FRIENDS OF THE LACY HISTORIC NEIGHBORHOOD-2011

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1.4. Subject Properties in the Station District. Within the Station District, the properties listed on the FOL Settlement Property Descriptions (Exhibit "E") are the properties that the Parties agree will be either demolished, rehabilitated in place, or moved and rehabilitated as specifically set forth in Section 1 herein, and as shown on the FOL Settlement Property Plan. These properties are sometimes referred to herein using the identification (ID) number by which they are listed on Exhibit "E", e.g., "Property No. 1." 1.5. Rehabilitation and Development of Specific Properties. 1.5.1. Properties Nos. IA, 1B, 2, 313, 3C, 4, 5, 6A, 8, and 13, as identified on Exhibit "E", will not be demolished and will instead be rehabilitated by the Developer to the standards set forth in Sections 1.5.2 and 1.5.3 below as part of Phase R-2 of the Revised Station District Project. The Parties acknowledge and agree that Property No. 4, currently located at 610-612 E. Fifth Street, may be relocated to 511 E. Fifth Street immediately following the Effective Date of this Agreement but will be rehabilitated as part of Phase R-2 of the Revised Station District Project. The Parties further acknowledge and agree that Property No. 13, currently located at 613 E. Sixth Street, may be relocated to 602 E. Sixth Street immediately following the Effective Date of this Agreement but will be rehabilitated as part of Phase R-2 of the Revised Station District Project. 1.5.2. Standards for Rehabilitation of Eligible and Listed Properties. The Parties agree that Properties Nos. 1A, 2, 313, 4, 5, and 6A will be rehabilitated by the Developer consistent with the "Secretary of the Interior's Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating Restoring and Reconstructing Historic Buildings" (36 Code of Federal Regulations § 67.2) ("Secretary's Standards"). As defined in the Secretary's Standards, "rehabilitation" means "the process of returning a building or buildings to a state of utility, through repair or alteration, which makes possible an efficient use while preserving those portions and features of the building and its site and environment which are significant to its historic, architectural, and cultural values as determined by the Secretary." The Parties agree that "rehabilitation," as defined in the Secretary's Standards and as used in this Subsection 1.5.2, not only incorporates the retention of features that convey historic character but also accommodates alterations and additions to facilitate continuing or new uses. Any structure set forth in Section 1.5.1 above and identified on the FOL Settlement Property Plan and the FOL Settlement Property Descriptions for "rehabilitation" which is listed on the SARHP will also be subject to the "Historic Structures Design Guidelines" set forth in Chapter 13 of the "City of Santa Ana's Design Guidelines and Development Standards" (the "Citywide Design Guidelines") and all other applicable provisions of the City of Santa Ana Municipal Code ("Municipal Code"). 4