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HomeMy WebLinkAbout12/13/2017 - STAFF REPORTS - 1.P. ,0*?AL/NSA9 iy c u a / k CITY COUNCIL STAFF REPORT Cq��FORN,P DATE: December 13, 2017 CONSENT AGENDA SUBJECT: MILLS ACT HISTORIC PROPERTY PRESERVATION AGREEMENT FOR THE PROPERTY LOCATED AT 339 S. BELARDO ROAD (LA SERENA VILLAS); A CLASS 1 HISTORIC SITE (HSPB #69). FROM: David H. Ready, City Manager BY: Planning Services SUMMARY This is a request for the City of Palm Springs to enter into a standard Mills Act Agreement with Lars Viklund, Managing Partner for Martini Madness LLC. 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 (APNs 513-202-009, 513-202-010). RECOMMENDATION: 1. Approve a Mills Act Historic Property Preservation Agreement between the City of Palm Springs and Martini Madness LLC for 339 S Belardo Road, a Class 1 historic site (HSPB #69). 2. Authorize the City Manager to execute the Agreement. 3. Direct the City Clerk to record the Agreement. STAFF ANALYSIS: On May 13, 2009, the City Council designated 339 S. Belardo Road, the "La Serena Villas", a Class One historic site (HSPB #69, Resolution No. 22479). Pursuant to 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 property, specifically its historically significant elements and characteristics. Routine ITEM NO. -1 ° P City Council Staff Report Page 2 of 2 December 13, 2017 Mills Act—339 S Belardo Road "La Serena Villas" maintenance and upkeep of the building exteriors and grounds is a responsibility of the property owner. State of California Governmental Code Section 50280.1 denotes that properties that are eligible for application of a Mills Act contract must be listed in a state, city, county official register of historic sites. FISCAL IMPACT: None There is no known fiscal impact upon the city as a result of this recommended action. Flinn Fagg, AICP Marcus L. Fuller, MPA, P.E., P.L.S. Director of Planning Services Assistant City Manager/ City Engineer David H. Ready, E City Manager Attachments: • Vicinity Map • City Council Minutes Excerpt • Owner Letter of Intent dated October 26, 2017 • Exterior Photo • Historic Property Preservation Agreement 02 x O�PPLM spa N Department of Planning Services w . Vicinity Map 'C4[[FOPN`P• S f r L_ CBD a CU — — cci I Rs O Rz, �R3 Ra c CBu Cu J �I i PD BARISTO RD � � I R1A G w z a r z '+--•-R1A i( j m tl m J O Q ~ ........ ! R3 CBD CBD SANTA ROSA DR > RIA . . l zL7 Legend ®Site F-1509 Site Radius - ❑Zoning E CITY OF PALM SPRINGS 339 S BELARDO ROAD 03 Of4RLMS'a CITY OF PALM SPRINGS y OFFICE OF THE CITY CLERK 3200 E. Tahquitz Canyon Way Palm Springs,CA 92262 -ti (760) 323-8204 41FO EXCERPTS OF MINUTES At the City Council meeting of the City of Palm Springs held May 13, 2009, the City Council took the following action: 2.E. LA SERENA VILLAS DESIGNATION OF THE PROPERTY LOCATED AT 339 SOUTH BELARDO ROAD AN HISTORIC SITE (CASE HSPB-69): Mayor Pro Tern Mills commented on the designation and his request for only the style and site plan be considered as a Class 1 site. Councilmember Foat stated the Neighborhood Organization is meeting with the Hotel owners to address their concerns. Councilmember Weigel stated that the owners stated tonight that they did not want to tear down the structures, indicated he would change his vote, and not support the designation as proposed. ACTION: Adopt Resolution No. 22479, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DESIGNATING THE 'LA SERENA VILLAS' LOCATED AT 339 S BELARDO ROAD A CLASS 1 HISTORIC SITE" Motion Councilmember Hutcheson, seconded by Councilmember Foat and carried 3-2 on a roll call vote. AYES: Councilmember Foat, Councilmember Hutcheson, and Mayor Pougnet NOES: Mayor Pro Tern Mills and Councilmember Weigel. I, CYTHIA A. BERARDI, 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 13t day of May, 2009. 04 Cynthia A. Berardi, CIVIC Deputy City Clerk 05 MICHAEL TOM Certified Public Accountant October 26. 2017 Flinn Fagg. Director of Planning Department of Planning Services City of Palm Springs. California 3200 Tahquitz Canyon Way Palm Springs. California 9-263 RE: La Serena Villas. 339 South Belardo Road. Palm Springs. CA Dear .tilr. Fagg: We applied for the Mills Act Agreement for the above property while the property was still under construction. I have included a copy of the I"page of the Historic Propert}' Preservation Agreement that we originally applied for. We were instructed to nithdran our of er tier Historic Property Preservation until the property was completed. The property is now complete and we mould like to enter into a Mills Act Agreement. I halve included the application tee of as well. I 1 i1 00 Direct all communication to my CPA. Michael Tom. at his contact info below. if you have any questions or need additional information. Thank you, ars Viklund. :�tanaging Partner Martini Madness LLC RECEIVED OCT 3 0 2017 PLANNING SERVICES DEPARTMENT 40043 Ashville Lane Tele(951)W-1250 Temecula.Callrornin 92591 Fax t95))695-0093 michaeltomcpaagmail.com- QO I-ISP5 (0q 13 - doh- - 0Cq h s # A «.5 t HSPB 69: LA SERENA VILLAS 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 13th day of December, 2017 by and between the City of Palm Springs, a charter city and municipal corporation ("City") and Martini Madness LLC ("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 339 S Belardo 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 May 13, 2009 (the "Approval Date"), the City Council of the City of Palm Springs ("Council") approved Resolution 22479 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 1. Effective Date and Term of Agreement. This Agreement shall be effective and commence on December 13, 2017 ("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 09 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 "C." 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 3 10 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 j 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 Owner: Lars Viklund, Managing Partner Martini Madness LLC 339 S Belardo Road Palm Springs, CA 92262 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 51 1 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 6 13 IN WITNESS WHEREOF, the City and the Owner have executed this Agreement on the day and year first 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: Kathleen D. Hart, MMC Interim City Clerk Dated: By: Owner: Lars Viklund; Managing Partner Martini Madness LLC 7 14 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. i certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my band 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): n Partner-- E Limited ❑General ❑Partner— ❑ Limited ❑General Li Individual ❑Attorney in Fact ❑Individual C Attorney in Fact ❑Trustee ❑Guardian or Conservator ❑Trustee E Guardian or Conservator ❑ Other: F7 Other: Signer Is Representing: Signer Is Representing: 8 15 EXHIBIT A LEGAL DESCRIPTION THE LAND REFFERED TO HEREIN BELOW IS SITUATED IN THE CITY OF PALM SPRINGS, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCEL 1: PARCEL 2 OF THE LOT LINE ADJUSTMENT NO. LLA 98-05 IN THE CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN ON DOCUMENT RECORDED NOVEMBER 10, 1998 AS INSTRUMENT NO. 489643, OFFICIAL RECORDS, MORE PARTICULARY DESCRIBED AS FOLLOWS: THE EASTERLY ONE-HALF OF THE NORTHERLY 100.00 FEET OF LOT 3 AND THE SOUTHERLY 4.00 FEET OF LOT 2 IN BLOCK 17 OF THE CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 9, PAGE 432 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY. TOGETHER WITH THE WESTERLY ONE-HALF OF THE NORTHERLY 100.00 FEET OF LOT 3 AND THE SOUTHERLY 54.00 FEET OF LOT 1 IN SAID BLOCK 17 OF PALM SPRINGS. PARCEL 2: THE SOUTH 50 FEET OF THE NORTHERLY 200 FEET OF LOT 2 IN BLOCK 17 OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY MAP RECORDED IN BOOK 9 PAGE 432 OF MAPS, IN THE COUNTY RECORDER OF SAN DIEGO COUNTY. APN: 513-202-009-2, 513-202-010-2 9 16 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 17 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� R 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 a