2025 - 51407 Velasco (Avenida) Chanco & Paganelli - Historic Preservation AgmtDOC # 2025-0229922
RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
City of La Quinta
Attn: City Clerk
La Quinta City Hall
78-495 Calle Tampico
La Quinta, CA 92253
07/29/2025 10:47 AM Fees: $0.00
Page 1 of 19
Recorded in Official Records
County of Riverside
Peter Aldana
Assessor -County Clerk -Recorder
"This document was electronically submitted
to the County of Riverside for recording"
Receipted by: ALEJANDRA#1032
Space Above This Line For Recorder's Use
(Exempt from Recording Fee per Government Code Sections 6103 and 27383)
HISTORIC PROPERTY PRESERVATION AGREEMENT
("MILLS ACT" CONTRACT)
This HISTORIC PRESERVATION AGREEMENT ("Agreement") is made pursuant to
California Government Code section 50280 et seq., commonly known as the "Mills Act,"
and entered into this 15 day of July , 20 25("Effective Date"), by and between
the CITY OF LA QUINTA, an California municipal corporation and charter city ("City"),
and Michael Paganelli, a Single Man and Michael Chanco, a Single Man as Joint Tenants
("Owner"), for the maintenance and preservation of the real property located in the City
of La Quinta, California, more specifically described in this Agreement. The City and
Owner are sometimes hereinafter individually referred to as "Party" and hereinafter
collectively referred to as the "Parties".
RECITALS
A. WHEREAS, Owner holds fee title in and to that certain real property, together with
associated structures and improvements thereon, generally located at the street
address 51407 Avenida Velasco La Quinta, California, and more particular
described in the legal description attached hereto as Exhibit A and incorporated
herein by this reference ("Historical Property"); and
B. WHEREAS, the Mills Act authorizes the City to enter a contract with the owner of
a historical property for a minimum of ten (10) years for the purpose of preserving
the unique character; and
C. WHEREAS, in accordance with La Quinta Municipal Code Section 7.06.030, on
December 3, 2024 (the "Historic Designation Date"), the La Quinta City Council
("City Council") adopted Resolution No. 2024-045 attached hereto as Exhibit B and
incorporated herein by this reference (the "Historic Designation Resolution"),
Based on the supporting documents and materials presented to the City Council,
the adoption of the Historic Designation Resolution designated the Historical
Property as a historical or architecturally significant resource pursuant to the
applicable provisions in Title 7 of the La Quinta Municipal Code ("LQMC"), making
DOC #2025-0229922 Page 2 of 19
it a "qualified historical property" for the purposes of the Mills Act (Gov. Code,
§ 50280.1(b); and
D. WHEREAS, City and Owner desire to enter into this Agreement for the purpose of
protecting and preserving the characteristics of historical significance of the
Historical Property that help provide the community with its unique civic identity
and character; and
E. WHEREAS, in consideration for abiding by the terms of this Agreement, and,
pursuant to the provisions of California Revenue and Taxation Code section 439.2
et seq., Owner shall be entitled to qualify for a reassessment of valuation of the
Historical Property and any corresponding adjustment in property taxes resulting
therefrom, in accordance with applicable state law.
TERMS
NOW, THEREFORE, the City and Owner, in consideration of and subject to the mutual
covenants and conditions contained herein, including the foregoing recitals that are a
substantive part of this Agreement and incorporated herein, do hereby agree as follows:
SECTION 1. TERM.
1. Term. The term of this Agreement shall remain in effect for ten (10) years from the
Effective Date.
SECTION 2. YEARLY RENEWAL.
2. Yearly Renewal. On the anniversary date of the Effective Date ("Renewal Date"), an
additional one (1) year shall be added automatically to the term of the Agreement,
unless a Notice of Nonrenewal is provided pursuant to Section 2.1.
2.1. Nonrenewal. If either the City or Owner decides to not renew the Agreement, they
must provide the other party a written Notice of Nonrenewal prior to the Renewal
Date. Notice must be served by the Owner upon the City within ninety (90) days
prior to the Renewal Date or by the City upon the Owner within sixty (60) days
prior to the Renewal Date; otherwise, one (1) year shall be added to the term of
the Agreement. Once a Notice of Nonrenewal is filed, the Agreement shall remain
in effect for the balance of the period remaining in the term.
2.2.Owner Protest. Upon receipt of a Notice of Nonrenewal from the City, within fifteen
(15) days, the Owner may submit a written protest of the Notice of Nonrenewal.
The City may withdraw a Notice of Nonrenewal at any time prior to the Renewal
Date.
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DOC #2025-0229922 Page 3 of 19
SECTION 3. STANDARDS FOR PRESERVATION OF HISTORICAL PROPERTY.
3. Standards for Preservation of Historical Property. During the term of this Agreement,
the Historical Property shall be subject to the following conditions, requirements, and
restrictions:
3.1. Throughout the term of this Agreement, Owner shall preserve and maintain the
culturally and historically significant characteristics of the Historical Property as
determined by the City Council and memorialized in the Historic Designation
Resolution and the supporting documents and materials presented to the City
Council in connection with the adoption of the Historic Designation Resolution.
Additionally, Owner shall comply with the provisions in Title 7 of the LQMC and
shall obtain any applicable permits necessary to protect, preserve, restore, and
rehabilitate the Historic Property so as to maintain its historical and cultural
significance.
3.2.Owner shall preserve, restore, and/or rehabilitate the Historical Property in
accordance with the minimum standards and conditions under the applicable rules
and regulations of the Office of Historic Preservation of the California Department
of Parks and Recreation, the United States Secretary of the Interior's Standards
for Rehabilitation, the California Historical Building Code, and any rules and
regulations adopted or established by the City regarding the restoration and
rehabilitation of historical properties.
SECTION 4. INSPECTION.
4. Inspection. In order to comply with the Mills Act (Gov. Code, § 50282(a)), every five
(5) years from the Effective Date of the Agreement, the City shall have the right to
inspect the interior and exterior of the Historical Property to ensure the Owner's
continued compliance with the Agreement. Owner shall allow reasonable periodic
inspections of the Historical Property as may be necessary for the City to determine
compliance with the terms and provisions of this Agreement.
SECTION 5. PROVISION OF INFORMATION FOR COMPLIANCE.
5. Provision of Information for Compliance. Owner shall provide to the City any
information that the City deems necessary or advisable to determine the Historical
Property's continued eligibility.
SECTION 6. BREACH BY OWNER.
6. Notice of Breach; Opportunity to Cure. If Owner breaches any provision of this
Agreement, City may deliver written notice to Owner, pursuant to Section 13 of this
Agreement, detailing Owner's violations. If such violation is not corrected to the
reasonable satisfaction of City within thirty (30) days after the date of the notice of
violation, or within such a reasonable time as may be required to cure the violation
DOC #2025-0229922 Page 4 of 19
(provided the acts to cure the violation are commenced within thirty (30) days and
thereafter diligently pursued to completion within ninety (90) days thereafter), the City
may, without further notice, declare Owner to be in breach of this Agreement. Upon
City's declaration of Owner's breach, City may pursue any remedy available under
local, state, or federal law, including those specifically provided for in this section.
6.1. Cancellation. Upon finding that Owner has breached any of the conditions of the
Agreement or has allowed the Historical Property to deteriorate such that it no
longer meets the standards for a qualified historical property, the City may cancel
the Agreement or bring an action in court to enforce the Agreement. If such
cancellation occurs, the City will assess a penalty of 12.5% of the pre -Mills Act
valuation in accordance with the Mills Act (Gov. Code, § 50286). The City may
initiate cancellation only if a breach of contract occurs. Upon cancellation by either
party, the property taxes shall be assessed to the level they would have but for
the Mills Act Contract. Prior to any cancellation of this Agreement, the City shall
follow applicable provisions in the Mills Act and the procedures in Title 7 of the
LQMC for de -designation of a historic landmark, which shall at a minimum include
notice of and holding a public hearing.
6.2. Alternative Remedies. In lieu of cancellation of the Agreement for breach, a
landowner that is a party to the Agreement may bring an action in court to enforce
the Agreement, including but not limited to an action for specific performance or
injunction.
SECTION 7. DESTRUCTION OF PROPERTY.
7. Destruction of Property. If more than sixty percent (60%) of the original structure(s)
and/or improvements that supported the designation of a historic landmark on the
Historical Property must be replaced due to earthquake, fire, flood, or other natural
disaster, this Agreement shall be subject to cancellation because the historical value
of the structure will have been destroyed. Prior to any cancellation of this Agreement,
the City shall follow applicable provisions in the Mills Act and the procedures in Title 7
of the LQMC for de -designation of a historic landmark, which shall at a minimum
include notice of and holding a public hearing.
SECTION 8. EMINENT DOMAIN; CANCELLATION.
Eminent Domain; Cancellation. If the 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 City determines that the acquisition frustrates the purpose
of the Agreement, the Agreement shall be subject to cancellation. Prior to any
cancellation of this Agreement based on the provisions in this Section 7, the City shall
follow applicable provisions in the Mills Act and the procedures in Title 7 of the LQMC
for de -designation of a historic landmark, which shall at a minimum include notice of
and holding a public hearing. If this Agreement is cancelled pursuant to this Section 8,
no fee pursuant to Section 6.1 of this Agreement and Government Code
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DOC #2025-0229922 Page 5 of 19
Section 50286 shall be imposed unless otherwise required to be paid pursuant to state
or federal law (or judicial or governmental agency order issued pursuant thereto).
SECTION 9. WAIVER.
9. Waiver. City does not waive any claim of default by Owner if City does not enforce or
cancel this Agreement. All other remedies at law or in equity which are not otherwise
provided for in this Agreement or in City's regulations governing historical properties
are available to the City to pursue in the event that there is a breach of this Agreement.
No waiver by City of any breach or default under this Agreement shall be deemed to
be a waiver of any other subsequent breach thereof or default hereunder.
SECTION 10. BINDING EFFECT OF AGREEMENT
10. Binding Effect of Agreement. Owner hereby subjects the Historical Property to the
covenants, conditions, and restrictions set forth in this Agreement. City and Owner
hereby declare their specific intent that the covenants, conditions, and restrictions set
forth herein shall be deemed covenants running with the land and shall inure to and
be binding upon Owner's successors and assigns in title or interest to the Historical
Property. Each and every contract, deed, or other instrument herein after executed,
covering, or conveying the Historical Property, or any portion thereof, shall
conclusively be held to have been executed, delivered, and accepted subject to the
covenants, reservations, and restrictions are set forth in such contract, deed, or other
instrument.
SECTION 11. COVENANTS RUN WITH THE LAND
11. Covenants Run with the Land. City and Owner 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 it restricts the use and development of the
Historical Property. City and Owner 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 cultural and historical
characteristics and significance of the Historical Property for the benefit of the public
and Owner.
11.1. Binding on Owner and Successor and Assiqns. The Historic Property shall
be held, sold, conveyed, hypothecated, encumbered, used, occupied and
improved subject to the covenants, conditions, and restrictions set forth in this
Agreement. The covenants, conditions, restrictions, reservations, equitable
servitudes, liens and charges set forth in this Agreement shall run with the Historic
Property and shall be binding upon Owner and all persons having any right, title
or interest in the Historic Property, or any part thereof, their heirs, and successive
owners and assigns, shall inure to the benefit of City and its successors and
assigns, and may be enforced by City and its successors and assigns. The
covenants established in this Agreement shall, without regard to technical
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DOC #2025-0229922 Page 6 of 19
classification and designation, be binding for the benefit and in favor of City and
its successors and assigns, and the parties hereto expressly agree that this
Agreement and the covenants herein shall run in favor of City, without regard to
whether City is or remains an owner of any land or interest therein to which such
covenants relate. However, all such covenants and restrictions shall be deemed
to run in favor of all real property owned by City which real property shall be
deemed the benefited property of such covenants and this Agreement shall create
equitable servitudes and covenants appurtenant to all real property owned by City
and running with the Historic Property in accordance with the provisions of Civil
Code Section 1468.
11.2. City as Beneficiary of Covenants. City is deemed the beneficiary of the
terms and provisions of this Agreement and of the covenants running with the land,
for and in its own right and for the purposes of protecting the interests of the
community and other parties, public or private, in whose favor and for whose
benefit this Agreement and the covenants running with the land have been
provided. Owner hereby declares its understanding and intent that the burden of
the covenants set forth herein touch and concern the land and that the Owner's
interest in the Historic Property is rendered less valuable thereby. Owner hereby
further declares its understanding and intent that the benefit of such covenants
touch and concern the land by enhancing and increasing the enjoyment and use
of the Historic Property as a historic resource within the City and furthering the
City's interest in historic preservation for the benefit of the City's residents and
visitors and general welfare.
SECTION 12. RECORDATION.
12. Signatures and Recordation. No later than ten (10) days after the approval by the City
Council of this Agreement, Owner shall fully execute and have notarized this
Agreement, and deliver the original to the City Clerk's Office for execution by the City.
No later than thirty (30) days after (i) receipt of this Agreement signed and notarized
by Owner or (ii) the Effective Date of this Agreement, whichever is later, the City Clerk
shall record or cause to be recorded the Agreement in the Official Records for
Riverside County, California ("Recorder's Office"), and shall provide Owner with a
conformed copy of the recorded Agreement. In the event this Agreement is cancelled
pursuant to the terms and conditions of this Agreement, the City shall execute and
record, without the need for countersignature by the Owner, a "Notice of Contract
Cancellation" in the Recorder's Office within thirty (30) days of such cancellation, and
the City shall provide Owner with a conformed copy of the recorded Notice of Contract
Cancellation.
SECTION 13. NOTICE.
13. Notice. 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 in writing and recorded as an
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DOC #2025-0229922 Page 7 of 19
amendment to this Agreement. All notices shall be in writing and shall be considered
given either: (i) when delivered in person to the recipient named below; or (ii) on the
date of delivery shown on the return receipt, after deposit in the United States mail in
a sealed envelope as either registered or certified mail with return receipt requested,
and postage and postal charges prepaid, and addressed to the recipient named below;
or (iii) five (5) days after deposit in the United States mail in a sealed envelope, first
class mail and postage prepaid, and addressed to the recipient named below; or (iv)
one (1) day after deposit with a known and reliable next -day document delivery service
(such as Fed Ex), charges prepaid and delivery scheduled next -day to the recipient
named below, provided that the sending party receives a confirmation of delivery from
the delivery service provider. All notices shall be addressed as follows:
City: City of La Quinta
Attn: City Clerk
78495 Calle Tampico
La Quinta, CA 92253
Copy to: Rutan & Tucker, LLP
Attn: William H. Ihrke, Esq.
18575 Jamboree Road, 9th Floor
Irvine, CA 92612
Owner: Michael Paganelli and Michael Chanco
51407 Avenida Velasco
La Quinta, CA 92253
SECTION 14. EFFECT OF AGREEMENT.
14. Effect of Agreement. 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
the parties to be considered joint venturers or members of any joint enterprise.
SECTION 15. INDEMNITY OF CITY.
15. Indemnity of City. Owner shall defend (with legal counsel of City's choosing), indemnify,
and hold harmless City and its elected officials, officers, agents and employees from
any actual or alleged claims, demands, causes of action, liability, loss, damage, or
injury to property or persons, including wrongful death, whether imposed by a court of
law or by administrative action of any federal, state, or local governmental agency,
arising out of or incident to (i) the direct or indirect use, development, operation, or
maintenance of the Historical Property by Owner or any contractor, subcontractor,
employee, agent, lessee, licensee, invitee, or any other person, whether such use is
pursuant to this Agreement or not; (ii) Owner's activities (whether personal, business,
social, or otherwise) in, on, over, under, and around, or otherwise in connection with,
the Historical Property; (iii) any effect, whether financial or otherwise, the designation
DOC #2025-0229922 Page 8 of 19
of the Historic Property as a historic resource and/or this Agreement (including the
recording of this Agreement) may have on any interest to the Historic Property held by
any third party, including but not limited to any effect on (A) any secured interest,
mortgage, deed of trust, and/or fixture filing a third party may hold as security for
payment of a debt or obligation, and/or (B) any easement, restrictive covenant,
equitable servitude, or other real property interest in the Historic Property held by a
third party pertaining to a right or ability to use (or limit the use of) the Historic Property;
and (iv) any restrictions on the use or development of the Historical Property based
on the application, implementation, and/or enforcement of Title 7 of the LQMC and/or
this Agreement. This indemnification for the benefit of the City shall be construed
broadly and includes, without limitation, the payment of all penalties, fines, judgments,
awards, decrees, attorneys' fees, and related costs or expenses, and the
reimbursement of City, its elected officials, employees, and/or agents for all legal
expenses and costs incurred by each of them, including expenses and costs on
appeal. Owner's obligation to indemnify shall survive the termination, cancellation, or
expiration of this Agreement and shall not be restricted to insurance proceeds, if any,
received by City, its elected officials, employees, or agents.
SECTION 16. LEGAL COSTS.
16. Legal Costs. In the event legal proceedings are brought by any party or parties to
enforce or restrain a violation of any of the covenants, conditions, or restrictions
contained herein, or to determine the rights and duties of any party hereunder, the
prevailing party in such proceeding may recover all reasonable attorneys' fees,
including fees incurred on appeal, to be fixed by the court, in addition to court costs
and other relief ordered by the court.
SECTION 17. SEVERABILITY.
17.Severability. In the event that any of the provisions of this Agreement are held to be
unenforceable or invalid by any court of competent jurisdiction, or by subsequent
preemptive legislation, the validity and enforceability of the remaining provisions, or
portions thereof, shall not be effected thereby.
SECTION 18. FURTHER ACTIONS AND INSTRUMENTS.
18. Further Actions and Instruments. Each of the Parties shall cooperate with and provide
reasonable assistance to the other to the extent contemplated hereunder in the
performance of all obligations under this Agreement and the satisfaction of the
conditions of this Agreement. Upon the request of either Party at any time, the other
Party shall promptly execute, with notarization or affidavit if reasonably required, and
file or record any required instruments and writings and take any actions as may be
reasonably necessary under the terms of this Agreement to carry out the intent and to
fulfill the provisions of this Agreement. City hereby authorizes the La Quinta City
Manager ("City Manager") to execute this Agreement on behalf of the City and to take
such other actions and negotiate and execute any additional agreements, documents,
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DOC #2025-0229922 Page 9 of 19
and instruments, as may be necessary or proper to fulfill the intent of the Parties under
this Agreement and to fulfill any of the City's obligations under this Agreement. The
City Manager may delegate her or his powers and duties under this Agreement to an
authorized management level employee of the City.
SECTION 19. AMENDMENTS.
19. Amendments. This Agreement may be amended, in whole or in part, only by written
instrument executed by the Parties hereto and recorded in the Recorder's Office no
later than thirty (30) days after said amendment has been fully executed and notarized
by the Parties. This Section 19 shall not apply to any Notice of Contract Cancellation
recorded after this Agreement has been cancelled, as provided herein.
SECTION 20. GOVERNING LAW AND VENUE.
20. Governing Law and Venue. This Agreement shall be construed and governed in
accordance with the laws of the State of California, without regard to conflict of law
principles. Any action at law or in equity brought by either of the Parties hereto for the
purpose of enforcing a right or rights provided for by this Agreement shall be tried in
a court of competent jurisdiction in the County of Riverside, State of California, and
the Parties hereby waive all provisions of law providing for a change of venue in such
proceedings to any other county.
SECTION 21. COUNTERPARTS.
21. Counterparts. This Agreement may be executed in two or more separate counterparts,
each of which, when so executed, shall be deemed to be an original. Such
counterparts shall, together, constitute and shall be one and the same instrument. This
Agreement shall not be effective until the execution and delivery by the Parties of at
least one set of counterparts. The Parties hereunder authorize each other to detach
and combine original signature pages and consolidate them into a single identical
original. Any one of such completely executed counterparts shall be sufficient proof of
this Agreement.
W
DOC #2025-0229922 Page 10 of 19
IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day
and year first above written.
ATTEST:
SIGNED IN COUNTERPART
Monika Radeva, City Clerk
APPROVED AS TO FORM:
SIGNED IN COUNTERPART
William H. Ihrke, City Attorney
"Owner"
Michael Paganelli, a Single Man and
Michael Chanco, a Single Man as Joint
Tenants _--.7 _,"
By:
Michael Paganelli, a Single -an
By: -
Michael Chanco, a Single Man
"City"
CITY OF LA QUINTA, a California
municipal corporation and charter city
By:
10_1
SIGNED IN COUNTERPART
Jon McMillen, City Manager
DOC #2025-0229922 Page 11 of 19
IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day
and year first above written.
"Owner"
Michael Paganelli, a Single Man and
Michael Chanco, a Single Man as Joint
Tenants
M
SIGNED IN COUNTERPART
Michael Paganelli, a Single Man
By: SIGNED IN COUNTERPART
Michael Chanco, a Single Man
"City"
CITY OF LA QUINTA, a California
municipal corporation and charter city
By:
Jo cMillen, City Manager
ATTEST:
Monika Radeva, City Jerk
APPROVED AS TO FORM:
r � ,
William H. Ihrke, City Attorney
10—�,
DOC #2025-0229922 Page 12 of 19
A Notary Public or other officer completing this
certificate verifies only the identity of the
individual who signed the document, to which
this certificate is attached, and not the
truthfulness, accuracy, or validity of that
document
NOTARY ACKNOWLEDGMENT
STATE OF CA
COUNTY OF San Diego )
On July 28, 2025 , before me, Ash Nickle
Notary Public, personally appeared Michael Chanco
who proved to me on the basis of satisfactory evidence to be the persor4a) whose
name(sTis/ace--subscribed to the within instrument and acknowledged to me that
he/sheA44Q c executed the same in his/hefthsir authorized capacity(fesj, and that by
his/heytheir signature(st on the instrument the person or the entity upon behalf of
which the person(s}acted, executed the instrument.
I certify under PENALTY of PERJURY under the laws of the State of California
that the foregoing paragraph is true and correct.
(Seal)
WITNESS my hand and official seal.
l
Signature
LASN tE
'9 NOT KOU ORMn �03 20N
DOC #2025-0229922 Page 13 of 19
A Notary Public or other officer completing this
certificate verifies only the identity of the
individual who signed the document, to which
this certificate is attached, and not the
truthfulness, accuracy, or validity of that
document
NOTARY ACKNOWLEDGMENT
STATE OF CA
COUNTY OF San Diego )
On July 28, 2025 , before me, Ash Nickle
Notary Public, personally appeared Michael Paganelli
who proved to me on the basis of satisfactory evidence to be the person(e) whose
namej5Tis/aFe—subscribed to the within instrument and acknowledged to me that
he/shef 4Qy. executed the same in his/herkfteir authorized capacity(iesj; and that by
his/herftl°reir signatures} on the instrument the personfFy or the entity upon behalf of
which the person(sracted, executed the instrument.
I certify under PENALTY of PERJURY under the laws of the State of California
that the foregoing paragraph is true and correct.
(Seal)
WITNESS my hand and official seal.
Signature
ASH MCKLE
CO M-82SOMI
MOTARYPUBLR, •CC —FOR- M
UN D*W Jen0 3 2029
DOC #2025-0229922 Page 14 of 19
A Notary Public or other officer completing this
certificate verifies only the identity of the
individual who signed the document, to which
this certificate is attached, and not the
truthfulness, accuracy, or validity of that
document
NOTARY ACKNOWLEDGMENT
STATE OF California
COUNTY OF Riverside )
On Jvl y IT., , before me, Oscar Mojica
Notary Public, personally appeared Jon McMillen
, who proved to me on the basis of satisfactory evidence to be the person(s) whose
name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of
which the person(s) acted, executed the instrument.
I certify under PENALTY of PERJURY under the laws of the State of California
that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
(Seal)
.� OSCAR MOJICA
Notary Public • CalHornia
Riverside Count
Commission ✓< 2461871
`+ . •� My Comm. Expires Sep 1, 2027
DOC #2025-0229922 Page 15 of 19
EXHIBIT A
Legal Description of the Historic Property
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF LA
QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIAAND IS DESCRIBED AS
FOLLOWS:
LOT 9 AND 10 BLOCK 64 OF SANTA CARMELITAAT VALE LA QUINTA UNIT 6, IN
THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS
SHOWN BY MAP ON FILE IN BOOK 18, PAGE(S) 67 OF MAPS, IN THE OFFICE OF
THE COUNTY RECORDER OF SAID COUNTY.
DOC #2025-0229922 Page 16 of 19
EXHIBIT B
Historic Designation Resolution
[ attached ]
DOC #2025-0229922 Page 17 of 19
EXHIBIT B
RESOLUTION NO. 2024 — 045
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA, CALIFORNIA, APPROVING A LANDMARK
DESIGNATION FOR 51407 AVENIDA VELASCO,
LOCATED WEST OF AVENIDA VELASCO BETWEEN
AVENIDA MONTEZUMA AND CALLE HIDALGO
CASE NUMBERS:
LANDMARK DESIGNATION 2024-0001
APPLICANT: MICHAEL CHANCO AND MICHAEL PAGANELLI
WHEREAS, the City Council of the City of La Quinta, California, did, on December
3, 2024, hold a duly noticed Public Hearing to consider a request by Michael Chanco and
Michael Paganelli for approval of a Landmark Designation for a single-family home
located at 51407 Avenida Velasco, more particularly described as:
Assessor Parcel Number 773-085-021
WHEREAS, the Planning Commission of the City of La Quinta, California, did, on
November 12, 2024, hold a duly noticed Public Hearing to consider this request and
recommended approval of the Landmark Designation; and
WHEREAS, the Design and Development Department published a public hearing
notice in The Desert Sun newspaper on November 22, 2024, as prescribed by the
Municipal Code; and
WHEREAS, at said Public Hearing, upon hearing and considering all testimony
and arguments, if any, of all interested persons desiring to be heard, said City Council did
make the following criteria prescribed by the Municipal Code 7.06.020 to justify approval
of said Landmark Designation:
1. The property meets Criterion C and embodies distinctive characteristics of a
style, type, period, or method of construction, is a valuable example of the use of
indigenous materials or craftsmanship and is representative of the first
subdivision of the Cove by E. S. 'Harry' Kiener who formed the Palm Springs —
La Quinta Development Company. Although there have been additions to the
residence, these additions are consistent with the Spanish Revival architectural
style, and the integrity of the original features and building elements are intact
and preserved.
DOC #2025-0229922 Page 18 of 19
Resolution No. 2024-045
Project: Landmark Designation 2024-0001
Location: 51407 Avenida Velasco Landmark Designation
Adopted: December 3, 2024
Page 2 of 3
Distinctive physical characteristics and features:
• Spanish Colonial Revival style architecture
• Original "L" shape portion
• The front door in the original "Z" style
• The latch and window of the front door
• Gable roof with exposed beams
• Original Entry Bell
• Casement windows
• Spanish Revival color palette
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La
Quinta, California, as follows:
SECTION 1. That the above recitations are true and constitute the Findings of the City
Council in this case.
SECTION 2. That the above project is exempt from California Environmental Quality Act
review pursuant to Section 15301, Class 1 Existing Facilities, as this project includes no
expansion of the use.
SECTION 3. That the City Council hereby does approve Landmark Designation
2024-0001 for the reasons set forth in this Resolution.
PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City
Council held on this 3rd day of December 2024, by the following vote:
AYES: Councilmembers Fitzpatrick, McGarrey, Pei1a, Sanchez, and Mayor
Evans
NOES: None
ABSENT: None
ABSTAIN: None
LINDA EVANS, Mayor
City of La Quinta, California
DOC #2025-0229922 Page 19 of 19
Resolution No. 2024-045
Project: Landmark Designation 2024-0001
Locabon: 51407 Avenida Velasco Landmark Designation
Adopted: December 3, 2024
Page 3 of 3
ATTEST:
P41�44
MONIKA RA VA, Ofity Clerk
City of La Quinta, California
APPROVED AS TO FORM:
'71:::�=y
WILLIAM H. 44r,erk
City of La Quinta, California
CONSENT CALENDAR ITEM NO. 3
City of La Quinta
CITY COUNCIL MEETIN( July 15, 2025
STAFF REPORT
AGENDA TITLF-: APPROVE HISTORIC PROPERTY PRESERVATION AGREEMENT
PURSUANT TO THE MILLS ACT FOR DESIGNATED HISTORIC LANDMARK
PROPERTY LOCATED AT 51407 AVENIDA VELASCO; CASE NO. MLLS2025-0001
RECOMMENDATION
Approve a Historic Property Preservation Agreement pursuant to the Mills Act for a
designated landmark property located at 51407 Avenida Velasco, Case No. MLLS2025-
0001; and authorize the City Manager to execute the agreement.
EXECUTIVE SUMMARY
• The applicants, Michael Chanco and Michael Paganelli, wish to execute a Historic
Property Preservation Agreement with the City, pursuant to the Mills Act, for their
residence at 51407 Avenida Velasco, which is a designated historic landmark
property (Attachment 1).
FISCAL IMPACT
Mills Act participants may realize property tax savings each year for their properties
because the Riverside County Assessor's office will assess the property using a formula
based on the property's income -generating potential (the "income approach") rather than its
market value. The County Assessor then compares this restricted value to the current
market value and the factored base year value, also known as the "Proposition 13" value.
The lowest of the three values is used for the property tax bill. Given that the City's share of
property taxes is relatively low, staff is estimating a negligible impact on General Fund
revenues as a result of this property executing an agreement pursuant to the Mills Act.
BACKGROUND ANALYSIS
The purpose and intent of historic preservation in La Quinta is to affect the protection,
enhancement, and perpetuation of historic resources and landmarks that represent or
reflect elements of the City's diverse cultural, social, economic, political, and architectural
history.
Pursuant to California Government Code Sections 50280 — 50290, the City may contract
with the owner or agent of any qualified historic property to restrict the use of the property
to carry out the purposes and goals of historic preservation. This is commonly known as a
Mills Act agreement and provides possible alternative property tax rate calculations in
15
exchange for specific and ongoing preservation and maintenance of the property,
specifically its historically significant elements and characteristics. A property must be a
designated historic landmark in order to enter a Mills Act agreement.
In March 2025, Council adopted Ordinance No. 621 adding Chapter 7.09 to the La Quinta
Municipal Code establishing regulations regarding Mills Act Contracts. Applications for Mills
Act Contracts must demonstrate the following:
1. The property is particularly significant due to its historic integrity, location, or other
attributes.
2. The applicant has the ability to preserve and, when necessary, restore and
rehabilitate the property.
3. The preservation and, when necessary, restoration and rehabilitation of the property
will enhance the city's inventory of historic and cultural resources and landmark
properties.
In June 2025, the applicants filed an application requesting to enter into a Mills Act
agreement with the City (Attachment 2). The subject property was designated as a local
historic landmark in December 2024. The applicants have submitted a work plan for the
subject property to continue the preservation of it as a landmark (Attachment 3).
The draft agreement is included as Attachment 4, which is for a 10-year term, and renews
automatically each year after that. The agreement runs with the land, meaning that if the
ownership changes, the agreement stays with the property. The property is subject to
inspection every 5 years to ensure compliance with the agreement.
ALTERNATIVES
Council may approve the agreement as presented, approve it with conditions, or deny the
proposed agreement.
Prepared by: Cheri Flores, Interim Design and Development Director
Approved by: Jon McMillen, City Manager
Attachments: 1. Vicinity Map
2. Mills Act Request Letter
3. Work Plan
4. Historic Property Preservation Agreement
16
Vicinity Map
ATTACHMENT 1
J
17
ATTACHMENT 2
DATE June 15, 2025
FROM Michael Chanco & Michael Pagane!li
TO. City of La Quinta
SUBJ Mills Act Contract Submission - 51407 Avenida Velasco
Please find this letter in addition to our previously submitted city application as a formal request
for Mills Act Contract consideration.
Subject property
Address 51407 Avenida Velasco
APN. 773085021
Date of Purchase May 24, 2024
Use of Property. Private residence
Date of Landmark Designation; December 3, 2024
Per Application Submittal Requirements please find attached to this letter the following
Legal Description
Grant Deed
Site Plan.
Exterior photos
NOTE Property Imorovement Plan has been submitted to the City under separate cover
Please let us know if there is any additional information required
Thank you.
Michael Chanco
Property Owner
y �s 2s
Michael Paganelli
Property Owner
18
RECORDING REQUESTED BY:
Fide-ity National I tie
WHEN RECORDED MAIL DOCUMENT AND
TAX STATEMENTS TO:
Michael Paganelli and Michael Chanco
51407 Avenida Velasco
La Quetta, CA 92253
THIS SPACE FOR RECORDER'S USE ONLY
Title Order No.: 1500-2405830 Escrow No.: 003609-AB
AP#: 773-085-021 GRANT DEED
THE UNDERSIGNED GRANTOR(S) DECLARE(S) -Te A C) Z- /
DOCUMENTARY TRANSFER TAX is $1,028.50
[X] computed on full value of property conveyed, or
[ ] computed on full value less value of liens or encumbrances remaining at time of sale
[ ] Unincorporated area [X] City of La Quinta AND
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
Yangzom Brauen, Trustee of the Mola Family Trust, dated August 11, 2022
hereby GRANT(s) to
Michael Paganelli, a Single Man and Michael Chanco, a Single Man as Joint Tenants
the real property in the City of La Quinta, County of Riverside, State of California, described as.
LEGAL DESCRIPTION ATTACHED HERETO AS EXHIBIT "A" AND MADE A PART HEREOF
Also Known as: 51407 Avenida Velasco, La Quinta CA 92253
DATED: May 11, 2024
MAIL TAX STATEMENTS AS DIRECTED ABOVE
Signature Page attached hereto
and made a part hereof
19
Title Order No.: 1500-2405830 Escrow No.: 003609-AB AP#: 773-085-021
SIGNATURE PAGE
Title of Document: GRANT DEED
Date of Document: May 11, 2024
Yangzom Brauen, Trustee of the Mola Family Trust.
dated Auoust 11. 2022
By
ra
Ya-(,q z0rC-, p, rave, Tt'J �"�
ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document
STATE OF CALIFORNIA
COUNTY OF
On ,/I817-"-z-q
before me IZ cL . -, N ,t 1-k4.J Af C v T r"C,
A Notary,/Publ� personally appeared
C cA- VA q 1-0 w, (� r c�y. e- V'I
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to
the within instrument and acknowledged to me that helshelthey executed the same in hislherltheir authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of
which the person(s) acted executed the instrument
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal
Signature
Ryan Ivtalthew NIWUuffie 0
N = COMM. 2379110 p
a: : M �r t4OTARe PtJeLIC • CAL'FOWA to
i Los "ELES COLNm
a �M� Comm E*Ies OA. 19.2025
(Seal) }p.�ccnc.scT'fc
20
EXHIBIT A
Legal Description
For APN/Parcel ID(s): 773-085-021
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE,
STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:
LOT 9 AND 10 BLOCK 64 OF SANTA CARMELITA AT VALE LA QUINTA UNIT 6, IN THE CITY OF LA QUINTA,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 18, PAGE(S) 67 OF
MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
21
51407 AVENIDA VELASCO LA QUINTA CA 92253
Assessor - County Clerk - Recorder
Riverside County, CA
Property Detail
Assessment No.
APN
Property Type
Neighborhood
Acreage
773085021
773085021
Single Family Dwelling
IN7400
0.22
Legal Description
OTS 9 & 10 BLK 64 MB 018/067 SANTA CARMELITA VALE LA QUINTA UNIT 6 Lot 9 Block 64 Subdivision Name SANTA CARMELITA VALE LA QUINTA UNIT 6 LotType Lc
RecMapType Map Book MapPlatB 018 MapPlatP 067 Lot 10 LotType Lot
22
8053333608
SKETCH ADDENDUM File# 51407AveVelasco
Borrower/Client Paganelli, Michael & Chanco, Michael
Property Address 51407 Avenida Velasco
City La Quinta County Riverside State CA Zip Code 92253
Lender Navy Federal Credit Union
Cov*d
Patio
:S
Cov'd
Ortwng Pat,
Room
1 ?'
KrtclNn
8fdroom
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ROC -
Dan
5
+•ox Area Calculations Summary
Living Area CakuLltlon DGWIS
First poor 1818.8 SQ R 25 x 11.8 - 295
38.8 x 6 - 232.8
18 x 17.6 - 316.8
22.2 x 32 - 710A
13.4 x 19.6 - 262.6
0.1 x 9.1 - 0.9
0.5 x 0.1 x 4.3 - 0.2
Total Living Area (Rounded): 1819 Sq it
23
THIS MAP WAS PREPARED FOR ASSESSMENT PURPOSES ONLY. NO LIABILITY
IS ASSUMED FOR THE ACCURACY OF THE DATA SHOWN. ASSESSOR'S PARCEL
MAY NOT COMPLY WITH LOCAL LOT -SPLIT OR BUILDING SITE ORDINANCES.
u
W
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F� k.
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p a
ASSESSOR'S MAP BK773 PG. 08
Riverside County, Calif.
LOT C
M
arrodrig
S 1/2 OF SEC. 1 T.6S, R.6E
CITY OF LA QUINTA
0
M
AVENIDA
S.6
0
310 79.96 80.04 4,
N 24 25 13 1 M
100
100 30 30
I
0
23 26 14 2 o N
W
22 03 15 3
0
o TRA 020-016 Q
0
N 21 04 16 4 0
Z
O
N� 20 05 17 5
I.L
V 19 06 18 6
LL 18 07 19 7 w
16-
67
17 08 20 8
Q 16 09 21 9 0
W 15 1 p 22 10 W
Q Q
14 11 23 11
30 30
100 100 30 30
m
v �
M 12 24
13 12
<c Ix
31-,?, 80.04 79.96
CALLE
Data
25-B-17
25-13-18 A, B, C
25-5-90
G.L.O.
VAC#191658 5/13/1998
VAC#250565 7/17/1997
VAC#0178652 6/22/2023
LOT A
c3�� 0.5 79.96
24 01
80.04
25 1 0
100
2
100
23 02
TRA 0 0-016
22 03
0 15 3
0
21 04
0
16 4
20 05
17 5
TRA 020-016
19 06
a
18 6
189
1 g 7
17 OS
20 8
RA
020-016
16 09
(21)EX
159
22 10
TRA
020-016
14 26 S
23 11
0 100
13 N
100 m
24 12 N
<` 31.38 80.04
79.96 ,3" h5
Pg 06
Pg 05
jPg04
Pg 08 Pg 09
Pg 12 Pg 13
LOT A
O
J
J
Z
W
30 30
3� A5 79.96
24 25
80.04
13 1 ?oe
N
TRA 020-016
100
23 02
100
2
TRA 020-016
26 3
22 03
21 04
16 4
TRA 020-016
20 05
0
O
17 5
19 06
0
18 6
TRA 020-016
18 07
5
19 7
17 08
20 8
16 09
21 9
TRA 020-016
15 10
0
04
22 10
14 11
27 11 0
100 m
12 N
6
79.96
0 100
o
M 13 12
<`373 80.04
30 30
LU
W
U
i—
O
J
0
W
Q
30 30
TRA 020-016
020-017
020-021
020-104
020-143
0
M
MONTEZUMA S6
0
`O 79.96
2 4 01
80.04 C��
13 1
TRA
20-016
100
23 02
100
14 2
22 03
15 3
21 04
16 4
20 05
17 5
19 06
18 6
TRA 020-016
18 07
19 7
17 pg
20 8
TR
16 pg
21 9
10
15 10
TRA
14 11
23 11 a
100
100
o
M
13 12
TRA 020-016
24 12 "
'38 80.04
79.96
Map Reference
MB 18/55 - 56 SANTA CARMELITA AT VALE LA QUINTA NO. 2
MB 18/67 SANTA CARMELITA AT VALE LA QUINTA NO. 6
30 30
W
E
30 30
S.6
773 - 08
25-58
N
W E
S
1 100
Legend
Legend
Lot Lines
Right -Of -Way
Old Lot Lines
Reference R.O.W
• - - - Other Easements
• • • • • Lease Area
Subdivision Tic Mark
S.5
0
HIDALGO M
_
Date
Old Number
New Number
7/1/1974
084-14,15
26
7/1/1976
081-801
18
11/1/1977
084-23,24
27
2/1/1983
081-15,16
19
11/1/1988
083-13,14
25
7/1/1989
081-12,13
20
11/1/1992
083-11,12
26
12/1/1997
081-02
21
2/1/1999
081-14
22
5/1/2003
081-08,09
23
2/1 /2021
082-01
25
2/1/2021
082-02
26
9/7/2022
081-05,06
24
9126/2023
081-24
24
Jan 2024
For
► W-4
11 FAt
ATTACHMENT 3
51407 Avenida Velasco
Completed Restoration/Modernization Work
Timeline
Work
Approximate Cost
6/29/24
Garage Door Automation
$730
7/29/24
Weatherstripping 5 Exterior Doors & 2 Garage Doors
$975
9/9/2024
Addition of Two Outlets (Bedroom and Sunroom)
$450
9/14/24
Installation of vent fan in bathroom
$2,364
10/2024
Driveway Gate Automation
$8,938
03/2025
Installation/Restoration of Primary Bathroom Door
$500
Total:
$13,957
Page 1 of 3
27
51407 Avenida Velasco
Proposed Restoration Plan
Contract Year
Scope of Work
Estimated Cost
Year 1
Historic Landmark Designation Plaque
$550
Year 1
Remove two trees in the front yard that have root systems that are
$1300
next to the casita/may affect the foundation
$514 ($150 Door, $164 Hardware,
Year 2
Replace Interior Door 1 w/3-Panel Vintage Door/Hardware
$200 Door Restoration/Painting)
$514 ($150 Door, $164 Hardware,
Year 2
Replace Interior Door 2 w/3-Panel Vintage Door/Hardware
$200 Door Restoration/Painting)
$514 ($150 Door, $164 Hardware,
Year 2
Replace Interior Door 3 w/3-Panel Vintage Door/Hardware
$200 Door Restoration/Painting)
Year 2
Plumbing (replace flex plumbing with hard walled plumbing in guest
$350
bath)
Year 2
Replace 4 Outlets with GCFI Outlets
$800
Year 2
Replace modern bathroom faucet w/period appropriate faucet
$800
Year 2
Fill gaps in perimeter wall/paint
$500
Year 3
Termite/Wood Repair
$1600 (see estimate below)
Page 2 of 3
28
51407 Avenida Velasco
Year 4
Add Period Appropriate Shutters to Primary Window
$600
Year 5
Electrical Panel Work (Replace Main Circuit Breaker and Ground
Wiring)
$1500
Year 8
Repaint Exterior (If needed)
$8500
Year 10
Replace modern kitchen faucet w/period appropriate faucet
$3500
Year 10
Replace entry light switches (6) with period appropriate switches
$1800
Total:
$23,342
Page 3 of 3
29