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O 654 ORDINANCE NO. 654 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING SECTION 16.16.135 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING MILLS ACT CONTRACTS FOR HISTORIC PROPERTIES AND AMENDING THE DESIGNATION PROCESS TO ELIMINATE THE ARCHITECTURAL REVIEW COMMITTEE WHEREAS, the City has a defined process for designating local historic resources codified in Title 16, Chapter 16, Section 135 of the Arroyo Grande Municipal Code; and WHEREAS, the Mills Act, codified as Government Code Section 50280 et. seq., encourages the preservation, restoration, rehabilitation, and maintenance of historic properties in accordance with the Secretary of the Interior's Standards for the Treatment of Historic Properties; and WHEREAS, the Mills Act permits cities to enter into Mills Act Contracts with owners of qualified historic properties to protect and maintain their properties in exchange for the County Assessor assessing their property at a lower property tax rate by utilizing a formula established by the State of California; and WHEREAS, the City Council finds and determines that entering into Mills Act Contracts is an incentive for owners of designated historic properties to preserve, rehabilitate, restore and maintain those properties; and WHEREAS, the City Council further finds that the protection of these properties will support the goals and objectives in the Land Use Element of the City's General Plan concerning the preservation of historically significant properties, and foster economic incentives to protect properties of historic significance; and WHEREAS, the City Council desires to establish a Mills Act historic resource protection tax incentive program; and WHEREAS, the Community Development Director has determined that establishment of the Mills Act Program is not a "project" as defined by Section 15378 of the California Environmental Quality Act as it applies to existing development and does not have the potential to result in a direct physical change in the environment; and WHEREAS, the City Council finds, after due study, deliberation and public hearing, the following circumstances exist: ORDINANCE NO. 654 PAGE 2 Development Code Amendment Findings: 1. The proposed change of zone (or revision to this title) is consistent with the goals, objectives, policies and programs of the general plan, and is necessary and desirable to implement the provisions of the General Plan; The proposed revision is consistent with the goals, objectives, policies and programs of the General Plan in that protection of historical resources is an established goal. 2. The proposed change of zone (or revision to this title) will not adversely affect the public health, safety, and welfare or result in an illogical land use pattern; The proposed amendment will not adversely affect the public health, safety, and welfare or result in an illogical land use pattern because it is a program change only that affects existing development. 3. The proposed change of zone (or revision to this title) is consistent with the purpose and intent of the title (or the portion of this title it is amending); The proposed amendment is consistent with the purpose and intent of the title, as it provides and ensures compatibility between this title and the General Plan to allow a historic resource protection program. 4. The potential environmental impacts of the proposed change of zone (or revision to this title) are insignificant, or there are overriding considerations that outweigh the potential impacts; There are no potential environmental impacts identified with the establishment of the Mills Act program. NOW, THEREFORE BE IT ORDAINED by the City Council of the City of Arroyo Grande as follows: SECTION 1. Recitals. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. Amended Subsection. Subsection D of Section 16.16.135 of the Arroyo Grande Municipal Code is hereby amended as follows: D. Designation Process. Historic resources and historic districts shall be designated by the community development director, planning commission or city council upon the recommendation of the HRC in the following manner: 1. Initiation of Designation. Designation of a historic resource or a historic district may be initiated by: (a) the owner of record of the property or resource, (b) the HRC, (c) the community development director, (d) the planning commission, (e) the city council, (f) by any resident of the city ORDINANCE NO. 654 PAGE 3 of Arroyo Grande, or (g) any organization with a recognized interest in historical preservation. Applications for designation originating from other than the HRC must be accompanied by such historical and architectural information as is required by the HRC to make an informed recommendation concerning the application, together with the fee set by the city council. 2. Notice. The HRC shall publish and transmit a notice informing property owners of historic resources proposed to be designated and all interested parties of the time and location of all meetings in which the designations will be discussed and considered. 3. Advisory Recommendations. The HRC shall make recommendations on a proposed designation of a historic resources or historic districts to the community development director. 4. Community Development Director Decision. Except for concurrent applications as provided for in Section 16.12.070, the community development director is authorized to approve minor use permits for historic resource and historic district designations, subject to the appeal provisions of Section 16.12.150. The community development director shall prepare a written decision that shall contain the findings of fact upon which such decision is based. Copies of the decision shall be provided to the applicant and owners of the designated property or properties within the proposed historic district. 5. Public Hearing. A public hearing by the planning commission, pursuant to Section 16.12.160 of this title, shall be scheduled in the event that the property owner does not consent to the application for a proposed designation. 6. Findings. The community development director or the planning commission if the property owner does not consent, may designate the listing of a property as a historic resource only if all of the following findings of fact can be made in an affirmative manner: a. The proposed project is consistent with the goals, objectives, policies and programs of the Arroyo Grande general plan; b. Based upon consideration of information submitted in the record during the Historic Resource designation process the property meets any of the criteria listed in subsection B of this section; c. The resource retains the integrity of the design, has not been inappropriately: (i) altered; (ii) relocated; (iii) added to; or (iv) remodeled. ORDINANCE NO. 654 PAGE 4 7. Suspension of Work. While the community development director, planning commission or city council, on appeal, is considering a historic designation, all development and building work on the site proposed for historic designation shall be suspended. SECTION 3. New Subsection. Section 16.16.135 of the Arroyo Grande Municipal Code is amended to add a Subsection G as follows: G. Historic Resource Protection Tax Incentives. In addition to any other incentive of federal or state law, property owners of duly designated historic resources may apply for Mills Act Historical Property Contracts ("Mills Act Contracts") with the City. A Mills Act historic resource protection tax incentive program may be established by City Council resolution. This subsection will implement State law (Government Code Sections 50280 et. seq.), allowing the approval of Mills Act Contracts by the City with owners of qualified historic properties within the City. SECTION 4. Severability. If any section, subsection, subdivision, paragraph, sentence, or clause of this Ordinance or any part thereof is for any reason held to be unlawful, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, or clause thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, or clause be declared unconstitutional. SECTION 5. Ordinance Summary. A summary of this Ordinance shall be published in a newspaper and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text of the proposed Ordinance shall be posted in the office of the City Clerk. Within fifteen (15) days after adoption of the Ordinance, the summary with the names of those City Council Members voting for and against the Ordinance shall be published again, and the City Clerk shall post a certified copy of the full text of such adopted Ordinance. SECTION 6. Effective Date. This Ordinance shall take effect thirty (30) days after its adoption. On motion of Council Member Guthrie, seconded by Council Member Brown, and on the following roll call vote, to wit: AYES: Council Members Guthrie, Brown, Costello, and Mayor Ferrara NOES: None ABSENT: Council Member Ray the foregoing Resolution was passed and adopted this 9th day of July 2013. ORDINANCE NO.(p5'/ PAGE 5 - //1z TONY FER- '�• AYOR ATTEST: / KELLY ORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER - APPROVED AS TO FORM: TIM NY J. •,°+ e,--CITY ATTORNEY OFFICIAL CERTIFICATION I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury, that the attached is a true, full, and correct copy of Ordinance No. 654 which was introduced at a regular meeting of the City Council on June 25, 2013; was passed and adopted at a regular meeting of the City CounciUSuccessor Agency to the Dissolved Arroyo Grande Redevelopment Agency on the 9th day of July 2013; and was duly published in accordance with State law (G.C. 40806). WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 11th day of July 2013. / KELL / ORE, CITY CLERK