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MILLS ACT AGREEMENT <br />2003 North Ross Street <br />Santa Ana, CA 92706 <br />5. Cancellation. <br />a. The City, following a duly noticed public hearing by the City Council as set forth <br />in Government Code Section 50280, et. seq., may cancel this Agreement if it determines that the <br />Owner have breached any of the conditions of this Agreement, or have allowed the property to <br />deteriorate to the point that it no longer meets the standards for a qualified Historic Property, or <br />if the City determines that the Owner have failed to restore or rehabilitate the property in the <br />manner specified in Section 3 of this Agreement. If a contract is cancelled for these reasons, the <br />Owner shall pay a cancellation fee to the County Auditor as set forth in Government Code <br />Section 50286. This cancellation fee shall be a percentage (currently set at twelve and one-half <br />(12 ''/2) percent by Government Code Section 50286) of the current fair market value of the <br />property at the time of the cancellation, as determined by the county assessor, without regard to <br />any restriction imposed pursuant to this Agreement. <br />b. If the Historic Property is destroyed by earthquake, fire, flood or other natural <br />disaster such that in the opinion of the City Building Official more than sixty (60) percent of the <br />original fabric of the structure must be replaced, this Agreement shall be canceled because, in <br />effect, the historic value of the structure will have been destroyed. No fee shall be imposed in <br />the case of destruction by acts of God or natural disaster. <br />C. If the Historic Property is acquired by eminent domain and the City Council <br />determines that the acquisition frustrates the purpose of this Agreement, this Agreement shall be <br />cancelled and no fee imposed, as specified in Government Code Section 50288. <br />6. Enforcement of Agreement. <br />a. In lieu of and/or in addition to any provisions to cancel the Agreement as <br />referenced herein, the City may specifically enforce, or enjoin the breach of, the terms of the <br />Agreement. In the event of a default, under the provisions to cancel the Agreement by the <br />Owner, the City shall give written notice to the Owner by registered or certified mail, and if such <br />a violation is not corrected to the reasonable satisfaction of the Deputy City Manager for <br />Development Services or designee within thirty (30) days thereafter, or if not corrected within <br />such a reasonable time as may be required to cure the breach or default, or default cannot be <br />cured within thirty (30) days (provided that acts to cure the breach or default may be commenced <br />within thirty (30) days and shall thereafter be diligently pursued to completion by the Owner), <br />then the City may, without further notice, declare a default under the terms of this Agreement <br />and may bring any action necessary to specifically enforce the obligations of the Owner growing <br />out of the terms of this Agreement, apply to any court, state or federal, for injunctive relief <br />against any violation by the Owner or apply for such relief as may be appropriate. <br />b. The City does not waive any claim of default by the Owner if the City does not <br />enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise <br />provided for in this Agreement or in the City's regulations governing historic properties are <br />available to the City to pursue in the event that there is a breach of this Agreement. No waiver by <br />-4-