HomeMy WebLinkAbout1996-02-12 City Council (13)TO:
FROM:
DATE:
City of Palo Alto
City Manager’s Report
HONORABLE CITY COUNCIL
CITY MANAGER
February12,1996
DEPARTMENT:
CMR:144:96
Planning
2
SUBJECT:Approval of a Historic Property Preservation Agreement between
the City of Palo Alto and the Owners of the Squire House, Located
at 900 University Avenue
t~QUEST
The owners of the historic Squire House, located at 900 University Avenue, request the City
to enter into a Historic Property Preservation Agreement, pursuant to the provisions of‘the
Mills Act of’the State of California (see Attachment 1 - Preservation Agreement).
RECOMMENDATIONS
The Historic Resources Board (HRB) recommends that the City Council approve the
attached Historic Property Preservation Agreement. The Historic Resources Board also
recommends that the City Council direct staff to establish a written policy, application
procedure and fee, but continue to process agreements prior to establishing a procedure.
Staff agrees with the HRB regarding approval of the attached agreement and the need to
establish a policy, procedure and fee. This assignment should be placed on the Planning
Department’s Work Program and prioritized by the City Council when the Work Program is
considered by the.Council.
BACKGROUND
On January 17, 1996, the Historic Resources Board (HRB) reviewed a request by the owners
of the historic Squire House, located at 900 University Avenue, for the City to enter into a
Historic Property Preservation Agreement, pursuant to the provisions of the Mills Act of the
State of California. The HRB voted 4-0-1-1 (Mario not participating; Kittas absent) to
recommend that the Council approve the agreement. The HRB advocated use of the Mills
Act as a means to encourage private preservation of all historic structures from large estates
to the smallest cottage.
POLICY IMPLICATIONS
The following Comprehensive Plan policies and programs apply to this request:
CMR:144:96 Page 1 of 5
Urban Design Element, Policy 2: "Encourage private preservation of buildings which
have historic or architectural merit or both."
Urban Design Element, Program 6: "Develop incentives for the retention and
rehabilitation of houses with architectural or historic merit in all zones."
Urban Design Element, Program 8: "Encourage and assist owners of buildings of
architectural or historic merit in applying for tax relief under federal and state
programs."
Urban Design Element, Program 10: "Encourage the rehabilitation of historic
buildings by providing for the preservation of the building facade when it is not
economically feasible to retain the whole building."
Approval of the proposed Historic Property Preservation Agreement complies with the
Comprehensive Plan policies and programs listed above. In addition to the existing exterior
facade easement, the Agreement provides incentive for private preservation of specific
interior elements, which have been identified by a historic inventory as original historic
elements or reproductions of elements removed or destroyed over time (Urban Design
Element, Policy 2). These elements include switch plates, decorative moldings, doors, and
fixtures located on the first floor, excluding the kitchen, and the original oak main staircase
up to the second floor. The elements contribute to both the architectural and historic merit
of the Squire House and are important to the context of the historic structure (Urban Design
Element, Program 6).
In compliance with Urban Design Element, Program 8, the Agreement allows the property
owners to apply for a reduction in property taxes under the Mills Act, in exchange for
increased preservation and public access to the building. In no way does the proposed
Agreement modify or otherwise lessen the restrictions of the current facade easement,
adopted on April 11, 1977, which preserves the exterior of the building in perpetuity (Urban
Design Element, Program 10) (see Attachment 2 - Facade Easement).
DISCUSSION
Preservation Agreement
The Squire House is currently listed on the Palo Alto Historic Inventory as a Category I
historic structure, and is registered as a California and National Historic Landmark. The
property is also subject to a locally controlled facade easement, which requires the Historic
Resources Board to approve all exterior changes prior to the issuance of a building permit.
CMR: 144:96 Page 2 of 5
Ernest and Mildred Mario, owners of the historic Squire House located at 900 University
Avenue, request the City to enter into a Historic Property Preservation Agreement, pursuant
to the provisions of State law (Government Code Section 50280 et seq., commonly referred
to as the "Mills Act"). The Mills Act allows a municipality to enter into a Property
Preservation Agreement with the owner of a qualified historic property, which provides
property tax relief in return for certain preservation restrictions. The California Preservation
Foundation considers the Mills Act to be "the most powerful financial incentive for the
preservation of Califomia’s historic built environment." The City currently has one Property
Preservation Agreement with the owners of the Juana Briones House, located at 4155 Old
Adobe Road.
Because of the comprehensive exterior preservation afforded by the existing facade
easement, staff requested the owner to prepare a historic inventory of the home’s interior to
determine what elements could be preserved as part of the Preservation Agreement. In
December 1995, the owners commissioned a photographic survey of the interior. The survey
establishes that many original elements remain, including wood panelin.g, moldings, doors,
and the main staircase. It also indicates that the owners have installed reproductions of many
of the elements that have been modified through the years, including the tile fireplace in the
living room, several light fixtures, bathroom fixtures and push button light switches. The
photographic survey will be presented at the Council meeting.
In return for the property tax relief afforded by the Mills Act, the owners have agreed to
preserve the interior of the first floor, excluding the kitchen, and the original oak main
staircase up to the second floor, in substantially the sarne condition as depicted in the
photographic survey. These interior elements contribute to both the architectural and historic
merit of the Squire House and are important to the context of the historic structure. The
Preservation Agreement would provide incentive to the current and future owners of the
Squire House to preserve the interior of the structure, which has been painstakingly restored.
In addition to preserving certain interior elements, the owners have agreed to open the Squire
House for an annual public tour, conducted by the owners or by a civic or historic
organization selected by the owners. They also have agreed to allow periodic examinations
by certain governmental entities of the interior and exterior of the property, to determine
compliance with the Preservation Agreement.
Mills Act Policy
As more properties become available for historic designation and the City increases efforts
to provide historic preservation incentives, it is likely that the City will receive more requests
to enter into Mills Act contracts. Candidates for future Mills Act contract requests include
downtown commercial buildings and Professorville homes. The City currently does not have
CMR: !44:96 Page 3 of 5
an established Mills Act policy, application procedure or fee for processing preservation
agreements. Significant staff time is involved in reviewing such a request and preparing an
agreement. Staff recommends that the City establish a written policy, application procedure
and fee prior to processing any future Mills Act contracts. An assignment to produce such
procedures should be added to the Planning Department’s Work Program and prioritized by
the City Council.
ALTERNATIVES
The Council can either approve the Agreement, which would be effective upon recordation,
or deny the Agreement, in which case the current facade easement would continue as the
prevailing preservation device.
FISCAL IMPACT
The Preservation Agreement would result in property tax relief for the property owners. The
Santa Clara County Tax Collector confirmed that property tax in the amount of$17,257 was
paid for the subject property in 1994. The City’s Finance Department estimates that
approximately 10 percent or $1,725 came back to the City as General Fund revenue.
If the Agreement is approved, the Santa Clara County Assessor will adjust the property tax
based on a formula established in the State Revenue and Tax Code. Using this formula, staff
has estimated that the adjusted annual property tax would range from approximately $2,500
to $4,000, resulting in an annual tax savings between $13,200 and $14,700 for the owners.
The City’s share of the adjusted tax revenue would range from approximately $250 to $400,
resulting in an annual reduction between $1,325 and $1,475. The loss of up to $1,475 of
annual revenue to the City would not be a significant fiscal impact.
ENVIRONMENTAL ASSESSMENT
Action on the proposed Preservation Agreement is categorically exempt from the provisions
of the California Environmental Quality Act pursuant to Article 19, Section 15 3 0 8, Actions
by Regulatory Agencies for Protection of the Environment.
,STEPS FOLLOWING APPROVAL
If approved by the Council, the Agreement would be recorded in the Office of the Santa
Clara County Recorder on or before March 1, 1996.
ATTACHMENTS
1.Proposed Historic Preservation Agreement
2.Facade Easement
CC:Ernest and Mildred Mario, 900 University Avenue, Palo Alto
Guy Blase, 356 Coleridge Avenue, Palo Alto
CMR:144:96 Page 4 of 5
PREPARED BY: Joseph M. Colonna, Senior Planner
DEPARTMENT HEAD REVIEW:
KENNETH R. SCHREIBER
Director of Planning and
Community Environment
CITY MANAGER APPROVAL:
Assistant City Manager
CMR: 144:96 Page 5 of 5
1 - Proposed Agreement
This document is recorded
for the benefit of the City
of Palo Alto and is entitled
to be recorded free of charge
in accordance with Section 6103
of the Government Code.
After Recordation, mail to:
OFFICE OF THE CITY ATTORNEY
250 Hamilton Avenue
Palo Alto, CA 94301
HISTORIC PROPERTY PRESERVATION AGREEMENT
[Government Code section 50280]
THIS AGREEMENT is made and entered into this day of
, 1996, by and between ERNEST MARIO and MILDRED M.
MARIO ("Owners") and the CITY OF PALO ALTO, a chartered city and
California municipal corporation ("City").
RECITALS
A. Owners possess certain real property located in the
City of Palo Alto, Santa Clara County, California, commonly known
as 900 University Avenue and described in Exhibit "~’ attached
hereto (i’Property"), which contains the historic residential
structure known as the Squire House and which, as hereinafter set
forth, is a "qualified historic property" as defined in Government
Code section 50280.1.
B. The predecessor of the Owners, CONSTRUCTION SYSTEMS,
INC., and the City entered into an Agreement dated Apri! !I, 1977,
entitled "GRANT DEED, RESERVATION OF FACADE EASEMENT, AND
DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS" (hereinafter
called "Easement"), which was filed for record in the Office of the
Santa Clara County Recorder at Book C 793 Page 612 and which is
binding on Owners and the City and remains in full force and
effect.
C. Owners and City desire to protect and preserve the
Property in a manner which retains its characteristics of
historical significance.
D. Owners have requested ~that City enter into an
historical property agreement with respect to the Property, in
consideration for which Owners will agree to perform certain new
obligations with respect to the Property.
NOW, THEREFORE, the parties in consideration of the
mutual covenants and conditions set forth herein and the
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960201 lac 0080198
substantial public benefit to be derived therefrom, do agree as
follows:
SECTION 1 -AUTHORITY
This Agreement is made and executed pursuant to Article
12 (commencing with Section 50280) of Chapter 1 of Part 1 of
Division 1 of Title 5 of the Government Code. This Agreement
establishes that the subject property is a qualified historic
property under Government Code section 50280.1, in that it has been
designated as an historic landmark by the City pursuant to Chapter
16.49 of the Municipal Code, is State of California Historical
Landmark No. 857, and is listed on the National Register of
Historic Places. This Agreement does not affect or alter the
validity and full force in effect of the Easement.
SECTION 2 - TERM OF AGREEMENT
This Agreement shall be effective as of the date of
recordation, and shall remain in effect unti! March i, 2006. Such
term will automatically be renewed on its Renewa! Date as provided
in Section 5 of this Agreement.
SECTION 3 LIMITATIONS ON LAND USE
In addition to the limitations of the Easement, during
the term of this Agreement, the Property shal! be subject to the
following provisions, requirements, and restrictions:
(a)Owners shall preserve and maintain (i) the first
floor interior of the Squire House, excluding the
kitchen, and (2) the original oak main staircase up
to the second floor, in substantially the same
condition as depicted in the photographic inventory
dated December, 1995, and entitled "Squire House
Chronicle." Owners shall also, when necessary,
restore and rehabilitate these elements of the
Property according to the rules and regulations of
the Office of the Historic Preservation of the
State Department of Parks and Recreation.
(b)Owners shall provide whatever information shall be
required by City to determine the Property’s
continuing eligibility as a qualified historic
property.
(c)Owners shall, on an annual basis, open the
Property, including the interior of the Squire
House, to a public tour conducted by Owners or by
a civic or historic organization selected by
Owners.
(d)Owners shall provide for such periodic
examinations, by appointment, of the interior and
exterior of the Property by the County Assessor,
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960201 lac 0080198
the State Department of Parks and Recreation, the
State Board of Equalization and City, as may be
necessary to determine Owners’s compliance with
this Agreement.
SECTION 4 RECORDATION; WRITTEN NOTICE
On or before March I, 1996, City shall record an executed
copy of this Agreement in the Office of the Santa Clara County
Recorder. Owners shal! provide written notice of this Agreement to
the Office of Historic Preservation within six (6) months of
entering into this Agreement.
SECTION 5 - RENEWAL
On March i, 1997, and on March 1 of each year thereafter
("Renewal Date"), one (i) year shal! be automatically added to the
initial term of this Agreement, unless notice of nonrenewal is
given as provided in this Section. If either Owners or City desire
in any year not to renew the Agreement, such party shall serve
written notice of nonrenewal of the Agreement on the other party in
advance of the Renewa! Date. Unless such notice is served by
Owners to City at least ninety (90) days prior to the Renewal Date
or by City at least sixty (60) days prior 5o the Renewal Date, one
(I) year shall automatically be added to the term of this
Agreement. Upon receipt by Owners of the notice of nonrenewal from
City, Owners may make a written protest of the notice. City may,
at any time prior to the Renewal Date, withdraw its notice to
Owners of nonrenewal. If either City or Owners serves notice to
the other of nonrenewal in any year, the Agreement shall remain in
effect for the balance of the term remaining since its original
execution, or since the last renewa! of the Agreement, whichever
the case may be.
SECTION 6 -CANCELLATION
City may cancel this Agreement if it determines,
following a noticed public hearing, that Owners have breached any
of the conditions of the Agreement or have allowed the property to
deteriorate to the point that it no longer meets the standards for
a qualified historic property. City may also cancel this Agreement
if it determines that Owners have failed to restore or rehabilitate
the property in the manner specified in Section 3 of this
Agreement. As an alternative to cancellation of the Agreement for
breach of any condition, the City shall pursue all available lega!
remedies to seek enforcement of the Agreement, including bringing
a court action to enforce the Agreement by specific performance
and/or injunctive relief.
SECTION 7 - ATTORNEYS’ FEES
The prevailing party in any action to interpret or
enforce this Agreement shall be entitled to recover its reasonable
attorneys’ fees.
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960201 lac 0080198
SECTION 8 - NOTICE
All notices hereunder shall be given in writing and
mailed, postage prepaid, by certified mail, addressed as follows:
To City:Office of the City Clerk
250 Hamilton Avenue
Palo Alto, CA 94301
To Owners:Ernest and Mildred M. Mario
900 University Avenue
Palo Alto, CA 94011
SECTION 9 BINDING
This contract shall be binding upon, and inure to the
benefit of, al! successors in interest of Owners. A successor in
interest shall have the same rights and obligations under this
Agreement as Owners.
IN WITNESS WHEREOF, CITY and OWNERS have executed this
Agreement the day and year first above written.
ATTEST:CITY OF PALO .ALTO
City Clerk Mayor
APPROVED AS TO FORM:
Senior Asst. City Attorney
Attachment:
Exhibit "A": Property Description
4
960201 bte 0080198
CERTIFICATE OF ACKNOWLEDGMENT
(Civil Code § 1189)
STATE OF CALIFORNIA
COUNTY OF SANTA CLARA
)
)
)
On February 5~ 1996 , before me, Patricia A. Cross a
notary public in and for said County, per~l~ appeared ERNEST
MARIO, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose name is subscribed to
the within instrument, and acknowledged to me that he executed the
same in his authorized capacity, and that by his signature on the
instrument the person, or the entity upon behalf of which the
person acted, executed the instrument.
WITNESS my hand and official seal.
5
960201 lae 0080198
CERTIFICATE OF ACKZqOWLEDGMENT
(Civil Code § 1189)
STATE OF ~~)))
notary public in ~nd’for said County, persbnail~ a~pear~ MILDRED
M. MARIO, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose name is subscribed to
the within instrument, and acknowledged to me that she executed the
same in her authorized capacity, and that by her signature on the
instrument the person, or the entity upon behalf of which the
person acted, executed the instrument.
WITNESS my hand and official seal.
PATRICIA A. CROS~
Commis~on #1077415
Notary Public Colifomla--,Santa Cla:a County
6
960201 lac 0080198
EXHIBIT
All that real property commonly designated by street
address as 900 University Avenue, Palo Alto, Santa Clara County,
California 94301, and more particularly described as follows:
Beginning at the Westerly corner of Lot I,
Block 67 as shown on that certain map entitled
"University Park" recorded on February 27, 1889
in Book "D" of Maps at page 69, records of
Santa Clara County, California, said point
also being the point of Intersection of the
Northeasterly line of Seneca Street with the
Southeasterly line of University Avenue;
thence N. 38° 05’ E. along said Southeasterly
line 200.00 feet; thence leaving said
Southeasterly line S. 51° 55’ E. 200.00 feet;
thence S. 38° 05’ W. 200.00 feet to a point on
said Northeasterly line of Seneca Street;
thence N. 51° 55’ W. along said last named
line 200.00 feet to the point of beginning,
containing 0.918 acre, more or less, and being
a portion of said Lot i.
960201 lac 0080207
2 - Facade Easemen
THIS AGI~EMENT is made by and between the CITY OF PALO ALTO,
a municipal corporation of the State of California, hereinafter
referred to as "City," and CONSTIIUCTION SYSTEMS, INC., a California
corporation, wi~ offices at 1499 Stierlin Road, t~untain View,
California, hereinafter referred to as "Grantee";
W I T N E S S E T H:
WI~EKEAS, as of the date hereof, cITY is the owner of certain
real property, including all improvements located thereon, in the
City of Palo Alto, County of Santa Cla~a, State of Califo~--nia,
which property is commonly designated by street address as
900 University Avenue, and is more particularly described in the
document attached hereto, designated as E:~ibit "A", and incor-
porated by reference as though fully set forth herein, all of
which is hereafter referred to as the "property"; and
WHEP~, situate on the property there is a house commonly
known as "~e Squire House," which was constructed in 1905, is
of historical and architectural significance, and, together with
the land upon which it is situated, is an historical and archi-
tectural site worthy of perpetual preservation; and
WHEREAS, the land surrounding the Squire House has affixed
thereto a stand of twenty-five (25) large palm trees, one (i)
speciman oak tree, and two (2) specimen redwood trees, the pre-
servation of which enhances the historical and architectural aspects
of the Squire House; and
%~{EREAS, the past tendency to destroy old, graceful and
traditional architecture and to build in its place often grace-
less, even if contemporarily popular, architecture is being
replaced in the Palo Alto community by an increasing appreciation
of the value of retaining the richness of our heritage; and
WHEREAS, it is the intent of CITY, amd the desire of GP!@ITEE,
to preserve and maintain the property in a physical condition which,
as nearly as reasonably possible, would resemble its original
character as a single-family dwelling in a formal estate setting;
NOW, THEREFOP~, in recognition of the foregoing and for
valuable conslderat~on, receipt of which hereby is acknowledged,
CITY grants and conveys to GRANTEE title tothe property, re-
serving therefrom a perpetua~ facade easement in gross in the
property, hereinafter referred to as the "easement," which
easement includes and is subject to the covenants, conditions,
and restrictions that follow°
The CITY reserves an interest in the property consisting
of the benefit of the following affirmative and negative cove-
nants, conditions, and restrictionsz
!i) Building. G~NTEE shall not, without the prior written
approval of CITY, undertake or permit, directly or indirectly,
any destruction, construction, alteration, remodeling, or painting,
or do or permit, directly or indirectly, any other thing which
would ~aterial!y affect the exterior a~pearance, including the
roof, or public view of the Squire House as depicted in the
photographs, the plot plan, and other doc~n~ents attached hereto,
_designated as Ey~ibit "B", and incorporated by reference as though
fully s~t_ fo~_b~rein...
(2) Histerlcal Desisnation Monument. GRanTEE shall not,
without the prior written approval oi CITY, undertake or permit,
directly or indirectly, the remova!, destruction, alteration, or
movement of the monument which has attached to it the historical
designation plaque is depicted in said Exhibit ~’B". The written
approval required to be obtained from CITY hereunder may be given
by the City ~anager of CITY or his/her authorized representative
for t2~e movement of the monument to an alternate location on the
Squire ~ouse property at the expense of GR,~TZE and under the
supervision of CITY.
(3) Trees. G~d~TEE shall not, without the prior written
_approval o~Y, undertake or permit, directly or indirectly,
~nny removal, destruction, alteration, or major pruning, or do
or pezn?.it, directly or indirectly, any other thing which would
materially affect ~he appearance, health, or public view of the
aforesaid palm trees, o~[ tree, and redwood trees, as depicted
±n the plot plan, attached hereto, designated as Exhibit "C", and
incorporated by reference as though fully set forth herein. The
written approval required ~o be obtained from CITY hereunder ~ay
be given by ~:e City Manager of CITY or his/her authorized rep-
resentative for ~he pruning or health maintenance of ~%e trees,
.the removal of diseased trees, and installations, construction,
and repairs on ~%e property which might affect said trees but
-not the Squire House.
(4) . Maintenance and Rep~iro GRA}~TEE at all times shall
maintain ~%’e property in a Sa~e, good, and sound state of repair
and shall take all reasonable action so that minima! deteriora-
tion in its present exterior appearance, as depicted in said
~xhibit "B" and Exhibit "C", and any improvements and repairs
thereto shall take place. G~T~E agrees to save and hold harmless
CITY, its em~ployees, officers, agents, and assigns from any and all
liability, including costs and attorneys fees, arising out of
GKAI4TEI:’s failure to properly maintain the property as required
hereunder.
(5) Insurance. GRANTEE at all times and at his sole cost
and ~x~ensu snnll maintain and keep in force a standard
insurance Folicy, }’ore 3, or equivalent coverage on the property
such as a standard fir~: insurance policy with extended coverage,
the d~:,_-lling :;~ucial fob-m, with ~ insuronc,: cor[~6n~, rated by
L,~st’s a~ ,., ,,~A or cetter. ,~i~e ~quire ~ou~e and i9~provc~cnts
shall be insured ~or no le~s ~an its replacen~ent or reconstruction
co~t at thu tJ.~,u of l~ss. L:nid rcp!actn~ent cr reconstruction cost
~cc~ns re[.lace:r.ent~r rccenstruction to ~e original character and
~chitectural integrity of the Squire }~ouse as it may be improved
from tibia to tinge.
The City of Palo Alto shall be n~..ed as an additional insured
under the above-specified insurance policy.
A certificate of said Property Insurance shall be filed with
the City Clerk of CI%’Y concurrently with the execution of this
agreen~ent or within ten (i0) days thereafter.
A certified copy of said policy will also be filed with the
City Clerk of CITY ~ithin thirty (30) days of the execution of
this au_reement.
Said certificate andpolicy shall be subject to the approval
of the City Attorney of CITY. Current certificates and policies
of insurance shal! be kept on file with the City Clerk of CITY
during the entire duration of this agreement.
(6) Restoration. In the event of any daE~age to, or de-
struction of, any part of the property adversely affecting,
directly or indirectly, the interest in the property reserved
by CITY:
(a) GRAY,TEE shall immediately notify CITY in writing
of such damage or destruction.
(b) GR~U~TEE shall purshe in a timely manner all avail-
able claims and ren~edies against any insurance policy covering,
and against any person or entity responsible for, the damage or
destruction.
(c) GFJ~TE~ shall use any money or other thing de-
rived from any such claim or remedy to restore the dama~ed~or
destroyed part of the property adversely affecting CITY’s
interests therein as soon as possible to its pre-existing con-
dition and architectnral integrity, subject to the required
prior written approval of CITY, as specified above.
(7) ~n.~r~. b[ CI~Y. CITY shall have the right to enter
upon the prope~-tl.., including any structure thereon, after rea-
sonable prier notice to GR/~TEE, at all reasona!~le times in
order te inspect the same and to exercise any or al! of its
rights herein.
(8) Subdivision. The property shall not be subdivided.
(9) Industrial, Com~:ercial, Mining, or Drillino ~ctivities.
Regardless oi the zooming of th~ property, no inddstr’i’ii, co.~.ercial,
mining, or drilling activities shall be carried out upon the pro-
perty without the prior ~ritten approval of CITY for each such
Fro[.osed nc~¢ or different activity.
I
(i0) Improvemcnt_a_nd~e___~ai___r bv City. CITY shall have the
right, but not 5h~ O~2~l~latlOll, to’’"[~ak~.. ’~h,provements or repairs
to t!~c propurty, including the Squire house, and all otl~or
structures and fixtures thereon, to preserve and enhance the
property’s historical a.~d a~chitectural authenticity and to
retain and n~Intain as nearly as possible ~le original character
of the propert/~.
(ii) Additional Structures and Planting. ~o structures in
addition to ~e existing ~nes, in~"lU’d’ing’"~"~cing, shall be con-
structed or erected on ~he property without the prior written
approval of CITY. ~o plantin~ shall significantly obstruct the
~iew of the. Squire House from adjacent streets and sidewalks°
NATURE ~D DUKATIOI:
The covenants, conditions, and restrictions contained herein
constitute a binding equitable servitude upon the property, in
perpetuity, and shall run with the land and shall be binding on
all parties having or acquiring any right, title, or interest in
the property or any part thereof, including agents, personal
representatives, mortgagees, heirs, assigns, and all other successors
in interest, and shall inure to ~he benefit of CITY, its successors,
and assigns.~- GRANTEE agrees that the covenants, conditions, and
restrictions contained herein will be inserted in any subsequent
deed or other legal instrument by which GPeANTEE divests hlmself/
herself of either fee simple title to, or of any other possessory
interest in, the property.
III
REMEDIES
In the event GRAY, TEE violates any provision hereof, CITY
Shall have available such legal and equitable remedies as are
provided by law to enforce the obligation or obligations of
GRA/4TE~ hereunder and, in addition ~hereto and as an alternative,
at the sole option and discretion of CITY, CITY may enter upon
~he property and any structure thereon to correct any violation
and hold G~TE~ responsible for the cost thereof after thirty days’
written notice to G~q~TEE to cure the violation and failure by
GRANTEE to so cure ~he violation. Said costs shall be deemed
to be an assessment.
IV
LIEN FOR ASSESSED COSTS
(1) Creation of Lien and Procedure. Each of such costs
assessed pursuant to Article III hereof shall be a separate
and distinct debt and obligation of GRANTEE. The amount of any
assessment,including interest at the rate of nine and one-half
.percent (9-1/2%), and costs, including reasonable attorneys’ fees,
shall be a llen upon the property, and GRId4TEE hereby expressly
grants to CITY and its assign or assigns a continuing lien against
the property to secure the pay~.ent to CItY and its assign ~r
assigns of any and el! such assessments which may be ~:ndc from
time to time. As such assessments are made against GR~4TEE, CITY
-4-
shall cause tc be recorded with the county recer,lcr of the County
of ~anta Clara a notice, of asse:~,=~:ent, ~-~hich shall state
amount cf such asccns:~cnt and such other chnr[:es thc~-eon, a des-
cription of the property, and the name of the record o~ner or
o~nel-s ther_~of. Suci~notice shall be signed by the city :~anager
of CITY or his/her authorized representative. Upon payment of
such assessment and charges in connection %;ith which such notice
has been so recorded, or other satisfaction thereof, the City
Manager of CITY or his/her authorizcd representative shall cause
to be recorded a further notice stating the satisfaction and re-
lease of the lien assessment thereof. Except as provided herein,
such 6ontinuing lien shall be prior to all other liens and en-
cun’~rances recorded subsequent to the recordation of this document
unless CITY and G}~J~TEE agree to the subordination thereof to
other liens and encurJorances.
(2) Alternative Creation of Lien. If it shcu!d be deter-
mined by a tourt, b3- 3’udicial’precedent, or otherwise that the lien
granted hereunder cannot attach to ~he ~roperty until the ~aount
of the particular assessment is ascertained or that the lien is
otherwise invalid or void, ~hen the parties agree that a separate
lien shall attach to the pro2erty and come into being upon recorda-
tion efa notice of assessment as provided herein and that each ofsu6h liens shall be prior to all other liens and enc~brances
recorded subsequent to the recordation of said notice of assessment
unless CITY and G~TEE agree to the subordination thereof to
other liens and encumbrances.
(3) Foreclosure. With the prior approval of the Council of
CITY, any suc~ lien ~ay be foreclosed by an appropriate action in
Court or in the manner provided by law for the foreclosure of a
mortgage under power of sale. Any action in Court brought to
foreclose such a lien shall be commenced within two (2) years fol-
lowing such recordation. In the event the foreclosure is under a
power of sale, as in the case of a mortgage, the City Manager of
CITY or his~er authorized representative or the assign or assigns
of CITY shall be deemed to be acting as the agent of CITY, and
CITY or its assign or assigns, as the case may be, shall be en-
titled to actual expenses and such fees as may be al!owed by law
or as ~ey be prevailing at the time the sale is conducted.
(4) Sale. Such sale shall be conducted in accordance with
the provis~ of law applicable to the e~:ercise of powers of
sale ~d mortgages and deeds of trust, or in any other manner
permitted by law. With d~e prio:: approva! of the Council of CITY
the certificate of sale ~;ay be.executed and acknowledged by the
City Manager of CITY or by the person conducting the sale. A
deed upon the Court’s foreclosure shall be executed in a like
manner after ~e lapse of the period of redemptio9 then required
by statute.
(5) Other Liehs. No provision hereof respecting the
creation of a contractual lien shall in any way be construed
as limiting or waiving any right of CITY to assert any statutory
or other lien that may be available to it.
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V
(I) Subordination As[recment. Notwithstanding all other
provisions nu..t~n, t~.~ li~n ~z .,.~..o, as the case r..ay be, created
under Article IV hereof on the property shall be subject and
subordinate to, and shall not affect the rights cf the holder
of the indebte~ness secured by any recorded first mortgage
(meaninq a mortgage with first priority over other mortgages)
upon such interest made in go~d faith and for value, provided
that t!~ere is no outstanding recorded notice of assessment
pursuant to Article IV hereof. If there is any outstanding
recorded notice of assessment prior to a first mortgage,
then the amount of the lien shown on t~he notice or notices
of assessr~.ent shall be senior to .the interest of the mortgagee,
but othez~.,ise any further right of CITY to lien pursuant to
Article IV shall be subordinate to such mortgagee. After the
foreclosure of e_ny such mortgage, there is, or may be, as the
case ~.~., be, a lien created pursuant to Article IV hereof on the
interesi~ of the purchaser at such foreclosure sale to secure al!
assessments assessed hereunder to such purchaser as a GP~I~TEE
after the date of such foreclosure sale, which said lien, if any
claimed, shall have the sa~..e effect and be enforced in the same
manner as provided herein.
(2) @~endment. No e~endment of this Article shall affect
the rights o~~~ %older of any such mortgage recorded prior to
the recordation of such amendment who does not join in the execution
thereof.
SEPARABILITY
The provisions hereof shall be deemed to be independent
and severable, and the invalidity or partial invalidity or
unenforceabi!ity of any one provision or portion thereof shal!
not affect the validity or enforceability of any other provision
hereof.
VII
INTERP RETATION
The provisions hereof shail be liberally construed to
effectuate ~he purposes recited her~in. Failure to enforce any
provision hereof shall not constitute a waiver of the right to
enforce said provision or any othor provision hereof,
VIII
NOTICES
Any and all notices or other conm~unications required or
permitted hereunder or by law to be served on or given to either
party hereto by the other party hereto shall be in ~.’riting and
shall be deemed duly served and given when deposited in the
United States m~il, fire, t-class postage [,repnid, addre~_~sed to
GRAY,TEA at t~he address of the property or to CITY, in care of
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the City Clrrk, Civic Center, 25~ ’[a::ilton Avenue, Palo A!to,
California [,4301. Eithcr party ~:a}’ chan?c their addrc:ss for
the purpose of this Article by giving written notice of such
change to the other party in t~hc manner provided in this
A/ticle.
IX
TINE OF I]SSE~CE
Time is expressly declared to be-t/he .-essence of this agree-
COSTS /g~D ATTOP~;EYS’ FEES
The prevailing party in any action brought to enforce the
terms of this agreement or arisin~ out of this agreement may
recover its reasonable costs and attorneys’ fees expended in
connection with such an action from the other party.
. IN WIT~IESS UHEREOF, CITY has caused its name and seal to
be affixed hereto and this instrtLv, ent to be exe.suted ~y its
duly authorized officer ~’is" /Idi~ day of ~d~
1977. ’ .........I
CITY PALO ALTO
City
/~. nioriAsaisuantCity ~ttorney
~ta££ ~rvice~
"7--
On .__~,,~.6~// // , 1977,~before me, the undersigned,
a ~{otary Pu~!ic in and for said State, [~ersonally appeared
of th~ City of ~alo ~.Ito, and known to r.e to be the ?ei-~}/{.?k?6--
executci ~;e within instrument on behalf of ~e City cf Pale Alto
~ ackn~,:ludged to ne that he s~scribc~ the name of the City of
Pale Alto as ~/ for said City of Pa!o Alte.
WIYN~SS my hand and official seal.
4otary P~.U Zi c
Acc~-u)ted and agreed to by GIL~NTEE thisAPRIL, 1977.
29th day of
CONSTR~C’i’ION SYSTEMS, INC.
STATE OF CALIFOPd~IA
COUhTY OF S~44~A CLAIrn.: ss
On APRIL 29th , 1977, before me, the undersigned,
a Notary Publ-i-~-~n ~nd for s-~d State, personally appeared
WILLIAM D. COX , known to n:e to be the ~ p~v.~r~m
of the corporation_ . that executed the within instruDent on bena!r
of tale corporation tLerein named, and acknc~ledged to me that such
corporation executed the s~.me pursuant to its bylaws or a resolu-
tion of its Board of Directors.
WITNESS my hand and official seal.
Notary Pnblic
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