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11-1115_PUELMA FAMILY LIVING TRUST_Historic Property Preservation Agreement - Mills Act Contract This Document was electronically recorded by CR South County C Recorded in Official Records,Orange County Tom Daly,Clerk-Recorder RECORDING REQUESTED BY: 11111111111111[11 1I 1II III�III NO FEE City of San Juan Capistrano 2011000609264 12:21 pm 11/30111 City Clerk's Office 217 Seco Al2 9 32400 Paseo Adelanto 0.00 0.00 0.00 0.00 24.00 0.00 0.00 0.00 San Juan Capistrano, California 92675 AND WHEN RECORDED, MAIL TO: Maria Morris, City Clerk City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, California 92675 Exempt from Recording Fees: Gov Code 27383& 6103 City of San Juan Capistrano This Space for Recorder's Use Only Title of Document: Historic Property Preservation Agreement— Mills Act Contract The Jorge and Estela B. Puelma Family Living Trust dated October 14, 2000, Albert Pryor Jr. House APN 124-201-17 l HISTORIC PROPERTY PRESERVATION AGREEMENT MILLS ACT CONTRACT AN AGREEMENT BETWEEN THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPIISTRANO, COUNTY OF ORANGE, STATE OF CALIFORNIA, AND THE JORGE AND ESTELA B. PUELMA FAMILY LAVING TRUST DATED OCTOBER 14, 2000 ' OWNER OF A DESIGNATED HISTORIC STRUCTURE AT 31321 ANDRES PICO ROAD, SAN JUAN CAPISTRANO, CALIFORNIA. THIS AGREEMENT is made and entered into this f 5'4�'day of 2011, by and between the City of San Juan Capistrano (hereinafter referred to as the "City") and The Jorge and Estela B. Puelma Family Living Trust dated October 14, 2000 (hereinafter referred to as "Owner"). RECITALS WHEREAS, the City of San Juan Capistrano City Council is authorized by California Government Code Section 50280 et seq. (known as "the Mills Act") to enter into contracts with the owners of qualified historic properties to provide for the appropriate use, maintenance, and rehabilitation so that such properties retain their historic characteristics; and, WHEREAS, the Owner possesses fee title in and to certain qualified real property, together with associated structures and improvements thereon, located at 31321 Andres Pico Road, Assessor's Parcel Number 124-201-17, San Juan Capistrano, California 92675, also described as Albert Pryor Jr. House (hereinafter referred to as "Historic Landmark Property"); and, WHEREAS, the property was officially designated as a Historic Landmark Property on the Inventory of Historic and Cultural Landmarks of the City of San Juan Capistrano, subject to subsequent amendments, and pursuant to Section 9-2.310 of the Municipal Code; and, WHEREAS, the City and Owner, for their mutual benefit, now desire to enter into this agreement to limit the use of the property to prevent inappropriate alterations and ensure that structures and site features are preserved and maintained, and to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Sec. 50280 et seq., and to qualify for an assessment of valuation pursuant to Article 1.9, Sec. 439 et seq., Chapter 3, Part 2 of Division 1 of the California Revenue and Taxation Code. Mills Act Contract 2 of 8 Albert Pryor Jr. House NOW THEREFORE, the City and the Owner of the Historic Landmark Property agree as follows: Section 1. Effective Date and Term of_&greement. This agreement shall be effective and commence on the date first written above, and shall remain in effect for a term of ten (10) years thereafter. Each year upon the anniversary of the effective date, such initial term will automatically be extended as provided in California Government Code Section 50280 through 50290 and in Section 2, below. Section 2. Renewal. A. Each year on the anniversary of the effective date of this agreement, a year shall automatically be added to the initial term of the agreement unless written notice of non-renewal is served as provided herein. B. If the Owner or the City desires in any year not to renew the agreement, the Owner or the City shall serve written notice of non-renewal of the agreement on the other party. Unless such notice is served by the Owner to the City at least ninety (90) days prior to the annual renewal date, or served by the City to the Owner at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the term of the agreement as provided herein. C. The Owner may make a written protest of the notice. The City may, at any time prior to the annual renewal date of the agreement, withdraw its notice to the Owner of non-renewal. D. If either the City or the Owner serves notice to the other of non-renewal in any year, the agreement shall remain in effect for the balance of the term then remaining, either from its original execution or from the last renewal of the agreement, whichever may apply. Section 3. Standards and Conditions. A. Owner shall preserve, maintain, and, where necessary, restore or rehabilitate the property and its character-defining features, notably the general architectural form, style, materials, design, scale, proportions, organization of windows, doors, and other openings, textures, details, mass, roof line, porch and other aspects of the appearance of the exterior to the satisfaction of the City. B, Any physical changes shall comply with applicable City specific plans, Land Use Code standards, and the "Secretary of the Interior's Standards for Treatment of Historic Buildings." Mills Act Contract 3 of 8 Albert Pryor Jr. House C. The Owner of the Historic Landmark Property shall secure City Planning Department approval for any exterior changes prior to their execution, such as major landscaping projects, exterior door replacement or exterior alterations, regardless of whether a building permit is required. D. Demolition of any structure; completing exterior alterations or additions not in keeping with the standards listed above; allowing dilapidated, deteriorating or damaged structures such as fences, roofs, doors, walls and windows, storage of scrap lumber, junk, trash, debris, discarded or unused objects, etc.; or similar items is hereby prohibited. E. Owner shall allow reasonable periodic examination by the City, by prior appointment, of the structural integrity of the exterior of the historic property by representatives of the County Assessor and the City, as may be necessary to determine the owners` compliance with the terms and provisions of this agreement. Section 4. Furnishing Information. The Owner hereby agrees to furnish the City with any and all information requested by the City which may be necessary or advisable to determine compliance with the terms and provisions of this agreement. Section 5. Cancellation. A. The City, following a duly noticed public hearing by the City Council as set forth in Government Code Section 50285, may cancel this agreement if it determines that the Owner has breached any of the conditions of this agreement or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified historic property, or if the City determines that the Owner has failed to preserve, restore or rehabilitate the property in the manner specified in Section 3 of this agreement. If a contract is canceled because of failure of the Owner to preserve, maintain, and rehabilitate the Historic Landmark Property as specified above, the Owner shall pay a cancellation fee to the State Controller as set forth in Government Code Section 50286, which states that the fee shall be 12'/z% of the full value of the property at the time of cancellation without regard to any restriction imposed with this agreement. Section 6. Enforcement of Agreement. A. In lieu of and/or in addition to any provisions to cancel the agreement as referenced herein, the City may specifically enforce, or enjoin the breach of, the terms of the agreement. In the event of a default, the City shall give written notice to the Owner by registered or certified mail addressed to the address stated in this agreement, and if such violation is not corrected to the reasonable satisfaction of the City within thirty (30) days Mills Act Contract 4 of 8 Albert Pryor Jr. House thereafter, or if not corrected within such a reasonable time as may be required to cure the breach or default of said breach, or default cannot be cured within thirty (30) days [provided that acts to cure the breach or default may be commenced within thirty (30) days and shall thereafter be diligently pursued to completion by the owners], then the City may, without further notice, declare a default under the terms of this agreement and may bring any action necessary to specifically enforce the obligations of the Owner growing out of the terms of this agreement, apply to any court, state or federal, for injunctive relief against any violation by the Owner or apply for such relief against any violation by the Owner as may be appropriate. B. The City does not waive any claim of default by the Owner if the 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 the City's regulations governing Historic Landmark Properties are available to the City to pursue in the event that there is a breach of this agreement. No waiver by the 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. Section 7. Binding Effect of Agreement.. The Owner hereby subjects the Historic Landmark Property to the covenants, reservations, and restrictions as set forth in this agreement. The City and Owner hereby declare their specific intent that the covenants, reservations, and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon the Owner's successors and assigns in title or interest to the Historic Landmark Property. Every contract, deed, or other instrument hereinafter executed, delivered, and accepted shall be subject to the covenants, reservations, and restrictions expressed in this agreement regardless of whether such covenants, restrictions, and reservations are set forth in such contract, deed, or other instrument. Section 8. Notice. Any notice required by the terms of this agreement shall be sent to the address of the respective parties as specified below or at other addresses that may be later specified by the parties hereto. To City: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, California 92675 To Owners: Jorge and Estela Puelma 31321 Andres Pico Road San Juan Capistrano, CA 92675 Mills Act Contract 5 of 8 Albert Pryor Jr. House Section 9. General Provisions. A. 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 them to be considered joint ventures or members of any joint enterprise. B. The Owner agrees to and shall hold the City and its elected and appointed officials, officers, agents, and employees harmless from liability for damage or claims for damage for personal injuries, including death, and claims for property damage which may arise from the direct or indirect use or operations of the Owner or those of their contractor, subcontractor, agent, employee or other person acting on their behalf which relates to the use, operation, and maintenance of the Historic Landmark Property. The Owner hereby agrees to and shall defend the City and its elected and appointed officials, officers, ,agents, and employees with respect to any and all actions for damages caused by, or alleged to have been caused by, reason of the Owner's activities in connection with the Historic Landmark Property. C. This bold harmless provision applies to all damages and claims for damages suffered, or alleged to have been suffered, and costs of defense incurred, by reason of the operations referred to in this agreement regardless of whether or not the City prepared, supplied, or approved the plans, specifications or other documents for the Historic Landmark Property. D. All of the agreements, rights, covenants, reservations, and restrictions contained in this agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns, and all persons acquiring any part or portion of the Historic Landmark Property, whether by operation of law or in any manner whatsoever. E. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations, or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorney's fees to be fixed by the court, in addition to the court costs and other relief ordered by the court. Mills Act Contract 6 of 8 Albert Pryor Jr. House F. 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. G. This agreement shall be construed and governed in accordance with the laws of the State of California. Section 30. Recordation No later than twenty (20) days after the parties execute and enter into this agreement, the City shall cause this agreement to be recorded in the office of the County Recorder of the County of Orange. IN WITNESS WHEREOF, the City and Owner have executed this agreement on the day and year first written above. CITY OF SAN JUAN C PIS ANO — ------- — -- -------------------- Mayor Jor-ge- B .. The Jorge and Estela B. Puelma Family rum Living Trust dated October 14, 2000, Property Owner ATT : 1 o Cit -- le — ----�. APPROVE© AS TO FORM: City Attorney PUBLIC AGENCY FORM OF ACKNOWLEDGEMENT State of California } County of Orange ) ss. City of San Juan Capistrano ) (Gov't Code 40814 & Civil Code 118 1) On November 16 2011 , before me, Maria Morris, City Clerk, personally appeared Larry Framer,Mayor pro tempore,who proved to me on the basis of satisfactory evidence to the be person(s)whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity,and that by his/her/there signature on the instrument the person(s), or the entity upon behalf of which the person(s)acted, executed the instrument . I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. (SEAL) f � WINE yand and official seal. r Ma 'a o 's, 'ity Clerk OPTIONAL Capacity Claimed by Signers Description of Attached Document Title or Type of Document Mayor pro tempore Historic Property Preservation Agreement — Title Mills Act Contract The Jorge and Estela B. Puelma Family Living Trust dated October 14, Signer is Representing 2009,Albert Pryor Jr.House APN 124-201-17 City of San Juan Capistrano Date of Document:November 15, 2011 Number of Pages: 10 State of California ) County of a l;Jz E) . Ngv a On efore me, _,4-_Vo\j_... :. CA 1t(Je in ert the name and title of officer), personally appeared L S T E LA ?--)EA Ip 12- who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within.instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted., executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and Correct. Witnessrn. 'h d and official sea. Signatur 01) (Sear� Conn.# 187388 g�q �fE��ARY S'UBI.tC•GAtIFORN{A �� GArytd,.Bxp.DEC.26,Zl 11/15/2011 AGENDA REPORT D5 TO: Karen P. Brust, City a FROM: Grant Taylor, Development Services Director SUBJECT: Consideration of Mills Act Contract (MAC) 11-001 for Albert Pryor Jr. House located at 31321 Andres Pico Road (APN 124-201-17) (Jorge and Estela Puelma Family Living Trust) RECOMMENDATION: By motion: 1) Approve a Mills Act Contract (see Attachment 1) for the maintenance and preservation of the following designated historic property: 31321 Andres Pico Road, Albert Pryor Jr. House, APN 124-201-17; Jorge and Estela Puelma Family Living Trust; and, 2) Direct the Development Services Department to process the recording of the Mills Act Contract with the County of Orange. SITUATION: Summary and Recommendation: According to California Government Code Section 50280 ("Mills Act'), the City is authorized to enter into contracts with property owners to provide incentives for historic preservation of qualified historic properties. The provisions of the contract provide for appropriate use, as well as maintenance and rehabilitation of these historic properties while preserving the historic integrity and character-defining features. Property owners must enter into a minimum ten (10) year Mills Act contract with the City to assure maintenance and preservation of the property. As an incentive to enter into the contract, the Mills Act allows the County Tax Assessor to assess the value of the property using a formula which can result in lower property taxes. The owner of the above property has submitted an application requesting a Mills Act Contract for a qualified historic property (see Attachment 2). It is recommended that the City Council authorize the execution and recordation of the proposed contract. Background and Analysis: The Mills Act is a tax incentive developed by Senator John Mills of the State legislature in 1972 as a method to give property owners incentives to preserve their designated Agenda Report Page 2 November 15, 2011 historic property. The incentive provides for a potential reduction of the property taxes paid by the property owner. The Act also provides the legislature with a means to document the property and secure the condition of the property for a minimum of ten (10) years by working with local government. The governing jurisdiction (the City in this case) reviews the applications, verifies the property condition and executes the contract, which is then recorded with the County. Any contracts recorded prior to December 31 of a given calendar year will go into effect for the valuations in the following tax year. The assessments which result from the contract are completely the responsibility of the County Tax Assessor's office. The City Council reviewed and adopted the Mills Act Contract format on October 15, 1996, The City has previously entered into several Mills Act Contracts as indicated on the matrix provided in Attachment 3. The property that is the subject of the current application is located in the Mission Hill- Mission Flats area east of the Library (see Attachment 4). A description and analysis of the property and the Mills Act Contract provisions are described in the Cultural Heritage Commission (CHC) report (see Attachment 5). COMMISSION/BOARD REVIEW AND RECOMMENDATIONS: The Cultural Heritage Commission considered a recommendation on the Mills Act Contract on October 25, 2011. A letter was received from the public recommending a delay in decisions on Mills Act Contracts until the boilerplate contract format is changed to require compliance with all applicable City codes and regulations (included with Attachment 5). The CHC voted 4-0 to recommend approval of the Mills Act Contact as presented by staff. The CHC did not include a recommendation to change the contract format in their motion, but they may schedule the matter for discussion at a future meeting. FINANCIAL CONSIDERATIONS: The County Tax Assessor's Office, which is responsible for valuation of historic properties, has advised City staff that the Mills Act can reduce property taxes typically between 15% and 60%. The City receives approximately nine percent of property tax revenue back from the County. The Mills Act contracts in place so far in San Juan Capistrano have seen a range of tax reductions between 11% and 89%, averaging 55%, for property owners compared to their prior tax bills. Based on the Orange County Tax Assessor's property value and tax information for the current year for this property, the City will receive approximately $240 in property tax revenue from the property this year. However, the property is in the process of a change in ownership so the property would be re-assessed according to current market value and may increase fairly significantly, perhaps threefold. Staff estimates that a potential 15% to 60% reduction in the property tax for this building under the Mills Act Contract could result in a loss of property tax revenue to the City of between $90 and $360 a year. This fiscal impact to the City is negligible and is considered insignificant in light of the public benefit to the community from preservation of this historic structure. Agenda Report Page 3 November 15, 2011 NOTIFICATION: There are no public notification requirements for Mills Act Contracts. The applicant was notified of the date of the meeting. RECOMMENDATION: By motion: 1) Approve a Mills Act Contract (see Attachment 1) for the maintenance and preservation of the following designated historic property: 31321 Andres Pico Road, Albert Pryor Jr. House, APN 124-201-17; Jorge and Estela Puelma Family Living Trust; and, 2) Direct the Development Services Department to process the recording of the Mills Act Contract with the County of Orange. Respectfully submitted, Prepared by: Grant Taylor Teri Delcamp Development Services Director Historic Preservation Manager Attachment(s): 1. Mills Act Contract 2. Inventory of Historic and Cultural Landmarks 3. Existing Mills Act Contract properties 4. Vicinity Map 5. October 25, 2011, Cultural Heritage Commission report, correspondence and minutes 6. General photographs of the building RECORDING REQUESTED BY: City of San Juan Capistrano City Clerk's Office 32400 Paseo Adelanto San Juan Capistrano, California 92675 AND WHEN RECORDED, MAIL TO: Maria Morris, City Clerk City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, California 92675 Exempt from Recording Fees: Gov Code 27383 & 6103 City of San Juan Capistrano This Space for Recorder's Use Only Title of Document: Historic Property Preservation Agreement— Mills Act Contract The Jorge and Estela B. Puelma Family Living Trust dated October 14, 2000, Albert Pryor Jr. House APN 124-201-17 Page 1 ATTACHMENT 1 HISTORIC PROPERTY PRESERVATION AGREEMENT MILLS ACT CONTRACT AN AGREEMENT BETWEEN THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, COUNTY OF ORANGE, STATE OF CALIFORNIA, AND THE JORGE AND ESTELA B. PUELMA FAMILY LIVING TRUST DATED OCTOBER 14, 2000, OWNER OF A DESIGNATED HISTORIC STRUCTURE AT 31321 ANDRES PICO ROAD, SAN JUAN CAPISTRANO, CALIFORNIA. THIS AGREEMENT is made and entered into this day of , 2011, by and between the City of San Juan Capistrano (hereinafter referred to as the "City") and The Jorge and Estela B. Puelma Family Living Trust dated October 14, 2000 (hereinafter referred to as "Owner"). RECITALS WHEREAS, the City of San Juan Capistrano City Council is authorized by California Government Code Section 50280 at seq. (known as "the Mills Act") to enter into contracts with the owners of qualified historic properties to provide for the appropriate use, maintenance, and rehabilitation so that such properties retain their historic characteristics; and, WHEREAS, the Owner possesses fee title in and to certain qualified real property, together with associated structures and improvements thereon, located at 31321 Andres Pico Road, Assessor's Parcel Number 124-201-17, San Juan Capistrano, California 92675, also described as Albert Pryor Jr. House (hereinafter referred to as "Historic Landmark Property"); and, WHEREAS, the property was officially designated as a Historic Landmark Property on the Inventory of Historic and Cultural Landmarks of the City of San Juan Capistrano, subject to subsequent amendments, and pursuant to Section 9-2.310 of the Municipal Code; and, WHEREAS, the City and Owner, for their mutual benefit, now desire to enter into this agreement to limit the use of the property to prevent inappropriate alterations and ensure that structures and site features are preserved and maintained, and to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Sec. 50280 et seq., and to qualify for an assessment of valuation pursuant to Article 1.9, Sec. 439 et seq., Chapter 3, Part 2 of Division 1 of the California Revenue and Taxation Code. Page 2 Mills Act Contract 2 of 8 Albert Pryor Jr. House NOW THEREFORE, the City and the Owner of the Historic Landmark Property agree as follows: Section 1. Effective Date and Term of Agreement. This agreement shall be effective and commence on the date first written above, and shall remain in effect for a term of ten (10) years thereafter. Each year upon the anniversary of the effective date, such initial term will automatically be extended as provided in California Government Code Section 50280 through 50290 and in Section 2, below. Section 2. Renewal. A. Each year on the anniversary of the effective date of this agreement, a year shall automatically be added to the initial term of the agreement unless written notice of non-renewal is served as provided herein. B. If the Owner or the City desires in any year not to renew the agreement, the Owner or the City shall serve written notice of non-renewal of the agreement on the other party. Unless such notice is served by the Owner to the City at least ninety (90) days prior to the annual renewal date, or served by the City to the Owner at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the term of the agreement as provided herein. C. The Owner may make a written protest of the notice. The City may, at any time prior to the annual renewal date of the agreement, withdraw its notice to the Owner of non-renewal. D. If either the City or the Owner serves notice to the other of non-renewal in any year, the agreement shall remain in effect for the balance of the term then remaining, either from its original execution or from the last renewal of the agreement, whichever may apply. Section 3. Standards and Conditions. A. Owner shall preserve, maintain, and, where necessary, restore or rehabilitate the property and its character-defining features, notably the general architectural form, style, materials, design, scale, proportions, organization of windows, doors, and other openings, textures, details, mass, roof line, porch and other aspects of the appearance of the exterior to the satisfaction of the City. B. Any physical changes shall comply with applicable City specific plans, Land Use Code standards, and the "Secretary of the Interior's Standards for Treatment of Historic Buildings." Mills Act Contract 3 of 8 Albert Pryor Jr. House C. The Owner of the Historic Landmark Property shall secure City Planning Department approval for any exterior changes prior to their execution, such as major landscaping projects, exterior door replacement or exterior alterations, regardless of whether a building permit is required. D. Demolition of any structure; completing exterior alterations or additions not in keeping with the standards listed above; allowing dilapidated, deteriorating or damaged structures such as fences, roofs, doors, walls and windows; storage of scrap lumber, junk, trash, debris, discarded or unused objects, etc.; or similar items is hereby prohibited. E. Owner shall allow reasonable periodic examination by the City, by prior appointment, of the structural integrity of the exterior of the historic property by representatives of the County Assessor and the City, as may be necessary to determine the owners' compliance with the terms and provisions of this agreement. Section 4. Furnishing Information. The Owner hereby agrees to furnish the City with any and all information requested by the City which may be necessary or advisable to determine compliance with the terms and provisions of this agreement. Section 5. Cancellation. A. The City, following a duly noticed public hearing by the City Council as set forth in Government Code Section 50285, may cancel this agreement if it determines that the Owner has breached any of the conditions of this agreement or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified historic property, or if the City determines that the Owner has failed to preserve, restore or rehabilitate the property in the manner specified in Section 3 of this agreement. If a contract is canceled because of failure of the Owner to preserve, maintain, and rehabilitate the Historic Landmark Property as specified above, the Owner shall pay a cancellation fee to the State Controller as set forth in Government Code Section 50286, which states that the fee shall be 12/2% of the full value of the property at the time of cancellation without regard to any restriction imposed with this agreement. Section 6. Enforcement of Agreement. A. In lieu of and/or in addition to any provisions to cancel the agreement as referenced herein, the City may specifically enforce, or enjoin the breach of, the terms of the agreement. In the event of a default, the City shall give written notice to the Owner by registered or certified mail addressed to the address stated in this agreement, and if such violation is not corrected to the reasonable satisfaction of the City within thirty (30) days Page 4 Mills Act Contract 4 of 8 Albert Pryor Jr. House thereafter, or if not corrected within such a reasonable time as may be required to cure the breach or default of said breach, or default cannot be cured within thirty (30) days [provided that acts to cure the breach or default may be commenced within thirty (30) days and shall thereafter be diligently pursued to completion by the owners], then the City may, without further notice, declare a default under the terms of this agreement and may bring any action necessary to specifically enforce the obligations of the Owner growing out of the terms of this agreement, apply to any court, state or federal, for injunctive relief against any violation by the Owner or apply for such relief against any violation by the Owner as may be appropriate. B. The City does not waive any claim of default by the Owner if the 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 the City's regulations governing Historic Landmark Properties are available to the City to pursue in the event that there is a breach of this agreement. No waiver by the 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. Section 7. Binding Effect of Agreement. The Owner hereby subjects the Historic Landmark Property to the covenants, reservations, and restrictions as set forth in this agreement. The City and Owner hereby declare their specific intent that the covenants, reservations, and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon the Owner's successors and assigns in title or interest to the Historic Landmark Property. Every contract, deed, or other instrument hereinafter executed, delivered, and accepted shall be subject to the covenants, reservations, and restrictions expressed in this agreement regardless of whether such covenants, restrictions, and reservations are set forth in such contract, deed, or other instrument. Section 8. Notice. Any notice required by the terms of this agreement shall be sent to the address of the respective parties as specified below or at other addresses that may be later specified by the parties hereto. To City: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, California 92675 To Owners: Jorge and Estela Puelma 31321 Andres Pico Road San Juan Capistrano, CA 92675 Page 5 Mills Act Contract 5 of 8 Albert Pryor Jr. House Section 9. General Provisions. A. 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 them to be considered joint ventures or members of any joint enterprise. B. The Owner agrees to and shall hold the City and its elected and appointed officials, officers, agents, and employees harmless from liability for damage or claims for damage for personal injuries, including death, and claims for property damage which may arise from the direct or indirect use or operations of the Owner or those of their contractor, subcontractor, agent, employee or other person acting on their behalf which relates to the use, operation, and maintenance of the Historic Landmark Property. The Owner hereby agrees to and shall defend the City and its elected and appointed officials, officers, agents, and employees with respect to any and all actions for damages caused by, or alleged to have been caused by, reason of the Owner's activities in connection with the Historic Landmark Property. C. This hold harmless provision applies to all damages and claims for damages suffered, or alleged to have been suffered, and costs of defense incurred, by reason of the operations referred to in this agreement regardless of whether or not the City prepared, supplied, or approved the plans, specifications or other documents for the Historic Landmark Property. D. All of the agreements, rights, covenants, reservations, and restrictions contained in this agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns, and all persons acquiring any part or portion of the Historic Landmark Property, whether by operation of law or in any manner whatsoever. E. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations, or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorney's fees to be fixed by the court, in addition to the court costs and other relief ordered by the court. Mills Act Contract 6 of 8 Albert Pryor Jr. House F. 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. G. This agreement shall be construed and governed in accordance with the laws of the State of California. Section 10. Recordation No later than twenty (20) days after the parties execute and enter into this agreement, the City shall cause this agreement to be recorded in the office of the County Recorder of the County of Orange. IN WITNESS WHEREOF, the City and Owner have executed this agreement on the day and year first written above. CITY OF SAN JUAN CAPISTRANO By: Mayor By: By: The Jorge and Estela B. Puelma Family Living Trust dated October 14, 2000, Property Owner ATTEST: City Clerk APPROVED AS TO FORM: City Attorney Page 7 Mills Act Contract 7 of 8 Albert Pryor Jr. House STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF SAN JUAN CAPISTRANO } I, MARIA MORRIS, City Clerk of the City of San Juan Capistrano, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of a Mills Act Contract adopted at a meeting of the City Council of the City of San Juan Capistrano, California held on November 15, 2011, by the following vote: AYES: NOES: ABSENT: ABSTAIN: (SEAL) Maria Morris, City Clerk Page 8 Mills Act Contract 8 of 8 Albert Pryor Jr. House ACKNOWLEDGMENT STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss On before me, a Notary Public, appeared ❑ personally known to me; or, ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or entity upon behalf of which the person(s) acted, executed this instrument. WITNESS my hand and official seal. Signature Page 9 INVENTORY OF HISTORIC AND CULTURAL LANDMARKS (IHCL) city of san juan capistrano, california The Inventory of Historic and Cultural Landmarks (IHCL) consists of a list of structures and sites within the City that have been deemed historically and/or culturally significant, at a local level, due to their architectural style and condition; association with historic persons; and/or association with historic event(s). Structures and sites listed on the IHCL require City discretionary review and approval of rehabilitation and/or site development plans prior to issuance of any grading or building permit. Private structures listed on the IHCL are potentially eligible for"Mills Act'contracts with the City,which can provide a marginal reduction in property tax liability in exchange for commitments to maintain such structures in their original condition and/or rehabilitate them in a historically appropriate manner. No. Property Name &Address Assessor Parcel No. P1. Mission San Juan Capistrano (NRHP) 124-180-06, 124-180-03 26801 Ortega Highway & 31522 Camino Capistrano' P2 Rios Adobe 121-160-16 31781 Los Rios Street P3. Montanez Adobe (NRHP) 121-143-14 31745 Los Rios Street P4, Silvas Adobe 121-160-48 31861 Los Rios Street P5. Mission Kiln 124-202-46 31401 EI Horno Street P6. Miguel Parra Adobe (NRNP) 666-191-18 27762 Ortega Highway P7. Pablo Pryor Adobe/Hide House 121-254-04 33751 Camino Capistrano P8. Bias Aguilar Adobe (Casa de Esperanza) (NRHP) 124-160-08, -19 31806 EI Camino Real P9. Manuel Garcia Adobe (NRNP) 121-150-28 31861 Camino Capistrano P10. Burruel Adobe Ruins 124-160-12 EI Camino Real and Forster Street P11. Domingo Yorba Adobe (NRNP) 121-150-28 31871 Camino Capistrano P12. Juan Avila Adobe 121-150-26 31831 Camino Capistrano I NCL.FinaL 2011 Mar Page 1 ATTACHMENT 2 Inventory of Historic and Cultural Landmarks Page 2 No. Property Name &Address T Assessor Parcel No. P13. EI Adobe Restaurant/Juzgado/Jose Antonio Yorba 121-150-13 Adobe 31891 Camino Capistrano P14. Santa Fe Depot 121-141-17 26701 Verdugo Street P15. Egan Residence 124-160-32 31892 Camino Capistrano P16. Buddy Forster Residence (building) 121-143-17 31721 Los Rios Street (formerly 25642 Cam. Del Avion) P17. Frank A. Forster Mansion (NRNP) 666-241-09 27182 Ortega Highway P18, Garcia/Pryor Residence - O'Neill Museum 121-160-47 31831 Los Rios Street P19. Hankey/Rowse Cottage 664-031-26 30981 Via Cristal (formerly 28232 Ortega Highway) P20. C. Russell Cook Barn 121-182-58 32222 Del Obispo Street P21, Hot Springs Dance Hall 668-101-03 32506 Paseo Adelanto P22. Joel Congdon Residence (NRNP) 121-190-57 32701 Alipaz Street P23. R. B. Cook House/Ocean Hills Community Church 121-182-60 32272 Del Obispo Street P24. Errecarte House 664-053-01 30882 Via Errecarte (formerly 28432 Ortega Highway) P25. Harrison Farmhouse (NRHP) 666-191-18 27762 Ortega Highway P26. English/Hardy House 121-143-02 26652 Ramos Street (formerly on Camino Capistrano) P27. Old San Juan Capistrano Fire Station Complex 124-203-03; -21 La Matanza and EI Horne P28. Community Christian Church 124-170-11 31612 EI Camino Real P29. Eyraud-Chabre-Lohrbach House 124-190-07 31382 EI Camino Real (HCL.Final 2011 Mar Page 2 Inventory of Historic and Cultural Landmarks Page 3 No. I Property Name &Address Assessor Parcel No, P30. Stroschein House (NRNP) 124-170-08 31682 EI Camino Real P31, Esslinger Building (NRNP) 124-160-17 31866 Camino Capistrano P32. EI Peon Complex/Ferris Kelly Buildings 124-160-23 26822, 26832, 26842 Ortega Highway 31752, 31754, 31762 Camino Capistrano P33. Durnford/Marco Forster House 124-201-24 31319 Andres Pico Road P34. Ross Ranch House 124-212-16 31491 La Calera Street P35, Walter Congdon House (rear); C.C. McCary House 124-203-23 (front), 31501 La Matanza Street P36. Albert Pryor Jr. House 124-201-17 31321 Andres Pico Road P37 Bill Rosenbaum House 124-202-27 31440 EI Camino Real P38 Hugo Forster House #2 124-201-13 31341 Andres Pico Road P39 Arley Leck House (building) 121-160-48 31865 Los Rios Street Roger Y. Williams/Swanner House Complex 121-050-03; portion of 121- P40. (NRNP) 050-19 29991 Camino Capistrano Historic Districts D1. Mission Refuse Area, EI Camino Real & EI Horno 124-203-15 D2. Mission Cemetery, Ortega Highway 650-142-02 D3. River Street (located in the Los Rios Historic portions of 121-160-17, -20, District) -21, -22, & -28 D4. Capistrano Union High School Site/Stone Field 124-190-22 (Serra Continuation High School), 31422 Camino Capistrano D5. Los Rios Historic District (NRNP) 121-141-17, -20, -21, -22, -23, - 24; 121-142-11, -13, -14; 121-143-03, -04, -05, -15, -16, - 17; 121-160-08;-09, -10, -11, -14, - 15, -16, -17, 41, 47, 48 INCL Final.2011 Ma( Page 3 Inventory of Historic and Cultural Landmarks Page 4 No. Property Name &Address Assessor Parcel No. D6. Little Hollywood: 31362 & 31342 Ramos Street, 121-142-01, -17; 649-281-05 26604 Mission Street Historic Streets S1. Los Rios Street (from Del Obispo Street to Mission Street)(NRHP) S2. EI Camino Real (from La Zanja to Forster Street) S3 Camino Capistrano (from Ortega Highway to Del Obispo Street) S4. Spring Street (from EI Camino Real to east terminus at 1-5) Other NRHP Listings, not on local INCL Hot Springs Road, Ortega Hwy., (NRNP) (NRNP) "National Register of Historic Places" tHCL.Final.2011 Mar Page 4 Active Mills Act Contract Properties Log No. Historic Property Name Site Address APN 1 Hankey-Rowse House 30981 Via Cristal 664-031-26 2 Trulis House 31711 Los Rios Street 121-143-05 Rodman House 31731 Los Rios Street 121-143-15 31733 Los Rios Street 121-143-16 Buddy Forster House 31721 Los Rios Street 121-143-17 3 Stroschein House 31682 EI Camino Real 124-170-08 MAC 06-01 Combs House 26711 Verdu o Street 121-141-24 MAC 06-02 Clarence Lobo House 31712 Los Rios Street 121-141-20 MAC 06-03 Rios/Stanfield House 31701 Los Rios Street 121-143-04 MAC 06-04 Walter Congdon House 31501 La Matanza 124-203-23 Cleo C. McCary House 31501 La Matanza " MAC 06-05 Ross Ranch House 31491 La Calera 124-212-16 MAC 06-06 Durnford/Marco Forster 31319 Andres Pico Rd. 124-201-24 MAC 07-01 Esslin er Building 31866 Camino Capistrano 124-160-17 MAC 08-001 Frank A. Forster Mansion 27182 Ortega Highway 666-241-09 D D n M Z w i THE CITY OF SAN JUAN CAPISTRANO .r PROJECT LOCATION MAP /N� l� } 1� �} �.. 4� 1 f$ V ry t :i4 � MAC 11-001, Albert Pryor Jr. House 31321 Andres Pico Road i rY 1} 5 f} I 4. Y �9 . "a x MAC 11-002, Salvador Labat House 31600 Los Rios Street * S 4i r t` u�j�,l � Pry � 4✓ � "'� t d � t}^° k (i OEL XH1N 1�' � NOF! � •+"e`° I}" F � w i rte� '" � �a.�r `�"' `—"` � 4, •,.�,t`a��w; I 0 3000 6030 90010 Feet TWOWn—— ATTACHMENT 4 AGENDA ITEM October 25, 2011 TO: Cultural Heritage Commission FROM: Development Services Department SUBJECT: Consideration of Mills Act Contract (MAC) 11-001 Albert Pryor Jr. House, a request for a recommendation on the approval of a Mills Act Contract for the Albert Pryor Jr. House located at 31321 Andres Pico Road (Applicant: Jorge & Estela Puelma) (Project Manager: Teri Delcamp, Historic Preservation Manager) RECOMMENDATION By motion: recommend that the City Council authorize execution of a Mills Act Contract with the property owner for the maintenance and preservation of the following property: 31321 Andres Pico Road, Albert Pryor Jr. House, APN 124-201-17 SITUATION APPLICANT: The Jorge and Estela B. Puelma Family Living Trust dated October 14, 2000 31321 Andres Pico Road San Juan Capistrano, CA 92675 PROJECT SUMMARY The above applicant has submitted an application requesting the City to enter into a Mills Act Contract for the Albert Pryor Jr. House (see Attachment 1). The property is already designated on the Inventory of Historic and Cultural Landmarks (INCL) as an individual building (see Attachment 2). The Council has final authority on Mills Act Contracts and the contract needs to be recorded before December 31 if it is to take effect for the next tax year. The City Council is scheduled to consider the Cultural Heritage Commission's recommendation on November 15, 2011. According to California Government Code Section 50280 ("Mills Act"), the City is authorized to enter into contracts with property owners to provide incentives for historic preservation of qualified historic properties. The provisions of the contract provide for appropriate use as well as maintenance and rehabilitation of these historic properties while preserving the historic integrity and character-defining features. Property owners must enter into a minimum ten (10) year Mills Act contract with the City to assure maintenance and preservation of the property. As an incentive to enter into the contract, Page 1 ATTACHMENT 5 CHC Agenda Item -2- October 25, 2011 Mills Act Contract, Albert Pryor Jr. House the Mills Act allows the County Tax Assessor to assess the value of the property using a formula which can result in lower property taxes. PROJECT BACKGROUND AND DESCRIPTION The Mills Act is a tax incentive developed by Senator John Mills of the State legislature in 1972 as a method to give property owners incentives to preserve their designated historic property. The incentive provides for a potential reduction of the property taxes paid by the property owner. The Act also provides the legislature with a means to document the property and secure the condition of the property for a minimum of ten (10) years by working with local government. The governing jurisdiction (City in this case) reviews the applications, verifies the property condition and executes the contract, which is then recorded with the County. The assessments which result from the contract are completely the responsibility of the County Tax Assessor's office. The City Council reviewed and adopted the Mills Act Contract format on October 15, 1996. The City has previously entered into several Mills Act Contracts (see Attachment 3). The current request is for the Albert Pryor Jr. House. Attachment 5 includes general photographs of the building. The site was identified as potentially historic during staffs survey of the Mission Hill-Mission Flats area in 2004-2006. The owner subsequently applied for historic designation and the site as added to the Inventory of Historic and Cultural Landmarks on December 5, 2006. The home is one of several in the Mission Hill area that was built by Fred Stroschein. The first deed owner was an absentee landlord, Aleen Morrison. However, by 1930, Albert Pryor Jr. owned and lived in the house so it is named for this association with the first resident owner. The home is a single story U-shaped, single story house with a detached garage built in 1926. The house is situated on a gently sloping lot fronting on Ysidora Street and Andres Pico Road. It consists of two bedrooms and one bath in approximately 1101 square feet. It has a roof that incorporates low pitched cross gables. The home's Spanish Colonial Revival style is evident in its trowelled white stucco walls; true divided lite wood windows, many adorned with decorative, period wrought iron window grilles or battened wood shutters; single barrel clay tile roof with random mortar packing; clipped eaves with exposed rafter tails; and a chimney with a decorative brick and tile cap. The site includes a detached flat roofed garage with a clay tile pent roof interrupting the front facing gable, with a driveway featuring newer decorative paving material, oriented off Andres Pico Road. The site is a little over 5,960 square feet and the grounds are well maintained with mature trees, drought tolerant plantings and lawn. The brick pilasters and wrought iron fence were added with a permit in 2000. No other apparent alterations have been made and the site continues to retain its historic integrity. Page 2 CHC Agenda Item -3- October 25, 2011 Mills Act Contract, Albert Pryor Jr. House The draft Mills Act Contract for the property (see Attachment 4) contains the following mandated provisions: • Creates an initial ten (10) year contract term • Establishes automatic annual renewal of the contract • Includes minimum property maintenance standards and incorporates the "Secretary of the Interior's Standards for the Treatment of Historic Properties" • Requires owners to furnish information as needed to determine agreement compliance • Binds the property owner to the agreement. • Provides both parties to file notices to terminate the agreement • Establishes provisions for the City to enforce the agreement • Grants the City authority to cancel the agreement with a mandated 121/2% penalty • Indemnifies and holds the City harmless from all claims • Requires the agreement to be recorded with the County Recorder PROJECT ANALYSIS The General Plan's Cultural Resources Element states as a goal the City will "Identify and implement programs to assist and encourage private property owners to preserve historic, archeologic, and paleologic resources within the City." The Mills Act is intended to assist private property owners by providing a monetary incentive (potential savings in property taxes) to qualified historic properties, thereby meeting this goal of the Cultural Resources Element. City Council Policy 601 states the intent and purpose of City Council Policy 601: Historic, Archaeological & Paleontological Resource Management is "To effect and accomplish the protection, enhancement and perpetuation of historically significant structures, sites, objects and historic districts which represent or reflect elements of the /Nation's, State's and/or City's cultural, social, economic, political and architectural history." The Mills Act is intended to assist in protection of historic properties by providing a monetary incentive to private property owners. The potential savings in property taxes for qualified historic properties translates into monies that are available to the owner to better maintain and preserve the historic property. The County Tax Assessor's Office, which is responsible for valuation of historic properties, has advised City staff that the Mills Act can reduce property taxes typically between 15% and 60%. The City receives approximately nine percent of property tax revenue back from the County. Based on the Orange County Tax Assessor's property value and tax information for the current year for this property, the City will receive approximately $240 in property tax revenue from the property this year. However, the property is in the process of a change in ownership so the property would be re- assessed according to current market value and may increase fairly significantly, perhaps threefold. Staff estimates that a potential 15% to 60% reduction in the property tax for this building under the Mills Act Contract could result in a loss of property tax revenue to the City of between $90 and $360 a year. This fiscal impact to the City is Page 3 CHC Agenda Item -4- October 25, 2011 Mills Act Contract, Albert Pryor Jr. House negligible and is considered insignificant in light of the public benefit to the community from preservation of this historic structure. CONCLUSION The Mills Act Contract application for the above property, as conditioned, meets the goals of the General Plan and City Council Policy 601 previously adopted by City Council. The Mills Act is intended to assist in protection of historic properties by providing a monetary incentive to private property owners. This potential savings in property taxes to qualified historic properties translates into monies that are available to better maintain and preserve the historic properties. The cost savings annually to the applicants are significant, whereas the property tax revenue loss to the City is relatively minimal. For these reasons, staff recommends approval of the Mills Act Contract for the Albert Pryor Jr. House, NOTIFICATION The applicant was notified of the date of the meeting, and a copy of the agenda item was provided to the applicant. RECOMMENDATION By motion: recommend that the City Council authorize execution of a Mills Act Contract with the property owner for the maintenance and preservation of the following property: 31321 Andres Pico Road, Albert Pryor Jr. House, APN 124-201-17 Respectfully submitted, Teri Delcamp Historic Preservation Manager Attachments: 1. Vicinity Map 2. Current Inventory of Historic and Cultural Landmarks 3. Existing Mills Act Contract properties 4. Draft Mills Act Contract for Albert Pryor Jr. House 5. Photographs Page 4 October 21, 2011 OCT 21 2011 Cultural Heritage Commission COM.MUrG ✓Et Teri Delcamp, Historic Preservation Manager, City of San Juan Capastr C;_,VIENT 32400 Paseo Adelanto San Juan Capistrano, CA. RE: Cultural Heritage Meeting 10/25/2011, requests to grant the Mills Act to the Pryor House and the Labat House. I am in favor, if modified, of the Mills Act contract being granted to the above properties and any other historical site that qualifies. Since the Mills Act currently grants the City to enter into contracts with the owners of qualified historical properties, the owner must participate in restoration and maintenance of the historic property, and in return,will receive tax relief. It is a good preservation mechanism. However,the Mills Act contract as it was adopted by the City Council in 1996, currently contains no provision requiring the property to comply with applicable laws, codes or regulatory requirements and only addresses historic standards and guidelines. A good example is the non-compliance and multiple documented violations regarding City codes and permits at the Forster Mansion historical site after being awarded the Mills Act as it now stands. It is clear the City Council, directed by the CHC,needs to add provisions to the existing Mills Act as other cities have adopted, requiring mandatory compliance with applicable City laws and codes. Violators would then been in breach of the Mills Act contract and appropriate actions could be taken other than the existing mechanism now in place. The CHC should postpone the above Mills Act requests, and immediately ask the City Council to modify the current Mills Act of 1996,revising the contract to include penalties for non-compliance of City laws, codes, and required permits that should have begun with the Forster Mansion application. Sincerely, 1W Cameron enier Page 5 P rt . > E, k' f gg tC a ° x � All tf 3 fi 7 Y w Pf py � ., If i n.W tz c J SS � r 3§ vv A r �3c me", +Ir ZZ Page 7 a �,. N OD J 4 r't Al y 'G s x z sem " R'eT 0 4 bj `� M W'` >ax v Y a. 6 , 5 w Y ti *e e � 1 y P 4y 1 w jY. l �x� yds WobF i` - o £2 � r CHC Action Memorandum 2 Meeting of October 25, 2011 \allapplicable ric District, noted as the Cliff Blank House #1 in the District form. The Mills is state legislation that allows owners of historic properties to receive a ntial property tax reduction in return for the continued preservation of the ' home. The contract has a perpetual 10-year term unless there is notice of re al or a cancellation by the City. Several historic properties in San Juan istran nd many throughout California) have Mills Act Contracts. A Mills Act ract is r rded on the property after City Council approval, and passes on ccessors in " terest. The potential reduction in property taxes has a minimal ct on the City udget, but is often a big benefit to the owners who incur the for maintaining it historic buildings. and the CHC noted a tter received on these two Mills Act Contract items Cameron Grenier, refer to another historic property with a Mills Act ract (Forster Mansion). letter requested the CHC to continue ideration and encourage the Ci ouncil to change the contract language in interim to include a section requi owners with a Mills Act Contract to ly with all applicable codes and r Mations. In response to questions regarding the letter, Ms. Delcamp respond that including a requirement for compliance with all applicable codes and regu 'ons in the Mills Act Contracts would provide an additional mechanism for enfor ' g codes. The City Council previously considered a similar request and decline o add the section to the Mills Act Contract. Deborah Warkentien, owner of the Salvador Labat House, as available for questions and responded that she has owned and lived in the ouse for four years, teaches history and loves the Los Rios area. After due consideration, Commissioner Siegel moved, and Commissione ryon seconded, to recommend that the City Council approve a Mills Act Contrac or the Salvador Labat House, 31600 Los Rios Street, APN 121-142-13, a presented by staff. The motion passed 4-0. 2. Consideration of Mills Act Contract (MAC) 11-001 Albert Pryor Jr. House located at 31321 Andres Pico Road. (Applicant: Jorge & Estela Puelma) Project Manager Teri Delcamp made the staff presentation and recommendation that the CHC recommend approval to the City Council for a Mills Act Contract on the Albert Pryor Junior House. The house is listed on the City's Inventory of Historic and Cultural Landmarks (INCL) and is within the Mission Hill area east of the library. The property is in escrow, and the purchaser requested the current owner } to apply for the Mills Act Contract. All the particulars stated for the first agenda item similarly apply to this item. Jorge Puelma, owner of Albert Pryor Junior House, arrived at the meeting after the item was concluded. Page 10 CHC Action Memorandum 3 Meeting of October 25, 2011 In response to questions, Ms. Delcamp clarified that the current owner had applied to have this house and another house he owns on EI Camino Real designated on the INCL. The CHC and City Council approved the designation of this house, but not the other house; the CHC deemed an arbor in front of the other house detracted from the historic character of the house but the owner was not willing to remove it. As far as staff knows, the owner and purchaser are separate entities. After due consideration, Commissioner Siegel moved, and Commissioner deHaan seconded, to recommend that the City Council approve a Mills Act Contract for the Albert Pryor Junior House, 31321 Andres Pico Road, APN 124- 201-17, as presented by staff. The motion passed 4-0. \wasexcited C HEARINGS I ON/STAFF COMMENT onse t uestions from Chair Porter and Commissioner deHaan, Ms. Delcamp that the er from Ms. Grenier would be forwarded to the City Council with the report for Mills Act Contract items. The City Council has the authority to if they want to ake changes to those Mills Act Contract. If the CHC wants to recommending terations to the boilerplate Mills Act Contract, it can be zed for a future mee orter was excited about recent archaeological test excavations by the Blas Adobe as part of the Natu Education Facility grant project and noted that all the Commissioners present had seen em. In response to her question, Ms. Delcamp clarified that this work is a small part of overall grant, and that no more excavations would be done unless the archaeologist re mends it for a future phase. Chair Porter also announced that the annual Ghost and Le nds Walk this Saturday is sold out with about 260 people registered:They may do the rs two nights next year. Also, author Frank Ritenour is currently writing a book about ana Point, but will next turn his attention to a book on San Juan Capistrano. Chair Po r also mentioned she has been reading the fascinating court case about Modesta Avila d historical information from the case will be incorporated into the walking tours. Vice-Chair Tryon announced he will be doing_a book-signing of a Images of America San Juan Capistrano book at the newly expanded Costco on No mber 16. He also asked about the status of the Marriott Residence Inn Historic Depictio rogram (HDP). I Staff responded that the developer has retained an individual to finish it d submit itto the City and Ms. Delcamp spoke with her late last week. Commissioner Siegel asked if the CHC will have a meeting to consider the toric 1 Town Center Master Plan EIR during the 45-day public review period. Staff will folio up Page 11 ALBERT PRYOR. HO'USE Oil 1 i • a: Mae 32 �3t9QF'AS Cd AC) LAF!#(3 MEM €SFT EUTY:GOUNCIL SAN JUAN CAAtSTRANO,CaY- (949)493-1171 (J 9)493 1053� S3 ` 3," "ntaaroeatEa LAA F& �E csraci saro 1961 URRY E�ft Www sw!fUancupistrano,org 1776 DEREK REEVE JOHN TAYLOR r R NOTIFICATION OF MEETING OF POTENTIAL INTEREST OF THE SAN JUAN CAPISTRANO CITY COUNCIL The City Council of San Juan Capistrano will meet at 6:00 p.m. on Tuesday, November 15, 2011, in the City Council Chamber in City Hall, to consider: "Consideration of Mills Act Contract (MAC) 11001 for the Albert Pryor Jr. House Located at 31321 Andres Pico Road (APN 124-201-17)(Jorge and Estella Puelma Family Trust)" — Item No. D5, If you have specific thoughts or concerns regarding this item, you are encouraged to participate in this decision making process. You can communicate with the City Council through correspondence addressed to the Council and/or by attending the meeting and speaking to the Council during the public meeting. Correspondence related to this item must be received at the City Clerk's office by 5:00 p.m. on Monday, November 14, 2011, to allow time for the Council to consider its content. If you would like to speak at the meeting, please complete a yellow "Request to Speak" form found inside the entrance to the Council Chamber. This form is turned in at the staff table, just in front of the Council dais. You will be called to speak by the Mayor when the item is considered. You have received this notice at the request of the City staff member Teri Delcamp, Historic Preservation Manager. You may contact that staff member at (949) 443-6330 with any questions. The agenda, including agenda reports, is available to you on our web site: www.sannuancapistrano.org. If you would like to subscribe to receive a notice when agendas are posted to the web site, please make that request by sending an e-mail to: cit clerk san'uanca istrano.or . Maria Morris, CMC City Clerk cc: Jorge and Estela Puelma, Margarita De La Rosa San Jzian CaIiist anao. _ � . ftr the Payf to Fnhwwe Ike /�'vMw MEMORANDUM November 16, 2011 TO: Teri Delcamp, Historic Preservation Manager FROM: Christy Jakl, Deputy City Clerk RE: Mills Act Contracts for Recording — Salvador Labat douse and Albert Pryor Jr. House ..Attached are the two original above referenced contracts for recording. Once the documents are recorded, please forward the originals to our office. RECORDING REQUESTED BY: City of San Juan Capistrano City Clerk's Office 32400 Paseo Adelanto San Juan Capistrano, California 92675 AND WHEN RECORDED, MAIL TO: Maria Morris, City Clerk City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, California 92675 Exempt from Recording Fees: Gov Code 27383& 6103 City of San Juan Capistrano This Space for Recorder's Use Only Title of Document: Historic Property Preservation Agreement— Mills Act Contract The Jorge and Estela B. Puelma Family Living Trust dated October 14, 2000, Albert Pryor Jr. House APN 124-201-17 HISTORIC PROPERTY PRESERVATION AGREEMENT MILLS ACT CONTRACT AN AGREEMENT BETWEEN THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, COUNTY OF ORANGE, STATE OF CALIFORNIA, AND THE JORGE AND ESTELA B. PUELMA FAMILY LIVING TRUST DATED OCTOBER 14, 2000, OWNER OF A DESIGNATED HISTORIC STRUCTURE AT 31321 ANDRES PICO ROAD, SAN JUAN CAPISTRANO, CALIFORNIA. THIS AGREEMENT is made and entered into this day of ___________, 2011, by and between the City of San Juan Capistrano (hereinafter referred to as the "City") and The Jorge and Estela B. Puelma Family Living Trust dated October 14, 2000 (hereinafter referred to as "Owner"). RECITALS WHEREAS, the City of San Juan Capistrano City Council is authorized by California Government Code Section 50280 et seq. (known as "the Mills Act") to enter into contracts with the owners of qualified historic properties to provide for the appropriate use, maintenance, and rehabilitation so that such properties retain their historic characteristics; and, WHEREAS, the Owner possesses fee title in and to certain qualified real property, together with associated structures and improvements thereon, located at 31321 Andres Pico Road, Assessor's Parcel Number 124-201-17, San Juan Capistrano, California 92675, also described as Albert Pryor Jr. House (hereinafter referred to as "Historic Landmark Property"); and, WHEREAS, the property was officially designated as a Historic Landmark Property on the Inventory of Historic and Cultural Landmarks of the City of. San Juan Capistrano, subject to subsequent amendments, and pursuant to Section 9-2.310 of the Municipal Code; and, WHEREAS, the City and Owner, for their mutual benefit, now desire to enter into this agreement to limit the use of the property to prevent inappropriate alterations and ensure that structures and site features are preserved and maintained, and to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Sec. 50280 et seq., and to qualify for an assessment of valuation pursuant to Article 1.9, Sec. 439 et seq., Chapter 3, Part 2 of Division 1 of the California Revenue and Taxation Code. Mills Act Contract 2 of 8 Albert Pryor Jr. House NOW THEREFORE, the City and the Owner of the .Historic Landmark Property agree as follows: Section 1. Effective Date and Term of Agreement. This agreement shall be effective and commence on the date first written above, and shall remain in effect for a term of ten (10) years thereafter, Each year upon the anniversary of the effective date, such initial term will automatically be extended as provided in California Government Code Section 50280 through 50290 and in Section 2, below. Section 2. Renewal, A. Each year on the anniversary of the effective date of this agreement, a year shall automatically be added to the initial term of the agreement unless written notice of non-renewal is served as provided herein. B. If the Owner or the City desires in any year not to renew the agreement, the Owner or the City shall serve written notice of non-renewal of the agreement on the other party. Unless such notice is served by the Owner to the City at least ninety (90) days prior to the annual renewal date, or served by the City to the Owner at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the term of the agreement as provided herein. C. The Owner may make a written protest of the notice. The City may, at any time prior to the annual renewal date of the agreement, withdraw its notice to the Owner of non-renewal. D. If either the City or the Owner serves notice to the other of non-renewal in any year, the agreement shall remain in effect for the balance of the term then remaining, either from its original execution or from the last renewal of the agreement, whichever may apply. Section 3. Standards and Conditions. A. Owner shall preserve, maintain, and, where necessary, restore or rehabilitate the property and its character-defining features, notably the general architectural form, style, materials, design, scale, proportions, organization of windows, doors, and other openings, textures, details, mass, roof line, porch and other aspects of the appearance of the exterior to the satisfaction of the City. B. Any physical changes shall comply with applicable City specific plans, Land Use Code standards, and the "Secretary of the Interior's Standards for Treatment of Historic Buildings." Mills Act Contract 3 of 8 Albert Pryor Jr. House C. The Owner of the Historic Landmark Property shall secure City Planning Department approval for any exterior changes prior to their execution, such as major landscaping projects, exterior door replacement or exterior alterations, regardless of whether a building permit is required. D. Demolition of any structure; completing exterior alterations or additions not in keeping with the standards listed above; allowing dilapidated, deteriorating or damaged structures such as fences, roofs, doors, walls and windows; storage of scrap lumber, junk, trash, debris, discarded.or unused objects, etc.; or similar items is hereby prohibited. E. Owner shall allow reasonable periodic examination by the City, by prior appointment, of the structural integrity of the exterior of the historic property by representatives of the County Assessor and the City, as may be necessary to determine the owners' compliance with the terms and provisions of this agreement. Section 4. Furnishing Information. The Owner hereby agrees to furnish the City with any and all information requested by the City which may be necessary or advisable to determine compliance with the terms and provisions of this agreement. Section 5. Cancellation. A. The City, following a duly noticed public hearing by the City Council as set forth in Government Code Section 50285, may cancel this agreement if it determines that the Owner has breached any of the conditions of this agreement or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified historic property, or if the City determines that the Owner has failed to preserve, restore or rehabilitate the property in the manner specified in Section 3 of this agreement. If a contract is canceled because of failure of the Owner to preserve, maintain, and rehabilitate the Historic Landmark Property as specified above, the Owner shall pay a cancellation fee to the State Controller as set forth in Government Code Section 50286, which states that the fee shall be 12'/x% of the full valine of the property at the time of cancellation without regard to any restriction imposed with this agreement. Section 6. Enforcement of Agreement. A. In lieu of and/or in addition to any provisions to cancel the agreement as referenced herein, the City may specifically enforce, or enjoin the breach of, the terms of the agreement. In the event of a default, the City shall give written notice to the Owner by registered or certified mail addressed to the address stated in this. agreement, and if such violation is not corrected to the reasonable satisfaction of the City within thirty (30) days Mills Act Contract 4 of 8 Albert Pryor Jr. House thereafter, or if not corrected within such a reasonable time as may be required to cure the breach or default of said breach, or default cannot be cured within thirty (30) days [provided that acts to cure the breach or default may be commenced within thirty (30) days and shall thereafter be diligently pursued to completion by the owners], then the City may, without further notice, declare a default under the terms of this agreement and may bring any action necessary to specifically enforce the obligations of the Owner growing out of the terms of this agreement, apply to any court, state or federal, for injunctive relief against any violation by the Owner or apply for such relief against any violation by the Owner as may be appropriate. B. The City does not waive any claim of default by the Owner if the 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 the City's regulations governing Historic Landmark Properties are available to the City to pursue in the event that there is a breach of this agreement. No waiver by the 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, Section 7. Binding Effect of Agreement. The Owner hereby subjects the Historic Landmark Property to the covenants, reservations, and restrictions as set forth in this agreement. The City and Owner hereby declare their specific intent that the covenants, reservations, and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon the Owner's successors and assigns in title or interest to the Historic Landmark Property. Every contract, deed, or other instrument hereinafter executed, delivered, and accepted shall be subject to the covenants, reservations, and restrictions expressed in this agreement regardless of whether such covenants, restrictions, and reservations are set forth in such contract, deed, or other instrument. Section 8. Notice. Any notice required by the terms of this agreement shall be sent to the address of the respective parties as specified below or at other addresses that may be later specified by the parties hereto, To City: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, California 92675 To Owners: Jorge and Estela Puelma 31321 Andres Pico Road San Juan Capistrano, CA 92675 Mills Act Contract 5 of 8 Albert Pryor Jr. House Section 9. General Provisions. A. 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 them to be considered joint ventures or members of any joint enterprise. B. The Owner agrees to and shall hold the City and its elected and appointed officials, officers, agents, and employees harmless from liability for damage or claims for damage for personal injuries, including death, and claims for property damage which may arise from the direct or indirect use or operations of the Owner or those of their contractor, subcontractor, agent, employee or other person acting on their behalf which relates to the use, operation, and maintenance of the Historic Landmark Property. The Owner hereby agrees to and shall defend the City and its elected and appointed officials, officers, .agents, and employees with respect to any and all actions for damages caused by, or alleged to have been caused by, reason of the Owner's activities in connection with the Historic Landmark Property. C. This hold harmless provision applies to all damages and claims for damages suffered, or alleged to have been suffered, and costs of defense incurred, by reason of the operations referred to in this agreement regardless of whether or not the City prepared, supplied, or approved the plans, specifications or other documents for the Historic Landmark Property. D. All of the agreements, rights, covenants, reservations, and restrictions contained in this. agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns, and all persons acquiring any part or portion of the Historic Landmark Property, whether by operation of law or in any manner whatsoever. E. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations, or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorney's fees to be fixed by the court, in addition to the court costs and other relief ordered by the court. Mills Act Contract 6 of 8 Albert Pryor Jr. House F. 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. G. This agreement shall be construed and governed in accordance with the laws of the State of California. Section 10. Recordation No later than twenty (20) days after the parties execute and enter into this agreement, the City shall cause this agreement to be recorded in the office of the County Recorder of the County of Orange. IN WITNESS WHEREOF, the City and Owner have executed this agreement on the day and year first written above. CITY OF SAN JUAN C PIS ANO ------------------ Mayor The Jorge and Estela B, Puelma Family Living Trust dated October 14, 2000, 1 it 1 Property Owner ATT Cit e APPROVED AS TO FO M: City Attorney PUBLIC AGENCY FORM OF ACKNOWLEDGEMENT State of California ) -County of Orange ) ss. City of San Juan Capistrano ) {Gov't Code 4081.4 & Civil Code 118 1) 011, Z6before me Maria Morris, City Clerk personally appeared On November , .....z....__—� r , Larry Kramer,Mayor„pro tempore,who proved to me on the basis of satisfactory evidence to the be person(s)whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity,and that by his/her/there signature on the instrument the person(s),or the entity upon behalf of which the person(s)acted,executed the instrument . I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. I (SEAL) WINE y` and and official seal. rF 3 M a_ �o 's, kity Cleric OPTIONAL Capacity Claimed by Signers Description of Attached Document Title or Type of Document Mayor pro tempore Historic Property Preservation Agreement – Title Mills Act Contract The Jorge and Estea B, Puelrna Family Living Trust dated October 14, Signer is Representing 2009,Albert Pryor Jr.House APN 124-201-17 City of San Juan Capistrano Date of Document:November 15, 2011 Number of Pages: 10 Mills Act Contract 7 of 8 Albert Pryor Jr. House STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF SAN JUAN CAPISTRANO ) I, MARIA MORRIS, City Clerk of the City of San Juan Capistrano, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of a Mills Act Contract adopted at a meeting of the City Council of the City of San Juan Capistrano, California held on November 15, 2011, by the following vote: AYES: NOES: ABSENT: ABSTAIN: (SEAL) Maria Morris, City Cleric-------------- Mills Act Contract 8 of 8 Albert Pryor Jr. House ACKNOWLEDGMENT STATE OF CALIFORNIA ) COUNTY OF ORANGE. ) ss On ( �Q0 Ibefore me, _ v ----��� � rc� _ ` Y`C Notary Public, appeared_ CS,LE _. L Z t�_c�- -�5 �_._ �� PO L.A44 ❑ personally known to me; or, V proved to me on the basis of satisfactory evidence to be the persoi(s whose names i re ubscribed to the within instrument and acknowledged to me that he/she e xecuted the same in his/her their„ uthor' e capacit .� s and that by his/he eir' ignatur n the instrument the Pers s), or entity up behalf of which the perso s} cted, executed this instrument. MESS my hand and official seal. N NEET BED/ < Signature —3 COMM.# 1672388 '41A my _ 4 s O�ANSECOl1�IY by MY Coit .Lxg.DEQ.2lf,2D1 Today's Date: Transmittal Routing (Check All That Apply) City Attorney City Manager City Clerk CONTRACT TRANSMITTAL. CIP No. (if any): KbA Project Manager's Last Name: Phone Extension: Council or CRA Meeting Date (if applicable): APPROVING AUTHORITY: (Check One) Mayor Ll CRA Chair ❑ City Manager Provide (1) executed original contract for each signing party, including the City. If the agreement is to be recorded —only (1) original will be recorded with certified copies going to other parties. Please provide the mailing address of any party to receive an agreement — unless the mailing address is included within the body of the agreement: Names Street � Cita St Zi E E OTHER INSTRUCTIONS: �C 0 /511 1 1 � \ %Lavded .._ Form Date: 01-2004 D- 7