Agenda Report
Fullerton City Council
MEETING DATE: March 19, 2024
TO: CITY COUNCIL
SUBMITTED BY: Sunayana Thomas, Director of Community and Economic Development PREPARED BY: Chris Schaefer, AICP, Planning Manager
SUBJECT: MILLS ACT PROGRAM GUIDELINES REVISIONS
SUMMARY
The City received only two Mills Act applications since establishing Program Guidelines in April 2020 as some applicants find the guidelines burdensome. The program capped applications at ten per year. Fullerton Heritage and staff propose program guideline revisions to encourage more applications.
PROPOSED MOTION
Adopt Resolution No. 2024-XXX.
RESOLUTION NO. 2024-XXX - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, APPROVING MILLS ACT PROGRAM GUIDELINES REVISIONS
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Other options brought by City Council.
STAFF RECOMMENDATION
Approve the Proposed Motion.
CITY MANAGER REMARKS
Defer to Planning Commission recommendation.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Infrastructure and City Assets.
FISCAL IMPACT
The City receives $0.1564 of every $1.00 of property taxes with the remaining portion to the County, School Districts and Special Districts. The Mills Act Program reduced 15.64% in the general tax levy portion of the property tax (1.0%) for each historic property with a Mills Act Agreement (Attachment 2). The generates minimal General Fund fiscal impact due to the low number of historic properties participating in the Mills Act Program and applications cap.
BACKGROUND AND DISCUSSION
The Mills Act Program provides financial incentives to homeowners of older and/or historic homes to reinvest in the properties and preserve significant structures. These Fullerton Plan (General Plan) policies support the Mills Act Program adoption:
P4.3 – Historic Resources Maintenance and Enhancement
P4.5 – Historic Building Preservation
P4.6 – Focus Area Planning
P4.9 – Historic Building Retrofits.
Staff compared Mills Act Programs in Southern California cities to the Fullerton program along with Fullerton Heritage input and proposes the following revisions to the Mills Act Program Guidelines reduce impediments to applicants:
Remove property valuation maximum threshold (previously set at $800,000) Add examples of qualified improvements
Reduce application fee from $1,520 to $1,000
Count previous work towards work plan
Waive annual $85 inspection fee if Fullerton Heritage volunteers perform inspection Remove five-year inspection requirement.
The Planning Commission recommended City Council approve the revised Fullerton Mills Act Program Guidelines attached to the Draft Resolution.
Attachments:
Attachment 1 – PowerPoint Presentation
Attachment 2 – Draft City Council Resolution
Attachment 3 – City Council Agenda Report dated April 21, 2020 Attachment 4 – Planning Commission Staff Report dated February 28, 2024 Attachment 5 – Draft Guidelines Redline Version
cc: City Manager Eric J. Levitt
Mills Act Program Guidelines Update
March 19, 2024 - Page 2