Agreement.
5. Non-Renewal and Cancellation.
(a) City may elect to provide notice of non-renewal of this Agreement in its
discretion consistent with the provisions of this Agreement and with
applicable law,.
(b) City, following notice in accordance with California Government Code
Section 50285 and a duly noticed public hearing before the Council, may
elect to cancel this Agreement only if the Council finds and determines
that (i) Owner, through its own willful or negligent acts, and subject to
Section 16 below, has failed to restore or rehabilitate the Property in
accordance with the Plans on or before the Completion Date, or (ii)
Owner, through its own willful or negligent acts, and subject to Section 16
below, has allowed the Property to deteriorate beyond the point that it no
longer meets the standards for a qualified historic property, and the
deterioration is serious and irreversible-
(c) Notwithstanding anything to the contrary herein, the Property shall be
deemed to meet the standards for a qualified historic property if it is in
compliance with the Plans and it is maintained in accordance with Section
3.2.
(d) If City determines to cancel or not to renew this Agreement as specified
above, it shall provide Owner with written notice of its intent to cancel or
not renew, and such notice must specify in detail the reasons for the
cancellation and/or non-renewal and the steps which Owner must take to
cure any such problems (unless such reasons are not susceptible of cure).
If City determines in its reasonable discretion that Owner has not cured
such problems within ninety (90) days of such notice (or if curing such
problems will reasonably take longer than ninety (90) days and Owner has
not commenced diligent efforts to cure such problems within ninety (90)
5
days), then City shall (i) with respect to a decision to cancel, notice and
hold a second public hearing before the Council to determine whether to
cancel this Agreement, or (ii) with respect to a decision not to renew,
provide Owner with written notice of its final decision not to renew this
Agreement. Notice of all hearings under this Agreement shall be given to
Owner directly pursuant to Section 11 below and published in accordance
with Government Code Section 6061.
(e) If City cancels (but not if City elects not to renew) this Agreement in
accordance with this Section 5, Owner shall pay a cancellation fee of
twelve and one-half percent (12'/z%) of the full value of the Historic
Property at the time of cancellation. The full value shall be determined by
the County Assessor without regard to any restriction on the Property
imposed pursuant to this Agreement. The cancellation fee shall be paid to
the County Auditor at such time and in such manner as the Auditor shall
prescribe. As an alternative to cancellation of this Agreement for breach of
any condition, City may (without limiting Owner's right to elect not to renew
this Agreement), but is not obligated to, bring any action in court
necessary to enforce the Agreement including, but not limited to, an action
for specific performance or injunction.
(f) Owner acknowledges that it may serve notice of its election not to renew
this Agreement, but that the Agreement will remain in place through the
existing term. Owner further acknowledges that it may not cancel this
Agreement for any reason.
6. No Compensation. Owner shall not receive any payment from City in
consideration of the obligations imposed under this Agreement other than costs
in excess of $500 for the historical marker. Owner and City acknowledge and
agree that the primary consideration to City for the execution of this Agreement is
the substantial benefit to the citizens of Palm Springs accruing from the
rehabilitation and maintenance of the Property, and the primary consideration to
Owner is the economic advantage that will accrue to Owner as a result of the
possible effect upon the assessed value of the Property of the restrictions on the
use and preservation of the Property imposed hereunder. However, Owner
acknowledges that it is not guaranteed to receive a reduction of property taxes as
a result of this agreement.
7. Condemnation. Upon the filing of an action in eminent domain by a public entity
for the taking of all or any portion of any interest in the Property, and a
determination by City that such action will frustrate the purpose of this
Agreement, then in such event this Agreement shall be canceled as to those
portions of the Property that are affected by the condemnation action (such that
the value shall be appraised for condemnation purposes as unencumbered by
the historic property restrictions set forth herein), and no fee shall be imposed on
Owner for cancellation in accordance with Government Code Section 50286. If
6
subsequent to the filing of an action in eminent domain, the proposed
condemnation is abandoned by the condemning agency as to all or a portion of
the Property, the restrictions on the use of the Property included in this
Agreement shall be automatically reinstated, the Property shall be deemed,
retroactive to the date of such abandonment, to have been subject to this
Agreement, and the terms of this Agreement shall be in full force and effect.
8. Destruction. Upon any damage to or destruction of the Property, Owner and City
shall proceed in accordance with this Section 8. In the event there is any damage
to or destruction of the Property, this Agreement shall not be deemed to require
Owner to rebuild, repair or restore the damaged portion, and Owner shall not be
held in default under this Agreement for its failure to do so, provided, however,
that this provision does not relieve Owner of any obligation to repair or otherwise
take action with respect to the Property to the extent required to do so by
applicable state and federal laws and regulations, if any, other than historical
preservation laws.
(a) Minor Insured Damage. In the event the Property or any portion thereof is
damaged by any casualty that is covered by the insurance maintained by
Owner, then Owner shall rebuild, repair and restore the damaged portion
thereof provided that (i) the amount of insurance proceeds available to
Owner equals or exceeds the cost of such rebuilding, restoration and
repair, and the total cost of repair is less than $250,000 (in the opinion of a
licensed architect, engineer or other qualified person selected by Owner
and approved by City in its reasonable discretion), (ii) such rebuilding,
restoration and repair can be completed within nine (9) months after the
work commences, in the opinion of a registered architect or engineer or
other qualified person selected by Owner and approved by City in its
reasonable discretion, (iii) City has not acted to cancel or not to renew this
Agreement on or before the date of commencement, and (iv) such
rebuilding, restoration or repair is then permitted to be done under
governmental laws, rules and regulations in existence as of the Approval
Date in such a manner as to return the damaged portion thereof to
substantially its condition immediately prior to the damage or destruction.
7o the extent that insurance proceeds must be applied to reduce any
indebtedness secured by a mortgage or deed of trust encumbering the
Property or any portion thereof, such proceeds, for the purposes of this
subsection, shall be deemed not available to Owner unless such
beneficiary permits Owner to use such proceeds for the rebuilding,
restoration and repair of the damaged portion thereof. If Owner is required
under this Section to rebuild, restore or repair the Property, such work
shall commence not later than one (1) year after receipt of the applicable
insurance proceeds, and Owner shall thereafter diligently proceed to
complete such work within eighteen (18) months after commencement;
provided, however, that so long as Owner shall be diligently proceeding
toward completion of the work, such commencement and completion
7
dates shall be extended by City's Director of Planning Services upon
Owner's request.
(b) Maior or Uninsured Damage. In the event the Property is damaged or
destroyed by any casualty to the extent that Owner is not obligated, under
subsection (a) above, to rebuild, repair or restore the damaged portion
thereof, then within sixty (60)days after either (i) a final determination that
damage is not an insured claim (or one (1) year after the date of damage,
whichever comes first), or (ii) Owner's receipt of insurance premiums
sufficient to rebuild (as determined under subsection (a) above), Owner
shall notify City of its election, at its option, either to (1) rebuild, restore
and repair the damaged portions thereof, in which case Owner's notice
shall specify the time period within which Owner estimates such repairs or
restoration can be completed; or (2) terminate this Agreement effective as
of the date the damage or destruction occurred. If Owner elects to rebuild,
restore or repair the Property under this Section, such work shall
commence not later than one (1) year after receipt of the applicable
insurance proceeds (or determination that the damage is not an insured
claim), and Owner shall thereafter diligently proceed to complete such
work within eighteen (18) months after commencement; provided,
however, that so long as Owner shall be diligently proceeding toward
completion of the work, such commencement and completion dates shall
be extended by City's Director of Planning Services upon Owner's
request.
(c) Termination. If Owner elects to terminate this Agreement as provided in
Section 8(b), no cancellation fee shall be required. Upon Owner's election
to terminate, the Property shall be reassessed retroactively, as of the
damage or destruction date(s) (but taking into account such damage or
destruction), in accordance with applicable property tax laws, as if the
Property was not subject to this Agreement following such damage or
destruction date(s).
9. Binding Effect of Agreement. Owner hereby subjects the Property to the
covenants, reservations, and restrictions set forth in this Agreement. City and
Owner hereby declare their specific intent that the covenants, reservations, and
restrictions set forth herein shall be deemed covenants running with the land and
shall pass to and be binding upon Owner's successors and assigns in title or
interest to the Historic Property. Each and every contract, deed or other
instrument hereinafter executed, covering or conveying the Property, or any
portion thereof, shall conclusively be held to have been executed, delivered, and
accepted subject to the covenants, reservations, and restrictions expressed in
this Agreement regardless of whether such covenants, reservations, and
restrictions are set forth in such contract, deed or other instrument.
8
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 Owner's legal interest in the Property is rendered less valuable
thereby. 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 historic characteristics and
significance of the Property for the benefit of the public and Owner.
10. Unenforceability. In the event a court of competent jurisdiction finds that this
Agreement does not constitute an enforceable restriction within the meaning of
the applicable provisions of the Government Code and the Revenue and
Taxation Code, except for an unenforceability arising from the cancellation or
non-renewal of this Agreement, for any tax year during the original term or any
renewal of this Agreement, then this Agreement shall be null and void and
without further effect, and the Property shall from such time be free from any
restriction whatsoever under this Agreement without any payment or further act
of the parties to the Agreement.
11, Notice. Any notice required to be given by the terms of this Agreement shall be
provided in writing and shall be mailed by certified mail, return receipt requested
or delivered by a recognized delivery or overnight courier service to the address
of the respective parties as specified below or at any other address as may be
later specified by the parties hereto by written notice given in accordance with
this Section 11. Deposit of notice in the mail, certified, return receipt requested
and postage prepaid, or receipt of delivery as specified above, shall be deemed
receipt of the notice.
To City: City of Palm Springs
3200 East Tahquitz Canyon Way
Palm Springs, California 92262
Attm City Manager
With a copy to: Woodruff, Spradlin & Smart
Attn: Douglas Holland, Esq.
To Owner:
12. General Provisions.
12.1 None of the terms, provisions or conditions of this Agreement shall be
deemed to create a partnership between the parties hereto and/or 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.
9
122 Owner agrees to and shall hold City and its elected officials, officers,
agents, and employees harmless from liability for damage or claims for
damage for personal injuries, including death, and claims for property
damage which may arise from the direct or indirect use or operations of
Owner or those of Owner's contractor, subcontractor, agent, employee or
other person acting on Owner's behalf which relates to the use, operation,
and maintenance of the Property. City agrees to and shall hold Owner and
Owner's officers, principals, agents, contractors, employees, heirs,
successors and assigns harmless from liability for damage or claims for
damage for personal injuries, including death, and claims for property
damage which may arise from the activities on the Property of City or
those of City's contractor, subcontractor, agent, employee or other person
acting on City's behalf which relates to City's activities on the Property.
12.3 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 hereto, their heirs, successors, legal representatives,
assigns and all persons acquiring any part or portion of the Property,
whether by operation of law or in any manner whatsoever.
12.4 In the event legal proceedings are brought by any party or parties to
enforce or restrain a violation of any of the covenants, reservations 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.
12.5 Subject to Section 10 above, 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 affected thereby.
12.6 This Agreement shall be construed and governed in accordance with the
laws of the State of California.
12.7 City shall cooperate with Owner to the extent necessary in providing the
County Assessor's Office with confirmation of and information regarding
this Agreement in connection with the qualification of the Property for the
initial assessment and any subsequent assessments of valuation of the
Property encumbered with restricted historical property status in
accordance with the California Revenue and Taxation Code.
12.8 This Agreement may be signed in one or more counterparts, each such
counterpart shall be considered as part of and the same document as all
other related counterparts.
10
12.9 This Agreement has been agreed to by the parties only after negotiations
between City and Owner, both of which were represented by counsel.
Accordingly, this Agreement shall not be construed as if it had been
prepared only by City or Owner, but rather as if both City and Owner had
prepared the same.
13. Recordation. No later than twenty (20) days after the parties execute and enter
into this Agreement, City shall cause this Agreement to be recorded in the office
of the County Recorder of the County of Riverside.
14. Notification of Contract. Owner shall provide written notice of the existence of this
Agreement to the Office of Historic Preservation within six (6) months after
execution of this Agreement.
15. Amendments. This Agreement may be amended, in whole or in part, only by a
written recorded instrument executed by the parties hereto.
16. Force Maieure. If the performance by Owner of any provision of this Agreement
is delayed or prevented by any act of God, strike, lockout, shortage of material or
labor, restriction by any governmental authority, civil riot, flood, and any other
cause not within the control of Owner, then the period for Owners performance
of the provision shall be automatically extended for the same time Owner is so
delayed or hindered.
11
IN WITNESS WHEREOF, City and Owner have executed this Agreement on the
day and year first written above.
CITY OF PALM SPRINGS,
a municipal corporation
Dated: By.-
APPROVED AS TO FORM: ATTEST:
City Attorney City Clerk
Dated: S �� By:
—",ra
Dated: By:
12
STATE OF & 1i tern / Ch )
I )SS-
COUNTYOF
aoc.�
On this S4 h day of 6 e c 20@#, before me, the undersigned, a
Notary Public in and for said State, personally appeared
Mar-4 A , P'wo/o proved to me on the
basis of satisfactory evidence to be the personKwhose nameKis/�pksubscribed to
the within instrument and acknowledged to me that e she +tey executed the same in
is ba6#teir authorized capacity0K and that by is her-ftheir signature on the
instrument the person or the entity upon behalf of which the person acted,
executed the instrument.
IN WITNESS WHEREOF, I have hereunto set my hand an affixed my official seal the
day and year
riinnt this
�certi/ffiicate first above written.
Cw1l Il I,r/�.�L�i
5ARRAH K.WALTON
Commission 7fi 1532725
Notary Public in and for said State a� Nolary Public-California
` San Bernardino County
My COMM,Expires Dec 5,2008
STATE OF )
)SS.
COUNTY OF )
On this day of 2004, before me, the undersigned, a
Notary Public in and for said State, personally appeared
, personally known to me or 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.
IN WITNESS WHEREOF, I have hereunto set my hand an affixed my official seal the
day and year in this certificate first above written-
Notary Public in and for said State
13
114
,tBGCG.QESCPTP'fI9fY
Real MptMiyr in the City or Riverside,County of Riverside,State of Cafifc;rW,descrihecr a5 .
' sfollouc .
r
tet 10 of tittle Tuscarry No.2,as shown6y Map ion file in P6ok•19 Page(g)2a of Maps,Rends of RtmVde County,Cal;fomwa
ExaW that portida dercrlhc�f a5 fbIlor6;
'Beginning at the mebt Souffle y caner of said tot 10;thence NoM 50 25 East on the Ea5�any
line of said Lot,113,05 feet to the Nvrrhea5bF- conrer thereof thence North 640 12'2T West
on the Northerfy line of said tot,55 feet to an angle point on said Northerly line;thence
SoudieastE�yfia5traignt be W the point of beginning.
APN:504-202-009-6
UIiYCxlP.ti=. Rir rZlde,Cd 2004-708203 Page: 2 4P 2
Order; 000000d00Ce-2 Corrwmt; f�;-q