Agenda Report
Fullerton City Council
MEETING DATE: OCTOBER 20, 2026
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: sUNAYANA tHOMAS, DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT PREPARED BY: CHRIS SCHAEFER, AICP, PLANNING MANAGER
BENJAMIN KOFF, ASSOCIATE PLANNER
SUBJECT: MILLS ACT CONTRACTs FOR 315 North Balcom Avenue, 332 West Brookdale Avenue, 519 West Fern Drive, 335 West Jacaranda Place and 542 West Valley View Drive
SUMMARY
Consideration of Mills Act contracts for the historic property preservation, rehabilitation and maintenance at 315 North Balcom Avenue, 332 West Brookdale Avenue, 519 West Fern Drive, 335 West Jacaranda Place and 542 West Valley View Drive.
PROPOSED MOTION
Adopt the following resolutions:
RESOLUTION NO. 2026-XXX – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, APPROVING A MILLS ACT CONTRACT BETWEEN THE CITY AND THE OWNER OF HISTORIC PROPERTY LOCATED AT 315 NORTH BALCOM AVENUE IN THE FORM OF A HISTORIC PROPERTY PRESERVATION AGREEMENT RESOLUTION NO. 2026-XXX – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, APPROVING A MILLS ACT CONTRACT BETWEEN THE CITY AND THE OWNER OF HISTORIC PROPERTY LOCATED AT 332 WEST BROOKDALE PLACE IN THE FORM OF A HISTORIC PROPERTY PRESERVATION AGREEMENT RESOLUTION NO. 2026-XXX – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, APPROVING A MILLS ACT CONTRACT BETWEEN THE CITY AND THE OWNER OF HISTORIC PROPERTY LOCATED AT 519 WEST FERN DRIVE IN THE FORM OF A HISTORIC PROPERTY PRESERVATION AGREEMENT RESOLUTION NO. 2026-XXX – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, APPROVING A MILLS ACT CONTRACT BETWEEN THE CITY AND THE OWNER OF HISTORIC PROPERTY LOCATED AT 335 WEST JACARANDA PLACE IN THE FORM OF A HISTORIC PROPERTY PRESERVATION AGREEMENT RESOLUTION NO. 2026-XXX – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, APPROVING A MILLS ACT CONTRACT BETWEEN THE CITY AND THE OWNER OF HISTORIC PROPERTY LOCATED AT 542 WEST VALLEY VIEW DRIVE IN THE FORM OF A HISTORIC PROPERTY PRESERVATION AGREEMENT Authorize Director of Community and Economic Development to review subsequent updated schedules of improvements and maintenance items provided by each property owner pursuant to the Historic Property Preservation Agreement (i.e., Mills Act Agreement or “Agreement”) prior to the tenth anniversary of the Agreement and every tenth anniversary thereafter.
Approve revised City of Fullerton Mills Act Program Guidelines (Attachment 7 – Revised Mills Act Program Guidelines) streamlining City Council Mills Act contract consideration and approval process.
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Modify or deny the Mills Act Contract for each property Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
None.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:
Fiscal and Organizational Stability
Infrastructure and City Assets.
FISCAL IMPACT
The City of Fullerton receives $0.1564 of every $1 of property taxes, with the remainder going to the County, school districts and special districts. The Mills Act Program fiscal impact results in a 15.64 percent reduction to the City general tax levy portion for each property with a Mills Act Agreement. The general levy property tax does not include taxes such as special assessment charges and is not affected by Mills Act contracts. The City collected over $69 million across all City funds in property taxes during the 2024-25 tax year and anticipates collecting over $72 million for the 2025-26 tax year.
The Orange County Assessor’s Office calculates Mills Act property tax savings annually. The formula used to calculate the tax savings to the property owner determines the annual net property operating income by subtracting projected rental income from property operating expenses (typically 30 percent), then dividing the annual net operating income by the State capitalization percentage rate, resulting in the new assessed value, otherwise known as the Restricted Value. The amount of annual property tax revenue loss to the City depends on the assessed valuation of the property once the subject property has entered a Mills Act contract.
The five properties would use tax savings for stated repair and maintenance activities. The City created tax worksheets for each property and made available in each address file. The following shows the change in property tax credited to the City per property:
Fullerton Share of Property Tax Estimated Per Address
Before
Mills Act
(Estimate)
After Mills Act (Estimate)
Anticipated Fullerton Property Tax Reduction
315 North Balcom Avenue
$1,576.51
$585.45
$991.06
332 West Brookdale Place
$1,549.66
$585.09
$964.57
519 West Fern Drive
$2,464.62
$892.21
$1,572.41
335 West Jacaranda Place
$2,001.92
$505.01
$1,496.91
542 West Valley View Drive
$1,431.82
$505.33
$926.49
Total
$9,024.53
$3,073.09
$5,951.44
The adopted Mills Act Program Guidelines cap the number of Mills Act contracts at 50. The City approved 13 contracts to date, bringing the count to 18 applications with these five proposed contracts.
The City would assess a penalty equal to 12.5 percent of the property assessed fair market value should it find a property owner in breach of contract terms or the property owner petitions for immediate contract cancellation.
DISCUSSION
The Fullerton City Council adopted Resolution No. 2020-38 on April 21, 2020 establishing a Mills Act Program (Program) and associated Mills Act Program Guidelines authorizing the local use of the Mills Act of 1972, as amended and codified in California Government Code Section 50280 - 90 and Revenue Taxation Code Section 439. The Mills Act allows historic properties owners to voluntarily enter individual contracts with the City to receive a property tax reduction in exchange for restoring and maintaining their historic property.
Mills Act Contracts have a ten-year term and automatically renew each year on the anniversary of contract approval. In effect, the contract is always ten years away from termination, unless the property owner or the City submits a notice of non- renewal at which point the contract would terminate at the end of the current ten-year term.
The Orange County Assessor’s Office reassesses the historic property under a Mills Act contract to determine the “Historical Property Value” based on the property income-producing potential and used to determine property taxes under the Mills Act Contract. The amount of property tax reduction varies based on each property’s income-producing potential and current assessed value.
The Fullerton Plan (i.e., General Plan) included a Historic Preservation Chapter to guide historical resources preservation, protection, restoration and rehabilitation to reaffirm their continuing value as a resource contributing to the vitality and diversity of the present. The Fullerton Plan Short-Term Action Plan supports City efforts to preserve historic resources and identifies developing and implementing a Mills Act Program to provide financial incentives to restore and preserve historic resources.
Eligible Properties
Revenue and Taxation Code Section 439 defines a “qualified historical property” as a privately owned property not exempt from property taxation and listed on any national, state or local historic register. The Fullerton Plan has several historic designations based on the level of significance, including:
National Register
Local Landmark
Significant Property
Potential / Possible Significant Property
Historic Districts / Preservation Zones.
Additional Eligibility Criteria identified by the City Program include:
Property must be privately owned
Property must be subject to property taxation
Property must be residential in nature / use.
Mills Act Contract
The Mills Act Contract does not require properties to return a building to its appearance during a specific historic period. However, work completed on the property should support the long-term building preservation and shall conform with the Secretary of Interior’s Standards for Rehabilitation. All work must relate to the exterior or building systems.
The City requires Mills Act contract applicants to submit a description of work, timeline and cost estimates for the property rehabilitation during the first ten-year term of the contract. The Rehabilitation / Maintenance Plan provides a ten-year work plan. The Mills Act contract between the property owner and the City of Fullerton includes the Rehabilitation / Maintenance Plan as an attachment and becomes binding on all future property owners. The proposed Rehabilitation / Maintenance Plan identifies qualifying exterior improvements.
The owner would need to submit a report to the City each year after the executing the Mills Act contract to demonstrate Rehabilitation / Maintenance Plan progress and compliance with contract terms. The owner must obtain any building permits required for on-going rehabilitation work and for any long-term maintenance work. 315 North Balcom Avenue
Property owner Chwung Park submitted an application on June 16, 2026 requesting approval of a Mills Act contract for property located at 315 North Balcom Avenue. The property is located on the west side of Balcom Avenue, approximately 340 feet south of the intersection with Chapman Avenue. The property was built in 1920 and represents a “Craftsman” architectural style popular from 1905 to 1920. 315 North Balcom Avenue is a privately owned residence located in the R-2P Zoning Designation categorized as a “Two-Family Residential Preservation” zone. The property is part of the Townsite, East Historic District. The property qualifies for Mills Act contract consideration given that the property falls under a qualified historic designation and meets additional Eligibility Criteria.
The detached single-family dwelling incorporates design elements commonly seen in “Craftsman Bungalow” style homes. Elements include: a simple rectangular form, exposed roof rafters, a wide, low front porch, clapboard surfacing/siding and the pronounced use of exposed structural members.
Minor residential alterations have been made to the property over time. A solid rear patio, designed to replicate the original architectural style, was added to the home in 2006 (permit number BLD06-01463). A 335 square foot pool with spa was permitted and constructed in 2007 (permit number SPO07-00057). Under permit number BLD07-01467, a wood fence was replaced with a 6-foot-tall block wall at the rear of the property. The permit also included placement of an additional block (approximately seven inches tall) along the existing block wall on the north side of the property. Outside of these modifications, the home is highly original and retains its original siding and windows.
Existing Conditions
Pursuant to adopted guidelines, a pre-application survey with Fullerton Heritage was conducted prior to submitting this application. The purpose of the pre-application survey is to determine and discuss whether the property is a good candidate for a Mills Act Contract. A member of Fullerton Heritage met with the property owner, took pictures of the exterior of the property and provided documentation to the City of Fullerton Planning Division. In evaluating the qualifications of the property, considerations were made regarding areas that may appear to have lost their historic integrity and areas that are unsightly or unkempt. These included:
Inappropriate landscaping
Incompatible fencing in front or side yards
Architectural features that were not historic features of the residence Mechanical equipment.
On June 18, 2026, staff visited the property and conducted a pre-contract inspection. A thorough walk-through of the exterior of the property revealed that the property is generally in good standing with proper maintenance of its historic integrity. As demonstrated in the house photo, the exterior of the home is well maintained, and its original architectural features remain intact.
Based on the findings from the pre-contract inspection, the property continues to maintain its architectural integrity, according to state and local standards, and remains a qualified historical property that is appropriate for consideration of a Mills Act Contract. 332 West Brookdale Place
On February 11, 2026, property owners Kyle and Shana Beym submitted an application requesting approval of a Mills Act Contract for their property located at 332 West Brookdale Place. The property is located on the south side of Brookdale Place, approximately 180 feet east of the intersection with Ford Avenue. The property was built in 1930 and represents a “Spanish Colonial Revival” architectural style that was popular from 1915 to 1941. 332 West Brookdale Place is a privately owned residence located in the R-1-7.2P Zoning Designation categorized as a “One-Family Residential, Preservation” (7,200 square feet minimum lot size) zone. The property is part of the Brookdale Heights Historic Preservation Zone. Given that the property falls under a qualified historic designation and meets additional Eligibility Criteria, the property qualifies for consideration of a Mills Act Contract.
The existing single-family dwelling and Accessory Dwelling Unit (ADU) incorporate design elements commonly seen in Spanish Colonial Revival homes. Exterior design elements include a gabled, low-pitched tile roof, uneven, hand-applied stucco treatment and wood framed casement windows.
Pursuant to Zoning Administrator Resolution No. ZA-2021-02 (ZON-2020-0082), a Minor Site Plan was approved to construct a detached two-story, three-car garage and two-bedroom, two-bathroom ADU. The Resolution also allowed for construction of a retaining wall higher than four feet within a side yard setback and alterations to the front elevation of the residence, including converting the existing garage to a bedroom (for a total of four bedrooms and two bathrooms). The approval was conditioned to require that the new exterior stucco treatment match the uneven, hand-applied treatment of the existing residence, including the area on the front elevation filled in following removal of the garage door and the exterior walls of the new detached structure. The approval was explicitly conditioned on ensuring that the accessory structure include character-defining features of Spanish Colonial Revival Architecture, including a gabled tile roof and wood framed casement windows.
Existing Conditions
Pursuant to adopted guidelines, a pre-application survey with Fullerton Heritage was conducted prior to submitting this application. The purpose of the pre-application survey is to determine and discuss whether the property is a good candidate for a Mills Act Contract. A member of Fullerton Heritage met with the property owner, took pictures of the exterior of the property and provided documentation to the City of Fullerton Planning Division. In evaluating the qualifications of the property, considerations were made regarding areas that may appear to have lost their historic integrity and areas that are unsightly or unkempt. These included:
Inappropriate landscaping
Incompatible fencing in front or side yards
Architectural features that were not historic features of the residence Mechanical equipment.
On March 12, 2026, staff visited the property and conducted a pre-contract inspection. A thorough walk-through of the exterior of the property revealed that the property is generally in good standing with proper maintenance of its historic integrity. As demonstrated in the photo of the main house, the exterior of the home is well maintained and its original architectural features, including stucco walls, low-pitched, tile roof and recessed windows remain intact.
Based on the findings from the pre-contract inspection, the property continues to maintain its architectural integrity, according to state and local standards, and remains a qualified historical property that is appropriate for consideration of a Mills Act Contract. 519 West Fern Drive
On April 27, 2026, property owners Mary Therese Kerrigan and Marco A. Martinez submitted an application requesting approval of a Mills Act Contract for their property located at 519 West Fern Drive. The property is located on the north side of Fern Drive, approximately 245 feet west of the intersection with Richman Avenue. The property was built in 1929 and represents a “Spanish Colonial Revival” architectural style that was popular from 1915 to 1941. 519 West Fern Drive is a privately owned residence located in the R-1-7.2P Zoning Designation categorized as a “One-Family Residential, Preservation” (7,200 square feet minimum lot size) zone. The property is identified in the City of Fullerton Local Register of Historical Resources as HL-57 (“Cleaver House”). Additionally, the property is part of the Upper Golden Hill Historic Preservation Zone. Given that the property falls under a qualified historic designation and meets additional Eligibility Criteria, the property qualifies for consideration of a Mills Act Contract.
Constructed in 1929 by notable Fullerton building contractor Philip N. Schmoker, this unique Spanish Colonial Revival house is the most distinctive and recognizable in a neighborhood of unusual residences. Elevated above the street grade, the two-story structure has an “L” shape with a central circular tower that rises 30 feet in height, providing a counterpoint to the two rectangular wings. The design is rich in detail with custom features: two small arched windows above the arched entry, large parabolic picture window on the east side, circular penthouse over tower element and mosaic tiles at the base of the structure. Elements of the home also include smooth stucco surfaces, barrel roof tiles and use of decorative iron work.
Pursuant to Director Determination PRE-2024-0039 and permit number BLDR-2024-0697, permits were obtained to remove and replace six windows on the property. These like-for-like, retrofit changeouts were Title 24 compliant and designed to meet California energy efficiency standards. Windows were placed into their original openings; no frame removal, structural or header changes were involved.
Existing Conditions
Pursuant to adopted guidelines, a pre-application survey with Fullerton Heritage was conducted prior to submitting this application. The purpose of the pre-application survey is to determine and discuss whether the property is a good candidate for a Mills Act Contract. A member of Fullerton Heritage met with the property owner, took pictures of the exterior of the property and provided documentation to the City of Fullerton Planning Division. In evaluating the qualifications of the property, considerations were made regarding areas that may appear to have lost their historic integrity and areas that are unsightly or unkempt. These included:
Inappropriate landscaping
Incompatible fencing in front or side yards
Architectural features that were not historic features of the residence Mechanical equipment.
On June 18, 2026, staff visited the property and conducted a pre-contract inspection. A thorough walk-through of the exterior of the property revealed that the property is generally in good standing with proper maintenance of its historic integrity. As demonstrated in the house photo, the exterior of the home is well maintained and its original architectural features, including central circular tower, arched entry and windows, stucco surfaces, barrel roof tiles and decorative iron work remain intact.
Based on the findings from the pre-contract inspection, the property continues to maintain its architectural integrity, according to state and local standards, and remains a qualified historical property that is appropriate for consideration of a Mills Act Contract. 335 West Jacaranda Place
On July 15, 2026, property owners Emily and Blake Schaffeld submitted an application requesting approval of a Mills Act Contract for their property located at 335 West Jacaranda Place. The property is located on the north side of West Jacaranda Place, approximately 185 feet east of the intersection with Ford Avenue. The property was built in 1922 and represents a “Spanish Revival” architectural style that was popular from 1915 to 1940. 335 West Jacaranda Place is a privately owned residence located in the R-1-7.2P Zoning Designation categorized as a “One-Family Residential, Preservation” zone. The property is part of the Jacaranda / Malvern / Brookdale Historic District. Given that the property falls under a qualified historic designation and meets additional Eligibility Criteria, the property qualifies for consideration of a Mills Act Contract.
The detached single-family dwelling incorporates design elements commonly seen in “Spanish Revival” style homes. Elements include: a low-pitched roof, clad with clay roof tiles, plaster (stucco) walls, arched openings and glazed tile decoration.
Minor residential alterations have been made to the property over time. Permit number 97-00996, issued in February 1997, permitted an addition of 495 square feet. The new square footage was designed as a kitchen nook, master bedroom, master bathroom and reading room. Permit number 01-03851 was applied for in June 2001, requesting construction of a 600 square feet detached garage, including a 90 square feet laundry room and 30 square feet bathroom. Records indicate that while this permit was formally submitted, it has expired and the work was never performed. Outside of these modifications, the home is highly original and retains its original architectural features.
Existing Conditions
Pursuant to adopted guidelines, a pre-application survey with Fullerton Heritage was conducted prior to submitting this application. The purpose of the pre-application survey is to determine and discuss whether the property is a good candidate for a Mills Act Contract. A member of Fullerton Heritage met with the property owner, took pictures of the exterior of the property, and provided the documentation to the City of Fullerton Planning Division.
In evaluating the qualifications of the property, considerations were made regarding areas that may appear to have lost their historic integrity and areas that are unsightly or unkempt. These included:
Inappropriate landscaping
Incompatible fencing in front or side yards
Architectural features that were not historic features of the residence Mechanical equipment.
On August 17, 2026, Staff visited the property and conducted a pre-contract inspection. A thorough walk-through of the exterior of the property revealed that the property is generally in good standing with proper maintenance of its historic integrity. As demonstrated in the house photo, the exterior of the home is well maintained, and its original architectural features remain intact.
Based on the findings from the pre-contract inspection, the property continues to maintain its architectural integrity, according to state and local standards, and remains a qualified historical property that is appropriate for consideration of a Mills Act Contract. 542 West Valley View Drive
On July 27, 2026, property owner Steven J. Cooper submitted an application requesting approval of a Mills Act Contract for his property located at 542 West Valley View Drive. The property is located on the south side of Valley View Drive, approximately 80 feet east of the intersection with Grandview Avenue. The property was built in 1922 and represents a “Spanish Revival” architectural style that was popular from 1915 to 1940. 542 West Valley View Drive is a privately owned residence located in the R-1-7.2P Zoning Designation categorized as a “One-Family Residential, Preservation” zone. The property is part of the Upper Golden Hill Historic District. Given that the property falls under a qualified historic designation and meets additional Eligibility Criteria, the property qualifies for consideration of a Mills Act Contract.
The detached single-family dwelling incorporates design elements commonly seen in “Spanish Revival” style homes. Elements include: a low-pitched roof, clay tile roofing, plaster (stucco) walls and arched doors / windows.
Minor residential alterations have been made to the property over time. Under ZON-2020-0052, authorization was granted for a two-phase project. Phase 1 included a remodel of the existing residence by adding new exterior and interior walls to create a master bedroom and master bathroom, remodeling of the existing kitchen and remodeling of the existing bathroom. This phase included extending the rear of the existing home. Phase 2 consisted of a new garage adjacent to the existing garage / workshop. Under MIS-2022-0559, a revision permit was issued to add an arched entryway on the side of the new garage. This revision allowed for a design that was more complimentary to the existing Spanish Revival styling of the home.
Existing Conditions
Pursuant to adopted guidelines, a pre-application survey with Fullerton Heritage was conducted prior to submitting this application. The purpose of the pre-application survey is to determine and discuss whether the property is a good candidate for a Mills Act Contract. A member of Fullerton Heritage met with the property owner, took pictures of the exterior of the property and provided documentation to the City of Fullerton Planning Division. In evaluating the qualifications of the property, considerations were made regarding areas that may appear to have lost their historic integrity and areas that are unsightly or unkempt. These included:
Inappropriate landscaping
Incompatible fencing in front or side yards
Architectural features that were not historic features of the residence Mechanical equipment.
On August 10, 2026, staff visited the property and conducted a pre-contract inspection. A thorough walk-through of the exterior of the property revealed that the property is generally in good standing with proper maintenance of its historic integrity. As demonstrated in the photo, the exterior of the home is well maintained, and its original architectural features remain intact.
Based on the findings from the pre-contract inspection, the property continues to maintain its architectural integrity, according to state and local standards, and remains a qualified historical property that is appropriate for consideration of a Mills Act Contract.
Proposed Amendment to Mills Act Program Guidelines
Lastly, Staff recommends a minor modification to the Mills Act Program Guidelines to streamline the approval process for future Mills Act Contracts. Currently, the guidelines require Mills Act Contracts to be presented to the City Council at a regularly scheduled public hearing. Staff proposes replacing the term “public hearing” with “public meeting,” allowing contracts to be considered as regular City Council agenda items or consent calendar items. This change would reduce administrative costs and processing time associated with public hearing requirements while maintaining public transparency and City Council oversight. All Mills Act Contracts would continue to require City Council approval at a publicly noticed meeting, and the City Council would retain its full discretion to approve, deny or modify proposed contracts. This amendment is consistent with the administrative practices commonly used by other municipalities and would improve the efficiency of the City's Mills Act Program.
Attachments:
Attachment 1 – PowerPoint Presentation
Attachment 2 – Draft Resolution (315 North Balcom Avenue) Attachment 3 – Draft Resolution (332 West Brookdale Place) Attachment 4 – Draft Resolution (519 West Fern Drive)
Attachment 5 – Draft Resolution (335 West Jacaranda Place) Attachment 6 – Draft Resolution (542 West Valley View Drive) Attachment 7 – Revised Mills Act Program Guidelines
cc: City Manager Eddie Manfro
Five Mills Act Contracts
October 20, 2026 - Page 2