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HomeMy WebLinkAbout2022-11-08; City Council; ; Adoption of Ordinance CS-438 Amending Title 2, Chapter 2.42 Historic Preservation Commission and Title 22 Historic PreservationCA Review CKM Meeting Date: Nov. 8, 2022 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Faviola Medina, City Clerk Services Manager Faviola.medina@carlsbadca.gov, 442-339-5989 Subject: Adoption of Ordinance CS-438 Amending Title 2, Chapter 2.42 Historic Preservation Commission and Title 22 Historic Preservation District: All Recommended Action Adopt Ordinance CS-438 amending Carlsbad Municipal Code Title 2, Chapter 2.42, Historic Preservation Commission, and Title 22, Historic Preservation. Executive Summary/Discussion The City Council directed staff on Oct. 19, 2021, to develop and return with a local Mills Act program for City Council consideration. The Mills Act is a state law that gives cities the authority to enter into contracts with owners of qualified historic properties under which they receive property tax relief in exchange for restoration and maintaining the properties. In addition to the Mills Act program, staff are proposing various amendments to the city’s historical preservation ordinance – contained in Title 22 of the Carlsbad Municipal Code. As part of this effort, staff took the opportunity to clarify and simplify the regulations to improve code readability and implementation as well as clarify the roles and responsibilities of the Historic Preservation Committee. This work has resulted in a major overhaul to Title 22 and Chapter 2.42. Ordinance No. CS-438 was introduced and first read at the City Council meeting held on Oct. 18, 2022. On a motion by Mayor Pro Tem Blackburn, seconded by Council Member Bhat-Patel, the City Council voted 5-0 to introduce Ordinance No. CS-438 with amendments that have been incorporated into Exhibit 1. The second reading allows the City Council to adopt the ordinance, which will become effective 30 days after its adoption. Fiscal Analysis The existing fiscal year 2022-23 budget includes sufficient funding for the cost of amending Carlsbad Municipal Code Chapter 2.42 and Title 22. The city contracted with Delcamp Preservation & Planning in 2021 to perform these professional services and help develop the Mills Act Program at a not-to-exceed price of $40,000. The city is unable to determine the exact fiscal impact of a local Mills Act program. However, the Mills Act program can greatly reduce the assessed value of historic properties and thereby Nov. 8, 2022 Item #5 Page 1 of 15 reduce the owner’s property taxes. In return, the city benefits from the preservation of important historic or cultural resources. Both the City of Carlsbad and the Carlsbad Unified School District receive property tax revenue through the San Diego County Assessor's Office. The exact proportions of tax revenue vary based on the tax assessment district of a specific parcel, but the proportion can be generally estimated at 10-12 % of the 1-1.1 % general tax levy for an individual property, as a pro-rata share for the city. So, it is anticipated that the annual tax loss to the city would range from several hundred to $2,000 for each Mills Act property. Each property is unique, so there are no clearly comparable “before” and “after” aggregated tax assessment revenue projections to share. But in general, inflation of real estate prices and California’s Proposition 13 system, under which properties are reassessed to market value only at change of ownership, mean that new owners are likely to benefit much more than long-term owners. Direct budget implications in future years would also include staff resources and/or other direct expenses to support the implementation of the Historic Preservation Ordinance and Mills Act. These costs could be offset by Mills Act application fees. City staff have analyzed the work effort required to process applications, conduct inspections (during application review and every five years thereafter), and appropriately track and monitor the status of properties listed in the local register. If the proposed ordinance is adopted, staff will return to the City Council with proposed fees to recover some of the costs of the program. Next Steps The City Clerk Services Manager will have the ordinance, or a summary of the ordinance, published in a newspaper of general circulation within 15 days following adoption of the ordinances. Environmental Evaluation The activity related to the proposed amendment to Chapter 2.42 and Title 22 is categorically exempt from further environmental review in accordance with the California Environmental Quality Act Guidelines Section 15308 - Actions by Regulatory Agencies for Protection of Natural Resources and CEQA Guidelines Section 15331 - Historic Resource Restoration/Rehabilitation because the action is intended to clarify and improve upon current historic preservation policies and programs. On a separate and independent basis, the project also qualifies for the “common sense” exemption, covered by the general rule under CEQA Guidelines Section 15061(b)(3) because it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Public Notification This item was noticed in keeping with the state's Ralph M. Brown Act and it was available for public viewing and review at least 72 hours before the scheduled meeting date. Exhibits 1.Ordinance No. CS-438 Nov. 8, 2022 Item #5 Page 2 of 15 Exhibit 1 ORDINANCE NO. CS-438 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING CARLSBAD MUNICIPAL CODE TITLE 2, CHAPTER 2.42 HISTORIC PRESERVATION COMMISSION AND TITLE 22 HISTORIC PRESERVATION WHEREAS, in 1985 the City Council adopted Ordinance 9776 amending the Carlsbad Municipal Code by adding Title 22 regarding historic preservation and creating a Historic Preservation Commission for the City of Carlsbad; and WHEREAS, on October 19, 2021, the City Council provided direction to city staff to update the Carlsbad Municipal Code relating to historic preservation and to include provisions adopting a local Mills Act program; and WHEREAS, the Historic Preservation Commission held a public meeting on September 12, 2022, to discuss and consider proposed amendments to the Carlsbad Municipal Code and adopted a resolution recommending the proposed changes to Chapter 2.42 and Title 22; and WHEREAS, the amendments recommended by the Historic Preservation Commission include a comprehensive update to the city’s Historic Preservation Ordinance, and the adoption of a local Mills Act program. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, ordains as follows that: SECTION I: The above recitations are true and correct. SECTION II: That Carlsbad Municipal Code Title 2, Chapter 2.42 is amended to read as follows: Chapter 2.42 HISTORIC PRESERVATION COMMISSION Sections: 2.42.010 Created. 2.42.020 Membership. 2.42.040 Duties. 2.42.010 Created. A historic preservation commission of the city is created. 2.42.020 Membership. Membership on the historic preservation commission shall consist of five regular members appointed pursuant to section 2.15.050(B), and one non-voting, ex officio representative from the planning commission. Nov. 8, 2022 Item #5 Page 3 of 15 2.42.040 Duties. Duties of the historic preservation commission are as follows: A.The commission shall act in an advisory capacity to the city council, planning commission, and housing commission in all matters relating to the identification, protection, retention, and preservation of historic resources within the city. B.It shall be the responsibility of the commission to provide advice to the city council on the following matters: 1.The designation of historic resources and historic districts; 2.Recommending properties of historical significance for listing in the National Register of Historic Places or the California Register of Historical Resources; 3.Different ways to increase the public’s understanding of and involvement in historic preservation programs including the promotion and dissemination of public information, education, and interpretive programs pertaining to historical areas and sites; 4.Cooperation with local, county, state, and federal governments in pursuit of the objectives of historic preservation; 5.The approval, conditional approval, or denial of preservation benefits and incentives; and 6.Any other matter necessary to identify or protect historical resources. C.The commission shall be responsible for: 1.Investigating and reporting to the city council on the use of various federal, state, local, or private funding sources available to promote historic preservation in the city; 2.Rendering advice and guidance, upon the request of the property owner or occupant, on any matter related to historic, cultural or architectural resources; 3.As part of the environmental review of development projects affecting historic buildings or structures, as identified in the environmental study, the commission may review and comment upon the adequacy of the environmental document during the public review period under the California Environmental Quality Act or the National Environmental Policy Act. Absent a request for an extension of the public review period, the commission’s failure to comment within the advertised public review period shall indicate that the commission has no comment to make; and 4.Performing any other functions that may be designated by the city council. SECTION III: That Carlsbad Municipal Code Title 22, Chapter 22.02 is amended to read as follows: Chapter 22.02 GENERAL REGULATION AND ADMINISTRATION Sections: 22.02.010 Short title. 22.02.020 Purpose and intent. 22.02.030 Boundaries and areas of application. 22.02.040 Definitions. 22.02.010 Short title. This title shall be known as the “Historic Preservation Ordinance.” 22.02.020 Purpose and intent. It is the intent and purpose of this title to: Nov. 8, 2022 Item #5 Page 4 of 15 A.Provide a means to promote, preserve, protect, and enhance historic properties that represent or reflect elements of the city’s cultural, social, economic, political and architectural history; B.Safeguard the city’s historic heritage by encouraging preservation of its historic properties; C.Promote the use of Historic Resources, Historic Landmarks, and Historic Districts for the education, pleasure, and welfare of the people of the city; and D.To provide preservation benefits or incentives to property owners who voluntarily wish to preserve any structures, buildings, sites, artifacts, or landscape features, or portions thereof with historic authenticity, integrity, value, and/or importance. 22.02.030 Boundaries and areas of application. This title shall apply to all real property, publicly and privately owned, within the corporate limits of the city. 22.02.040 Definitions. For the purpose of this title, the following words and phrases shall have the following meanings: “Alteration” means any change or modification, through public or private action, of any nominated historic resource historic resource, or of any property located within a historic district, including, but not limited to, exterior changes to or modifications of, a structure or any of its architectural details or visual characteristics, including doors, windows, paint color, surface materials and texture, grading, surface paving, addition of new structures, cutting or removal of trees and other natural features, disturbances of archeological sites or areas, and the placement or removal of any objects such as signs, plaques, light fixtures, street furniture, walls, fences, steps, plantings, and landscape accessories affecting the historic qualities of the property. “Character-defining feature” means all those visual aspects and physical features that comprise the historical appearance and significance of the property including overall building shape; architectural elements embodying style; design; craftsmanship; decorative details; proportions; general arrangement and components of all surfaces including the kind, color or texture of the building materials and the type and style of all windows, doors, lights, signs and other fixtures appurtenant to the building and/or property; and includes interior visual aspects and physical features that are specifically stated as included in the property’s historic designation. “Commission” means the historic preservation commission. “Contributing resource” shall mean a building, structure, site, artifact, or landscape feature, or portion thereof, which by location, design, setting, materials, workmanship, feeling, or association adds to the sense of authenticity, integrity, value, and/or importance of an historical district. "Demolition" shall mean the dismantling, razing, wrecking, or destruction in whole or in part of an Improvement. “Director” means the community development director, or designee. “Historic district” means a geographic area which possesses a significant concentration, linkage, or continuity of improvements united historically, culturally, or architecturally by plan, history, or physical development and which has been designated a historic district pursuant to the provisions of this Title. “Historic landmark” means any historic resource which meets the designation criteria for a historic landmark and has been designated a historic landmark pursuant to the provisions of this Title. “Historic resource” means an improvement which has been determined to meet the eligibility criteria for historic resources and has been designated a historic resource by the city council pursuant to the provisions of this Title. Historic resources include local historic landmarks, contributing resources to a historic district, and qualified historical properties. “Historical property contract” means a contract between the city and the owner of a qualified historical property, which meets the requirements of California Government Code Sections 50280-50290 and the applicable provisions of this Title. The terms “historical property contract” and “Mills Act contract” are used interchangeably throughout this Title. “Improvement” means any building, structure, site, artifact, or landscape feature, or portion thereof constituting a physical betterment of real property, or any part thereof. Nov. 8, 2022 Item #5 Page 5 of 15 “Mills Act” means the historic preservation incentive codified in California Government Code Sections 50280- 50290 and California Revenue and Taxation Code Sections 439-439.4, as it exists now or as it may be amended. “Nominated Historic Resource” means a resource nominated for placement in the City of Carlsbad Historic Resource Register as provided for in this Title. “Non-contributing resource” means all resources a City of Carlsbad historic district that are not designated as contributing resources. “Ordinary maintenance and repair” means construction, work or modification of real property, for which a building permit is not required by this code, and where the purpose and effect of such construction, work or modification is to correct deterioration or damage to a building, structure, site, artifact or landscape feature, or portion thereof and to restore the same, as nearly as may be practicable, to its condition prior to the occurrence of such change, deterioration, damage, destruction, or adverse effect. “Preservation” means the act or process of applying measures to sustain the existing form, integrity, or materials of a historic resource. It may include stabilization work, as well as ordinary maintenance and repair. “Professional qualification standards” means the United States Secretary of the Interior’s Professional Qualification Standards which include the minimum education and experience required in several disciplines to perform identification, evaluation, registration, and treatment activities for archaeological and historic properties, as provided by Part 61 of Title 36 of the Code of Federal Regulations. “Qualified historical property” shall have the same meaning as defined in Government Code Section 50280.1 as it now exists or as it may be amended. “Reconstruction” means the act or process of reproduction through construction of the exact form and detail of a vanished building, structure, site, artifact, or landscape feature, or portion thereof, for the purpose of replicating its appearance as it appeared at a specified period of time. “Register” means the City of Carlsbad Historic Resource Register. The local register is an inventory of improvements designated by the city council as historic resources. “Rehabilitation” means the act or process of returning a property to a state of utility through repair or alteration which makes possible an efficient contemporary use while preserving those portions or character-defining features of the property which are significant to its historical, cultural or architectural authenticity, integrity, value, and/or importance. “Restoration” means the act or process of accurately depicting the form, features, and character of a property as it appeared at a particular period of time by means of the removal of features from other periods in its history and reconstruction of missing features from the restoration period. “Secretary of the Interior’s Standards” means the United States Secretary of the Interior’s Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring & Reconstructing Historic Buildings. The Standards for the Treatment of Historic Properties are codified at Part 68 of Title 36 of the Code of Federal Regulations, as it exists now as it may be amended. SECTION IV: That Carlsbad Municipal Code Title 22, Chapter 22.06 is amended to read as follows: Chapter 22.06 HISTORIC RESOURCES, HISTORIC LANDMARKS AND HISTORIC DISTRICTS Sections: 22.06.010 Establishment of City of Carlsbad historic resource register 22.06.020 Historic resource and historic landmark designation criteria 22.06.030 Historic district designation criteria 22.06.040 Historic resource and historic landmark designation procedures. Nov. 8, 2022 Item #5 Page 6 of 15 22.06.050 Historic district designation procedures. 22.06.060 Historic resource and historic district de-designation procedures. 22.06.010 Establishment of City of Carlsbad historic resource register Resolutions adopting designations of historic resources and historic districts shall collectively be known as the City of Carlsbad Historic Resource Register. The list of historic resources in the local register will be kept on file with the City Clerk’s Office. 22.06.020 Historic resource and historic landmark designation criteria A. Any Improvement may be designated as a Historic Resource if, upon recommendation of the commission, it is found by the city council to meet the following criteria: 1.The property owner consents to the proposed designation; 2. The Improvement must be at least 50 years old, or have achieved significance within the past 50 years, and exhibit one or more of the following attributes: a.It is associated with events that have made a significant contribution to the broad patterns of local or regional history, or the historic, cultural or architectural heritage of California or the United States; or b.It is associated with the lives of persons important to local, California, or United States history; or c.It embodies distinctive characteristics of a region, style, type, period or method of construction, or is representative of a notable work of an acclaimed builder, engineer, designer or architect that embodies significant structural, engineering, or architectural achievement; or d.It has yielded or has the potential of yielding information important to the prehistory or history ofthe local area, California or the United States. For any Improvement less than fifty years old, “achieved significance” means it is of enduring importance within the appropriate historical cultural or architectural context and it can be demonstrated that sufficient time has passed to understand its authenticity, integrity, value, and/or importance. 3. The Improvement retains enough of its historic, cultural or architectural character or appearance to be recognizable as a Historic Resource and to convey the reasons for its significance. B.Designation of a Historic Landmark. The commission may recommend to city council that a historic resourcealso be recognized as a historic landmark. The purpose of identifying a historic resource as historicallandmark is to provide distinctive recognition of Improvements that have outstanding character or historical,cultural or architectural interest or importance as part of the city’s cultural, social, economic, political andarchitectural history. 22.06.030 Historic district designation criteria A.Any finite and contiguous grouping of improvements that relate to one another may be designated as a historic district if, upon recommendation by the commission, it is found by the city council to meet the following criteria: 1.Its designation is consented to by all property owners within the proposed historic district; 2.It is a geographically definable area with a concentration of contributing resources linked historically, culturally, or architecturally through location, design, setting, materials, workmanship, feeling and/or association, in which the collective value of the Improvements may be greater than the value of each individual Improvement; and 3.At least fifty percent of the contributing resources within the proposed historic district are already designated as historic resources, or otherwise determined by the commission and city council to be eligible for placement in the local register. B.Contributing resources share a time period in which most of the original construction occurred or there is some other shared historical, cultural or architectural period of context or significance. Nov. 8, 2022 Item #5 Page 7 of 15 C.The City Council may, by resolution or council policy, establish additional criteria for the historic identification, protection, retention, and preservation of a district; designation thereof; and for reviewing proposed work on contributing resources and non-contributing resources within the district. 22.06.040 Historic resource and historic landmark designation procedures. Historic resources, including historic landmarks, shall be designated by the city council in the following manner: A.A property owner may request an improvement be designated as a historic resource by submitting a written request for such designation to the commission. B.Any such request shall be filed with the planning division upon prescribed forms and shall include the following information: 1.Name and address of property owner(s) and assessor’s parcel number and address of site; 2.Description of the proposed historic resource, including special aesthetic, cultural, architectural, or engineering interest or value of a historic nature, including information about the architecture, notable features, construction, and other information indicating the historic significance of the proposed historic resource; 3.Sketches, photographs, or drawings (old and/or recent) depicting the improvement as part of the city’s cultural, social, economic, political and architectural history; 4.Statement of condition of improvements; 5.Explanation of any known threats to the improvements on the site; 6.Additional information: a.Site plan in appropriate scale; b.Legal description of the property; c.Photographs, old and recent; d.Proposed use; e.Existing zoning; f.Bibliography and references, and other print materials regarding the historical significance of the proposed historic resource; g.Chain of title, if available; 7.An application fee may be required if so specified in the City of Carlsbad Master Fee Schedule. 8.Other information requested by the planning division. C.Within 90 calendar days of receipt of a completed application, the commission shall hold a public hearing to review the application to designate a historic resource. D.Notice of the public hearing shall be given as provided in Section 21.54.060(A)(2) of this code. In addition, notice of the date, place, time and purpose of the hearing shall be mailed, return receipt requested, to the owner of the nominated historic resource as shown on the last equalized assessment roll at least 14 days prior to the date of the public hearing. Failure to send notice by mail to any property owner when the address of such owner is not on the latest equalized assessment role shall not invalidate any proceedings in connection with the proposed designation. E.An application to designate any improvement that is already listed in the National Register of Historic Places or the California Register of Historic Places shall be presented directly to the city council. A public hearing by the commission is not required. F.Upon receipt of an application for historic designation, the director shall notify the building official of the pending application. For a period of 90 calendar days beginning upon the date the notice of hearing is deposited in the mail, the property owner and/or any authorized representative of the property for which a historic designation application is pending shall be prohibited from undertaking any alteration, construction, grading, demolition or removal of the nominated historic resource, except ordinary repair and maintenance, and no permit to undertake such work shall be issued by the city. Nov. 8, 2022 Item #5 Page 8 of 15 If no final action has been taken as to the historic resource designation within the 90-day period, these restrictions shall expire unless the commission, with the consent of the property owner and/or any authorized representative, elects to continue its consideration of the property for historic resource designation. If the commission, with the consent of the owner and/or any authorized representative, makes such an election, said restrictions shall remain against the property until final action and the director shall notify the appropriate city officials of said restrictions. Nothing in this provision shall be construed as a prohibition or infringement on the legal use of a property pending consideration by the commission. The provisions of this section shall not apply to the construction, grading, alteration, demolition or removal of any structure or other feature, where a permit for the performance of such work was issued prior to the date that the property owner filed the historic resource designation application with the city, and where such permit has not expired or been canceled or revoked, provided that construction is started and diligently pursued to completion in accordance with this Code. G.After the public hearing, the commission shall by resolution make a report and recommendation to the city council. If the commission determines that the improvement does not meet historic resource criteria, the process shall terminate and the commission shall notify the applicant of such termination in writing within 10 days of the commission’s determination. If the commission determines that the resource warrants historic resource designation and the property owner has consented to same in writing, then the commission shall submit a written recommendation to the city council incorporating its reasons in support of the proposed designation. A site shall not be designated a historic resource without the property owner’s consent. H.The city council shall hold a public hearing on the proposed historic resource designation within 60 calendar days of the receipt of the recommendation from the commission. I.At the conclusion of the public hearing on the proposed designation, the city council shall, by resolution, designate or conditionally designate, or disapprove the designation of the historic resource. The city council may also designate a historic resource as a historic landmark, as provided in Section 22.06.020(B). Written notice of the city council action shall be mailed to the property owner. J.The resolution designating a historic resource shall be recorded with the County Recorder in accordance with Public Resources Code Section 5029 and Government Code Section 27288.2. A property approved for listing in the local register shall not be considered designated until the City Clerk has submitted the resolution to the County and the County has recorded the designation. Property owner(s) shall be responsible for any fees required to record a historic designation. 22.06.050 Historic district designation procedures. Historic districts shall be established by the city council in the following manner: A.The procedures for designating a historic district shall be the same as for designating a historic resource, except as otherwise provided in this section. B.A property owner within a proposed historic district may submit an application for designation of a historic district. Such application shall be made in writing, filed with the planning division upon the prescribed form and shall include the following data: 1.Boundaries of the proposed district and a list of names and addresses of property owners, assessor’s parcel numbers and addresses of properties within the boundaries; 2.Description of the proposed historic district, including special aesthetic, cultural, architectural, or engineering interest or value of a historic nature, and a listing of all parcels of land within the boundaries of the proposed district, labeled as a potential Contributing Resource or Non-Contributing Resource. 3.Signatures of all property owners within the proposed historic district consenting to the historic district. 4.Bibliography and references, and other print materials regarding the historical significance of the proposed historic district; 5.Sketches, photographs or drawings (old and/or recent) depicting the proposed district, or parts thereof, as part of the city’s cultural, social, economic, political and architectural history; 6.Statement of condition of improvements within the proposed district; 7.Explanation of any known threats to any improvements within the proposed district; Nov. 8, 2022 Item #5 Page 9 of 15 8.An application fee may be required if so specified in the City of Carlsbad Master Fee Schedule. 9.Other information requested by the planning division. C.An application is incomplete and no public hearing shall be scheduled before the commission until the written consent of all of the owners of property within the proposed historic district has been obtained. D.If the commission determines that the area warrants historic district designation, it shall submit a written recommendation to the city council incorporating its reasons in support of the proposed historic district designation. Such recommendation shall include a report containing the following information: 1.A map showing the proposed boundaries of the historic district identifying all contributing resources and non-contributing resources within the boundaries; 2.An explanation of the significance of the proposed district and description of the historical, cultural or architectural resources within the proposed boundaries; 3.Recommendations as to appropriate permitted uses, special uses, height and area regulations, minimum dwelling size, floor area, sign regulations, parking regulations, and any other modification to existing development standards necessary or appropriate to the preservation of the proposed historic district. Any recommendations related to zoning may require an amendment to Title 21 and application pursuant to Chapter 21.52 of this Code. E.If the Historic District application is approved by the city council, all contributing resources within the district shall be designated as a historic resource. The resolution designating the historic resource(s) shall be recorded with the County Recorder in accordance with Public Resources Code Section 5029 and Government Code Section 27288.2. A property approved for listing in the local register shall not be considered designated until the City Clerk has submitted the resolution to the County and the County has recorded the designation. Property owner(s) shall be responsible for any fees required to record a historic designation. 22.06.060 Historic resource and historic district de-designation procedures. The procedure for de-designation of a historic resource or historic district from the local Register shall be as follows: 1.Owners of property with a recorded Mills Act contract who voluntarily seek to be deleted from the local Register, shall first follow the procedures and requirements for Mills Act contract cancellations, provided in Chapter 22.10 of this Code. 2.Owners of property without a recorded Mills Act contract may request de-designation from the register, or deletion or modification of a historic district within which their property is located, by submitting an application to the director. A fee, as set forth in the City of Carlsbad Master Fee Schedule, shall accompany each application for de-designation. The fee shall be in an amount reasonably calculated to reimburse the city for its reasonable and necessary costs in receiving, processing and reviewing de-designation applications, including preparation of a historic resource assessment. 3.A historic resource assessment to provide evidence for the de-designation may be requested by the director as part of the application and will be paid for by the applicant. 4.The commission shall consider the de-designation application and historic resource assessment at a public hearing, which shall be noticed in the same manner as public hearings under section 22.06.040 of this Chapter. After the public hearing, the commission shall by resolution make a report and recommendation to the city council. Within 60 calendar days of the commission’s recommendation, the city council shall hold a public hearing to consider the de-designation application. The city council’s action shall state the reasons for the de-designation by resolution. As needed, the director shall propose and process for de-designation from the local Register those historic resources and historic districts which have been changed, deteriorated, damaged, destroyed or adversely Nov. 8, 2022 Item #5 Page 10 of 15 affected to such an extent that, in the director’s opinion, they no longer qualify for placement on the local register. Requests for de-designation by the director shall follow the procedures provided in this section. No fee shall be required. SECTION V: That Carlsbad Municipal Code Title 22, Chapter 22.08 is amended to read as follows: Chapter 22.08 PERMITS AND PERMIT PROCEDURES Sections: 22.08.010 Permits to work on a historic resource. 22.08.020 Permit procedure. 22.08.030 Permit criteria. 22.08.040 Duty to keep in good repair. 22.08.050 Existing improvements. 22.08.060 Enforcement and Penalties 22.08.010 Permits to work on a historic resource. A.It is unlawful for any person to alter, tear down, demolish, construct, remove, or relocate any nominated historic resource, historic resource, or any property located within a historic district without first obtaining a permit from the city as provided by this chapter. An application fee may be required if so specified in the city’s master fee schedule. B.Exceptions. 1.Ordinary maintenance and repair. No permit shall be necessary for ordinary maintenance and repair. 2 Public health and safety. No permit shall be necessary for work on an Improvement when the city’s building division certifies that such action is required for the public safety due to an unsafe or dangerous condition which cannot be rectified using the California Historical Building Code. 3.Economic hardship. The owner of a historic resource may request to be exempted from the permit requirement and carry out work that may adversely affect the authenticity, integrity, value and/or importance of the historic resource on the basis of extreme financial hardship or adversity. Such request shall be submitted by the property owner and considered by the commission (and city council if appealed) in the same manner as an application described in Section 22.08.020. The director may require the owner to furnish material evidence supporting the request for exemption. C.The permit required by this chapter shall be in addition to any other permit required for a proposed project. 22.08.020 Permit procedure. The permit procedure to alter, tear down, demolish, construct, remove, or relocate any portion of a nominated historic resource, historic resource, or any property located within a historic district is as follows: A.An application for a permit to do work at a historic resource or any property within in a historic district shallbe submitted to the development processing division on forms designated by the city planner.B.If the application is for work on a historic resource subject to a historical property contract between the cityand the property owner(s), then the City Planner shall review the application to ensure that the proposedAlteration, Demolition, Reconstruction, Rehabilitation or Restorative work is consistent with the terms of thehistorical property contract, the Secretary of the Interior’s Standards and any local design guidelines orstandards adopted for the historic district, if applicable. If the City Planner determines that the application isconsistent with those criteria, the application may be approved and a permit may be issued administratively.If the proposed Alteration, Demolition, Reconstruction, Rehabilitation or Restorative work was not listed inthe historical property contract approved by city council, or is determined to be inconsistent with the Secretary Nov. 8, 2022 Item #5 Page 11 of 15 of Interior’s Standards or local design guidelines or standards, then the application shall be processed pursuant to subsection C of this section. C.If the historic resource is not subject to a historical property contract between the city and property owner(s), the City Planner shall review the application and provide a recommendation to the commission. Within 60 calendar days from the receipt of such complete application, the commission shall hold a public hearing to review the application and consider the city planner’s recommendation. Notice of the public hearing shall be given as provided in Section 21.54.060(B) of this Code. At the conclusion of the public hearing on the permit application, the commission shall, by resolution, issue or deny, in whole or in part, any permit application. D.The decision of the commission may be appealed to the city council by filing an appeal with the city clerk’s office within 10 calendar days of the date of the commission’s decision. If an appeal is filed, the city council shall hold a public hearing on the application within 30 days of receipt of the appeal. Notice of the public hearing shall be given as provided in Section 21.54.060(B) of this Code. 22.08.030 Permit criteria. A permit for the proposed work shall be issued if, and only if, the decision-maker determines: A.That the proposed work would comply with the Secretary of the Interior’s Standards and not detrimentally deteriorate, damage, destroy, or adversely affect the authenticity, integrity, value, and/or importance of the historic resource; B.That the proposed exterior work will be compatible with the external appearance of existing Improvements on the property or within the Historic District, if applicable; and C.That the proposed work is consistent with the purpose and intent of this Chapter. 22.08.040 Duty to keep in good repair. The owner, occupant or other person legally responsible for a nominated historic resource, historic resource, or any property located within a historic district shall keep in good repair all portions of such historic resource or property within a historic district, including all interior portions and appurtenances thereof whose maintenance is necessary to prevent change, deterioration, damage, destruction, or adverse effect to the authenticity, integrity, value, and/or importance of the resource. 22.08.050 Existing improvements. All maintenance and repairs, alterations, reconstructions, restorations, preservations, or rehabilitations of existing improvements shall conform with the historical property contract, and to the guidelines and requirements of the Secretary of Interior’s Standards, the California Department of Parks and Recreation Office of Historic Preservation and the State Historical Building Code, as applicable. 22.08.060 Enforcement and Penalties Any person who violates any of the provisions of this Title, including by failing to comply with a condition of approval of any permit or preservation benefit or incentive issued under this Title, is guilty of an infraction punishable as provided in Section 1.08.010 of this code, or in the alternative by the administrative code enforcement remedies of Chapter 1.10 of Title 1 of this code. Nov. 8, 2022 Item #5 Page 12 of 15 SECTION VI: That Carlsbad Municipal Code Title 22 is amended to add Chapter 22.10 to read as follows: Chapter 22.10 PRESERVATION BENEFITS AND INCENTIVES Sections: 22.10.020 Historical property contracts 22.10.020 Historical property contracts. A.Owners of qualified historical properties improved with at least one building may receive a potential reduction in property taxes through a historical property contract (Mills Act Contract), pursuant to California Government Code Section 50280 et seq. and California Revenue and Taxation Code Section 439 et seq., collectively “the Mills Act.” The purpose of this section is to implement the Mills Act in order to establish a voluntary process to enter into contract with owners of qualified historical properties that have previously been designated as a historic resource for property tax relief and for the preservation of those historic resources. B.Individual properties that are not a qualified historical property at the time of application for a Mills Act Contract may submit an application for the property to be listed in the register simultaneously with the application for a Mills Act contract. The applications will be processed concurrently. C.Applications. Mills Act contract applications may be submitted to the planning division on a form provided by the city planner. All applications shall include: 1.Documentation of status as a qualified historical property or nominated historic resource; 2.A detailed 10-year work plan of proposed preservation, restoration and/or repair prepared by, or with the concurrence of, an individual qualified under the applicable professional qualification standards; 3.A description of the property; 4.Property owner(s) affidavit and acknowledgement of the Mills Act mandatory provisions; 5.A completed Mills Act contract notarized and signed by the property owner(s); and 6.All required fee(s), as set by council resolution. D.Procedure. Following receipt of a completed application, the city planner or designee shall review the application materials and schedule the pre-contract approval inspection of the exterior and interior of the subject property with the property owner(s). The purpose of the inspection is to confirm and photo-document the condition of the property and review the proposed work plan of improvements. Failure of a property owner to allow access to the property for purposes of the property inspection shall be grounds for denial of the application. Once the inspection is conducted and the planning division has completed its review of the application to develop a recommendation, the planning division shall forward its recommendation on the Mills Act contract to the commission. The commission shall conduct a public hearing to consider the contract terms, including the 10-year work plan, and make a recommendation to city council regarding the approval, conditional approval or denial of the Mills Act contract. E.Following receipt of the commission’s recommendation, the city council shall conduct a public hearing and shall either approve, conditionally approve or deny the Mills Act contract. The decision of the city council shall be final. F.No later than 20 calendar days after the city enters a Mills Act contract, the city clerk shall record with the county recorder a copy of the contract, which shall describe the property subject thereto. The city clerk shall notify the property owner(s), the County Tax Assessor's office and the State Office of Historic Preservation of the recorded Mills Act contract. G.Mills Act contract mandatory provisions. All Mills Act contracts shall meet the requirements of Government Code Section 50280 et seq., as it exists now or as may be amended. Nov. 8, 2022 Item #5 Page 13 of 15 H.Notice of Nonrenewal. Either party to a Mills Act contract may file a notice of nonrenewal at any time after entering into the contract. The effect of the notice of nonrenewal shall be as prescribed in Government Code Section 50282 and Revenue and Taxation Code Section 439.3. I.Cancellation. 1.Cancellation of a Mills Act contract shall be in accordance with the terms of the agreement and Government Code Sections 50284-50286. 2.As an alternative to cancellation of the contract, the city may bring any action in court necessary to enforce the Mills Act contract, including an action to enforce the contract by specific performance or injunction. 3.If the qualified historical property under an active Mills Act contract is destroyed by earthquake, fire, flood, or other natural disaster such that in the opinion of the building official more than 60 percent of the original fabric of the building or structure must be replaced, the Mills Act contract may be cancelled, in accordance with the cancellation provisions of the Mills Act, because the authenticity, integrity, value and/or importance of the building structure will have been destroyed. If the qualified historical property is acquired in whole or in part by eminent domain or other acquisition by any entity authorized to exercise the power of eminent domain, and the acquisition is determined by the city council to frustrate the purpose of the Mills Act contract, then the contract may be cancelled in accordance with the cancellation provisions of the Mills Act. No cancellation fee pursuant to Government Code Section 50286 shall be imposed if a Mills Act contract is cancelled pursuant to this subsection. J.The city manager or designee may adopt written administrative regulations that are consistent with and further the requirements of this Chapter. K.Enforcement. Enforcement of this Chapter and Mills Act contracts shall be as allowed by Government Code Sections 50280 - 50290 and as provided by the terms of the Mills Act contract recorded on the property. EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption; and the City Clerk shall certify the adoption of this ordinance and cause the full text of the ordinance or a summary of the ordinance prepared by the City Attorney to be published at least once in a newspaper of general circulation in the City of Carlsbad within fifteen days after its adoption. Nov. 8, 2022 Item #5 Page 14 of 15 INTRODUCED AND FIRST READ at a Regular Meeting of the Carlsbad City Council on the 18th day of October, 2022, and thereafter PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 8th day of November, 2022, by the following vote, to wit: AYES: NAYS: Hall, Blackburn, Bhat-Patel, Acosta, Norby. None. ABSENT: None. APPROVED AS TO FORM AND LEGALITY: �I<-� CINDIE K. McMAHON, City Attorney � -tftv FAVIOLA MEDINA, City Clerk Services Manager (SEAL) Nov. 8, 2022 Item #5 Page 15 of 15