San Jose Municipal Code Part 4 Historical Property Contracts

The purpose of this part is to establish a procedure for the administration of historical property contracts pursuant to Section 50280 et seq. of the California Government Code, as amended, known as the California Mills Act of 1972.

(Ords. 23651, 29098.)

A. An owner of property which has been designated a city landmark or is pending a city landmark designation pursuant to Part 2 of this chapter ("landmark property") may request that the city enter into an historical property contract concerning the pending or designated landmark property. The request shall be made by filing an application with the director of planning. All owners of the pending or designated landmark property must sign the application.

B. No application shall be accepted for filing unless an application fee in the amount established by resolution of the city council in the schedule of fees is paid to the director of planning at the time such application is filed.

C. An application must include a legal description of the pending or designated landmark property, an explanation of the manner in which the proposed contract will promote the preservation and, if necessary, the restoration and rehabilitation of the landmark property, and such other information as the director of planning may require in order to evaluate the application.

D. An application for an historical property contract may be filed at any time; however, the city council's final action on the proposed contract shall not occur until and unless a pending city landmark designation has first been approved by the city council.

(Ords. 23651, 29098.)

After receipt of a complete application for a historical property contract, the owner of the landmark property shall allow city to inspect the interior and exterior of the landmark property to determine with the owner the specific conditions of the landmark property requiring preservation, restoration and/or rehabilitation to conform to the rules and regulations of the office of historic preservation of the California Department of Parks and Recreation, the United States Secretary of the Interior Standards for Rehabilitation, the California State Historical Building Code, and the requirements of the city.

(Ord. 29098.)

A. Each historical property contract shall include all of the following:

1. A description of the landmark property subject to the contract;

2. A provision that the term of the contract is a minimum period of ten years;

3. Specific conditions requiring preservation of the landmark property and, where appropriate, restoration and rehabilitation of the landmark property to conform to the rules and regulations of the office of historic preservation of the California Department of Parks and Recreation, the United States Secretary of the Interior Standards for Rehabilitation, the California State Historical Building Code, and the requirements of the city;

4. Provision for the periodic examination of the interior and exterior of the landmark property by the City of San José and the County of Santa Clara as may be necessary to determine the owner's compliance with the contract, which periodic examination shall occur at least five years after the effective date of the original contract and then at least every five years thereafter;

5. A requirement that the property owner(s) annually expend an amount equal to a minimum of ten percent of the tax savings attributed to this contract to the preservation and maintenance of the landmark property, and make this documentation available to the City of San José at the time of the periodic examination described above;

6. A provision that the contract is binding upon, and shall inure to the benefit of, all successors in interest to the owner(s); and that a successor in interest shall have the same rights and obligations under the contract as the original owner(s) who entered into the contract; and

7. A provision requiring the owner or an agent of the owner to record the contract with the Santa Clara County recorder's office within six months of the effective date of the contract if the contract was not recorded pursuant to the provisions of Section 13.48.530F. below

B. An historical property contract may contain such other provisions as the city council deems appropriate to ensure the preservation of the landmark property.

(Ords. 23651, 29098.)

A. Every application for an historical property contract shall be considered by the historic landmarks commission at a public hearing. The director of planning shall, subject to the rules of the commission, set a date for the hearing. Notice of the commission's hearing on the historical property contract shall be given in the manner set forth in Section 13.48.110 of this chapter.

B. After such public hearing, the historic landmarks commission shall recommend to the city council approval, disapproval or conditional approval of the historical property contract.

C. The director of planning shall submit to the city clerk a copy of the completed application together with a copy of the director's report to the city council thereon, including the recommendations of the historic landmarks commission. Upon receipt thereof, the city clerk shall set the application for public hearing by the city council. The hearing shall be set not less than ten nor more than sixty calendar days after the clerk receives the director's report. Notice of the hearing on the historical property contract shall be given in the manner set forth in Section 13.48.110 of this chapter.

D. At the conclusion of the public hearing, the city council shall determine whether or not to adopt a resolution approving an historical property contract for the property which is the subject of the application.

E. When a resolution approving an historical property contract has been adopted by the city council, the city clerk shall promptly notify the owner(s) of the landmark property subject to the contract by mailing to them a certified copy of the resolution of the council. The clerk shall also send a certified copy of said resolution to the director of planning.

F. No later than twenty days after the city enters into an historical property contract the city clerk shall record with the county recorder a copy of the contract.

(Ords. 23651, 29098.)

The city council may, but under no circumstances shall be required to, approve an historical property contract if and only if the following findings are made:

A. The proposed contract is consistent with the city's general plan;

B. The proposed contract would provide greater protection for the landmark property than is otherwise provided by the provisions of Chapter 13.48 of the Municipal Code; and

C. The proposed contract complies with the requirements of Section 13.48.520.

(Ords. 23651, 29098.)

A. Each historical property contract shall provide that on the anniversary date of the contract, or such other annual date as is specified in the contract, a year shall automatically be added to the initial term of the contract unless notice of nonrenewal is given.

B. In order to avoid automatic renewal of the contract, the owner(s) must serve written notice of nonrenewal to the city's director of planning at least ninety days prior to the renewal date.

C. If the city council determines not to renew the contract, it must serve its written notice of nonrenewal upon the owner(s) at least sixty days prior to the renewal date. The owner(s) may make a written protest of the City of San José's notice of nonrenewal and the city may at any time prior to the renewal date, rescind its notice of nonrenewal.

D. If the city or the owner(s) serve a notice of nonrenewal, the existing contract shall remain in effect for the balance of the contract period then remaining.

(Ords. 23651, 29098.)

The director of planning shall report to the council and the historic landmarks commission any notice of nonrenewal of an historical property contract received from a landmark property owner. The director shall record the notice of nonrenewal and file a copy with the assessor of Santa Clara County.

(Ords. 23651, 29098.)

A. The city shall cancel any historical property contract, or bring any action in court necessary to enforce the contract (including without limitation an action to enforce the contract by specific performance or injunction), if the city council determines that the owner has:

1. Breached any of the conditions of the contract;

2. Allowed the property to deteriorate to the point that it no longer meets the standards for a qualified historical property; or

3. Failed to restore or rehabilitate the property as specified in the contract.

B. A public hearing shall be held by the city council on a proposed cancellation. Notice of the hearing shall be mailed to the last known address of each owner of the landmark property and shall be published pursuant to Government Code Section 6061.

C. If a contract is cancelled, the owner(s) shall pay the cancellation fee established in the Government Code.

(Ords. 23651, 29098.)

The same procedure required by this part for approval of an historical property contract shall be used to amend the contract.

(Ords. 23651, 29098.)