Title
Extinguish Conservation Easement for 302 E. Pasadena Ave. (Ordinance S-49011)
Description
Request City Council authorization to extinguish the conservation easement recorded on the property at 302 E. Pasadena Ave. in the Windsor Square Historic District. Further request authorization for the City Treasurer to accept all funds related to this item.
Report
Summary
In 2007, the City Council approved a $10,000 grant using 2006 Historic Preservation (HP) general obligation bond funds to assist with installing a new wood shingle roof on the subject property. In exchange for the grant funds, the property owner at the time, Anthony K. Oexman, executed a 15-year Deed of Conservation Easement that was recorded on Oct. 31, 2008, and runs with the property until Aug. 7, 2023, (see Attachment A). The conservation easement covers the entire parcel and obligates the property owner to a higher standard of preservation than is required for other historic properties without a conservation easement.
In 2011, the property was placed in a revocable living trust, with Mr. Oexman as the trustee. He passed away in 2016, and his daughter, Sage A. Oexman, became the successor trustee. In 2018, she transferred the property from the trust to her personal ownership. Later that year, on Nov. 27, 2018, Ms. Oexman sold the property to John C. Smeck, III. On Dec. 14, 2021, Mr. Smeck conveyed the property to himself and his wife, Margaret Ragland Smeck, as co-owners. The Smecks are the current owners of the property.
On July 13, 2022, Ms. Smeck contacted HP staff to inquire about replacing the home’s steel casement windows due to energy efficiency issues. Staff explained that there was a conservation easement on the property that obligated the owners to a higher standard of preservation and that replacement of the original windows would not be allowed under the terms of the easement. Staff encouraged Ms. Smeck to consider other measures to address energy efficiency, such as installing film over the existing window glass, or upgrading to a low-E glass while retaining the original steel sash. Staff also recommended conducting an energy audit of the house, which can often reveal problem areas besides windows with more cost-effective solutions. Staff also noted that the easement was set to expire next year, at which point window replacement could occur without a building permit or HP review.
Two weeks later, on July 28, 2022, Ms. Smeck contacted HP staff again to express concerns about emergency repairs that were needed to her roof. She shared a proposal that she had received from a contractor to place heavy plastic on two areas of the roof where leaks were present (see Attachment B). Given the emergency situation, HP staff indicated they would allow Ms. Smeck to replace the roof prior to the expiration of the easement. Additionally, staff told Ms. Smeck that replacement of the roof with either new wood shingles or new dimensional shingles would be acceptable. However, Ms. Smeck indicated it was her strong preference to simply extinguish the easement so she could proceed with both the roof repairs and window replacement unencumbered. On Aug. 3, 2022, HP staff received the attached letter from Mr. and Ms. Smeck requesting that the conservation easement be extinguished (see Attachment C).
The City’s policy to address the extinguishment of the conservation easement is found in Section 6 of the recorded document, which reads:
"During the first half of the Term of the Easement, the Property Owner shall reimburse the City the full amount of the Purchase Price. Thereafter, on each anniversary of the execution of the Easement, the amount the Property Owner shall pay in the event of a default shall be reduced by a pro-rata portion of the original amount of the Purchase Price for the remaining years of the Term."
The schedule below indicates the repurchase price that would be required for each year of the term:
Year Date Repayment
1 8/7/2008 $10,000
2 8/7/2009 $10,000
3 8/7/2010 $10,000
4 8/7/2011 $10,000
5 8/7/2012 $10,000
6 8/7/2013 $10,000
7 8/7/2014 $10,000
8 8/7/2015 $10,000
9 8/7/2016 $8,750
10 8/7/2017 $7,500
11 8/7/2018 $6,250
12 8/7/2019 $5,000
13 8/7/2020 $3,750
14 8/7/2021 $2,500
15 8/7/2022 $1,250
End 8/7/2023 $0
Since the proposed repurchase would take place during Year 15 (between Aug. 7, 2022, and Aug. 7, 2023), the required repayment amount would be $1,250. As an alternative to the $1,250 repayment, staff offered to recommend that both the roof and the windows be released from the conservation easement, thereby allowing their replacement, in exchange for the term of the easement being extended another 10 years. Ms. Smeck indicated that she did not want to extend the easement and simply wants it extinguished.
Staff requests City Council approval to extinguish the conservation easement currently recorded on the property at 302 E. Pasadena Ave., with the stipulation that the required repurchase price of $1,250 be paid to the City prior to the easement being extinguished. Further request authorization for the City Treasurer to accept all funds related to this item.
Concurrence/Previous Council Action
The Historic Preservation Commission recommended approval of this item on Aug. 15, 2022, by a 9-0 vote.
Location
302 E. Pasadena Ave.
Council District: 4
Department
Responsible Department
This item is submitted by Deputy City Manager Alan Stephenson and the Planning and Development Department.