Fremont City Council
3300 Capitol Avenue
Fremont, CA 94538
SCHEDULED
Meeting: 12/06/16 07:00 PM
Div/Dept: Planning
Category: Development Project
Sponsors:
DOC ID: 2889
STAFF REPORT (ID # 2889)
PALMDALE ESTATES MILLS ACT CONTRACTS - 43151 Mission Boulevard Public Hearing (Published Notice) to Consider the Historical Architectural Review
Board’s Recommendation to Approve Mills Act Historic Preservation Contracts
for the Best and Starr Houses within the Palmdale Estates Planned District P2013-189 (HOD) in the Mission San Jose Community Plan Area, and to Consider
an Exemption from the California Environmental Quality Act (CEQA) per CEQA
Guidelines Sections 15378 and 15331
Contact Persons:
Name:
Title:
Div/Dept:
Phone:
E-Mail:
Joel Pullen
Senior Planner
Planning
510-494-4436
[email protected]
Kristie Wheeler
Planning Manager
Planning
510-494-4454
[email protected]
Executive Summary: The Palmdale Estates Planned District was approved by the City
Council in December 2014, allowing for demolition of the previously-existing 81-unit
motherhouse, development of three senior assisted living buildings to house the Sisters of
the Holy Family, rehabilitation of two historic houses onsite (the Best and Starr Houses) for
estate homes, construction of 79 dwelling units, and preservation of 5.5 acres of historic
landscape in an area referred to as the Core Area Open Space. The Final Environmental
Impact Report (FEIR), certified by the City Council with approval of the Palmdale Estates
Planned District, required as project mitigation, that the Historical Architectural Review
Board (HARB) review and approve plans for rehabilitation of the Best and Starr Houses and
landscape changes for the Core Area Open Space. In addition, staff encouraged the
applicant to enter into Mills Act Contracts for the two houses, which allows for tax benefits
based upon accepting certain requirements to maintain the historic houses through a
recorded contract with the City. The proposed modifications to the Best and Starr Houses
and landscape changes were approved by HARB on November 3, 2016, and HARB also
recommended approval of the Mills Act Contracts for the historic houses to the City Council.
BACKGROUND: The 14.8-acre remainder of the Palmdale Estate has a long history dating
back to the era of the Ex-Mission land grants. At one time, the estate included land north of
the project site near the present-day location of Mission San Jose High School and as far
west as Irvington. Over the years, several prominent figures in local history have owned
and lived on the property, including Juan Gallegos (the original grantee of the land), E.L.
Beard, and the Best/Starr sisters. The remaining portion of the property that includes the
structures and landscape that is the subject of this review is situated west of Mission
Boulevard from St. Joseph’s Church within an area generally characterized by mixed
residential densities. The Sisters of the Holy Family purchased the property for use as a
convent in 1948 and constructed the motherhouse in its current location in 1957.
Palmdale Estates has been reduced in size through subdivision over the years. Most
recently, after the Sisters purchased the property in 1948, the Montessori School and
Oroysom Village development to the south separating the property from Washington
Boulevard, although access was maintained through Bryant Terrace. The Best House was
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Staff Report (ID # 2889)
Meeting of December 6, 2016
remodeled into a banquet and wedding facility, a use that continued until the recent
approval of the Palmdale Estates Planned District in December 2014. Leading up to approval
of that development plan, which is currently under construction, the aging Sisters
congregation worked with a private homebuilder, Robson Homes, in order to develop the
southern portion of the property with 79 homes and replace the outmoded motherhouse
with accessible one-story assisted living residences with more functional spaces that were
designed to be more responsive to the aging needs of the Sisters.
Several historic evaluation reports have been prepared for the property over the last 20
years. In 2012, Carey and Company completed a survey of the property that defined the
period of significance and identified the Palmdale Historic District as being potentially
eligible for listing in the California Register. The property was also comprehensively studied
by a qualified historical consultant as part of the Planned District development proposal in
order to further define the boundaries of the historic district, identify the character-defining
features of the register-eligible resources, determine the framework for compliance with the
Secretary of the Interior’s Standards for Historic Resources, and assess the potential
impacts of the project in compliance with the California Environmental Quality Act (CEQA). A
Historic Resource Analysis and Project Impact Analysis was prepared in 2013 and reviewed
by HARB in conjunction with the approval of the development proposal. In addition to being
potentially eligible for the California and National Registers, the Best and Starr Houses are
also listed on the Fremont Register of Primary Historic Resources.
Since approval of the Palmdale Estates Planned District, the developer has worked with the
Sisters to design and secure permits for construction of the sisters’ new residences to the
rear of the Best and Starr Houses, and also has proceeded with demolition of the
motherhouse and design and construction of houses on the southern side of the site. A large
and important step has been setting up the non-profit entity and funding mechanism for the
Core Area that is to be open for public enjoyment. HARB reviewed and approved the more
precise design for landscape modifications and rehabilitation of the Best and Starr Houses
on November 3, 2016. When one enters the Core Area in the future, the Best and Starr
Houses, along with several new houses, would form the southwestern backdrop that
separates the Core Area from the remainder of the new homes and Sisters’ residences in
the portion of the site to be developed. Given the importance of these houses on the historic
associations, the Mills Act Contracts were encouraged by staff, and sought by the applicant,
as a way of ensuring that future owners of the properties maintain the historically significant
features.
DISCUSSION/ANALYSIS: The Palmdale Historic District consists of the 5.5-acre Core
Area and the Best and Starr Houses, including their respective private landscape areas. The
Core Area that was set aside during development for publicly-accessible open space extends
from Mission Boulevard on the east to the vicinity of the Best and Starr Houses on the west.
Each of these houses has a separate, private landscape area characterized by a broad open
lawn with a border of planting beds along its north, west, and south sides and along the
foundations next to each house. The following paragraphs summarize the qualities of these
resources to be preserved:
Best and Starr Houses
The Best and Starr Houses and garages were built in 1927 as residential estate structures.
The Sisters of the Holy Family purchased the property, including the houses, in 1948. Since
then, the houses have been used to support the convent activities and also used for events
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such as banquets and weddings through a use permit. The structures are old, but relatively
well-kept for their age. HARB approved the necessary modifications to convert them back to
their original uses as estate houses with existing living space above the garages to be used
as guesthouses, and to bring them up to code in a condition suitable for a private
homeowner to take over maintenance responsibilities. The use conversion required
balancing upgrades for modern functionality with compliance with the Secretary of the
Interior’s Standards.
The Best House was most recently used as a banquet and wedding facility, and has seen
various non-historic modifications over years related to that operation. For example, certain
windows were replaced, a full commercial kitchen was built inside, and rooms were modified
to entertain large groups. The proposed use of the structure, approved by HARB and City
Council in fall 2014, is that of a large single-family house, which was the historically-correct
use during the period of significance (pre-1948) of the historic district. To that end, the
applicant proposes a series of modifications intended to return it to a single-family use. The
primary visible façade from the Core Area Open Space (the front entry and yard) faces east.
The applicant has proposed very minor modifications on the front facade, and restrained
changes on other elevations as well. Character‐defining features identified through previous
historic analysis will be preserved.
The Starr House (also referred to as the “Armer” House) has been used for office and
convent management purposes, and is in need of repair. It will also be converted for sale to
a large single-family house. There are no changes proposed to its eastern-facing façade,
and all character-defining features are proposed to be preserved. A small addition of an 80square-foot (eight-foot by 10-foot) mud room is proposed to the left rear/side of the Starr
House.
Mills Act Contracts
The applicant proposes to enter into Mills Act Contracts for the Best and Starr Houses as
provided for in California Government Code Sections 50281 and 50282, and Fremont
Municipal Code Sections 18.175.320 et seq. The Mills Act program allows private owners to
qualify for property tax relief if they pledge to rehabilitate and maintain the historical
features and architectural character of their properties for at least a ten-year period. The
program is an important economic incentive for the restoration and preservation of qualified
historic buildings by private property owners.
The contracts would be entered into by Robson Homes, and would bind to the successors in
interest (buyers) of each respective house, requiring the owners to preserve and maintain
the character-defining features of these register resources. The draft contracts listing the
character-defining features of each house are attached as Exhibits A1 and A2.
As previously noted, HARB reviewed the proposed Mills Act Contracts on November 3, 2016,
and recommended approved to the City Council.
FISCAL IMPACT: By entering into Mills Act Contracts, the City would allow for the County
Assessor to use an alternative property tax calculation for the two houses, resulting in a
slight decrease in state and local property tax revenue equal to the amount of the property
tax relief for the two homeowners who would take on the responsibility of maintaining these
Fremont Register resources. This program is, however, relatively small. The City has
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Staff Report (ID # 2889)
Meeting of December 6, 2016
entered into contracts for three such properties. This project would raise that total to five
properties.
ENVIRONMENTAL REVIEW: The decision to enter into a Mills Act Contract with the owner
of historical properties is not a project subject to the California Environmental Quality Act
(CEQA) per CEQA Guideline 15378, definition of a “project.” Even if the contracts were a
project subject to CEQA, they would be exempt under CEQA Guidelines Section 15331,
Historical Resource Restoration/Rehabilitation since the contracts are for the maintenance,
preservation, and conservation of historical resources.
ATTACHMENTS:

PLN2016_00271 Exh A1

PLN2016_00271 Exh A2
RECOMMENDATION:
1.
Hold a public hearing.
2.
Find that the proposed project is exempt from the California Environmental Quality Act
(CEQA) because it is not a project as defined by CEQA Guidelines Section 15378 and
that the contracts are for the maintenance, preservation, and conservation of historical
resources, which are exempt under CEQA Guidelines Section 15331.
3.
Approve the Mills Act Contracts as shown in Exhibits A1 and A2, and authorize the
Mayor to enter into final contracts.
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