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CITY COUNCIL STAFF REPORT DATE: September 03, 2014 CONSENT AGENDA SUBJECT: MILLS ACT HISTORIC SITE CONTRACT - 283 EAST TWIN PALMS DRIVE (HSPB #73/ HD-2 ROYAL HAWAIIAN ESTATES) FROM: BY: David H. Ready, City Manager Planning Services SUMMARY This action would engage the City of Palm Springs into a standard Mills Act Agreement with Craig Hammond, owner of 283 East Twin Palms Drive, (APN 511-070-038) and the Royal Hawaiian Estates Homeowners Association. The intent of this contract is to require maintenance and preservation of this Class 1 historic site in exchange for possible property tax relief as calculated by the County of Riverside. RECOMMENDATION: 1. Approve a Mills Act Historic Property Agreement between the City of Palm Springs and Bill Lewallen, and the Royal Hawaiian Estates Homeowners Association, for 283 East Twin Palms Drive, a Class 1 historic site (HSPB #73 I HD-2). 2. Authorize the City Manager to execute the Agreement. 3. Direct the City Clerk to record the Agreement. STAFF ANALYSIS: On February 3, 2010, the City Council designated the Royal Hawaiian Estates a Historic District (HSPB #73/ Historic District #2). The Royal Hawaiian Estates Historic District is comprised of forty residences on roughly five acres. Two Eighty-three East Twin Palms Drive is one of the residences that is defined as a contributing structure to the historic district. On July 8, 2014, the Historic Site Preservation Board voted (7-0) to recommend that the City Council execute a Mills Act Contract between the City of Palm Springs, Bill Lewallen and the Royal Hawaiian Homeowners Association.!TE''' '!0. J-'fl

' City Council Staff Report September 03, 2014- Page 2 Mills Act- 283 East Twin Palm Drive- Condo in the Royal Hawaiian Estates Historic District Pursuant with California Government Code Section 50280-50290 upon the application of an owner of any qualified historic property, the legislative body of a city may contract with the owner or agent to restrict the use of the property to carry out the purposes and goals of historic preservation of the property. Such a contract is commonly referred to as a "Mills Act Agreement" and it provides for possible alternative property tax rate calculations in exchange for specific and ongoing preservation and maintenance of the property, specifically its historically significant elements and characteristics. The property at 283 East Twin Palms Drive has been deemed a "contributing structure" within the Royal Hawaiian Estates Historic District. Pursuant to Municipal Code Section 8.05.125, contributing structures in a historic district are subject to Class 1 regulations and are designated Class 1 historic sites. State of California Governmental Code Section 50280.1 denotes that properties that are eligible for application of a Mills Act contract must be listed in a state, city, county official register of historic sites. As such, 283 East Twin Palms Drive is qualified for a Mills Act Contract. At Royal Hawaiian Estates, routine maintenance and upkeep of the building exteriors and grounds is a shared responsibility of the home-owners association (HOA) and the individual unit owners. Because of this shared responsibility, the Mills Act Agreement in this particular case has been drafted with both the homeowners and the HOA as parties to the agreement. If, in the future, other individual home owners at the Royal Hawaiian wish to pursue a Mills Act Agreement, the same contractual arrangement would apply. FISCAL IMPACT: None There is no known fiscal impact upon the city as a result of this recommended action. Interim-Director of Planning Services Attachments: Vicinity Map City Council Action Summary (pages 1 and 2) dated February 3, 2010. HSPB Meeting Minutes (page 2) dated July 8, 2014. Lewallen to HSPB letter of support dated May 12, 2014 02

Department of Planning Services Vicinity Map A N _L ~... EP.ALMCANYONDR. \ ' ' ' \--... ~( EI,:Cf>.MINO-\I'll>. y Legend ~Site c:j 500' Buffer Parcels CITY OF PALM SPRINGS CASE# HSPB 74/HD-2 283 E Twin Palms Drive APN: 511-070-038 APPLICANT: Mr. Bill Lewallen DESCRIPTION: Application for a Mills Act Historic Property ~aintenance Agreement between the City of Palm Spnngs, Royal Hawaiian Estates HOA and Bill Lewallen of Unit 283. Zoned R2 Sec. 26fT 4/R4. 03

CITY COUNCIL ACTION SUMMARY WEDNESDAY, FEBRUARY 3, 2010 All Present. REP T OF CLOSED SESSION: ACTIO 1) Make the finding that the Item came to the attention of the City after the posting o genda, and there is an immediate need to hear and/or take action on the Item; and dd the following Item to the Closed Session Agenda: Government Code Section 549, Conference with Real Property Negotiator for the property described as El Dorado ms Estates, Negotiating Parties El Dorado Palm Springs Ltd., City Negotiator, Davi eady, City Manager or Designee, to discuss price and terms of purchase. Motion uncilmember Mills, seconded by Councilmember Foat and unanimously carrie -0). City Attorney Holland sta that the City Council recessed into Closed Session to discuss Items on the posted sed Session Agenda. City Attorney Holland reported the City Council provided direction the City Attorney on the Property Negotiations with El Dorado Palm Springs Ltd., othe e no reportable actions were taken. ACCEPTANCE OF THE AGENDA: City Clerk Thompson requested the City Improvement Agreement with Palomino TT neil delete the extension of the Subdivision 3577, on Item 2.J. Councilmember Foal requested Item 2.J. be r separate discussion. oved from the Consent Calendar for Council member Mills stated he has a business relate Consent Calendar Item 2.J., and would not participate in nflict of interest with respect to e discussion or the vote. Mayor ProTem Hutcheson requested Item 2.L. be remove for separate discussion. m the Consent Calendar Councilmember Weigel stated he has a property related conflict to the Alta Subdivision Improvement Agreement on Item 2.J. and extension. "nterest with respect ld abstain on that Mayor Pougnet requested Item 2.F. be removed from the Consen separate discussion. ACTION: Accept the Agenda as amended. Motion seconded by Councilmember Foat an Wl;iiillil~ llilllllll-..lllllillllliiiwi 1. PUBLIC HEARINGS: 1.A. DESIGNATION OF THE ROYAL HAWAIIAN ESTATES CONDOMINIUM LOCATED AT 1774 SOUTH PALM CANYON DRIVE AS A HISTORIC DISTRICT (CASE HSPB 73 I HD 2): ACTION: Adopt Resolution No. 22657, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, 04

City Council ACTION SUMMARY February 3, 201 0 Page 2. ESTABLISHING HISTORIC DISTRICT NO. 2, AT THE ROYAL HAWAIIAN ESTATES CONDOMINIUMS LOCATED AT 1774 SOUTH PALM CANYON DRIVE." Motion Councilmember Foat, seconded by Mayor Pro Tern Hutcheson and carried 4-1 on a roll call vote. AYES: NOES: Councilmember Foat, Councilmember Weigel, Mayor Pro Tem Hutcheson, and Mayor Pougnet. Councilmember Mills. 1.B. DESIGNATION OF THE SINGLE FAMILY APACHE ROAD AS A CLASS 1 HISTORIC SITE (CASE HSPB 74): ACTION: Adopt Resolution No. 22658, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, DESIGNATING THE SINGLE FAMILY DWELLING AT 1070 APACHE ROAD, A CLASS ONE HISTORIC SITE." Motion Mayor Tern Hutcheson, seconded by Councilmember Foat and unanirrull.lslv carried on a roll call vote. 2. CONSENT CALENDAR: ACTION: Approve Items 2.A., 2.8., 2.C., 2.0., 2.E., 2.G., 2.H., 2.N., and 2.P. Motion Mayor Pro Tern Hutcheson, ~~co1ndetd Councilmember Weigel and unanimously carried on a roll 2.A. 2.B. REPORT ON POSTING OF THE AGENDA: ACTION: Receive and file Report on the Pn.::,tinn,..+I,, February 3, 2010, City Council Agenda. Approved as part of the Calendar. APPROVAL OF MINUTES: ACTION: Approve the City Council v"'"'"""' of January 13, 2010, and the City Council/Community Agency Minutes of January 20, 2010. Approved as part of the Calendar. 2.C. APPROVAL OF PAYROLL CLAIMS AND DEMANDS: ACTION: 1) Adopt 22659, "A RESOLUTION OF THE CITY COUNCIL OF THE OF PALM SPRINGS, CALIFORNIA, APPROVING PAYME CLAIMS AND DEMANDS BY WARRANTS NUMBERED 1 1039851, IN THE AGGREGATE AMOUNT OF.88, DRAWN ON BANK OF AMERICA;" and 2) Adopt Resolution 22660, "A RESOLUTION OF THE CITY COUNCIL OF THE PALM SPRINGS, CALIFORNIA, APPROVING PAYMENT AND DEMANDS BY WARRANTS NUMBERED 1039852 1039928, IN THE AGGREGATE AMOUNT OF $787,91, DRAWN ON BANK OF AMERICA;" 3) Adopt Resolution No. 22661 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NGS, CALIFORNIA, APPROVING PAYMENT OF PAYROLL FOR THE PERIOD ENDED 01-09-10 BY WARRANTS 415340 THROUGH 415380 TOTALING $100,467.59, CHECKS NUMBERED 1039929 THROUGH 1039949 05

Historic Site Preservation Minutes July 8, 2014 Page 2 of 9 Approve as a 1.B. REQUEST BY BILL LEWALLEN (OWNER) FOR EXECUTION OF A MILLS ACT HISTORIC PROPERTY PRESERVATION AGREEME;:NT BETWEEN THE CITY OF PALM SPRING, THE ROYAL HAWAIIAN ESTATES HOMEOWNERS ASSOCIATE AND BILL LEWALLEN FOR THE PROPERTY LOCATED AT 283 EAST TWIN PALMS DRIVE, A CONTRIBUTING STRUCTURE ELIGIBLE FOR CLASS 1 HISTORIC STATUS WITHIN THE ROYAL HAWAIIAN HISTORIC DISTRICT (HSPB 73 I HD-2). M/S/C Ploss/Dixon Approve staff's recommendation (7-0). OWNERS FOR EXECUTION OF A MILLS ACT HISTORIC PRESERVATION AGREEMENT BETWEEN THE CITY OF PALM THE RACQUET CLUB GARDEN VILLAS HOMEOWNERS AND RICHARD COOK AND CHRISTOPHER FOR THE PROPERTY LOCATED AT 360 CABRILLO 118, A CONTRIBUTING STRUCTURE ELIGIBLE FOR CLASS STATUS WITHIN THE RACQUET CLUB COTTAGES SWII'FmnORIC DISTRICT, (HSPB 88 I HD-3). 1.D. REQUEST BY MICHAEL D LUIS A. LAVIN, OWNERS FOR EXECUTION OF A MILLS ISTORIC PROPERTY PRESERVATION AGREEMENT BETWEEN CITY OF PALM SPRINGS AND MICHAEL FLEMING AND LUIS FOR THE PROPERTY LOCATED AT 1860 VISTA DRIVE, A C 1 HISTORIC SITE (HSPB 89). M/S/CApp s recommendation (7-0). 2....-..-uL... TION BY THE CITY OF PALM SPRINGS FOR CONSIDERATION OF CLASS 1 HISTORIC DESIGNATION OF 630 EAST TACHEVAH DRIVE KNOWN AS "THE CHARLIE FARRELL ESTATE" (HSPB-80) AND 1120 NORTH VIA MIRALESTE KNOWN AS "THE GUEST HOUSE" (HSPB-81) ZONE R-1-B. STAFF MEMBER LYON summarized the staff OS

-- \. ) '- ~-{ RECEIVED MAY 12 2014 PLANNING SERVICES DEPARTMENT Bill Lewallen May 12, 2014 tv!. Margo Wheeler, J:AICP Department of Planning City of Palm Springs 3200 E. Tahquih: Canyon Way Palm Springs, CA 92262-6959 Dear Director Wheeler: I am the owner of 283 E. Twin Palms Drive in Palm Springs (Assessment Number 511070038-7), which is located in the Royal Hawaiian Estates. The Royal Hawaiian Estates became Palm Springs first Historic Residential District on J:ebruary 3, 2010. I am writing to apply for the Mills Act Tax Abatement Program. Enclosed is my check for $824.00 to begin the application process. Through the Mills Act economic incentives, I look forward to continue performing ongoing restoration and preservation of our historic Donald Wexler and Richard Harrison mid-century tiki-modern property. If you have any questions or need additional information, you may contact me at bill@royalhawaiianestates.org or 760-475-4561. Thank you for your help in this process. Sincerely, ~ (tjij~ 283 E. Twin Palms Dr. Palm Springs, CA 760-475-4561 07