Cities Index.
Draft Mills Act Contract and Exhibits

City Council and Authorities Concurrent
August 19, 2025

Document
Draft Mills Act Contract and Exhibits
Meeting
August 19, 2025
Body
City Council and Authorities Concurrent
Pages
8
Original file
596 KB
Text extracted from the city's file for reading and search. Open the original on santaclara.legistar1.com. That file is the official record.
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RECORD WITHOUT FEE
PURSUANT TO GOV'T CODE SECTION 6103
Recording Requested by:

Office of the City Attorney
City of Santa Clara, California
When Recorded, Mail to:

Office of the City Clerk
City of Santa Clara
1500 Warburton Avenue
Santa Clara, CA 95050
Form per Gov't Code Section 27361.6 [SPACE ABOVE THIS LINE FOR RECORDER'S USE]

HISTORIC PROPERTY PRESERVATION AGREEMENT
This Agreement, (herein, "Agreement"), is made and entered into this ___ day of ___________, 2025, ("Effective Date"), by and between Robert Andre Hesse and Yuen Yung Tiffany Ng, owners of certain real property located at 1435 Lexington Street (“OWNERS”) and the City of Santa Clara, California, a chartered California municipal corporation with its primary business address at 1500 Warburton Avenue, Santa Clara, California 95050 ("CITY").

CITY and OWNERS may be referred to herein individually as a "Party" or collectively as the "Parties" or the "Parties to this Agreement."
A. Recitals.
(1) California Government Code Section 50280, et seq. authorizes the CITY to enter into a contract with the OWNERS of qualified Historical Property to provide for the use, maintenance, and restoration of such Historical Property so as to retain its characteristics as property of historical significance.
(2) OWNERS possesses fee title in and to that certain real property, together with associated structures and improvements thereon, shown on the 2025 Santa Clara County Property Tax Rolls as Assessors' Parcel Number 269-26-023, and generally located at the street address 1435 Lexington Street, in the City of Santa Clara ("Historic Property"). A legal description of the Historic
Property is attached hereto as "Legal Description," marked as "Exhibit "A," and incorporated herein by reference.
(3) The Historic Property is on the City of Santa Clara Architecturally or Historically Significant Properties list. OWNERS submitted a Mills Act Proposal to City on September 24, 2024. The Proposal included a Primary Record from the State of California’s Department of Parks and Recreation. A true and correct copy of the Proposal is attached to this Agreement as “Exhibit B”.
(4) CITY and OWNERS, for their mutual benefit, now desire to enter into this Agreement both to protect and preserve the characteristics of historical significance of the Historic Property and to qualify the Historic Property for an assessment of valuation pursuant to Section 439.2 of the California Revenue and Taxation Code.

Historic Property Preservation Agreement/1435 Lexington Street Typed: 12/06/2024

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B. Agreement.

NOW, THEREFORE, CITY and OWNERS, in consideration of the mutual covenants and conditions set forth herein, do hereby agree as follows:
(1) Effective Date and Term of Agreement . The term of this Agreement shall commence on the effective date of this Agreement and shall remain in effect for a term of ten (10) years thereafter. Each year upon the anniversary of the effective date, such term will automatically be extended as provided in paragraph 2, below.
(2) Renewal.
(a) Each year on the anniversary of the effective date of this Agreement, ("renewal date"), one (1) year shall automatically be added to the term of this Agreement unless notice of nonrenewal is mailed as provided herein.
(b) If either the OWNER S or CITY desires in any year not to renew the Agreement, OWNERS or CITY shall serve written notice of nonrenewal of the Agreement. Unless such notice is served by OWNER S to CITY at least ninety (90) days prior to the annual renewal date, or served by CITY to OWNERS at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the balance of the remaining term of the Agreement as provided herein.
(c) OWNERS may make a written protest of a nonrenewal notice issued by CITY. CITY may, at any time prior to the annual renewal date of the Agreement, withdraw its notice to OWNERS of nonrenewal. If either CITY or OWNERS serves notice to the other of nonrenewal in any year, the Agreement shall remain in effect for the balance of the term then remaining, from either original execution date or the last renewal date of the Agreement, whichever is applicable.
(3) Standards for Histor ical Property. Du ring the ter m of thi s Agreeme nt, the Historic Property shall be subject to the following conditions, requirements, and restrictions:
(a) OWNERS shall preserve and maintain the characteristics of historical significance of the Historic Property. "The Secretary of the Interior's Standards for Rehabilitation," marked as “Exhibit A” to this agreement, and incorporated herein by this reference, contains a list of those minimum standards and conditions for maintenance, use, and preservation of the Historic Property, which shall apply to such property throughout the term of this Agreement.
(b) OWNERS shall, when necessary or as determined by the Director of Planning and Inspection, restore and rehabilitate the property to conform to the rules and re
gulations of the Office of Historic Preservation of the State Department of Parks and Recreation, the United States Secretary of the Interior Standards for Rehabilitation and the California Historical Building Code and in accordance with the attached schedule of potential home improvements, drafted by the OWNERS and approved by the City Council, attached hereto as "The Description of the Preservation and Restoration Efforts," marked as “Exhibit B” to this agreement, and incorporated herein by this reference.

Historic Property Preservation Agreement/1435 Lexington Street Typed: 12/06 /2024
Historic Property Preservation Agreement/1435 Lexington Street Typed: 12/06/2024

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(c) OWNERS shall allow, and CITY requires, that after five (5) years, and every five (5) years thereafter, an inspection of the property ’s interior and exterior shall be conducted by a party appointed by CITY, to determine OWNERS’ continued compliance with the terms of this Agreement. OWNERS acknowledge that the required inspections of the interior and exterior of the property were conducted prior to the effective date of this Agreement. (4) Provision for Information.
(a) OWNERS hereby agree to furnish CITY with any and all information requested by the CITY to determine compliance with the terms and provisions of this Agreement. (b) It shall be the duty of the OWNER S to keep and preserve, for the term of the Agreement, all records as may be necessary to determine the eligibility of the p roperty involved, and the OWNER S compliance with the terms and provisions of this Agreement, including, but not limited to blueprints, permits, historical and/or architectural review approvals, and schedules of potential home improvements drafted by the OWNERS and approved by the City Council.
(5) Cancellation.
(a) CITY, following a duly noticed public hearing as set forth in Cal ifornia Government Code Section 50280, et seq., shall cancel this Agreement or bring an action in court to enforce this Agreement if it determines any one of the following:
(i) the OWNER S breached any of the terms or conditions of this Agreement; or
(ii) the OWNERS have allowed the property to deteriorate to the point that it no longer meets standards for a qualified historic property. (b) CITY may also cancel this Agreement if it determines that:
(i) the OWNERS have allowed the property to deteriorate to the point that it no longer meets building standards of the City Code and the codes it incorporates by reference, including , but not limited to , the Uniform Housing Code, the California Historical Building Code, the California Fire Code, and the Uniform Code for the Abatement of Dangerous Buildings or; (ii) the OWNER S have not complied with any other local, State, or federal laws and regulations.
(iii) the OWNERS have failed to restore or rehabilitate the property in the manner specified in subparagraph 3(b) of this Agreement. (c) In the event of cancellation, OWNERS shall pay those cancellation fees set forth in Cal ifornia Government Code Section 50280, et seq. As an alternative to cancellation, OWNERS may bring an action in court to enforce the Agreement. (6) No Waiver of Breach.
(a) No waiver by CITY of any breach under this Agreement shall be deemed to be a waiver of any other subsequent breach. CITY does not waive any claim of breach by Historic Property Preservation Agreement/1435 Lexington Street Typed: 12/06/2024

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OWNERS if CITY does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for under the terms of this Agreement or in the City's laws and regulations are available to the City.
(7) Mediation.
(a) Any controversies between OWNERS and CITY regarding the construction or application of this Agreement, and claim arising out of this contract or its breach, shall be submitted to mediation upon the written request of one party after the service of that request on the other party.
(b) If a dispute arises under this contract, either party may demand mediation by filing a written demand with the other party.
(c) The parties may agree on one mediator. If they cannot agree on one mediator, there shall be three: one named in writing by each of the parties within five days after demand for mediation is given, and a third chosen by the two appointed. Should either party refuse or neglect to join in the appointment of the mediator(s) or to furnish the mediator(s) with any papers or information demanded, the mediator(s) may proceed ex parte. (d) A hearing on the matter to be arbitrated shall take place before the mediator(s) in the city of Santa Clara, County of Santa Clara, State of California, at the time and place selected by the mediator(s). The mediator(s) shall select the time and place promptly and shall give party written notice of the time and place at least fifteen (15) days before the date selected. At the hearing, any relevant evidence may be presented by either party, and the formal rules of evidence applicable to judicial procee dings shall not govern. Evidence may be admitted or excluded in the sole discretion of the mediator(s). The mediator(s) shall hear and determine the matter and shall execute and acknowledge the award in writing and cause a copy of the writing to be delivered to each of the parties.
(e) The submission of a dispute to the mediator(s) and the rendering of a decision by the mediator(s) shall be a condition precedent to any right of legal action on the dispute.

A judgment confirming the award may be given by any Superior Court having jurisdiction, or that Court may vacate, modify, or correct the award in accordance with the prevailing provisions of the California Mediation Act.
(f) Each party shall bear their own cost(s) of mediation. (8) Binding Effect of Agreement.
(a) The OWNERS hereby subjects the Historic Property described in Exhibit "A" hereto to the covenants, reservations, and restrictions as set forth in this Agreement. CITY and OWNERS hereby declare their specific intent that the covenants, reservations, and restrictions as set forth herein shall be deemed covenants running with the land and shall pass t o and be binding upon the OWNERS successors and assigns in title or interest to the Historic Property. Each and every contract, deed, or other instrument her einafter executed, covering, encumbering, or conveying the Historic Property, or any portion thereof, shall conclusively be held to have been executed, delivered, and accepted subject to the covenants, reservations, and restrictions expressed in this Agreement, regardless of whether such covenants, reservations, and restrictions are set forth in such contract, deed, or other instrument.

Historic Property Preservation Agreement/1435 Lexington Street Typed: 12/06/2024

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(b) CITY and OWNERS hereby declare their understanding and intent that the burden of the covenants, reservations, and restrictions set forth herein touch and concern the land in that OWNERS’ legal interest in the Historic Property. (c) CITY and OWNERS hereby further declare their understanding and intent that the benefit of such covenants, reservations, and restrictions touch and concern the land by enhancing and maintaining the historic characteristics and significance of the Historic Property for the benefit of the CITY, public (which includes, but is not limited to the benefit to the public street generally located at 1756 Fremont Street), and OWNERS.
(9) Notice.
(a) Any notice required to be given by the terms of this Agreement shall be provided at the address of the respective parties as specified below or at any other address as may be later specified by the parties hereto.

CITY: City of Santa Clara
Attn: City Clerk
1500 Warburton Avenue
Santa Clara, CA 95050
OWNERS: Robert Andre Hesse & Yuen Yung Tiffany Ng
1435 Lexington Street
Santa Clara, CA 95050
(b) Prior to entering a contract for sale of the Historic Property, OWNERS shall give thirty (30) days notice to the CITY and it shall be provided at the address of the respective parties as specified above or at any other address as may be later specified by the parties hereto. (10) No Partnership or Joint Enterprise Created . None of the terms, provisions, or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors, or assigns; nor shall such terms, provisions, or conditions cause them to be considered joint ventures or members of any joint enterprise. (11) Hold Harmless and Indemnification. To the extent permitted by law, OWNERS agree to protect, defend, hold harmless and indemnify CITY, its City Council, commissions, officers, agents, and employees from and against any claim, injury, liability, loss, cost, and/or expense or damage, however same may be caused, including all costs and reasonable attorney's fees in providing a defense to any claim arising there from for which OWNER S shall become legally liable arising from OWNERS ’ acts, errors, or omissio ns with respect to or in any way connected with this Agreement.
(12) Attorneys' Fees. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations, or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing pa rty in such proceeding may recover all reasonable attorney's fees to be fixed by the court, in addition to costs and other relief ordered by the court.
(13) Restrictive Covenants Binding . All of the agreements, rights, covenants, reservations, and restrictions contained in this Agreement shall be binding upon and shall inure to Historic Property Preservation Agreement/1435 Lexington Street Typed: 12/06/2024

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the benefit of the parties herein, their heirs, successors, legal representatives, assigns and all persons acquiring any part or portion of the Historic Property, whether by operation of law or in any manner pursuant to this Agreement.
(14) Mills Act Historic Property Contract Application Requirements . An application for a Mills Act Historic Property Contract shall be made through the Planning Division and shall include the following:
a. a Historic Resources Inventory form;
b. the description of the preservation or restoration efforts to be undertaken as referenced in paragraph 3 (b) as Exhibit "B";
c. a statement of justification for the Mills Act Historic Property designation and reassessment; and,
d. the Mills Act Historic Property Contract filing fee pursuant to paragraph 17. (15) Mills Act Historic Property Contract Approval. Based upon the Historical and Landmarks Commission's ("Commission") review of the Mills Act Historic Property Contract criteria and recommendation to Council, and based upon the recommendation and approval by Council, a Mills Act Historic Property Contract may be entered into with OWNERS. The decision of the City Council shall be final and conclusive in the matter. (16) Recordation and Notice. No later than twenty (20) days after the parties execute and enter into this Agreement, the CITY shall cause this Agreement to be recorded in the office of the County Recorder of the County of Santa Clara.
(17) Fees. The Planning Department may collect such Mills Act Historic Property Contract application fee of $8,735.80 (eight thousand, seven hundred, and thirty-five dollars and eighty cents), or other fees for the administration of this contract as are authorized from time to time by the City Council. Such fees do not exceed the reasonable cost of providing the service for which these fees are charged. OWNERS shall pay the County Recorder's Office recordation fees for recordation of this Mills Act Histo ric Property Contract and the recordation of the OWNER S updated Historic Resources Inventory form.
(18) Ordinary Maintenance. Nothing in this contract shall be construed to prevent the ordinary maintenance or repair of any exterior architectural feature in or on any Historic Property covered by this contract that does not involve a change in design, material, or external appearance thereof, nor does this contract prevent the construction, reconstruction, alteration, restoration, demolition, or removal of any such external architectural feature when the Director of Planning and Inspection determines that such action is required for the public safety due to an unsafe or dangerous condition which cannot be rectified through the use of the California Historical Building Code and when such architectural feature can be replaced according to the Secretary of Interior's Standards.
(19) California Historic al Building Code . The California Historic al Building Code ("CHBC") provides alternative building regulations for the rehabilitation, preservation, restoration, or relocation of structures desi gnated as Historic Properties. The CITY's building Historic Property Preservation Agreement/1435 Lexington Street Typed: 12/06/2024

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permit procedure shall be utilized for any Historic Property which is subject to the provisions of this Agreement, except as otherwise provided in this Agreement or the CHBC. Nothing in this Agreement shall be deemed to prevent any fire, building, health, or safety official from enforcing laws, ordinances, rules, regulations, and standards to protect the health, safety, welfare, and property of the OWNERS or occupants of the Historic Property or the public. (20) Conservation Easements.
(a) Conservation easements on the facades of the Historical Property may be acquired by the CITY, or on the CITY's behalf, by a nonprofit group designated by the CITY through purchase, donation, or condemnation pursuant to California Civil Code Section 815. (b) The OWNERS, occupant, or other person in actual charge of the Historical Property shall keep in good repair all of the exterior portions of the Historic Property, and all interior portions thereof whose maintenance is necessary to prevent deterioration and decay of any exterior architectural feature.
(c) It shall be the duty of the Director of Planning and Building Inspection to enforce this section.
(21) Severability. If any section, sentence, clause, or phrase of this Agreement is, for any reason, held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, or by subsequent preemptive legislation, such decision shall not affect the validity and enforceability of the remaining provisions or portions of this Agreement. CITY and OWNERS hereby declare that they would have adopted this Agreement, and each section, sentence, clause, or phrase thereof, irrespective of the fac t that any one or more sections, subsections, sentences, clauses, or phrases may be declared invalid or unconstitutional. (22) Integrated Agreement - Totality of Agreement. This Agreement embodies the agreement between CITY and OWNER S and its terms and conditions. No other understanding, agreements, or conversations, or otherwise, with any officer, agent, or employee of CITY prior to execution of this Agreement shall affect or modify any of the terms or obligations contained in any documents comprising this Agreement. Any such verbal agreement shall be considered as unofficial information and in no way binding upon CITY. (23) Captions. The captions of the various sections, paragraphs and subparagraphs are for convenience only and shall not be considered or referred to in resolving questions of interpretation.
(24) Statutes and Law Governing Contract . This Agreement shall be governed and construed in accordance with the statutes and laws of the State of California. (25) Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto.

Historic Property Preservation Agreement/1435 Lexington Street Typed: 12/06/2024

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IN WITNESS WHEREOF, CITY and OWNER S have executed this Agreement on the day and year first written above.

CITY OF SANTA CLARA, CALIFORNIA,
a chartered California municipal corporation
APPROVED AS TO FORM:

GLEN R. GOOGINS
City Attorney
JŌVAN D. GROGAN
City Manager
City of Santa Clara
1500 Warburton Avenue
Santa Clara, CA 95050
Telephone: (408) 615-2210
Fax: (408) 241-6771
“CITY”
Robert Andre Hesse & Yuen Yung Tiffany Ng
Owners of 1435 Lexington Street
By: _____________________________
Robert Andre Hesse & Yuen Yung Tiffany Ng
1435 Lexington Street
Santa Clara, CA 95050
“OWNERS”
Exhibits:

A – Standards for Rehabilitation
B – Restoration Schedule

10 YEAR PLAN1435 Lexington St., Santa Clara, CA 95050 Given the extensive restoration projects that were recently completed, the subject property does not

require

significant

alterations

and

already

possesses

the

historical

qualities

that

represent

the

“Old

Quad.”

We

plan

to

maintain

the

property

so

that

it

continues

to

embody

the

“look

and

feel”

of

the

neighborhood

and

anticipate

performing

the

following

maintenance

projects:

YEAR RANGE
ITEM Description Estimated Cost
2025 TO 2027
Strip paint from front door; restore/refinish front door.

The front door is made of solid wood. Restore the front door (i.e., remove paint) and stain the original wood grain to accentuate the door’s features. $2,000
Exterior lighting enhancements.

The backyard and front yard lack lighting around high traffic areas. We would also like to replace the front porch light from an aesthetic perspective. Install lighting fixtures to illuminate and enhance the home, walkways, and other landscaping details to highlight the architectural and design features of the property. $3,000
Enhance front and back yard landscaping; put down sod for backyard lawn.

Install drought-tolerant sod throughout the backyard. Plant environmentally-friendly flowers, shrubbery, and other plants throughout both yards. Repair drip system for both yards as water conservation measure. $17,000
Inspect for pests/termites; repair any dry rot and other significant deficiencies.

Engage property inspector to survey property for termites and other pests. Remediate significant issues identified in the inspection report requiring immediate attention.

TBD
2028 TO 2030
Repair pulley systems on first floor windows.

Several street-facing windows on the first floor have frayed ropes for the pulley system that opens/closes the windows. Replace ropes to repair pulley system for applicable windows. $10,000
Repaint the exterior of house.

The home was painted 5+ years ago and certain areas of the exterior panelling already show signs of deterioration. Repaint the panels, trim pieces, and other architectural features (such as the spindlework, decorative block frieze, etc.) to make these features more vibrant and to improve the durability of the home’s exterior. $18,000
Install AC unit. Summers in the Bay Area are becoming increasingly hotter and with longer periods of extremely high temperatures. Install central AC throughout home to maintain indoor temperature in an energy-efficient manner. $10,000
2031 TO 2033
Driveway improvements.

The driveway is currently composed of small pieces of underlying granite rock and a top layer of gold fines. The layer-by-layer composition of the driveway has eroded through the years and its messiness is a distraction from the overall “look and feel” of the home. Improve driveway to make it a more well-defined, “cleaner” feature and more conducive for water drainage and a (i.e., pavement, cement, pavers, etc.). $15,000
Improvements to backyard wood deck.

The wood deck is a central feature of the backyard, but the paint is showing signs of wear and tear. $3,000
The contemplated improvements include repainting the wood deck to compliment the exterior paint, closing off the area underneath the porch to prevent rodents and other animals from being a nuisance, and adding another ingress/egress point on the deck.

Remove second floor carpeting; install wood flooring.

The second floor of the property currently has carpeting installed in the master bedroom, office, and guest bedroom. However, the flooring on the entirety of the first floor (kitchen, guest bedroom, office, living room, dining room) is already wood. Remove all carpeting on second floor and install wood flooring as a way to increase congruity of features across first and second floors. $15,000
2034 TO 2035
Replace/repair roofing.

The current shingle roofing will likely be needing repair during these years. Replace/repair current roof with new shingles that will compliment exterior paint and improve heat circulation throughout home. $22,000
Inspect for pests/termites; repair any dry rot and other significant deficiencies.

Engage property inspector to survey property for termites and other pests. Remediate significant issues identified in the inspection report requiring immediate attention.

TBD
Interior and exterior improvements to garage.

The garage is currently unfinished and used primarily for outdoor storage space. Improve garage by turning it into a functioning workspace for hobbies and entertainment. This includes installing drywall and insulation, $30,000
renovating garage bathroom, and adding flooring.

We also expect to perform regular maintenance projects as needs arise, including:
● Repairs to plumbing/electrical systems;● Landscaping front yard and backyard;● Gutter cleaning and repairs; and● HVAC cleaning and repairs.

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