To:   HONORABLE MAYOR AND                   From:   Stephen M. Haase[LI1] 

                        CITY COUNCIL

 

   Subject:   SEE BELOW                                               Date:   November 10, 2003

                     

COUNCIL DISTRICT:  3

Subject:  MA03-002.  HISTORICAL PROPERTY CONTRACT FOR THE TWOHY BUILDING CITY LANDMARK NO. HL01-134, LOCATED AT THE EAST SIDE OF SOUTH FIRST STREET, APPROXIMATELY 610 FEET SOUTH OF SAN FERNANDO STREET (200-210 SOUTH FIRST STREET).

 

 

RECOMMENDATION

 

The Historic Landmarks Commission recommends that the City Council adopt a resolution approving a historical property contract for the Twohy Building, City Landmark No. HL01-134.

 

BACKGROUND

 

The owner, CIM/Twohy LLC is requesting a Historical Property Contract to allow property tax relief to rehabilitate and maintain the Twohy Building (Historic Landmark No. HL01-134) located at 200-210 South First Street. In 2002 the owner obtained an Historic Preservation Permit (HP02-017), to allow the rehabilitation of the building.  The site is zoned CG Commercial General and is designated Core Area on the adopted San Jose 2020 Land Use and Transportation Diagram.  The subject site is surrounded by commercial development.

 

The City Council adopted its Resolution No. 70639 thereby declaring and designating the Twohy Building as a Historic Landmark on October 2, 2001. The designation was based upon the building’s representation of downtown San Jose’s growth southward under the initiative of T.S. Montgomery during the pre-World War I years, its embodiment of the distinguishing characteristics of Renaissance Revival architecture, and its identification as the work of well-known local architect William Binder. The building is a five-story structure with commercial space on the ground level and apartments on the upper floors. A description of the building is attached.

 

 

ANALYSIS

 

Required Provisions of Historical Property Contracts

 

Municipal Code Chapter 13.48 requires provisions of historical property contracts as follows:

 

A.        A description of the Landmark Property subject to the Contract;

B.         A provision that the term of the Contract is a minimum period of ten years;

C.         Specific conditions requiring preservation of the Landmark Property and where appropriate,

restoration and rehabilitation of the Landmark Property to conform to the requirements of the

City, and the rules and regulations of the Office of Historic Preservation of the State of

California Department of Parks and Recreation;

D.        Provision for the periodic examination of the interior and exterior of the Landmark Property by the City of San Jose, Santa Clara County Assessor, and the State Board of Equalization as may be necessary to determine the owner's compliance with the Contract.

E.         A requirement that the property owner annually expend an amount equal to a minimum of 10% of the tax savings attributed to the Contract to the preservation and maintenance of the

Landmark Property; and

F.         A provision that the Contract is binding upon and shall inure to the benefit of, all successors in interest of the owners; and that a successor in interest shall have the same rights and obligations under the Contract as the original owners who entered into the Contract.

 

In addition to the Municipal Code provisions above, the proposed historical property contract includes a condition that the owner shall rehabilitate the property in compliance with the Secretary of the Interior’s Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring and Reconstructing Historic Buildings (1995), Weeks and Grimmer.  By agreeing to the provisions of the historical property contract, the property owner will assure the City that the Landmark property will be preserved and rehabilitated.  In exchange, the property owner will enjoy property tax relief that will enable him to maintain the property.  In this way, the City and the applicant become partners in the preservation of the Landmark property. 

 

In the case of the Twohy building the owner is completing a substantial rehabilitation. The proposed historical property contract recognizes this recent investment by providing a ten-percent credit in the first year of the contract (Item 3.d.).

 

State legislation requires the City Clerk to record a historical property contract with the County Recorder by December 31st of any calendar year in order to be effective during the following calendar year.

 

 

Required Findings of Historic Property Contracts

 

In accordance with Municipal Code Chapter 13.48, the City Council may approve a historical property contract only if the following findings are made:

 

A.        The proposed contract is consistent with the General Plan;

B.         The proposed contract would provide greater protection for the landmark property than is

otherwise provided by the provisions of Municipal Code Chapter 13.48; and

C.         The proposed contract complies with the required provisions of historical property contracts

listed above.

 

Historic Landmarks Commission Public Hearing

 

On November 5, 2003, the Historic Landmarks Commission held a public hearing to consider the proposed contract. The Commission voted 6-0-1 (Leong absent) to recommend that the City Council approve the historical property contract. The Commission recommended that the City Council make the following findings:

 

A.        The proposed contract is consistent with the General Plan Land Use designation of Core Area because (1) the proposed mixed use of residential and commercial is consistent with the Land Use/Transportation Diagram Designation of Core Area, and (2) the proposal encourages the continuation and appropriate expansion of Federal and State programs which provide tax and other incentives for the rehabilitation of historically or architecturally significant structures.

 

B.         The proposed contract provides greater protection for the landmark property than is otherwise provided by the provisions of Municipal Code Chapter 13.48 because the owner, in partnership with the City, may use property tax relief to rehabilitate and maintain the property in accordance with the standards for historic property, Exhibit “B” and the preservation plan, Exhibit “C”.

 

C.         The proposed contract complies with the required provisions of historical property contracts which are listed above.

 

PUBLIC OUTREACH

 

The property owner has requested the historical property contract.  The Historic Landmarks Commission held a public hearing on the proposed historical property contract at the

November 5, 2003 meeting.  Public Notices were published and mailed to property owners within a 500-foot radius.

 

COORDINATION

 

Preparation of the historical property contract has been coordinated with the City Attorney’s Office.

 

 

CEQA

 

Exempt. MA03-002

 

Under the provisions of Section 15331 of the State Guidelines for Implementation of the California Environmental Quality Act (CEQA), this project is found to be exempt from environmental review in that the project is limited to the rehabilitation of a historical resource in a manner consistent with the Secretary of the Interior’s Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring and Reconstructing Historic Buildings (1995), Weeks and Grimmer.

 

 

STEPHEN M. HAASE

Secretary, Historic Landmarks Commission

 

Attachments

·        Dept. of Parks and Recreation Forms

·        Photo

·        Site Plan

·        Draft Contract

 

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