Loading...
HomeMy WebLinkAbout2020 CON Teresa McNeil - 540 E Avenue - Mills Act ContractDOC# 2020-0552944 II 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 II II II Sep 21, 2020 08:52 AM OFFICIAL RECORDS Ernest J. Dronenburg, Jr., SAN DIEGO COUNTY RECORDER FEES: $0.00 (SB2 Atkins: $0.00) PAGES: 14 i0S-10-1 Lo s- 24ro 241.0-07 APN(s): 556-231-17-00 Above Space for Recorder's Use Only. MILLS ACT CONTRACT For property located at 540 `E' Avenue THIS MILLS ACT CONTRACT ("Contract") is entered into by and between THE CITY OF NATIONAL CITY, a municipal corporation ("CITY") and the McNeil Family Trust ("OWNER"). 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, OWNER possesses fee title to that certain real property, together with associated structures and improvements thereon, Assessor's Parcel No. 556-231-17-00, and located at the street address 540 `E' Avenue, National City, California (the "Historic Site"), on property generally described as: LOTS 11 AND 12 AND THE SOUTHERLY 10 FEET OF LOT 13, IN BLOCK 44 OF MCCOYS SUBDIVISION OF 10 ACRE LOT 11 AND QUARTER SECTION 155 OF RANCHO DE LA NACION, ACCORDING TO MAP THEREOF NO. 6 FIELD IN THE OFFICE OF THE SAN DIEGO RECORDER APRIL 26, 1881. 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. II WHEREAS, City and OWNER, 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 OWNER agree as follows: 1. Effective Date and Term of Contract. This Contract shall be effective and commence on August 4, 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 OWNER or CITY desires, in any year, not to renew this Contract, OWNER 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 OWNER to CITY, in writing to the City Council, at least ninety (90) days prior to the annual Renewal Date, or served by CITY to OWNER 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 OWNER 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 OWNER of a notice of non -renewal from CITY, OWNER 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 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 Mills Act Agreement Page 2 of 8 City of National City and Revised J 2020 McNeil Family Trust 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. OWNER 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 OWNER attached to this Contract as Attachment B. b. OWNER 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 OWNER' continued compliance with the Contract. Inspections required by this Section must: (1) Be scheduled by prior appointment between City and OWNER, and (2) Occur no later than thirty days from the five-year anniversary described in this Section. d. OWNER shall allow visibility of the exterior of the structure from the public Mills Act Agreement Page 3 of 8 City of National City and Revised J 2020 McNeil Family Trust right-of-way. OWNER shall not block the view to the exterior of structure with any new structure, such as walls, fences, or shrubbery. e. If OWNER applies to CITY for a permit for demolition, substantial exterior alteration, or removal of the Historic Site, OWNER 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 OWNER submits such application to CITY. f Notwithstanding the foregoing Section 5(e), if OWNER applies to CITY for a permit for the demolition, substantial exterior alteration, or removal of the Historic Site, OWNER 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. OWNER 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 OWNER has 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 OWNER within the historic zone and shall be published pursuant to Government Code Section 6061. If CITY cancels the Contract pursuant to Section 7(a), OWNER 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. OWNER'S Cancellation Alternative. As an alternative to cancellation of the Contract, OWNER 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. 9. Binding Effect of Contract. OWNER hereby subjects the Historic Site to the Mills Act Agreement Page 4 of 8 City of National City and Revised J 2020 McNeil Family Trust covenants, reservations and restrictions set forth in this Contract. CITY and OWNER hereby declares 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 OWNER'S 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 OWNER hereby declare their understanding and intent that the burden of the covenants, reservations, and restrictions set forth herein, touch and concern the land, in that OWNER'S legal interest in the Historic Site is rendered less valuable thereby. CITY and OWNER hereby further declare their understanding and intent that the benefit of such covenants, reservations and restrictions touch and concern the land by enhancing and maintaining the historic characteristics and significance of the historic Site for the benefit of CITY, the public, and OWNER. 10. Processing Fee. OWNER shall pay to CITY a processing fee of $3,700. 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 OWNER: McNeil Family Trust 540 `E' Avenue National City, CA 91950 12. Indemnity and Hold Harmless of City. OWNER 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 OWNER'S performance or other obligations, including (a) maintenance of the Historic Site by OWNER 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 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 OWNER shall employ Mills Act Agreement Page 5 of 8 City of National City and Revised J 2020 McNeil Family Trust 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 OWNER'S signature is notarized by a notary public. Furthermore, if an agent or representative of OWNER signs this Contract on behalf of OWNER, the agent or representative must furnish proof to the satisfaction of CITY, that the agent or representative has authority to act on OWNER'S 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. f. OWNER or an agent of OWNER shall provide written notice of this Contract to the State Office of Historic Preservation within six (6) months of entering Mills Act Agreement Page 6 of 8 City of National City and Revised J 2020 McNeil Family Trust into the Contract. 15. Consultation with State Commission. CITY and OWNER 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 J 2020 McNeil Family Trust 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: August 4, 2020 By: AA'ejandra S"otelo-Solis,, Mayor Date: 8 - /8 2020 Attest: By: /6? Michael R. Dalla, City Clerk APPROVED AS TO FORM: . MORRIS-JONES Attorney OWNER OF RECORD Date: 8 I s c n) ej Irv& ste-c By: ln1 c N j c--�., McNeil Family Trust (Notarized Signature) OWNER PLEASE HAVE NOTARY PUBLIC ATTACH A SEPARATE PROOF OF NOTARY PAGE WITH SIGNATURE AND SEAL. Mills Act Agreement Revised J 2020 Page 8 of 8 City of National City and McNeil Family Trust CALIFORNIA CERTIFICATE OF ACKNOWLEDGMENT EC, lAt 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 .' t.Dl.e On 691-, off) aoDb personally appeared "Ti vr-tsq M e / vL7._.t 1 before me, MaryAnne Gogue, Notary Public (here insert name and title of the officer) who proved to me on the basis of satisfactory evidence to be the personk rwhose name(Tis/ate subscribed to the within instrument and acknowledged to me that bresheitlatety executed the same in kris/her/t it authorized capacity(ita and that by la:ts/her/thef signaturefs'7 on the instrument the person,(, or the entity upon behalf of which the personGsf acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Anne Gogue, Notary Public MARYANNE GOGUE COMM. #2193758 z Notary Public - California (23' San Diego County Comm. Ex . ires Apr. 25, 2021 (Seal) Optional Inforrnation 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 M 1" 20v4-,rc-ct containing g pages, and dated 54-0 E. Ave'Ledb. 15i' 9 l )ao O The signer(s) capacity or authority is/are as: ❑ Individual(s) ❑ Attorney -in -Fact ❑ Corporate Officer(s) Title(s) ❑ Guardian/Conservator ❑ Partner - Limited/General Trustees)-- ❑ Other: representing: `Teresoi, ('1 e A)6 l ,Dgcarpe,.(s) of t,ersonij.2 or Entity ies) Signer is Repr enting ikilt:Nti MIA/1 Additional Information Method of Signer Identification Prove to me on the basis of satisfactory evidence: 4115 form() of identification 0 credible witness(es) Notarial event is detailed in notary journal on: Page # �? Entry # a„ Notary contact: MaryAe Googue' Notary Pubec Other — 7 g 4-"7784 ❑ Additional Signer(s) ❑ Signer(s)Thumbprint(s) 0 Copyright 2007-2016 Notary Rotary, Inc. 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. Attachment `A' CALIFORN' LCITY 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 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 1/2 6/16/2020 27. 204 East 2nd Street 28. 636 E. 2nd Street 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 John Steele House 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 540 `E' Avenue, National City Previous activities: • Old foundation was replaced; • Stucco was removed to reveal the original siding; • Original siding was painted; • Electrical system was rewired; • A new plumbing system was installed; • A new forced air unit (central heating and air) was installed; • The front and back porch covers were replaced; • Original hardwood floors were refinished. Future activities: • Upgrade and maintain landscaping; • Hanging wallpaper; • Replace glass, corbels, and other unique features inside and outside the structure. RESOLUTION NO. 2020 - 137 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A MILLS ACT CONTRACT FOR 540 "E" AVENUE WHEREAS, property located at 540 "E" was part of the original list of historic properties, adopted during a Public Hearing in 1996; and WHEREAS, the property owners of 540 "E" Avenue have requested to enter into a Mills Act Contract with the City of National City. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City approves the property owners request to enter into a Mills Act Agreement. 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 540 "E" Avenue. Said contract is on file in the Office of the City Clerk. PASSED and ADOPTED this 4th day of August, 2020. Alejandra Sotelo-Solis, Mayor ATTEST: Y// Mic ael Dalla, City Ierk APPROVED AS TO FORM: Angil ' orris-Jone Passed and adopted by the Council of the City of National City, California, on August 4, 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 BY: Mayor of the City of National City, California MICHAEL R. DALLA City Clerk of the City of National City, California Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2020-137 of the City of National City, California, passed and adopted by the Council of said City on August 4, 2020. City Clerof the City of ational City, California By: Deputy MEETING DATE: CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT August 4, 2020 LIOS-10-I 2b5--I AGENDA ITEM NO.13 -EM TITLE: Nesolution of the City Council of the City of National City authorizing the Mayor to execute a Mills Act Historic Preservation Contract for "E" Avenue. (Applicant: Teresa McNeil) (Case File 2020-10 M) PREPARED BY: Martin Reeder, AICP — Principal Planner DEPARTMENT: Co unit Development PHONE: 619-336-4313 APPROVED BY: EXPLANATION: The property owners of 540 "E" Avenue are requesting a Mills Act contract. The structure is a two-story Victorian style home located on a 6,900 square -foot lot. The property is in the Small Lot Residential (RS-2) zone. Typical of the style, it is constructed with wood siding, trimmed and decorated in a contrasting color, with varied roof lines and asymmetrical designs. There are large windows trimmed with colored squares of stained glass. 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 part of the original list of historic properties, adopted in 1996. The residence is in good condition, having undergone significant rehabilitation. This included removal of the non -period stucco, rewiring, foundation repair, new plumbing, and refinishing of the original hardwood floors. Future work includes restoration of some of the unique interior features (wallpaper, corbels, glass, etc.) and landscaping, which is noted on the attached Maintenance Plan. 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 17 Mills Act contracts in the City. ccording to the San Diego County Assessor, there will be a reduction of approximately 30% in the assessed Slue of the property, which translates into a property tax reduction of about $808 annually with respect to the "1%" portion of the property tax bill. Because the property lies within the former 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 $162. FINANCIAL STATEMENT: APPROVED: Finance ACCOUNT NO. APPROVED: MIS The action will result in a reduction in annual Successor Agency property tax revenue of approximately $808. The impact on the City would be an approximate loss of $162 in residual balance distribution revenue from the Successor Agency., ENVIRONMENTAL REVIEW: Not subject to CEQA STAFF RECOMMENDATION: Adopt the Resolution BOARD / COMMISSION RECOMMENDATION: IN/A1 -TACHMENTS: 1. Overhead 4. Mills Act Contract 2. Site Photos 5. List of current Mills Act properties 3. Maintenance Plan 6. Resolution 2020-10 M — 540 'E' Avenue — Overhead ATTACHMENT 1 2020-10 M- 540 `E' Avenue Mills Act Contract — Site Photo 'I�IiI�tI �I 111111111 fllf(ll)1. '!!f1!�uI 11 !►p,CIIl!I lII!IlllIf l!! 111111t1III 111 fi111iil/tt View looking northeast ATTACHMENT 2 2 Maintenance Plan for 540 `E' Avenue, National City Previous activities: • Old foundation was replaced; • Stucco was removed to reveal the original siding; • Original siding was painted; • Electrical system was rewired; • A new plumbing system was installed; • A new forced air unit (central heating and air) was installed; • The front and back porch covers were replaced; • Original hardwood floors were refinished. Future activities: • Upgrade and maintain landscaping; • Hanging wallpaper; • Replace glass, corbels, and other unique features inside and outside the structure. ATTACHMENT 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): 556-231-17-00 Above Space for Recorder's Use Only. MILLS ACT CONTRACT For property located at 540 `E' Avenue THIS MILLS ACT CONTRACT ("Contract") is entered into by and between THE CITY OF NATIONAL CITY, a municipal corporation ("CITY") and the McNeil Family Trust ("OWNER"). 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, OWNER possesses fee title to that certain real property, together with associated structures and improvements thereon, Assessor's Parcel No. 556-231-17-00, and located at the street address 540 `E' Avenue, National City, California (the "Historic Site"), on property generally described as: LOTS 11 AND 12 AND THE SOUTHERLY 10 FEET OF LOT 13, IN BLOCK 44 OF MCCOYS SUBDIVISION OF 10 ACRE LOT 11 AND QUARTER SECTION 155 OF RANCHO DE LA NACION, ACCORDING TO MAP THEREOF NO. 6 FIELD IN THE OFFICE OF THE SAN DIEGO RECORDER APRIL 26, 1881. 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 OWNER, for their mutual benefit, now desire to enter into ATTACHMENT 4 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 OWNER agree as follows: 1. Effective Date and Term of Contract. This Contract shall be effective and commence on August 4, 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 OWNER or CITY desires, in any year, not to renew this Contract, OWNER 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 OWNER to CITY, in writing to the City Council, at least ninety (90) days prior to the annual Renewal Date, or served by CITY to OWNER 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 OWNER 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 OWNER of a notice of non -renewal from CITY, OWNER 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 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 Mills Act Agreement Revised J 2020 Page 2 of 8 5 City of National City and McNeil Family Trust 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. b. OWNER 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 OWNER attached to this Contract as Attachment B. OWNER 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 OWNER' continued compliance with the Contract. Inspections required by this Section must: (1) Be scheduled by prior appointment between City and OWNER, and (2) Occur no later than thirty days from the five-year anniversary described in this Section. d. OWNER shall allow visibility of the exterior of the structure from the public right-of-way. OWNER shall not block the view to the exterior of structure Mills Act Agreement Revised J 2020 Page 3 of 8 6 City of National City and McNeil Family Trust with any new structure, such as walls, fences, or shrubbery. e. If OWNER applies to CITY for a permit for demolition, substantial exterior alteration, or removal of the Historic Site, OWNER 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 OWNER submits such application to CITY. Notwithstanding the foregoing Section 5(e), if OWNER applies to CITY for a permit for the demolition, substantial exterior alteration, or removal of the Historic Site, OWNER 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. OWNER 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 OWNER has 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 OWNER within the historic zone and shall be published pursuant to Government Code Section 6061. If CITY cancels the Contract pursuant to Section 7(a), OWNER shall pay those cancellation fees set forth in Government Code Section 50286. 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. OWNER'S Cancellation Alternative. As an alternative to cancellation of the Contract, OWNER 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. 9. Binding Effect of Contract. OWNER hereby subjects the Historic Site to the covenants, reservations and restrictions set forth in this Contract. CITY and Mills Act Agreement Revised J 2020 Page 4 of 8 7 City of National City and McNeil Family Trust OWNER hereby declares 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 OWNER'S 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 OWNER hereby declare their understanding and intent that the burden of the covenants, reservations, and restrictions set forth herein, touch and concern the land, in that OWNER'S legal interest in the Historic Site is rendered less valuable thereby. CITY and OWNER hereby further declare their understanding and intent that the benefit of such covenants, reservations and restrictions touch and concern the land by enhancing and maintaining the historic characteristics and significance of the historic Site for the benefit of CITY, the public, and OWNER. 10. Processing Fee. OWNER shall pay to CITY a processing fee of $3,700. 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 OWNER: McNeil Family Trust 540 'E' Avenue National City, CA 91950 12. Indemnity and Hold Harmless of City. OWNER 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 OWNER'S performance or other obligations, including (a) maintenance of the Historic Site by OWNER 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 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 OWNER shall employ competent counsel, reasonably acceptable to the City Attorney. Mills Act Agreement Page 5 of 8 Revised J 2020 8 City of National City and McNeil Family Trust 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 OWNER'S signature is notarized by a notary public. Furthermore, if an agent or representative of OWNER signs this Contract on behalf of OWNER, the agent or representative must furnish proof to the satisfaction of CITY, that the agent or representative has authority to act on OWNER'S 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. OWNER or an agent of OWNER shall provide written notice of this Contract to the State Office of Historic Preservation within six (6) months of entering into the Contract. Mills Act Agreement Revised J 2020 Page 6 of 8 9 City of National City and McNeil Family Trust 15. Consultation with State Commission. CITY and OWNER 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 J 2020 Page 7 of 8 10 City of National City and McNeil Family Trust 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 OWNER OF RECORD Date: August 4, 2020 Date: By: By: Alejandra Sotelo-Solis, Mayor McNeil Family Trust (Notarized Signature) Date: Attest: By: Michael R. Dalla, City Clerk APPROVED AS TO FORM: ANGIL P. MORRIS-JONES City Attorney OWNER PLEASE HAVE NOTARY PUBLIC ATTACH A SEPARATE PROOF OF NOTARY PAGE WITH SIGNATURE AND SEAL. Mills Act Agreement Revised J 2020 Page 8 of 8 11 City of National City and McNeil Family Trust NATIONAL CITY MILLS ACT CONTRACTS CASE FILE NO. ADDRESS: APPLICANT 1 M-2002-1 3600 E. 8th Street Moncrieff Family Limited Partnership 2 M-2002-2 926 A Avenue Janice Martinelli 3 M-2002-3 1941 Highland Avenue Celia, Josefina Hernandez 4 M-2003-1 916 A Avenue Jeannette Salazar 5 M-2003-2 928 A Avenue Jeannette Salazar 6 M-2003-3 1433 E. 24th Street Jim Ladd 7 M-2003-4 45 East Plaza Blvd. Janice Martinelli 8 M-2003-5 907 A Avenue Louise Branch 9 M-2005-1 906 A Avenue Janice Martinelli 10 M-2006-1 910 A Avenue Janice Martinelli 11 M-2006-2 934 A Avenue Janice Martinelli 12 2007-44 M 2824 L Avenue Sherri Steliga 13 2010-9 M 2525 N Avenue ICF 14 2010-28 M 940 E. 16th Street Janice Martinelli 15 2018-10 M 1430 E. 24th Street Stephani Norton 16 2020-01 M 555 E. 1st Street Justin Tjalma 17 2020-04 M 204 E. 2nd Street Jerry Overbey 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 CONTRACT FOR 540 "E" AVENUE WHEREAS, property located at 540 "E" was part of the original list of historic properties, adopted during a Public Hearing in 1996; and WHEREAS, the property owners of 540 "E" Avenue have requested to enter into a Mills Act Contract with the City of National City. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City approves the property owners request to enter into a Mills Act Agreement. 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 540 "E" Avenue. Said contract is on file in the Office of the City Clerk. PASSED and ADOPTED this 4th day of August, 2020. Alejandra Sotelo-Solis, Mayor ATTEST: Michael Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones, City Attorney