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HomeMy WebLinkAbout25A - MILLS ACT AGMTREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 19, 2019 TITLE: APPROVAL OF VARIOUS HISTORIC PROPERTY PRESERVATION AGREEMENTS (STRATEGIC PLAN NOS. 5,2; 5,3) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: /FANMiI1Lq�, ❑ As Recommended ❑ As Amended ❑ Ordinance on V Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute the attached Mills Act agreements with the below -referenced property owners for the identified structures, subject to non -substantive changes approved by the City Manager and City Attorney. Property Owner(s) Historic Property Address/House Vote by HRC Preservation Agmt. No. Chad De Costa and Elisabetta 2018-02 1721 North Bush Street 7:0 (Rush & Siccardi Contreras -Leo absent Victoria A. Betancourt 2018-03 810 North French Street 7:0 (Rush & Contreras -Leo absent Spurgeon DTOC, LLC and 2018-04 202-208 West Fourth 7:0 (Rush & KOA Investments, LLC Street and 318-320 North Contreras -Leo Sycamore Street absent) HISTORIC RESOURCES COMMISSION ACTION On January 24, 2019, the Historic Resources Commission recommended that the City Council authorize the City Manager and Clerk of the Council to execute the attached Mills Act agreements with the identified property owners for the historic structures, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION This action allows for the approval of a Historic Property Preservation Agreement (Mills Act Contract) which provides a potential property tax reduction whereby property owners agree to 25A-1 Historic Property Preservation Agreements March 19, 2019 Page 2 reinvest the tax savings towards the maintenance of the historic property (Exhibit 1). Additionally, the agreement prevents inappropriate alterations to the historic structures (Exhibits 2-4). The historic structures under consideration for approval of a Mills Act Contract include the following: The Drips House — An existing one-story Craftsman Bungalow style residence that is approximately 1,589 square feet in size with a detached garage. The home was added to the Santa Ana Register of Historical Properties in 2001 and categorized as "Key." The Crookshank House — An existing two-story Colonial Revival style residence that is approximately 2,708 square feet in size. The home was listed in the National Register of Historic Places in 1999, as a contributor to the French Park Historic District, and added to the Santa Ana Register of Historical Properties in 2000 and categorized as "Landmark." The Spurgeon Building — An existing four-story Commercial style commercial building that is approximately 54,400 square feet in size. The building was individually listed in the National Register of Historic Places in 1980 and listed again in 1984 as a contributor to the Downtown Historic District. In addition, it was added to the Santa Ana Register of Historical Properties in 2001 and categorized as "Landmark." ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the proposed project is exempt from further review. Categorical Exemption ER No. ER -2018-126, ER -2018-132, and ER -2018-133 will be filed for this project. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #2 (expand opportunities for conservation and environmental sustainability) and Objective #3 (facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). FISCAL IMPACT The Historic Property Preservation Agreement will reduce the Property Tax revenue account 01102002-50011 to the City by an estimated $4,508.85 annually noted below, for a period of not less than ten years. 25A-2 Historic Property Preservation Agreements March 19, 2019 Page 3 HPPA No. Address Estimate Exhibit No. 2018-02 1721 North Bush Street $660.91 2 2018-03 810 North French Street $757.05 3 2018-04 202-208 West Fourth Street and 318-320 North Sycamore Street $3,090.89 4 Total for All Properties: $4,508.85 d Minh Thai Executive Director Planning and Building Agency PG:Ia S:RFCA\3-19-19\PBA Historic Prop Preservation Mills Act Agmt 3-19-19 APPROVED AS TO FUNDS AND ACCOUNTS: K htaK yn Downs, CPA / (25 A) Executive Director Finance and Management Services Agency Exhibits: 1. Mills Act Agreement Template 2. Historic Resources Commission Staff Report — 1721 North Bush Street 3. Historic Resources Commission Staff Report — 810 North French Street 4. Historic Resources Commission Staff Report — 202-208 West Fourth Street and 318-320 North Sycamore Street 25A-3 25A-4 EXHIBIT 1 AULLS ACT AGRE&VENT /Address/ Sawa Ana, CA 9290 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Santa Ana (M-30) P.O. Box 1988 Santa. Area, CA 92702 Attn: Cleric ofthe Council FREE' RECORDING PURSUANT TO GOVERNMENT CODE § 27383 HISTORIC PROPERTY PRESERVATION AGREEMENT This Historic Property Preservation Agreement ("Agreement") is made and entered into by and between the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the of the State of California (hereinafter referred to as "City"), and Narne] (hereinafter referred to as "Owner"), owners of real property located at [Addressi. Santa Ana. California, in the County of Orange and listed on the Santa Ana Register of Historical Properties. RECITALS A. The City Council of the City of Santa Ana is authorized by California Government Code Section 50280 et seq. (known as the `Mills Act") to enter into contracts with Owner of qualified historical properties to provide for appropriate use, maintenance, rehabilitation and restoration such that these historic properties retain their historic character and integrity. B. The Owner possesses fee title in and to that certain qualified real property together with associated structures and improvements thereon, located at [Addrpml, Santa Ana, CA, 927OX and more particularly described in Exhibit A, attached hereto and incorporated herein by reverence, and hereinafter referred to as the "Historic Property". C. The Historic Property is officially designated on the Santa Ana Register of Historical Properties pursuant to the requirements of Chapter 30 of the Santa Ana Municipal Code. D. The City and the property Owner, for their mutual benefit, now desire to enter into this Agreement which defines and limits the use and alteration of this Historic Property in order to enhance and maintain its value as a cultural and historical resource for the Owner and for the cotmnturity; to prevent inappropriate alterations to the Historic Property and to ensure that repairs, additions, new building, and other changes are appropriate; and to ensure that rehabilitation and maintenance are carried out in all exemplary manner. E. The Owner and the City intend to carry out the purposes of California Goverrurrent Code, Chapter 1, Part 5 of Division I of Title 5, Article '12, Section 50280 et seq., which will enable the Historie Property to quality for all assessment 25A-5 MILLS ACTAGREEMENT /Addressl Sana Ann, CA 9270 of valuation as a restricted historical property pursuant to Article 1,9, Sec. 439 et seq., Chapter 3 Pant 2 of Division I of the California Tax and Revenue Code, NOW, THEREFORE, the City of Santa Ana and the Owner of the historic Property agree as follows: Effective Date and Terms of Agreement. _-. __ _ .. _------.__T1tis�greet��ent~shdll..be effectiveansl��tnu�enc�ott._[1�ate1,_ai�_sltall-re�naizt,.,itt-effect.._.- _ for a terns of ten (10) years thereafter, Each year, upon the anniversary of tine effective date of this Agreement, such initial terns will automatically be extended as provided in California Government Code Sections 50280 through 50290 and in Section 2, below. 2. Renewal. a. Each year on the anniversary of the effective date of this Agreement, a year shall autoniatieally be added to the initial tett (10) year term of this Agreement unless written notice of nonrenewal is served as provided herein. b. If the Owner or the City desire(s) in any year not to renew the Agreement, the Owner or City shall serve written notice of nonrenewal of the Agreement on the other party. Unless such notice is served by the Owner to the City at least ninety (90) days prior to the annual renewal date, or served by the City to the Owner at least sixty (60) days prior to the aminal renewal date, one (1) year shall automatically be added to the tern of the Agreement as provided herein, C. Within 30 clays from receipt of City's notice of nonrenewal, the Owner may file a written protest of City's decision of nonrenewal. The City may, at any time prior to the annual renewal date of the Agreement, withdraw its notice to the Owner of nonrenewal. d. If either the Owner or the City serves notice to the other of nonrenewal in any year, the Agreement shall remain in effect for the balance of the term then retraining, either from its original execution or from the last renewal of the Agreement, whichever may apply. 3. Standards and Conditions for Historic Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements and restrictions: a Owner shall maintain the Historic Property in a good state of repair and shall preserve, maintain, and, where necessary, restore or rehabilitate the property and its character - defining features described in the "Department of Parks and Recreation Primary Record" attached hereto as Exhibit C, notably the general architectural form, style, materials, design, scale, proportions, organization of windows, doors, and other openings, textures, details, mass, roof line, porch and other aspects of the appearance of the exterior to the satisfaction of the City. b. All changes to the Historic Property shall comply with applicable City plans and regulations, and conform to the rules and regulations of the Office of Historic Preservation of the -2- 25A-6 M/LLSACTAGREEMENT /Addresv/ Santo Ann, (A 9270_ State Department of Parks and Recreation, namely the U.S. Secretary of the Interior's Standards and Guidelines for Historic Preservation Projects. These guidelines are attached hereto as Exhibit B, and incorporated herein by this reference. Owner shall continually maintain the Historic Property in the same or better condition. C. A view corridor enabling the general public to see the Historic Property from the public right-of-way shall be maintained, and Owner shall not be permitted to block the view corridor to the property with any new structure, such as walls, fences or shrubbery, so as to - --prevent the viewing of the historiclandmarkby the public. -- - - - d. The following are prohibited; demolition of the Historic Property or destruction of character defining features of the building or site; removal of trees and other major vegetation unless removal is approved by a rehabilitation plan approved by the Historic Resources Commission, paving of yard surface; exterior alterations or additions unless approved by the Historic Resources Commission and such alterations are in keeping with the Secretary of Interior's Standards; deteriorating, dilapidated or unrepaired structures such as fences, roofs, doors, walls, and windows; storage of junk, trash, debris, discarded or unused objects such as cars, appliances, or furniture; and other unsightly by decoration, structure or vegetation which is unsightly by reason of its height, condition, or inappropriate location. e. Owner shall allow reasonable periodic examination, by prior appointment, of the interior and exterior of the Historic Property by representatives of the County Assessor, the State Department of Parks and Recreation, the State Board of Equalization, and the City of Santa Ana as may be necessary to determine the Owner's compliance with the terms and provisions of this Agreement. 4. Furnishing of Information. The Owners hereby agree to furnish the which may be necessary or advisable to determine this Agreement. S. Cancellation. City with any and all information requested compliance with the terms and provisions of a. The City, following a duly noticed public hearing by the City Council as set forth in Government Code Section 50280, et. seq., may cancel this Agreement if it determines that the Owners have breached any of the conditions of this Agreement, or have allowed the property to deteriorate to the point that it no longer meets the standards for a qualified Historic Property, or if the City determines that the Owner has failed to restore or rehabilitate the property in the manner specified in Section 3 of this Agreement. If a contract is cancelled for these reasons, the Owner shall pay a cancellation fee to the County Auditor as set forth in Government Code Section 50286. This cancellation fee shall be a percentage (currently set at twelve and one-half (12 %) percent by Government Code Section 50286) of the current fair market value of the property at the time of the cancellation, as determined by the county assessor, without regard to any restriction imposed pursuant to this Agreement. 3- 25A-7 MILLS ACTAGREEMENT jAddress] .Saha Ana, CA 9270 b. If the Historic Property is destroyed by earthquake, fire, flood or other natural disaster such that in the opinion of the City Building Official more than sixty (60) percent of the original fabric of the structure must be replaced, this Agreement shall be canceled immediately because, in effect, the historic value of the structure will have been destroyed. No fee shall be imposed in the case of destruction by acts of God or natural disaster, C, If the Historic Property is acquired by crainent domain and the City Council determines that the acquisition frustrates the purpose of this Agreement, this Agreement shall be cancelled and -no -foo -imposed, as specified in Government-Code-S,ection 502$8. -_ G. Enforcement of Agreement. a. In lieu of and/or in addition to any provisions to cancel the Agreement as referenced herein, the City may specifically enforce, or enjoin the breach of, the terms of the Agreement. In the event of a default, under the provisions to cancel the Agreement by the Owner, the City shall give written notice to the Owner by registered or certified mail, and if such a violation is not corrected to the reasonable satisfaction of the City Manager or designee within thirty (30) days thereafter, or if not corrected within such a reasonable time as may be required to cure the breach or default, or default cannot be cured within thirty (30) days (provided that acts to cure the breach or default may be commenced within thirty (30) days and shall thereafter be diligently pursued to completion by the Owner), then the City may, without further notice, declare a default under the terms of this Agreement and may bring any action necessary to specifically enforce the obligations of the Owner growing out of the terms of this Agreement, apply to any court, state or federal, for injunctive relief against any violation by the Owner or apply for such relief as may be appropriate. b. The City does not waive any claim of default by the Owner if the City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in the City's regulations governing historic properties are available to the City to pursue in the event that there is a breach of this Agreement. No waiver by the City of any breach or default mider this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder. 7. Binding effect of Agreement. a. The Owners hereby subject the Historic Property, located at jadgresd, Assessor Parcel Number [Number], and more particularly described in Exhibit A, in the City of Santa Ana, to the covenants, reservations, and restrictions as set forth in this Agreement. b. The City and Owner hereby declare their specific intent that the covenants, reservations and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon the Owner's successors and assigns in title or interest to the Historic Property. Every contract, deed, or other instrument hereinafter executed, covering or conveying the Historic Property or any portion thereof, shall conclusively be held to have been executed, delivered, and accepted subject to the tenants, restrictions, and reservations -4- 25A-8 1,l /IU.S ACT AGRFFMFNT /Address) Srudn Ana, CA 9270 expressed in this Agreement regardless of whether such covenants, restrictions and reservations are set forth in such contract, deed, or other instrument. 8. No Compensation. Owner shall not receive any payment from the City in consideration of the obligation imposed under this Agreement, it being recognized that the consideration for the execution of this Agreement is the substantial public benefit to be derived therefrom and the advantage that will ,accrue to -the -Owner as a_result of -the effect -uponthe_ assessed_ value o£ the property .on the account of the restrictions on the use and preservation of the property. 9. Notice. Any notice required by the terms of this Agreement shall be sent to the address of the respective parties as specified below or at other addresses that may be later specified by the parties hereto. City: City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa. Arta, CA 92702 Attn: Cleric of the Council Owner: [Nante(s)] [Address] Santa Ana, CA 9270 10. General Provisions. a. None of the terms, provisions, or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors, or assigns, 1101, shall such terms, provisions or conditions cause them to be considered joint ventures or members of any joint enterprise. b. The Owner agrees to and shall indemnify and hold the City and its elected and appointed officials, officers, agents, and employees harmless from liability for damage or claims for damage for personal injuries, including death, and claims for property damage which may arise from the direct or indirect use or operations of the Owner or those of his or her contractor, subcontractor, agenda, employee, or other person acting on his or her behalf which relates to the use, operation, and maintenance of the Historic Property. The Owner hereby agrees to and shall defend the City and its elected and appointed officials, officers, agents, and employees with respect to any and all actions for damages caused by, or alleged to have been caused by, reason of the Owner's activities in connection with the Historic Property. C. This hold harmless provision applies to all damages and claims for damages suffered, or alleged to have been suffered, and costs of defense incurred, by reason of the operations referred to in this Agreement regardless of whether or not the City prepared, supplied, or approved the plans, specifications or other documents for the Historic Property. -5. 25A-9 MILLSACTAGREEMENT (Address/ Santa Ana, CA 9170 d. All of the Agreements, rights, covenants, reservations, and restrictions contained in this Agreement 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 Property, whether by operation of law on in any manner whatsoever. e. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations, or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may revover.all reasonable attp ney's:Fees to be l xed by the court, in addition to court costs. and other relief ordered by the court. f. In the event that any of the provisions of this Agreement 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. g, This Agreement shall be construed and governed in accordance with the laws of the State of California, 11. Recordation. No later than twenty (20) days after the parties execute and enter into this Agreement, the City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Orange. 12. Notice of the Contract to Office of Historic Preservation. No later than six (6) months of entering into the contract, the owner or agent of an owner shall provide written notice of this Agreement to the Office of Historic Preservation. 13. Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. 14, Effective Date This Agreement shall be effective on the day and year first written above in Section 1. {Signature Page Follows} -6- 25A-10 ATTEST: NORMA MITRE Acting Clerk of the Council APPROVED AS TO FORM: SONIA CARVALHO City Attorney LISA STORCK Assistant City Attorney OWNER: Date: MILLS ACT AGREENIENT [Address] Santa Ana, CA .9270 CITY OF SANTA ANA STEVEN A. MENDOZA Acting City Manager RECOMMENDED FOR APPROVAL: MINH THAI Executive Director Planning and Building Agency Date: By: -7- 25A-11 MILLSACTAGREEMENT /Address] Snrrta Ana, CA 9270 EXHIBPI' A LEGAL DESCRIPTION Assessor's Parcel Number: -8- 25A-12 MILLS ACT AGREEMENT /Address/ Santa Arm, CA 9270 Exhibit B Exterior work shall be reviewed by the /-historic Resources Commission and subject to the U.S. Secretary of the Interior's Standards for Rehabilitation of Historic Buildings, as follows: 1. Every reasonable effort shall be made to provide a compatible use for a property which requires minimal alteration of the building, structure, or site and .its environment, or to use a property for its originally intended purpose. 2. The distinguishing original qualities or character of a building, structure or site and its envirounent shall not be destroyed. The removal or alteration of any historic material or distinctive architectural features should be avoided when possible. 3. All buildings, structures„ and sites shall be recognized as products of their own time. Alterations that have no historical basis and which seek to create an earlier appearance shall be discouraged. 4. Changes which may have taken place in the course of time are evidence of the history and development of a building, structure, or site and its enviromnent. These changes may have acquired significance in their own right, and this significance shall be recognized and respected. 5. Distinctive stylistic features or examples of skilled craftsmanship which characterize a building, structure, or site shall be treated with sensitivity. 6. Deteriorated architectural features shall be repaired rather than replaced, whenever possible. In the event replacement is necessary, the new material should match the material being replaced in composition, design, color, texture, and other visual qualities. Repair or replacement of missing architectural features should be based on accurate duplications of features, substantiated by historic, physical, or pictorial evidence rather than on conjectural designs or the availability of different architectural elements from the other buildings or structures. 7. The surface cleaning of structures shall be undertaken with the gentlest means possible. Sandblasting and other cleaning methods that will damage the historic building materials shall not be undertaken. 8. Every reasonable effort shall be made to protect and reserve archaeological resources affected by, or adjacent to any project. 9. Contemporary design for alterations and additions to existing properties shall not be discouraged when such alterations and additions do not destroy significant historical, architectural or cultural material, and such design is compatible with -9- 25A-13 MILLSACTAGREEMENT /Address] Santa Ana, CA 9270 size, scale, color, material and character of the property, neighborhood, or environment. 10. Wherever possible, new additions or alterations to structures shall be done in such a mamaer that if such additions or alterations need to be removed in the future, the essential form and integrity of the structure would be unimpaired. -10- 25A-14 dl/LLS ACT AGKF.EWNT 1114 1111" $ V1 Sunni Ana, CA 9270 EXHIBIT C Department of Parks and Recreation Primary Record for Property -II- 25A-15 25A-16 REQUEST F R Historic Resources Commission Action HISTORIC RESWRCES COMNISSM MEUNG DATE: JANUARY 24, 2019 TITLE: HISTORIC PROPERTY PRESERVATION AGREEMENT NO. 2018-02 (MILLS ACT) FOR THE PROPERTY LOCATED AT 1721 NORTH BUSH STREET {STRATEGIC PLAN NOS. 5,2; 5,3) Prepared by Pedro Gomez APPROVED ❑ As Recommended ❑ As Amended ❑ Set Public Hearing For CONTINUED TO Executive Director Planning Manager 4L;W)1Tih14c Recommend that the City Council authorize the City Manager and Clerk of the Council to execute a Historic Property Preservation Agreement (Mills Act) with Chad De Costa and Elisabetta Siccardi for the property located at 1721 North Bush Street, subject to non -substantive changes approved by the City Manager and City Attorney (Exhibit 1). Request of Applicant Chad De Costa and Elisabetta Siccardi are requesting approval to execute a Mills Act agreement with the City of Santa Ana at an existing residence located at 1721 North Bush Street that is currently listed on the Santa Ana Register of Historical Properties. Prosect Location and Site Description The subject property, known as the Drips House, consists of an existing one-story Craftsman Bungalow style residence that is approximately 1,589 square feet in size with a detached garage on a 7,100 -square -foot residential lot (Exhibit 2). The home was added to the Santa Ana Register of Historical Properties in 2001 and categorized as "Key." Analysis of the Issues Ordinance No. NS -2382 authorized the Historic Resources Commission to execute Historic Property Preservation Agreements (HPPA), commonly known as Mills Act agreements for eligible properties (Exhibit 1). The property is listed on the Santa Ana Register of Historical Properties and categorized as Key, making it eligible for a Mills Act agreement. The agreement provides monetary incentives to the property owner in the form of a property tax reduction in exchange for the owner's voluntary commitment to maintain the property in a good state of repair as necessary to maintain its character and appearance. Once recorded, the agreement generates a different valuation method in determining the property's assessed value, resulting in tax savings for the owner. Aside from the tax savings, the benefits include: 25A-17 HPPA No. 2018-02 January 24, 2019 Page 2 • Longterm preservation of the property and visual improvement to the neighborhood • Allows for a mechanism to provide for property rehabilitation • Provides additional Incentive for potential buyers to purchase historic structures • Discourages inappropriate alterations to the property In 2001, the Historic Resources Commission adopted Resolution No. 2001-33 approving Historic Register Categorization No. 2001-121 to place the Drips House on the historical register and within the Key category. Character -defining features of the Drips House that were determined to be architecturally significant included: roof configuration and treatment (exposed, shaped rafter tails, bargeboards, braces, and dormer), original materials and finishes, open porch configuration and detailing, and original doors and windows. The Drips House qualified for listing under Criterion 1 of Sec. 30-2, of the Santa Ana Municipal Code (SAMC), in that it embodied the "distinguishing characteristics of an architectural style or period." Additionally, the house was categorized as "Key" because it "has a distinctive architectural style and quality" as an example of the Craftsman style. The property has no identified unauthorized modifications. Upon consideration of the application, It is recommended that the City enter into a Historic Property Preservation Agreement.. GEQA Compliance In accordance with the California Environmental Quality Act, the recommended action is exempt from further review under Section 15331, Class 31, as this action is designed to preserve a historic resource. Categorical Exemption No. ER -2018-132 will be filed for this project. Strategic Plan Alignment Approval of this item supports the City's efforts to meet Goal No, 5 Community Health, Livability, Engagement & Sustainability, Objective No. 2 (expand opportunities for conservation and environmental sustainability) and Objective No. 3 (facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). PG:sb WHRC1201811-24.1811721 N. Bush Street (Drips House) \1721 N Bush Street— Staff Report Exhibits 1 - Mills Act Agreement 2 - 500' Radius Map 25A-18 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Santa Ana 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 Attn: Clerk of the Council FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 HISTORIC PROPERTY PRESERVATION AGREEMENT This Historic Property Preservation Agreement ("Agreement") is made and entered into by and between the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the of the State of California (hereinafter referred to as "City"), and Chad De Costa and Elisabetta Siceardi, (hereinafter collectively referred to as "Owner"), owners of real property located at 1721 North Bush Street, Santa Ana, California, in the County of Orange and listed on the Santa Ana Register of Historical Properties. RECITALS A. The City Council of the City of Santa Ana is authorized by California Government Code Section 50280 et seq. (known as the "Mills Act") to enter into contracts with owners of qualified historical properties to provide for appropriate use, maintenance, rehabilitation and restoration such that these historic properties retain their historic character and integrity. B. The Owner possesses fee title in and to that certain qualified real property together with associated structures and improvements thereon, located at 1721 North Bush Street, Santa Ana, CA, 92706 and more particularly described in Exhibit "A," attached hereto and incorporated herein by reference, and hereinafter referred to as the "Historic Property". C. The Historic Property is officially designated on the Santa Ana Register of Historical Properties pursuant to the requirements of Chapter 30 of the Santa Ana Municipal Code. D. City and Owner, for their mutual benefit, now desire to enter into this Agreement which defines and limits the use and alteration of this Historic Property in order to enhance and maintain its value as a cultural and historical resource for Owner and for the community; to prevent inappropriate alterations to the Historic Property and to ensure that repairs, additions, new building, and other changes are appropriate; and to ensure that rehabilitation and maintenance are carried out in an exemplary manner. 25A-19 E. Owner and City intend to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Section 50280 et seq., which will enable the Historic Property to qualify for an assessment of valuation as a restricted historical property pursuant to Article 1.9, Sec. 439 et seq., Chapter 3 Part 2 of Division 1 of the California Tax and Revenue Code. NOW, THEREFORE, the City of Santa Ana and the Owner of the Historic Property agree as follows: Effective Date and Terms of Agreement. This Agreement shall be effective and commence on February 19, 2019, and shall remain in effect for a term of ten (10) years thereafter. Each year, upon the anniversary of the effective date of this Agreement, such initial term will automatically be extended as provided in California Government Code Sections 50280 through 50290 and in Section 2, below. 2. Renewal. a. Each year on the anniversary of the effective date of this Agreement, a year shall automatically be added to the initial ten (10) year term of this Agreement unless written notice of nonrenewal is served as provided herein. b. If the Owner or the City desire(s) in any year not to renew the Agreement, the Owner or City shall serve written notice of nonrenewal of the Agreement on the other party. Unless such notice is served by the Owner to the City at least ninety (90) days prior to the annual renewal date, or served by the City to the Owner at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the term of the Agreement as provided herein. C. Within 30 days from receipt of City's notice of nonrenewal, the Owner may file a written protest of City's decision of nonrenewal. The City may, at any time prior to the annual renewal date of the Agreement, withdraw its notice to the Owner of nonrenewal. d. If either the Owner or the City serves notice to the other of nonrenewal in any year, the Agreement shall remain in effect for the balance of the tern then remaining, either from its original execution or from the last renewal of the Agreement, whichever may apply. 3. Standards and Conditions for Historic Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements and restrictions: a. Owner shall maintain the Historic Property in a good state of repair and shall preserve, maintain, and, where necessary, restore or rehabilitate the property and its character - defining features described in the "Historical Property Description" attached hereto, marked as Exhibit B, notably the general architectural form, style, materials, design, scale, proportions, organization of windows, doors, and other openings, textures, details, mass, roof line, porch and other aspects of the appearance of the exterior to the satisfaction of the City. 25A-20 b. All changes to the Historic Property shall comply with applicable City plans and regulations, and conform to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation, namely the U.S. Secretary of the Interior's Standards and Guidelines for Historic Preservation Projects. These guidelines are attached hereto, marked as Exhibit C, and incorporated herein by this reference. Owner shall continually maintain the Historic Property in the same or better condition. C. A view corridor enabling the general public to see the Historic Property from the public right-of-way shall be maintained, and Owner shall not be permitted to block the view corridor to the property with any new structure, such as walls, fences or shrubbery, so as to prevent the viewing of the historic landmark by the public. d. The following are prohibited: demolition of the Historic Property or destruction of character -defining features of the building or site; removal of trees and other major vegetation unless removal is approved by a rehabilitation plan approved by the Historic Resources Commission; paving of yard surface; exterior alterations or additions unless approved by the Historic Resources Commission and such alterations are in keeping with the Secretary of Interior's Standards; deteriorating, dilapidated or unrepaired structures such as fences, roofs, doors, walls, and windows; storage of junk, trash, debris, discarded or unused objects such as cars, appliances, or furniture; and other unsightly by decoration, structure or vegetation which is unsightly by reason of its height, condition, or inappropriate location. e. Owner shall allow reasonable periodic inspection by prior appointment, as needed or at least every five (5) years after the initial inspection, of the interior and exterior of the Historic Property by representatives of the City of Santa Ana, the County Assessor, the State Department of Parks and Recreation, and the State Board of Equalization, to determine the Owner's compliance with the terms and provisions of this Agreement. 4. Furnishing of Information. The Owner hereby agrees to furnish the City with any and all information requested which may be necessary or advisable to determine compliance with the terms and provisions of this Agreement. 5. Cancellation. a. The City, following a duly noticed public hearing by the City Council as set forth in Government Code Section 50280, et. seq., may cancel this Agreement if it determines that the Owner have breached any of the conditions of this Agreement, or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified Historic Property, or if the City determines that the Owner have failed to restore or rehabilitate the property in the manner specified in Section 3 of this Agreement. If a contract is cancelled for these reasons, the Owner shall pay a cancellation fee to the County Auditor as set forth in Government Code Section 50286. This cancellation fee shall be a percentage (currently set at twelve and one-half (12 Yz) percent by Government Code Section 50286) of the current fair market value of the 25A-21 property at the time of the cancellation, as determined by the county assessor, without regard to any restriction imposed pursuant to this Agreement. b. If the Historic Property is destroyed by earthquake, fire, flood or other natural disaster such that in the opinion of the City Building Official more than sixty (60) percent of the original fabric of the structure must be replaced, this Agreement shall be canceled immediately because, in effect, the historic value of the structure will have been destroyed. No fee shall be imposed in the case of destruction by acts of God or natural disaster. C. If the Historic Property is acquired by eminent domain and the City Council determines that the acquisition frustrates the purpose of this Agreement, this Agreement shall be cancelled and no fee imposed, as specified in Government Code Section 50288. 6. Enforcement of Agreement. a. In lieu of and/or in addition to any provisions to cancel the Agreement as referenced herein, City may specifically enforce, or enjoin the breach of, the terms of the Agreement. In the event of a default, under the provisions to cancel the Agreement by Owner, the City shall give written notice to Owner by registered or certified mail, and if such a violation is not corrected to the reasonable satisfaction of the City Manager or designee within thirty (30) days thereafter, or if not corrected within such a reasonable time as may be required to cure the breach or default, or default cannot be cured within thirty (30) days (provided that acts to cure the breach or default may be commenced within thirty (30) days and shall thereafter be diligently pursued to completion by Owner), then City may, without further notice, declare a default under the terms of this Agreement and may bring any action necessary to specifically enforce the obligations of Owner growing out of the terms of this Agreement, apply to any court, state or federal, for injunctive relief against any violation by Owner or apply for such relief as may be appropriate. b. City does not waive any claim of default by the Owner if City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in City's regulations governing historic properties are available to City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder. 7. Binding effect of Agreement. a. Owner hereby subjects the Historic Property, located at 1721 North Bush Street, Assessor Parcel Number, 003-121-28, and more particularly described in Exhibit A, in the City of Santa Ana, to the covenants, conditions, and restrictions as set forth in this Agreement. b. City and Owner hereby declare their specific intent that the covenants, conditions and restrictions as set forth herein 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 Property. Every contract, deed, or other instrument hereinafter executed, covering or conveying the Historic Property or any portion thereof, shall conclusively be held to have been executed, 25A-22 delivered, and accepted subject to the tenants, restrictions, and reservations expressed in this Agreement regardless of whether such covenants, conditions and restrictions are set forth in such contract, deed, or other instnunent. 8. No Compensation. Owner shall not receive any payment from City in consideration of the obligation imposed under this Agreement, it being recognized that the consideration for the execution of this Agreement is the substantial public benefit to be derived therefrom and the advantage that will accrue to Owner as a result of the effect upon the assessed value of the Property on the accoimt of the restrictions on the use and preservation of the Property. 9. Notice. Any notice required by the terms of this Agreement shall be sent to the address of the respective parties as specified below or at other addresses that may be later specified by the parties hereto. City: City of Santa Ana 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 Attn: Cleric of the Council Owners: Chad De Costa and Elisabetta Siccardi 1721 North Bush Street Santa Ana, CA 92706 10. General Provisions. a. None of the terms, provisions, or conditions of this Agreement shall be deemed to create a partnership between the parties hereto 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. The Owner agrees to and shall indemnify and hold the City and its elected and appointed officials, officers, agents, and employees harmless from liability for damage or claims for damage for personal injuries, including death, and claims for property damage which may arise from the direct or indirect use or operations of the Owner or those of his or her contractor, subcontractor, agent, employee, or other person acting on his or her behalf which relates to the use, operation, and maintenance of the Historic Property. The Owner hereby agrees to and shall defend the City and its elected and appointed officials, officers, agents, and employees with respect to any and all actions for damages caused by, or alleged to have been caused by, reason of the Owner's activities in connection with the Historic Property. C. This hold harmless provision applies to all damages and claims for damages suffered, or alleged to have been suffered, and costs of defense incurred, by reason of the 25A-23 operations referred to in this Agreement regardless of whether or not City prepared, supplied, or approved the plans, specifications or other documents for the Historic Property. d. All of the agreements, rights, covenants, conditions, and restrictions contained in this Agreement 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 Property, whether by operation of law on in any manner whatsoever. e. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations, or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorney's fees to be fixed by the court, in addition to court costs and other relief ordered by the court. f In the event that any of the provisions of this Agreement 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. g. This Agreement shall be construed and governed in accordance with the laws of the State of California, with venue in Orange County. 11. Recordation. No later than twenty (20) days after the parties execute and enter into this Agreement, the City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Orange. 12. Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. 13. Effective Date This Agreement shall be effective on the day and year first written above in Section 1. {Signature page follows) 25A-24 ATTEST: CITY OF SANTA ANA MARIA D. HUIZAR RAUL GODINEZ II Clerk of the Council City Manager [111,101 011:7 Date: CHAD DE COSTA Date: By: ELISABETTA SICCARDI APPROVED AS TO FORM: SONIA CARVALHO City Attorney Bv: LISA STORCK Assistant City Attorney RECOMMENDED FOR APPROVAL: MINH THAI Executive Director Planning and Building Agency 25A-25 EXHIBIT A LEGAL DESCRIPTION LOT 2 OF BUSH STREET TRACT, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 6, PAGE 35, OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. Assessor's Parcel Number: 003-141-28 25A-26 NAME Drips House REF. NO. 34 ADDRESS 1721 North Bush Street CITY Santa Ana ZIP 1 92706 ORANGE COUNTY YEAR BUILT 1912 LOCAL REGISTER CATEGORY: Key HISTORIC DISTRICT N/A NEIGHBORHOOD Santa Ana Triangle NATIONAL REGISTER CRITERIA FOR EVALUATION I C NATIONAL REGISTER STATUS CODE 1 5S1 Location: ❑ Not for Publication Z Unrestricted USGS 7.5" Quad Date: T R 'A of /4 of Sec B.M. ❑ Prehistoric 0 Historic ❑ Both ARCHITECTURAL STYLE: Bungalow/Craftsman Closely related to the English Arts and Crafts Movement, American Bungalow/Craftsman architecture was popularized by The Craftsman magazine and architects such as Charles and Henry Greene of Pasadena. It drew from the wood building traditions of Japan and Switzerland as well as the medieval themes favored by the Arts and Crafts philosophers. Craftsman architecture stressed honesty of form, materials, and workmanship, eschewing applied decoration in favor of the straightforward expression of structure. A new appreciation of nature was evident in horizontal lines that reached out to embrace the landscape and the incorporation of capacious porches into building plans. Primarily a residential style, Craftsman architecture can be identified by low-pitched gable and hipped roofs with exposed rafters and beams in deep overhangs; wood lap or shingle siding and an occasional use of stucco; extensive use of stone or brick as a secondary material; horizontal emphasis apparent in roof lines, headers, and battered porch supports; and broadly proportioned wood framed windows, often clustered in bands. Craftsman homes were built from circa 1902 until the early 1920s. cuo\historie\templates\nush N t921 (Drips House) 10/17/Ot 25A-27 (Construction data, alterations, and date of alterations) June 17, 1929. Private garage. April 11, 1933. Rebuild chimney. June 11, 1991. Fire damage, reframe and recover roof (composition). November 12, 1991. Repair floor and porch. RELATED FEATURES: (Other important features such as basis, sheds, fences, prominent or unusual trees, or landscape) None. DESCRIPTION: (Describe resource and its major elements. Include design, materials, condition, alterations, size, settings, and boundaries.) This one and a half -story residence is an example of the side gable variant of the Craftsman bungalow. Of moderate pitch, the gable is accented by a shed -roofed dormer centered on the fagade. Roof treatment includes exposed rafters with notched tails in the eaves and exposed knee braces in the gable ends. Medium width lap siding sheathes the house. Spanning most of the fagade, a recessed porch is enclosed by a brick porch wall. Short, elephantine posts on brick pedestals define three unevenly sized bays. Brick was also used for the porch stair walls and for a chimney attached to the south elevation. The entry features a battered surround with an extended lintel. Similarly framed, windows banded by transoms divided into small rectangular lights are located to either side of the entry. The property also contains a garage, constructed many years after the house. HISTORIC HIGHLIGHTS: This house was built by Harry P. Drips. and May West Drips in 1912. Harry Drips's father, William Drips, was a contractor, responsible for the building of Layman's Castle and the first brick building in Santa Ana, the Gilmacher Block.'A carpenter at Griffin Lumber and Mill, Harry joined his father in the construction business and together they built many churches and schools in the Newport and Tustin area. The Drips family, whose original name was Seldon, had come to America from Scotland. It is said that while fleeing religious persecution they had hidden in a cave and survived by drinking water that dripped from the rocks, and they decided to change their name as a consequence (Santa Ana Historical Preservation Society Newsletter). May West Drips was the daughter of pioneer Santa Ana resident C. Z. West, who operated the Waffle and West Livery Stable. West Street (now Broadway) was named after her grandfather, Captain John West. The couple married in 1894 and raised three daughters. Their son-in-law, James B. Utt, served in the United States Congress for over 20 years. Harry Drips died in 1940. May Drips continued to live in the house for several more years. Damaged by fire in 1991, the house was restored by Gary Green and presented with the Santa Ana Historical Preservation Society Award in 1992. RESOURCE ATTRIBUTES: (List attributes and codes from Appendix 4 of Instructions for Recording Historical Resources, Office of Historic Preservation.) HP2. Single-family Property Page 2 of 4 cnohistoric\templates\Bush N 1721 (Drips House) 10/17/01 25A-28 ® Building ❑ Structure ❑ Object ❑ Site ❑ District ❑ Element of District ❑ Other MOVED? ® No ❑ Yes ❑ Unknown Date: Original Location: STATEMENT OF SIGNIFICANCE: (Discuss importance in terms of historical or architectural context as defined by theme, period, geographic scope, and integrity.) Santa Ana was founded by William Spurgeon in 1869 as a speculative townsite on part of the Spanish land grant known as Rancho Santiago de Santa Ana. Early growth and development was stimulated by the arrival of the Southern Pacific Railroad in 1878 and the Santa Fe Railroad in 1886. Following its incorporation as a city in 1886, Santa Ana was recognized as one of the leading communities in the area in 1889 when it became the seat of the newly created County of Orange. Santa Ana continued to grow steadily, surviving an economic downturn in the 1890s and gaining momentum in the first decade of the 20a' century. The older neighborhoods closest to the downtown commercial district and to the churches, clubs, and institutions began to be filled up, and homebuilders looked elsewhere for land. This trend outward from the City's historic core was symbolized by the construction of Santa Ana High School on Main Street at Tenth Street in 1900 (demolished in the 1940s to make way for the new Buffum's Department Store). The Drips House is one of a cluster of homes from the first decades of the 20s' century that have survived on the 1700 block of North Bush Street, north of the older French Park neighborhood. It is architecturally significant as a representative example of the Craftsman style. Characteristic features incorporated in the design include a horizontal emphasis, articulated by the lines of eaves, porch beams, and window and door surrounds and a reliance on exposed structural elements such as the rafters and braces in the eaves for architectural interest. Character -defining exterior features of the Drips House, which should be preserved, include but may not be limited to: roof configuration and treatment (exposed, shaped rafter tails, bargeboards, braces, etc., dormer), original materials and finishes, open porch configuration and detailing, and original doors and windows. SUMMARY/CONCLUSION: This resource is currently listed in the Santa Ana Register of Historical Property. It is significant trader Criterion 1 in that it embodies the "distinguishing characteristics of an architectural style or period." The Drips House has been categorized as "Key" because it "has a distinctive architectural style and quality" as an example of the Craftsman style (Municipal Code, Section 30-2.2). Page 3 of 4 cro istorieVemplates\Bush N 1721 (Drips House) 10/17/01 25A-29 RECORDED BY: (Name, affiliation, and address) Leslie J. Heummm Science Applications International Corporation 35 S. Raymond Avenue, Suite 204, Pasadena, CA 91105 DATE RECORDED: October 3, 2001 SURVEY TYPE: (Intensive, reconnaissance, or other) Intensive REPORT CITATION: (Cite survey report and other sources) REFERENCES: EVALUATOR: City of Santa Ana. Santa Ana's Historic Treasures. (List documents, date of publication, and page numbers. May also include oral interviews.) An Illustrated EnCVCIODedia. New York. WW Marsh, Diann. Santa Ana, An Illustrated History. Encinitas, Heritage Publishing, 1994. McAlester. Virginia and Lee. A Field Guide to American Houses. New York: Alfred A. Knopf, 1984. National Register Bulletin 16A. "How to Complete the National Register Registration Form." Washington DC: National Register Branch, National Park Service, US Dept. of the Interior, 1991. Whiffen, Marcus. American Architecture Since 1780. Cambridge: MIT Press, 1969. "Mother -In -Law of Utt Dies." No source or date. "Historic Preservation Award." Santa Ana Historical Preservation Society Newsletter, Summer 1992. Heumann DATE OF EVALUATION: October 3, 2001 EXPLANATION OF CODES: • National Register Criteria for Evaluation: (From Appendix 7 of Instructions for Recording Historical Resources, Office of Historic. Preservation) C: that embody the distinctive characteristics of type, period, or method of construction, or that represent the rwork of a master, or that possess high artistic values, or that represent a significant and distinguishable entity whose components may lack individual distinction. • National Register Status. Code: (From Appendix 2 of Instructions for Recording Historical Resources, Office of Historic Preservation) 551: Is separately listed or designated under an existing local ordinance, or is eligible for such listing or designation. em\historic\templates\uush N 1721 (Drips House) 10/17/01 Page 4 of 4 25A-30 Exhibit C Exterior work shall be reviewed by the Historic Resources Commission and subject to the U.S. Secretary of the Interior's Standards for Rehabilitation of Historic Buildings, as follows: 1. Every reasonable effort shall be made to provide a compatible use for a property which requires minimal alteration of the building, structure, or site and its environment, or to use a property for its originally intended purpose. 2. The distinguishing original qualities or character of a building, structure or site and its environment shall not be destroyed. The removal or alteration of any historic material or distinctive architectural features should be avoided when possible. 3. All buildings, structures, and sites shall be recognized as products of their own time. Alterations that have no historical basis and which seek to create an earlier appearance shall be discouraged. 4. Changes which may have taken place in the course of time are evidence of the history and development of a building, structure, or site and its environment. These changes may have acquired significance in their own right, and this significance shall be recognized and respected. 5. Distinctive stylistic features or examples of skilled craftsmanship which characterize a building, structure, or site shall be treated with sensitivity. 6. Deteriorated architectural features shall be repaired rather than replaced, whenever possible. In the event replacement is necessary, the new material should match the material being replaced in composition, design, color, texture, and other visual qualities. Repair or replacement of missing architectural features should be based on accurate duplications of features, substantiated by historic, physical, or pictorial evidence rather than on conjectural designs or the availability of different architectural elements from the other buildings or structures. 7. The surface cleaning of structures shall be undertaken with the gentlest means possible. Sandblasting and other cleaning methods that will damage the historic building materials shall not be undertaken. 8. Every reasonable effort shall be made to protect and reserve archaeological resources affected by, or adjacent to any project. 9. Contemporary design for alterations and additions to existing properties shall not be discouraged when such alterations and additions do not destroy significant historical, architectural or cultural material, an such design is compatible with 25A-31 size, scale, color, material and character of the property, neighborhood, or environment. 10. Wherever possible, new additions or alterations to structures shall be done in such a manner that if such additions or alterations need to be removed in the future, the essential form and integrity of the structure would be unimpaired. 25A-32 This page left blank intentionally. 25A-33 HPPA 2018-2 1721 NORTH BUSH STREET DRIPS HOUSE PLANNING AND BUILDING AGENCY 25A-34 This page left blank intentionally. 25A-35 25A-36 REQUEST FOR Historic Resources Commission Action HISTORIC RESOURCES COMMISSION MP. E LING DATE: JANUARY 24, 2019 TITLE: HISTORIC PROPERTY PRESERVATION AGREEMENT NO. 2018-03 (MILLS ACT) FOR THE PROPERTY LOCATED AT 810 NORTH FRENCH STREET (STRATEGIC PLAN NOS. 5,2; 5,3) Prepared by Pedro Gomez EXHIBIT 3 APPROVED ❑ As Recommended ❑ As Amended ❑ Set Public Hearing For CONTINUED TO Executive Director Planning Manager Recommend that the City Council authorize the City Manager and Clerk of the Council to execute a Historic Property Preservation Agreement (Mills Act) with Victoria A. Betancourt for the property located at 810 North French Street, subject to non -substantive changes approved by the City Manager and City Attorney (Exhibit 1). Request of Applicant Victoria A. Betancourt Is requesting approval to execute a Mills Act agreement with the City of Santa Ana at an existing residence located at 810 North French Street that is currently listed on the Santa Ana Register of Historical Properties. Proiect Location and Site Description The subject property, known as the Crookshank House, consists of an existing two-story Colonial Revival style residence that is approximately 2,708 square feet in size on an 8,700 -square -foot residential lot (Exhibit 2). The home was listed in the National Register of Historic Places in 1999, as a contributor to the French Park Historic District, and added to the Santa Ana Register of Historical Properties in 2000 and categorized as "Landmark." Analysis of the Issues Ordinance No. NS -2382 authorized the Historic Resources Commission to execute Historic Property Preservation Agreements (HPPA), commonly known as Mills Act agreements for eligible properties (Exhibit 1). The property is listed on the Santa Ana Register of Historical Properties and categorized as Landmark, making it eligible for a Mills Act agreement. The agreement provides monetary incentives to the property owner in the form of a property tax reduction in exchange for the owner's voluntary commitment to maintain the property in a good state of repair as necessary to maintain its character and appearance. Once recorded, the agreement generates a different valuation method in determining the property's assessed value, resulting in tax savings for the owner. Aside from the tax savings, the benefits include: 25A-37 HPPA No. 2018-03 January 24, 2019 Page 2 • Long term preservation of the property and visual improvement to the neighborhood • Allows for a mechanism to provide for property rehabilitation • Provides additional Incentive for potential buyers to purchase historic structures • Discourages inappropriate alterations to the property In 2000, the Historic Resources Commission placed the Crookshank House on the historical register and within the Landmark category. Character -defining features of the Crookshank House determined architecturally significant included: roof configuration and treatment (carved bracket accents), the bellcast hip -roofed dormers, original materials and finishes (Narrow clapboard siding covers the exterior, paired wood columns resting on solid clapboard railings supporting the single -storied porch, topped with a mansard roof), and original doors and windows. The Crookshank House qualified for listing under Criterion 1 o Sec. 30-2, of the Santa Ana Municipal Code (SAMC), in that it embodied the "distinguishing characteristics of an architectural style or period:' Additionally, the house was categorized as Landmark because it was listed in the National Register as a contributor to the French Park Historic District, it "has an historical/cultural significance to the city," and because it "has a unique architectural significance" as an example of the Colonial Revival style. The property has no identified unauthorized modifications. Upon consideration of the application, it is recommended that the City enter into a Historic Property Preservation Agreement. CEQA Comallance In accordance with the California Environmental Quality Act, the recommended action is exempt from further review under Section 15331, Class 31, as this action is designed to preserve a historic resource. Categorical Exemption No. ER -2018-126 will be filed for this project. Strategic Plan Alignment Approval of this item supports the City's efforts to meet Goal No. 5 Community Health, Livability, Engagement & Sustainability, Objective No. 2 (expand opportunities for conservation and environmental sustainability) and Objective No. 3 (facilitate diverse housing opportunities and support efforts to preserve and Improve the livability of Santa Ana neighborhoods). PG:sb SAHR0201811.24-181810 N. French Street (Crookshank House) k810 N. French Street — Staff Report Exhibits 1 - Mills Act Agreement 2 - 500' Radius Map 25A-38 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Santa Ana 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 Attn: Cleric of the Council FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 HISTORIC PROPERTY PRESERVATION AGREEMENT This Historic Property Preservation Agreement ("Agreement") is made and entered into by and between the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the of the State of California (hereinafter referred to as "City"), and Victoria A. Betancourt, (hereinafter collectively referred to as "Owner"), owners of real property located at 810 North French Street, Santa Ana, California, in the County of Orange and listed on the Santa Ana Register of Historical Properties. RECITALS A. The City Council of the City of Santa Ana is authorized by California Government Code Section 50280 et seq. (known as the "Mills Act") to enter into contracts with owners of qualified historical properties to provide for appropriate use, maintenance, rehabilitation and restoration such that these historic properties retain their historic character and integrity. B. The Owner possesses fee title in and to that certain qualified real property together with associated structures and improvements thereon, located at 810 North French Street, Santa Ana, CA, 92701 and more particularly described in Exhibit "A," attached hereto and incorporated herein by reference, and hereinafter referred to as the "Historic Property". C. The Historic Property is officially designated on the Santa Ana Register of Historical Properties pursuant to the requirements of Chapter 30 of the Santa Ana Municipal Code. D. City and Owner, for their mutual benefit, now desire to enter into this Agreement which defines and limits the use and alteration of this Historic Property in order to enhance and maintain its value as a cultural and historical resource for Owner and for the community; to prevent inappropriate alterations to the Historic Property and to ensure that repairs, additions, new building, and other changes are appropriate; and to ensure that rehabilitation and maintenance are carried out in an exemplary manner. 25A-39 E. Owner and City intend to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Section 50280 et seq., which will enable the Historic Property to qualify for an assessment of valuation as a restricted historical property pursuant to Article 1.9, Sec. 439 et seq., Chapter 3 Part 2 of Division 1 of the California Tax and Revenue Code. NOW, THEREFORE, the City of Santa Ana and the Owner of the Historic Property agree as follows: 1. Effective Date and Terms of Agreement. This Agreement shall be effective and commence on February 19, 2019, and shall remain in effect for a term of ten (10) years thereafter. Each year, upon the anniversary of the effective date of this Agreement, such initial term will automatically be extended as provided in California Government Code Sections 50280 through 50290 and in Section 2, below. 2. Renewal. a. Each year on the anniversary of the effective date of this Agreement, a year shall automatically be added to the initial ten (10) year term of this Agreement unless written notice of nonrenewal is served as provided herein. b. If the Owner or the City desire(s) in any year not to renew the Agreement, the Owner or City shall serve written notice of nonrenewal of the Agreement on the other party, Unless such notice is served by the Owner to the City at least ninety (90) days prior to the annual renewal date, or served by the City to the Owner at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the term of the Agreement as provided herein. C. Within 30 days from receipt of City's notice of nonrenewal, the Owner may file a written protest of City's decision of nonrenewal. The City may, at any time prior to the annual renewal date of the Agreement, withdraw its notice to the Owner of nomenewal. d. If either the Owner or the City serves notice to the other of nonrenewal in any year, the Agreement shall remain in effect for the balance of the term then remaining, either from its original execution or from the last renewal of the Agreement, whichever may apply. 3. Standards and Conditions for Historic Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements and restrictions: a. Owner shall maintain the Historic Property in a good state of repair and shall preserve, maintain, and, where necessary, restore or rehabilitate the property and its character - defining features described in the "Historical Property Description" attached hereto, marked as Exhibit B, notably the general architectural form, style, materials, design, scale, proportions, organization of windows, doors, and other openings, textures, details, mass, roof line, porch and other aspects of the appearance of the exterior to the satisfaction of the City. 25A-40 b. All changes to the Historic Property shall comply with applicable City plans and regulations, and conform to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation, namely the U.S. Secretary of the Interior's Standards and Guidelines for Historic Preservation Projects. These guidelines are attached hereto, marked as Exhibit C, and incorporated herein by this reference. Owner shall continually maintain the Historic Property in the same or better condition. C. A view corridor enabling the general public to see the Historic Property from the public right-of-way shall be maintained, and Owner shall not be permitted to block the view corridor to the property with any new structure, such as walls, fences or shrubbery, so as to prevent the viewing of the historic landmark by the public. d. The following are prohibited: demolition of the Historic Property or destruction of character -defining features of the building or site; removal of trees and other major vegetation unless removal is approved by a rehabilitation plan approved by the Historic Resources Commission; paving of yard surface; exterior alterations or additions unless approved by the Historic Resources Commission and such alterations are in keeping with the Secretary of Interior's Standards; deteriorating, dilapidated or unrepaired structures such as fences, roofs, doors, walls, and windows; storage of junk, trash, debris, discarded or unused objects such as cars, appliances, or furniture; and other unsightly by decoration, structure or vegetation which is unsightly by reason of its height, condition, or inappropriate location. C. Owner shall allow reasonable periodic inspection by prior appointment, as needed or at least every five (5) years after the initial inspection, of the interior and exterior of the Historic Property by representatives of the City of Santa Ana, the County Assessor, the State Department of Parks and Recreation, and the State Board of Equalization, to determine the Owner's compliance with the terms and provisions of this Agreement. 4. Furnishing of Information. The Owner hereby agrees to furnish the City with any and all information requested which may be necessary or advisable to determine compliance with the terms and provisions of this Agreement. 5. Cancellation. a. The City, following a duly noticed public hearing by the City Council as set forth in Government Code Section 50280, et. seq., may cancel this Agreement if it determines that the Owner have breached any of the conditions of this Agreement, or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified Historic Property, or if the City determines that the Owner have failed to restore or rehabilitate the property in the manner specified in Section 3 of this Agreement. If a contract is cancelled for these reasons, the Owner shall pay a cancellation fee to the County Auditor as set forth in Government Code Section 50286. This cancellation fee shall be a percentage (currently set at twelve and one-half (12 '/2) percent by Government Code Section 50286) of the current fair market value of the 25A-41 property at the time of the cancellation, as determined by the county assessor, without regard to any restriction imposed pursuant to this Agreement. b. If the Historic Property is destroyed by earthquake, fire, flood or other natural disaster such that in the opinion of the City Building Official more than sixty (60) percent of the original fabric of the structure must be replaced, this Agreement shall be canceled immediately because, in effect, the historic value of the structure will have been destroyed. No fee shall be imposed in the case of destruction by acts of God or natural disaster. C. If the Historic Property is acquired by eminent domain and the City Council determines that the acquisition frustrates the purpose of this Agreement, this Agreement shall be cancelled and no fee imposed, as specified in Government Code Section 50288. 6. Enforcement of Agreement. a. In lieu of and/or in addition to any provisions to cancel the Agreement as referenced herein, City may specifically enforce, or enjoin the breach of, the terms of the Agreement. In the event of a default, under the provisions to cancel the Agreement by Owner, the City shall give written notice to Owner by registered or certified mail, and if such a violation is not corrected to the reasonable satisfaction of the City Manager or designee within thirty (30) days thereafter, or if not corrected within such a reasonable time as may be required to cure the breach or default, or default cannot be cured within thirty (30) days (provided that acts to cure the breach or default may be commenced within thirty (30) days and shall thereafter be diligently pursued to completion by Owner), then City may, without further notice, declare a default under the terms of this Agreement and may bring any action necessary to specifically enforce the obligations of Owner growing out of the terms of this Agreement, apply to any court, state or federal, for injunctive relief against any violation by Owner or apply for such relief as may be appropriate. ' b. City does not waive any claim of default by the Owner if City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in City's regulations governing historic properties are available to City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder. 7. Binding effect of Agreement. a. Owner hereby subjects the Historic Property, located at 810 North French Street, Assessor Parcel Number, 398-017-06, and more particularly described in Exhibit A, in the City of Santa Ana, to the covenants, conditions, and restrictions as set forth in this Agreement. b. City and Owner hereby declare their specific intent that the covenants, conditions and restrictions as set forth herein 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 Property. Every contract, deed, or other instr tment hereinafter executed, covering or conveying 25A-42 the Historic Property or any portion thereof, shall conclusively be held to have been executed, delivered, and accepted subject to the tenants, restrictions, and reservations expressed in this Agreement regardless of whether such covenants, conditions and restrictions are set forth in such contract, deed, or other instrument. 8. No Compensation. Owner shall not receive any payment from City in consideration of the obligation imposed under this Agreement, it being recognized that the consideration for the execution of this Agreement is the substantial public benefit to be derived therefrom and the advantage that will accrue to Owner as a result of the effect upon the assessed value of the Property on the account of the restrictions on the use and preservation of the Property. 9. Notice. Any notice required by the teams of this Agreement shall be sent to the address of the respective parties as specified below or at other addresses that may be later specified by the parties hereto. City: City of Santa Ana 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 Attn: Clerk of the Council Owners: Victoria A. Betancourt 810 North French Street Santa Ana, CA 92701 10. General Provisions. a. None of the terms, provisions, or conditions of this Agreement shall be deemed to create a partnership between the parties hereto 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. The Owner agrees to and shall indemnify and hold the City and its elected and appointed officials, officers, agents, and employees harmless from liability for damage or claims for damage for personal injuries, including death, and claims for property damage which may arise from the direct or indirect use or operations of the Owner or those of his or her contractor, subcontractor, agent, employee, or other person acting on his or her behalf which relates to the use, operation, and maintenance of the Historic Property. The Owner hereby agrees to and shall defend the City and its elected and appointed officials, officers, agents, and employees with respect to any and all actions for damages caused by, or alleged to have been caused by, reason of the Owner's activities in connection with the Historic Property. 25A-43 C. This hold harmless provision applies to all damages and claims for damages suffered, or alleged to have been suffered, and costs of defense incurred, by reason of the operations referred to in this Agreement regardless of whether or not City prepared, supplied, or approved the plans, specifications or other documents for the Historic Property. d. All of the agreements, rights, covenants, conditions, and restrictions contained in this Agreement 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 Property, whether by operation of law on in any manner whatsoever. e. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations, or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorney's fees to be fixed by the court, in addition to court costs and other relief ordered by the court. f. hi the event that any of the provisions of this Agreement 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. g. This Agreement shall be construed and governed in accordance with the laws of the State of California, with venue in Orange County. 11. Recordation. No later than twenty (20) days after the parties execute and enter into this Agreement, the City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Orange. 12. Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. 13. Effective Date This Agreement shall be effective on the day and year first written above in Section 1 {Signature page follows) 25A-44 ATTEST: MARIA D. HUIZAR Clerk of the Council [111101 Do Date: APPROVED AS TO FORM: SONIA CARVALHO City Attorney By: LISA STORCK Assistant City Attorney CITY OF SANTA ANA RAUL GODINEZ II City Manager By: VICTORIA A. BETANCOURT RECOMMENDED FOR APPROVAL: MINH THAI Executive Director Planning and Building Agency 25A-45 EXHIBIT A LEGAL DESCRIPTION LOT 8 AND THE NORTHERLY 20 FEET OF LOT 9 IN BLOCK F OF THE PRICE AND STELLA FRUIT ADDITION TO SANTA ANA, IN THE CITY OF SANTA ANA, AS PER MAP RECORDED IN BOOK 28, PAGE 5 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA Assessor's Parcel Number: 398-017-06 25A-46 NAME Crookshank House REF. NO. 146 ADDRESS 810 North French Skeet CITY Santa Ana ZIP 1 92701 ORANGE COUNTY YEAR BUILT 1904 LOCAL REGISTER CATEGORY: Landmark HISTORIC DISTRICT I French Park NEIGHBORHOODFrench Park NATIONAL REGISTER CRITERIA FOR EVALUATION [13,C NATIONAL REGISTER STATUS CODE 1D Location: Q Not for Publication ® Unrestricted USGS 7.5" Quad Date: T R % of V4 of Sec B.M. Q Prehistoric ® Historic F1 Both ARCHITECTURAL STYLE: Colonial Revival The architectural style terminology is adapted from the National Register Bulletin 16A The Colonial Revival style is one of the revival styles that were prevalent between 1895 —1915. The style is characterized for its simplicity and dignified formality. An entry porch flanked by columns on either side is one of its identifying features. Other features include simple, rectangular volumes with hipped roofs and boxed eaves, symmetrical placement of window and doors, simple colonial (Georgian and Federal style) details, especially on the columns and windows. LHIMcategory mookshank 5-12-00 25A-47 Year Built: Alterations: Repair Chimney: Addition to Residence: Reroof: Convert Residence to duplex: Add two french doors: Reroof: (Construction data, alterations, and date of alterations) 1904 June, 1923 September 7, 1933 July 25, 1938 October 1, 1951 August 26, 1955 August 9, 1991 March 25, 1996 RELATED FEATURES: (Other important features such as barns, sheds, fences, prominent or unusual trees, or landscape) None identified DESCRIPTION: (Describe resource and its major elements. Include design, materials, condition, alterations, size, settings, and boundaries.) Prominent bellcast hip -roofed dormers, accented with three multipaned arched windows, are centered in the front (west), north, and south sides of the hipped roof of the Clarence Crookshank House. Carved brackets accent the main roof, dormers, and porch roof. Narrow clapboard siding covers the exterior. Paired wood columns resting on solid clapboard railings support a single -storied porch, topped with a mansard roof. Most of the windows are double -hung, with a leaded glass window placed next to the front door. The high quality Craftsman style front door features a trio of long, narrow vertical beveled glass panels topped with three squares of beveled glass. A single storied wing on the south side features a large plate glass window with a leaded glass transom and a slanted bay on the south end. With the exception of the concrete front steps and possibly the single storied wing, this Colonial Revival home does not appear to have been altered. HISTORIC HIGHLIGHTS: Clarence Crookshank built this house for his bride, Anna L. Martin, in 1904. Clarence worked for his father Miles, first at the Crookshank and Beatty Dry Goods Store, and later as a cashier in the First National Bank. He later become president of the Santa Ana Building and Loan Company. He was active in several local civic organizations. His wife Anna died in 1912 and Clarence remarried around 1916 to Janet T. Brown. They lived at this house until 1924, when they moved out to the county to Lemon Heights, RESOURCE ATTRIBUTES: (List attributes and codes from Appendix 4 of Instructions for Recording Historical Resources, Office of Historic Preservation) (HP2) Single family property Ll\HRC\category crookshank 542-00 Page 2 of 4 25A-48 RE SOURCES PRESENT: ® Building ❑ Structure ❑ Object ❑ Site ❑ District ❑ Element of District MOVED? ® No ❑ Yes ❑ Unknown Date: Original Location: ❑ Other STATEMENT OF SIGNIFICANCE: (Discuss importance in terms of historical or architectural context as defined by theme, period, geographic scope, and integrity.) This example of residential architecture during The City of Santa Ana's early development, is located in French Park Historic District. This two-story single family residence, was built during the height of the development of French Park, a residential district advertised as the "Nob Hill" of Orange County. French Park was home to many prominent businessman, doctors, bankers, attorneys and civil servants from 1880 to the early 1940's. This is in excellent condition, in an unaltered state, and on its original site. Built in 1904, this structure embodies the colonial revival sense of simplicity and dignified formality, with hipped roofs and centered prominent bellcast hipped roofed dormers accented with three multi paned arched windows. The large porch, supported by paired wood columns, is topped with a mansard roof adding to the Colonial Revival style. This building has historic significance to the City of Santa Ana, because of its association with the Crookshank family, a prominent and influential family during the formative years of the City. This house also has a unique architectural significance because of its distinctive architectural details such as the bellcast hip -roofed dormers with arched windows and wide porch with four pairs of column supports. OWNER AND ADDRESS: Victoria Betancourt 810 N. French Street Santa Ana, CA 92701 Page 3 of 4 LAHMea[eyory crookshank 5-12-00 25A-49 RECORDED BY: DATE RECORDED: (Name, affiliation, and address) City of Santa Ana Planning Division 20 Civic Center Plaza May 4, 2000 Santa Ana. CA 92702 SURVEY TYPE: (Intensive, reconnaissance, or other) Reconnaissance REPORT CITATION: (Cite survey report and other sources) National Register of Historic Places Application for French Park Historic District Santa Ana Historic Register Application Form REFERENCES: (List documents, date of publication, and page numbers. May also include oral interviews.) City of Santa Ana Building Division Records EVALUATOR: EXPLANATION OF CODES: DATE OF EVALUATION: • National Register Criteria for Evaluation: (From Appendix 7 of Instructions for Recording. Historical Resources, Office of Historic Preservation) B that are associated with the lives of persons significant to our past C: that embody the distinctive characteristics of a type, period, or method of construction, or that represent the work of a master, or that possess high artistic values, or that represent a significant and distinguishable entity whose components may lack individual distinction • National Resister Status Codes (From Appendix 2 of Instructions for' Recording Historical Resources, Office of Historic Preservation) 1D: Contributor to a listed district. Page 4 of 4 LAHMcategory crookshank 5.12-00 25A-50 Exhibit C Exterior work shall be reviewed by the Historic Resources Commission and subject to the U.S. Secretary of the Interior's Standards for Rehabilitation of Historic Buildings, as follows: 1. Every reasonable effort shall be made to provide a compatible use for a property which requires minimal alteration of the building, structure, or site and its environment, or to use a property for its originally intended purpose. 2. The distinguishing original qualities or character of a building, structure or site and its environment shall not be destroyed. The removal or alteration of any historic material or distinctive architectural features should be avoided when possible. 3. All buildings, strictures, and sites shall be recognized as products of their own time. Alterations that have no historical basis and which seek to create an earlier appearance shall be discouraged. 4. Changes which may have taken place in the course of time are evidence of the history and development of a building, structure, or site and its environment. These changes may have acquired significance in their own right, and this significance shall be recognized and respected. 5. Distinctive stylistic features or examples of skilled craftsmanship which characterize a building, structure, or site shall be treated with sensitivity. 6. Deteriorated architectural features shall be repaired rather than replaced, whenever possible. In the event replacement is necessary, the new material should match the material being replaced in composition, design, color, texture, and other visual qualities. Repair or replacement of missing architectural features should be based on accurate duplications of features, substantiated by historic, physical, or pictorial evidence rather than on conjectural designs or the availability of different architectural elements from the other buildings or structures. 7. The surface cleaning of structures shall be undertaken with the gentlest means possible. Sandblasting and other cleaning methods that will damage the historic building materials shall not be undertaken. 8. Every reasonable effort shall be made to protect and reserve archaeological resources affected by, or adjacent to any project. 9. Contemporary design for alterations and additions to existing properties shall not be discouraged when such alterations and additions do not destroy significant historical, architectural or cultural material, an such design is compatible with 25A-51 size, scale, color, material and character of the property, neighborhood, or environment. 10. Wherever possible, new additions or alterations to structures shall be done in such a manner that if such additions or alterations need to be removed in the future, the essential form and integrity of the structure would be unimpaired. 25A-52 500' RADIUS HPPA 2018-3 810 NORTH FRENCH STREET CROOKSHANK HOUSE PLANNING AND BUILDING AGENCY 25A-53 ■ 25A-54 REQUEST FOR Historic♦'. Commission Action 1 HISTORICRESOURCES C04MSSION MEETING DATE JANUARY 24, 2019 TITLE: HISTORIC PROPERTY PRESERVATION AGREEMENT NO. 2018-04 (MILLS ACT) FOR THE PROPERTY LOCATED AT 202-208 WEST FOURTH STREET AND 318.320 NORTH SYCAMORE STREET {STRATEGIC PLAN NOS. 5, 2; 5,3} Prepared by Pedro Gomez Wit! APPROVED ❑ As Recommended ❑ As Amended ❑ Set Public Hearing For CONTINUED TO Executive Director Planning Mang Recommend that the City Council authorize the City Manager and Clerk of the Council to execute a Historic Property Preservation Agreement (Mills Act) with Spurgeon DTOC, LLC and KOA Investments, LLC, represented by Scott Ostlund and Jeff Smith respectively, for the property located at 202-208 West Fourth Street and 318-320 North Sycamore Street, subject to non -substantive changes approved by the City Manager and City Attorney (Exhibit 1). Reguest of Azstalicant Scott Ostiund and Jeff Smith are requesting approval to execute a Mills Act agreement with the City of Santa Ana at an existing building located at 202-208 West Fourth Street and 318-320 North Sycamore Street that is currently listed on the Santa Ana Register of Historical Properties. Project Location and Site Description The subject property, known as the Spurgeon Building, consists of an existing four-story Commercial style commercial building that is approximately 54,400 square feet in size on an 13,800 -square -foot commercial lot (Exhibit 2). The building was individually listed in the National Register of Historic Places in 1980 and listed again in 1984 as a contributor to the Downtown Historic District. In addition, it was added to the Santa Ana Register of Historical Properties in 2001 and categorized as "Landmark." Analysis of the Issues Ordinance No. NS -2382 authorized the Historic Resources Commission to execute Historic Property Preservation Agreements (HPPA), commonly known as Mills Act agreements for eligible properties (Exhibit 1). The property is listed on the Santa Ana Register of Historical Properties and categorized as Key, making it eligible for a Mills Act agreement. The agreement provides monetary incentives to the property owner In the form of a property tax reduction in 25A-55 HPPA No. 2018-03 January 24, 2019 Page 2 exchange for the owner's voluntary commitment to maintain the property in a good state of repair as necessary to maintain its character and appearance. Once recorded, the agreement generates a different valuation method In determining the property's assessed value, resulting in tax savings for the owner. Aside from the tax savings, the benefits include: • Long term preservation of the property and visual improvement to the neighborhood • Allows for a mechanism to provide for property rehabilitation • Provides additional incentive for potential buyers to purchase historic structures • Discourages inappropriate alterations to the property In 2001, the Historic Resources Commission adopted Resolution No. 2001-22 approving Historic Register Categorization No. 2001-64 to place the Spurgeon Building on the historical register and within the Landmark category. Character -defining features of the Spurgeon Building determined to be architecturally significant included: corner clock tower, original materials and finishes (brick construction, glazed display windows and storefronts with solid bulkheads and transoms of small, square panes of glass, paneled spandrels, bracketed soffits, and patterned fascia), single one -over -one double -hung sash and the slightly recessed interior bays, and projecting cornices and sills. The Spurgeon Building qualified for listing under Criteria 1, 2 and 4 of Sec. 30-2, of the Santa Ana Municipal Code (SAMC), in that it embodied the "distinguishing characteristics of an architectural style or period," it was a "work of notable architects, builders, or designers whose style influenced architectural development," and it was a "building of historical significance." Additionally, the building was categorized as "Landmark" because it "is on the national register," "is on the state register," "has historical/cultural significance to the City of Santa Ana," and "has a unique architectural significance." The property has no identified unauthorized modifications. Upon consideration of the application, It is recommended that the City enter into a Historic Property Preservation Agreement. CEQA Compliance In accordance with the California Environmental Quality Act, the recommended action is exempt from further review under Section 15331, Class 31, as this action is designed to preserve a historic resource. Categorical Exemption No. ER -2018-133 will be filed for this project. Strategic Plan AlIgnment Approval of this Item supports the City's efforts to meet Goal No. 5 Community Health, Livability, Engagement & Sustainability, Objective No. 2 (expand opportunities for conservation and environmental sustainability) and Objective No. 3 (facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). 25A-56 HPPA No. 2018-03 January 24, 2019 Page 3 rust) SAHR02019\1-24.19202.208 West Fourth Street and 318-320 North Sycamore Street (Spurgeon Building) \202-208 West Fourth Street and 318.320 North Sycamore Street—Staff Report Exhibits: 1 - Mills Act Agreement 2 - 500' Radius Map 25A-57 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Santa Ana 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 Attn: Cleric of the Council FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 HISTORIC PROPERTY PRESERVATION AGREEMENT This Historic Property Preservation Agreement ("Agreement') is made and entered into by and between the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the of the State of California (hereinafter referred to as "City"), and Spurgeon DTOC, LLC and KOA Investments, LLC, (hereinafter collectively referred to as "Owner"), owners of real property located at 202-212 West Fourth Street (commonly known as 202-208 W. 4th Street and 318-320 N. Sycamore Street), Santa Ana, California, in the County of Orange and listed on the Santa Ana Register of Historical Properties. RECITALS A. The City Council of the City of Santa Ana is authorized by California Government Code Section 50280 et seq. (known as the "Mills Act') to enter into contracts with owners of qualified historical properties to provide for appropriate use, maintenance, rehabilitation and restoration such that these historic properties retain their historic character and integrity. B. The Owner possesses fee title in and to that certain qualified real property together with associated structures and improvements thereon, located at 202-212 West Fourth Street, Santa Ana, CA, 92701 (commonly known as 202-208 W. 411 Street and 318-320 N. Sycamore Street) and more particularly described in Exhibit "A," attached hereto and incorporated herein by reference, and hereinafter referred to as the "Historic Property". C. The Historic Property is officially designated on the Santa Ana Register of Historical Properties pursuant to the requirements of Chapter 30 of the Santa Ana Municipal Code. D. City and Owner, for their mutual benefit, now desire to enter into this Agreement which defines and limits the use and alteration of this Historic Property in order to enhance and maintain its value as a cultural and historical resource for Owner and for the community; to prevent inappropriate alterations to the Historic Property and to ensure that repairs, additions, new building, and other changes are appropriate; and to ensure that rehabilitation and maintenance are carried out in an exemplary manner. 25A-58 E. Owner and City intend to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Section 50280 et seq., which will enable the Historic Property to qualify for an assessment of valuation as a restricted historical property pursuant to Article 1.9, Sec. 439 et seq., Chapter 3 Part 2 of Division 1 of the California Tax and Revenue Code. NOW, THEREFORE, the City of Santa Ana and the Owner of the Historic Property agree as follows: 1. Effective Date and Terms of Agreement. This Agreement shall be effective and commence on February 19, 2019, and shall remain in effect for a term of ten (10) years thereafter. Each year, upon the anniversary of the effective date of this Agreement, such initial term will automatically be extended as provided in California Government Code Sections 50280 through 50290 and in Section 2, below. 2. Renewal. a. Each year on the anniversary of the effective date of this Agreement, a year shall automatically be added to the initial ten (10) year term of this Agreement unless written notice of nonrenewal is served as provided herein. b. If the Owner or the City desire(s) in any year not to renew the Agreement, the Owner or City shall serve written notice of nonrenewal of the Agreement on the other party. Unless such notice is served by the Owner to the City at least ninety (90) days prior to the annual renewal date, or served by the City to the Owner at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the term of the Agreement as provided herein. C. Within 30 days from receipt of City's notice of nonrenewal, the Owner may file a written protest of City's decision of nonrenewal. The City may, at any time prior to the annual renewal date of the Agreement, withdraw its notice to the Owner of nonrenewal. d. If either the Owner or the City serves notice to the other of nonrenewal in any year, the Agreement shall remain in effect for the balance of the term then remaining, either from its original execution or from the last renewal of the Agreement, whichever may apply. 3. Standards and Conditions for Historic Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements and restrictions: a. Owner shall maintain the Historic Property in a good state of repair and shall preserve, maintain, and, where necessary, restore or rehabilitate the property and its character - defining features described in the "Historical Property Description" attached hereto, marked as Exhibit B, notably the general architectural form, style, materials, design, scale, proportions, 25A-59 organization of windows, doors, and other openings, textures, details, mass, roof line, porch and other aspects of the appearance of the exterior to the satisfaction of the City. b. All changes to the Historic Property shall comply with applicable City plans and regulations, and conform to the riles and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation, namely the U.S. Secretary of the Interior's Standards and Guidelines for Historic Preservation Projects. These guidelines are attached hereto, marked as Exhibit C, and incorporated herein by this reference. Owner shall continually maintain the Historic Property in the same or better condition. C. A view corridor enabling the general public to see the Historic Property from the public right-of-way shall be maintained, and Owner shall not be permitted to block the view corridor to the property with any new structure, such as walls, fences or shrubbery, so as to prevent the viewing of the historic landmark by the public. d. The following are prohibited: demolition of the Historic Property or destruction of character -defining features of the building or site; removal of trees and other major vegetation unless removal is approved by a rehabilitation plan approved by the Historic Resources Commission; paving of yard surface; exterior alterations or additions unless approved by the Historic Resources Commission and such alterations are in keeping with the Secretary of Interior's Standards; deteriorating, dilapidated or unrepaired strictures such as fences, roofs, doors, walls, and windows; storage of junk, trash, debris, discarded or unused objects such as cars, appliances, or furniture; and other unsightly by decoration, structure or vegetation which is unsightly by reason of its height, condition, or inappropriate location. C. Owner shall allow reasonable periodic inspection by prior appointment, as needed or at least every five (5) years after the initial inspection, of the interior and exterior of the Historic Property by representatives of the City of Santa Ana, the County Assessor, the State Department of Parks and Recreation, and the State Board of Equalization, to determine the Owner's compliance with the terms and provisions of this Agreement. 4. Furnishing of Information. The Owner hereby agrees to furnish the City with any and all information requested which may be necessary or advisable to determine compliance with the terms and provisions of this Agreement. 5. Cancellation. a. The City, following a duly noticed public hearing by the City Council as set forth in Government Code Section 50280, et. seq., may cancel this Agreement if it determines that the Owner have breached any of the conditions of this Agreement, or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified Historic Property, or if the City determines that the Owner have failed to restore or rehabilitate the property in the manner specified in Section 3 of this Agreement. If a contract is cancelled for these reasons, the Owner shall pay a cancellation fee to the County Auditor as set forth in Government Code 25A-60 Section 50286. This cancellation fee shall be a percentage (currently set at twelve and one-half (12 '/2) percent by Government Code Section 50286) of the current fair market value of the property at the time of the cancellation, as determined by the county assessor, without regard to any restriction imposed pursuant to this Agreement. b. If the Historic Property is destroyed by earthquake, fire, flood or other natural disaster such that in the opinion of the City Building Official more than sixty (60) percent of the original fabric of the stricture must be replaced, this Agreement shall be canceled immediately because, in effect, the historic value of the structure will have been destroyed. No fee shall be imposed in the case of destruction by acts of God or natural disaster. C. If the Historic Property is acquired by eminent domain and the City Council determines that the acquisition frustrates the purpose of this Agreement, this Agreement shall be cancelled and no fee imposed, as specified in Government Code Section 50288. 6. Enforcement of Agreement. a. In lieu of and/or in addition to any provisions to cancel the Agreement as referenced herein, City may specifically enforce, or enjoin the breach of, the terms of the Agreement. In the event of a default, under the provisions to cancel the Agreement by Owner, the City shall give written notice to Owner by registered or certified mail, and if such a violation is not corrected to the reasonable satisfaction of the City Manager or designee within thirty (30) days thereafter, or if not corrected within such a reasonable time as may be required to cure the breach or default, or default cannot be cured within thirty (30) days (provided that acts to cure the breach or default may be commenced within thirty (30) days and shall thereafter be diligently pursued to completion by Owner), then City may, without further notice, declare a default under the terms, of this Agreement and may bring any action necessary to specifically enforce the obligations of Owner growing out of the terms of this Agreement, apply to any court, state or federal, for injunctive relief against any violation by Owner or apply for such relief as may be appropriate. b. City does not waive any claim of default by the Owner if City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in City's regulations governing historic properties are available to City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder. 7. Binding effect of Agreement. a. Owner hereby subjects the Historic Property, located at 202-212 West Fourth Street (commonly known as 202-208 W. 4th Street and 318-320 N. Sycamore Street), Assessor Parcel Number 398-264-15, and more particularly described in Exhibit A, in the City of Santa Ana, to the covenants, conditions, and restrictions as set forth in this Agreement. b. City and Owner hereby declare their specific intent that the covenants, conditions and restrictions as set forth herein shall be deemed covenants running with the land and shall 25A-61 pass to and be binding upon Owner's successors and assigns in title or interest to the Historic Property. Every contract, deed, or other instrument hereinafter executed, covering or conveying the Historic Property or any portion thereof, shall conclusively be held to have been executed, delivered, and accepted subject to the tenants, restrictions, and reservations expressed in this Agreement regardless of whether such covenants, conditions and restrictions are set forth in such contract, deed, or other instrument. 8. No Compensation. Owner shall not receive any payment from City in consideration of the obligation imposed under this Agreement, it being recognized that the consideration for the execution of this Agreement is the substantial public benefit to be derived therefrom and the advantage that will accrue to Owner as a result of the effect upon the assessed value of the Property on the account of the restrictions on the use and preservation of the Property. 9. Notice. Any notice required by the terns of this Agreement shall be sent to the address of the respective parties as specified below or at other addresses that may be later specified by the parties hereto. City: City of Santa Ana 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 Attn: Clerk of the Council Owners: Spurgeon DTOC, LLC and KOA Investments, LLC 202-212 West Fourth Street Santa Ana, CA 92701 10. General Provisions. a. None of the terms, provisions, or conditions of this Agreement shall be deemed to create a partnership between the parties hereto 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. The Owner agrees to and shall indemnify and hold the City and its elected and appointed officials, officers, agents, and employees harmless from liability for damage or claims for damage for personal injuries, including death, and claims for property damage which may arise from the direct or indirect use or operations of the Owner or those of his or her contractor, subcontractor, agent, employee, or other person acting on his or her behalf which relates to the use, operation, and maintenance of the Historic Property. The Owner hereby agrees to and shall defend the City and its elected and appointed officials, officers, agents, and employees with respect to any and all actions for damages caused by, or alleged to have been caused by, reason of the Owner's activities in connection with the Historic Property. 25A-62 c. This hold harmless provision applies to all damages and claims for damages suffered, or alleged to have been suffered, and costs of defense incurred, by reason of the operations referred to in this Agreement regardless of whether or not City prepared, supplied, or approved the plans, specifications or other documents for the Historic Property. d. All of the agreements, rights, covenants, conditions, and restrictions contained in this Agreement 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 Property, whether by operation of law on in any manner whatsoever. C. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations, or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorney's fees to be fixed by the court, in addition to court costs and other relief ordered by the court. f. In the event that any of the provisions of this Agreement 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. g. This Agreement shall be construed and governed in accordance with the laws of the State of California, with venue in Orange County. 11. Recordation. No later than twenty (20) days after the parties execute and enter into this Agreement, the City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Orange. 12. Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. 13. Effective Date This Agreement shall be effective on the day and year first written above in Section 1. {Signature page followsl 25A-63 ATTEST: MARIA D. HUIZAR Clerk of the Council Date: Date: APPROVED AS TO FORM: SONIA CARVALHO City Attorney By: LISA STORCK Assistant City Attorney CITY OF SANTA ANA RAUL GODINEZ II City Manager BY: SCOTT OSTLUND SPURGEON DTOC, LLC By: JEFF SMITH KOA INVESTMENTS, LLC RECOMMENDED FOR APPROVAL: MINH THAI Executive Director Planning and Building Agency 25A-64 EXHIBIT A LEGAL DESCRIPTION ALL OF LOTS 8 AND 9 AND THE EAST 10-2/3 FEET OF LOTS 7 AND 10 IN BLOCK 12 OF THE TOWN OF SANTA ANA, AS SHOWN ON A MAP RECORDED IN BOOK 2, PAGE 51 OF MISCELLANEOUS RECORDS OF ORANGE COUNTY, CALFORNIA. Assessor's Parcel Number: 398-264-15 Commonly known as: 202-208 W. 41 Street and 318-320 N. Sycamore Street 92701 25A-65 NAME Spurgeon Building REF. NO. 20 ADDRESS 202-212 West Fourth Street and 318-320 North Sycamore Street CITY Santa Ana ZIP 1 92701 ORANGE COUNTY YEAR BUILT 1913 LOCAL REGISTER CATEGORY: Landmark HISTORIC DISTRICT Downtown Santa Ana NEIGHBORHOOD N/A NATIONAL REGISTER CRITERIA FOR EVALUATION A, B, NATIONAL REGISTER STATUS CODE 1B Location: [❑ Not for Publication Unrestricted USGS 7.5" Quad Date: T R % of %4 of Sec B.M. ❑ Prehistoric Historic [ Both ARCHITECTURAL STYLE: Commercial Style (with a Second Empire Clock Tower Element) DESCRIPTION/BACKGROUND RELATED TO PERIOD ARCHITECTURE: The Commercial Style achieved maturity in large eastern and Midwestern cities, most notably Chicago, where the demands for office and retail space in downtown areas led to the development of multi -storied buildings distinguished by an emphasis on windows over wall surfaces and a relative lack of ornamentation. Dating from 1875 to 1930, commercial buildings generally have straight fronts and level skylines, sometimes marked by an overhanging cornice. The regular fenestration pattern, usually consisting of repetitive groupings of unadorned, rectangular windows, provides the primary characteristic of the facades. Chicago windows, with broad, fixed central lights flanked by narrower, operable side sash, are often employed. Piers and spandrels may be in the same plane as the windows, or spandrels may be recessed, with the result that neither horizontal nor vertical lines achieve dominance (Whiffen, 183- 189). Pagel of 5 emUiistori6templatesTourth 202 W (Spurgeon Bldg) 8/21/01 25A-66 (Construction data, alterations, and date of alterations) 206-212: July 1921. Repairs. March 1923. Excavate basement. January 2, 1929. Alterations. February 1, 1949. Alterations and repairs to office building. 202: September 9, 1923. Alter storefront. June 3, 1946. Repair fire damage. May 4, 1961. Interior partitions, rear entry door, close existing windows. October 30, 1970. Interior alterations. December 20, 1985. Tenant improvement. 202-204: October 14, 1973. Remove skylights, cover openings with rafter, plywood roof. 202-208: January 1924, Alterations. June 6, 1936. Alteration to storefront. March 2, 1949. Remodel storefront. September 27, 1965. Interior partitions and remodel building. April 23, 1979. Interior remodel (206, suites 428-36). April 17, 1984. Alter. Add interior walls. 202-212: March 15, 1927. Alterations. February 18, 1936. Alterations to business building. June 6, 1944. Alterations to store. April 19, 1956. Alteration to store building. August 7, 1985. Seismic rehab. 204: February 26, 1989. Interior tenant improvement, 1" floor. 204-208: March 2, 1967. Interior alteration. April 13, 1967. Interior alterations. October 31, 1967. Exterior alteration. March 4, 1968. Dry wall existing wall & ceiling. July 18, 1968. Interior alteration. July 25, 1968. Interior alteration (206, rooms 234, 236, 306, 308, 333-332). July 26, 1971. Remove non-bearing wall in room 303. 206: April 7, 1920. Cigar stand in Spurgeon Building. July 14, 1938. Alterations to room 335. November 3, 1938. Alterations and repairs to store building. January 14, 1939. Alter business building. May 13, 1940. Repairs to office building. September 4, 1941. Repairs to office building. December 3, 1971. Office partitions & sliding door. January 25, 1973. Four stucco walls. April 18, 1974. Interior alteration, offices 202-208. April 30, 1985. Pedestrian canopy, remove existing drywall. May 30, 1985. Seismic rehab. August 22, 1985. Commercial rehab—remodel interior. October 30, 1987. Non-bearing partitions, 4" floor. February 24, 1988. Partitions (room 324); alter counter, cut opening, frame doors (2"d floor). August 22, 1990. Interior partition. October 1, 1992. Add partition walls, remove all; remove 2"d floor offices & counter & remodel back entry waiting room; install canopy. 208: April 14, 1959. Addition to building (new front office for S. A. Book Store). November 9, 1966. Interior alteration. December 13, 1966. Add drywall & install grid ceiling. February 7, 1984. Close off area to reduce retail floor area. December 20, 1985. Tenant improvement. 208-224: January 16, 1987. Elevated skywalk between buildings. 210: April 4, 1919. Screen doors. April 1922. Alterations on store. November 1, 1935. Alterations. May 20, 1937. Remodel storefront. March 4, 1946. Repair fire damage to Sayers Linen Store. February 26, 1986. Tenant improvement. 212: April 7, 1920. Shoe store alter storefront and repair. June 19, 1929. Install partitions. July 13, 1929. Store alterations. July 29, 1929. Alterations. August 4, 1930. Alterations. September 5, 1933. Alterations. March 9, 1937. Repair storefront. April 5, 1937. Remodel storefront. October 29, 1945. Mezzanine floor in The Sport Shop. March 22, 1946. Alteration to store building. No date (1950s). Remodel interior of commercial building (commercial bank). December 16, 1983. Wall. December 20, 1985. Tenant improvement. Page 2 of 5 rm\lu& urirAtemplatesAFuurdr 202 W (Spurgeon Bldg) 8/21/01 25A-67 RELATED FEATURES: (Other important features such as barns, sheds, fences, prominent or unusual trees, or landscape) None DESCRIPTION: (Describe resource and its major elements. Include design, materials, condition, alterations, size, settings, and boundaries.) One of the most recognizable buildings in Santa Ana by virtue of its corner clock tower, the Spurgeon Building occupies the southwest comer of Fourth. and Sycamore Streets._ Of brick construction, the building is divided into nine bays _on the north (_Fourt_h__. Street) elevation and seven bays on the east elevation. Glazed display windows and storefronts, with solid bulkheads and transoms of small, square panes of glass, occupy the street level bays. Building entries are located on each elevation and are distinguished by rusticated surrounds. A decorative, projecting cornice circles the building above the ground floor. On the upper stories, the raised end bays each contain single one -over -one double -hung sash and the slightly recessed interior bays each contain paired sash. Projecting sills and paneled spandrels embellish the fenestration. At the fourth floor level, the tops of the piers are ornamented with raised brick and tile arranged in a fork -like motif, Square panels punctuate the frieze above the fourth floor. Sandwiched between the end bays, the overhanging cornice is detailed with dentils, bracketed soffits, and a patterned fascia. Rising above the northeast corner of the building, the clock tower suggests the influence of the Second Empire style, with elaborate arches containing clock faces on four sides surmounted by a cupola and flagpole. Other than relatively minor storefront alterations, the Spurgeon Building retains a high degree of integrity. HISTORIC HIGHLIGHTS: The Spurgeon Building was constructed in 1913 by William Spurgeon, the founder of Santa Ana, using a design provided by architects Metcalf and Davis of Long Beach. It was the third Spurgeon Building on the site, having been preceded by smaller structures erected in the1870s and 1880s. For many years it was not only the tallest building in Santa Ana, but also one of the most prominent addresses in downtown, much favored by doctors and lawyers. Appropriately, the comer retail tenant was the White Cross Drugstore; Walgreen's took over the space in the 1930s. William Spurgeon is not only remembered as the founder of Santa Ana, but also as one of its most prominent citizens. Spurgeon was elected to the state legislature, was one of the prime movers in the movement to establish Orange County, and served as chairman on the new county's Board of Supervisors. His business and civic interests ranged from his general merchandise store, first opened on Fourth Street in 1869, to the founding of Santa Ana's first church (the Methodist Episcopal Church, now the Spurgeon Memorial Methodist Church) in 1870 and the establishment of a stage coach stop followed by the formation of the Santa Ana and Newport Railway. Spurgeon died in 1915. There was a campaign led by Tim Rush, local preservationist, to restore the operation of the clock in 1999. RESOURCE ATTRIBUTES: (List attributes and codes from Appendix 4 of Instructions for Recording Historical Resources, Office of Historic Preservation.) (HP 7) 3+ story Commercial Building RESOURCES PRESENT: ® Building ❑ Structure [] Object MOVED? 0 No ❑ Yes ❑ Unknown crad istarickemplatesTourth 202 W (Spurgeon Bldg) 8/21/01 ❑ Site ❑ District EJ Element of District Date: Original Location: Page 3 of 5 25A-68 0 Other STATEMENT OF SIGNIFICANCE: (Discuss importance in terms of historical or architectural context as defined by theme, period, geographic scope, and integrity.) Santa Ana was founded by William Spurgeon in 1869 as a speculative townsite on part of the Spanish land grant known as Rancho Santiago de Santa Ana. Early growth and development was stimulated by the arrival of the Southern Pacific Railroad in 1878 and the Santa Fe Railroad in 1886. By the end of the 1880s, Santa Ana's downtown business district was defined by five city blocks of brick commercial buildings on Fourth Street, with the heart of the city at the intersection of Fourth and Main Streets (Thomas, 8:1). The period of 1911-1915 saw many characteristic new business blocks or remodels along Fourth Street, and by the 1920s Santa Ana's downtown had expanded in each direction to include both commercial and civic development. The Spurgeon Building possesses a strong historic integrity and, in the nearly ninety years of its existence, has become recognized as a symbol of Santa Ana. It is historically significant as one of the most prominent buildings in downtown Santa Ana, emblematic of Santa Ana's prosperity and primacy in the affairs of Orange County as well as home to numerous local professionals. A tangible legacy of Santa Ana's founder and one of its foremost city builders, the building is the most significant extant building associated with William Spurgeon. In addition, the building is architecturally significant as a local example of the Commercial Style of architecture, which stood out in the city's landscape as the tallest building until 1923. Due to the extraordinary importance and high integrity of the Spurgeon Building, all original features of the exterior should be considered to be character -defining and should be preserved, including (but not limited to): all exterior finishes; building configuration and bay divisions; tower; fenestration; and cornice. SUMMARY/CONCLUSION: This building was individually listed in the National Register of Historic Places in 1980 and listed again in 1984 as a contributor to the Downtown Historic District. Under the regulations implementing the California Register of Historical Resources, the building is also listed in the California Register. Listed in the Santa Ana Register of Historical Property, the Spurgeon Building has been categorized as "Landmark" because it "is on the national register," "is on the state register," "has historical/cultural significance to the City of Santa Ana," and "has a unique architectural significance" (Municipal Code, Section 30-2.2). alARKMI]MOO �11 14 M3 RECORDED BY: (Name, affiliation, and address) Leslie J. Hellmann Science Applications International Corporation 35 S. Raymond Avenue, Suite 204, Pasadena, CA 91105 DATE RECORDED: July 3, 2001 Page 4 of 5 c6lostorl6teroplatesTourth 202 W (Spurgeon Bldg) 8/21/01 25A-69 SURVEY TYPE: (Intensive, reconnaissance, or other) Intensive Survey Update REPORT CITATION: (Cite survey report and other sources) Citv of Santa Ana, Santa Ana's Histol --Les,- I{athleen. "Santa Ana Historic Survey, Final Resources Inventory: Downtown." -May -1980. Thomas, Harold M. "Downtown Santa Ana Historic District" National Register nomination form, 1984. (List documents, date of publication, and page numbers. May also include oral interviews.) Harris, Cyril M. American Architecture: An Illustrated Encyclopedia. New York, WW Norton, 1998. Marsh Diann, Santa Ana, An Illustrated History. Encinitas, Heritage Publishing, 1994. McAlester, Virginia and Lee. A Field Guide to American Houses. New York: Alfred A. I{nopf, 1984. National Register Bulletin 16A. "How to Complete the National Register Registration Form." Washington DC: National Register Branch, National Park Service, US Department of the Interior, 1991. Whiffen, Marcus. American Architecture Since 1780. Cambridge: MIT Press, 1969. EVALUATOR: Leslie J. Heumann DATE OF EVALUATION: July 3, 2001 EXPLANATION OF CODES: • National Register Criteria for Evaluation: (From Appendix 7 of Instructions for Recording Historical Resources, Office of Historic Preservation) A: that are associated with events that have made a significant contribution to the broad patterns of our history. B: that are associated with the lives of persons significant in our past. C: that embody the distinctive characteristics of a type, period, or method of construction, or that represent the work of a master, or that possess high artistic values,: or that represent a significant, and distinguishable entity , whose components may lack individual distinction.... • .National Register Status Code: (From. Appendix 2 of Instructions for. Recording Historical Resources, Office of Historic Preservation). IB: Is separately listed and is a contributor to a listed district. Page 5 of 5 cm\historic\templatesTourth 202 W (Spurgeon Bldg) 8/21/01 25A-70 Exhibit C Exterior work shall be reviewed by the Historic Resources Commission and subject to the U.S. Secretary of the Interior's Standards for Rehabilitation of Historic Buildings, as follows: 1. Every reasonable effort shall be made to provide a compatible use for a property which requires minimal alteration of the building, structure, or site and its environment, or to use a property for its originally intended purpose. 2. The distinguishing original qualities or character of a building, structure or site and its environment shall not be destroyed. The removal or alteration of any historic material or distinctive architectural features should be avoided when possible. 3. All buildings, structures, and sites shall be recognized as products of their own time. Alterations that have no historical basis and which seek to create an earlier appearance shall be discouraged. 4. Changes which may have taken place in the course of time are evidence of the history and development of a building, structure, or site and its environment. These changes may have acquired significance in their own right, and this significance shall be recognized and respected. 5. Distinctive stylistic features or examples of skilled craftsmanship which characterize a building, structure, or site shall be treated with sensitivity. 6. Deteriorated architectural features shall be repaired rather than replaced, whenever possible. In the event replacement is necessary, the new material should match the material being replaced in composition, design, color, texture, and other visual qualities. Repair or replacement of missing architectural features should be based on accurate duplications of features, substantiated by historic, physical, or pictorial evidence rather than on conjectural designs or the availability of different architectural elements from the other buildings or structures. 7. The surface cleaning of structures shall be undertaken with the gentlest means possible. Sandblasting and other cleaning methods that will damage the historic building materials shall not be undertaken. 8. Every reasonable effort shall be made to protect and reserve archaeological resources affected by, or adjacent to any project. 9. Contemporary design for alterations and additions to existing properties shall not be discouraged when such alterations and additions do not destroy significant historical, architectural or cultural material, an such design is compatible with 25A-71 size, scale, color, material and character of the property, neighborhood, or environment. 10. Wherever possible, new additions or alterations to structures shall be done in such a manner that if such additions or alterations need to be removed in the future, the essential form and integrity of the structure would be unimpaired. 25A-72 500' RADIUS HPPA 2018-4 202 - 212 WEST FOURTH STREET SPURGEON BUILDING PLANNING AND BUILDING AGENCY 25A-73 25A-74