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Joseph Santiago, Mark and Maria Williams and Erich Reisen - 2015-10-19
Recorded in Official Records, Orange County PLEASE COMPLETE THIS INFORMATION RECDRoING REQUESTED BY: AND WHEN RECORDED MAIL TO* City of Huntington Beach ATTN: Joan L. Flynn City Clerk's Office P. 0. Box 190 Huntington Beach CA 92648 TITLE OF DOCUMENT: HuIIIIIIIIIIIIIIII'llll�@IIIVIIIIIIIIIIIIIIIIIIIIIVIIIIIII'IN NO FEE ]0159006I762] 9:58 vn 12/17115� 217 402_Al2 20 0.00 0 00 0.00 0 00 57.00 0.00 0.00 0.00 HISTORIC PROPERTY PRESERVATION AGREEMENT CONTAINING COVENANTS, CONDITIONS AND RESTRICTIONS AFFECTING REAL PROPERTY BY AND BETWEEN THE CITY OF HUNTINGTON BEACH AND JOSEPH SANTIAGO FOR THE REAL PROPERTY LOCATED AT 403 LOTH STREET WITHIN THE CITY OF HUNTINGTON BEACH ('MILLS ACT CONTRACT') This doament is ad* for the o5dW bualnew of the City of Hunfington Beach, as contemplated under Govemment Code Sec 6103 wid atxwtd bs sa=rded tnw of charge. THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION (Additional recarding fee applies) HISTORIC PROPERTY PRESERVATION AGREEMENT CONTAINING COVENANTS, CONDITIONS AND RESTRICTIONS AFFECTING REAL PROPERTY BY AND BETWEEN THE CITY OF HUNTINGTON BEACH AND JOSEPH SANTIAGO FOR THE REAL PROPERTY LOCATED AT 403 10'h STREET WITHIN THE CITY OF HUNTINGTON BEACH ("MILLS ACT CONTRACT") ,/ THIS AGREEMENT is made this ' l STday of 0 C- % o t� �L , 2015, by and between the City of Huntington Beach, a municipal corporation ("City") and Joseph Santiago ("Owner") WHEREAS, California Government Code Section 50280, et. seq allows cities the discretion to enter into contracts with the owners of qualified historic properties, as that term is defined in Government Code Section 50280 1, for the purpose of providing for the use, maintenance, protection, and restoration of such historic property so as to retain its characteristics as property of historic significance; and Owner holds fee title in and to that certain real property, together with associated structures and improvements thereon, generally located at the street address 403 10t' Street, Huntington Beach, California ("Historic Property"). A legal description of the Historic Property is attached hereto as Exhibit "A" and incorporated herein by this reference; and By approving this Agreement, the City Council hereby designates the Historic Property as a Qualified Historic Property as defined by Resolution 2014 - 82, Section 5, and City and Owner desire to enter into this Agreement for the purpose of protecting and preserving the characteristics of historical significance of the Historic Property that help provide the community with its own unique civic identity and character; and Owner, in consideration for abiding by the terms of this Agreement, shall be entitled to qualify for a reassessment of valuation of the Histonc Property, pursuant to the provisions of 15-4885/125162 chapter 3, Part, 2, of Division 1 of the California Revenue and Taxation Code, and any corresponding adjustment in property taxes resulting therefrom, NOW, THEREFORE, the City and Owner in consideration of mutual covenants and conditions set forth herein, do hereby agree as follows EFFECTIVE DATE AND TERM OF AGREEMENT. This Agreement shall be effective and commence on October 1, 2015 ("Effective Date") and shall remain in effect for a minimum initial term of ten (10) years thereafter unless canceled by the City pursuant to Section 8 or 9 of this Agreement. 2 RENEWAL. Upon each anniversary date, beginning at the end of the initial ten year term ("Renewal Date"), an additional one (1) year shall automatically be added to the term of the Agreement unless a notice of nonrenewal is delivered as provided in Section 3 of this Agreement. NONRENEWAL. If either the Owner or City desires in any year not to renew this Agreement, Owner or City shall serve a written notice of nonrenewal upon the other party in advance of the Renewal Date ("Notice of Nonrenewal") The Notice of Nonrenewal shall be effective only if served by Owner upon City at least ninety (90) days prior to the Renewal Date, or if served by City upon Owner, the Notice of Nonrenewal shall be effective only if served upon Owner at least sixty (60) days prior to the Renewal Date If either City or Owner serves a Notice of Nonrenewal in any year, this Agreement shall remain in effect for the balance of the term then remaining. City shall notify the County of Orange of any nonrenewal of this Agreement. 2 15-4885/125162 4. OWNER PROTEST OF CITY NONRENEWAL. Within fifteen (15) days of Owner's receipt of the Notice of Nonrenewal from City, Owner may file with City a written protest of the Notice of Nonrenewal. Upon receipt of the written protest, the City Council shall set a hearing prior to the expiration of the Renewal Date of this Agreement. Owner may furnish the City Council with any information which Owner deems relevant and shall furnish the City Council with any information it may require. The City Council may, at any time prior to the annual Renewal Date, withdraw its Notice of Nonrenewal. 5. STANDARDS FOR HISTORICAL PROPERTY During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements, and restrictions• A Owner shall preserve and maintain the characteristics of the cultural and historical significance of the Historic Property. Compliance or non-compliance with this section shall be determined by the Director of Planning and Building or his/her designee in accordance with the standards listed in Subsection `B" below In addition, Owner shall obtain any applicable permits necessary to protect, preserve, restore, and rehabilitate the Historic Property so as to maintain its historical and cultural significance. B Owner, when necessary as determined by the City, shall restore and rehabilitate the Historic Property to conform to the rules and regulations of the Office of Historic Preservation of the California Department of Parks and Recreation (http //ohp.parks.ca gov/?page_id=21410), the United States Secretary of the Interior's Standards for the Treatment of Historic Properties (http.//www nps.gov/tps/standards/rehabilitation.htm#Guidelines), and the State Historical 3 154885/125162 Building Code. The condition of the exterior of the Historic Property on the effective date of this Agreement is documented in photographs attached as Exhibit "B" and incorporated herein by this reference The Owner shall continually maintain the exterior of the Historic Property in the same or better condition as documented in Exhibit `B." C. Owner shall carry out specific restoration, repair, maintenance, and/or rehabilitation projects on the Historic Property, as outlined in the attached Exhibit "C," which is incorporated herein by this reference. All such projects shall be undertaken and completed in keeping with the historic nature of the properly. Projects may be interior or exterior, but must utilize all property tax savings over the ten (10) year contract period or according to the schedule for Exhibit "C " Each year during the term of this Agreement, Owner shall submit a work plan for implementation of the items listed on Exhibit "C" to City's Director of Planning and Building for possible modifications, review and approval. D Property Tax relief afforded to Owner pursuant to Chapter 3, Part 2 of Division 1 of the California Revenue and Taxation Code will be determined solely by the Orange County Assessor. City makes no representations regarding the actual tax savings any person may realize by entering into this Agreement. 6. INSPECTIONS. Upon reasonable advance notice and at Owner's expense, Owner shall allow an initial inspection and second year inspection by City inspectors of the City. Additionally, Owner shall allow reasonable periodic examinations, specific to where the work is being performed, of the interior and exterior of the Historic Property by representatives of the County Assessor, the State Department of Parks and Recreation, the State Board of Equalization and/or City, as may be necessary to determine Owner's compliance with the terms and provisions of this Agreement El 154885/125162 Owner shall give priority to, and shall promptly abate, any city or state code violations related to zoning, health or safety issues. 7. PROVISIONS OF INFORMATION OF COMPLIANCE YEARLY ADMINISTRATIVE FEE. Owner hereby agrees to furnish City with any and all information requested by City, which City deems necessary or advisable to determine eligibility of the Historic Property and compliance with the terms and provisions of this Agreement Requested information may include, but not be limited to, required annual reports, as well as receipts documenting property maintenance and/or improvement expenditures that equal or exceed annual estimated property tax savings Owner shall also pay City a yearly administrative fee as outlined in City's Master Fee Resolution. 8 BREACH OF AGREEMENT; REMEDIES. A. Notice of Breach; Opportunity to Cure. If Owner breaches any provision of this Agreement, City may give written notice to Owner by registered or certified mail detailing Owner's violations. If such violation is not corrected to the reasonable satisfaction of City within thirty (30) days after the date of notice of violation, or within such a reasonable time as may be required to cure the violation (provided the acts to cure the violation are commenced within thirty (30) days and thereafter diligently pursued to completion), the City may, without further notice, declare Owner to be in breach of this Agreement. Upon City's declaration of Owner's breach, City may pursue any remedy available under local, state, or federal law, including those specifically provided for in this section. B. Remedy - Cancellation. City may cancel this Agreement if City determines, following a duly noticed public hearing in accordance with Government Code section 50285, that Owner breached any of the conditions of the Agreement, Owner allowed the 5 15-4885/125162 Historic Property to deteriorate to the point that it no longer meets the standards for a qualified historic property, or Owner failed to restore or rehabilitate the Historic Property in accordance with the terms of this Agreement as per Government Code 50284. If this Agreement is cancelled, under this paragraph, Owner shall pay a cancellation fee to the Office of the Auditor for the County of Orange as required by Government Code section 50286. The cancellation fee will be equal to 12 1/2 percent of the current fair market value of the property as determined by the county assessor as though the property were free of the contractual restriction. C. Alternative Remedies. As an alternative to cancellation of this Agreement for Owner's breach of any condition, City may bring an action in court necessary to enforce this Agreement including, but not limited to, an action to enforce this Agreement by specific performance, injunction, or receivership. 9 DESTRUCTION OF PROPERTY, EMINENT DOMAIN. 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 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 Mayor and 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. 0 15-4885/125162 10. WAIVER. City does not waive any claim of default by Owner if City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in City's regulations governing historic properties are available to the City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder 11. BINDING EFFECT OF AGREEMENT. Owner hereby subjects the Historic Property to the covenants, conditions, and restrictions set forth in this Agreement. City and Owner hereby declare their specific intent that the covenants, conditions, and restrictions set forth herein shall be deemed covenants running with the land and shall inure to and be binding upon Owner's successors and assigns in title or interest to the Historic Property. Each and every contract, deed or other instrument hereinafter 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 set forth herein. 12. COVENANTS RUN WITH THE LAND. City and Owner hereby declare their understanding and intent that the burden of the covenants, reservations and restrictions set forth herein touch and concern the land in that they restrict development of the Historic Property. City and Owner hereby further declare their understanding and intent that the benefit of such covenants, reservations and restrictions touch and concern the land by enhancing and maintaining the cultural and historical characteristics and significance of the Historic Property for the benefit of the public and the Owner. 7 15-4885/125162 13. NOTICE. Any notice required to be given by the terms of this Agreement shall be provided at the address of the respective parties as specified below or at any other address as may be later specified by the parties hereto: City: City of Huntington Beach City Manager's Office 2000 Main Street Huntington Beach, CA 92648 Owner: Joseph Santiago 403 101b Street Huntington Beach, CA 92648 14. EFFECT OF AGREEMENT. None of the terms, provisions or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors or assigns; nor shall such terms, provisions or conditions cause the parties to be considered joint venturers or members of any joint enterprise. 15 INDEMNITY OF CITY. Owner shall defend, indemnify, and hold harmless City and its elected officials, officers, agents and employees from any actual or alleged claims, demands causes of action, liability, loss, damage, or injury to property or persons, including wrongful death, whether imposed by a court of law or by administrative action of any federal, state or local governmental agency, ansng out of or incident to (i) the direct or indirect use, operation, or maintenance of the Historic Property by Owner or any contractor, subcontractor, employee, agent, lessee, licensee, invitee, or any other person; (ii) Owner's activities in connection with the Historic Property, or from the enforcement of this Agreement This indemnification includes, without limitation, the 8 15-4885/125162 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 attorney's fees, legal expenses and costs incurred by each of them. The costs, salaries and expenses of the City Attorney and members of his/her office in enforcing this Agreement on behalf of the City shall be considered as "attorneys' fees" for the purposes of this paragraph. Owner's obligation to indemnify shall survive the termination, cancellation, or expiration of this Agreement and shall not be restricted to insurance proceeds, if any received by City, its elected officials, employees, or agents. 16. BINDING UPON SUCCESSORS All of the agreements, rights, obligations, covenants, reservations, and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns and all persons acquiring any part or portion of the Historic Property, whether by operation of law or in any manner whatsoever 17. ATTORNEYS' FEES AND 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, each party shall bear its own attorneys' fees and legal costs, and the prevailing parting in such proceeding shall not be entitled to recover its attorneys' fees and legal costs from the non -prevailing party 18. SEVERABILITY In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive 9 15-4885/125162 legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be effected thereby. 19. RECORDATION. No later than twenty (20) days after the Effective Date, City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Orange Owner shall provide written notice of the contract to the State Office of Historic Preservation within six (6) months of entering into the contract. 20. AMENDMENTS. This Agreement may be amended, in whole or in part, only by written recorded instrument executed by the parties hereto. 21. GOVERNING LAW AND VENUE. This Agreement shall be construed and governed in accordance with the laws of the State of California. Any action at law or in equity brought by either of the parties hereto for the purpose of enforcing a right or rights provided for by this Agreement shall be tried in a court of competent jurisdiction in the County of Orange, State of California, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings to any other county. 22. REQUIREMENTS RELATED TO TRANSFER OF HISTORIC PROPERTY In the event of any sale, transfer, assignment or conveyance of the Historic Property (herein referred to as a "Transfer"), the Owner agrees that, at least thirty (30) days prior to such Transfer, it shall give written notice to the City of such proposed Transfer, including the name(s) of the transferee(s) In addition, the Owner and the proposed transferee(s) shall enter into and deliver to City through the escrow for the Transfer of the Historic Property an 10 15-4885/125162 assignment and assumption agreement in a form satisfactory to the City Attorney of City or other such evidence as may be satisfactory to the City that the transferee(s) has (have) assumed the Owner's obligations set forth in this Agreement. Upon the Transfer of the Historic Property and the assumption of the obligations hereunder by the transferee(s), the Owner's liability for performance shall be terminated as to any obligation to be performed hereunder after the date of such Transfer. 23. ENTIRETY. The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that party's behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. REST OF PAGE INTENTIONALLY LEFT BLANK 11 15-4885/125162 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written. OWNER: 0/f 4 �, k7c� Joseph Santiago Attachments CITY OF HUNTINGTON BEACH A California municipal corporation City Manager REV SD APPROVED: Cy WAaJer Exhibit A. Legal Description of the Property Exhibit B Photographs of the Property Exhibit C: Proposed Restoration, Repair, Maintenance or Rehabilitation Projects on Historic Property 12 154885/125162 ACKNOWLEDGMENT 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 Orange On December 9, 2015 before me, Lisa DW Kennedy, Notary Public, personally appeared Joseph Santiago who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature LISA 0 W KENNEDY Commission # 2006337 Z : `m Notary Public - California i Z Orange County MY Comm. Expires Fab 1, 2017 (Seal) 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. ACKNOWLEDGMENT STATE OF CALIFORNIA ss COUNTY OF ORANGE On 12/16/2015 before me, P. L. Esparza, Notary Public, personally appeared .Till Hardy who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. -1-P-1' X, A4Z"'� (Notary Sig ture dh P L Ea SPA Commission # 20327 00 z : Notary Public - California Orange County Comm EitDinlis Au 4, 2017 (Seal) 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. ACKNOWLEDGMENT STATE OF CALIFORNIA ) ) ss COUNTY OF ORANGE ) On December 14, 2015 before me, P. L. Esparza, Notary Public, personally appeared Joan L. Flynn, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which the person 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. P L ESPARZA Commission # 203032750 WITNESS my hand and official seal. La= Notary Public California i Orange County D Ex ues Au 4, 2017 (Seal) (Notary Si na e) r r , Legal Description LOT 1 AND 3 IN BLOCK 410 OF HUNTINGTON BEACH MAIN STREET SECTION, IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, SPATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 3, PAGE 43 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, EXCEPT THEREFROM ALL QIL,GAS, MINERALS AND- OTHER HYDROCARBON_SUBSTAN_CES LYING BELOWA DEPTH OF 500 FEET FROM THE SURFACE OF SAID PROPERTY, BUT WITH NO RIGHT OF SURFACE ENTRY, A&PROVIDE;D IN DEEDS OI=RECORD, Item 8. - 16 HB -1018- LOMOLV ru4A FIB -109- 1 R tCnryq� I Item 8. - 17 I.Mae MCI Item 8. - 18 tib -11V- Exhibit "C" PRESERVATION WORK PROGRAM AND PROPOSED TIME LINE Please list the improvements to take place over the next ten years in order of priority. Listed work should be limited to stabilization and/or maintenance of the historic structure and/or repair of exterior, character -defining features of the historic property. State the anticipated costs of the improvements, including but not limited to materials, labor, permits, and fees. Anticipated construction must be equal or greater than tax savings. Attach additional pages as needed to complete the information below. Year Pronosed Pro'ect Estimated Cost Qt;t e,��ry D5 !�'C-u% {_n�i tre3, o e"� 9'AlC� �' Zr', � ' ovo �,�� 1. J`!' rt2 r'�1tc�u�lKt5%$tG• 7-4UCID 3. C.LCTIZtC, =�` .L i2 C; t (-- F-r--rL -C C LO/ ov 4.� ��,�� -- I'-�'t.� « 1� s r cam.-'��- L 12- pUit--re-A—L FCAk[PtS — Fr&V✓ l tJQn 5. tr...C--PAV %000 B. SE2vtCe- U4C-5� •^1ZeN rZ /Sc�G �JNt�ij�(, sC-ulc�2.� " t *�S;Jt't-t✓ NCB - , c7 C'IIt�ti3�►�� �ttsrC�cr� '7 7. CJA I to NJ L-t) vJ it15 ►, C( OA-Oji� T-7 000 s. 9. Zoo v 10. Estimated Ten Year Total Costs 9-70f 000 it ` Please note the estimated cost of proposed restoration and maintenance activities must be equal or greater than the estimated reduction in property taxes HB -1 2 1- Item 8. - 29 PLEASE COMPLETE THIS INFORMATION RECGROING REQUESTED BY: AND WHEN RECORDED MAIL TO: City of Huntington Beach ATTN: Joan L. Flynn City Clerk's Office P. 0. Box 190 Huntington Beach CA 92648 TITLE OF DOCUMENT: Recorded in Official Records, Orange County Hugh Nguyen, Clerk -Recorder II�II) 11$11 II II II I I 1111 I i IT 111 i II NO FEE *$ R 0 0 0 8 0 3 Z 9 5 3$ 2015000637638 9:59 am 12/17/15 217 402 Al 21 0.00 0 00 0.00 0.00 60.00 0.00 0 00 0.00 HISTORIC PROPERTY PRESERVATION AGREEMENT CONTAINING COVENANTS, CONDITIONS AND RESTRICTIONS AFFECTING REAL PROPERTY BY AND BETWEEN THE CITY OF HUNTINGTON BEACH AND MARK AND MARIA WILLIAMS FOR THE REAL PROPERTY LOCATED AT 501 LOTH STREET WITHIN THE CITY OF HUNTINGTON BEACH (MILLS ACT CONTRACT`) This doaxnent Is solely for the oairdal b"rA ss of the City of Huntlngion Baer, as contemplated under Govermtent Code Sec. 6103 and shmM b 9 rewrded fra® of . THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION (Additional recording lee applies) HISTORIC PROPERTY PRESERVATION AGREEMENT CONTAINING COVENANTS, CONDITIONS AND RESTRICTIONS AFFECTING REAL PROPERTY BY AND BETWEEN THE CITY OF HUNTINGTON BEACH AND MARK AND MARIA WILLIAMS FOR THE REAL PROPERTY LOCATED AT 501 10tb STREET WITHIN THE CITY OF HUNTINGTON BEACH ("MILLS ACT CONTRACT") THIS AGREEMENT is made this i O r day of 0 C+0&V)e- , 2015, by and between the City of Huntington Beach, a municipal corporation ("City") and Mark and Maria Williams ("Owner"). WHEREAS, California Government Code Section 50280, et. seq. allows cities the discretion to enter into contracts with the owners of qualified historic properties, as that term is defined in Government Code Section 50280 1, for the purpose of providing for the use, maintenance, protection, and restoration of such historic property so as to retain its characteristics as property of historic significance, and Owner holds fee title in and to that certain real property, together with associated structures and improvements thereon, generally located at the street address 501 1 Oth Street, Huntington Beach, California ("Historic Property") A legal description of the Historic Property is attached hereto as Exhibit "A" and incorporated herein by this reference, and By approving this Agreement, the City Council hereby designates the Historic Property as a Qualified Historic Property as defined by Resolution 2014 - 82, Section 5; and City and Owner desire to enter into this Agreement for the purpose of protecting and preserving the characteristics of historical significance of the Historic Property that help provide the community with its own unique civic identity and character; and 15-4885/125187 Owner, in consideration for abiding by the terms of this Agreement, shall be entitled to qualify for a reassessment of valuation of the Historic Property, pursuant to the provisions of chapter 3, Part, 2, of Division 1 of the California Revenue and Taxation Code, and any corresponding adjustment in property taxes resulting therefrom, NOW, THEREFORE, the City and Owner in consideration of mutual covenants and conditions set forth herein, do hereby agree as follows: 1. EFFECTIVE DATE AND TERM OF AGREEMENT. This Agreement shall be effective and commence on October 1, 2015 ("Effective Date") and shall remain in effect for a minimum initial term of ten (10) years thereafter unless canceled by the City pursuant to Section 8 or 9 of this Agreement. 2 RENEWAL. Upon each anniversary date, beginning at the end of the initial ten year term ("Renewal Date"), an additional one (1) year shall automatically be added to the term of the Agreement unless a notice of nonrenewal is delivered as provided in Section 3 of this Agreement. 3. NONRENEWAL. If either the Owner or City desires in any year not to renew this Agreement, Owner or City shall serve a written notice of nonrenewal upon the other party in advance of the Renewal Date ("Notice of Nonrenewal") The Notice of Nonrenewal shall be effective only if served by Owner upon City at least ninety (90) days prior to the Renewal Date, or if served by City upon Owner, the Notice of Nonrenewal shall be effective only if served upon Owner at least sixty (60) days prior to the Renewal Date. If either City or Owner serves a Notice of Nonrenewal in any year, this Agreement 15-4885/125187 2 shall remain in effect for the balance of the term then remaining. City shall notify the County of Orange of any nonrenewal of this Agreement. 4 OWNER PROTEST OF CITY NONRENEWAL Within fifteen (15) days of Owner's receipt of the Notice of Nonrenewal from City, Owner may file with City a written protest of the Notice of Nonrenewal. Upon receipt of the written protest, the City Council shall set a hearing prior to the expiration of the Renewal Date of this Agreement. Owner may furnish the City Council with any information which Owner deems relevant and shall furmsh the City Council with any information it may require. The City Council may, at any time prior to the annual Renewal Date, withdraw its Notice of Nonrenewal. 5 STANDARDS FOR HISTORICAL PROPERTY. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements, and restrictions. A. Owner shall preserve and maintain the characteristics of the cultural and historical significance of the Historic Property. Compliance or non- compliance with this section shall be determined by the Director of Planning and Building or his/her designee In addition, Owner shall obtain any applicable permits necessary to protect, preserve, restore, and rehabilitate the Historic Property so as to maintain its historical and cultural significance. B. Owner, when necessary as determined by the City, shall restore and rehabilitate the Historic Property to conform to the rules and regulations of the Office of Historic Preservation of the California Department of Parks and Recreation (http://ohp parks.ca.gov/?page_id=21410), the United States Secretary of the Interior's 154885/125187 Standards for the Treatment of Historic Properties (http.//www.nps.gov/tps/standards/rehabilitation.htm#Guidelines), and the State Historical Building Code. The condition of the exterior of the Historic Property on the effective date of this Agreement is documented in photographs attached as Exhibit "B" and incorporated herein by this reference The Owner shall continually maintain the exterior of the Historic Property in the same or better condition as documented in Exhibit RM C. Owner shall carry out specific restoration, repair, maintenance, and/or rehabilitation projects on the Historic Property, as outlined in the attached Exhibit "C," wluch is incorporated herein by this reference. All such projects shall be undertaken and completed in keeping with the historic nature of the property. Projects may be interior or exterior, but must utilize all property tax savings over the ten (10) year contract period or according to the schedule for Exhibit "C." Each year during the term of this Agreement, Owner shall submit a work plan for implementation of the items listed on Exlubit "C" to City's Director of Planning and Building for possible modifications, review and approval D Property Tax relief afforded to Owner pursuant to Chapter 3, Part 2 of Division 1 of the California Revenue and Taxation Code will be determined solely by the Orange County Assessor City makes no representations regarding the actual tax savings any person may realize by entering into this Agreement. 6 INSPECTIONS Upon reasonable advance notice and at Owner's expense, Owner shall allow an initial inspection and second year inspection by City inspectors of the City. 15-4885/125187 4 Additionally, Owner shall allow reasonable periodic examinations, specific to where the work is being performed, of the interior and exterior of the Historic Property by representatives of the County Assessor, the State Department of Parks and Recreation, the State Board of Equalization and/or City, as may be necessary to determine Owner's compliance with the terms and provisions of this Agreement. Owner shall give priority to, and shall promptly abate, any city or state code violations related to zoning, health or safety issues. 7 PROVISIONS OF INFORMATION OF COMPLIANCE; YEARLY ADMINISTRATIVE FEE. Owner hereby agrees to furnish City with any and all information requested by City, which City deems necessary or advisable to determine eligibility of the Historic Property and compliance with the terms and provisions of this Agreement. Requested information may include, but not be limited to, required annual reports, as well as receipts documenting property maintenance and/or improvement expenditures that equal or exceed annual estimated property tax savings. Owner shall also pay City a yearly administrative fee as outlined in City's Master Fee Resolution. 8. BREACH OF AGREEMENT; REMEDIES. A. Notice of Breach; Opportumty to Cure If Owner breaches any provision of this Agreement, City may give written notice to Owner by registered or certified mail detailing Owner's violations. If such violation is not corrected to the reasonable satisfaction of City within thirty (30) days after the date of notice of violation, or within such a reasonable time as may be required to cure the violation (provided the acts to cure the violation are commenced within thirty (30) days and thereafter diligently pursued to completion), the City may, without further notice, declare Owner to be in 154885/125187 5 breach of this Agreement. Upon City's declaration of Owner's breach, City may pursue any remedy available under local, state, or federal law, including those specifically provided for in this section. B. Remedy - Cancellation. City may cancel this Agreement if City determines, following a duly noticed public hearing in accordance with Government Code section 50285, that Owner breached any of the conditions of the Agreement, Owner allowed the Historic Property to deteriorate to the point that it no longer meets the standards for a qualified historic property, or Owner failed to restore or rehabilitate the Historic Property in accordance with the terms of this Agreement as per Government Code 50284 If this Agreement is cancelled, under this paragraph, Owner shall pay a cancellation fee to the Office of the Auditor for the County of Orange as required by Government Code section 50286. The cancellation fee will be equal to 12 1/2 percent of the current fair market value of the property as determined by the county assessor as though the property were free of the contractual restriction. C. Alternative Remedies As an alternative to cancellation of this Agreement for Owner's breach of any condition, City may bring an action in court necessary to enforce this Agreement including, but not limited to, an action to enforce this Agreement by specific performance, injunction, or receivership. 9. DESTRUCTION OF PROPERTY; EMINENT DOMAIN. 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 replaced, this Agreement shall be cancelled because the historic value of the structure will have been destroyed. If the 15-4885/125187 6 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 Mayor and City Council to frustrate the purpose of this Agreement, this Agreement shall be cancelled. No cancellation fee pursuant to Government Code Section 50286 shall be imposed if the Agreement is cancelled pursuant to this Section. 10. WAIVER. City does not waive any claim of default by Owner if City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in City's regulations governing historic properties are available to the City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder. 11. BINDING EFFECT OF AGREEMENT Owner hereby subjects the Historic Property to the covenants, conditions, and restrictions set forth in this Agreement. City and Owner hereby declare their specific intent that the covenants, conditions, and restrictions set forth herein shall be deemed covenants running with the land and shall inure to and be binding upon Owner's successors and assigns in title or interest to the Historic Property. Each and every contract, deed or other instrument hereinafter 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 set forth herein. 15-4885/125187 7 12. COVENANTS RUN WITH THE LAND. City and Owner hereby declare their understanding and intent that the burden of the covenants, reservations and restrictions set forth herein touch and concern the land in that they restrict development of the Historic Property. City and Owner hereby further declare their understanding and intent that the benefit of such covenants, reservations and restrictions touch and concern the land by enhancing and maintaining the cultural and historical characteristics and significance of the Historic Property for the benefit of the public and the Owner. 13. NOTICE. Any notice required to be given by the terms of this Agreement shall be provided at the address of the respective parties as specified below or at any other address as may be later specified by the parties hereto: City City of Huntington Beach City Manager's Office 2000 Main Street Huntington Beach, CA 92648 Owner Mark and Mama Williams 501 1CP Street Huntington Beach, CA 92648 14. EFFECT OF AGREEMENT. None of the terms, provisions or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors or assigns; nor shall such terms, provisions or conditions cause the parties to be considered joint venturers or members of any joint enterprise 15-4885/125187 8 15. INDEMNITY OF CITY. Owner shall defend, indemnify, and hold harmless City and its elected officials, officers, agents and employees from any actual or alleged claims, demands causes of action, liability, loss, damage, or injury to property or persons, including wrongful death, whether imposed by a court of law or by administrative action of any federal, state or local governmental agency, arising out of or incident to (i) the direct or indirect use, operation, or maintenance of the Historic Property by Owner or any contractor, subcontractor, employee, agent, lessee, licensee, invitee, or any other person, (1i) Owner's activities in connection with the Historic Property, 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 attorney's fees, legal expenses and costs incurred by each of them The costs, salaries and expenses of the City Attorney and members of his/her office in enforcing this Agreement on behalf of the City shall be considered as "attorneys' fees" for the purposes of this paragraph. Owner's obligation to indemnify shall survive the termination, cancellation, or expiration of this Agreement and shall not be restricted to insurance proceeds, if any received by City, its elected officials, employees, or agents. 16. BINDING UPON SUCCESSORS. All of the agreements, rights, obligations, covenants, reservations, and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns and all 154885/125187 9 persons acquiring any part or portion of the Historic Property, whether by operation of law or in any manner whatsoever. 17 ATTORNEYS' FEES AND LEGAL COSTS. In the event legal proceedings are brought by any parry 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, each parry shall bear its own attorneys' fees and legal costs, and the prevailing parting in such proceeding shall not be entitled to recover its attorneys' fees and legal costs from the non -prevailing party. 18. SEVERABILITY. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be effected thereby. 19 RECORDATION. No later than twenty (20) days after the Effective Date, City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Orange Owner shall provide written notice of the contract to the State Office of Historic Preservation within six (6) months of entering into the contract. 20 AMENDMENTS. This Agreement may be amended, in whole or in part, only by written recorded instrument executed by the parties hereto 15-4885/125187 10 21. GOVERNING LAW AND VENUE. This Agreement shall be construed and governed in accordance with the laws of the State of California. Any action at law or in equity brought by either of the parties hereto for the purpose of enforcing a right or rights provided for by this Agreement shall be tried in a court of competent jurisdiction in the County of Orange, State of Califorra, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings to any other county. 22. REQUIREMENTS RELATED TO TRANSFER OF HISTORIC PROPERTY In the event of any sale, transfer, assignment or conveyance of the Historic Property (herein referred to as a "Transfer"), the Owner agrees that, at least thirty (30) days prior to such Transfer, it shall give written notice to the City of such proposed Transfer, including the name(s) of the transferee(s). In addition, the Owner and the proposed transferee(s) shall enter into and deliver to City through the escrow for the Transfer of the Historic Property an assignment and assumption agreement in a form satisfactory to the City Attorney of City or other such evidence as may be satisfactory to the City that the transferee(s) has (have) assumed the Owner's obligations set forth in this Agreement. Upon the Transfer of the Historic Property and the assumption of the obligations hereunder by the transferee(s), the Owner's liability for performance shall be terminated as to any obligation to be performed hereunder after the date of such Transfer. 23. ENTIRETY. The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that 15-4885/125187 11 each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that parry or anyone acting on that parry's behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof REST OF PAGE INTENTIONALLY LEFT BLANK 154885/125187 12 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written. • r �ti lJ� Malk illiams (�/ 414�� Mana Williams Attachments CITY OF HUNTINGTON BEACH A California municipal corporation APPROVE TO FORM: Ci Attorney IA ED D PROVED ssistant City ger REV AND APPROVED IMCniger Exhibit A Legal Description of the Property Exlubit B Photographs of the Property Exhibit C Proposed Restoration, Repair, Maintenance or Rehabilitation Projects on Historic Property 15-4885/125187 13 ACKNOWLEDGMENT 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 Orange On December 14, 2015 before me, Lisa Kennedy, Notary Public, personally appeared, Mark Williams and Maria Williams who proved to me on the basis of satisfactory evidence to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. LISA D W KENNEOY Commission # 2006337 Z : �a Notary Public - California z. Z Orange County My Comm Ex Tres Feb 1. 2017 (Seal) 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. ACKNOWLEDGMENT STATE OF CALIFORNIA ss COUNTY OF ORANGE On December 14, 2015 before me, P. L. Esparza, Notary Public, personally appeared Joan L. Flynn, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal P. Lea ESPARZA Commission * 2032750 Notary Public - California i orange County 1 My Comm Ex res As 4, 2017 (Seal) 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. ACKNOWLEDGMENT STATE OF CALIFORNIA ) ) ss COUNTY OF ORANGE ) On 12/16/2015 before me, P. L. Esparza, Notary Public, personally appeared Jill Hardy who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which the person 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 ' P L ESPAR#t ZA Commission 2032750 nk WITNESS my hand and official seal. -r Notary PublIC - CaWOrnie Orange County My Comm E res 4 2017 X�-rlx' (Seal) (Notary ig ture) 0 1L4�/���T `� rJrdar fie r'+1 FSVC/rr 10 Lori 140. 1'ltitit f !1t CORDtD Wt. 7a noeorded in otrtofal Ftecotds. OtBnab c6unty Tom Dlafy, clettk-Arwc�ordl er M1 anti IN& blarkE Willam +9s ��������t��i��i���i��ll'.1;1i6.00 601 tot, SUetd 2wuwQ�d Di. Pl1) 0710 HuMnptoit Ooach, CA92048 i08 91 402 1 0,00 0 00 0,00 0,00 0.00 0.00 0-00 0 Od AYIL 024•101-18 SPW AW& PO WE fUt A£CMER9 USE MAIL TAX 41TATRMENTS TO: WCUMERYARYTRANSFCA TAX$-.----.'-0 T[ADaf![Con U t4 i�ty prorsarN fnr rail � f Mr. and Mrs. tdr}rk h. Vh arcs j 501loth Stteal Cta444t�onU,ottr,ssbxac»araywuFFrcpatYsrxt,wJ4d,0fi i� tiuntNVlon [coach. CA 9264$ Ccrrpuled cn Iho t cral3ara�on ar ra'�bt4as Furh er t�ncu7,trancai rtman'n3 et Ma trre N ss'o �T� Jr,.inhtihnnel nranlnre Arsrl�re r—.m...-.,�.-.� _'s►ya aetaad�,t,Qr �otets'am,•lratax—llhnA�•ne _ _ _ GRANT DEED �� Ot=mmun IyPropady Funds, R & 7 Mit. FORA VALUABLE CONSIDERATION recolpt of which Is hereby oCknO'Adged, MARK EDSON 1VILLKIS and MARIA LOAETAWILLIAMS,HUSBANDANDWE,AS,JOINTTE AMTS Hanby GRANT(S) TO MARK E WILLIAMS AND MARIA L. WILLIAMS, HUSBAND AND WIFE, AS COMMUNITY PROPERTY tho roof ptoporty in tho City of HU111-nglon Boach County of 0=0 Moto of Worms, descrbod o L000lly doscobed as: Lot 1 and 3 In Bock 610 pf the Hontie¢tOR Bosch 1.161 Street Soction, tl iho C,ty of Huntington Bosch. County of Orenge. State of CalW011110, os par map rewded in fwk 3, Pooes 43. of Misrelimeous Mops in the Offico of tho County Rocordor of sa'd Cwnly. Commonly kriftn os: b01 I& Streel, Hunlinplon Boom, Cohtrxns DOted ON IYtLLIMtS MARK ED VATF OF OALIFORMA COUNTY OF 4RAho6 I" be(cfe (� ILfORWA ARK me, fyjj ri ai+biy appesrod NARK EOS4tt 1Y1 Lw S Ord ► WILLIAA19, poraona'Jy sx&hn 0 rm (cr ptawi to mo on Po basis of aa'itrat'yory evlseace) to be tW pa(w9s) %foo n&%gs) itluo s0scnW to list 15'thl,1%S.Ftfrt4M and e,�mntctii2ed io t,+� that ha'bMsltsly lxAvtht P.6 da'+r4 irthlx�r,eulhtr etrt,arsN caFvat}tbsk arxl that by lmo- .01 stgnatuc{s) co v» hstrunwm' tho fvwxs) Or 1ho 90AY upon WON at Hhoch the t4r3G1IS)ACiOif oret:utaiiEA>�Sinrr.KA WfIRFU mfia%6and0F*01 31I blARIALORF.T4VILUM45�- 0ARA L. GARM0 COttM. x►3sbs71?4 stows( �uetWOLITOWA t}AAROE COUNTY v C BY CGAtt t%p i19.4L t005 PNs a," IxcQdY rlr24d i"I MAIL TAX STATEMENTS AS DIRECTED AB©VLI HB -1 Item S. - 43 t Ci f Huntington Beach 2000 MAIN STREET CALIFORNIA 92648 DEPARTMENT OF PLANNING AND BUILDING www.huntingtonbeachca.gov Planning_Division Building Division 714.536.5271 714,536,5241 July 17, 2015 NOTICE OF FILING STATUS Application; MILLS ACT NO.2015-002 (WILLIAMS RESIDENCE) Applicant/ Property Owner: Mark and Maria Williams, 501 10th St., Huntington Beach, CA 92648 Request. To participate in the Huntington Beach Mitls Act Historic Property Preservation Agreement Location: 501 1011' Street (northeast corner of 10t" St. and Pecan Ave.) d Albs Willi NOTICE IS HEREBY GIVEN that the Planning Division bas reviewed the above Mills Act application received and dated January 20, 2015, and`has accepted the Preservation Work Program and Proposed Timeline received and dated February 9, 2015. (Attachment No, 2) Please be advised that the Department of Planning and Building will forward your application to the City Managers Office for City Council action. Once a Mills Act contract has been approved by City Council, the requirements in Attachment No. 1 will be applicable. If you should have any questions or concerns regarding the processing of your application, please feel free to contact me by telephone of (714) 374-1553 or by email at jkelley r@surfcity-hb.org. Sincerely, J son Kelley Senior Plannei Attachments 1 Mills Act No 2016-002 Requirements 2 Preservation Work Program and Proposed Timehrie dated February 9, 2015 cc. lied A. Wilson, City Manager Ken Domer, Assistant City Manager Ten Baker, Assistant to the City Manager Scott Hess, Director of planning and Building Jane James, Planning Manager Mark Carnahan, Building manager Mad< and Maria Williams, Property Owner Project pile Item 8. - 44 uB -I ; 6- f MILLS ACT N0. 2015-002 ATTACHMENT NO. I MILLS ACT NO. 15-002 REQUIREMENTS: 1. The Preservation Work Program and Proposed Timeline dated and received February 9, 2015 shall be the approved yearly work program. 2. Every November, starting after the commencement date of the contract, the property owner shall submit the new property tax statement, annual receipts and a summary of the work performed to the Planning Division. 3. During the second year of the contract, a Building Division inspector will complete a field inspection to verify that two years of work have been completed. The property owner shall pay for a one hour inspection time. 4. Upon the ten year anniversary/conclusion of the contract, and upon each anniversary date, an additional (1) year shall automatically be added to the term of the agreement, unless a notice of nonrenewal is delivered as outlined in the Historic Preservation Agreement Section 3 r 4 xB _I ;;_ Item 8. - 45 Exhibit "C" FEB 09 Zn� PRESERVATION WORK PROGRAM AND PROPOSED TIME LIME DEr�t rr �Llt arrnfr7� Please list the improvements to take place over the next ten years in order of priority. UsteN work should be limited to stabilization and/or maintenance of the historic structure and/or repair of exterior, character -defining features of the historic property. State the anticipated casts of the improvements, including but not limited to materials, labor, permits, and fees. Anticipated construction must be equal or greater than tax savings Attach additional pages as needed to complete the information below. Year Proposed Project Estimated Cost ' Q 1� fil ' 10 d oo t 2.1 - oLa 5W - " 4 5} j `�t1�1 rEL idk (.f� if SQ© 7 010,000 �e 6 A R ff,, 10. (/6 Estimated Ten Year Total Costs Please mote the estimated cost of proposed restoration and maintenance activities must be equal orgreater than the estimated reduction in property taxes. ATTACHMENT NO. I Item 8. - 46 FIB _1>8_ PLEASE COMPLETE THIS INFORMATION RECORDING REQUESTED BY: AND WHEN RECORDED MAIL TO: City of Huntington Beach ATTN: Joan L. Flynn City Clerk's Office P. 0. Box 190 Huntington Beach CA 92648 TITLE OF DOCUMENT: Recorded in Official Records, Orange County Hugh Nguyen, Clerk -Recorder II 11111111 Ii 11111 1111 11111111 1111� 111111111111111111111111111 IN NO FEE *$ R 0 0 0 8 0 4 0 2 4 9$ 20150006424221:52 pm 12/21/15 65 405 Al2 26 0.00 0.00 0.00 0.00 75 00 0.00 0.00 0 00 Y HISTORIC PROPERTY PRESERVATION AGREEMENT CONTAINING COVENANTS, CONDITIONS AND RESTRICTIONS AFFECTING REAL PROPERTY BY AND BETWEEN THE CITY OF HUNTINGTON BEACH AND ERICH REISEN FOR THE REAL PROPERTY LOCATED AT 421 8TH STREET WITHIN THE CITY OF HUNTINGTON BEACH ('MILLS ACT CONTRACT') This dowment Is solely for the official business of the City of Huntlngton Beach. as contemplated under Government Code Sec. 6103 and should b a recorded free of dmVe. THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION (Aridifrnnal recnrdinn fPR annflpO HISTORIC PROPERTY PRESERVATION AGREEMENT CONTAINING COVENANTS, CONDITIONS AND RESTRICTIONS AFFECTING REAL PROPERTY BY AND BETWEEN THE CITY OF HUNTINGTON BEACH AND ERICH REISEN FOR THE REAL PROPERTY LOCATED AT 421 Bch STREET WITHIN THE CITY OF HUNTINGTON BEACH ("MILLS ACT CONTRACT") THIS AGREEMENT is made this /9 day of �ly6M-- , 2015, by and between the City of Huntington Beach, a municipal corporation ("City") and Erich Reisen ("Owner") WHEREAS, California Government Code Section 50280, et seq. allows cities the discretion to enter into contracts with the owners of qualified historic properties, as that term is defined in Government Code Section 50280.1, for the purpose of providing for the use, maintenance, protection, and restoration of such historic property so as to retain its characteristics as property of historic significance, and Owner holds fee title in and to that certain real property, together with associated structures and improvements thereon, generally located at the street address 421 8th Street, Huntington Beach, California ("Historic Property"). A legal description of the Historic Property is attached hereto as Exhibit "A" and incorporated herein by this reference; and By approving this Agreement, the City Council hereby designates the Historic Property as a Qualified Historic Property as defined by Resolution 2014 - 82, Section 5; and City and Owner desire to enter into this Agreement for the purpose of protecting and preserving the characteristics of historical significance of the Historic Property that help provide the community with its own unique civic identity and character; and Owner, in consideration for abiding by the terms of this Agreement, shall be entitled to qualify for a reassessment of valuation of the Historic Property, pursuant to the provisions of I s-4sssn25180 chapter 3, Part, 2, of Division 1 of the California Revenue and Taxation Code, and any corresponding adjustment in property taxes resulting therefrom, NOW, THEREFORE, the City and Owner in consideration of mutual covenants and conditions set forth herein, do hereby agree as follows: 1. EFFECTIVE DATE AND TERM OF AGREEMENT. This Agreement shall be effective and commence on October 1, 2015 ("Effective Date") and shall remain in effect for a minimum initial term of ten (10) years thereafter unless canceled by the City pursuant to Section 8 or 9 of this Agreement. 2. RENEWAL. Upon each anniversary date, beginning at the end of the initial ten year term ("Renewal Date"), an additional one (1) year shall automatically be added to the term of the Agreement unless a notice of nonrenewal is delivered as provided in Section 3 of this Agreement. 3. NONRENEWAL If either the Owner or City desires in any year not to renew this Agreement, Owner or City shall serve a written notice of nonrenewal upon the other parry in advance of the Renewal Date ("Notice of Nonrenewal"). The Notice of Nonrenewal shall be effective only if served by Owner upon City at least ninety (90) days prior to the Renewal Date, or if served by City upon Owner, the Notice of Nonrenewal shall be effective only if served upon Owner at least sixty (60) days prior to the Renewal Date. If either City or Owner serves a Notice of Nonrenewal in any year, this Agreement shall remain in effect for the balance of the term then remaining City shall notify the County of Orange of any nonrenewal of this Agreement. 2 154885/125180 4 OWNER PROTEST OF CITY NONRENEWAL. Within fifteen (15) days of Owner's receipt of the Notice of Nonrenewal from City, Owner may file with City a written protest of the Notice of Nonrenewal. Upon receipt of the written protest, the City Council shall set a hearing prior to the expiration of the Renewal Date of this Agreement. Owner may furnish the City Council with any information which Owner deems relevant and shall furnish the City Council with any information it may require. The City Council may, at any time prior to the annual Renewal Date, withdraw its Notice of Nonrenewal. 5. STANDARDS FOR HISTORICAL PROPERTY. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements, and restrictions: A. Owner shall preserve and maintain the characteristics of the cultural and historical significance of the Historic Property. Compliance or non-compliance with this section shall be determined by the Director of Planning and Building or his/her designee. In addition, Owner shall obtain any applicable permits necessary to protect, preserve, restore, and rehabilitate the Historic Property so as to maintain its historical and cultural significance. B Owner, when necessary as determined by the City, shall restore and rehabilitate the Historic Property to conform to the rules and regulations of the Office of Historic Preservation of the California Department of Parks and Recreation (http //ohp parks.ca.gov/9page_id=21410), the United States Secretary of the Interior's Standards for the Treatment of Historic Properties (http://www nps gov/tps/standards/rehabilitation.htm#Guidelines), and the State Historical Building Code The condition of the exterior of the Historic Property on the effective date of this 3 154885/125180 Agreement is documented in photographs attached as Exhibit `B" and incorporated herein by this reference. The Owner shall continually maintain the exterior of the Historic Property in the same or better condition as documented in Exhibit `B." C. Owner shall carry out specific restoration, repair, maintenance, and/or rehabilitation projects on the Historic Property, as outlined in the attached Exhibit "C," which is incorporated herein by this reference All such projects shall be undertaken and completed in keeping with the historic nature of the property. Projects may be interior or exterior, but must utilize all property tax savings over the ten (10) year contract period or according to the schedule for Exhibit "C." Each year during the term of this Agreement, Owner shall submit a work plan for implementation of the items listed on Exhibit "C" to City's Director of Planning and Building for possible modifications, review and approval. D. Property Tax relief afforded to Owner pursuant to Chapter 3, Part 2 of Division 1 of the California Revenue and Taxation Code will be determined solely by the Orange County Assessor. City makes no representations regarding the actual tax savings any person may realize by entering into this Agreement. 6. INSPECTIONS Upon reasonable advance notice and at Owner's expense, Owner shall allow an initial inspection and second year inspection by City inspectors of the City. Additionally, Owner shall allow reasonable periodic examinations, specific to where the work is being performed, of the interior and exterior of the Historic Property by representatives of the County Assessor, the State Department of Parks and Recreation, the State Board of Equalization and/or City, as may be necessary to determine Owner's compliance with the terms and provisions of this Agreement 4 15-4885/125180 Owner shall give priority to, and shall promptly abate, any city or state code violations related to zoning, health or safety issues. 7. PROVISIONS OF INFORMATION OF COMPLIANCE, YEARLY ADMINISTRATIVE FEE. Owner hereby agrees to furnish City with any and all information requested by City, which City deems necessary or advisable to determine eligibility of the Historic Property and compliance with the terms and provisions of this Agreement. Requested information may include, but not be limited to, required annual reports, as well as receipts documenting property maintenance and/or unprovement expenditures that equal or exceed annual estimated property tax savings. Owner shall also pay City a yearly administrative fee as outlined in City's Master Fee Resolution BREACH OF AGREEMENT; REMEDIES A. Notice of Breach; Opportunity to Cure If Owner breaches any provision of this Agreement, City may give written notice to Owner by registered or certified mail detailing Owner's violations. If such violation is not corrected to the reasonable satisfaction of City within thirty (30) days after the date of notice of violation, or within such a reasonable time as may be required to cure the violation (provided the acts to cure the violation are commenced within thirty (30) days and thereafter diligently pursued to completion), the City may, without further notice, declare Owner to be in breach of this Agreement. Upon City's declaration of Owner's breach, City may pursue any remedy available under local, state, or federal law, including those specifically provided for in this section. B. Remedy - Cancellation. City may cancel this Agreement if City determines, following a duly noticed public hearing in accordance with Government Code section 50285, that Owner breached any of the conditions of the Agreement, Owner allowed the 5 15-4885/125180 Historic Property to deteriorate to the point that it no longer meets the standards for a qualified historic property, or Owner failed to restore or rehabilitate the Historic Property in accordance with the terms of this Agreement as per Government Code 50284. If this Agreement is cancelled, under this paragraph, Owner shall pay a cancellation fee to the Office of the Auditor for the County of Orange as required by Government Code section 50286 The cancellation fee will be equal to 12 '/z percent of the current fair market value of the property as determined by the county assessor as though the property were free of the contractual restriction. C. Alternative Remedies. As an alternative to cancellation of this Agreement for Owner's breach of any condition, City may bring an action in court necessary to enforce this Agreement including, but not limited to, an action to enforce this Agreement by specific performance, injunction, or receivership 9. DESTRUCTION OF PROPERTY; EMINENT DOMAIN 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 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 Mayor and 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. 6 15-4885/125180 10. WAIVER. City does not waive any claim of default by Owner if City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in City's regulations governing historic properties are available to the City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder 11 BINDING EFFECT OF AGREEMENT. Owner hereby subjects the Historic Property to the covenants, conditions, and restrictions set forth in this Agreement City and Owner hereby declare their specific intent that the covenants, conditions, and restrictions set forth herein shall be deemed covenants running with the land and shall inure to and be binding upon Owner's successors and assigns in title or interest to the Historic Property. Each and every contract, deed or other instrument hereinafter 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 set forth herein. 12 COVENANTS RUN WITH THE LAND. City and Owner hereby declare their understanding and intent that the burden of the covenants, reservations and restrictions set forth herein touch and concern the land in that they restrict development of the Historic Property. City and Owner hereby further declare their understanding and intent that the benefit of such covenants, reservations and restrictions touch and concern the land by enhancing and maintaining the cultural and historical characteristics and sigmficance of the Historic Property for the benefit of the public and the Owner 7 15-4885/125180 13. NOTICE. Any notice required to be given by the terms of this Agreement shall be provided at the address of the respective parties as specified below or at any other address as may be later specified by the parties hereto: City: City of Huntington Beach City Manager's Office 2000 Main Street Huntington Beach, CA 92648 Owner: Erich Reisen 5874 Eagle Island West Vancouver, B C , V7WIV5, Canada 14. EFFECT OF AGREEMENT. None of the terms, provisions or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors or assigns; nor shall such terms, provisions or conditions cause the parties to be considered joint venturers or members of any joint enterprise. 15 INDEMNITY OF CITY. Owner shall defend, indemnify, and hold harmless City and its elected officials, officers, agents and employees from any actual or alleged claims, demands causes of action, liability, loss, damage, or injury to property or persons, including wrongful death, whether imposed by a court of law or by administrative action of any federal, state or local governmental agency, ansing out of or incident to (i) the direct or indirect use, operation, or maintenance of the Historic Property by Owner or any contractor, subcontractor, employee, agent, lessee, licensee, invitee, or any other person; (ii) Owner's activities in connection with the Historic Property, or from the enforcement of this Agreement. This indemnification includes, without limitation, the 8 15-4885/125180 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 attorney's fees, legal expenses and costs incurred by each of them. The costs, salaries and expenses of the City Attorney and members of his/her office in enforcing this Agreement on behalf of the City shall be considered as "attorneys' fees" for the purposes of this paragraph. Owner's obligation to indemnify shall survive the termination, cancellation, or expiration of this Agreement and shall not be restricted to insurance proceeds, if any received by City, its elected officials, employees, or agents. 16 BINDING UPON SUCCESSORS All of the agreements, rights, obligations, covenants, reservations, and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns and all persons acquiring any part or portion of the Historic Property, whether by operation of law or in any manner whatsoever. 17 ATTORNEYS' FEES AND 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, each parry shall bear its own attorneys' fees and legal costs, and the prevailing parting in such proceeding shall not be entitled to recover its attorneys' fees and legal costs from the non -prevailing party. 18 SEVERABILITY. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive 9 15-4885/125180 legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be effected thereby. 19. RECORDATION. No later than twenty (20) days after the Effective Date, City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Orange Owner shall provide written notice of the contract to the State Office of Historic Preservation within six (6) months of entering into the contract. 20. AMENDMENTS. This Agreement may be amended, in whole or in part, only by written recorded instrument executed by the parties hereto. 21. GOVERNING LAW AND VENUE This Agreement shall be construed and governed in accordance with the laws of the State of Califorma. 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 Orange, State of California, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings to any other county. 22. REQUIREMENTS RELATED TO TRANSFER OF HISTORIC PROPERTY In the event of any sale, transfer, assignment or conveyance of the Historic Property (herein referred to as a "Transfer"), the Owner agrees that, at least thirty (30) days prior to such Transfer, it shall give written notice to the City of such proposed Transfer, including the ' name(s) of the transferee(s). In addition, the Owner and the proposed transferee(s) shall enter into and deliver to City through the escrow for the Transfer of the Historic Property an 10 154885/125180 assignment and assumption agreement in a form satisfactory to the City Attorney of City or other such evidence as may be satisfactory to the City that the transferee(s) has (have) assumed the Owner's obligations set forth in this Agreement. Upon the Transfer of the Historic Property and the assumption of the obligations hereunder by the transferee(s), the Owner's liability for performance shall be terminated as to any obligation to be performed hereunder after the date of such Transfer. 23. ENTIRETY. The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that party's behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. REST OF PAGE INTENTIONALLY LEFT BLANK 11 154885/125180 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year fiist above written Lr, 4,,>, U,Qi 5t,, D N !hone 5PET 'ue North2H9 04-983-0148 Witnessed as to execution only: advice nPsthPr sought nor given. CITY OF HUNTINGTON BEACH A California municipal corporation Mayor City Clerk APPROVED AS TO FORM: City Attorney INITIATED AND APPROVED: Assistant City Manager REVIEWED AND APPROVED City Manager Attachments COUNTERPART Exhibit A• Legal Description of the Property Exhibit B: Photographs of the Property Exhibit C Proposed Restoration, Repair, Maintenance or Rehabilitation Projects on Historic Property 12 154885/125180 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written. C91"J la l Erich Reisen Attachments CITY OF HUNTINGTON BEACH A California municipal corporation Ar o, Ma or Ci lerk APPROVED FORM: rty ttorney h RQTATEDANT),-APPROVED. Assistant City -Manager DAPPROVED: 4W �/ Exhibit A• Legal Description of the Property Exhibit B Photographs of the Property Exhibit C Proposed Restoration, Repair, Maintenance or Rehabilitation Projects on Historic Property 12 15-4885/125180 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. ACKNOWLEDGMENT STATE OF CALIFORNIA ) ) ss COUNTY OF ORANGE ) On 12/16/2015 before me, P. L. Esparza, Notary Public, personally appeared Jill Hardy who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which the person 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. P L ESPARZA Commission # 2032750 WITNESS my hand and official seal Z :N, Notary Public - caNforela orange County My Conan. roa 1p 412017 �'�--- (Seal) (Notary §ig%&ure�j 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. ACKNOWLEDGMENT STATE OF CALIFORNIA ss COUNTY OF ORANGE On December 17, 2015 before me, P. L. Esparza, Notary Public, personally appeared Joan L. Flynn, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. P L ESPARZA Commission # 2032750 �i %My Notary Public - Calltornia Orange County Comm Ex Ui 4, 2017 (Seal) Branch -A 14,User 7IMG ( Comment Station Id _BZNX RECORDING REQUESM BY - First American Title AND NVI1EN RECORDED it AMTO- Erich Fischer 1404 William Avenue North Vancouver, British Cotumbia, Canada, V7646-2000 Order No. 3314281 Escrow No. 10-731 TS Parcel No 024-107-10 Recorded to Orrtalei Reaordic Orange County Tom Daly, Clerk -Recorder i IillailEl 111 li}9 �44u Ill ill i[I iiB II 9.00 2010000026202 02:25PM 01/19M0 108 402 002 2 04 496.75486760000003000.00000000 GRANT DEED TIT UNDERSIGNED HEREBY DECLARE THAT DOCUMEWAKY I RANSFER TAX IS 5973.50 computed on full value of property conveyed, or ❑ computed on full value less lions or encumbrances remaining at the time of sale - El unincorporated area of.' x Clty of Huntington }leach, and FOR A VALUABLE CONSIDCRATION, receipt of which is hereby acknowledged, HSBC Bank USA, National Association as Trustee for NAAC Mortgage Pass -Through Certdlcates Series 2007-1, herebrC,r%(s)to Erich Reisen amarried man and Glynn Fisher, a married man c as to an undivi� a 50% interest, as tenants in common the following aescrIDW I property in the County of Orange, State of California; 1 Lot 21 And 23, in block 408 of Huntington Beach Main Street section in the City of Hanturgion Brach, County of Orange, State of California, as per map recorded in Book 3 Page(s) 43 of Miscellaneous Maps In Abe Office of the County Recorder of said County, Date January 13, 20I0 t i HSBC Bank USA, National Association as Trustee COMPLETE LEGAL DESCRIi'iTON A7TAEIIFA AS IXHIBITtAI forNAAC Mott ass -Through Certificates Series 20 -1 Brent Greenup P Loan Docvmentatton By Wells Farg B A., Attornc act r STATE OF C�A } )SS ' COUNTY OF �� } beaNao ?Yublic,pers natlyappeartdwho proved to nie on the basis of sansfactmy evidence to be th��w. mt(s) �islare subscribed to the within Instrument and acknowledged to me that WsheAhoy exewteii the same in iuslba/their authorized capaclty(ies), and that by i rlier/their signatere(s) on the instrument the pason(sj or the rnrity upon behalf of which the person(s) acted, executed the instrument rateI certify under PENALTY OF PERJURY under the tabs of the State of that the foregoing paragraphs is true and i cnrreet 1V1131h"SS n y hand and o cial sect KIMBEEE K. COVEA Sugna Notary Public Frederick County Maryland M 'rAXSIATE7AEPifTD My Commission Expires Apr 10, 20t3 REMNADDRESSAWK ORANGE,CA Page [ of 2 Printed on 3/18/2015 9 48 39 AM Docttntent DD 2010 26202 Item 8. - 70 xB -, h?- Branch A 14,User JIMG Comment Station Id BZNX EXHIBIT A Order Number, O-SA•3314281 (3) Page Number; 6 LEGAL DESCRIPTION Real property in the City of Huntington Beach, County of Orange, State of California, described as follows; LOT 21 AND 23 IN BLOCK 408 OF HUNTINGTON BEACH MAIN STREET SECTION IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 3, PAGE(S) 43 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. APN. 024-107-10 FirsfMledon 77tfe ORANGE,CA Page 2 of 2 Panted on 3/18I2015 9 48.39 AM Document- DD 2010 26202 HB - I 63- Item 8.' - 71 t 7f{y137 ! tt yyt Nql- �sy� '�,'i f'� �'S�.IeL-�t`y� ���'-�S�S�+i��•��5 �� nl vis y. 7� \ - _ ',� 'r C : zr',:_� n - h i!6."'�r�• � j_4..�: .. J�:_. �r 3/,r��.f-t..F t-,�,t .3 , t' ��. `r_`�.X� :��`�'_s .-., , _ � �sJ1 {r tit �IsL TI S I r;, 4 e d ci rri ,, , 31 ,?;,; 44 ;��..t �' erg �• �jr _ `'��1j1 i.'•�. � ^��1 t�:' � ° f �+ rk Y i , � :I �:� � lf'ra'���` yy+'�r'' I:t• :• J����{��I���� }�t�s 7 •I � 1 !t'v ! S N{ ii`j+ 1 `'•.-� .�� r _. .. ,: .. ..i-��'�.��V��l!T�.fL��fil7+.;i4-tt ��ti '�s'YfSee^2'? r1 '' _ -°, 1= ��tv. City of Huntington Beach Z:,, 2000 MAIN STREET CALIFORNIA 42648 DEPARTMENT OF PLANNING AND BUILDING wwww, iunting_tonbeacllca.gov Planning Division Building Division 714.536.5271 714.536.5241 July 17, 2015 NOTICE OF FILING STATICS Application; Applicant/ Property Owner: Request: Location: MILLS ACT NO.20'15-003 (EVANGALINE HOTEL) Dear Mr Reisen. Erich Reisen, 5874 Eagle Island, West Vancouver B C., V7W1V5, Canada Request to participate in the Huntington Beach Mills Act Historic Property Preservation Agreement. 421 8dh Street (northwest corner of 81h and Pecan Ave) NOTICE IS HEREBY GIVEN that the Planning Division has reviewed the above Mills Act application received and dated March 30, 2016, and has accepted the Preservation Work Program and Proposed Timeline received and dated March 30, 2015. (Attachment No 2) Please be advised that the Department of Planning and Building will forward your application to the City Manager's Office foi City Council action. Once a Mills Act contract has been approved by City Council, the requirements in Attachment No. 1 will be applicable. If you should have any questions or concerns regarding the processing of your application, please feel fi ee to contact me by telephone at (714) 374-1553 or by email at jkelley@surfcity-hb org Sincerely, Jason Kelley Senioi Planner Attachments, 1 Mills Act No. 2015-003 Requirements 2 Preservation Work Program and Proposed Timeline dated March 30, 2015 cc Fred A. Wilson City Manager Ken Domer, Assistant City Manager 'Fen Baker, Assistant to the City Manager Scott Hess, Director of planning and Building Jane James, Planning Manager Mark Carnahan, Building manager Erich Reisen, Property Owner Project File Item 8. - 72 FIB -164- 0 � I c t MILLS ACT NO. 2015-003 ATTACHMENT NO.1 MILLS ACT NO. 15-002 REQUIREMENTS: 1. The Preservation Work Program and Proposed Timeline dated and received March 30, 2015 shall be the approved yearly work program 2. Every November, starting after the commencement date of the contract, the property owner shall submit the new property tax statement, annual receipts and a summary of the work performed to the Planning Division ' 3. During the second year of the contract, a Building Division inspector will complete a field inspection to verify that two years of work have been completed. The property owner shall pay for a one hour inspection time. 4 Upon the ten year anniversaryfconclusion of the contract, and upon each anniversary date, an additional (1) year shall automatically be added to the term of the agreement, unless a notice of nonrenewal is delivered as outlined in the Historic Preservation Agreement Section 3. ---------_----- ug -, 65_ Item 8. - 73 RECEIVED Exhibit "C" .BAR 20,5 PRESERVATION WORK PROGRAM AND PROPOSED TIME, L. Of Planning & S . utrding Please list the improvements to take place over the next ten years in order of priority. Listed work should be limited to stabilization andlor maintenance of the historic structure and/or repair of exterior, character -defining features of the historic property. State the anticipated costs of the improvements, including but not limited to materials, labor, permits, and fees. Anticipated construction must be equal or greater than tax savings. Attach additional pages as needed to complete the information below. Year Proposed Pro'ect Estimated Cost 1 'Q0 � � �74 �x.�t�l�ht;c i'I.�C!i�T "'� i-"fLGZ�"T �i-I'¢ua`Ck �.�• r�,�E� �PulJ (� 2. „y7� �% %��iC•v� I�h t Cyr*[ GT �`V .t7LlcT 4vlt.��. -Cu.SiC��( ref tom, Siaip� KAt,i�Y.al.Gt � 49000 (� 1rt Y�llw� rt>tiD . IT>i� � �"�4-�i'�i � e-ttS t?�'L 1l�ttar `�i�'•Y% - "� ----�---,. 5. r, [� �i yt ti� c�� nci Cc-�t.k a v-c-i • cG 4 ? U tz�•' rz iZ r iZ en > I-6zR -4e1l.41t- t,00 8� LctC 2-r CI t��l t"� l �, "R, A Z— i Estimated Ten Year Total Costs Please note the estimated cost of proposed restoration and maintenance activities must be equal orgreater than the estimated reduction in property taxes. Item 8. - 74 xB - i 66- Exhibit "C' MILLS ACT PROGRAM LIST OF ACCEPTABLE IMPROVEMENTS Improvements eligible for inclusion to this contract may include, but are not limited to the following: ➢ Access modifications— Exterior ➢ Access modifications — Interior ➢ Accessory Structure — Repair or Replace with Historically Accurate Structure ➢ Annual Maintenance and Repairs ➢ Appliance Ventilation ➢ Architectural Detail — Remove Non -historic Features and Restore to Original ➢ Architectural Trim — Repair or Replace with Historically Accurate ➢ Balcony/Decks — Install New Railings to Code ➢ Balcony/Decks — Repair or Replace with Historically Accurate ➢ Chimney— Inspect and clean ➢ Chimney — Repair or Rebuild with Historically Accurate ➢ Code Compliance Repairs ➢ Column — Repair, Rebuild, or Replace with Historically Accurate ➢ Corbels/Structural Brackets — Repair or Replace with Historically Accurate ➢ Door/Entry — Repair or Replace with Historically Accurate ➢ Door/Hardware — Repair or Replace with Historically Accurate ➢ Door/Screen — Repair or Replace with Historically Accurate ➢ Drain for Deck — Repair, Replace, or New Installation ➢ Dry Rot — Remove, Repair, or Replace Structural or Architectural Element with Historically Accurate ➢ Eaves and Overhangs — Repair or Replace with Historically Accurate ➢ Electrical — install Ground and Service Entry ➢ Electrical — Install New Circuits ➢ Electrical — Install New Service Lines to Garage ➢ Electrical — Rewire and upgrade Service ➢ Electrical Fixtures — Repair or Replace with Historically Compatible ➢ Electrical Outlets — Repair, Replace, or Install New ➢ Flashing — Repair or Replace ➢ Foundation — Perform Bolting and Seismic Work ➢ Foundation — Repair, Rebuild, or Replace with Historically Accurate Item 8. - 78 HB -170- Exhibit "C" MILLS ACT PROGRAM LIST OF ACCEPTABLE IMPROVEMENTS ➢ Windows (Screens and Hardware) — Repair, Replace, or Install New Historically Compatible hB -171- Item 8. - 79 Esparza, Patty From: Dombo, Johanna Sent: Tuesday, December 22, 2015 8 09 AM To: Esparza, Patty Subject: RE 3 Agreement - Mills Act Yes, I'll take care of this Thank you From: Esparza, Patty Sent: Monday, December 21, 2015 5 38 PM To: Dombo, Johanna Subject: 3 Agreement - Mills Act Hi Johanna —just to be certain nothing falls through the cracks at this point, you will be handling getting the 3 recorded agreements to the proper county departments for their tax reduction, correct? Patty Esparza, CMC Senior Deputy City Clerk City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 (714) 536-5260 Dept ID AD 15-032 Page 1 of 3 Meeting Date 10/19/2015 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 10/19/2015 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A Wilson, City Manager PREPARED BY: Teri Baker, Assistant to the City Manager SUBJECT: Approve and authorize execution of three (3) separate Mills Act Agreements between the City of Huntington Beach and Joseph Santiago, Mark and Maria Williams, and Erich Reisen for the purpose of providing property tax relief for owners of qualified properties who wish to use the savings to preserve/restore their historic property Statement of Issue On November 3, 2014, the City Council adopted Resolution No 2014-82 establishing the Mills Act Program The Mills Act Program provides an economic incentive to encourage the preservation of historic buildings Applications were accepted between January and March of this year, three were submitted for review and approval Financial Impact Negligible amount of property tax loss Recommended Action A) Approve and authorize the Mayor and City Clerk to execute the "Historic Preservation Agreement Containing Covenants, Conditions and Restrictions Affecting Real Property By and Between the City of Huntington Beach and Joseph Santiago for the Real Property Located at 403 10th Street Within the City of Huntington Beach ("Mills Act Contract")," and, B) Approve and authorize the Mayor and City Clerk to execute the "Historic Preservation Agreement Containing Covenants, Conditions and Restrictions Affecting Real Property By and Between the City of Huntington Beach and Mark and Maria Williams for the Real Property Located at 501 10th Street Within the City of Huntington Beach ("Mills Act Contract")," and, C) Approve and authorize the Mayor and City to execute the "Historic Preservation Agreement Containing Covenants, Conditions and Restrictions Affecting Real Property By and Between the City of Huntington Beach and Erich Reisen for the Real Property Located at 421 8th Street Within the City of Huntington Beach ("Mills Act Contract") " Alternative Action(s) Do not approve one or more of the agreements and direct staff accordingly Analysis In 1972, the State of California enacted California Government Code Article 12, Section 50280, more commonly known as the "Mills Act " The Mills Act was enacted as an economic incentive program to encourage the preservation of historic buildings This legislation provides property tax HB -9 3- Item 8. - I Dept ID AD 15-032 Page 2 of 3 Meeting Date 10/19/2015 relief for owners of qualified historic properties who contract with the local government to abide by reasonable preservation requirements The agreement between the property owner and the City allows the property to be assessed using a different methodology, which results in a reduction in property taxes paid by the property owner Over one hundred (100) cities throughout California have adopted Mills Act programs, including approximately nine (9) in Orange County The program is strictly voluntary and does not have any impact on those historic property owners who do not wish to participate The Mills Act requires property owners to enter into a ten (10) year agreement with the City Property owners may save 50% or more on their property tax bill The savings must be used toward renovation and maintenance The City savings realized by the property owner The savings by determining certain key elements calculated differently Factors include • Gross Income - Fair Rental Value • Maintenance Costs will lose sixteen (16) percent of the property tax County Assessor's Office calculates the actual Commercial and Residential properties are • Interest Rate as determined annually by the Board of Equalization • Risk — set by Mills ACT Statute (4% residential, 2% commercial) • Amortization Rate On November 3, 2014, the City Council adopted Resolution No 2014-82 establishing a Mills Act Program for Huntington Beach A summary of the program is provided below • Up to ten (10) eligible applications will be accepted each year between January 1 and March 31 on a first -come -first -served basis and submitted to the City Council for approval Approved agreements will be filed with the County by December in order to meet the property tax deadlines for a tax reduction in the following year Eligibility will be limited to the 260 properties identified in the Draft Huntington Beach Historic Context and Survey Report (Appendix B — Landmarks List as updated or amended) or any Federal or State official register of historically significant sites, places, and landmarks • The application fee of $500 (as established in the Master Fee Resolution) will be paid at the time of application and if for any reason an agreement will not be entered into, a portion of the fee will be refunded based on the amount of staff time spent on the application to that point In addition to approving the Resolution No 2014-82, the City Council also approved the template of the ten-year "Historic Property Preservation Agreement" between the City and property owners who wish to participate in the program The agreement specifies the standards required for property improvement, required inspections of the work by the City, provisions for annual compliance, and remedies for breach of such agreement Three property owners submitted applications during the enrollment period January — March 2015 All three have been reviewed and approved by the Planning and Building Department As such, the Historic Property Agreements between the City and each party are being presented to the City Council for approval Once approved, these agreements must be filed with the County of Orange Tax Assessor's Office no later than December 31, 2015, in order for the property owners to receive the property tax reduction in 2016 Item 8. - 2 HB -94- Dept ID AD 15-032 Page 3 of 3 Meeting Date 10/19/2015 As required in the agreement, property owners will be responsible to furnish any Information the City deems necessary to determine ongoing compliance with the terms and provisions of the agreement Environmental Status The Mills Act program is not subject to the California Environmental Quality Act pursuant to Section 15061(b)(3) because it can be seen with certainty that there is no possibility that it will have a significant effect on the environment Strategic Plan Goal Enhance and maintain infrastructure Attachment(s) 1 Historic Preservation Agreement Containing Covenants, Conditions and Restrictions Affecting Real Property By and Between the City of Huntington Beach and Joseph Santiago for the Real Property Located at 403 10th Street Huntington Beach, CA 92648 2 Historic Preservation Agreement Containing Covenants, Conditions and Restrictions Affecting Real Property By and Between the City of Huntington Beach and Mark and Maria Williams for the Real Property Located at 501 10th Street Huntington Beach, CA 92648 3 Historic Preservation Agreement Containing Covenants, Conditions and Restrictions Affecting Real Property By and Between the City of Huntington Beach and Erich Reisen for the Real Property Located at 421 8th Street Huntington Beach, CA 92648 HB -95- Item 8. - 3 4 r �� i Al- ACH ?nEN — r_' HISTORIC PROPERTY PRESERVATION AGREEMENT CONTAINING COVENANTS, CONDITIONS AND RESTRICTIONS AFFECTING REAL PROPERTY BY AND BETWEEN THE CITY OF HUNTINGTON BEACH AND JOSEPH SANTIAGO FOR THE REAL PROPERTY LOCATED AT 40310' STREET WITHIN THE CITY OF HUNTINGTON BEACH ("MILLS ACT CONTRACT") THIS AGREEMENT is made this /9 771tday of &?j , 2015, by and between the City of Huntington Beach, a municipal corporation ("City") and Joseph Santiago ("Owner") WHEREAS, California Government Code Section 50280, et. seq. allows cities the discretion to enter into contracts with the owners of qualified historic properties, as that term is defined in Government Code Section 50280 1, for the purpose of providing for the use, maintenance, protection, and restoration of such historic property so as to retain its characteristics as property of historic significance; and Owner holds fee title in and to that certain real property, together with associated structures and improvements thereon, generally located at the street address 403 1Od' Street, Huntington Beach, California ("Historic Property"). A legal description of the Historic Property is attached hereto as Exhibit "A" and incorporated herein by this reference; and By approving this Agreement, the City Council hereby designates the Historic Property as a Qualified Historic Property as defined by Resolution 2014 - 82, Section 5; and City and Owner desire to enter into this Agreement for the purpose of protecting and preserving the characteristics of historical significance of the Historic Property that help provide the community with its own unique civic identity and character, and Owner, in consideration for abiding by the terms of this Agreement, shall be entitled to qualify for a reassessment of valuation of the Historic Property, pursuant to the provisions of 15-4885/125162 chapter 3, Part, 2, of Division 1 of the California Revenue and Taxation Code, and any corresponding adjustment in property taxes resulting therefrom, NOW, THEREFORE, the City and Owner in consideration of mutual covenants and conditions set forth herein, do hereby agree as follows: 1 EFFECTIVE DATE AND TERM OF AGREEMENT. This Agreement shall be effective and commence on October 1, 2015 ("Effective Date") and shall remain in effect for a minimum initial term of ten (10) years thereafter unless canceled by the City pursuant to Section 8 or 9 of this Agreement. 2. RENEWAL Upon each anniversary date, beginning at the end of the initial ten year term ("Renewal Date"), an additional one (1) year shall automatically be added to the term of the Agreement unless a notice of nonrenewal is delivered as provided in Section 3 of this Agreement 3 NONRENEWAL If either the Owner or City desires in any year not to renew this Agreement, Owner or City shall serve a written notice of nonrenewal upon the other party in advance of the Renewal Date ("Notice of Nonrenewal") The Notice of Nonrenewal shall be effective only if served by Owner upon City at least ninety (90) days prior to the Renewal Date, or if served by City upon Owner, the Notice of Nonrenewal shall be effective only if served upon Owner at least sixty (60) days prior to the Renewal Date. If either City or Owner serves a Notice of Nonrenewal in any year, this Agreement shall remain in effect for the balance of the term then remaining. City shall notify the County of Orange of any nonrenewal of this Agreement. 2 154885/125162 4. OWNER PROTEST OF CITY NONRENEWAL. Within fifteen (15) days of Owner's receipt of the Notice of Nonrenewal from City, Owner may file with City a written protest of the Notice of Nonrenewal. Upon receipt of the written protest, the City Council shall set a hearing prior to the expiration of the Renewal Date of this Agreement Owner may furnish the City Council with any information which Owner deems relevant and shall furnish the City Council with any information it may require. The City Council may, at any time prior to the annual Renewal Date, withdraw its Notice of Nonrenewal. 5. STANDARDS FOR HISTORICAL PROPERTY. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements, and restrictions: A. Owner shall preserve and maintain the characteristics of the cultural and historical significance of the Historic Property Compliance or non-compliance with this section shall be determined by the Director of Planning and Building or his/her designee in accordance with the standards listed in Subsection `B" below. In addition, Owner shall obtain any applicable permits necessary to protect, preserve, restore, and rehabilitate the Historic Property so as to maintain its historical and cultural significance. B. Owner, when necessary as determined by the City, shall restore and rehabilitate the Historic Property to conform to the rules and regulations of the Office of Historic Preservation of the California Department of Parks and Recreation (http://ohp.parks.ca.gov/?page_id=21410), the United States Secretary of the Interior's Standards for the Treatment of Historic Properties (http://www.nps.gov/tps/standards/rehabilitation.htm#Guidelines), and the State Historical 3 15-4885/125162 Building Code. The condition of the exterior of the Historic Property on the effective date of this Agreement is documented in photographs attached as Exhibit `B" and incorporated herein by this reference. The Owner shall continually maintain the exterior of the Historic Property in the same or better condition as documented in Exhibit `B." C. Owner shall carry out specific restoration, repair, maintenance, and/or rehabilitation projects on the Historic Property, as outlined in the attached Exhibit "C," which is incorporated herein by this reference. All such projects shall be undertaken and completed in keeping with the historic nature of the property Projects may be interior or exterior, but must utilize all property tax savings over the ten (10) year contract period or according to the schedule for Exhibit "C " Each year during the term of this Agreement, Owner shall submit a work plan for implementation of the items listed on Exhibit "C" to City's Director of Planning and Building for possible modifications, review and approval. D. Property Tax relief afforded to Owner pursuant to Chapter 3, Part 2 of Division 1 of the California Revenue and Taxation Code will be determined solely by the Orange County Assessor. City makes no representations regarding the actual tax savings any person may realize by entering into this Agreement. 6. INSPECTIONS. Upon reasonable advance notice and at Owner's expense, Owner shall allow an initial inspection and second year inspection by City inspectors of the City. Additionally, Owner shall allow reasonable periodic examinations, specific to where the work is being performed, of the interior and exterior of the Historic Property by representatives of the County Assessor, the State Department of Parks and Recreation, the State Board of Equalization and/or City, as may be necessary to determine Owner's compliance with the terms and provisions of this Agreement. 0 154885/125162 Owner shall give priority to, and shall promptly abate, any city or state code violations related to zoning, health or safety issues. 7. PROVISIONS OF INFORMATION OF COMPLIANCE; YEARLY ADMINISTRATIVE FEE. Owner hereby agrees to furnish City with any and all information requested by City, which City deems necessary or advisable to determine eligibility of the Historic Property and compliance with the terms and provisions of this Agreement. Requested information may include, but not be limited to, required annual reports, as well as receipts documenting property maintenance and/or improvement expenditures that equal or exceed annual estimated property tax savings. Owner shall also pay City a yearly administrative fee as outlined in City's Master Fee Resolution. BREACH OF AGREEMENT; REMEDIES. A. Notice of Breach; Opportunity to Cure. If Owner breaches any provision of this Agreement, City may give written notice to Owner by registered or certified mail detailing Owner's violations. If such violation is not corrected to the reasonable satisfaction of City within thirty (30) days after the date of notice of violation, or within such a reasonable time as may be required to cure the violation (provided the acts to cure the violation are commenced within thirty (30) days and thereafter diligently pursued to completion), the City may, without further notice, declare Owner to be in breach of this Agreement. Upon City's declaration of Owner's breach, City may pursue any remedy available under local, state, or federal law, including those specifically provided for in this section B. Remedy- Cancellation. City may cancel this Agreement if City determines, following a duly noticed public hearing in accordance with Government Code section 50285, that Owner breached any of the conditions of the Agreement, Owner allowed the 15-4885/125162 Historic Property to deteriorate to the point that it no longer meets the standards for a qualified historic property, or Owner failed to restore or rehabilitate the Historic Property in accordance with the terms of this Agreement as per Government Code 50284. If this Agreement is cancelled, under this paragraph, Owner shall pay a cancellation fee to the Office of the Auditor for the County of Orange as required by Government Code section 50286. The cancellation fee will be equal to 12 %2 percent of the current fair market value of the property as determined by the county assessor as though the property were free of the contractual restriction. C. Alternative Remedies. As an alternative to cancellation of this Agreement for Owner's breach of any condition, City may bring an action in court necessary to enforce this Agreement including, but not limited to, an action to enforce this Agreement by specific performance, injunction, or receivership. 9. DESTRUCTION OF PROPERTY: EMINENT DOMAIN. 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 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 Mayor and 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. 6 15-4885/125162 City does not waive any claim of default by Owner if City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in City's regulations governing historic properties are available to the City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder. 11 BINDING EFFECT OF AGREEMENT. Owner hereby subjects the Historic Property to the covenants, conditions, and restrictions set forth in this Agreement. City and Owner hereby declare their specific intent that the covenants, conditions, and restrictions set forth herein shall be deemed covenants running with the land and shall inure to and be binding upon Owner's successors and assigns in title or interest to the Historic Property Each and every contract, deed or other instrument hereinafter 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 set forth herein. 12 COVENANTS RUN WITH THE LAND. City and Owner hereby declare their understanding and intent that the burden of the covenants, reservations and restrictions set forth herein touch and concern the land in that they restrict development of the Historic Property. City and Owner hereby further declare their understanding and intent that the benefit of such covenants, reservations and restrictions touch and concern the land by enhancing and maintaining the cultural and historical characteristics and significance of the Historic Property for the benefit of the public and the Owner. 7 154885/125162 13. NOTICE Any notice required to be given by the terms of this Agreement shall be provided at the address of the respective parties as specified below or at any other address as may be later specified by the parties hereto: City: City of Huntington Beach City Manager's Office 2000 Main Street Huntington Beach, CA 92648 Owner- Joseph Santiago 403 10 h Street Huntington Beach, CA 92648 14. EFFECT OF AGREEMENT. None of the terms, provisions or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors or assigns; nor shall such terms, provisions or conditions cause the parties to be considered joint venturers or members of any joint enterprise. 15. INDEMNITY OF CITY Owner shall defend, indemnify, and hold harmless City and its elected officials, officers, agents and employees from any actual or alleged claims, demands causes of action, liability, loss, damage, or injury to property or persons, including wrongful death, whether imposed by a court of law or by administrative action of any federal, state or local governmental agency, ansing out of or incident to (i) the direct or indirect use, operation, or maintenance of the Historic Property by Owner or any contractor, subcontractor, employee, agent, lessee, licensee, invitee, or any other person, (ii) Owner's activities in connection with the Historic Property, or from the enforcement of this Agreement. This indemnification includes, without limitation, the 8 15-4885/125162 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 attorney's fees, legal expenses and costs incurred by each of them. The costs, salaries and expenses of the City Attorney and members of his/her office in enforcing this Agreement on behalf of the City shall be considered as "attorneys' fees" for the purposes of this paragraph. Owner's obligation to indemnify shall survive the termination, cancellation, or expiration of this Agreement and shall not be restricted to insurance proceeds, if any received by City, its elected officials, employees, or agents. 16. BINDING UPON SUCCESSORS. All of the agreements, rights, obligations, covenants, reservations, and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns and all persons acquiring any part or portion of the Historic Property, whether by operation of law or in any manner whatsoever. 17. ATTORNEYS' FEES AND LEGAL COSTS. In the event legal proceedings are brought by any parry 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, each party shall bear its own attorneys' fees and legal costs, and the prevailing parting in such proceeding shall not be entitled to recover its attorneys' fees and legal costs from the non -prevailing party. 18 SEVERABILITY. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive 9 15-4885/125162 legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be effected thereby. 19. RECORDATION. No later than twenty (20) days after the Effective Date, City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Orange. Owner shall provide written notice of the contract to the State Office of Historic Preservation within six (6) months of entering into the contract. 20. AMENDMENTS. This Agreement may be amended, in whole or in part, only by written recorded instrument executed by the parties hereto. 21. GOVERNING LAW AND VENUE. This Agreement shall be construed and governed in accordance with the laws of the State of California. Any action at law or in equity brought by either of the parties hereto for the purpose of enforcing a right or rights provided for by this Agreement shall be tried in a court of competent junsdiction in the County of Orange, State of California, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings to any other county. 22. REQUIREMENTS RELATED TO TRANSFER OF HISTORIC PROPERTY In the event of any sale, transfer, assignment or conveyance of the Historic Property (herein referred to as a "Transfer"), the Owner agrees that, at least thirty (30) days prior to such Transfer, it shall give written notice to the City of such proposed Transfer, including the name(s) of the transferee(s). In addition, the Owner and the proposed transferee(s) shall enter into and deliver to City through the escrow for the Transfer of the Historic Property an 10 15-4885/125162 assignment and assumption agreement in a form satisfactory to the City Attorney of City or other such evidence as may be satisfactory to the City that the transferee(s) has (have) assumed the Owner's obligations set forth in this Agreement. Upon the Transfer of the Historic Property and the assumption of the obligations hereunder by the transferee(s), the Owner's liability for performance shall be terminated as to any obligation to be performed hereunder after the date of such Transfer. 23. ENTIRETY. The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that party's behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof REST OF PAGE INTENTIONALLY LEFT BLANK 11 154885/125162 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written. R IrD APPROVED: C67Wiger Attachments Exhibit A: Legal Description of the Property Exhibit B: Photographs of the Property Exhibit C: Proposed Restoration, Repair, Maintenance or Rehabilitation Projects on Historic Property 12 154885/125162 Legal Description LOT 1 AND 3 IN BLOCK 410 OF HUNTINGTON BEACH MA[N STREET SECTION, IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 3, PAGE 43 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THEREFROM ALL QIL, GAS, MINERALS AN12 QTHER HYDROCARBON_ SUUBSTAN-CES. LYING BELOW A DEPTH OF 500 FEET FROM THE SURFACE OF SAID PROPERTY, BUT WITH NO RIGHT OF SURFACE- ENTRY, AS PROVIDED IN DEEDS OF RECORD. Item 8. - 16 MB -108- s �� X Lu i 0 S _ _ I I I�il I i I i —_------._..-_._�--_— HB -109- 1 LD o ME -0 .... :!5 liwl .4: W �g �N Item 8. - 18 Hti -1 iu- `i}V Jij2/ \t`11. �tt•�{ s_z, �tU.. y. ,,. Vl \�"\+ `j .). [6- .%f.' 1•. 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C e c� + e ttr S r r r r - � F1 Item 8. - 28 xB -1 2o- Exhibit "C" PRESERVATION WORK PROGRAM AND PROPOSED TIME LINE PIease list the improvements to take place over the next ten years in order of priority. Listed work should be limited to stabilization and/or maintenance of the historic structure and/or repair of exterior, character -defining features of the historic property. State the anticipated costs of the improvements, including but not limited to materials, labor, permits, and fees. Anticipated construction must be equal or greater than tax savings. Attach additional pages as needed to complete the information below. Year Pro osed Pro ect r Es ima ed Cost � 5t B���UJID 5 PEP; A� t-i,JQS'TV QI -t '2.vc;v 'a --Art �► � ` 1�C�.�=-- nlC� t ��►��t.r.n'i� o:,� �� / �` �`� 2. �.Art�' i trvb'- (�CrGa OP , ' Z,oCC EiG� L• '�.`� tS M�L1� 1_Cr2cv 00C) 3. 4. 5 t D(l�n� WuAt-e -1 �'y{ 5..7`" C! t' t70 U `-�-+ . Jet/-f�Jc _ / oo �'�UIC-tVe-ateF'C-(1MQ-S-Fr&VAIIJQn Z�ti 3 5. ,U'4-o1v tatj -C--PM ft / C UG 6. t��C�� S'C-2i11�F L�^�C-S� ��1iG-f?� 2 f/00 �Nl` �VNt�t��(a, 1�Si%��t.� �� c�7 �' i 1 M tv ( psu ►c.p vs �i i STh(( L� .7 t�—� 7. CM (ram - 2C—P�u L- t) vJ I,t t 5 i. A�c c���A � T'7 000 8. 1a. Estimated Ten Year Total Costs 000 It f Please note the estimated cost of proposed restoration and maintenance activities must be equal or greater than the estimated reduction in property taxes HB - 12 1 - Item 8. - 29 An Iff— AM Aria AT C ENT #2 I m II HISTORIC PROPERTY PRESERVATION AGREEMENT CONTAINING COVENANTS, CONDITIONS AND RESTRICTIONS AFFECTING REAL PROPERTY BY AND BETWEEN THE CITY OF HUNTINGTON BEACH AND MARK AND MARIA WILLIAMS FOR THE REAL PROPERTY LOCATED AT 501 10`b STREET WITHIN THE CITY OF HUNTINGTON BEACH ("MILLS ACT CONTRACT") THIS AGREEMENT is made this Z9 day of 0 e7-0 ,&"7Z, , 2015, by and between the City of Huntington Beach, a municipal corporation ("City") and Mark and Maria Williams ("Owner"). WHEREAS, California Government Code Section 50280, et. seq. allows cities the discretion to enter into contracts with the owners of qualified historic properties, as that term is defined in Goverrunent Code Section 50280.1, for the purpose of providing for the use, maintenance, protection, and restoration of such historic property so as to retain its characteristics as property of historic significance; and Owner holds fee title in and to that certain real property, together with associated structures and improvements thereon, generally located at the street address 501 1 Oth Street, Huntington Beach, California ("Historic Property"). A legal description of the Historic Property is attached hereto as Exhibit "A" and incorporated herein by this reference; and By approving this Agreement, the City Council hereby designates the Historic Property as a Qualified Historic Property as defined by Resolution 2014 - 82, Section 5, T me City and Owner desire to enter into this Agreement for the purpose of protecting and preserving the characteristics of historical significance of the Historic Property that help provide the community with its own unique civic identity and character; and 154885/125187 Owner, in consideration for abiding by the terms of this Agreement, shall be entitled to qualify for a reassessment of valuation of the Historic Property, pursuant to the provisions of chapter 3, Part, 2, of Division 1 of the California Revenue and Taxation Code, and any corresponding adjustment in property taxes resulting therefrom, NOW, THEREFORE, the City and Owner in consideration of mutual covenants and conditions set forth herein, do hereby agree as follows: EFFECTIVE DATE AND TERM OF AGREEMENT. This Agreement shall be effective and commence on October 1, 2015 ("Effective Date") and shall remain in effect for a minimum initial term of ten (10) years thereafter unless canceled by the City pursuant to Section 8 or 9 of this Agreement. 2. RENEWAL. Upon each anniversary date, beginning at the end of the initial ten year term ("Renewal Date"), an additional one (1) year shall automatically be added to the term of the Agreement unless a notice of nonrenewal is delivered as provided in Section 3 of this Agreement. NONRENEWAL. If either the Owner or City desires in any year not to renew this Agreement, Owner or City shall serve a written notice of nonrenewal upon the other parry in advance of the Renewal Date ("Notice of Nonrenewal"). The Notice of Nonrenewal shall be effective only if served by Owner upon City at least ninety (90) days prior to the Renewal Date, or if served by City upon Owner, the Notice of Nonrenewal shall be effective only if served upon Owner at least sixty (60) days prior to the Renewal Date. If either City or Owner serves a Notice of Nonrenewal in any year, this Agreement 154885/125187 2 shall remain in effect for the balance of the term then remaining. City shall notify the County of Orange of any nonrenewal of this Agreement. 4. OWNER PROTEST OF CITY NONRENEWAL. Within fifteen (15) days of Owner's receipt of the Notice of Nonrenewal from City, Owner may file with City a written protest of the Notice of Nonrenewal. Upon receipt of the written protest, the City Council shall set a hearing prior to the expiration of the Renewal Date of this Agreement. Owner may furnish the City Council with any information which Owner deems relevant and shall furnish the City Council with any information it may require. The City Council may, at any time prior to the annual Renewal Date, withdraw its Notice of Nonrenewal. 5. STANDARDS FOR HISTORICAL PROPERTY. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements, and restrictions: A. Owner shall preserve and maintain the characteristics of the cultural and historical significance of the Historic Property. Compliance or non- compliance with this section shall be determined by the Director of Planning and Building or his/her designee. In addition, Owner shall obtain any applicable permits necessary to protect, preserve, restore, and rehabilitate the Historic Property so as to maintain its historical and cultural significance. B. Owner, when necessary as determined by the City, shall restore and rehabilitate the Historic Property to conform to the rules and regulations of the Office of Historic Preservation of the California Department of Parks and Recreation (http://ohp.parks.ca.gov/?page_id=21410), the United States Secretary of the Interior's 15-4885/125187 3 Standards for the Treatment of Historic Properties (http://www.nps.gov/tps/standards/rehabilitation.hbn4Guidelines), and the State Historical Building Code. The condition of the exterior of the Historic Property on the effective date of this Agreement is documented in photographs attached as Exhibit `B" and incorporated herein by this reference The Owner shall continually maintain the exterior of the Historic Property in the same or better condition as documented in Exhibit am C. Owner shall carry out specific restoration, repair, maintenance, and/or rehabilitation projects on the Historic Property, as outlined in the attached Exhibit "C," which is incorporated herein by this reference. All such projects shall be undertaken and completed in keeping with the historic nature of the property. Projects may be interior or exterior, but must utilize all property tax savings over the ten (10) year contract period or according to the schedule for Exhibit "C." Each year during the term of this Agreement, Owner shall submit a work plan for implementation of the items listed on Exhibit "C" to City's Director of Planning and Building for possible modifications, review and approval. D. Property Tax relief afforded to Owner pursuant to Chapter 3, Part 2 of Division I of the California Revenue and Taxation Code will be determined solely by the Orange County Assessor. City makes no representations regarding the actual tax savings any person may realize by entering into this Agreement. 6. INSPECTIONS. Upon reasonable advance notice and at Owner's expense, Owner shall allow an initial inspection and second year inspection by City inspectors of the City. 154885/125187 4 Additionally, Owner shall allow reasonable periodic examinations, specific to where the work is being performed, of the interior and exterior of the Historic Property by representatives of the County Assessor, the State Department of Parks and Recreation, the State Board of Equalization and/or City, as may be necessary to determine Owner's compliance with the terms and provisions of this Agreement. Owner shall give priority to, and shall promptly abate, any city or state code violations related to zoning, health or safety issues. 7. PROVISIONS OF INFORMATION OF COMPLIANCE• YEARLY ADMINISTRATIVE FEE. Owner hereby agrees to furnish City with any and all information requested by City, which City deems necessary or advisable to determine eligibility of the Historic Property and compliance with the terms and provisions of this Agreement. Requested information may include, but not be limited to, required annual reports, as well as receipts documenting property maintenance and/or improvement expenditures that equal or exceed annual estimated property tax savings. Owner shall also pay City a yearly administrative fee as outlined in City's Master Fee Resolution. 8 BREACH OF AGREEMENT; REMEDIES. A. Notice of Breach; Opportunity to Cure. If Owner breaches any provision of this Agreement, City may give written notice to Owner by registered or certified mail detailing Owner's violations. If such violation is not corrected to the reasonable satisfaction of City within thirty (30) days after the date of notice of violation, or within such a reasonable time as may be required to cure the violation (provided the acts to cure the violation are commenced within thirty (30) days and thereafter diligently pursued to completion), the City may, without further notice, declare Owner to be in 15-4885/125187 5 breach of this Agreement. Upon City's declaration of Owner's breach, City may pursue any remedy available under local, state, or federal law, including those specifically provided for in this section. B. Remedy - Cancellation. City may cancel this Agreement if City determines, following a duly noticed public hearing in accordance with Government Code section 50285, that Owner breached any of the conditions of the Agreement, Owner allowed the Historic Property to deteriorate to the point that it no longer meets the standards for a qualified historic property, or Owner failed to restore or rehabilitate the Historic Property in accordance with the terms of this Agreement as per Government Code 50284. If this Agreement is cancelled, under this paragraph, Owner shall pay a cancellation fee to the Office of the Auditor for the County of Orange as required by Government Code section 50286. The cancellation fee will be equal to 12'/2 percent of the current fair market value of the property as determined by the county assessor as though the property were free of the contractual restriction. C. Alternative Remedies. As an alternative to cancellation of this Agreement for Owner's breach of any condition, City may bring an action in court necessary to enforce this Agreement including, but not limited to, an action to enforce this Agreement by specific performance, injunction, or receivership. 9 DESTRUCTION OF PROPERTY: EMINENT DOMAIN. 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 replaced, this Agreement shall be cancelled because the historic value of the structure will have been destroyed. If the 154885/125187 6 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 Mayor and City Council to frustrate the purpose of this Agreement, this Agreement shall be cancelled. No cancellation fee pursuant to Government Code Section 50286 shall be imposed if the Agreement is cancelled pursuant to this Section. 10. WAIVER. City does not waive any claim of default by Owner if City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in City's regulations governing historic properties are available to the City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder. 11. BINDING EFFECT OF AGREEMENT. Owner hereby subjects the Historic Property to the covenants, conditions, and restrictions set forth in this Agreement. City and Owner hereby declare their specific intent that the covenants, conditions, and restrictions set forth herein shall be deemed covenants running with the land and shall inure to and be binding upon Owner's successors and assigns in title or interest to the Historic Property Each and every contract, deed or other instrument hereinafter 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 set forth herein. 15-4885/125187 7 12. COVENANTS RUN WITH THE LAND City and Owner hereby declare their understanding and intent that the burden of the covenants, reservations and restrictions set forth herein touch and concern the land in that they restrict development of the Historic Property. City and Owner hereby further declare their understanding and intent that the benefit of such covenants, reservations and restrictions touch and concern the land by enhancing and maintaining the cultural and historical characteristics and significance of the Historic Property for the benefit of the public and the Owner. 13. NOTICE. Any notice required to be given by the terms of this Agreement shall be provided at the address of the respective parties as specified below or at any other address as may be later specified by the parties hereto: City. City of Huntington Beach City Manager's Office 2000 Main Street Huntington Beach, CA 92648 Owner: Mark and Maria Williams 501 10t' Street Huntington Beach, CA 92648 14. EFFECT OF AGREEMENT. None of the terms, provisions or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors or assigns; nor shall such terms, provisions or conditions cause the parties to be considered joint venturers or members of any joint enterprise. 15-4885/125187 8 15. INDEMNITY OF CITY. Owner shall defend, indemnify, and hold harmless City and its elected officials, officers, agents and employees from any actual or alleged claims, demands causes of action, liability, loss, damage, or injury to property or persons, including wrongful death, whether imposed by a court of law or by administrative action of any federal, state or local governmental agency, arising out of or incident to (i) the direct or indirect use, operation, or maintenance of the Historic Property by Owner or any contractor, subcontractor, employee, agent, lessee, licensee, invitee, or any other person; (ii) Owner's activities in connection with the Historic Property, 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 attorney's fees, legal expenses and costs incurred by each of them. The costs, salaries and expenses of the City Attorney and members of his/her office in enforcing this Agreement on behalf of the City shall be considered as "attorneys' fees" for the purposes of this paragraph. Owner's obligation to indemnify shall survive the termination, cancellation, or expiration of this Agreement and shall not be restricted to insurance proceeds, if any received by City, its elected officials, employees, or agents. 16. BINDING UPON SUCCESSORS. All of the agreements, rights, obligations, covenants, reservations, and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns and all 15-4885/125187 9 persons acquiring any part or portion of the Historic Property, whether by operation of law or in any manner whatsoever 17. ATTORNEYS' FEES AND 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 parry hereunder, each party shall bear its own attorneys' fees and legal costs, and the prevailing parting in such proceeding shall not be entitled to recover its attorneys' fees and legal costs from the non -prevailing parry. 18. SEVERABILITY. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be effected thereby. 19. RECORDATION. No later than twenty (20) days after the Effective Date, City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Orange. Owner shall provide written notice of the contract to the State Office of Historic Preservation within six (6) months of entering into the contract. 20. AMENDMENTS. This Agreement may be amended, in whole or in part, only by written recorded instrument executed by the parties hereto. 15-4885/125187 10 21. GOVERNING LAW AND VENUE. This Agreement shall be construed and governed in accordance with the laws of the State of California. Any action at law or in equity brought by either of the parties hereto for the purpose of enforcing a right or rights provided for by this Agreement shall be tried in a court of competent jurisdiction in the County of Orange, State of California, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings to any other county. 22 REQUIREMENTS RELATED TO TRANSFER OF HISTORIC PROPERTY. In the event of any sale, transfer, assignment or conveyance of the Historic Property (herein referred to as a "Transfer"), the Owner agrees that, at least thirty (30) days prior to such Transfer, it shall give written notice to the City of such proposed Transfer, including the name(s) of the transferee(s). In addition, the Owner and the proposed transferee(s) shall enter into and deliver to City through the escrow for the Transfer of the Historic Property an assignment and assumption agreement in a form satisfactory to the City Attorney of City or other such evidence as may be satisfactory to the City that the transferee(s) has (have) assumed the Owner's obligations set forth in this Agreement. Upon the Transfer of the Historic Property and the assumption of the obligations hereunder by the transferee(s), the Owner's liability for performance shall be terminated as to any obligation to be performed hereunder after the date of such Transfer 23. ENTIRETY. The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that 154885/ 125187 11 each has had the opportunity to consult with legal counsel prior to executing this Agreement The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that parry or anyone acting on that party's behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. REST OF PAGE INTENTIONALLY LEFT BLANK 154885/125187 12 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written. OWNER: / Mark Williams (I VO4� Mana Williams Attachments Exhibit A: Legal Description of the Property APPROVED F. e- 613117Ais TIAT D D PROVED: ssistant Ci er Exhibit B: Photographs of the Property Exhibit C: Proposed Restoration, Repair, Maintenance or Rehabilitation Projects on Historic Property 154885/125187 13 Order No. rsuve 1P) Loon N0 �'fltt NltEC0RD3D i,IAtL TO Recorded in Official Records, Oranpa Caunly Tom DAy, Clstk-Retrorder M# and Mts. Mark E. YMPams il�flilfii��ll��l�,lll�Illlf�lllll6.00 601 101h Sfrsbl 2OU0447230 02.06pm 07103106 Hunt ngtoo Beach, CA 92848 108 111002 1 0,00 o 00 o 06 0 00 a oa 0.00 0 00 o 00 r1� AS�)i: a2a•1el.t$ SPACEAW.1THSutiEFcttRE MFRgUSE MAIL TAX STAT4MKHTSTO: D0CUs19ATARYTRAR$Ff1kTAXS 4-4• TtensjjrC0n� tl Mr. and Mrs, I,lark h. W,llioms � N praserty tnt rest `Q 601I0thStteot CCn44406thotCttt,4}srXKAVVAMOfpropaytarryid3,OR liunNngton [leash, CA 92648 CcttrwlM rn Fite ctratder��art er ra'u0t4ds hcr�s a trxtmttan<bs I ow hlrq at v4 t(M N wo 'Tf�Qurdor�ttt nranlorsderJ,Ttg GRANT DEED � TRis comvyusot cc+intms l cormwrdty L�Y�M�T v��l.► yropltlylntdtlet,whkRwtapurelysfdettth Canmtrn ty propddy rtrrdd, R ik 71t911. FOR A VALVABLE CON SlUtRATION, teceipt of which Is herebyy ocknotAdoad, MARK EyDSON WILLIAMS "MARIA LOSETAWILLIAMS, HUSBAND AND WIFE, AS JOINT TENANTS Hereby GRANTS) TO MARK E WIWAUS AND MARIA L WILLKIS, HU30AND AND WIFE, AS COMMUNITY PROPL:R7Y the teof ptopoity in the City of Hunt'r*lorl Bosch County of 0raAw Mato of Ce'.r'ornla, described 85 L000lly doscnbed as: Lot 1 and 3 In Vock 610 a! the Huntington 11001 Main $ireot 5oction, h N Cdy of Huntington Bosch, County of Orange. State of Cal'domla, as per reap recorded In FWX 3. Papos 43. of MIscellonoous Maps In the Office of the Counly Rowdo( of card Cwnty. Cornrnonlykmmn 0s: 601 104 Street, Huntinpion Boom, Coldorna Dated — J� WA NARK UDSON VALLIAAIS 6TATF OF CAtIFORMtA COUNTY OF ORMOU In Rn c6t�h�.1Y�/I appmed NARK &OSON WALLAfdS Ond 1Ar i L01ty WILLIMIS. oets"i krwmn to rra (cc promd to roc on to L4111 of seAfatin 01we) la be tM pa wgt) %bolo w*$) kluo f bmit*J to Ota 14 WA I"s. uw*4 and e,'u»n'crf�td i4 rtq tha! he'aholtsey l,Avted O o so-w kvh$.R1e~ 04tw2ed c4P00 i1kiq ord Ihdl by friviel wl %1gN4.rc(4) to ttd InstfovIA, the persoo(s) or 1h6 erxay upon b01 of %tt2R the C&svXs)Attcd. orocutei tt4 r,&ks hm WrliteSS mkogwAandderalml t4'YILUMM43�- ' t,IARIAI. ORF.T �, CARA L GARM0 4 COW. ar136667)ll (ej Aow PI3914 ovrowA k OAAHO£ COUNTY t. NY lilt i%i it 4l t008 (r nti s'N lMc?dd rv�r.�fRNr MAIL TAX STATEMENTS AS DIRECTED A00V9 HB -135- Item 8. - 43 Ci of Huntington Beach 2000 MAIN STREET CALIFORNIA 92648 DEPARTMENT OF PLANNING AND BUILDING www.huntingtonbeachca.gov Planning Division Building piyision 714.536.5271 714,536,5241 July 17, 2015 NOTICE OF FILING STATES Application; MILLS ACT NO, 2015-002 (WILLIAMS RESIDENCE) Applicant/ Property Owner: Mark and Maria Williams, 501 10th St., Huntington Beach, CA 92648 Request. To participate in the Huntington Beach Mitis Act Historic Property Preservation Agreement Location: 501 1& Street (northeast corner of 1On St. and Pecan Ave.) d Mrs. NOTICE IS HEREBY GIVEN that the Planning Division has reviewed the above Mills Act application received and dated January 20, 2015, and`has accepted the Preservation Work Program and Proposed Timeline received and dated February 9, 2015. (Attachment No. 2) Please be advised that the Department of Planning and Building will forward your application to the City Manager's Office for City Council action. Once a Mills Act contract has been approved by City Council, the requirements in Attachment No. 1 Will be applicable. If you should have any questions or concerns regarding the processing of your application, please feel free to contact me by telephone at. (714) 374-1553 or by email at jkelley@surfcity-hb.org. Sincerely, J son Kelley Senior Planner , Attachments 1 Mills Act Na 2016-002 Requirements 2 Preservation Work Program and Proposed Timeline dated February 9, 2015 cc, Fred A. Wilson, City Manager Ken Domer, Assistant City Manager Teri Baker, Assistant to the City Manager Scott Hess, Director of Planning and Building Jane James, Planning Manager Mark Carnahan, Building manager Mark and Maria Williams, Property Owner Project File Item 8. - 44 HB -136- MILLS ACT NO. 2015-002 ATTACHMENT NO. 'I MILLS ACT NO. 15-002 REQUIREMENTS_: 1. The Preservation Worst Program and Proposed Timeline dated and received February 9, 2015 shall be the approved yearly work program. 2. Every November, starting after the commencement date of the contract, the property owner shall submit the new property tax statement, annual receipts and a summary of the work performed to the Planning Division. 3 During the second year of the contract, a Building Division inspector will complete a field inspection to verify that two years of work have been completed. The property owner shall pay for a one hour inspection time. 4. Upon the ten year anniversary/conclusion of the contract, and upon each anniversary date, an additional (1) year shall automatically be added to the term of the agreement, unless a notice of nonrenewal is delivered as outlined in the Historic Preservation Agreement Section 3. HB -137- Item 8. - 45 i Exhibit "C" FEB 09 Z1715 PRESERVATION WORK PROGRAM AND PROPOSED TIME LINE 0--m vrpj & jeuI/tIm 8r�r71r19 Please list the improvements to take place over the next ten years in order of priority. Lister' work should be limited to stabilization and/or maintenance of the historic structure and/or repair of exterior, character -defining features of the historic property. State the anticipated costs of the improvements, including but not limited to materials, labor, permits, and fees. Anticipated construction must be equal or greater than tax savings Attach additional pages as needed to complete the information below Year ro osed Pro ect stlmated Cast �i�a �!� i ✓/ �i to v V t r 2. 602017 uPP 4 soo 7.a ail `+ 160oo 8. /4j 000 . I Estimated Ten YearTotai Costs Please note the estimated cost of proposed restoration and maintenance activities must be - equal orgreater than the estimated reduction in property faxes. x ATTACHMENT NO. Item 8. - 46 xB - i 3 9- Y i?jj- 1 f t fr_ i � 5 MP r� NO rr'ii7 r kZ9Stls 4� Sr f i f f t �Y r�r 5rc P' Z t' f 3 •'s•�`E`�? ._!ram✓ _ war r �S.{j �3F.t�-'t 'i] 1. •. .i C. f -. 11r 4i1 f r' `�S.?�Lj •;�ti<�e'Q `ii` l��J/ 3c �a Y C --. t •�1 'fir ]tf � • yi' t- L �(a/ �rC �� Ei try � \ _�+.y��` _ t r mil' � � + '!' � �� - � {T � � .,�� ?S'/ `„ �.)...�` ; -•�� � , V �-r 1 '� sr`� k • e � r •, 4 1-2 t ,� trr t �•a J;`�y� � �. Y:.:�.�� art _ � r -.� F :it" r�.�/: •rim? _Q E••F 1 ��' .,fit / ;'t,(���� fir, ) ,�„ l q 1 rt4 f 1 • s P A -Al NEW 1. F:.. M MNWPW - kls,hl I A . . . . . . . . . . . 01 f � I' / �1 f W'"t t<i' ji its C� r• r• vs i �.. Nz f ti a •� t v • ':elf r � 4 �' s��Y',�iF`Y� �. � T%s ` t1 1 Iv �>\.�� yp . \_ � d :� � � � � � � � : � � � /� } �������\/�������\"��� d�� G���)w»,:: >» ®..:.� - - �m*�>,/�����\�(��� �����Jr����/{�\� . � �� ,2 . a w. (� § ' ƒ � � (\� /% \ � �� : » _ � �� . . . � �\� v ?�_ \ /� /\\� � � ! � .<«w: � # \i�w � ^»�:� - ���|_>Tfr� ` � � � F_ � � �� � ���;� \\�� �i� \��` � .�.�z., ` ]{y�r#, \{�\- ?� :� / _ »� � �� ���= ���� \4� \� S ��&a® \�^�:; /� w &- ,%/>; : ��x� \ ;\ .� ` 2 \ J`��� � ? .� Qom!\ ���� \ ��~�»`'� �� �°��` a%2 ` i� a:%s �V� .;\ � ? ' «/�/d:/ / / �� �� � �� � ! � � , t� <� . . . . . . . . . . . . . . . . . . . . . . . . . . . PITA V-4 Cit" 'lei now. rm M, City of Huntington Beach FEB 0 2 2015 40 Office of Business DevelOPMent Exhibit "C" PRESERVATION WORK PROGRAM AND PROPOSED TIME LINE Please list the improvements to take place over the next ten years In order of priority. Listed work should be limited to stabilization and/or maintenance of the historic structure and/or repair of exterior, character -defining features of the historic property. State the anticipated costs of the improvements, including but not limited to materials, labor, permits, and fees. Anticipated construction must be equal or greater than talc savings Attach additional pages as needed to complete the information below. year r Proleol stIMILted C st 202 s. r 40 / r06 6jlololi be if S-66 ?D ovo /s ax 10 Estimated Teri Year Total Costs Please note the estimated cost of proposed restoration and maintenance activities must be equal or greater than the estimated reduction in property taxes. HB -1-t 9- Item 8. - 57 HISTORIC PROPERTY PRESERVATION AGREEMENT CONTAINING COVENANTS, CONDITIONS AND RESTRICTIONS AFFECTING REAL PROPERTY BY AND BETWEEN THE CITY OF HUNTINGTON BEACH AND ERICH REISEN FOR THE REAL PROPERTY LOCATED AT 4218' STREET WITHIN THE CITY OF HUNTINGTON BEACH ("MILLS ACT CONTRACT") THIS AGREEMENT is made this /9 day of DCrV hOe, , 2015, by and between the City of Huntington Beach, a municipal corporation ("City") and Erich Reisen ("Owner"). WHEREAS, California Government Code Section 50280, et. seq. allows cities the discretion to enter into contracts with the owners of qualified historic properties, as that term is defined in Government Code Section 50280.1, for the purpose of providing for the use, maintenance, protection, and restoration of such historic property so as to retain its characteristics as property of historic significance; and Owner holds fee title in and to that certain real property, together with associated structures and improvements thereon, generally located at the street address 421 8th Street, Huntington Beach, California ("Historic Property") A legal description of the Historic Property is attached hereto as Exhibit "A" and incorporated herein by this reference; and By approving this Agreement, the City Council hereby designates the Historic Property as a Qualified Historic Property as defined by Resolution 2014 - 82, Section 5; and City and Owner desire to enter into this Agreement for the purpose of protecting and preserving the characteristics of historical significance of the Historic Property that help provide the community with its own unique civic identity and character; and Owner, in consideration for abiding by the terms of this Agreement, shall be entitled to qualify for a reassessment of valuation of the Historic Property, pursuant to the provisions of 154885/125180 chapter 3, Part, 2, of Division 1 of the California Revenue and Taxation Code, and any corresponding adjustment in property taxes resulting therefrom, NOW, THEREFORE, the City and Owner in consideration of mutual covenants and conditions set forth herein, do hereby agree as follows: EFFECTIVE DATE AND TERM OF AGREEMENT. This Agreement shall be effective and commence on October 1, 2015 ("Effective Date") and shall remain in effect for a minimum initial term of ten (10) years thereafter unless canceled by the City pursuant to Section 8 or 9 of this Agreement. 2. RENEWAL. Upon each anniversary date, beginning at the end of the initial ten year term ("Renewal Date"), an additional one (1) year shall automatically be added to the term of the Agreement unless a notice of nonrenewal is delivered as provided in Section 3 of this Agreement. 3. NONRENEWAL. If either the Owner or City desires in any year not to renew this Agreement, Owner or City shall serve a written notice of nonrenewal upon the other party in advance of the Renewal Date ("Notice of Nonrenewal"). The Notice of Nonrenewal shall be effective only if served by Owner upon City at least ninety (90) days prior to the Renewal Date, or if served by City upon Owner, the Notice of Nonrenewal shall be effective only if served upon Owner at least sixty (60) days prior to the Renewal Date. If either City or Owner serves a Notice of Nonrenewal in any year, this Agreement shall remain in effect for the balance of the term then remaining. City shall notify the County of Orange of any nonrenewal of this Agreement. 2 15-4885/125180 4. OWNER PROTEST OF CITY NONRENEWAL. Within fifteen (15) days of Owner's receipt of the Notice of Nonrenewal from City, Owner may file with City a written protest of the Notice of Nonrenewal. Upon receipt of the written protest, the City Council shall set a hearing prior to the expiration of the Renewal Date of this Agreement. Owner may furnish the City Council with any information which Owner deems relevant and shall furnish the City Council with any information it may require. The City Council may, at any time prior to the annual Renewal Date, withdraw its Notice of Nonrenewal. 5. STANDARDS FOR HISTORICAL PROPERTY. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements, and restrictions: A. Owner shall preserve and maintain the characteristics of the cultural and historical significance of the Historic Property. Compliance or non-compliance with this section shall be determined by the Director of Planning and Building or his/her designee. In addition, Owner shall obtain any applicable permits necessary to protect, preserve, restore, and rehabilitate the Historic Property so as to maintain its historical and cultural significance. B. Owner, when necessary as determined by the City, shall restore and rehabilitate the Historic Property to conform to the rules and regulations of the Office of Historic Preservation of the California Department of Parks and Recreation (http://ohp.parks ca.gov/?page_id=21410), the United States Secretary of the Interior's Standards for the Treatment of Historic Properties (http://www.nps.gov/tps/standards/rehabilitation.htm#Guidelines), and the State Historical Building Code. The condition of the exterior of the Historic Property on the effective date of this 3 15-4885/125180 Agreement is documented in photographs attached as Exhibit "B" and incorporated herein by this reference. The Owner shall continually maintain the exterior of the Historic Property in the same or better condition as documented in Exhibit `B." C. Owner shall carry out specific restoration, repair, maintenance, and/or rehabilitation projects on the Historic Property, as outlined in the attached Exhibit "C," which is incorporated herein by this reference. All such projects shall be undertaken and completed in keeping with the historic nature of the property. Projects may be interior or exterior, but must utilize all property tax savings over the ten (10) year contract period or according to the schedule for Exhibit "C." Each year during the term of this Agreement, Owner shall submit a work plan for implementation of the items listed on Exhibit "C" to City's Director of Planning and Building for possible modifications, review and approval. D. Property Tax relief afforded to Owner pursuant to Chapter 3, Part 2 of Division 1 of the California Revenue and Taxation Code will be determined solely by the Orange County Assessor. City makes no representations regarding the actual tax savings any person may realize by entering into this Agreement. 6. INSPECTIONS. Upon reasonable advance notice and at Owner's expense, Owner shall allow an initial inspection and second year inspection by City inspectors of the City. Additionally, Owner shall allow reasonable periodic examinations, specific to where the work is being performed, of the interior and exterior of the Historic Property by representatives of the County Assessor, the State Department of Parks and Recreation, the State Board of Equalization and/or City, as may be necessary to determine Owner's compliance with the terms and provisions of this Agreement. 4 15-4885/125180 Owner shall give priority to, and shall promptly abate, any city or state code violations related to, zoning, health or safety issues. 7. PROVISIONS OF INFORMATION OF COMPLIANCE; YEARLY ADMINISTRATIVE FEE. Owner hereby agrees to furnish City with any and all information requested by City, which City deems necessary or advisable to determine eligibility of the Historic Property and compliance with the terms and provisions of this Agreement. Requested information may include, but not be limited to, required annual reports, as well as receipts documenting property maintenance and/or improvement expenditures that equal or exceed annual estimated property tax savings. Owner shall also pay City a yearly administrative fee as outlined in City's Master Fee Resolution. 8. BREACH OF AGREEMENT; REMEDIES. A. Notice of Breach; Opportunity to Cure If Owner breaches any provision of this Agreement, City may give written notice to Owner by registered or certified mail detailing Owner's violations. If such violation is not corrected to the reasonable satisfaction of City within thirty (30) days after the date of notice of violation, or within such a reasonable time as may be required to cure the violation (provided the acts to cure the violation are commenced within thirty (30) days and thereafter diligently pursued to completion), the City may, without further notice, declare Owner to be in breach of this Agreement. Upon City's declaration of Owner's breach, City may pursue any remedy available under local, state, or federal law, including those specifically provided for in this section. B Remedy - Cancellation. City may cancel this Agreement if City determines, following a duly noticed public hearing in accordance with Government Code section 50285, that Owner breached any of the conditions of the Agreement, Owner allowed the 5 15-4885n25180 Historic Property to deteriorate to the point that it no longer meets the standards for a qualified historic property, or Owner failed to restore or rehabilitate the Historic Property in accordance with the terms of this Agreement as per Government Code 50284. If this Agreement is cancelled, under this paragraph, Owner shall pay a cancellation fee to the Office of the Auditor for the County of Orange as required by Government Code section 50286. The cancellation fee will be equal to 12 %2 percent of the current fair market value of the property as determined by the county assessor as though the property were free of the contractual restriction. C. Alternative Remedies. As an alternative to cancellation of this Agreement � for Owner's breach of any condition, City may bring an action in court necessary to enforce this Agreement including, but not limited to, an action to enforce this Agreement by specific performance, injunction, or receivership. 9. DESTRUCTION OF PROPERTY; EMINENT DOMAIN. 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 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 Mayor and 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. 0 15-4885/125180 10. WAIVER. City does not waive any claim of default by Owner if City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in City's regulations governing historic properties are available to the City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder. 11. BINDING EFFECT OF AGREEMENT. Owner hereby subjects the Historic Property to the covenants, conditions, and restrictions set forth in this Agreement. City and Owner hereby declare their specific intent that the covenants, conditions, and restrictions set forth herein shall be deemed covenants running with the land and shall inure to and be binding upon Owner's successors and assigns in title or interest to the Historic Property. Each and every contract, deed or other instrument hereinafter 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 set forth herein. 12. COVENANTS RUN WITH THE LAND. City and Owner hereby declare their understanding and intent that the burden of the covenants, reservations and restrictions set forth herein touch and concern the land in that they restrict development of the Historic Property. City and Owner hereby further declare their understanding and intent that the benefit of such covenants, reservations and restrictions touch and concern the land by enhancing and maintaining the cultural and historical characteristics and significance of the Historic Property for the benefit of the public and the Owner. 7 15 4885/125180 13. NOTICE. Any notice required to be given by the terms of this Agreement shall be provided at the address of the respective parties as specified below or at any other address as may be later specified by the parties hereto: City: City of Huntington Beach City Manager's Office 2000 Main Street Huntington Beach, CA 92648 Owner: Erich Reisen 5874 Eagle Island West Vancouver, B.C., V7WIV5, Canada 14. EFFECT OF AGREEMENT. None of the terms, provisions or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors or assigns; nor ' shall such terms, provisions or conditions cause the parties to be considered joint venturers or members of any joint enterprise. 15. INDEMNITY OF CITY. Owner shall defend, indemnify, and hold harmless City and its elected officials, officers, agents and employees from any actual or alleged claims, demands causes of action, liability, loss, damage, or injury to property or persons, including wrongful death, whether imposed by a court of law or by administrative action of any federal, state or local governmental agency, arising out of or incident to (i) the direct or indirect use, operation, or maintenance of the Historic Property by Owner or any contractor, subcontractor, employee, agent, lessee, licensee, invitee, or any other person; (ii) Owner's activities in connection with the Historic Property, or from the enforcement of this Agreement. This indemnification includes, without limitation, the 8 154885/125180 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 attorney's fees, legal expenses and costs incurred by each of them. The costs, salaries and expenses of the City Attorney and members of his/her office in enforcing this Agreement on behalf of the City shall be considered as "attorneys' fees" for the purposes of this paragraph. Owner's obligation to indemnify shall survive the termination, cancellation, or expiration of this Agreement and shall not be restricted to insurance proceeds, if any received by City, its elected officials, employees, or agents. 16. BINDING UPON SUCCESSORS. All of the agreements, rights, obligations, covenants, reservations, and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns and all persons acquiring any part or portion of the Historic Property, whether by operation of law or in any manner whatsoever. 17. ATTORNEYS' FEES AND 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, each party shall bear its own attorneys' fees and legal costs, and the prevailing parting in such proceeding shall not be entitled to recover its attorneys' fees and legal costs from the non -prevailing party. 18. SEVERABILITY. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive 9 154885/125180 legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be effected thereby. 19. RECORDATION. No later than twenty (20) days after the Effective Date, City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Orange. Owner shall provide written notice of the contract to the State Office of Historic Preservation within six , (6) months of entering into the contract. 20. AMENDMENTS. This Agreement may be amended, in whole or in part, only by written recorded instrument executed by the parties hereto. 21. GOVERNING LAW AND VENUE This Agreement shall be construed and governed in accordance with the laws of the State of California. Any action at law or in equity brought by either of the parties hereto for the purpose of enforcing a right or rights provided for by this Agreement shall be tried in a court of competent jurisdiction in the County of Orange, State of California, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings to any other county. 22. REQUIREMENTS RELATED TO TRANSFER OF HISTORIC PROPERTY. In the event of any sale, transfer, assignment or conveyance of the Historic Property (herein referred to as a "Transfer"), the Owner agrees that, at least thirty (30) days prior to such Transfer, it shall give written notice to the City of such proposed Transfer, including the name(s) of the transferee(s). In addition, the Owner and the proposed transferee(s) shall enter into and deliver to City through the escrow for the Transfer of the Historic Property an 10 1 s-4885/1251 Ro assignment and assumption agreement in a form satisfactory to the City Attorney of City or other such evidence as may be satisfactory to the City that the transferee(s) has (have) assumed the Owner's obligations set forth in this Agreement. Upon the Transfer of the historic Property and the assumption of the obligations hereunder by the transferee(s), the Owner's liability for performance shall be terminated as to any obligation to be performed hereunder after the date of such Transfer. 23. ENTIRETY. The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that parry's behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. REST OF PAGE INTENTIONALLY LEFT BLANK 11 154885/125180 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year fist above written. ' OWNER3 CITY OF HUNTINGTON BEACH { A California munic al wagtw Erich Re-Mn- Mayor City ,I APPROVED ASTQ FORM: ity Attorney z r > TE AN PROVED: , Csistant CIanager REV APPROVED: C ger r, Attachments Exhibit A: Legal Description of the Property Exhibit B: Photographs of the Property Exhibit C: Proposed Restoiation, Repair, Maintenance or Rehabilitation Projects on Historic Property 12 15-4885/125180 Branch -A 14,User JIMG Comment Station Id BZNX RECORDING REQUESTED BY - First Amorican Title AND I ILN RECORDED IWAH,TO: Erich Fischer 1404 William Avenue North Vancouver, British Columbia, Canada, V7646.2000 Order No. 33I4281 Escrow No 10.731 TS Parcel No 024-107-10 Recorded to ornalal Records, Orange County Tom Daly, Clerk -Recorder If II[IIFEFl1Eli 1119R4f1u111E01f111{!II 9.00 2010000026202 02:25pm 01/19/10 I06 402 002 2 04 48&75 48Q75 0 00 0 00 3 00 0.00 0 00 0 00 GRANT DEED THE UNDERSI6MED HERrRY DECLARE TI1AT DOCUMENTARY T RANSFBR TAX IS S97MO ® computed on full value of property conveyed, or ❑ computed on full value less lions or encumbrances remaking at the time of sale (] unincorporated area of: it City of Huntington Beach, and FOR A VALUABLE CONSID'C ATION, receipt of which is hereby acknowledged, HSHC Bank USA, National Association as Trustee for NAAC Mortgage Pass -Through Certificates Series 2007-1, hereb ccgl(s)ta Erich Reisen married man and Glynn Fisher, a married man ac as to an undiviae 50% interest. as tenants in common the following aescrrou,vid property in the County of Orange, State ofColifornis: I Lot 21 And 23, in block 408 of Huntington Beach Main Street section in the City of Huntington Beach, County of I Orange, State of California, as per map recorded in Book 3 Page(s) 43 of Miscel[aneous Maps in4he Office of the L County Recorder of said County, Date January 13, 20I0 t i HSBC Bank USA, National Association as Trustee for NAAC Mottass-Through certificates COMPLETE LEGAL DESCRIPTION ATTACHEDAS EXHIBIT (Af Series 20 - :�� ftilt Greenup .^. P j CL.F1 Doctini.taUon By, wells rargb.Ban , A, AttompatfFact STATE OF 1#li } }SS COUNTY OF ]��'�j_ Oy } "u, i cold 19 . Qh ED berbre .0� 1 tYl'ax�d�-e a Notary rubrlc, pettOnsily 3pPC8rc4 _� " -y who proved to me on the basis of satisfactory avldeace to be the on(s) whose name(s) is/are subscribed to the within Instrument and acknowledged to me that Wshdthoy executed the same in idsthrr/theft authonzed capacity(ics), and that by jtsthaltheir signoure(s) on the instrument the penon(s), or the entity upon behalf of which the persan(s) acted, executed the Instrument rnmJ t certify under PENALTY OF PERJURY under Ole tai►Y of the Stale of 0916ft that the foregoing paragtephs is true and correct Nr173TES5 y Eland and o cie4 stal KIMBERLE K COVER Signs Notary Public Frederick County Maryland MM7AXSTATEIRE fTO My Commission Expires Apr 10, 2013 REMNADDRE:SSA80YS ORANGE,CA Page I of 2 Printed on 3/18/2015 4 48-34 AM Document DD 2010 26202 Item 8. - 70 HB -1 62- Branch A 14,User JIMG Comment Station Id BZNX EXHIBIT A Order Number. O-SA•3314281 (3) Page Number; 6 LEGAL DESCRIPTION Real property in the City of Huntington Beach, County of Orange, State of California, described as follows; LOT 21 AND 23 IN BLOCK 408 OF HUNTINGTON BEACH MN STREET SECTION IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 3, PAGE(S) 43 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. APN: 024-107-10 ORANGE,CA Document- DD 2010 26202 Fkstknerfcan We Page 2 of 2 Printed on 3/18/2015 9 48 39 AM HB _163_ Item 8. - 71 LZ Cit of Huntington ]Beach 32000 MAIN STREET CALIFORNIA 92648 DEPARTMENT OF PLANNING AND BUILDING www.huntingtgnbeacIica.gov Planning Division Building Division 714.536.5271 714.536,5241 July 17, 2015 NOTICE OF FILING STATUS Application: MILLS ACT NO. 2015-003 (EVANGALINE HOTEL) Applicant/ Property Owner: Erich Reisen, 5874 Eagle Island, West Vancouver B.C., V7W1V5, Canada Request: Request to participate in the Huntington Beach Mills Act Historic Property Preservation Agreement Location: 421 81h Street (northwest coiner of 8th and Pecan Ave.) Dear Mr. Reisen. NOTICE IS HEREBY GIVEN that the Planning Division has reviewed the above Mills Act application received and dated March 30, 2015, and has accepted the Preservation Work Program and Proposed Timeline received and dated March 30, 2015. (Attachment No. 2) Please be advised that the Department of Planning and Building will forward your application to the City Manager's Office for City Council action. Once a Mills Act contract has been approved by City Council, the requirements in Attachment No 1 will be applicable If you should have any questions or concerns regarding the processing of your application, please feel free to contact me by telephone at (714) 374-1553 or by email at jkelley@surfcity-hb.org Sincerely, J son Kelley Senior Planner Attachments- 1 Mills Act No. 2015-003 Requiternents 2 Preservation Work Program and Proposed Timetine dated March 30, 2015 cc Fred A Wilson City Manager Ken Damer, Assistant City Manager Teri Baker, Assistant to the City Manager Scot Hess, Director of Planning and Building Jane James, Planning Manager Mark Carnahan, Budding manager Ertch Reisen, Property Owner Pioject File Item 8. - 72 IJB -164- MILLS ACT NO. 2015-003 ATTACHMENT NO. 1 MILLS ACT NO. 16-002 REQUIREMENTS: 1. The Reservation Work Program and Proposed Timeline dated and received March 30, 2016 shall be the approved yearly work program. 2. Every November, starting after the commencement date of the contract, the property owner shall submit the new property tax statement, annual receipts and a summary of the work performed to the Planning Division 3 During the second year of the contract, a Building Division inspector will complete a field inspection to verify that two years of work have been completed. The property owner shall pay for a one hour inspection time. 4. Upon the ten year an niversarylconclusion of the contract, and upon each anniversary date, an additional (1) year shall automatically be added to the term of the agreement, unless a notice of nonrenewal is delivered as outlined in the Historic Preservation Agreement Section 3._-- HB -16-5- Item 8. - 73 RECEIVED Exhibit "C" MAR 201� PRESERVATION WORK PROGRAM AND PROPOSED TIMEI§I Of Planning & Building Please list the Improvements to take place over the next ten years In order of priority Listed work should be limited to stabilization and/or maintenance of the historic structure and/or repair of exterior, character -defining features of the historic property State the anticipated costs of the improvements, Including but not limited to materials, labor, permits, and fees. Anticipated construction must be equal or greater than tax savings Attach addlt►onal pages as needed to complete the information below. Year Proposed Prolect Estimated Cost ► kle- t�., T-rvii�.�ti�t,� ,�d�t+ 1 { Ate fr Tj'-�ti� TG�yiLii C -Trr � lvbtF'�.'Ts �<-cam � � 2. �� yta� �fL�M �itnFi`t �S� T�iv��Tcp -C.ut.S IGt.+t it\.f,tu,, Sit�11�-t'i +ct�Y.+�c, . 4 9000� IAi� � �i'`��'�Ti'�{ _ CCts' i�1�1 1Li1t.� `�i�•�% _ 5- ` it F15a0-trUg `-[Tz 4�1. �7•. 1 f LET+�-�ii• z.�'G� ��'i�$ i:� �T� � '�-fG, fGc'tzt-r ram. f�►-� i� �ir�.r�'�€� � � • -4'ia©1..-� ►-� �.�`C'G�-k v-i,� A-i��7 �+.sTu.Cti • 84� �Ct ti CI t��t � �� � c� r � �LhSw � il��rt-� tz. i � �t nv'�+e� `� '[ 2-• 1 C . - i-ii"-,G�Li�c:'�.c'p- ti r�i�tllCF3+Cit-c'�—rr i - i ii ic.•--a i�~ �Z'�' r 1�ht:7�Jr � Estimated Ten Year Total Costs Please note the estimated cost of proposed restoration and maintenance activities must be equal or greater than the estimated reduction in property taxes. &TTACHMENT NCB. t Item 8. - 74 xB - i 66- Ii E 1t ��W- al . t _ >��s�,h!t�. lJ n,7 'at �,' L s d sJ+tr: •ir } lya Fih� q t � c?S r , 1 � � � ' _ AitT f;ri''i } r ✓� t...'� t _ PilafrF r Exhibit "C" MILLS ACT PROGRAM LIST OF ACCEPTABLE IMPROVEMENTS Improvements eligible for inclusion in this contract may include, but are not limited to the following: ➢ Access modifications — Exterior ➢ Access modifications— Interior ➢ Accessory Structure — Repair or Replace with Historically Accurate Structure ➢ Annual Maintenance and Repairs ➢ Appliance Ventilation ➢ Architectural Detail — Remove Non -historic Features and Restore to Original ➢ Architectural Trim — Repair or Replace with Historically Accurate ➢ Balcony/Decks — Install New Railings to Code ➢ Balcony/Decks — Repair or Replace with Historically Accurate ➢ Chimney — Inspect and clean ➢ Chimney — Repair or Rebuild with Historically Accurate ➢ Code Compliance Repairs ➢ Column — Repair, Rebuild, or Replace with Historically Accurate ➢ Corbels/Structural Brackets — Repair or Replace with Historically Accurate ➢ Door/Entry — Repair or Replace with Historically Accurate ➢ Door/Hardware — Repair or Replace with Historically Accurate ➢ Door/Screen — Repair or Replace with Historically Accurate ➢ Drain for Deck — Repair, Replace, or New Installation ➢ Dry Rot — Remove, Repair, or Replace Structural or Architectural Element with Historically Accurate ➢ Eaves and Overhangs — Repair or Replace with Historically Accurate ➢ Electrical — Install Ground and Service Entry ➢ Electrical — Install New Circuits ➢ Electrical -- Install New Service Lines to Garage ➢ Electrical — Rewire and Upgrade Service ➢ Electrical Fixtures — Repair or Replace with Historically Compatible ➢ Electrical Outlets — Repair, Replace, or Install New ➢ Flashing — Repair or Replace ➢ Foundation — Perform Bolting and Seismic Work ➢ Foundation — Repair, Rebuild, or Replace with Historically Accurate Item 8. - 78 HB -170- Exhibit "C" MILLS ACT PROGRAM LIST OF ACCEPTABLE IMPROVEMENTS ➢ Windows (Screens and Hardware) — Repair, Replace, or Install New Historically Compatible xB -1 7 1- Item S . - 79 / City of Huntington Beach 2000 Main Street ♦ Huntington Beach, CA 92648 (714) 536-5227 ♦ www.huntingtonbeachca.gov Office of the City Clerk Joan L. Flynn, City Clerk October 21, 2015 Mr Jonh Santiago 403 — 10 h Street Huntington Beach, CA 92648 Dear Mr Santiago Enclosed for your records is a copy of the fully executed "Historic Property Preservation Agreement Containing Covenants, Conditions and Restrictions Affecting Real Property By and Between the City of Huntington Beach and Joseph Santiago for the Real Property Located at 403 10th Street Within the City of Huntington Beach (Mills Act Contract)" Sincerely, 9 AV evp 41401j+d Joan L Flynn City Clerk J F pe Enclosure Sister Cities Anjo, Japan ♦ Wartakere, New Zealand City of Huntington Beach 2000 Main Street ♦ Huntington Beach, CA 92648 (714) 536-5227 ♦ www.huntingtonbeachca.gov Office of the City Clerk Joan L. Flynn, City Clerk October 21, 2015 Mr Erich Reisen 5874 Eagle Island West Vancouver, B C , V7WIV5, Canada Dear Mr Reisen Enclosed for your records is a copy of the fully executed "Historic Property Preservation Agreement Containing Covenants, Conditions and Restrictions Affecting Real Property By and Between the City of Huntington Beach and Joseph Santiago for the Real Property Located at 421 8th Street Within the City of Huntington Beach (Mills Act Contract)" Sincerely, JF pe Enclosure Sister Cities. Anjo, Japan ♦ Wartakere, New Zealand City of Huntington Beach 2000 Main Street ♦ Huntington Beach, CA 92648 (714) 536-5227 ♦ www.huntingtonbeachca.gov Office of the City Clerk Joan L. Flynn, City Clerk October 21, 2015 Mark and Maria Williams 501 — 10th Street Huntington Beach, CA 92648 Dear Mr and Ms Williams Enclosed for your records is a copy of the fully executed "Historic Property Preservation Agreement Containing Covenants, Conditions and Restrictions Affecting Real Property By and Between the City of Huntington Beach and Mark and Maria Williams for the Real Property Located at 501 10th Street Within the City of Huntington Beach (Mills Act Contract)" Sincerely, Joan L Flynn, CIVIC City Clerk JF pe Enclosure Sister Cities Anjo, Japan ♦ Waitakere, New Zealand