Historic Property Preservation Agreement - 7560 Monterey Street (La Rue Trust)
DOC U MEN T : 1 6697520 Tit I es: 1 / Pages: 15
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
111111111111111111111111
19.00
68.00
City Clerk
City of Gilroy
7351 Rosanna Street
Gilroy, California 95020
;0;0016697520;0;
Fees.
Taxes.
Copies
AMT PAID
49 00
BRENDA DAVIS
SANTA CLARA COUNTY RECORDER
Recorded at the request of
Owner
RDE ** 006
12/19/2002
2:21 PM
SPACE ABOVE 11IIS LINE FOR RECORDER'S USE
RECORDING REQUESTED PURSUANT
TO GOVERNMENT CODE SECTIONS
6103 and 27383
mSTORIC PROPERTY PRESERVATION AGREEMENT
TillS AGREEMENT is made and entered into this 26th day of November 2002, by and
between the CITY OF Gll.ROY, a municipal corporation ("City") and the La Rue Trust (c/o R.
Jeffrey and Pamela Martin, trustees) (collectively, "Owner").
RECITALS
A. California Government Code section 50280, et seq. authorizes cities to enter into
contracts with the owners of qualified historical property to provide for the use, maintenance and
restoration of such historical property so to retain its characteristics as property of historical
significance;
B. Owner holds fee title in and to that certain real property, together with associated
structures and improvements thereon, generally located at the street address 7560 Mot:lterey
Street, Gilroy, California (the "Historic Property"). A legal description of the Historic Property
is attached hereto, marked as Exhibit "A" and is incorporated herein by this reference;
C. On November 5, 1984 the City Council of the City of Gilroy ("City Council")
adopted its Resolution No. 84-75 thereby declaring and designating the Historic Property as an
historic site, pursuant to Section 27 of the City's Zoning Ordinance. The Historic Property is a
qualified historical property pursuant to California Government Code section 50280.1.
D. City and Owner, 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 the Provisions of
Chapter 3, of Part 2, of Division 1 of the California Revenue and Taxation Code.
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Agreement
NOW THEREFORE, City and Owner, in consideration of the mutual covenants and
conditions set forth herein, do hereby agree as follows:
1. Effective Date and Term of Agreement. This Agreement shall be effective and
commence on January 1,2003 ("Effective Date") and shall remain in effect for a term of ten (10)
years thereafter. Each year upon the anniversary of the Effective Date, such initial term will
automatically be extended as provided in paragraph 2, below.
2. Renewal. On each anniversary of the Effective Date (hereinafter referred to as the
"Renewal Date"), an additional one-year term shall automatically be added to the term of this
Agreement unless a notice of nonrenewal ("Notice of Nonrenewal") is served as provided herein.
If either Owner or City desires in any year not to renew this Agreement for an additional one-year
term, Owner or City shall serve a written Notice of Nonrenewal upon the other party in advance
of the Renewal Date. Such Notice of Nonrenewal shall be effective if served by Owner upon
City at least ninety (90) days prior to the Renewal Date, or if served by City upon Owner, such
Notice of Nonrenewal shall be effective if served upon Owner at least sixty (60) days p~or to the
Renewal Date. If either City or Owner timely serves a Notice of Nonrenewal in any year, this
Agreement shall remain in effect for the balance of the term then remaining, either from its
original execution or from the last renewal date of this Agreement, whichever may apply.
2.1 Owner Protest of City Nonrenewal. Within fifteen (15) days after receipt
by Owner of a Notice of Nonrenewal from City, Owner may make and file a written protest of
the Notice of Nonrenewal. Upon receipt of such protest the City Council shall set a hearing prior
to the expiration of the Renewal Date of this Agreement. Owner may furnish the City Council
with any information that the Owner deems relevant, and within ten (10) days after demand shall
furnish the City Council with any information the City Council may require. The City Council
may, at any time prior to the Renewal Date of this Agreement, but without obligation to do so,
withdraw its Notice of Nonrenewal.
3. Assessment of Valuation. The parties acknowledge that Owner, in consideration
for abiding by the terms of this Agreement, shall be entitled to apply for a reassessment
evaluation of the Historic Property pursuant to the provisions of Sections 439 et. seq. of the
California Revenue and Taxation Code. Owner acknowledges that tax relief afforded to the
Owner pursuant to Chapter 3, Part 2, of Division 1 of the California Revenue and Taxation Code
may require negotiation with the Santa Clara County Assessor's Office. All tax savings realized
by Owner in connection with this Agreement shall be used to preserve, maintain, repair, restore
and rehabilitate the Historic Property within twelve (12) months following the tax year in which
such tax savings is realized.
4. Standards for Historical Property. Owner shall preserve, repair and maintain the
Historic Property and its Character Defining Features (defined below) as a qualified historic
property, in no less than equal to the condition of the Historic Property on the Effective Date.
Owner shall, where necessary, restore and rehabilitate the property according to the rules and
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regulations of the Office of Historic Preservation of the State Department of Parks and
Recreation, the United States Secretary of the Interior's Standards for Rehabilitation and
Restoration, the State Historical Building Code, and the City's Historic Site and Neighborhood
Combining Districts. section of the City's Zoning Ordinance, as the same may be amended from
time to time, and in accordance with the attached ten year schedule of home repair, maintenance
and improvement measures prepared by Owner and approved by the City Council, attached
hereto as Exhibit "B." Commencing on the fifth anniversary of the Effective Date, and
continuing every five (5) years thereafter during the term of this Agreement, Owner shall submit
to City an updated ten (10) year schedule of potential home repair, maintenance and
improvement measures for the upcoming ten (10) year period, which schedule shall also
document all repairs, maintenance, and improvements which have been completed since the
Effective Date. Character Defining Features means all historic or other architecturally
significant aspects of the Historic Property, including without limitation, the general architectural
form, style, materials, design, scale, details, mass, roof line, porch, exterior vegetation and other
aspects of the appearance of the exterior and interior of the Historic Property. The Secretary of
Interior's Standards for Rehabilitation and Restoration currently in effect (attached hereto and
marked as Exhibit "C") shall be incorporated herein by reference and constitute the minimum
standards and conditions for the rehabilitation and restoration of the Historic Property. All
standards referred to in this Section 4 shall apply to the Historic Property throughout the term of
this Agreement. Owner shall not obstruct or obscure the public's ability to view the exterior of
the Historic Property from the public right-of-way. Such prohibition shall include, without
limitation, a prohibition against the placing of trees, bushes or fences in a location, which
substantially obscures or obstructs the view from the public right-of-way of the exterior of the
Historic Property.
5. Periodic Examinations. Owner shall allow reasonable periodic examination, by
prior appointment, of the interior and exterior of the Historic Property by representatives of the
Santa Clara County Assessor, State Department of Parks and Recreation, State Board of
Equalization, and/or the City, as may be necessary to determine Owner's compliance with the
terms and provisions of this Agreement.
6. Provision of Information of Compliance. Within ten (10) days after request by
City, Owner shall furnish City with any and all information requested by the City from time to
time, which City deems necessary or advisable to determine compliance with the terms and
provisions of this Agreement.
7. Cancellation. City, following a duly noticed public hearing, as set forth in
California Government Code Sections 50285, et seq., may cancel this Agreement if it determines
that Owner breached any of the provisions of this Agreement or has allowed the Historic
Property to deteriorate to the point that it no longer meets the standards for a qualified historic
property and such breach is not cured by Owner within thirty (30) days after City gives Owner
notice that a breach has occurred. City may also cancel this Agreement if it determines that the
Owner has failed to maintain, preserve, restore or rehabilitate the Historic Property in accordance
with the terms of this Agreement and such breach is not cured by Owner within thirty (30) days
after City gives Owner notice that a breach has occurred. If this Agreement is canceled because
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of failure of the Owner to maintain, preserve, restore and rehabilitate the Historic Property as
specified above, the Owner shall pay a cancellation fee to the State Controller as set forth in
Government Code Section 50286 as the same may be amended or replaced from time to time.
8. Destruction. Notwithstanding any provision of this Agreement to the contrary, the
Owner may cancel this Agreement without payment of the cancellation fee set forth in Section 7,
if the existing building (the "Structure") on the Historic Property is damaged by fire, earthquake,
or other Act of God or accidental cause to the extent (1) the then fair market value of said
Structure is reduced by fifty-one percent (51 %) or more; or (2) fifty-one percent (51 %) or more
of said Structure's floor area is destroyed or irreparably damaged; or (3) fifty-one percent (51%)
or more of the Structure's Character Defining Features are destroyed or irreparably damaged; or
(4) that the cost to the Owner (less any insurance proceeds payable in connection with such
damage) to restore the Structure to its prior condition would exceed Ten Thousand Dollars
($10,000). If the Owner desires to cancel this Agreement under this Section 8, written notice
shall be given to the City within ninety (90) days after such damage or destruction occurs.
If the Owner desires to cancel this Agreement due to the circumstances outlined in this
Section 8, either party may request a hearing before the City Council to determine (a) t~e extent
of diminution of value, (b) the extent of the damage or destruction to the floor area of the
Structure, and/or (c) extent of damage or destruction to the Character Defining Features of the
Structure. The City Council may refer any matter relating to (c) to the City's Historic Heritage
Committee for its findings and recommendations.
If Owner does not cancel this Agreement pursuant to this Section within ninety (90) days
after damage or destruction occurs, or the damage or destruction does not exceed the thresholds
set forth in the first paragraph of this Section, Owner shall have a reasonable time, not to exceed
four (4) months, in which to restore the structure to not less than the condition existing prior to
such damage or destruction.
9. Enforcement of Agreement. City may specifically enforce, or enjoin the breach
of, the terms of this Agreement, if Owner fails to cure any default under this Agreement within
thirty (30) days after City gives Owner notice that Owner has breached any of Owner's
obligations under this Agreement. If Owner's breach is not corrected to the reasonable
satisfaction of the City within thirty (30) days after the notice of breach is given to Owner, then
City may, without further notice, declare a default under the terms of this Agreement and bring
any action necessary to specifically enforce the obligations of Owner or enjoin any breach under
this Agreement, including, but not limited to, bringing an action for injunctive relief against the
Owner or such other relief as City may deem appropriate.
City does not waive any claim of default by Owner if City does not enforce or cancel this
Agreement upon a default by Owner. All other remedies at law or in equity which are not
otherwise provided for in this Agreement shall be available to the City to pursue if there is a
default of this Agreement by Owner. No waiver by City or any breach or default under this
Agreement by Owner shall be deemed to be a waiver of any other subsequent breach thereof or
default hereunder.
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10. Binding Effect of Agreement: Covenants Running With the Land. The Owner
hereby subjects the Historic Property to the covenants, reservations and restrictions as set forth in
this Agreement. City and Owner 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 toand be binding upon the Owner's successors and assigns in title or interest to
the Historic Property. Each and every contract, deed or other instrument hereinafter executed,
covering 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. 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 the value of the Owner's legal interest in the Historic
Property may be affected thereby. 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 historic characteristics and significance of the Historic .
Property for the benefit of the public and Owner.
11. Cost Reimbursement. Owner shall, within ten (10) days after demand, reimburse
City for all reasonable legal fees and costs and all staff time and costs incurred by City in
connection with the preparation and review of this Agreement and the administration of the
Agreement during the term of this Agreement.
12. Notice. Any notice required to be given by the terms of this Agreement shall be
in writing and sent by personal delivery or by United States registered or certified mail, postage
prepaid, return receipt requested, addressed as set forth in this Section 12 below at any other
address as may be later specified by the parties hereto by notice given in the manner required by
this Section 12.
To City:
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
Attn: City Administrator
To Owner:
La Rue Trust clo R. Jeffrey and Pamela Martin, trustees
10760 Greenvalley Drive
Gilroy, CA 95020
Mailed notices shall be deemed delivered three (3) days after the date of posting by the United
States Post Office.
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13. Notice to Office of Historic Preservation. Owner shall provide written notice of
this Agreement and shall provide a copy of this Agreement to the Office of Historic Preservation
of the Department of Parks and Recreation of the State of California within six (6) months
following the Effective Date.
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 or 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.
15. Indemnity of City. Owner shall protect, defend, indemnify, and hold City and its
elected officials, officers, agents and employees harmless from liability for claims, losses,
proceedings, damages, causes of action, liabilities, costs or expense, including reasonable
attorneys' fees, which may arise directly or indirectly from the negligence, willful misconduct or
breach of this Agreement by Owner or Owner's contractors, subcontractors, agents, employees or
other persons acting on Owner's behalf in connection with the Historic Property, or which arise
directly or indirectly in connection with Owner's activities in connection with the Historic
Property. This Section 15 applies, without limitation, to all damages and claiIhs for 'damages
suffered, or alleged to have been suffered regardless of whether or not the City prepared, supplied
or approved any plans, specifications or other documents for the Historic Property.
16. Binding Upon Successors. All of the agreements, rights, covenants, reservations
and restrictions contained'in this Agreement shall be binding upon and shall inure to the benefit
of the parties named herein, their heirs, successors, legal representatives, and assigns and all
persons acquiring any part or portion of the Historic Property, whether voluntarily or
involuntarily, by operation of law or in any manner whatsoever.
17. Legal Costs. If legal proceedings are brought by Owner or City 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 party in such proce.eding
may recover all reasonable attorneys' fees to be fixed by the court, in addition to court costs and
other relief ordered by the court.
18. Severability. If 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 affected thereby.
19. Governing Law. This Agreement shall be construed and governed in accordance
with the laws of the State of California.
20. Recordation. No later than twenty (20) days after the parties execute and enter
into this Agreement, City shall cause this Agreement to be recorded in the Office of the County
Recorder of the County of Santa Clara, California.
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21. Amendments. This Agreement may be amended, in whole or in part, only by a
written recorded instrument executed by all of the parties hereto.
22. Captions. Section headings and captions of this Agreement are for convenience of
reference only and shall not be considered in the interpretation of any of the provisions of this
Agreement.
Dated: \ d-- \ \ d--
, 20ad-
OWNER:
By: ~~~
Name '2 \ ~~;:\~dY UVl v\1-v"(1 .\J
VI/J1.t{ iL5m#'\J1/t '
Name pl'J1\Ql ct (YY1/11b n
By:
Dated:~, 200.6 V
CITY:
Dated: J2{ 12"
200 01...,,-
, -
Its:
Attest:
!
'.~.-/
By: "-
Name:
Its: City Clerk
Approved as to Form:
BY:~~
~~;me:
\ Vfts: City Attorney
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}
STATE OF CALIFORNIA
COUNTYOF~
em ~ bef~re ;r"~ It/; ,v~hll1 pe=nally
appeared~ (trlC rJ{.. ~ fk(lhr
~personally known to me -OR- 0 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
hislher/their authorized capacity(ies),
and that by hislher/their signature(s) on
the instrument the person(s), or the
entity upon behalf of which the
person(s) acted, executed the
instrument.
ss.
'It'- -- A... -^- --"'--.."..". ~.A..'V""'-'-'"^'- ""'- ~1
.... . .... JULIE R. NELSON 7
o ,u,,, COMM. # 1346179 ~
C) "0.'." NOTfIF;Y PUBLIC-CAliFORNIA Gl
~ . Y' SANTA Cl.ARA COUNTY 0
J-... ..a~' COMM. EXP. MARCH 19. 2~
_______-........__""'.....,,---..;.r-....r...,.....,,-
WITNESS my hand and official seal.
~OTARY
STATE OF CALIFORNIA
} ss
COUNTY OF
On
appeared
, before me,
, personally
o personally known to me -OR- 0 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
hislher/their authorized capacity(ies),
and that by hislher/their signature(s) on
the instrument the person(s), or the
entity upon behalf of which the
person(s) acted, executed the
instrument.
WITNESS my hand and official seal.
SIGNATURE OF NOTARY
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01-092304706038
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CAPACITY CLAIMED BY SIGNER
Though statute does not require the Notary
to fill in the data below, doing so may
prove invaluable to persons relying on the
document.
o INDNIDUAL
o CORPORATE OFFlCERS(S)
Title(s)
o PAR1NER(S) 0 LIMITED
o GENERAL
o ATIORNEY-IN-FACf
o TRUSTEE(S)
o GUARDIAN/CONSERV A TOR
o O1cIER:
SIGNER IS REPRESENTING:
Name ofPerson(s) or Entity(ies)
CAPACITY CLAIMED BY SIGNER
Though statute does not require the Notary
to fill in the data below, doing so may
prove invaluable to persons relying on the
document.
o INDNIDUAL
o CORPORATE OFFlCERS(S)
TitIe(s)
o PARTNER(S) 0 LIMITED
o GENERAL
o ATIORNEY-IN-FACf
o TRUSTEE(S)
o GUARDIAN/CONSERV ATOR
o OTHER:
SIGNER IS REPRESENTING:
Name ofPerson(s) or Entity(ies)
EXlllBIT "A"
LEGAL DESCRIPTION
That certain parcel of land in the City of Gilroy, County of Santa Clara, California, more
particularly described as follows:
[to be attached]
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EXHIBIT "B"
SCHEDULE OF IMPROVEMENTS
[To Be Attached]
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01-092304706038
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Schedule of improvements
This building has been maintained and improved on a regular basis. The
building has upgraded wiring, ADA compliant rest rooms, & and an
elevator. The building has fresh paint and new carpet in many areas.
The building is currently unoccupied, except for a small space used by
the owner. It is our intention to find a tenant and to work with such
tenant on improvements to maximize the potential of this historic
building, maintaining and enhancing it's wonderful character.
. Oct. 20. 1998 7: 30.Ui
No. 0956 P. 8/9
Page No. 7
File No. 1OOO4619-034-B eM
SCHEDULE C
LEGAL DESCRIPTION
All that certain real property situate in the City of Gilroy, County of Santa Clara, State of California,
described as follows:
BEGINNING at a point on the Easterly line of Monterey Street 15/100 of a foot Northerly of the point
of intersection of the Easterly line of said Monterey Street with the line dividing Lots 3 and 4 of Block 2
North, Range 1 East of the City of Girlie, as the same is laid down and designated on Map No.6 and its
successors and/or assigns amendments accompanying the report of the referees in the partition suit of
Henry Miller, et al, vs. Massey Thomas, et al, in the Superior Court of Santa Clara County, California
and running thence Northerly 700 22' East 193 feet to the Westerly line of an Alley; running thence in a
Northerly direction along the said Westerly line of said alley to a point thereon 2.27 feet Northerly of the
point of intersection therewith of the dividing line between Lots 2 and 3 in said Block 2 North, Range I,
East of the said City of Girlie; and thence in a Westerly direction to the point of intersection of the
Easterly line of Monterey Street with the dividing line between said Lots 2 and 3, and thence in a
Southerly direction along the said Easterly line of Monterey Street to the point of beginning.
ARB No: 841-05-060
APN No: 841-05.060
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EXHIBIT "C"
SECRETARY OF THE INTERIOR'S STANDARDS FOR
REHABILITATION AND RESTORATION
Rehabilitation:
1. A property will be used as it was historically or be given a new use that requires
minimal change to its distinctive materials, features, spaces and spatial relationships.
2. The historic character of a property shall be retained and preserved. The removal
of distinctive materials or alteration of features, spaces and spatial relationships that characterize
a property will be avoided.
3. Each property shall be recognized as a physical record of its time, place, and use.
Changes that create a false sense of historical development, such as adding conjectural features
or elements from other historic properties, will not be undertaken.
4. Changes to a property that have acquired historic significance in' their own right
will be retained and preserved.
5. Distinctive materials, features, finishes and construction techniques or examples
of craftsmanship that characterize a property will be preserved.
6. Deteriorated historic features will be repaired rather than replaced. Where the
severity of deterioration requires replacement of a distinctive feature, the new feature will match
the old in design, color, texture, and where possible, materials. Replacement of missing features
will be substantiated by documentary and physical evidence.
7. Chemical or physical treatments, if appropriate, will be undertaken using the
gentlest means possible. Treatments that cause damage to historic materials will not be used.
8. Archeological resources will be protected and preserved in place. If such
resources must be disturbed, mitigation measures will be undertaken.
9. New additions, exterior alterations or related new construction will not destroy
historic materials, features and spatial relationships that characterize the property. The new work
will be differentiated from the old and will be compatible with the historic materials, features,
size, scale and proportion, and massing to protect the integrity of the property and its
environment.
10. New additions and adjacent or related new construction will be undertaken in such
a manner that, if removed in the future, the essential form and integrity of the historic property
and its environment would be unimpaired.
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Restoration:
1. A property will be used as it was historically or be given a new use that interprets
the property and its restoration period.
2. Materials and features from the restoration period will be retained and preserved.
The removal of materials or alterations of features, spaces and spatial relationships that
characterize the period will not be undertaken.
3. Each property will be recognized as a physical record of its time, place and use.
Work needed to stabilize, consolidate and conserve materials and features from the restoration
period will be physically and visually compatible, identifiable upon close inspection and properly
documented for future research.
4. Materials, features, spaces and finishes that characterize other historical periods
will be documented prior to their alteration or removal.
5. Distinctive materials, features, finishes and construction techniques or e~amples
of craftsmanship that characterize the restoration period will be preserved.
6. Deteriorated features from the restoration period will be repaired rather than
replaced. Where the severity of deterioration requires replacement of a distinctive feature, the
new feature will match the old in design, color, texture and, where possible, materials.
7. Replacement of missing features from the restoration period will be substantiated
by documentary and physical evidence. A false sense of history will not be created by adding
conjectural features, features from other properties, or by combining features that never existed
together historically.
8. Chemical or physical treatments, if appropriate, will be undertaken using the
gentlest means possible. Treatments that cause damage to historic materials will not be used..
9. Archeological resources affected by a project will be protected and preserved in
place. If such resources must be disturbed, mitigation measures will be undertaken.
10. Designs that were never executed historically will not be constructed.
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