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HomeMy WebLinkAbout2020 CON Justin and Heather Tjalma - 555 East 1st Street - Mills ActDOC# 2020-0170227 Recording Requested by and When Recorded Please Mail to: Michael R. Dalla City Clerk City of National City 1243 National City Boulevard National City, CA 91950-4301 11 II1 IIII I III 111111 11111111111 Apr 02, 2020 02:47 PM OFFICIAL RECORDS Ernest J. Dronenburg, Jr.; SAN DIEGO COUNTY RECORDER FEES: $0.00 (SB2 Atkins $0.00) PAGES: 9 11 APN(s): 556-061-18 Above Space for Recorder's Use Only. MILLS ACT CONTRACT For property located at 555 East 1st Street THIS MILLS ACT CONTRACT ("Contract") is entered into by and between THE CITY OF NATIONAL CITY, a municipal corporation ("CITY") and Justin Tjalma, an individual, and Heather Tjalma, an individual (collectively, "OWNERS"). RECITALS WHEREAS, California Government Code Section 50280, et seq., referred to as the Mills Act, authorizes cities to enter into contracts with the owners of "qualified historic properties", defined in Government Code Section 50280.1, to provide for the use, maintenance, and restoration of such historic properties so as to retain their characteristics as properties of historic significance. WHEREAS, Owners possess fee title to that certain real property, together with associated structures and improvements thereon, Assessor's Parcel No. 556-061-18, and located at the street address 555 East 1st Street, National City, California (the "Historic Site"), on property generally described as: ALL OF LOTS 33, 34, AND 35, AND A PORTION OF LOT 36 IN BLOCK 1 OF COOMBES PLACE, IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO THE MAP THEREOF NO. 1486, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, OCTOBER 23, 1912, TOGETHER WITH A PORTION OF THE ALLEY IN SAID BLOCK 1, WHICH LIES NORTHERLY OF AND ADJACENT TO SAID LOTS. WHEREAS, the National City Council designated the above property as a Historic Site and it is so listed and currently eligible for listing in the "List of Identified Historic Sites in National City". A copy of such listing is attached to this Contract as Attachment A. WHEREAS, City and Owners, for their mutual benefit, now desire to enter into this Contract both to protect and preserve the characteristics of historic significance of the Historic Site and to qualify the Historic Site for an assessment of valuation pursuant to the provisions of Article 1.9 (commencing with Section 439) of Chapter 3 of Part 2 of Division 1 of the California Revenue and Taxation Code, and of Article 12 (commencing with Section 50280) of Chapter 1 of Part 1 of Division 1 of the California Government Code. AGREEMENT NOW THEREFORE, in consideration of the mutual benefits and covenants, CITY and OWNERS agree as follows: 1. Effective Date and Term of Contract. This Contract shall be effective and commence on February 18, 2020 ("Effective Date"), and shall remain in effect for a term of ten (10) years thereafter. The initial ten-year term, and any extension pursuant to Section 2, shall collectively be referred to hereafter as the "Term." 2. Automatic Renewal and Notice of Non -Renewal. a. Renewal. Each year on the anniversary of the effective date of this Contract (the "Renewal Date"), a year shall automatically be added to the initial term of this Contract unless notice of non -renewal is mailed as provided herein. b. Non -Renewal. If either OWNERS or CITY desires, in any year, not to renew this Contract, OWNERS or CITY shall serve written notice of non -renewal on the other party in advance of the annual Renewal Date of the Contract. Unless such notice is served by OWNERS to CITY, in writing to the City Council, at least ninety (90) days prior to the annual Renewal Date, or served by CITY to OWNERS at least sixty (60) days prior to the annual Renewal Date, one (1) year shall automatically be added to the Term as provided herein. If either CITY or OWNERS serve notice to the other of non - renewal in any year, the Contract shall remain in effect for the balance of the Term then remaining, either from its original execution or from the last renewal of the Contract, whichever may apply. (1) Protest. Upon receipt by OWNERS of a notice of non -renewal from CITY, OWNERS may make a written protest of the notice to the City Council. Any protest must be received by the CITY no later than 15 days from the date of the notice of non -renewal. Mills Act Agreement Page 2 of 8 City of National City and Revised January 2020 J. Tjalma and H. Tjalma c. Withdrawal of Non -Renewal. CITY may, at any time prior to the Renewal Date of the Contract, withdraw its notice of non -renewal. d. City Non -Renewal. If CITY serves notice of non -renewal in any year, the existing Term of the Contract shall remain in effect for the balance of the period remaining since the original execution or the last renewal of the Contract, as the case may be. 3. [Reserved] 4. Eligibility. To be eligible for this Contract, the Historic Site shall be listed and shall remain eligible for listing in the "List of Identified Historic Sites in National City." 5. Standards for Historic Site. During the Term, the Historic Site shall be subject to the following conditions, requirements, and restrictions: a. Owners shall preserve and maintain the characteristics of the cultural and historical significance of the Historic Site, and when necessary, restore and rehabilitate the Historic Site to conform to the rules and regulations of the Office of Historic Preservation of the Department of California State Parks, the United States Secretary of the Interior's Standards for Rehabilitation, and the State Historical Building Code, as amended from time to time. Work shall be done in accordance with the attached maintenance schedule drafted by the Owners attached to this Contract as Attachment B. b. OWNERS shall maintain all buildings, structures, yards and other improvements in a manner which does not detract from the appearance of the immediate neighborhood. The following conditions are prohibited: (1) (2) (3) (4) (5) Dilapidated, deteriorating, or unrepaired structures, such as: fences, roofs, doors, walls and windows; Scrap lumber, junk, trash or debris; Abandoned, discarded or unused objects or equipment, such as automobiles, automobile parts, furniture, stoves, refrigerators, cans, containers, or similar items; Stagnant water or excavations, including swimming pools or spas; Any device, decoration, design, structure or vegetation which is unsightly by reason of its height, condition, or its inappropriate location. c. Five years after the Effective Date, and every five years thereafter, City shall inspect the interior and exterior of the Historic Site to determine Owners' continued compliance with the Contract. Inspections required by this Section must: (1) Be scheduled by prior appointment between City and Owners, and Mills Act Agreement Page 3 of 8 City of National City and Revised January 2020 J. Tjalma and H. Tjalma (2) Occur no later than thirty days from the five-year anniversary described in this Section. d. Owners shall allow visibility of the exterior of the structure from the public right-of-way. Owners shall not block the view to the exterior of structure with any new structure, such as walls, fences, or shrubbery. e. If OWNERS apply to CITY for a permit for demolition, substantial exterior alteration, or removal of the Historic Site, OWNERS shall attend and participate in a scheduled hearing regarding such application before the board or commission designated by the City Council to oversee CITY'S historic resources prior to the issuance of such permit. CITY will endeavor to schedule such hearing within three (3) weeks after owners submit such application to CITY. f Notwithstanding the foregoing Section 5(e), if OWNERS apply to CITY for a permit for the demolition, substantial exterior alteration, or removal of the Historic Site, Owners shall comply with all CITY and State of California environmental regulations, policies and requirements prior to CITY'S issuance of the requested permit. 6. Information of Compliance. OWNERS hereby agrees to furnish CITY with any and all information requested by CITY which CITY deems necessary or helpful to determine compliance with the terms and provisions of this Contract. 7 Breach of Contract; Cancellation. If CITY determines that the OWNERS have breached any of the conditions of the Contract, or have allowed the Historic Site to deteriorate to the point that it no longer meets the standards for a "qualified historical property", as defined by Government Code Section 50280.1, CITY shall do one of the following: a. Public Hearing. Cancel this Contract after CITY has given written notice of, and has held, a public hearing on the proposed cancellation. Notice of such hearing shall be mailed to the last known address of each of the OWNERS within the historic zone and shall be published pursuant to Government Code Section 6061. If CITY cancels the Contract pursuant to Section 7(a), OWNERS shall pay those cancellation fees set forth in Government Code Section 50286. b. Court Action. Bring any action in court, pursuant to Section 14(e) necessary to enforce the Contract, including, but not limited to, an action to enforce the Contract by specific performance or injunction. 8. OWNERS' Cancellation Alternative. As an alternative to cancellation of the Contract, OWNERS may bring any action in court, pursuant to Section 14(e), necessary to enforce the Contract, including, but not limited to, an action to enforce Mills Act Agreement Page 4 of 8 City of National City and Revised January 2020 J. Tjalma and H. Tjalma the Contract by specific performance or injunction. 9. Binding Effect of Contract. OWNERS hereby subject the Historic Site to the covenants, reservations and restrictions set forth in this Contract. CITY and OWNERS hereby declare their specific intent that the covenants, reservations, and restrictions as set forth in this Contract shall be deemed covenants running with the land and shall pass to and be binding upon OWNERS' successors and assigns in title or interest to the Historic Site. Each and every contract, deed, or other instrument hereinafter executed, covering or conveying the Historic Site, 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 Contract regardless of whether such covenants, reservations, and restrictions are set forth in such contract, deed, or other instrument. CITY and OWNERS hereby declare their understanding and intent that the burden of the covenants, reservations, and restrictions set forth herein, touch and concern the land, in that OWNERS legal interest in the Historic Site is rendered less valuable thereby. CITY and OWNERS hereby further declare their understanding and intent that the benefit of such covenants, reservations and restrictions touch and concern the land by enhancing and maintaining the historic characteristics and significance of the historic Site for the benefit of CITY, the public, and OWNERS. 10. Processing Fee. OWNERS shall pay to CITY a processing fee of $2,207. 11. Notice. Any notice required to be given by the terms of this Contract shall be provided at the address of the respective parties as specified below or at any other address as may be later specified by either party. To CITY: City of National City Director of Community Development 1243 National City Boulevard National City, CA 91950 To OWNERS: Justin and Heather Tjalma 555 East 1st Street National City, CA 91950 12. Indemnity and Hold Harmless of City. OWNERS shall defend, indemnify and hold harmless the City of National City, its officers, officials, agents, employees, and volunteers against and from any and all liability, loss, damages to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, reasonable attorneys' fees, and defense costs, of any kind or nature, including workers' compensation claims, of or by anyone whomsoever, resulting from or arising out of the OWNERS' performance or other obligations, including (a) maintenance of the Historic Site by OWNERS or any contractor, subcontractor, agent, lessee, or any other person under this Contract, and also arising out of (b) any restrictions on the use or development of the Historic Site, from application or enforcement of the National City Municipal Code or from enforcement of this Mills Act Agreement Page 5 of 8 City of National City and Revised January 2020 J. Tjalma and H. Tjalma Contract; provided, however, that this indemnification and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the CITY, its agents, officers, employees or volunteers. CITY will cooperate reasonably in the defense of any action, and OWNERS shall employ competent counsel, reasonably acceptable to the City Attorney. The indemnity, defense, and hold harmless obligations contained herein shall survive the termination of this Agreement for any alleged or actual omission, act, or negligence under this Agreement that occurred during the Term of this Agreement and shall not be restricted to insurance proceeds, if any, received by City, officers, officials, agents, employees, and volunteers. 13. Eminent Domain. If the Historic Site is acquired in whole or in part by eminent domain or other acquisition by any entity authorized to exercise the power of eminent domain, and the acquisition is determined by the CITY to frustrate the purpose of this Contract, the Contract shall be canceled and no fee shall be imposed under Government Code Section 50286. The Contract shall be deemed null and void for all purposes of determining the value of the property so acquired. 14. General Provisions. a. None of the terms, provisions, or conditions of this Contract shall be deemed to create a partnership between the parties 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. All of the agreements, rights, covenants, reservations, and restrictions contained in this Contract 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 Site, whether by operation of law or in any manner whatsoever. c. If any of the provisions of this Contract 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. d. This Contract shall not take effect unless and until OWNERS' signature is notarized by a notary public. Furthermore, if an agent or representative of OWNERS signs this Contract on behalf of OWNERS, the agent or representative must furnish proof to the satisfaction of CITY, that the agent or representative has authority to act on OWNERS' behalf. e. This Contract shall be governed by the laws of the State of California. The venue for any action shall be a court of competent jurisdiction in the County of San Diego, State of California. Mills Act Agreement Page 6 of 8 City of National City and Revised January 2020 J. Tjalma and H. Tjalma f. OWNERS or an agent of OWNERS shall provide written notice of this Contract to the State Office of Historic Preservation within six (6) months of entering into the Contract. 15. Consultation with State Commission. CITY and OWNERS may consult with the State Historical Resources Commission for its advice and counsel on matters relevant to historical property contracts. 16. Recordation. No later than twenty (20) days after the parties execute and enter into this Contract, the City Clerk shall cause this Contract to be recorded in the office of the County Recorder of the County of San Diego. 17. Amendments. This Contract may be amended only by a written and recorded instrument executed by the parties hereto. Mills Act Agreement Page 7 of 8 City of National City and Revised January 2020 J. Tjalma and H. Tjalma By: 18. Statutory References: A reference anywhere in this Contract to a Government Code section, or other statutory authority, means a reference to that section as may be later amended. CITY OF NATIONAL CITY OWNERS OF RECORD Date: February 18 2 s /° Date: d- — J O - a U a O Alejandr. So elo- �s, Mayor Date: Attest: 2 -.20 -.2020 Michael R. Dalla, City Clerk APPROVED AS TO FORM: A G irr. if s ,. Cit ./torney By: Justin Tja (Not nature) Date: )QC-)1c_)-iC) By: Heather Tjalma (Notarized Signature) OWNERS PLEASE HAVE NOTARY PUBLIC ATTACH A SEPARATE PROOF OF NOTARY PAGE WITH SIGNATURE AND SEAL. Mills Act Agreement Page 8 of 8 City of National City and Revised January 2020 J. Tjalma and H. Tjalma CALIFORNIA CERTIFICATE OF ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of jg On `-2G-2o20 before me, 4r'///141f3'1 tyX Z--ghAp/7g�, (here insert rame and title of the officer) personally appeared 5-6-7 5/ % % chr,'rd TR Qi /' i °t air; d //e, ' '►" ‘97fi CYt T ar/mak 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. WILLIAM JOSEPH LANKENAU COMM. #2295379 z Notary Public • California o San Diego County My Comm. Expires June 28, 2023t WITNESS my hand and official seal. Signature (Seal) Optional Information Although the information in this section is not required by law, it could prevent fraudulent removal and reattachment of this acknowledgment to an unauthorized document and may prove useful to persons relying on the attached document. Description of Attached Document The preceding Certificate of Acknowledgment is attached to a document titled/for the purpose of / %l S Of C f e 'O /7-1 c /- 1 -go r APN: SS(p - 06 /- ► 8' containing pages, and dated - -z - 7-6) Z d The signer(s) capacity or authority is/are as: XIndividual(s) ❑ Attorney -in -Fact ❑ Corporate Officer(s) Title(s) ❑ Guardian/Conservator ❑ Partner - Limited/General ❑ Trustee(s) ❑ Other: representing: Name(s) of Person(s) or Entity(ies) Signer is Representing Additional Information Method of Signer Identification Proved to me on the basis of satisfactory evidence: form(s) of identification 0 credible witness(es) Notarial event is detailed in notary journal on: Page # 3 Entry # ?j 4-y Notary contact:&/q-774, -57e 7 Other ❑ Additional Signer(s) ❑ Signer(s)Thumbprint(s) ® Copyright 2007-2017 Notary Rotary, PO Box 41400, Des Moines, IA 50311-0507. All Rights Reserved. Item Number 101772. Please contact your Authorized Reseller to purchase copies of this form. RESOLUTION NO. 2020 - 33 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A MILLS ACT HISTORIC PRESERVATION CONTRACT FOR 555 EAST 1ST STREET WHEREAS, the property owners of 555 East 1st Street requested to enter into a Mills Act Contract with the City of National City; and WHEREAS, a Public Hearing was held on February 18, 2020 to considered whether a Mills Act contract should be executed for this property. BE IT RESOLVED by the City Council of the City of National City that the Mayor is hereby authorized to execute a Mills Act Historic Preservation Contract for 555 East 1st Street with the property owners. Said contract is on file in the Office of the City Clerk. PASSED and ADOPTED this 18th day of February, 2020 Alejandra Sotelo-Solis, Mayor ATTEST: Mich el R. Dalla, y Clerk APPROVED AS TO FORM: o is -Jo e Attorney Passed and adopted by the Council of the City of National City, California, on February 18, 2020 by the following vote, to -wit: Ayes: Councilmembers Cano, Morrison, Quintero, Rios, Sotelo-Solis. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: ALEJANDRA SOTELO-SOLIS Mayor of the City of National City, California MICHAEL R. DALLA City Clerk of the City of National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2020-33 of the City of National City, California, passed and adopted by the Council of said City on February 18, 2020. City Clerk of the City of National City, California By: CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: February 18, 2020 AGENDA ITEM NO. 17 'EM TITLE: public Hearing and Adoption of a Resolution of the City Council of the City of National City authorizing the Mayor to execute a Mills Act Historic Preservation Contract for 555 East 1st Street. (Applicant: Justin Tjalma) (Case File 2020-01 M) PREPARED BY: 'Martin Reeder, i I - Principal Planner DEPARTMENT: ' ommu ty Development ment PHONE: 619-336-4313 APPROVED B EXPLANATION: The property owner of 555 East 1st Street is requesting a Mills Act contract. The structure is a two-story Prairie style home located on a 14,374 square -foot lot. The property is in the Small Lot Residential (RS-2) zone. Mills Act contracts are historic preservation tools that provide property tax savings for owners in exchange for a commitment to maintain and/or restore a historic structure. This property will be eligible once added to the City's list of historic properties, which is addressed through a separate item on tonight's agenda. The property owner has been continually restoring the property since it was purchased approximately four years ago. The residence is now in its fully restored condition. The attached Maintenance Plan lists the proposed weekly, monthly, and annual items that will be undertaken. The Mills Act contract is valid for 10 years and automatically extends for one year on the anniversary date. The City may cancel the contract if breached or opt not to renew it if proper notice is provided. There are currently 15 properties in the City in the Mills Act Program. According to the San Diego County Assessor, there will be a reduction of approximately 30% in the assessed value of the property, which translates into a property tax reduction of about $2,180 annually with respect to the %" portion of the property tax bill (the amount that comes to the City). Because the property lies within the iurmer redevelopment area, this reduction will be to property taxes available to the Successor Agency. The loss to the Successor Agency would in turn impact the amount of residual balance available for distribution to other agencies, including the City whose share would be about $440. FINANCIAL STATEMENT: APPROVED: Finance ACCOUNT NO. APPROVED: MIS The action will result in a reduction in annual Successor Agency property tax revenue of approximately $2,180. The impact on the City would be an approximate loss of $440 in residual balance distribution revenue from the Successor Agency. ENVIRONMENTAL REVIEW: Not subject to CEQA ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the Resolution BOARD / COMMISSION RECOMMENDATION: N/A 'TACHMENTS: 1. Overhead 4. Mills Act Contract 2. Site Photos 5. List of current Mills Act properties 3. Maintenance Plan 6. Resolution iPcsd/ai% t 71a• PaEU- 3 2020-01 M — 555 East 1st Street — Overhead ATTACHMENT 1 1 ATTACHMENT 2 2 Maintenance Plan for 555 E. ft Street, National City Items to be performed on a weekly basis: • Visual inspection of structure and grounds. • Removal of trash and debris. Items to be performed on a bi-weekly basis: • Landscaping maintenance including vegetation trimming as needed. Items to be performed on a monthly basis: • Inspect and treat for insect control. Items to be performed on an annual basis: • Visual inspection of grounds and structure. o If any issues are identified with either, a plan will be enacted to cure issue. ATTACHMENT 3 3 Recording Requested by and When Recorded Please Mail to: Michael R. Dalla City Clerk City of National City 1243 National City Boulevard National City, CA 91950-4301 APN(s): 556-061-18 Above Space for Recorder's Use Only. MILLS ACT CONTRACT For property located at 555 East 1st Street THIS MILLS ACT CONTRACT ("Contract") is entered into by and between THE CITY OF NATIONAL CITY, a municipal corporation ("CITY") and Justin Tjalma, an individual, and Heather Tjalma, an individual (collectively, "OWNERS"). RECITALS WHEREAS, California Government Code Section 50280, et seq., referred to as the Mills Act, authorizes cities to enter into contracts with the owners of "qualified historic properties", defined in Government Code Section 50280.1, to provide for the use, maintenance, and restoration of such historic properties so as to retain their characteristics as properties of historic significance. WHEREAS, Owners possess fee title to that certain real property, together with associated structures and improvements thereon, Assessor's Parcel No. 556-061-18, and located at the street address 555 East 1st Street, National City, California (the "Historic Site"), on property generally described as: ALL OF LOTS 33, 34, AND 35, AND A PORTION OF LOT 36 IN BLOCK 1 OF COOMBES PLACE, IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO THE MAP THEREOF NO. 1486, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, OCTOBER 23, 1912, TOGETHER WITH A PORTION OF THE ALLEY IN SAID BLOCK 1, WHICH LIES NORTHERLY OF AND ADJACENT TO SAID LOTS. ATTACHMENT 4 4 WHEREAS, the National City Council designated the above property as a Historic Site and it is so listed and currently eligible for listing in the "List of Identified Historic Sites in National City". A copy of such listing is attached to this Contract as Attachment A. WHEREAS, City and Owners, for their mutual benefit, now desire to enter into this Contract both to protect and preserve the characteristics of historic significance of the Historic Site and to qualify the Historic Site for an assessment of valuation pursuant to the provisions of Article 1.9 (commencing with Section 439) of Chapter 3 of Part 2 of Division 1 of the California Revenue and Taxation Code, and of Article 12 (commencing with Section 50280) of Chapter 1 of Part 1 of Division 1 of the California Government Code. AGREEMENT NOW THEREFORE, in consideration of the mutual benefits and covenants, CITY and OWNERS agree as follows: 1. Effective Date and Term of Contract. This Contract shall be effective and commence on February 18, 2020 ("Effective Date"), and shall remain in effect for a term of ten (10) years thereafter. The initial ten-year term, and any extension pursuant to Section 2, shall collectively be referred to hereafter as the "Term." 2. Automatic Renewal and Notice of Non -Renewal. a. Renewal. Each year on the anniversary of the effective date of this Contract (the "Renewal Date"), a year shall automatically be added to the initial term of this Contract unless notice of non -renewal is mailed as provided herein. b. Non -Renewal. If either OWNERS or CITY desires, in any year, not to renew this Contract, OWNERS or CITY shall serve written notice of non -renewal on the other party in advance of the annual Renewal Date of the Contract. Unless such notice is served by OWNERS to CITY, in writing to the City Council, at least ninety (90) days prior to the annual Renewal Date, or served by CITY to OWNERS at least sixty (60) days prior to the annual Renewal Date, one (1) year shall automatically be added to the Term as provided herein. If either CITY or OWNERS serve notice to the other of non - renewal in any year, the Contract shall remain in effect for the balance of the Term then remaining, either from its original execution or from the last renewal of the Contract, whichever may apply. (1) Protest. Upon receipt by OWNERS of a notice of non -renewal from CITY, OWNERS may make a written protest of the notice to the City Council. Any protest must be received by the CITY no later than 15 days from the date of the notice of non -renewal. c. Withdrawal of Non -Renewal. CITY may, at any time prior to the Renewal Mills Act Agreement Revised January 2020 Page 2 of 8 5 City of National City and J. Tjalma and H. Tjalma Date of the Contract, withdraw its notice of non -renewal. d. City Non -Renewal. If CITY serves notice of non -renewal in any year, the existing Term of the Contract shall remain in effect for the balance of the period remaining since the original execution or the last renewal of the Contract, as the case may be. 3. [Reserved] 4. Eligibility. To be eligible for this Contract, the Historic Site shall be listed and shall remain eligible for listing in the "List of Identified Historic Sites in National City." 5. Standards for Historic Site. During the Term, the Historic Site shall be subject to the following conditions, requirements, and restrictions: a. Owners shall preserve and maintain the characteristics of the cultural and historical significance of the Historic Site, and when necessary, restore and rehabilitate the Historic Site to conform to the rules and regulations of the Office of Historic Preservation of the Department of California State Parks, the United States Secretary of the Interior's Standards for Rehabilitation, and the State Historical Building Code, as amended from time to time. Work shall be done in accordance with the attached maintenance schedule drafted by the Owners attached to this Contract as Attachment B. b. OWNERS shall maintain all buildings, structures, yards and other improvements in a manner which does not detract from the appearance of the immediate neighborhood. The following conditions are prohibited: (1) (2) (3) (4) (5) Dilapidated, deteriorating, or unrepaired structures, such as: fences, roofs, doors, walls and windows; Scrap lumber, junk, trash or debris; Abandoned, discarded or unused objects or equipment, such as automobiles, automobile parts, furniture, stoves, refrigerators, cans, containers, or similar items; Stagnant water or excavations, including swimming pools or spas; Any device, decoration, design, structure or vegetation which is unsightly by reason of its height, condition, or its inappropriate location. c. Five years after the Effective Date, and every five years thereafter, City shall inspect the interior and exterior of the Historic Site to determine Owners' continued compliance with the Contract. Inspections required by this Section must: (1) Be scheduled by prior appointment between City and Owners, and (2) Occur no later than thirty days from the five-year anniversary Mills Act Agreement Revised January 2020 Page 3 of 8 6 City of National City and J. Tjalma and H. Tjalma described in this Section. d. Owners shall allow visibility of the exterior of the structure from the public right-of-way. Owners shall not block the view to the exterior of structure with any new structure, such as walls, fences, or shrubbery. e. If OWNERS apply to CITY for a permit for demolition, substantial exterior alteration, or removal of the Historic Site, OWNERS shall attend and participate in a scheduled hearing regarding such application before the board or commission designated by the City Council to oversee CITY'S historic resources prior to the issuance of such permit. CITY will endeavor to schedule such hearing within three (3) weeks after owners submit such application to CITY. f. Notwithstanding the foregoing Section 5(e), if OWNERS apply to CITY for a permit for the demolition, substantial exterior alteration, or removal of the Historic Site, Owners shall comply with all CITY and State of California environmental regulations, policies and requirements prior to CITY'S issuance of the requested permit. 6. Information of Compliance. OWNERS hereby agrees to furnish CITY with any and all information requested by CITY which CITY deems necessary or helpful to determine compliance with the terms and provisions of this Contract. 7 Breach of Contract; Cancellation. If CITY determines that the OWNERS have breached any of the conditions of the Contract, or have allowed the Historic Site to deteriorate to the point that it no longer meets the standards for a "qualified historical property", as defined by Government Code Section 50280.1, CITY shall do one of the following: a. Public Hearing. Cancel this Contract after CITY has given written notice of, and has held, a public hearing on the proposed cancellation. Notice of such hearing shall be mailed to the last known address of each of the OWNERS within the historic zone and shall be published pursuant to Government Code Section 6061. If CITY cancels the Contract pursuant to Section 7(a), OWNERS shall pay those cancellation fees set forth in Government Code Section 50286. b. Court Action. Bring any action in court, pursuant to Section 14(e) necessary to enforce the Contract, including, but not limited to, an action to enforce the Contract by specific performance or injunction. 8. OWNERS' Cancellation Alternative. As an alternative to cancellation of the Contract, OWNERS may bring any action in court, pursuant to Section 14(e), necessary to enforce the Contract, including, but not limited to, an action to enforce the Contract by specific performance or injunction. Mills Act Agreement Revised January 2020 Page 4 of 8 7 City of National City and J. Tjalma and H. Tjalma 9. Binding Effect of Contract. OWNERS hereby subject the Historic Site to the covenants, reservations and restrictions set forth in this Contract. CITY and OWNERS hereby declare their specific intent that the covenants, reservations, and restrictions as set forth in this Contract shall be deemed covenants running with the land and shall pass to and be binding upon OWNERS' successors and assigns in title or interest to the Historic Site. Each and every contract, deed, or other instrument hereinafter executed, covering or conveying the Historic Site, 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 Contract regardless of whether such covenants, reservations, and restrictions are set forth in such contract, deed, or other instrument. CITY and OWNERS hereby declare their understanding and intent that the burden of the covenants, reservations, and restrictions set forth herein, touch and concern the land, in that OWNERS legal interest in the Historic Site is rendered less valuable thereby. CITY and OWNERS hereby further declare their understanding and intent that the benefit of such covenants, reservations and restrictions touch and concern the land by enhancing and maintaining the historic characteristics and significance of the historic Site for the benefit of CITY, the public, and OWNERS. 10. Processing Fee. OWNERS shall pay to CITY a processing fee of $2,207. 11. Notice. Any notice required to be given by the terms of this Contract shall be provided at the address of the respective parties as specified below or at any other address as may be later specified by either party. To CITY: City of National City Director of Community Development 1243 National City Boulevard National City, CA 91950 To OWNERS: Justin and Heather Tjalma 555 East 1st Street National City, CA 91950 12. Indemnity and Hold Harmless of City. OWNERS shall defend, indemnify and hold harmless the City of National City, its officers, officials, agents, employees, and volunteers against and from any and all liability, loss, damages to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, reasonable attorneys' fees, and defense costs, of any kind or nature, including workers' compensation claims, of or by anyone whomsoever, resulting from or arising out of the OWNERS' performance or other obligations, including (a) maintenance of the Historic Site by OWNERS or any contractor, subcontractor, agent, lessee, or any other person under this Contract, and also arising out of (b) any restrictions on the use or development of the Historic Site, from application or enforcement of the National City Municipal Code or from enforcement of this Contract; provided, however, that this indemnification and hold harmless shall not Mills Act Agreement Revised January 2020 Page 5 of 8 8 City of National City and J. Tjalma and H. Tjalma include any claims or liability arising from the established sole negligence or willful misconduct of the CITY, its agents, officers, employees or volunteers. CITY will cooperate reasonably in the defense of any action, and OWNERS shall employ competent counsel, reasonably acceptable to the City Attorney. The indemnity, defense, and hold harmless obligations contained herein shall survive the termination of this Agreement for any alleged or actual omission, act, or negligence under this Agreement that occurred during the Term of this Agreement and shall not be restricted to insurance proceeds, if any, received by City, officers, officials, agents, employees, and volunteers. 13. Eminent Domain. If the Historic Site is acquired in whole or in part by eminent domain or other acquisition by any entity authorized to exercise the power of eminent domain, and the acquisition is determined by the CITY to frustrate the purpose of this Contract, the Contract shall be canceled and no fee shall be imposed under Government Code Section 50286. The Contract shall be deemed null and void for all purposes of determining the value of the property so acquired. 14. General Provisions. a. None of the terms, provisions, or conditions of this Contract shall be deemed to create a partnership between the parties 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. All of the agreements, rights, covenants, reservations, and restrictions contained in this Contract 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 Site, whether by operation of law or in any manner whatsoever. c. If any of the provisions of this Contract 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. d. This Contract shall not take effect unless and until OWNERS' signature is notarized by a notary public. Furthermore, if an agent or representative of OWNERS signs this Contract on behalf of OWNERS, the agent or representative must furnish proof to the satisfaction of CITY, that the agent or representative has authority to act on OWNERS' behalf. e. This Contract shall be governed by the laws of the State of California. The venue for any action shall be a court of competent jurisdiction in the County of San Diego, State of California. Mills Act Agreement Revised January 2020 Page 6 of 8 9 City of National City and J. Tjalma and H. Tjalma f. OWNERS or an agent of OWNERS shall provide written notice of this Contract to the State Office of Historic Preservation within six (6) months of entering into the Contract. 15. Consultation with State Commission. CITY and OWNERS may consult with the State Historical Resources Commission for its advice and counsel on matters relevant to historical property contracts. 16. Recordation. No later than twenty (20) days after the parties execute and enter into this Contract, the City Clerk shall cause this Contract to be recorded in the office of the County Recorder of the County of San Diego. 17. Amendments. This Contract may be amended only by a written and recorded instrument executed by the parties hereto. Mills Act Agreement Page 7 of 8 City of National City and Revised January 2020 10 J. Tjalma and H. Tjalma 18. Statutory References: A reference anywhere in this Contract to a Government Code section, or other statutory authority, means a reference to that section as may be later amended. CITY OF NATIONAL CITY OWNERS OF RECORD Date: February 18, 2020 Date: By: By: Alejandra Sotelo-Solis, Mayor Justin Tjalma (Notarized Signature) Date: Date: Attest: By: By: Heather Tjalma Michael R. Dalla, City Clerk (Notarized Signature) APPROVED AS TO FORM: ANGIL P. MORRIS-JONES City Attorney OWNERS PLEASE HAVE NOTARY PUBLIC ATTACH A SEPARATE PROOF OF NOTARY PAGE WITH SIGNATURE AND SEAL. Mills Act Agreement Page 8 of 8 City of National City and Revised January 2020 11 J. Tjalma and H. Tjalma NATIONAL CITY MILLS ACT CONTRACTS CASE FILE NO. ADDRESS: APPLICANT M-2002-1 3600 E. 8'h Street Moncrieff Family Limited Partnership M-2002-2 926 A Avenue Janice Martinelli M-2002-3 1941 Highland Avenue Celia, Josefina Hernandez M-2003-1 916 A Avenue Jeannette Salazar M-2003-2 928 A Avenue Jeannette Salazar M-2003-3 1433 E. 24th Street Jim Ladd M-2003-4 45 East Plaza Blvd. Janice Martinelli M-2003-5 907 A Avenue Louise Branch M-2005-1 906 A Avenue Janice Martinelli M-2006-1 910 A Avenue Janice Martinelli M-2006-2 934 A Avenue Janice Martinelli 2007-44 M 2824 L Avenue Sherri Steliga 2010-9 M 2525 N Avenue ICF 2010-28 M 940 E. 16th Street Janice Martinelli 2018-10 M 1430 E. 24th Street Stephani Norton ATTACHMENT 5 12 RESOLUTION NO. 2020 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A MILLS ACT HISTORIC PRESERVATION CONTRACT FOR 555 EAST 1ST STREET WHEREAS, the property owners of 555 East 1st Street requested to enter into a Mills Act Contract with the City of National City; and WHEREAS, a Public Hearing was held on February 18, 2020 to considered whether a Mills Act contract should be executed for this property. BE IT RESOLVED by the City Council of the City of National City that the Mayor is hereby authorized to execute a Mills Act Historic Preservation Contract for 555 East 1st Street with the property owners. Said contract is on file in the Office of the City Clerk. PASSED and ADOPTED this 18th day of February, 2020. Alejandra Sotelo-Solis, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney