Attachment 10 - Penalty AgreementCLERIC DEPARTMENT
AGR I n,
IHH tom( f a k�
Agreement for Payment of Fine on Installment -Basis Penalty Agree�trt -----
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This Agreement is dated for identification this I" day of August, 2010, and is made by and
between Dieter K. Schmidt and Simin F. Schmidt, the owners ( "Owners') of residential real property
(APN 510 -18 -045), located at 130 Massol Ave. CProperty"), in the Town of Los Gatos, California,
with reference to the following facts and agreements.
I. RECITALS
1.1 Owners own residential real property located at 130 Massol Avenue and on July 3, 2008
applied for approval to relocate an existing structure and construct a second story addition,
as well as a to construct a new detached accessory structure exceeding 450 square feet.
1.2 After a Historic Preservation Committee recommendation on July 17, 2008, the Town's
Development Review Committee approved the project on May 19, 2009, subject to
conditions of approval, which required preservation of the historic portion of the structure
and imposing detailed conditions thereon.
1.3 On July 2, 1010, the Town became aware of the technical demolition of the Historic
structure, which was a contributing structure to Almond Grove Historic District and was not
approved for demolition.
1.4 Town Code requires permits for demolition of structures in a historic district (Town Code
29.80.260) and provides penalties for unlawful demolition (Town Code 29.10.09030).
1.5 Owners and Town have come to an agreement that a fine is due and payable and have
agreed to an amount to be fined.
1.6 Owners have requested a payment schedule, which will be provided for in this Agreement.
II. PAYMENT SCHEDULE
2.1 Owners do hereby confirm that a penalty of $82,950 is due and owing as a result of owners'
violation of the Historic Preservation Ordinance.
2.2 Owners agree to pay said sum without farther dispute and agrees to the further covenants
and promises in this agreement.
2.3 In Exchange for the agreement to set forth the amount of the penalty and agreeing to pay
said penalty, Town will agree to accept payment in four equal installments, as provided for
in this Agreement.
ATTACHMENT 10
2.4 Town's acceptance of this payment plan is also conditioned upon owner fully complying
with all Town codes and conditions imposed on this project until this project is complete
and signed off by Town.
2.5 Owners agrees to make payments pursuant to the following schedule:
A. On or before the issuance of the revised building permit, Owner shall pay the sum of
$20,737.50.
B. On or before the foundation inspection, Owner shall pay a sum of $20,737.50.
C. On or before the sub -floor inspection, Owner shall pay a sum of $20,737.50.
D. On or before the framing inspection, Owner shall pay a sum of $20,737.50.
III. FAILURE TO MAKE PAYMENTS
3.1 If Owner fails to make payment, Town may use whatever remedy at law or equity and
enforce this Agreement and Owners expressly authorizes Town to issue stop -work orders on
the Project or to withhold inspections until a proper payment is made. If for any reason a
payment is made with a check and the check does not clear immediately, Town shall have
all of the same remedies.
3.2 Debt Owed To the Town — In the event the Owners fails to pursue the project, or make the
payments as provided in this Agreement, Owners authorizes Town to record notice of the
outstanding amount owing to Town and that said outstanding amount shall accrue interest at
the rate of 10% per annum.
3.3 Outside Time Of — Notwithstanding any of the foregoing, it is contemplation of the parties
that the Owners will proceed with the project. However, if Owners for any reason does not
pursue project, the total amount of the penalty yet unpaid, including the total amount of
$82,950 shall be due and payable on or before June 1, 2011.
W. GENERAL TERMS
4.1 Notices. Any notice required to be given shall be deemed to be duly and properly given if
mailed postage prepaid, and addressed to:
Town of Los Gatos
Attn: Town Attorney's Office
110 E. Main Street
Los Gatos, CA 95030
or personally delivered to Owners to such address or such other address as Owners
designate in writing to Town.
4.2 Joint and Several Liability. The undersigned Owners are jointly and severally liable for'
all obligations under this Agreement, regardless of who is in possession of the Property.
4.3 Entire Agreement. This Agreement constitutes the complete and exclusive statement of
the Agreement between the Town and Owners. No terms, conditions, understandings or
agreements purporting to modify or vary this Agreement, unless hereafter made in
writing and signed by the party to be bound, shall be binding on either party.
FOR TOWN:
Greg arson, Town Manager
RECOMMENDED BY:
Wendie Rooney,
Director of Community Development
APPROVED AS TO FORM:
/Ak�—
Michael D. Martello,
Interim Town Attorney
ATTEST FOR T)AR -TOWN OF LOS GATOS
ISVrnin F. S'clifnfdt
Dieter K. Schmi �
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