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HomeMy WebLinkAbout2020 CON Jerry Overbey - 204 East 2nd Street - Mills Act ContractRecording 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 DOC# 2020-0280807 1111111 I III III 1 IIIII IIII IIII 1 IIIII IIIII III 1 IIIII IIIII IIIII IIII IIII Jun 02, 2020 02:57 PM OFFICIAL RECORDS Ernest J. Dronenburg, Jr., SAN DIEGO COUNTY RECORDER FEES $0.00 (SB2 Atkins: $0.00) PAGES: 12 APN(s): 556-103-01-00 Above Space for Recorder's Use Only. MILLS ACT CONTRACT For property located at 204 East 2nd Street THIS MILLS ACT CONTRACT ("Contract") is entered into by and between THE CITY OF NATIONAL CITY, a municipal corporation ("CITY") and Jerry Overbey, an individual, and Nedra K. Overbey, 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. 556-103-01-00, anrt Inc9tPr1 :?t the street address 204 East 2nd Street, National City. California (the "Historic Site"), on property generally described as: THE WESTERLY FORTY-ONE AND TWO-THIRDS (41 2/3) FEET OF LOTS 1 TO 5 INCLUSIVE, IN BLOCK 3 OF J. L. PEARSON'S SUBDIVISION OF TEN ACRE LOT 3 IN QUARTER SECTION ONE HUNDRED FIFTY-FIVE (155) OF RANCHO DE LA NACION, IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 801, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, MAY 20, 1895, THE EASTERLY LINE OF SAID WESTERLY 41 2/3 FEET BEING PARALLEL WITH THE WESTERLY LINE OF SAID LOTS 1 TO 5 INCLUSIVE. 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 April 7, 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 --;not" (on) days prior to the annual Renewal Bate, 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 Revised March 2020 J. Overbey & N. Overbey Page 2 of 8 City of National City and 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 tt'-e 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) Dilapidated, deteriorating, or unrepaired structures, such as: fences, roofs, doors, walls and windows; (2) Scrap lumber, junk, trash or debris; (3) Abandoned, discarded or unused objects or equipment, such as automobiles, automobile parts, furniture, stoves, refrigerators, cans, containers, or similar items; (4) Stagnant water or excavations, including swimming pools or spas; (5) 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 March 2020 J. Overbey & N. Overbey (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, ? public hearino 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), Mills Act Agreement Page 4 of 8 City of National City and Revised March 2020 J. Overbey & N. Overbey necessary to enforce the Contract, including, but not limited to, an action to enforce 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 regardleF.s 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: To OWNERS: City of National City Director of Community Development 1243 National City Roulevard National City, CA 91950 Jerry and Nedra Overbey 204 East 2nd 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 Mills Act Agreement Page 5 of 8 City of National City and Revised March 2020 J. Overbey & N. Overbey enforcement of the National City Municipal Code or from enforcement of this 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 Contact 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 Mills Act Agreement Page 6 of 8 City of National City and Revised March 2020 J. Overbey & N. Overbey of San Diego, State of California. 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 Cornmission. 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 March 2020 J. Overbey & N. Overbey OWNERS OF RECORD Date: 4/2-0 /2-0 By: -- Jeri Ove bey (otariz • d Signature) Date: B 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 Date: April 7, 2020 By: Alejandra Sotelo-Solis, Mayor Date: P4A'y . 2,078 Attest: APPROVED AS TO FORM: _ P. OR IS-JON ity Attorney Nedra K. Overbey (Notarized Signature) OWNERS PLEASE HAVE NOTARY PUBLIC ATTACH A SEPARATE PROOF OF NOTARY PAGE WITH SIGNATURE AND SEAL. Mills Act Agreement Revised March 2020 Page 8 of 8 City of National City and J. Overbey & N. Overbey 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 SAA �t CCo ) On del/2o/2020 before rne. 614' # /i.a d.Son,,cAJ — 4-1014 ri' P41/l'C' (insert name and title of the officer) personally appeared e.t/L V OvGoretY: #vedCCA9 K M. Ov e e5"" who proved to me on the basis of satisfactory evidence to be the personOwhose name4Vis/C) subscribed to the within instrument and acknowledged to me that he/she 40-xecuted the same in his/her/ i0 - uthorized capacit , and that by his/he signaturoe on the instrument the perso ir' or the entity upon behalf of which the perso i acted, executed the instrument. certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal Signature (Seal) GIANNINA M. BONIFAZ COMM. #2279376 c NOTARY PUBLIC • CALIFORNIA 21 SAN DIEGO COUNTY Commission Expires: MAR 02, 2023 Attachment 'A' Identified Historic Sites in National City National Register (date filed) Brick Row St. Matthew's Episcopal Church Granger Music Hall Santa Fe Depot (California Southern Terminus Depot) Locally Designated Significant Buildings 1. 907 'A' Avenue 2. 921 'A' Avenue 3. 939 'A' Avenue 4. 602 'B' Avenue 5. 538 'C' Avenue 6. 907 'D' Avenue 7. 1108 D' Avenue 8. 540 `E' Avenue 9. 305 'F' Avenue 10. 341 'F' Avenue 11. 520 `F' Avenue 12. 523 'F' Avenue 13. 618 `F' Avenue 14. 642 'F' Avenue 15. 1808 'F' Avenue 16. 405 'G' Avenue 17. 437 'G' Avenue 18. 1605 'J' Avenue 19. 1723 'J' Avenue 20. 1735 `J' Avenue 21. 2565 `J' Avenue 22. 1515 'L' Avenue 23. 2824 'L' Avenue 24. 2525 'N' Avenue 25. 555 East 1st Street 26. 31 East 2nd Street 27. 204 East 2nd Street 28. 636 E. 2nd Street 7/16/73 10/25/73 3/18/75 4/18/96 906-940 'A' Avenue, 45 E. Plaza Blvd. 521 E. 8th Street 1615 E. 4th Street 900 W. 23rd Street Elizur Steel/Crandall/Ennis House Frank Kimball House John Proctor House Pinney House Boyd-Vurgason House Fred Copeland House William Burgess House Mitchell -Webster House Tyson House Stein Family Farm Doctor's House Parson-Ochsner House George Beermaker House George Kimball House McKnight House Oliver Noyes House Willoughby House John Steele House 1/2 3/12/2020 29. 1105 East 2nd Street 30. 1112 East 2nd Street 31. 1116 East 2nd Street 32. 211 East 3rd Street 33. 141 E 4th Street 34. 441 East 7th Street 35. 926 E. 7th Street 36. 3600 E. 8th Street 37. 2202 E. 10th Street 38. 940 E. 16th Street 39. 1129 E. 16th Street 40. 1041 East 17th Street 41. 2221 East 18th Street 42. 2323 East 18th Street 43. 539 E. 20th Street 44. 1504 E. 22nd Street 45. 541 E. 24th Street 46. 1333 East 24th Street 47. 1430 E. 24th Street 48. 1433 E. 24th Street 49. 1206 Coolidge Avenue 50. 1240 Harding Avenue 51. 1507 Harding Avenue 52. 1941 Highland Avenue 53. 913 Hoover Avenue 54. 2333 Prospect Avenue 55. 425 Shell Avenue 56. 1905-1907 Wilson Avenue Barber-Ferbita House Wellington Estate Tower House of Moses Kimball Hertel Hawken House Mrs. Eimar Home Charles Kimball House D. K. Horton House Olivewood Clubhouse Wallace Dickinson House Dickinson Boal House Floyd Home Josselyn House 2/2 3/12/2020 Attachment 'B' Maintenance Plan for 204 E. 2nd Street, National City Previous activities: • Replacement of existing banana tree with more period strawberry tree (arbutus unedo) • Rehabilitation of olive tree Current activities: • Repairing of broken windows with glass (not changing to modern windows) • Repairing cracked and mismatched pieces of siding. • Caulking of cracks in exterior. • Replacing siding pieces that create access under the house for animals. • Removal of TV and phone cables attached to exterior. Future activities: • Repaint to match original appearance of the home • Install solar panels in compliance with standards for historic homes. Ongoing activities: • Weekly, monthly, and annual landscape maintenance RESOLUTION NO. 2020 - 65 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A MILLS ACT HISTORIC PRESERVATION CONTRACT FOR 204 EAST 2ND STREET WHEREAS, the property owners of 204 East 2nd Street requested to enter into a Mills Act Contract with the City of National City; and WHEREAS, a Public Hearing was held on April 7, 2020 to considered whether a Mills Act contract should be executed for this property. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that after considering public comment and testimony that a Mills Act Agreement should be executed with the property owners. BE IT FURTHER 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 204 East 2nd Street. Said contract is on file in the Office of the City Clerk. PASSED and ADOPTED this 7th day of April, 2020 Alejandra ?'"elo-So is, Mayor ATTEST: Michael Dalla, City Clerk APPROVED AS TO FORM: A '• ` P.; . rris-Jones, City A . rney Passed and adopted by the Council of the City of National City, California, on April 7, 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. 2020-65 of the City of National City, California, passed and adopted by the Council of said City on April 7, 2020. // I do Clerk of the City of City nal City, California By: Deputy CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT (I-z1)20-29I 205 2. 3. MEETING DATE: April 7, 2020 AGENDA ITEM NO. 14 rEM TITLE: Resolution of the City Council of the City of National City authorizing the Mayor to execute a Mills Act Historic Preservation Contract f 204 East 2nd Street. (Applicant: Jerry Overbey) (Case File 2020-04 M) e PREPARED BY: Martin Ree AICP - Principal Planner PHONE: 619-336-4313 EXPLANATION: The property owners of 204 East 2nd Street are requesting a Mills Act contract. The structure is a two-story Craftsman style home located on a 5,209 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 was added to the City's list of historic properties in 2019. The residence is generally in good condition, but is in need of new paint. The owners have most recently been replacing window glass and damaged siding, and removing TV and phone cables from the home exterior. The attached Maintenance Plan lists those activities, as well as landscaping replacement and maintenance. 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 16 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 $1,310 annually with respect to the %" portion of the property tax bill. Because the property lies within the former redevelopment area, this -Auction 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 $262. DEPARTMENT: Comuni D velopment APPROVED BY: L1 FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: Finance MIS The action will result in a reduction in annual Successor Agency property tax revenue of approximately $1,310. The impact on the City would be an approximate loss of $262 in residual balance distribution revenue from the Successor Agency. ENVIRONMENTAL REVIEW: Not subject to CEQA ORDINANCE: INTRODUCTION: jFINAL ADOPTION: STAFF RECOMMENDATION: Adopt the Resolution BOARD / COMMISSION RECOMMENDATION: N// 'TACHMENTS: 1. Overhead 4. Mills Act Contract Site Photos 5. List of current Mills Act properties Maintenance Plan 6. Resolution /6-`' aficle/ orb no- v c ellJ - .S 2020-04 M — 2040 East 2nd Street — Overhead ATTACI 1 ENT 1 2020-04 M- 204 East 2nd Street Mills Act Contract — Site Photos View looking south View looking northeast ATTACI 2 ENT 2 Maintenance Plan for 204 E. 2nd Street, National City Previous activities: • Replacement of existing banana tree with more period strawberry tree (arbutus unedo) • Rehabilitation of olive tree Current activities: • Repairing of broken windows with glass (not changing to modern windows) • Repairing cracked and mismatched pieces of siding. • Caulking of cracks in exterior. • Replacing siding pieces that create access under the house for animals. • Removal of TV and phone cables attached to exterior. Future activities: • Repaint to match original appearance of the home • Install solar panels in compliance with standards for historic homes. Ongoing activities: • Weekly, monthly, and annual landscape maintenance ATTACI 3 ENT 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): 556-103-01-00 Above Space for Recorder's Use Only. MILLS ACT CONTRACT For property located at 204 East 2nd Street THIS MILLS ACT CONTRACT ("Contract") is entered into by and between THE CITY OF NATIONAL CITY, a municipal corporation ("CITY") and Jerry Overbey, an individual, and Nedra K. Overbey, 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. 556-103-01-00, and located at the street address 204 East 2nd Street, National City, California (the "Historic Site"), on property generally described as: THE WESTERLY FORTY-ONE AND TWO-THIRDS (41 2/3) FEET OF LOTS 1 TO 5 INCLUSIVE, IN BLOCK 3 OF J. L. PEARSON'S SUBDIVISION OF TEN ACRE LOT 3 IN QUARTER SECTION ONE HUNDRED FIFTY-FIVE (155) OF RANCHO DE LA NACION, IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 801, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, MAY 20, 1895, THE EASTERLY LINE OF SAID WESTERLY 41 2/3 FEET BEING PARALLEL WITH THE WESTERLY LINE OF SAID LOTS 1 TO 5 INCLUSIVE. ATTACI 4 IENT 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 April 7, 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 Revised March 2020 Page 2 c59 City of National City and J. Overbey & N. Overbey 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 Revised March 2020 Page 3 c69 City of National City and J. Overbey & N. Overbey (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), Mills Act Agreement Revised March 2020 Page 4 c 79 City of National City and J. Overbey & N. Overbey necessary to enforce the Contract, including, but not limited to, an action to enforce 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: Jerry and Nedra Overbey 204 East 2nd 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 Mills Act Agreement Page 5 cf 9 City of National City and Revised March 2020 8 J. Overbey & N. Overbey enforcement of the National City Municipal Code or from enforcement of this 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. 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 Mills Act Agreement Revised March 2020 Page 6 t^98 City of National City and J. Overbey & N. Overbey of San Diego, State of California. 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 Revised March 2020 Page 7 ^f 1 0 City of National City and J. Overbey & N. Overbey 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: April 7, 2020 Date: By: By: Alejandra Sotelo-Solis, Mayor Jerry Overbey (Notarized Signature) Date: Date: Attest: By: By: Nedra K. Overbey 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 Revised March 2020 Page 8 ^f1 c City of National City and J. Overbey & N. Overbey NATIONAL CITY MILLS ACT CONTRACTS CASE FILE NO. ADDRESS: APPLICANT M 2002 1 3600 E. 8th 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 2020-01 M 555 E. 1st Street Justin Tjalma ATTAC 1 2 ENT 5 RESOLUTION NO. 2020 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A MILLS ACT CONTRACT FOR 204 EAST 2ND STREET WHEREAS, the property owners of 204 East 2nd Street requested to enter into a Mills Act Contract with the City of National City; and WHEREAS, a Public Hearing was held on April 7, 2020 to considered whether a Mills Act contract should be executed for this property. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that after considering public comment and testimony that a Mills Act Agreement should be executed with the property owners. BE IT FURTHER RESOLVED by the City Council of the City of National City that the Mayor is hereby authorized to execute a Mills Act Contract for 204 East 2nd Street. Said contract is on file in the Office of the City Clerk. PASSED and ADOPTED this 7th day of April, 2020. Alejandra Sotelo-Solis, Mayor ATTEST: Michael Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones, City Attorney