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HomeMy WebLinkAbout08 HISTORIC PROPERTY PRESERVATION AGREEMENT (MILLS ACT) - 320 W. MAIN STREETDocusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 rr�"tY O� AGENDA REPOR MEETING DATE: OCTOBER 15, 2024 TO: ALDO E. SCHINDLER, CITY MANAGER Agenda Item 8 Reviewed: Initial City Manager a`L� Finance Director N/A FROM: JUSTINA L. WILLKOM, COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: HISTORIC PROPERTY PRESERVATION AGREEMENT (MILLS ACT) 320 W. MAIN STREET SUMMARY: The Mills Act is a State program that provides property tax relief to owners of qualified historic properties who agree to comply with preservation restrictions and maintain and preserve the property for a minimum of ten years. If approved by the City Council, the execution of the attached Mills Act contract (Historic Property Preservation Agreement) for the preservation and rehabilitation of a qualified historic property located at 320 W. Main Street would provide the property owner with some tax relief. RECOMMENDATION: That the City Council adopt Resolution No. 24-75 (Attachment 1) authorizing the execution of the Historic Property Preservation Agreement (Exhibit A of Attachment 1) for the property located at 320 W. Main Street in the State's Mills Act Program. FISCAL IMPACT: The execution of the Historic Property Preservation Agreement would reduce the property owner's property tax payment by approximately $9,058.00 annually and proportionately reduce the City's share of the property tax revenue for the property. Property tax revenue loss to the City would be minimal. CORRELATION TO THE STRATEGIC PLAN: The Historic Property Preservation Agreement is aligned with Goal A of the City of Tustin's Strategic Plan pertaining to the vibrancy and quality of life in all neighborhoods and areas of the community. Approval of the Mills Act for 320 W. Main Street will ensure the preservation of a historic resource and retain the City's quality in life in Tustin while contributing to maintain the City's historic heritage. Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 City Council Report Mills Act Program — 320 W. Main Street October 15, 2024 Page 2 BACKGROUND AND DISCUSSION: Adopted by the California Legislature in 1976, the Mills Act gives local government agencies the authority to grant property tax relief to owners of qualified historic properties, including owner -occupied single-family residences and income producing properties. In exchange for this relief, the property owners must agree, by contract, to maintain the properties in accordance with specific historic preservation standards and conditions. According to State law, all properties that are assessed property taxes and listed on a historic register or survey, are potentially eligible to participate in a local Mills Act program. If desired, each community has the discretion to target the program to specific historic properties. In June of 1997, the Tustin City Council authorized the implementation of a Mills Act program in the City of Tustin and established a policy for Historic Property Preservation Agreements (also referred to as "Mills Act Contracts") by resolution. Pursuant to Council's direction, the Mills Act Program is made available to the owners of residential properties with an "A," "B," or "C" rating in the City's 1990 Tustin Historical Resources Survey. Residential properties with equivalent ratings in the 2021 Historical Resources Surveys are also eligible to participate. Property Description The Spanish Colonial Revival style residence at 320 W. Main Street was built in 1928 and was listed with a "513" and "3CS" ratings in the City's 2021 Historic Resources Survey which are ratings assigned to a structure of local significance and appears eligible for California Register of Historical Resources through survey elevation. The property is located within the Cultural Resources District and is a contributor to the district. The period of significance for this property is from 1914 to 1945. The property is an excellent example of an intact 1920s residence in this part of Tustin and retains sufficient integrity to convey its association with historic patterns of residential development. The property not only reflects the architectural history of Tustin but is also associated with the significant contributions of Tustin families that include the Ferrey, Pankey, and Prescott families. Mr. William Ferrey originally built the house in 1928, He was a successful investor and citrus ranch grower, and Mr. Ferrey's wife, Frances, was a prominent socialite in Tustin. Both resided at this property until they both passed away within months of each other in 1950. In addition to the Ferrey Family, the Pankey Family was also associated with the subject property. Mr. Ed Pankey was a third generation Tustin area farmer whose ancestors arrived to Tustin in 1869. Mr. and Mrs. Pankey had four children that attended Tustin schools, which led to the couple's active volunteerism with the Tustin Parent Teacher Association. They also volunteered with local organizations such as the Tustin Presbyterian Church, Red Hill Fire Department, Orange County Farm Bureau and the Orange County Community Chest. Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 City Council Report Mills Act Program — 320 W. Main Street October 15, 2024 Page 3 Recently, the Prescott family purchased the property from the Pankey family. Similarly, the Prescott Family also played a significant role in Tustin's history. Mr. John Prescott was born in Tustin in 1924. He graduated from Tustin High School in 1942 and earned an Agricultural Degree from California Polytechnic University in Pomona, California. In 1950, he married Mary Lieb and had four sons. Mr. Prescott was a successful businessman, who managed multiple properties and businesses in Tustin. Mr. and Mrs. Prescott were also active in the community and assisted with the start of Saint Cecilia's Church and participated in various local organizations. William Prescott, John's grandson, currently owns the house at 320 S. Main Street. The City's 2021 Historic Survey for the property (Attachment 2) contains a description of the character defining features of this home, including but not limited to the following: • Single, partially glazed wood paneled door • Smooth stucco cladding • Wood balcony with metal railings • Entry porch with supporting columns • Hipped, clay tile roof Figure 1 — 320 W. Main Street Mills Act Contract The Historic Property Preservation Agreement is contained in Exhibit A of Resolution 24-75 and was prepared by the City Attorney and the Community Development Department. The draft Agreement contains all of the contract provisions required by State law. As requirements of State law, these provisions may not be modified; however, optional provisions are included in the agreement at the discretion of the City Council. Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 City Council Report Mills Act Program — 320 W. Main Street October 15, 2024 Page 4 As noted in the Historic Property Preservation Agreement, the required minimum term is 10 years. Each year, the contract term is automatically extended an additional year, unless terminated by the property owner or the City of Tustin for any reason. If terminated without penalty, the agreement would end at the end of the current 10-year term. The property owner is assessed a penalty of twelve and one-half (12.5) percent of the property's current fair market value at the time of cancellation if the contract is canceled by the property owner prior to the end of the 10-year period. However, there is no penalty for contract cancellation if the property is significantly damaged by an act of God or accidental cause, such as fire, flood, or earthquake. If the property is sold, the contract is binding upon all successors in interest to the owner, who will have the same rights and obligations under the contract as the original owner who entered into the contract. Pursuant to Section 50281 of the California Government Code, the Mills Act contract includes provisions for the preservation and maintenance of the characteristics of historical significance of the qualified historical property. City staff would utilize the Secretary of the Interior's Standards for Rehabilitation, the City of Tustin Residential Design Guidelines, and applicable Building Codes in evaluating the preservation, maintenance, and rehabilitation of the property. The interior and exterior of the premises must be made available for periodic examinations by prior appointment by representatives of the City, the County Assessor, the Department of Parks and Recreation, and the State Board of Equalization. Furthermore, to ensure compliance with the terms and provisions, the Mills Act contract includes a provision that requires the owner to furnish any pertinent information needed by the City. The draft Historic Property Preservation Agreement also includes optional provisions, which are contained in Exhibit B of the Historic Property Preservation Agreement. The provisions are intended to be modified on a case -by -case basis to specifically identify pertinent items. As an example, Exhibit B provides for the restoration or rehabilitation of the property according to the U.S. Secretary of the Interior's Standards for Rehabilitation, the State Historical Building Code, and the regulations of the State Office of Historic Preservation. In cases where a property is in excellent condition, restoration and/or rehabilitation may not be applicable. Exhibit B also includes optional provisions for a photographic portfolio, specific landscape and property maintenance, a schedule for repair and rehabilitation, maintenance of property visibility, submission of an annual report, and a prohibition of structure demolition. Property Maintenance Schedule Continuous maintenance on the exterior of the structure will be conducted on an as needed basis to limit deterioration of key historical components. The items included in the Schedule for Repair and Rehabilitation (listed below) were identified by City staff, in consultation with the owner, as being necessary over the minimum 10-year contract term. By entering into a Mills Act contract with the City, the owner would agree to the following schedule as outlined in the Contract: Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 City Council Report Mills Act Program — 320 W. Main Street October 15, 2024 Page 5 Year 1: • Upgrade the electrical panel and wiring in the house and garage. • Upgrade the mechanical and plumbing systems. • The addition of new wood frame windows. Year 2: • New paint for the exterior facade main house and garage. Years 1 through 10: • On -going repair and maintenance of the original and new windows. • On -going repair and maintenance of exterior facade of house and garage, including but not limited to wood and paint. • On -going maintenance of the roofing and eaves. • On -going maintenance and enhancements of landscaping within the front yard. According to the terms of the Mills Act contract, the improvements may be completed to the satisfaction of the City no later than one year following the year indicated. Contract Recordation The Mills Act contract will be recorded with the Orange County Recorder's Office and copies will be forwarded to the County Assessor and the State Office of Historic Preservation, following contract approval and execution by all parties. Mills Act assessments are made on an annual basis by the County Assessor's Office. Therefore, the tax benefits associated with executed contracts submitted to the County Assessor by January 1 will take effect on the following July 1 of the same year. CONCLUSION: That the City Council approve Resolution No. 24-75 authorizing the execution of a Mills Act contract (Historic Property Preservation Agreement) between the City of Tustin and the property owner for the preservation and rehabilitation of a qualified historic property located at 320 W. Main Street. Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 City Council Report Mills Act Program — 320 W. Main Street October 15, 2024 Page 6 Signed by: "MA, 11ECE507A88E4E9... Mary A. Salman Assistant Planner Attachments: 1. Resolution No. 24-75 Signed by: 0 4. OuLk4W ED45DA2623B54A5... Justina L. Willkom Community Development Director • Exhibit A; Historic Property Preservation Agreement 2. 2021 Historical Resources Survey DPR Form Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 RESOLUTION NO. 24-75 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AUTHORIZING THE COMMUNITY DEVELOPMENT DEPARTMENT TO COORDINATE, PROCESS, AND EXECUTE THE HISTORIC PROPERTY PRESERVATION AGREEMENT ATTACHED HERETO AS EXHIBIT A WITH THE OWNERS OF THE PROPERTY LOCATED AT 320 W. MAIN STREET, TUSTIN, CALIFORNIA The City Council of the City of Tustin does hereby resolve as follows: WHEREAS, the State of California enacted the Mills Act (California Government Code Section 50820 et seq.), which authorizes cities to enter into contracts with the owners of qualified historic properties to provide for the use, maintenance, and restoration of such historical properties so as to retain their characteristics as properties of historical significance; WHEREAS, the Tustin General Plan identifies the following policies related to the preservation of historic properties: 1) Encourage the restoration and rehabilitation of properties in Tustin eligible for inclusion on the National Register of Historic Places according to the rehabilitation guidelines and tax incentives of the National Trust for Historic Preservation. 2) Preserve historically significant structures and sites and encourage the conservation and rehabilitation of older buildings, sites, and neighborhoods that contribute to the City's historic character. 3) Preserve historic and architecturally significant residential properties. 4) Retain and protect significant areas of archaeological, paleontological, or historical value for education and scientific purposes. WHEREAS, the City Council adopted Resolution No. 97-50 on June 16, 1997, and determined that the use of historic property preservation agreements in Tustin will be limited to residential properties that are not exempt from property taxation and have an "A," "B," or "C" rating in the City of Tustin Historical Resources Survey; WHEREAS, in 2021 the City updated its 2003 City of Tustin Historical Resources Survey which was initially created in 1990; WHEREAS, the owner of the property located at 320 W. Main Street has submitted an application to enter into a historic property preservation agreement with the City of Tustin; Resolution 24-75 Page 1 of 3 Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 WHEREAS, the residential property at 320 W. Main Street qualifies for a historic property preservation agreement because it has "513" and "3CS" ratings in the 2021 City of Tustin Historical Resources Survey; WHEREAS, the preservation of individual historic properties through the execution of historic property preservation agreements in Tustin would serve to maintain the historical integrity of individual structures citywide, including those within the Tustin Cultural Resources District; WHEREAS, the preservation of important resources and neighborhoods would have beneficial indirect effects on local businesses, economic stability, and community pride; and WHEREAS, pursuant to Section 15308 (Categorical Exemptions) of the California Environmental Quality Act (CEQA), historical agreements are considered categorically exempt from the requirements of CEQA. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Tustin authorizes the Community Development Department to coordinate, process, and execute the historic property preservation agreement attached hereto as Exhibit A with the owner of the property located at 320 W. Main Street Tustin, California. PASSED AND ADOPTED at a regular meeting of the Tustin City Council, held on the 15t" day of October, 2024. AUSTIN LUMBARD, Mayor ATTEST: ERICA N. YASUDA, City Clerk Exhibit A: Historic Property Preservation Agreement Resolution 24-75 Page 2 of 3 Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 APPROVED AS TO FORM: D'CuSigned by: 38g47_F_D22t4.�r DAVID E. KENDIG, City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) CERTIFICATION FOR RESOLUTION NO. 24-75 I, Erica N. Yasuda, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 24-75 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 15t" day of October, 2024 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: COUNCILMEMBER RECUSED: ERICA N. YASUDA, City Clerk Resolution 24-75 Page 3 of 3 Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 WHEN RECORDED MAIL TO: Community Development Director City of Tustin 300 Centennial Way Tustin, CA 92780-3767 SPACE ABOVE THIS LINE FOR RECORDER'S USE HISTORIC PROPERTY PRESERVATION AGREEMENT This Agreement is entered into this day of , 2024, by and between the City of Tustin ("City"), a municipal corporation, and WA Prescott Living Trust ("Owner"). RECITALS WHEREAS, pursuant to Government Code Section 50280 et seq. (the "Mills Act"), the City of Tustin is authorized to contract with the owner of a Qualified Historical Property to restrict the use of the property and to provide for its appropriate use, maintenance and rehabilitation so that it retains its historic characteristics; and WHEREAS, the City Council has approved by resolution the use of such contracts to encourage the preservation of Qualified Historical Property in the City; and WHEREAS, Owner possesses fee title to that certain property located on Assessor's Parcel Number 401-372-10, commonly known as 320 W. Main Street, Tustin, California ("Property"). A legal description of the Property is attached hereto, marked as Exhibit "A," and is incorporated herein by this reference; and WHEREAS, the Property is located is listed in the City of Tustin Historical Resources Survey, which satisfies the requirements of Government Code Section 50280.1 as a Qualified Historical Property; and WHEREAS, the Property is residentially zoned and has an "A", "B", or "C" or equivalent rating in the 2021 City of Tustin Historical Resources Survey, all of which satisfies the criteria established by City Council Resolution No. 97-50. WHEREAS, the City and Owner, for their mutual benefits, now desire to enter into this Agreement to limit the use of the property to prevent inappropriate alterations and ensure that the character -defining features are preserved and maintained in an exemplary manner, 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 1100-00013 45526_1 Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 valuation pursuant to Article 1.9, Sec. 439 et seq., Chapter 3, Part 2 of Division 1 of the California Revenue and Taxation Code. NOW, THEREFORE, based on the above recitals and the mutual promises and covenants contained herein, the parties agree as follows: AGREEMENT 1. Property Subject to this Agreement The Property which is the subject of this Agreement is identified as Assessor Parcel Number401-372-10, commonly known as 320 W. Main Street, Tustin, California. A legal description of the Property is attached hereto, marked as Exhibit "A," and is incorporated herein by this reference. 2. Definitions Except as otherwise defined herein, the following words and phrases have the following meanings: "Serve notice" means to follow the notice procedures of Section 13. "Owner" means the property owner(s) of record of the Property and includes assignees with rights of possession and successors in interest to the Owner signing this agreement. "Qualified Historical Property" means privately owned property which is not exempt from property taxation and which meets the criteria set forth in Government Code Section 50280.1 3. Commencement, Term and Renewal of Agreement 1100-00013 45526_1 A. This Agreement shall become effective on the date first above written, and unless canceled pursuant to Section 11, shall remain in effect for a term of ten (10) years. B. Each year, upon the anniversary of the effective date of this Agreement, the term shall automatically be extended for one additional year unless written notice of nonrenewal is served as provided herein. See Section 13 for procedures on service of notice. 2 Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 C. If Owner or City desires in any year not to renew this Agreement, such party shall serve written notice of nonrenewal on the other party. (1) If served by Owner, notice of renewal must be served on City at least ninety (90) days prior to the annual renewal date. (2) If served by City, notice of renewal must be served on Owner at least sixty (60) days prior to the annual renewal date. (3) Failure to meet the notice deadlines above will result in one year being automatically added to the term of this Agreement. D. Within fifteen (15) calendar days of the date of the City's notice of nonrenewal, Owner may make a written protest to the City. (1) Upon receipt of such protest, the City Council shall schedule a hearing on the matter prior to the annual renewal date. (2) At such hearing, Owner may present any information which Owner deems relevant. (3) Based on Owner's protest and the information presented at the hearing, the City Council may withdraw the City's notice of nonrenewal at any time prior to the annual renewal date. E. Any notice of nonrenewal which has not been withdrawn prior to the next annual renewal date, shall be recorded with the Orange County Recorder. F. After the annual renewal date, the parties may agree at any time, by written and recorded instrument, to reinstate the ten-year term of this Agreement and renewal provisions hereof. G. Unless this Agreement is otherwise canceled as provided in Section 11, after notice of nonrenewal has been served and not withdrawn, this Agreement shall remain in effect for the balance of the term remaining, including any prior renewal term. 4. Recordation of Agreement The City Clerk shall record this Agreement with the Orange County Recorder within twenty (20) days of its execution by both parties. 1100-00013 45526_1 Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 5. Notice to Office of Historic Preservation Owner shall provide, or cause to be provided, written notice of this Agreement to the State Office of Historic Preservation within six months of the effective date of this Agreement, which is April 15, 2025. The City shall provide owner with the applicable address. 6. Standards and Conditions for Maintenance of Property The Property shall be subject to the standards and conditions set forth in Exhibit "B", which is attached to this Agreement and incorporated herein by this reference. Owner shall comply with the standards and conditions set forth in Exhibit "B". 7. Periodic Examination of Property Upon prior notice, Owner shall allow the reasonable periodic examination of the interior and exterior of the premises of the Property by representatives of City, the Orange County Assessor, the State Department of Parks and Recreation, and the State Board of Equalization, as may be necessary to determine Owner's compliance with the terms of this Agreement. 8. Furnishing Information Owner shall furnish City with any and all information requested by City, which may be necessary or desirable to determine Owner's compliance with this Agreement. 9. Enforcement of Agreement 1100-00013 45526_1 In lieu of and/or in addition to any provisions to cancel this Agreement, City may bring an action in court to enforce this Agreement, including, but not limited to, an action to enforce this Agreement by specific performance or by injunction. If the City determines there is a violation of the provisions of this Agreement by Owner, and City decides to enforce rather than cancel the Agreement, City shall send written notice to Owner in accordance with Section 13. If such violation is not corrected to the reasonable satisfaction of the City within thirty (30) days after the date the notice of violation is sent by mail, or within such longer period of time as specified or agreed to by City, then City may, without further notice, declare a default under the terms of this Agreement and bring any action necessary to specifically enforce the obligations of Owner under this Agreement, including, but not limited to, bringing actions for specific performance or injunctive relief. M Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 10. Bindinq Effect on Successors and Assigns/Covenants Run with the Land A. This Agreement is binding upon and inures to the benefit of all successors in interest to Owner, to Owner's assigns and all person acquiring any part or portion of the Property, whether by operation of law or otherwise. B. The Owner hereby subjects the Property to the covenants, reservations and restrictions as set forth in this Agreement, including Exhibit "A". 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 Property. Each and every contract, deed or other instrument hereinafter executed, covering or conveying the Property, or any portion thereof, shall conclusively be held to have been executed, delivered and accepted subject to the covenants, reservations and restrictions expressed in this Agreement regardless of whether such covenants, reservations and restrictions are set forth in such contract, deed or other instrument. City and Owner hereby declare their understandings and intents that the burden of the covenants, reservations and restrictions set forth herein touch and concern the land in that the value of the Owner's legal interest in the Property may be affected thereby. City and Owner hereby further declare their understandings and intents that the benefit of such covenants, reservations and restrictions touch and concern the land by enhancing and maintaining the historic characteristics and significance of the Property for the benefit of the public and Owner. 11. Cancellation of Agreement A. City may cancel this Agreement if it determines, after a duly noticed public hearing as provided herein, that Owner has committed any of the following acts: (1) Owner has failed to maintain, restore or rehabilitate the Property in accordance with the terms, standards and conditions set forth in Exhibit "B". (2) Owner has allowed the Property to deteriorate to the point that it no longer meets the City's standards for a Qualified Historical Property. (3) Owner has violated one or more provisions of this Agreement. 1100-00013 45526_1 Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 1100-00013 45526_1 An Owner who does not occupy the Property, shall, nevertheless be responsible at all times under this Agreement, for the condition of the Property and compliance with this Agreement. B. City shall serve written notice of proposed cancellation on Owner stating the grounds for cancellation and setting a public hearing date on the matter. Notice of the hearing shall also be sent by U.S. mail to the last known address of each owner of Qualified Historical Property in the City, and shall be published pursuant to Government Code Section 6061. C. Upon cancellation of this Agreement as provided in Subsection A, above, Owner shall pay a cancellation fee of 12'/z percent of the full value of the Property at the time of cancellation, as determined by the County Assessor without regard to any restriction on the Property imposed by this Agreement. The cancellation fee shall be paid to the State Controller in the manner prescribed by the State Controller. D. City may also cancel this Agreement, at Owner's request, if the Property is acquired in whole or in part by eminent domain or by an entity authorized to exercise the power of eminent domain, and if City determines that such acquisition frustrates the purpose of this Agreement. Under these circumstances, no cancellation fee shall be imposed upon Owner. E. City may also cancel this Agreement, at Owner's request, if so much of the Property has been destroyed, in whole or in part and that, in the sole opinion of the City, the historic value of the Property has been destroyed. Under these circumstances, no cancellation fee shall be imposed upon Owner. City may cancel this Agreement, at Owner's request, if the Property is damaged by fire, earthquake, or other Act of God or accidental cause to the extent that (1) the then fair market value of the structure is reduced by 51 percent or more; or (2) 51 percent or more of the structure's floor area is destroyed or irreparably damaged; or (3) 51 percent or more of the structure's historic features are destroyed or irreparably damaged; or (4) the cost to the Owner (exclusive of insurance proceeds) to restore the structure to its prior condition would exceed $10,000.00. Owner shall reimburse City for all expenses incurred by City in determining the extent of damage or destruction. If the Owner desires to cancel this Agreement under this Section, written notice shall be given to the City within 90 days after such damage or destruction occurs. In the event the Owner desires to cancel this Agreement due to the circumstances outlined above, owner or City may request a hearing before the City Council to determine (a) the extent of diminution of value, (b) the extent of the damage or destruction to the floor area of said Structure, and/or (c) extent of damage or destruction to the character defining features of said structure ri Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 12. Waiver The waiver by City of the performance of any covenant or condition of this Agreement shall not be considered a waiver of subsequent performance of that or any other covenant or condition of this Agreement. 13. Notice Any notice required to be given pursuant to this Agreement shall be sent by certified mail, postage prepaid, return receipt requested, addressed as follows or addressed as later specified by either party: To City: City of Tustin Community Development Department Attention: Director of Community Development 300 Centennial Way Tustin, CA 92780 To Owner: WA Prescott Living Trust William A. Prescott and Jennifer R. Prescott 320 W. Main Street Tustin, CA 92780 Notice shall be deemed sent or "served" upon the date of deposit in the United States Mail. 14. Fee to Administer Mills Act Program At the time established by City Council resolution, Owner shall pay City a fee, established by City Council resolution, pursuant to Government Code Section 5028.1. This fee is to cover City's costs of administering the Mills Act Program in the City. 15. Defense, Indemnification and Hold Harmless 1100-00013 45526_1 A. Owner shall defend, indemnify and hold harmless City, its officials, employees, and agents against and from all claims arising from Owner's performance under this Agreement, or from any activity, work, or omissions by Owner or caused by Owner in connection with this Agreement. B. Owner shall further defend, indemnify and hold harmless City, its officials, employees, and agents against and from all costs, attorneys' fees, and 7 Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 liabilities incurred in the defense of any such claim or any action or proceeding brought thereon. In case of any action or proceeding brought against City by reason of such claim, Owner, upon notice from City, shall defend same at Owner's sole expense by counsel satisfactory to City. 16. Entire Agreement This Agreement and the Exhibits attached hereto constitute the entire agreement between the parties with respect to the subject matter hereof and supersede all prior discussions, negotiations, and agreements whether oral or written. 17. Amendment This Agreement shall only be amended by written instrument, signed by both parties and recorded in the Office of the Orange County Recorder. 18. Miscellaneous Provisions A. None of the terms, provisions or conditions contained in this Agreement shall be deemed to create a partnership, a joint venture, or a joint enterprise between the parties hereto. B. This Agreement shall be construed in accordance with the laws of the State of California. C. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by a Court of competent jurisdiction or by subsequent preemptive legislation, the validity and enforceability of the remaining provisions shall not be affected. D. Owner understands that it is Owner's responsibility to apply for the reassessment of valuation afforded by this Agreement pursuant to Chapter 3, Part 2, of Division 1 of the California Revenue and Taxation Code. 19. Authority to Enter Agreement Each person executing this Agreement warrants that they have the authority to enter into this Agreement on behalf of the party for whom they sign. 1100-00013 45526_1 [Signatures on Following Page] M. Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. Approved as to Form David Kendig City Attorney Date: Date: 1100-00013 45526_1 CITY OF TUSTIN Bv: Justina L. Willkom Community Development Director By: William A. Prescott, Property Owner By: Jennifer R. Prescott, Property Owner SIGNATURES ARE TO BE NOTARIZED IF THIS CONTRACT IS PROPOSED TO BE SIGNED BY THE PROPERTY OWNER'S AGENT, THE CITY WILL REQUIRE WRITTEN EVIDENCE OF THE AGENT'S AUTHORITY TO ENTER INTO THIS AGREEMENT ON BEHALF OF THE OWNER. THE WRITTEN EVIDENCE MUST BE REVIEWED AND APPROVED BY THE CITY ATTORNEY. 9 Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 *A, :I I -3I iN_l% LEGAL DESCRIPTION Lot U of Block 1 of Tract No. 755.05, in the City of Tustin, County of Orange, State of California, as per map recorded in Book 2, Pages 618 AND 619 of Miscellaneous Maps, in the office of the County Recorder of said County. 1100-00013 45526_1 10 Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 EXHIBIT "B" HISTORICAL PROPERTY PRESERVATION TERMS, STANDARDS AND CONDITIONS 1. To have a baseline for comparison when future maintenance or alterations are being evaluated and for reconstruction of portions in the event of a disaster, Owner shall create digital photographs or 35 mm photographic portfolio showing all elevations of all buildings and structures from at least three angles, all character -defining exterior details, and historic interior details or other details of special interest. A copy of the portfolio shall be submitted to the Community Development Department within one year of the effective date of this Agreement. All structures, the entire grounds, and all major landscape features shall be included in the portfolio and copies of existing site plans, floor plans, architectural elevations and historical photographs that may be in Owner's possession. 2. Owner shall preserve, maintain, and, where necessary, restore or rehabilitate 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 City. 3. All changes to Property and any structures thereon shall comply with applicable City specific plans, City regulations and guidelines, and conform to the rules and regulations of the Office of Historic Preservation of the California Department of Parks and Recreation, the U.S. Secretary of the Interior's Standards for Rehabilitation and the State Historical Building Code. Interior remodeling shall retain character -defining features to the greatest extent possible. 4. City shall be notified by Owner of changes to character -defining exterior features prior to their execution, such as major landscaping projects, exterior door replacement or exterior alterations requiring a building permit. 5. City shall be notified prior to the repair and rehabilitation of any structure on the Property. 6. The following are prohibited without the prior written consent of the City: 1100-00013 45526_1 Demolition of any structure on the Property. Exterior alterations or additions not in keeping with the standards listed above; 11 Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 7. The following are prohibited at any time: Dilapidated, deteriorating or unrepaired structures such as fences, roofs, doors, walls and windows; Storage of scrap lumber, junk, trash, debris, discarded or unused objects such as cars, appliances or furniture; Stagnant water and unfilled excavations; Any other device, decoration, structure or vegetation which is unsightly by reason of its height, condition or inappropriate location, as determined by City. 8. Landscaping shall be maintained in a manner so as to enable the public to see the historic features of the Property from the street and shall be watered and maintained in accordance with recognized landscaping practices. 9. Owner shall make improvements to the property as described in the following schedule for repair and rehabilitation, unless changes to the schedule are approved in writing by the City and Owner. Year 1 • Upgrade the electrical panel and wiring in the house and garage. • Upgrade the mechanical and plumbing systems. • The addition of new wood frame windows. Year 2: • New paint for the exterior facade main house and garage Years 1 through 10: • On -going repair and maintenance of the original and new windows. • On -going repair and maintenance of exterior facade of house and garage, including but not limited to wood and paint. • On -going maintenance of the roofing and eaves. 1100-00013 45526_1 12 Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 • On -going maintenance and enhancements of landscaping within the front yard. 10. Owner shall provide the City with a written annual report which specifies actions taken by Owner to fulfill the requirements of the Agreement. The annual report shall be submitted to the City on an annual basis at times specified by the City. 1100-00013 45526_1 13 Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 State of California --- The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI PRIMARY RECORD Trinomial # NRHP Status Code 5B. Other Listings Review Code Reviewer Date *Resource Name or # (Assigned by recorder) 320 W Main Street P1. Other Identifier: Pankey House; Element of City of Tustin Cultural Resources District *P2. Location: r Not for Publication rJ Unrestricted *a.CountyOrange and (P2c, P2e, and P2h or P2d. Attach a Location Map as necessary.) *b. USGS 75Quad Date T ;R 114 of 114 of Sec B.M. c. Address 320 W Main Street City Tustin Zip 92780 d. UTM: (Give more than one for large and/or linear resources) Zone mE1 mN e. Other Locational Data: (e.g., parcel #, directions to resource, elevation, etc., as appropriate) APN 40137210 *P3a. Description: (Describe resource and its major elements. Include design, materials, condition, alterations, size, setting and boundaries) Evaluation: Individually significant; District contributor Property Type: Residential - Single-family Primary Architectural Style: Spanish Colonial Revival Secondary Architectural Style: Monterey Revival Number of Stories: 2 Plan/Primary Facade: irregular; Asymmetrical Construction/Foundation: Wood -frame; Concrete Cladding: Smooth stucco Details: Applied decoration, Balcony, Exterior stair, Jetty - corbeled Roof Type/Material: Hipped, Clay tile Roof Features: Clay tile coping, Eaves - open, Exposed purlins, Exposed rafter tails Chimney 1: Stucco - interior; Chimney pots Porch/Stoop 1: Stoop; Concrete, Brick; Steps '1133b. Resource Attributes: (List attributes and codes) Doorway 1: Recessed; Decorative surround, Light fixtures Door 1: Single; Wood; Paneled, Partially glazed Porch/Stoop 2: Balcony; Wood, Metal; Entry railings, Entry roof, Posts Doorway 2: Flush Door 2: Single; Wood; Divided lights, Fully glazed, Woad screen, Two of this type Porch/Stoop 3: Balcony; Wood, Metal; Entry railings, Posts, Steps Door 3: Type unknown; Material unknown Window 1: Paired; Fixed; Wood; Multi -light - all; Decorative surround - all Window 2: Single, Paired; Casement; Wood; Multi -light - all Window 3: Bay - canted; Fixed, Casement; Wood; Bay roof, Multi -light - all Setting: Set back, Corner Hardscape: Walkway -Concrete; Driveway -Concrete Landscape: Lawn, Mature vegetation HP2. Single family property of District r Other: 5b. Description of Photo: (view, date, ,cession #) View south. 10 2112020 F Archaeological Record r District Record i Linear Feature Record f-Artifact Record r Photographic Record f Other (List) 6. Date Constructed/Age and ources: fJ Historic I— Prehistoric I— Both )28 (Assessor via First American Title, DPR 17. Owner and Address: of Recorded 58. Recorded by: (Name, affiliation, and 9dress) Ma Rin hoffosa Lis Eme n 6jera. Architectural Resources Group. 360 E. 7d Street, Suite 225 Los Angeles, CA 90012 39. Date Recorded: 10/21/2020 10. Survey Type: (Describe) Intensive r Reconnaissance 311. Report Citation: (Cite survey report and :her sources or enter "none".) ARG. "City of istin Citywide Historic Resources Survey odate Report" {prepared for the Citv of Tustin. Sheet W Building, Structure & Object Record r Milling Station Record f Rock Art Record DPR 523A (1/95) * Required Information Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 State of California --- The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRl BUILDING, STRUCTURE AND OBJECT RECORD `NRHP Status Coded 3CS B1. Historic Name: B2. Common Name: Pankey House B3. Original Use: Residential B4. Present Use: Residential *135. Architectural Style Spanish Colonial Revival, Monterey Revival *136. Construction History: (Construction date, alteration, and date of alterations) Other Alterations -No maior alterations. Railings altered/replaced, Wall or fence added - side. Rear exterior stair and balcony added or altered *137. Moved? V No r Yes r Unknown Date: Original Location: *138. Related Features: Garage - detached, Gate 139a. Architect: Unknown b. Builder: Will Ferrey and Guy Bolard c. Owner: Will Ferrey *810. Significance: Theme Residential Development, 1914-1945, Architecture - Period Revival Area Tustin Period of Significance: 1928 Property Type: Residential Applicable Criteria: A1111, C/313 (Discuss importance in terms of historical or architectural context as defined by theme, period, and geographic scope. Also address integrity.) Context: Tustin Becomes a City, 1914-1945 Theme: Residential Development, 1914-1945 Property Type: Residential The property appears eligible for listing as a City of Tustin Cultural Resource and in the California Register of Historical Resources as an embodiment of significant patterns of residential development in Tustin during its transitional development period from 1914 to 1945. Constructed in 1928, it is an excellent example of an intact 1920s residence in this part of the city and retains sufficient integrity to convey its association with historic patterns of residential development. Context: Architecture and Design, 1870-1976 Theme: Period Revival Sub -Theme: Spanish Colonial Revival Property Type: Residential The property appears eligible for listing as a City of Tustin Cultural Resource and in the California Register of Historical Resources as an excellent example of Spanish Colonial Revival residential architecture with Monterey Revival elements in Tustin. Completed in 1928, it retains sufficient integrity to express its historic architectural character through the following character -defining features: • Complex massing and asymmetrical fagades • Prominent Monterey Revival-esque front balcony • Low-pitched hipped roof with clay tile roofing • Stucco wall cladding • Single and paired multi -paned windows (predominantly casement) • Use of secondary materials, including wood and cast stone B11. Additional Resource Attributes: (List attributes and codes) *1312. References: (See Continuation Sheet 3) 313. Remarks: *B14. Evaluator: Mary Ringhoff, Rosa Lisa Fry, Architectural Resources Group, 50 E. 2nd Street, Suite 225 Los Angeles, CA 90012 *Date of Evaluation: 10/21/2020 (This space reserved for official comments.) (Sketch Map with north arrow required.) W Main Street Wk d UN A N DP 523B (1/95) * Required Information Docusign Envelope ID: C5E14E88-9E29-4329-AOE1-877BE86D4AE6 tate of California --- The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI :ONTINUATION SHEET lesource Name or # (Assigned by recorder) 320 W Main Street Recorded By: ARG Date: 10/21/2020 W Continuation r Update 'B12. References (continued from page 2): Architectural Resources Group, Inc. City of Tustin Citywide Historic Resources Survey Update Report. Prepared for the City of Tustin, 2021. First American Title Co. Property Information. Accessed February 2021, https:I/www.myfirsiam.comlSecurity/Login? Return Url=% 2FPolygon % 2FMapSearch. Los Angeles Times, various dates. McAlester, Virginia Savage. A Field Guide to American Houses. New York: Alfred A. Knopf, 2015. Orange County Department of Public Works. OC Survey: Historical Aerial imagery. Accessed February 2021, https://ocs.ocpublicworks.com/service- areas/oc-survey/products/h istorical-aerial-imagery. TBA West, Inc. and Carol Jordan. 'Tustin Historical Resources Survey" Part 1 (DPR Forms) and Park 2 (Survey Report). Prepared for City of Tustin, 2003. Thirtieth Street Architects, Inc. "City of Tustin Historical Resources Survey Report" and DPR Forms. Prepared for City of Tustin, 1990. Tustin News, various dates. Tustin Preservation Conservancy. "List of Homes Turning 100 Years Old (Final Revision, 2017)." Unpublished list reporting deed research. On file at City of Tustin Community Development Department. DPR 523L (1/95) * Required Information