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DATE: March 7, 2018 CONSENT AGENDA
SUBJECT: REQUEST FOR APPROVAL OF MILLS ACT HISTORIC PROPERTY
PRESERVATION AGREEMENT FOR CLASS 1 HISTORIC SITE
LOCATED AT 645 EAST MORONGO ROAD (HSPB #76).
FROM: David H. Ready, City Manager
BY: Department of Planning Services
SUMMARY
This is a request for the City of Palm Springs to enter into a standard Mills Act
Agreement with Judith & Glenn Hudgens. 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 determined by Riverside County (APN #508-323-010).
RECOMMENDATION:
1. Approve a Mills Act Historic Property Preservation Agreement between the
City of Palm Springs and Judith Hudgens and Glenn Hudgens, for 645 E
Morongo Road, a Class 1 Historic Site (HSPB #76).
2. Authorize the City Manager to execute the Agreement.
3. Direct the City Clerk to record the Agreement.
STAFF ANALYSIS:
On March 16, 2011, the City Council designated 645 East Morongo Road `The Hugh
Stevens Residence" (HSPB #76) a Class One Historic Site via Resolution No. 22820.
Pursuant to California Government Code Sections 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
property, specifically its historically significant elements and characteristics.
ITEM NO. .
City Council Staff Report—Page 2
March 7, 2018
Mills Act Agreement—645 East Morongo Road
California Government Code Section 50280.1 denotes the property as eligible for
application of a Mills Act contract and must be listed in a state, city, or county official
register of historic sites. As such, the property at 645 East Morongo Road is qualified
for a Mills Act Contract.
FISCAL IMPACT: None
There is no known fiscal impact upon the city as a result of this recommended action.
inn Fagg, AICP larcus Fu4P.EM.P.A., P.L.S.
Director of Planning Services Assistant City Manager/City Engineer
David H. Ready, Esq., P.W. .
City Manager
Attachments:
1. Vicinity Map.
2. City Council Minutes Excerpt: November 3 2010.
3. Letter from Judith and Glenn Hudgens dated February 8, 2018.
4. Exterior Photos
5. Historic Property Preservation Agreement.
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CITY OF PALM SPRINGS
HSPB 76 — 645 E MORONGO ROAD
03
CITY OF PALM SPRINGS
OFFICE OF THE CITY CLERK
* 3200 E.Tahquitz Canyon Way
' °• ... Palm Springs,CA 92262
t•QlrFO X (760) 323-8204
EXCERPTS OF MINUTES
At the City Council meeting of the City of Palm Springs held November 3, 2010 the
City Council took the following action:
I.B. DESIGNATION OF THE STEPHENS RESIDENCE AS CLASS 1
HISTORIC SITE, LOCATED AT 645 EAST MORONGO ROAD
(HSPB 76):
Craig Ewing, Director of Planning Services, provided background
information as outlined in the staff report dated November 3, 2010.
Mayor Pougnet opened the public hearing, and no speakers coming
forward the public hearing was closed.
ACTION: Adopt Resolution No. 22820, "A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA,
DESIGNATING THE PROPERTY LOCATED AT 645 E MORONGO ROAD
(RESIDENCE OF HUGH STEPHENS) AS A CLASS 1 HISTORIC SITE
(HSPB 76)." Motion Councilmember Foat, seconded by
Councilmember Mills and unanimously carried on a roll call vote.
I, CYNTHIA A. BERARDI, Chief Deputy City Clerk of the City of Palm Springs, hereby
certify that the above action took place at a regular meeting of the City Council held on
the 3rd day of November,2010.
Z?04; �
Cynthia A. erardi, CMC
Chief Deputy City Clerk
04
February 8. 2018
TO: Finn Fagg, Director of Planning Services
City of Palm Springs
FROM: Judith and Glenn Hudgens
RE: Mills Act Agreement
Mr Fagg, my husband and I are very excited to have
purchased the Dr. and Mrs. Hugh Stevens House designed
by Albert Frey and John Porter Clark at 645 Morongo Road.
It already has been designated a Class 1 Historic Site by the
Palm Springs City Council, but the previous owners never
made application for the Mills Act.
I am hereby requesting that the City of Palm Springs initiate
a Mills Act Agreement on this historic building. Enclosed
please find the processing fee check of $1395 for this to
begin this application. lLrds
We will be working with an architect in the coming months to
restore and preserve this unique home and property and are
grateful to the Mills Act which allows us to participate in a tax
relief over the coming years.
We look forward to a constructive and cooperative exchange
with the Historic Site Preservation Board and the Planning
Department.
Please feel free to contact me with any questions and also
with your feedback on a time frame for this agreement.
05
With Sincere Thanks,
Judi Hudgens
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918.645.8466
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THE HUGH STEPHENS
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HSPB 76 THE HUGH STEPHENS RESIDENCE
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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 this 7th day of
March, 2018 by and between the City of Palm Springs, a charter city and municipal
corporation ("City") and Judith Hudgens ("Owner") and Glenn Hudgens ("Owner").
RECITALS:
A. California Government Code Sections 50280, et seq. (the "State Law"), as may
be amended from time to time, authorizes cities to enter into contracts with the
owners of qualified historical property to provide for the use, maintenance,
protection, and restoration of such historical property so as to retain its
characteristics as a property of historical significance.
B. The Owners possess fee title in and to that certain real property, together with
associated structures and improvements thereon, generally located at the street
address 645 E Morongo Road, Palm Springs, California ("Historic Property"). A
legal description of the Historic Property is attached hereto as Exhibit A and is
incorporated herein by this reference.
C. On November 3, 2010 (the "Approval Date"), the City Council of the City of Palm
Springs ("Council") approved Resolution 22820 designating the Property a Class
1 historic site, pursuant to the terms and provisions of Chapter 8.05 of the Palm
Springs Municipal Code (the "City Code").
D. The City and the Owners desire to enter into this Agreement for the purpose of
protecting and preserving the characteristics of historical significance of the
Historic Property, in accordance with the State Law; to help preserve the Palm
Springs community's own unique civic identity and character; and to qualify the
Historic Property for an assessment of valuation pursuant to Revenue and
Taxation Code Section 439.2 and any corresponding adjustment in property
taxes resulting therefrom.
AGREEMENT
NOW, THEREFORE, the City and the Owner, in consideration of the mutual covenants
and conditions set forth herein, agree as follows:
1
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1. Effective Date and Term of Agreement. This Agreement shall be effective and
commence on March 7, 2018 ("Effective Date") and shall remain in effect for a minimum
term of ten (10) years thereafter. 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 2 of this Agreement.
2. Non-Renewal and Cancellation. If either the Owner or the City desire in any year
not to renew this Agreement, the Owner or the 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 the Owner upon the City at
least ninety (90) days prior to the Renewal Date, or if served by the City upon the
Owner, the Notice of Nonrenewal shall be effective only if served upon the Owner at
least sixty (60) days prior to the Renewal Date. If either the City or the Owner serve a
Notice of Nonrenewal in any year, this Agreement shall remain in effect for the balance
of the term then remaining from the last Renewal Date (or from the Effective Date if no
Renewal Date has yet occurred).
3. Owner Protest of City Nonrenewal. Within fifteen (15) days of the Owner's receipt
of the Notice of Nonrenewal from the City, the Owner may file with the 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. The
Owner may furnish the City Council with any information which Owner deem 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.
4. Maintenance Standards for the Property. During the term of this Agreement, the
Property shall be subject to the following conditions, requirements, and restrictions:
4.1 The Owner shall preserve and maintain the characteristics of the cultural
and historical significance of the Historic Property. Attached to this
Agreement as Exhibit "B", 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. The Owner
shall comply with these minimum standards throughout the term of this
Agreement. In addition, Owner shall comply with the terms of the City
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.
4.2 The 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, Secretary of the Interior's Standards for the Treatment of
Historic Properties, the State Historical Building Code, and the City of
Palm Springs. The condition of the interior and exterior of the Historic
2 11
Property on the effective date of this Agreement is documented in
photographs attached as Exhibit "C" to this Agreement. At a minimum,
Owner shall continually maintain the exterior of the Historic Property in the
same condition as documented in Exhibit T."
4.3 The Owner shall carry out specific restoration, repair, maintenance, and/or
rehabilitation projects on the Historic Property, as outlined in the attached
Exhibit "D" to this Agreement. All such projects shall be undertaken and
completed in accordance with the Secretary of the Interior's Standards for
the Treatment of Historic Properties with Guidelines for Preservation,
Restoration and/or Rehabilitation and the City Codes and all applicable
design guidelines.
4.4 The 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.
5. Interior and Exterior Inspections. Prior to the approval, execution, and
recordation of this Agreement, and every five years thereafter, the City Manager of the
City or the City Manager's designee (the "City Manager ') shall inspect the interior and
exterior of the premises to determine the Owner's compliance with the terms and
provisions of this Agreement.
6. Provision of Information of Compliance. The Owner shall furnish the City
Manager with any and all information requested by the City Manager, which the City
Manager deems necessary or advisable to determine eligibility of the Historic Property
and compliance with the terms and provisions of this Agreement.
7. Breach of Agreement; Remedies.
7.1 If the Owner breaches any provision of this Agreement, the City Manager
may give written notice to the Owner by registered or certified mail
detailing the Owner's violations. If such violation is not corrected to the
reasonable satisfaction of the City Manager 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 Manager may, without further notice, declare THE
Owner to be in breach of this Agreement. Upon the City Manager's
declaration of the Owner's breach, the City Manager may pursue any
remedy available under local, state, or federal law, including those
specifically provided for in this section.
7.2 The City Council may cancel this Agreement if the City Council
determines, following a duly noticed public hearing in accordance with
California Government Code section 50286, that the Owner breached any
312
of the conditions of the Agreement, the Owner allowed the Historic
Property to deteriorate to the point that it no longer meets the standards
for a qualified historic property, or the 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, the
Owner shall pay a cancellation fee to the Office of the Auditor for the
County of Riverside as required by California Government Code Section
50286.
7.3 As an alternative to cancellation of this Agreement for the Owner's breach
of any condition, the City Manager 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.
8. 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.
9. Waiver. The City does not waive any claim of default by the Owner if the City or
the City Manager 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 the City or the City Manager of
any breach or default under this Agreement shall be deemed to be a waiver of any other
subsequent breach thereof or default hereunder.
10. Binding Effect of Agreement. The Owner hereby subjects the Historic Property to
the covenants, conditions, and restrictions set forth in this Agreement. The City and the
Owner hereby declare their specific intent that the covenants, conditions, and
restrictions set forth in this Agreement shall be deemed covenants running with the land
and shall inure to and be binding upon the 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.
11. Covenants Run with the Land. The City and the Owner hereby declare their
understanding and intent that the burden of the covenants, reservations, and restrictions
4 13
set forth in this agreement touch and concern the land in that it restricts development of
the Historic Property. The City and the 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, the City, and the Owner.
12. 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 Springs
Office of the City Clerk
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92263
Owners: Judith Hudgens
Glenn Hudgens
645 East Morongo Road
Palm Springs, CA 92264
13. 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.
14. Indemnity of City. The Owner shall defend, indemnify, and hold harmless the 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 the Owner or any contractor, subcontractor, employee, agent, lessee,
licensee, invitee, or any other person; (ii) the 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 the City 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. The 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 the City, its elected
officials, employees, or agents.
15. 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
5 14
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.
16. 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.
17. 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.
18. Recordation. No later than twenty (20) days after the parties execute and enter
into this Agreement, the City shall cause this Agreement to be recorded in the office of
the County Recorder of the County of Riverside. In the event the City fails to record this
Agreement as provided in this Section, the Owner or agent of an owner shall record this
Agreement with Riverside County within six (6) months of entering into the Agreement
and shall file and submit a conformed copy of this Agreement with the City Clerk
promptly after recordation.
19. Amendments. This Agreement may be amended, in whole or in part, only by
written recorded instrument executed by the parties hereto.
20. 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.
21. No Compensation. The Owner shall not receive any payment from the City in
consideration of the obligations imposed under this Agreement. The Owner and the City
acknowledge and agree that the primary consideration to the 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 the
Owner is the economic advantage that will accrue to the 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. The Owner acknowledges that it
is not guaranteed to receive a reduction of property taxes as a result of this Agreement.
SIGNATURES ON FOLLOWING PAGE
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IN WITNESS WHEREOF, the City and the Owner have executed this Agreement on the
day and the first year written above.
CITY OF PALM SPRINGS,
A Charter City and Municipal Corporation
Dated: By:
City Manager: David H. Ready
APPROVED AS TO FORM: ATTEST:
City Attorney: Edward Kotkin City Clerk: Anthony Mejia, MMC
Dated: By:
Owner: Judith Hudgens
Dated: By:
Owner: Glenn Hudgens
7 I6
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE 1189
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 )
County of )
On before me,
Date Here Insert Name and Title of the Officer
personally appeared
Name(s) of Signer(s)
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.
1 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
Signature of Notary Public
Place Notary Seal Above
OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or
fraudulent reattachment of this form to an unintended document.
Description of Attached Document
Title or Type of Document: Document Date:
Number of Pages: Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name: Signer's Name:
❑ Corporate Officer—Title(s): ❑ Corporate Officer—Title(s):
❑Partner ❑Limited ❑General ❑Partner— ❑Limited ❑General
❑Individual ❑Attorney in Fact ❑Individual ❑Attorney in Fact
❑Trustee ❑Guardian or Conservator ❑Trustee ❑Guardian or Conservator
❑ ❑
Other: Other:
Signer- is Representing! Signer is Representing:
8 17
EXHIBIT A
LEGAL DESCRIPTION
Lots 49 & 50 of the Royale Rancho Tract, in the City of Palm Springs, County of
Riverside, State of California, .77 acres, as per map on file in Book 021, Page 035 of
Maps, records of Riverside County.
APN: 508-323-010
9 18
EXHIBIT B
MAINTENANCE STANDARDS
(Section 4.1)
All structures, walls, water features, landscaping and any other improvements
associated with the parcel that is the subject of this Mills Act Historic Property
Preservation Agreement ("Agreement") shall be maintained in good condition
throughout the term of this agreement.
All nuisances as defined in Title 11 "Peace, Morals and Safety" of the Palm Springs
Municipal Code that occur or develop on the subject parcel shall be abated in a timely
manner and to the satisfaction of the City Manager or his designee.
All structures, walls, water features, landscaping and any other improvements
associated with the parcel that is the subject of this Agreement that are part of the
historic character-defining features of the property shall be maintained as outlined in the
Secretary of the Interior Standards for Preserving, Rehabilitating, Restoring, and
Reconstructing Historic Buildings (1995 Weeks and Grimmer).
10 19
EXHIBIT C
EXISTING CONDITIONS
(Section 4.2)
(Aerial photo of the property and tract map are on file in the Planning Services Department of
the City of Palm Springs, California at 3200 Tahquitz Canyon Way, Palm Springs, CA 92262)
11 20
EXHIBIT D
SPECIFIC PROJECTS
(Section 4.3)
(Aerial photo of the property and tract map are on file in the Planning Services Department of
the City of Palm Springs, California at 3200 Tahquitz Canyon Way, Palm Springs, CA 92262)
12 2 �