October 3, 2023
HONORABLE MAYOR AND CITY COUNCIL
City of Long Beach
California
RECOMMENDATION:
Request the City Attorney to prepare Ordinances to designate the properties located at 3305 East. 1st Street, 645 West 11th Street, 622-628 E. Anaheim Street, 953 Chestnut Avenue, 4004 Country Club Drive, 338 Junipero Avenue, 1400 Hellman Street, 830 Santiago Avenue, 151 St. Joseph Avenue and 822 Willow Street as Long Beach Historic Landmarks; and,
Authorize the City Manager, or designee, to execute Mills Act historic property contracts with property owners of 26 historic properties. (Districts 1, 2, 3, 5, 6 and 7)
DISCUSSION
The Mills Act, enacted by State law in 1972, allows local governments to enter into tax abatement contracts with property owners of historic structures in exchange for a commitment to a historic preservation work program for the property. Property owners propose a work program as part of their contract and agree to restore, maintain, and preserve the property in accordance with specific historic preservation standards and conditions identified in the contract.
Entering into a Mills Act contract results in a property tax reassessment by the County Assessor, using the income-capitalization method, which may result in a 30 to 50 percent reduction in property tax, depending on the property. In exchange, applicants commit to a historic restoration work plan for the property. The City of Long Beach (City) Mills Act Program (Program) was originally established in 1993, under the authority of the State legislation. The Program was temporarily paused in 2021 and 2022 due to economic impacts related to the COVID-19 pandemic. Likely due to that pause, the 2023 process was more competitive than usual, with 44 percent more applications than the average of the previous eight years. As part of the review process, applications that included a comprehensive list of restoration work and included hiring local Long Beach businesses for the restoration work were prioritized for selection.
Mills Act contracts are executed between the Cityand the property owner for an initial term of ten years, with an annual automatic ten-year renewal, unless a request for non-renewal is made by either party. The City maintains various mechanisms to bring a property into compliance and can terminate the contract if the property owner breaches any of the contract terms. The Development Services Department (Department) conducts an inspection prior to the approval of Mills Act contracts for each eligible property for which applications are submitted. To assure Development Services Department
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properties are properly maintained and that rehabilitation is occurring in accordance with the executed Mills Act contracts, contract holders are required to report back on progress against their work program and by allowing for periodic site inspections by city staff.
Under the current Program requirements, a total of 22 Mills Act contracts can be awarded in a typical year across various building categories. Additionally, Mills Act contracts that are not awarded in previous years can be awarded in subsequent years to exceed the annual 22- contract limit in a given year; such was the case for the 2023 cycle. City staff conducted outreach to the public and invited property owners to apply for the 2023 Mills Act program cycle via multiple e-blasts and direct emails, as well as promoting the opportunity on the City’s social media platforms. Written notification for two in-person Mills Act workshops was mailed out to all property owners of local designated landmark properties and property owners of properties located in historic districts. The first workshop was held at the Jordan High School Auditorium on January 28, 2023, and there were over 175 people in attendance. The second workshop was held at the Long Beach Utilities Auditorium on February 18, 2023, and was attended by over 85 people.
To be eligible for the Program, properties must be located within a historic district or be designated as a historic landmark. Property owners may apply jointly for Mills Act and Historic Landmark designation during the Mills Act application period. To be eligible for Landmark designation, the property must meet at least one of the four criteria for landmark designation, which is outlined in Chapter 2.63.050 of the Long Beach Municipal Code (LBMC). The criteria are as follows:
A. It is associated with events that have made a significant contribution to the broad patterns of the City’s history; or
B. It is associated with the lives of persons significant in the City’s past; or C. It embodies the distinctive characteristics of a type, period, or method of construction, or it represents the work of a master, or it possesses high artistic values; or, D. It has yielded, or may be likely to yield, information important in pre-history or history.
The 2023 application process was very competitive, as a total of 43 Mills Act applications were received by the Department’s Planning Bureau for the 2023 application cycle. This represented a 44 percent increase in applications submitted in 2023 compared to the average in the past eight years.
While there are historic properties throughout all of Long Beach, the southern portion of the City retains high concentrations of older building stock and has the largest number of historic districts and historically designated properties, which explains why there is a larger number of applications in Council Districts 1 and 2. Council District 5 received the second highest concentration of applications submitted since California Heights Historic District is located in Council District 5. The Department has been working on two historic preservation initiatives that involve a broader study and recognition of various underrepresented communities in Long Beach history in order to help fill historical gaps within City historic preservation documents,
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such as the Historic Context Statement, which currently provides very limited information about communities of color. Building upon the Race and Suburbanization historic context statement approved in 2022, City staff are continuing efforts to expand the historic preservation program to increase recognition and preservation of community histories that are currently underrepresented in the historic preservation program in Long Beach. The citywide historic context statement update effort is anticipated to be completed later this calendar year. At that time, City staff will be re-evaluating the design of the Mills Act program to identify ways of more equitably awarding Mills Act contracts in future years including with a focus on properties recognized through the context statement updates as well as other equity considerations.
OnOn April 25, 2023the Cultural Heritage Commission recommended that the City Council designate a one-story commercial building located at 822 W. Willow Street as a Historic Landmark (Attachment A). On May 30, 2023, the Cultural Heritage Commission recommended that the City Council designate 3305 E. 1st Street and 4004 Country Club Drive, two residential properties as Historic Landmarks, and to approve 26 Mills Act contracts (Attachment B).
Previously, on August 13, 2018, the Cultural Heritage Commission recommended that the City Council designate seven new historic landmarks. Subsequently, on September 18, 2018, the City Council requested that the City Attorney prepare Ordinances to designate the properties, 645 W. 11th Street, 622-628 E. Anaheim Street, 953 Chestnut Avenue, 338 Junipero Avenue, 1400 E. Hellman Street, 830 Santiago Avenue, and 151 St. Joseph Avenue as Historic Landmarks (Attachment C). However, the ordinances for the seven properties were inadvertently not brought back to City Council for formal ordinance adoption in 2018. These seven properties are now being brought back for formal adoption as historic landmarks.
Ultimately a total of 10 landmark designations and 26 Mills Act contracts are recommended for approval as part of this action.
The three recommended landmark designation applications recommended by the Cultural Heritage Commission on May 30, 2023 are as follows:
1. 3305 E. 1st Street (District 2) – The single-family residential building was constructed by Miner Smith in 1924. The unique building was constructed in the Craftsman architecture style but has American Foursquare features. Original homeowners, Fredrick William (1875-1956) and Clara Rehbock (1878-1954) were prominent and active members of the Long Beach community and Long Beach business owners. Fred was an avid early aviator, and he owned a large hangar at the Long Beach Airport, the F.W. Rehbock Hangar, later renamed the “Lewis Aviation Service- F.W. Rehbock.” This property is eligible under Criteria B representing F. W. Rehbock’s contribution to aviation in Long Beach.
Miner Smith (1877-1965) was an artisan builder of bungalows in the 1920’s. He specialized in custom, high-quality bungalows and built over 23 houses in Long Beach.
Advertised as “Bungalow Mansions”, Miner Smith was known for constructing his bungalows with elaborate architectural detail such as ornamental concrete porches and
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fireplaces that looked like logs or trees, and porte-cocheres over the driveway. This property is also eligible under Criteria C representing the work of a master builder, Miner Smith.
2. 4004 County Club Drive (District 5) – The home was built in 1959 in the International Architectural style designed by the Killingsworth, Brady and Smith architectural firm (KBS). The house was commissioned by Maurice (1908-1960) and Mary (1906-1977) Frank. Maurice and his brother Edward Frank were business owners of Frank Brothers Furniture, a retail store for midcentury modern furniture based in Long Beach. The Frank brothers were pioneers in the field of modern furniture in Long Beach and they closely collaborated with architects and designers and were closely associated with the midcentury modern movement in Long Beach. Maurice lived in the house with Mary until his death in 1960. Mary resided in the house until 1973 when she moved into a condominium on Junipero Avenue and 1st Street. This property is eligible under Criteria B for Maurice Frank’s contribution to mid-century modern furniture retail efforts.
Edward Killingsworth, Fellow of the American Institute of Architects (FAIA) (1917-2004) was a master architect and founding partner of the American Institute of Architects (AIA) award-winning KBS. Based in Long Beach, the architecture firm was responsible for some of the greatest mid-twentieth century structures in Southern California. This property is therefore also eligible for Criteria C representing the work of a master architect, Edward Killingsworth.
3. 822 Willow Street (District 7) – A one-story commercial building constructed in 1961 in the International Style designed by KBS. Edward Killingsworth, FAIA (1917-2004), was a master architect and founding partner of the AIA award-winning firm of KBS. As mentioned above, the firm was responsible for some of the greatest mid-twentieth century structures in Southern California. The historic building is associated with the life of a prominent figure in Long Beach history, Edward A. Killingsworth, FAIA. This building is an example of Killingsworth’s early commercial work and incorporates distinct characteristics of Killingsworth designs at the turn of the 1960s. This subject building reflects many of the features that came to define the architectural aesthetic associated with both Killingsworth as an individual and the architectural firm KBS on a very smallscale building and is unique because it was designed and built prior to KBS fully embracing larger commercial building commissions. The commercial building is eligible for Criteria B representing Edward Killingsworth’s contribution to mid-century modern movement in Long Beach and Criteria C representing the work of a master builder, Edward Killingsworth.
The seven recommended landmark designation applications recommended by the Cultural Heritage Commission in 2018 are as follows:
4. 645 W. 11th Street (District 1) – A two-story single-family residence built in 1911 in the Swiss-Chalet Craftsman architectural style. The building is significant as one the earliest buildings in the former Willmore City founded by William Willmore. The subject
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property’s significance also rises to the state level, as it is a strong example of this early settlement and the residences from this period in the state’s history, and clearly reflects a specific event, notably the move to seaside resorts that marked an important moment in Southern California history. The building retains character-defining features including the cross-gable roof, clapboard siding, porch, exposed rafter tails, projecting bays, cross bracing, and decorative cross detailing that identify the property as a Craftsman with Swiss Chalet influence.
5. 622-628 E. Anaheim Street (District 6) – A two-story commercial building constructed in 1929. The building sustained damages during the Long Beach earthquake and was rebuilt in the Art Deco architectural style. The building features a stucco façade with decorative vertical structural elements and a series of three ground-level storefronts.
The building is eligible for designation because it has a strong association with the growth of Anaheim Street, as a commercial corridor and the expansion of the City due to increased mobility. The building is also eligible as a distinctive example of an Art Deco style building that carries many of the hallmark features of the architectural style including smooth, stuccoed exterior walls; low-relief ornamental details; geometrical decorative elements; a truncated false tower; and a general emphasis on verticality.
6. 953 Chestnut Avenue (District 1) – A two-story residence constructed in 1903 in the Queen Anne architectural style. The subject property is associated with early contractor and Long Beach builder Robert J. Craig. Craig’s extensive career in early Long Beach included numerous single-family residences, apartment buildings, and municipal buildings. The building retains character defining features such as an irregular roofline with boxed eaves, a side-gabled roof system with dormers and a turret. The turret features a bell-curved pyramidal roof. The second-floor walls feature pedimented dormers accented with coursed fish scale shingles. The exterior of the building is clad in horizontal shiplap with shiplap foundation skirting and a band board at the water line.
7. 338 Junipero Avenue (District 2) – A one-story single-family residence constructed in 1901 in the Craftsman architecture style. The building is associated with events that made a significant contribution to the city. The building possesses a significant value attributable to the development of the city. The property was part of the Carroll Park Tract, that incorporated oval-shaped subdivisions with winding roads, which is reflective of the City Beautiful Movement and Craftsman Bungalows. The property falls within the period of significance of the existing local historic district of 1898-1923.
8. 1400 Hellman Street (District 1) – A one-story single-family residence constructed in 1912 in the Craftsman architectural style. The property conveys the period of expansion of the City as a seaside resort destination, and the City Beautiful Movement, that took place in Long Beach, during its construction. The property was part of the Long Beach town-site, which is reflective of the City Beautiful Movement and Craftsman Bungalows, that helped shape the aesthetically-pleasing and picturesque character of Long Beach.
The property falls within the Period of Significance of the existing local historic district of 1898-1923. The building is a high-style example of a Swiss Chalet Craftsman featuring
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exterior walls clad in wood clapboard siding, exposed rafter tails, procreative braces, and full-width porch.
9. 830 Santiago Avenue (District 3) – A two-story, single-family residence constructed in 1937 in the Colonial-Revival architectural style. The building is significant for its association with a period in history that involved the discovery of oil in Long Beach. The building was constructed in the 1930s, when little construction occurred, due to World War II preparations. The building is a unique example of the Colonial Revival style designed by Long Beach master architect Kenneth Wing.
10.151 St. Joseph Avenue (District 3) – A two-story, single-family residence constructed in 1928 in the Eclectic Spanish Colonial Revival architectural style. The building is associated with events that have made significant contribution to the broad patterns of the City’s history. The building conveys the growth and expansion from central Long Beach into areas purchased by Henry Huntington. The building also conveys a particular historic architectural style as an Eclectic Spanish Colonial Revival.
The Cultural Heritage Commission recommended the following 26 Mills Act applications from the 2023 application cycle:
1. 2621 E. 1st Street (District 2) – A two-story single-family residence that features a steep cross gable roof system, clad in two different styles of wall cladding (wood shingle and horizontal wood siding) symmetrical façade and off centered covered porch with a gable roof. The building is intact and the workplan includes foundation replacement, restoration of the exterior wood shingle siding and windows, reroofing, roof eave repair, fascia repairs, and upgrades to electrical and plumbing.
2. 3305 E. 1st Street (District 2) – A two-story Foursquare with Craftsman details that feature scalloped wood shingle siding on the upper walls and horizontal wood planks on the lower walls, a hip roof system with a side facing gable roof system and original wood windows. The workplan includes exterior wood restoration, window restoration, restoration of the pedestals/columns and balustrades, replacing the Knob and Tube electrical wiring, removing and replacing galvanized plumbing, upgrading heating system, repainting the exterior building using appropriate color palette for the architecture style. The property exceeds the property valuation limit, so the property can only be considered in the exceptional architectural category. It must also be designated as a landmark in order to be eligible for the Mills Act.
3. 3333 E. 2
nd Street (District 2) – A one-story Craftsman style that features a front facing gable roof system with exposed roof rafters and beams, horizontal wood siding, a wide covered porch with square columns and wood windows. The building is intact and the workplan includes foundation seismic retrofit and foundation repairs due to water damage, restoring/repairing porch columns, reroofing, restoring/repairing exterior siding, repainting using appropriate Craftsman colors, replacing non-period windows
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with wood windows, repairing 17 double hung wood windows, and improving onsite drainage to address water intrusion into the building.
4. 2553 E. 3rd Street (District 2) – A two-story airplane style Craftsman that features front facing gable roof systems with wide overhanding eaves and exposed rafter tails and beams, horizontal exterior wood siding and wood windows. The building is intact, and the work plan includes foundation repairs, reroofing of the house and garage, restoration of the porch and brick columns, restoring/repairing of 23 wood windows on the house, restoring/repairing four doors, removing the artificial turf and concrete floor repair, restoration of exterior siding and repainting with Craftsman colors, repairing/restoring the garage, installation of a new concrete driveway and removal of chain link fencing.
5. 347 W. 7th Street (District 1) – A two-story Queen Anne that features various roof lines and wide overhanging roof eaves, horizontal exterior wood siding and decorative scalloped shingles, decorative wood windows and covered porch with decorative support columns. The building is intact, and the work plan includes installation of a new foundation, removal of the non-original red bricks installed in front of the existing cinder block foundation, around the porch columns and along the walkways and porch floor, window restoration/repair, exterior siding restoration and repainting, plumbing system upgrades, removal of all chain link fencing and landscape improvements. The improvements will protect the building’s important features as well as allow the building to be visible from the right of way.
6. 2740 E. Broadway (District 2) – The Houser Building - A three-story mixed-use building designed in Italian Renaissance style with Spanish Baroque decorative accents. The building is intact, and the work plan includes front facade improvements which include Terracotta cleaning/restoration, brick façade restoration/cleaning, decorative wrought iron restoration (cleaning and painting), restoration/repair of the red clay tile roof on the tower, upgrade plumbing and electrical systems. Painting and resurfacing all metal on the roof, flashings, spouts, removing non-original windows and installing period windows and restoring all original wood windows. The improvements will protect the building’s important features.
7. 324-328 Carroll Park West (District 2) –An interior lot featuring a two-story Spanish Colonial duplex and a detached single-story Craftsman Bungalow. The Spanish Colonial work plan includes foundation replacement and stucco wall restoration, restoration of the wood beams and roof eaves, restoration of 17 wood windows, reroofing, electrical and plumbing system upgrades and repainting. The Bungalow’s 24 wood windows will be repaired/restored.
8. 2324 Carroll Park South (District 2) – A two-story Queen Anne that features a cross gable roof system, horizontal wood planks on the lower lever and scalloped wood singles on the upper walls and wood windows. The building is intact and the workplan includes a foundation replacement and seismic retrofit, exterior siding restoration, repainting in
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appropriate Queen Anne exterior colors, restoration of the rear covered porch and deck above, garage reroof and installation of new period appropriate garage doors.
9. 3556 California Avenue (District 5) – A one-story Spanish Colonial Revival that features two roof systems – a front facing gable roof with red clay tiles and a flat roof, wood windows, and a small courtyard. The building is intact, and the work plan includes foundation seismic retrofit, reroof, window restoration, replacing non-original windows and installing wood windows, restoration of the exterior stucco and repainting of the house and garage.
10.1146 Cedar Avenue (District 1) – A two-story Craftsman that features cross gable roof systems, exposed rafter tails and beams, exterior shingle siding and wood windows and a modest rear dwelling unit. The rear unit features a flat roof, horizontal wood siding and wood windows. Both buildings are intact and the workplan includes installation of a new foundation, restoration of the porch and pergola, restoration of the exterior wood shingles, rafter tails, and eaves on both dwellings, restoration of the original front door, and upgrading the electrical and plumbing systems.
11.3628 Cerritos Avenue (District 5) – A one-story Spanish Colonial Revival that features a front facing gable roof with red clay roof tiles, and a large chimney flanked by wood windows. The building is intact and the workplan includes foundation repairs, restoration of exterior stucco, window restoration, restoration of the porch and chimney, repainting and restoration/repairs to the garage.
12.334 Colorado Place (District 2) – A one-story Craftsman that features a low sloping front facing gable roof, large wood windows flanking the centered entry door and a wide covered porch supported by brick columns. The building is intact, and the workplan includes foundation retrofit, reroofing, window restoration, overall repair and restoration of the exposed wood eaves, rafter tails and beams, porch walls and columns, upgrading the plumbing system and garage repairs.
13.4004 Country Club Drive (District 5) – A two-story International architectural style building which features post and beam architecture with a flat roof system and stucco exterior. The workplan will restore the unique post and beam elements of the building such as the metal beams, wood posts and trims, windows and glass doors, and includes repainting and restoration to the front yard. The property must also be designated as a landmark in order to be eligible for the Mills Act.
14.803 Daisy Avenue/615 W 9th Street (District 1) – A corner lot with two buildings: a two-story Craftsman triplex and a two-story Folk Victorian duplex. The two-story Craftsman triplex features front facing low sloping gable roof, exposed eaves and beams, horizontal wood siding, and wood windows. The two-story Folk Victorian features a front facing steep gable roof, horizontal wood siding, wood windows, and a centered front porch. Both buildings are intact and the workplan includes reroofing and upgrades to the electrical system for the Triplex and restoration of the exterior wood
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siding, repainting, and upgrading the electrical and plumbing systems for the Folk Victorian.
15.2100 Eucalyptus Avenue (District 7) – A corner lot developed with a one-story Spanish Colonial Revival home and an apartment located above the garage. The home features a gable roof system with red clay roof tiles, arched picture window, a turret entry, and original wood windows. The apartment unit features a flat roof, stucco exterior and nonoriginal metal windows. The workplan for the home includes foundation repairs and seismic retrofit work, stucco wall repairs, repainting, and electrical system upgrades.
The work plan for the apartment unit includes window replacement of the eight nonoriginal metal windows and installation of new wood windows, stucco wall repairs, and repainting.
16.2151 Eucalyptus Avenue (District 7) – A two-story Spanish Colonial Revival featuring side gable roof systems, stucco walls, wood windows in arched openings, and a courtyard enclosure. The building is intact, and the workplan includes reroofing, to include preserving the red clay tiles and installing underlayment, stucco wall restoration, chimney repair, window and door restoration, electrical and plumbing systems upgrades, repair/restoration to courtyard walls and iron gate, and landscape removal that is damaging the courtyard walls.
17.784 Freeman Avenue (District 2) – A one-story Craftsman featuring a side facing gable roof system, horizontal exterior wood siding, wood windows and a covered porch with a front facing gable roof. The building is intact, and the workplan includes major foundation repairs, roof replacement, electrical and heating systems upgrades, exterior siding restoration and repainting.
18.774 Gladys Avenue (District 2) – A two-story Craftsman featuring side facing gable roof system, two styles of exterior wood siding/shingles, wood windows and an offcentered porch with a front facing gable roof structure. The building is intact, and the workplan includes reroofing, restoration of the front porch and pergola, restoration of windows and doors, replacing non-original windows, and upgrades to the electrical system.
19.32 Kennebec Avenue (District 2) – A two-story Craftsman featuring front and side facing gable roof systems, overhanging exposed eaves and beam, exterior wood shingle siding, and wood windows. The building is intact, and the work plan includes restoration of the exterior siding, repairing roof drainage and downspouts, restoration/replacement of 18 sets of casement windows, repainting, upgrading the plumbing system and replacing the garage door.
20.3759 Myrtle Avenue (District 5) – A one-story Spanish Colonial Revival featuring two roof systems: a front facing gable roof with unique red clay roof tiles and a flat roof, stucco walls, wood windows and a small courtyard. The building is intact, and the workplan includes repairing the roof and chimney, foundation repairs and a seismic
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retrofit, installation of a French drain to eliminate water intrusion damaging the foundation walls, repair/restoration of the stucco walls, restoration of 18 wood windows, and plumbing system upgrades.
21.404 Newport Avenue (District 3) – A one-story Craftsman featuring a side gable roof, horizontal wood siding and wood doors and windows. Constructed in 1919 as a singlefamily residence, it was converted to commercial use and was recently converted back to a single-family residence. The building is intact and the workplan includes removal of the vinyl siding and repair of the original horizontal wood siding and trim, restoration of twelve casement windows and entry door and sidelights, constructing a new front porch in an effort to restore the front elevation to original, structural repairs to the roof rafters and installation of a new roof, removal of metal perimeter fencing and installation of vertical wood fencing, removal of all concrete in front yard, installation of new front yard landscaping and installation of a new path leading to the stoop.
22.239-241 Orizaba Avenue (District 2) – A two-story Tudor duplex featuring varying roof systems, a turret, stucco exterior walls and metal windows. The building is intact, and the workplan includes foundation repair and seismic retrofit, exterior stucco repair, exterior trim restoration, removing nine non-original windows and replacing them with new windows, window restoration on large picture window, removing and replacing 22 non-period window screens, removal of a non-original concrete walkway and installation of a new walkway, and removal of a tree that is damaging the foundation of the building.
23.735 Sunrise Boulevard (District 6) – A two-story Craftsman featuring front and side facing gable roof systems, wide overhanging exposed eaves and beams, exterior wood shingle siding, wood windows, and a large porch beneath a front facing gable roof. The building is intact, and the workplan includes reroofing, restoration of the exterior wood shingles, restoration of the wood windows, repainting, upgrading the electrical and plumbing systems, installation of a new concrete pathway and replacement of the ribbon driveway.
24.636 Temple Avenue (District 2) – A one-story Craftsman featuring a side gable roof system, horizontal wood exterior siding, wood windows, and a porch with arched wood trim beneath the front facing gable roof. The building is intact, and the workplan includes exterior siding restoration, repainting with appropriate Craftsman colors (using at least three different paint colors), window restoration, electrical and plumbing systems upgrades, reroofing of the garage, and replacing concrete of the porch floor and walkway.
25.781 Walnut Avenue (District 1) – A one-story Craftsman featuring two front facing roof gables, wide porch with brick columns, horizontal wood siding and wood windows. The building is intact, and the workplan includes foundation repairs and seismic retrofit, reroofing and insulation installation, window restoration, restoration of the wood siding and trims and repainting with appropriate Craftsman colors (using at least three different
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paint colors), restoration of the front façade, porch and column bases, and termite mitigation and stump removal.
26.822 W. Willow Street (District 7) – A one-story commercial building deigned in the International Style (Mid-Century Modern) constructed in 1961. The building features two vertical concrete panels, which extend from the building’s cantilevered roof to the ground and a centered single wood entry door. The building is intact, and the workplan includes stucco repairs to the exterior of the building, repainting, restoration of the landscaping on the front and rear of the building and replacing the reed screens on the rear of the building. The building must also be designated as a landmark in order to be eligible for Mills Act.
This matter was reviewed by Deputy City Attorney Erin Weesner-McKinley on September 12, 2023, and Revenue Management Officer Geraldine Alejo on August 14, 2023.
ENVIRONMENTAL REVIEW
In accordance with Section 15331 Guidelines for Implementation of the California Environmental Quality Act, environmental review is not required for actions taken for the preservation or restoration of historic structures.
SUSTAINABILITY
Implementation of the Mills Act program helps retain and restore historic landmarks. This work often is completed by reusing or reclaiming existing building materials and reducing construction waste as compared to new construction.
TIMING CONSIDERATIONS
City Council action is requested on October 3, 2023, to allow enough time for City Attorney to draft contracts; the property owners and City Manager to execute the contracts; and for the contracts to be recorded prior to the December 31, 2023, deadline established by the Los Angeles County Assessor for placement on the tax rolls.
FISCAL IMPACT
The Mills Act generally results in a 30 to 50 percent property tax reduction for a historic property.
Based on an approximate combined assessed property value of $24,678,485 for the proposed Mills Act historic properties, the City could experience a decrease of property tax revenue to the General Fund ranging from approximately $16,287 to $27,146 annually. For the initial 10- year term, the total decrease of property tax to the General Fund could range from approximately $162,878 to $271,463. The Mills Act contracts require improvements made to the property and include a local hire and procurement provision. A majority of the applications specify that the property owners will hire local businesses to complete the work plan items.
Implementation of the work plan items may create unknown new offsetting sales, business
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license, building permit and other fee and tax revenues. Given the number of properties, the impact of job creation is anticipated to be limited. Implementation of the Mills Act program has no staffing impact beyond the normal budgeted scope of duties and is consistent with adopted City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION:
Approve recommendation.
Respectfully submitted,
CHRISTOPHER KOONTZ, AICP
DIRECTOR DEVELOPMENT SERVICES
ATTACHMENTS: A – CULTURAL HERITAGE COMMISSION STAFF REPORT DATED APRIL 29, 2023 B – CULTURAL HERITAGE COMMISSION STAFF REPORT DATED MAY 30, 2023 C – CITY COUNCIL LETTER DATED SEPTEMBER 18, 2018
APPROVED:
______________________
THOMAS B. MODICA
CITY MANAGER
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pre-design
berg office building remodel
822 West Willow Street,
Long Beach, CA. 90806
prepared for
West 21, Inc.
Attn: Keiro Koga, President
March 23, 2021
kadali studio | 562∙972∙6568
Attachment B
BERG OFFICE BUILDING | LONG BEACH, CA
kadali studio
LONG BEACH, CA
DATE/REVISION
TITLE
SCALE
PROJECT NO 21-822
berg office building
822 West Willow Street,
Long Beach, CA. 90806 NOT FOR CONSTRUCTION ALL MEASUREMENTS TO BE VERIFIED IN FIELD CLIENT
West 21, Inc.
2774 Dawson Avenue,
Signal Hill, Ca. 90755 562.972.6568
50'-0"
PD - 00
WILLOW STREET
GOLDEN AVENUE
OREGON AVENUE
26TH WAY
BURNETT STREET
MAINE AVENUE
SAN FRANCISCO AVENUE
3'-6" 5'-0" 100.64'
25'-0"
10'-0"
CL
OF STREET
26TH WAY
WILLOW STREET
PROPERTY LINE
(E) SINGLE STORY BUILDING
1,500 SF
PROPERTY LINE
(E) PARKING AREA
SIDEWALK
(E) GAS METER
CONTEXTUAL PLAN,
SITE PLAN
03.23.21 AS NOTED
CITY PARKWAY
CONTEXTUAL PLAN
SCALE: 1" = 200'-0"
PROPERTY INFORMATION:
ASSESSOR'S ID NO: 7202-007-004
ADDRESS: 822 W WILLOW STREET
LONG BEACH, CA
90806
PROP TYPE: COMM/INDUSTRIAL
REGION/CLUSTER: 26/26610
BOUNDARY: TRACT 9686
LOT 5
BLK 3
YEAR BUILT: 1961
SITE PLAN
SCALE: 1/8" = 1'-0"
BERG OFFICE BUILDING | LONG BEACH, CA
kadali studio
LONG BEACH, CA
DATE/REVISION
TITLE
SCALE
PROJECT NO 21-822
berg office building
822 West Willow Street,
Long Beach, CA. 90806 NOT FOR CONSTRUCTION ALL MEASUREMENTS TO BE VERIFIED IN FIELD CLIENT
West 21, Inc.
2774 Dawson Avenue,
Signal Hill, Ca. 90755 562.972.6568
PD - 01
EXISTING FLOOR PLAN
03.23.21 1/4" = 1'-0"
GENERAL OFFICE
PRIVATE OFFICE VAULT LOUNGE STORAGE/
MECH
EAST
RESTROOM
WEST
RESTROOM
PLANTER AREA
PLANTER AREA
GAS METER
ENCLOSURE
ELECT
EDGE OF DROPPED
CEILING ABOVE
TRANSOM
RECEPTION DESK ABOVE
EDGE OF DROPPED CEILING ABOVE
SIDEWALK
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CULTURAL HERITAGE COMMISSION
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May 30, 2023
CHAIR AND CULTURAL HERITAGE COMMISSIONERS
City of Long Beach
California
RECOMMENDATION:
Recommend that the City Council designate 3305 E. 1st Street and 4004 Country Club Drive as Historic Landmark buildings.
Recommend that the City Council approve Mills Act contracts for the following 26 properties:
2621 E. 1st Street, 3305 E. 1st Street, 3333 E. 2nd Street, 2553 E. 3rd Street, 347 W. 7th Street, 2740 Broadway, 324-328 Carroll Park West, 2324 Carroll Park South, 3556 California Avenue, 1146 Cedar Avenue, 3628 Cerritos Avenue, 334 Colorado Place, 4004 Country Club Drive, 803 Daisy Avenue/615 W 9th Street, 2100 Eucalyptus Avenue, 2151 Eucalyptus Avenue, 784 Freeman Avenue, 774 Gladys Avenue, 32 Kennebec Avenue, 3759 Myrtle Avenue, 404 Newport Avenue, 239-241 Orizaba Avenue, 735 Sunrise Boulevard, 636 Temple Avenue, 781 Walnut Avenue, 822 W. Willow Street. (Districts 1, 2, 3, 5, 6, 7).
APPLICANT: Varies
THE REQUEST
The Planning Bureau requests that the Cultural Heritage Commission recommend that the City Council approve two landmarks: 3305 E. 1st Street and 4004 Country Club Drive and recommend approval of 26 Mills Act contracts. The combined applications consist of 18 singlefamily properties, five duplex/triplex properties, one multi-family (more than four units), one mixed-use property, and one commercial property. In consideration of the tax abatement provided, each property owner has proposed a workplan to rehabilitate their historic buildings and maintain them over a ten-year contract term. A total of 43 Mills Act applications were filed this year (Attachment A- Location Map).
BACKGROUND
The Mills Act, enacted by State law in 1972, allows local governments to enter into tax abatement contracts with property owners of historic structures in exchange for a commitment to a historic preservation work program for the property (Attachment B- Mills Act Guide).
Property owners propose a work program as part of their contract and agree to restore, maintain, and preserve the property in accordance with specific historic preservation standards and conditions identified in the contract. Entering into a Mills Act contract results in a property tax reassessment by the County Assessor, using the income-capitalization method, which may Development Services
Planning Bureau
411 West Ocean Boulevard, 3rd Floor, Long Beach, CA 90802 562.570.6194
CHAIR AND CULTURAL HERITAGE COMMISSION
May 30, 2023
result in a 30 to 50 percent reduction in property tax, depending on the property. That property tax incentive is provided in exchange for the completion of the historic preservation work program agreed to by the property owner and the City.
The City of Long Beach Mills Act Program was established in 1993, under the authority of the State legislation. The Program provides a financial incentive for property owners undertaking restoration, rehabilitation or maintenance of a designated historic property. The incentive is achieved through property tax relief to owners of historic properties in exchange for the rehabilitation and restoration of the historic property pursuant to the terms of a Mills Act contract with the City. Long Beach’s Mills Act program launched in 1993. After nearly a 10-year hiatus, the City Council revised and reinstated the program in 2015. The program was temporarily put on hold in 2020 due to staffing shortages related to the COVID-19 pandemic.
As with previous application cycles, staff conducted outreach to notify the public, invite property owners to apply for the Mills Act program and to provide technical assistance with the application process. Staff mailed notification to all owners of historic district properties and historic landmark properties notifying them of upcoming Mills Act workshops. The preapplication workshop was held at The Jordan High School Auditorium on January 28, 2023, and there were over 175 people in attendance. The second workshop was held at Long Beach Gas & Oil Auditorium on February 18, 2023 and was attended by over 85 people. There was a high turnout of attendees at these workshops because of the program’s suspension due to COVID. The Pre-Application workshop is intended to provide general information about the Mills Act program, property criteria, and benefits of the Mills Act Program. The second workshop provides more detailed program information, staff assistance with applications, and opportunities to ask specific questions. Planning Bureau staff worked with the Development Services Communications Bureau on a multifaceted communications approach to get out information to the public, which included: a press release announcing that the Mills Act application process was reinstated after a hold due to COVID, multiple e-blasts and reminders of the workshops, as well as promoting on multiple social media platforms.
To be eligible for the Mills Act program, a building must be currently designated as a landmark, be eligible for landmark designation and complete the designation process, or be a contributing structure located in a historic district. The Commission also added a category for buildings that are exceptional architectural buildings, culturally significant, or at risk of demolition. Under the current program requirements, a total of 22 Mills Act contracts can be awarded in a typical year across various property types. Application categories are based on property type and have a corresponding annual limit of contracts that can be awarded under each property type. A maximum of 12 contracts can be awarded per year to single family properties, three contracts per year for duplex or triplex properties, four contracts to multi-family properties with 4 units or greater, one contract each to non-residential (commercial, industrial, and institutional) properties, and two contracts regardless of property type if the property is deemed to be of exceptional architecture, culturally significant or at risk of demolition. The City has some additional capacity for contracts this year thanks to rollover slots that were not awarded in last three application cycles since 2020.
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ANALYSIS
A total of 43 Mills Act applications were received by the Planning Bureau for the 2023 application cycle. 30 of the applications received were in the single-family category, eight (8) applications were received for the duplex and triplex category, four (4) applications were received for the multi-family/mixed-use category. One application was received for the nonresidential category. The following tables provide a breakdown of the applications received:
Table 1. Landmark Designated Properties Applications
Landmark Building
Name
Address Building Type Historic District
Houser Building 2740 E.
Broadway
Mixed-Use (Commercial and
Residential)
N/A
Casa Aitken 725 E. 8th Street Multi-Family Residential N/A Table 2. Applications that Include Requests for Landmark Designation Historic District Address Building Type
Bluff Park 3305 E. 1st Street Single-Family
N/A 4004 Country Club Drive Single-Family
N/A 2105 Bermuda Avenue Multi-Family
N/A 82 Rivo Alto Canal Single-Family
Table 3. Contributing Resource to Historic District Applicants Property Type Number
Single-Family 28
Duplex/Triplex 8
Multi-Family / Mixed-Use
(4 or more units
2 Commercial 0
Included in this report is application information sorted by historic district and council district to illustrate the geographic distribution of applications received throughout the city. The largest single source of applications this year were from properties located in historic districts.
Residents from the California Heights Historic District filed 11 applications which is the most of any historic district. The City received applications for properties in 11 out of 18 historic districts, and 6 out of 9 council districts. By Council District, most applications filed were by property owners located in Council District 2, which has the highest concentration of historic districts – five historic districts. Council Districts 1 and 5 include high numbers of applications. Table 4 and 5 summarize the number of applications historic district and council district.
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Table 4 Applications by Historic District
Applications by CD
Belmont Heights 1
Bluff Heights 4
Bluff Park 7
Brenner Place 0
California Heights 11
Carroll Park a 2
Drake Park/Willmore City 4
Eliot Lane 0
Grant Neighborhood 0
Helman Street / Craftsman 1
Linden Drive 0
Lowena Drive 0
Minerva Drive 0
Rose Park 3
Rose Park South 1
Sunrise 1
Wilton Street 0
Wrigley Area 2
Total 43
Table 5 Applications by Council District
Applications by CD
CD1 6
CD2 19
CD3 2
CD4 0
CD5 12
CD6 1
CD7 3
CD8 0
CD9 0
Total 43
Tables 4 and 5 illustrate that most applications are from the southern part of the City. While there are historic properties throughout all of Long Beach, the southern portion of the City retains high concentrations of older building stock and has the largest number of historic districts and historically designated properties, which explains why there is a larger number of applications in Council Districts 1 and 2. Council District 5 received the second highest
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concentration of applications submitted since California Heights Historic District is located in Council District 5. The Development Services Department has been working on two historic preservation initiatives that involve a broader study and recognition of various underrepresented communities in city history in order to help fill historical gaps within City historic preservation documents, such as the Historic Context Statement, which currently provides very limited information about communities of color. Building upon the Race & Suburbanization historic context statement approved in 2022, staff are continuing efforts to expand the historic preservation program to increase recognition and preservation of community histories that are currently under-represented in the historic preservation program in Long Beach. The historic context statement update effort is anticipated to be completed later this year. At that time, staff will be re-evaluating the design of the Mills Act program to identify ways of more equitably awarding Mills Act contracts in future years including with a focus on properties recognized through the context statement updates. 2023 Mills Act Program Recommendations
A total of 43 Mills Act applications were filed this year. Based upon review of each application against the criteria described in the application guide in consideration of both the historic value of the property and the strength of the workplan, staff is recommending 26 contracts be awarded. Applications in this year’s application cycle reflect a broad range of proposed improvements that would support the preservation of the subject properties, ranging from foundation repairs, re-roofs, exterior siding repairs, plumbing and electrical upgrades, window restoration/rehabilitation and/or replacements.
Staff is recommending Mills Act contract approval as noted for each of the following properties (Attachment C1 –C26 – Workplans):
1. 2621 E. 1st Street – A two-story single-family residence that features a steep cross gable roof system, clad in two different styles of wall cladding (wood shingle and horizontal wood siding) symmetrical façade and off centered covered porch with a gable roof. The building is intact and the workplan includes foundation replacement, restoration of the exterior wood shingle siding and windows, reroof and eave and fascia repairs, upgrade electrical and plumbing.
2. 3305 E. 1st Street – A two-story Foursquare with Craftsman details that feature scalloped wood shingle siding on the upper walls and horizontal wood planks on the lower walls, a hip roof system with a side facing gable roof system and original wood windows. The building is intact with minimal exterior changes and the workplan includes exterior wood restoration, window restoration, restoration of the pedestals/columns and balustrades, replace the Knob and Tube electrical wiring, remove and replace galvanized plumbing, upgrade heating system, repainting the exterior using appropriate color pallet for the architecture style. The property exceeds the property valuation limit, so the property can only be considered in the exceptional architectural category. It must also be designated as a landmark.
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3. 3333 E. 2nd Street – A one-story Craftsman style that features a front facing gable roof system with exposed roof rafters and beams, horizontal wood siding, a wide covered porch with square columns and wood windows. The building is intact and the workplan includes foundation seismic retrofit and foundation repairs due to water damage, restore/repair porch columns, reroof, restore/repair exterior siding, repaint using appropriate Craftsmen colors, replace non-period windows with wood windows, repair 17 double hung wood windows, and improve onsite drainage to address water intrusion into the building.
4. 2553 E. 3rd Street – A two-story airplane Craftsman that features front facing gable roof systems with wide overhanding eaves and exposed rafter tails and beams, horizontal exterior wood siding and wood windows. The building is intact, and the work plan includes foundation repairs, reroof of house and garage, restoration of the porch and brick columns, restoration/repair of 23 wood windows on house, restoration/repair of four doors, remove the artificial turf and concrete floor repair, restoration of exterior siding and repaint with Craftsman colors, repair/restore garage, install new concrete driveway and remove chain link fencing.
5. 347 W. 7th Street – A two-story Queen Anne that features various roof lines and wide overhanging roof eaves, horizontal exterior wood siding and decorative scalloped shingles, decorative wood windows and covered porch with decorative support columns.
The building is intact, and the work plan includes installation of a new foundation, removal of the non-original red bricks installed in front of the existing cinder block foundation, around the porch columns and along the walkways and porch floor, window restoration/repair, exterior siding restoration and repainting, plumbing system upgrades, removal of all chain link fencing and landscape improvements. The improvements will protect the building’s important features as well as allow the building to be visible from the right of way.
6. 2740 E. Broadway – A three-story mixed-use building designed in Italian Renaissance style with Spanish Baroque decorative accents. The building is intact, and the work plan includes front facade improvements which include Terracotta cleaning/restoration, brick façade restoration/cleaning, decorative wrought iron restoration (cleaning and painting), restoration/repair of the red clay tile roof on the tower, upgrade plumbing and electrical systems. Paint and resurface all metal on roof, flashings, spouts, remove non-original windows and install period windows and restore all original wood windows. The improvements will protect the buildings important features.
7. 324-328 Carroll Park West – A two-story Spanish Colonial duplex and a detached Craftsman Bungalow. The Spanish Colonial work plan includes foundation replacement and stucco wall restoration, restoration of the wood beams and roof eaves, restoration
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of 17 wood windows, reroof, electrical and plumbing system upgrades and repainting.
The Bungalow’s 24 wood windows will be repaired/restored.
8. 2324 Carroll Park South – A two-story Queen Anne that features a cross gable roof system, horizontal wood planks on the lower lever and scalloped wood singles on the upper walls and wood windows. The building is intact and the workplan includes a foundation replacement and seismic retrofit, exterior siding restoration, repainting in appropriate Queen Anne exterior colors, restoration of the rear covered porch and deck above, garage reroof and installation of new period appropriate garage doors.
9. 3556 California Avenue – A one-story Spanish Colonial Revival that features two roof systems – a front facing gable roof with red clay tiles and a flat roof, wood windows, a small courtyard. The building is intact, and the work plan includes foundation seismic retrofit, reroof, window restoration, replace non-original windows and install wood windows, restoration of the exterior stucco and repainting of house and garage.
10. 1146 Cedar Avenue – A two-story Craftsman that features cross gable roof systems, exposed rafter tails and beams, exterior shingle siding and wood windows and a modest rear dwelling unit. The rear unit features a flat roof, horizontal wood siding and wood windows. Both buildings are intact and the workplan includes installation of a new foundation, restoration of the porch and pergola, restoration of the exterior wood shingles, rafter tails, and eaves on both dwellings, restore the original front door, upgrade electrical and plumbing systems.
11. 3628 Cerritos Avenue – A one-story Spanish Colonial Revival that features a front facing gable roof with red clay roof tiles, a large chimney flanked by wood windows. The building in intact and the workplan includes foundation repairs, restoration of exterior stucco, window restoration, restoration of the porch and chimney, repaint and restoration/repairs to garage.
12. 334 Colorado Place – A one-story Craftsman that features a low sloping front facing gable roof, large wood windows flanking the centered entry door and a wide covered porch supported by brick columns. The building is intact, and the workplan includes foundation retrofit, reroof, window restoration, overall repair and restoration –of the exposed wood eaves, rafter tails and beams, porch walls and columns, upgrades to the plumbing system and garage repairs.
13. 4004 Country Club Drive – A two-story International architectural style building which features a post and beam with a flat roof system and stucco exterior. The workplan will restore the unique post and beam elements of the building such as the metal beams, wood posts and trims, windows and glass doors, repainting, and restoration to the front yard. The recommendation for Mills Act is subject to building obtaining landmark designation.
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14. 803 Daisy Avenue/615 W 9th Street – A corner lot with two buildings: a two-story Craftsman triplex and a two-story Folk Victorian duplex. The two-story Craftsman triplex features front facing low sloping gable roof, exposed eaves and beams, horizontal wood siding, and wood windows. The two-story Folk Victorian features a front facing steep gable roof, horizontal wood siding, wood windows, and a centered front porch. Both buildings are intact and the workplan includes reroof and upgrade electrical system for the Triplex and restoration of the exterior wood siding, repaint, upgrade the electrical and plumbing systems for the Folk Victorian.
15. 2100 Eucalyptus Avenue – A one-story Spanish Colonial Revival featuring a gable roof system with red clay roof tiles, arched picture window, a turret entry, wood windows and a small dwelling unit located above the garage. Both buildings are intact, and the workplan includes foundation repairs and seismic retrofit, stucco wall repairs, repainting, electrical system upgrades, restoration of studio window trims and sills, remove eight non-original metal windows on the studio and install wood windows.
16. 2151 Eucalyptus Avenue – A two-story Spanish Colonial Revival featuring side gable roof systems, stucco walls, wood windows in arched openings, and a courtyard enclosure. The building is intact, and the workplan includes a reroof preserving the red clay tiles and installing underlayment, stucco wall restoration, chimney repair, window and door restoration, electrical and plumbing systems upgrade, repair/restoration to courtyard walls and iron gate, and landscape removal that is damaging the courtyard walls.
17. 784 Freeman Avenue – A one-story Craftsman featuring a side facing gable roof system, horizontal exterior wood siding, wood windows and a covered porch with a front facing gable roof. The building is intact, and the workplan includes major foundation repairs, roof replacement, electrical and heating systems upgrades, exterior siding restoration and repainting.
18. 774 Gladys Avenue – A two-story Craftsman featuring side facing gable roof system, two styles of exterior wood siding/shingles, wood windows and an off-centered porch with a front facing gable roof structure. The building is intact, and the workplan features reroof, restoration of the front porch and pergola, restoration of windows and doors, replace non-original windows, and upgrade the electrical system.
19. 32 Kennebec Avenue – A two-story Craftsman featuring front and side facing gable roof systems, overhanging exposed eaves and beam, exterior wood single siding, and wood windows. The building is intact, and the work plan includes restoration of the exterior siding, repair roof drainage and downspouts, restoration/replacement of 18 sets of casement windows, repaint, upgrade the plumbing system and replace garage door.
20. 3759 Myrtle Avenue – A one-story Spanish Colonial Revival featuring two roof systems:
a front facing gable roof with unique red clay roof tiles and a flat roof, stucco walls, wood windows and a small courtyard. The building is intact, and the workplan includes repair
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roof and chimney, repair foundation and seismic retrofit foundation, install a French drain to eliminate water intrusion damaging the foundation walls, repair/restoration of the stucco walls, restoration of 18 wood windows, and plumbing system upgrades.
21. 404 Newport Avenue – A one-story Craftsman featuring a side gable roof, horizontal wood siding and wood doors and windows. Constructed in 1919 as a single-family residence, it was converted to a commercial use and was recently converted back to a single-family residence. The building is intact and the workplan includes removal of the vinyl siding and repair of the original horizontal wood siding and trim, restoration of twelve casement windows and entry door and sidelights, construct a new front porch in effort to restore the front elevation to original, structural repairs to roof rafters and install new roof, remove metal perimeter fencing and install vertical wood fencing, remove all concrete in front yard, install new front yard landscaping and install new path leading to stoop.
22. 239-241 Orizaba Avenue – A two-story Tudor duplex featuring varying roof systems, a turret, stucco exterior walls and metal windows. The building is intact, and the workplan includes foundation repair and seismic retrofit, exterior stucco repair, exterior trim restoration, remove nine non-original windows and replace with new windows, window restoration on large picture window, remove and replace 22 non-period window screens, remove non-original concrete walkway and install new walkway and remove tree that is damaging foundation of building.
23. 735 Sunrise Boulevard – A two-story Craftsman featuring front and side facing gable roof systems, wide overhanging exposed eaves and beams, exterior wood shingle siding, wood windows, and a large porch beneath a front facing gable roof. The building is intact, and the workplan includes reroof, restoration of the exterior wood shingles, restoration of the wood windows, repaint, upgrade electrical and plumbing system, install a new concrete pathway and replace the ribbon driveway.
24. 636 Temple Avenue – A one-story Craftsman featuring a side gable roof system, horizontal wood exterior siding, wood windows, porch with arched wood trim beneath front facing gable roof. The building is intact, and the workplan includes exterior siding restoration, repainting appropriate Craftsman colors using at least three different paint colors, window restoration, electrical and plumbing system upgrades, reroof garage, and replace concrete of porch floor and walkway.
25. 781 Walnut Avenue – A one-story Craftsman featuring two front facing roof gable, wide porch with brick columns, horizontal wood siding and wood windows. The building is intact, and the workplan includes foundation repairs and seismic retrofit, reroofing and insulation installation, window restoration, restoration of the wood siding and trims and repainting appropriate Craftsman colors using at least three different paint colors, restoration of the front façade, porch and column bases, and termite mitigation and stump removal.
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26.822 W. Willow Street – A one-story Mid-Century Modern commercial office building was constructed featuring two vertical concrete panels, which extend from the building’s cantilevered roof to the ground and a centered single wood entry door. The building is intact, and the workplan includes stucco repairs to the exterior of the building, repaint, restoration of the landscaping on the front and rear of the building, replace the reed screens on the rear of the building. The property is not designated as a local landmark currently but was recommended by the CHC in April. It is anticipated to be presented to City Council along with other properties as recommended for landmark designation through this action.
Landmark Designation
Planning Bureau staff received four applications for landmark designation along with the Mills Act Program applications. Long Beach Municipal Code (LBMC) Chapter 2.63 provides the criteria for historic designation. To be eligible for Landmark designation, a cultural resource must retain integrity and meet one of the following criteria:
A. It is associated with events that have made a significant contribution to the broad patterns of the City’s history; or
B. It is associated with the lives of persons significant in the City’s past; or C. It embodies the distinctive characteristics of a type, period, or method of construction, or it represents the work of a master, or it possesses high artistic values; or
D. It has yielded, or may be likely to yield, information important in pre-history or history.
A combined analysis of each property’s eligibility for both Landmark designation and Mills Act is provided below; the discussion is organized by address. 3305 E. 1st Street
The single-family residential building was constructed by Miner Smith in 1924. Situated on a prominent corner lot, the unique building was constructed in the Craftsman architecture style but has American Foursquare features. The two-story building features scalloped wood shingle siding on the upper walls and horizontal wood planks on the lower walls. A wide horizontal mounted wood trim wraps around the building and separates the two sidings. The front elevation features a smaller hip roof system with a larger side facing gable roof system directly behind. The house features a variety of wood windows with decorative sills and trims and the side elevation features a large bay window. The building originally featured a wraparound porch which featured three Miner Smith custom concrete column pedestals with ornate concrete column balustrades. Three sides of the pedestal columns feature a recessed shelf accented by scalloped leaf designs. The porch was enclosed at some point, but the ornate porch columns and railing remains visible. The ornate balustrades are repeated on the second-floor roof deck railing located directly above the enclosed porch. Miner Smith’s custom molding remains on the inside of the main story of the house in addition to the original brass accent switch plates
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and toggle “dolly” switches. The distinct features characterized by Miner Smith’s designs are evident on the building.
Original homeowners, Fredrick William (1875-1956) and Clara Rehbock (nee Schwarting) (1878-1954) were prominent and active members of the Long Beach community and were Long Beach business owners. Fred was a German immigrant to the United States in the late 1800s and Clara was born in Fayette, Texas. Clara was from a locally prominent pioneering family in Long Beach, the Schwartings. In 1907, Clara commissioned an apartment building to be built located on 1st Street and Lime Avenue in Long Beach. When newly arriving to Long Beach, Fred lived in one of the units after construction in 1908. Fred and Clara married shortly thereafter in 1911. They commissioned the residence on 1st Street to be constructed and when construction was completed in 1924, they moved out of the apartment and into the new twostory home. They lived in the home for 29 years until it sold in 1953.
Both Fred and Clara were active advocates for protecting Long Beach by eliminating railway switching along Broadway and freight yard operations. Fred’s father was world-known for his work in fluid dynamics and he was the President of the University of Karlsruehe three times during his life. As a result, Fred was an avid early aviator, and he owned a large hangar at the Long Beach Airport, the F.W. Rehbock Hangar, later renamed the “Lewis Aviation ServiceF.W. Rehbock.” Fred frequently held and hosted events such as the Air Circus that showcased state-of-the-art planes like the Fokker F-32 and flying stunt shows with notable figures like “Honeymoon Joe” Lewis. When the Shell Oil Company flying club moved their headquarters from Compton to the Long Beach Municipal airport, they used Fred’s hangar to house their Waco biplane. In addition to commercial and community airport events, Fred participated in flight testing. He spent time with Alfred Knutson, a licensed marine navigator. Together they flew a Scarab engine biplane across the country to experiment with a new air navigation system. In 1932, the Rehbocks sold the hangar to P.T. Adams of the US Naval reserve to form a charter service to the entirety of United States, Mexico, and Canada under the name International Fly Service sparking a new generation of aviation related events. This property is eligible for Criteria B representing F. W. Rehbock’s contribution to aviation in Long Beach (Period of Significance 1924 - when they lived in the house). (Criteria B - Associated with the lives of persons significant in the City’s past).
Miner Smith (1877-1965) was an artisan builder of bungalows in the 1920’s. Miner formed the M.R. Smith Stone and Mantel Company based in Los Angeles and he advertised his business as “Designer and Builder of Artistic Natural Stone Mantels.” He specialized in custom, highquality bungalows and called them bungalow mansions and built over 23 houses in in Long Beach. Advertised as “Bungalow Mansions”, Miner Smith was known for constructing his bungalows with elaborate architectural detail such as ornamental concrete porches and fireplaces that looked like logs or trees, and porte-cocheres over the driveway. This property is eligible for Criteria C representing the work of master builder, Miner Smith (Period of Significance 1924). (Criteria C - Embodies the distinctive characteristics of a type, period, or method of construction, or it represents the work of a master, or it possesses high artistic values).
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Conclusion – The subject single-family residence at 3305 East 1st Street retains sufficient integrity to convey its significance under City of Long Beach Landmark Criterion B with a period of significance from the time of construction in 1924 through the occupation of Frederick and Clara Rehbock circa 1956 and Criterion C with a period of significance of 1924, the date of construction. The subject property is recommended eligible for listing as a City of Long Beach Landmark (Attachment D –DPR Form - 3305 E 1st Street). If approved for landmark designation as recommended, the building will be known as the F.W. Rehbock House after the original owners.
Based on staff evaluation, this property has been found to be eligible for both Landmark designation under Criteria B and C and staff recommends the property for the Mills Act Program. The property exceeds the valuation limit for the single-family house category; however it meets the requirements for classification under the “exceptional architecture category” under the Mills Act Program.
4004 County Club Drive
Landmark Designation – The home was built in 1959 in the International Architectural style designed by architects Edward A. Killingsworth, Jules Brady and Waugh Smith. The singlestory home is L-shaped and features a flat roof. The front elevation features two breezeblock panel screens that provide shade for the large floor-to-ceiling glass windows. The entry door is centered between the two glass window systems. Large beams extend from the structure emphasizing the flat roof horizontality. The other elevations feature floor-to-ceiling glass windows which provide views of the private outdoor space and connecting the inside to the outside.
The house was commissioned by Maurice (1908-1960) and Mary (1906-1977) Frank. Maurice and his brother Edward Frank were business owners of Frank Brothers Furniture, a retail store for midcentury modern furniture. Frank Brothers Furniture was based in Long Beach and was originally located at 2400 Long Beach Blvd. The Frank brothers were pioneers in the field of modern furniture in Long Beach and they closely collaborated with architects and designers and were closely associated with the midcentury modern movement in Long Beach. The Frank Brothers Furniture was at the forefront of modern furniture sales in the United States during the middle of the twentieth century, serving as the primary retailer for some of the most recognizable names in mid-century design including Alvar Aalto, Charles and Ray Eames, Van Keppel Green and Bruno Matthsson, amongst many others. The Frank brothers were the interior designers for over half of the Case Study Houses and helped to define a branch of modernism unique to Southern California. Maurice lived in the house with Mary until his death in 1960. Mary resided in the house until 1973 when she moved into a condominium on Junipero and 1st Street. This property is eligible under Criteria B for Maurice Frank’s contribution to midcentury modern furniture retail efforts (Period of Significance 1959 – 1973). (Criteria B - Associated with the lives of persons significant in the City’s past).
Edward Killingsworth, FAIA (1917-2004) was a master architect and founding partner of the AIA award-winning firm of Killingsworth, Brady, and Smith (KBS). Based in Long Beach, the
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architecture firm was responsible for some of the greatest mid-twentieth century structures in Southern California. Spearheaded by Edward Killingsworth, the firm designed residences, office buildings and luxury hotels around the world. Long Beach holds claim to many of KBS renowned designs which include the Case Study House #25, the Richard Opdahl House located on Naples Island, the Cambridge Office Building, the KBS office building and California State University, Long Beach master plan.
This property is eligible for Criteria C representing the work of master architect, Edward Killingsworth (Period of Significance 1959). (Criteria C - Embodies the distinctive characteristics of a type, period, or method of construction, or it represents the work of a master, or it possesses high artistic values). (Attachment E –DPR Form - 4004 Country Club Drive).
Conclusion: The subject single-family residence at 4004 Country Club Drive retains sufficient integrity to convey its significance under City of Long Beach Landmark Criterion B with a period of significance from the time of construction in 1959 and Criterion C with a period of significance of 1959, the date of construction. Based on staff evaluation, this property has been found to be eligible for both Landmark designation under Criteria B and C and is recommended for a Mills Act contract. The Mills Act contract is subject to local designation approval by the City Council.
If approved for landmark designation as recommended, the building will be known as the Mr. and Mrs. Maurice Frank House.
82 Rivo Alto Canal
The two-story residence was constructed in 1961-1962 was designed in the International Architectural Style. The building was commissioned by Edward Frank for Arts and Architecture magazine’s Case Study House Program (CSH #25) and was designed by Edward Killingsworth of Killingsworth, Brady, and Smith (KBS).. The building features a post and beam construction with smooth stucco walls. The front façade features a pair of double height windows and reflecting pool with “floating” steps that lead to the 17-foot-tall entry door. The reflecting pool extends inside along the left side of an atrium. A large sliding glass door system provides access to inside the house courtyard.
Edward Frank and his brother, Maurice Frank, were the co-owners of Frank Brothers, a store that was a pioneer in the field of modern furniture retailing during the mid-20th century. The company closely collaborated with architects and designers to cross-promote modern designs and are recognized for their role in distribution of many of the iconic designs produced in the era. Frank Brothers were heavily involved in the Case Study House program, furnishing CSH #25 and six additional houses. (Criteria B - Associated with the lives of persons significant in the City’s past).
Edward Killingsworth, FAIA (1917-2004) was a master architect and founding partner of the AIA award-winning firm of Killingsworth, Brady, and Smith (KBS). Based in Long Beach, the architecture firm was responsible for some of the greatest mid-twentieth century structures in Southern California. Spearheaded by Edward Killingsworth, the firm designed residences,
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office buildings and luxury hotels around the world. Long Beach holds claim to many of KBS renowned designs which include the Case Study House #25, the Richard Opdahl House located on Naples Island, the Cambridge Office Building, the KBS office building and California State University, Long Beach master plan. Criteria C - Embodies the distinctive characteristics of a type, period, or method of construction, or it represents the work of a master, or it possesses high artistic values).
Conclusion: The building is a prominent example of International Style in Long Beach and within the context of California Modernism in the United States during the mid-20th century.
The building exhibits characteristics of International Style, including its rectangular form, lack of ornamentation, flat roof, large panes of glass, open interior plan, and inclusion of innovative building materials and techniques. The house retains a high level of integrity with intact character defining features. Based on staff evaluation, this property is likely to be eligible for Landmark designation under Criteria B and C. The workplan was not as comprehensive as the other work plans submitted for consideration and therefore is not recommended for a Mills Act contract. As a result, the property owners do not wish to seek approval for landmark designation at this time.
2105 Bermuda Avenue
The building was constructed in 1906 in the Vernacular cottage architectural style as a singlefamily residence. Several alterations have occurred over time, a sunroom was enclosed to enlarge the dwelling and a rear addition created a new dwelling (2105 1//2 Bermuda Avenue) thus converting the building to a duplex. In 1947, two dwelling units were constructed over the four-car garage located at the rear of the lot.
The property was associated with several notable persons but does not rise to a level of significance to make the findings under Criteria B. Original owner and builder, Stephen Butler (born in 1832) came to Long Beach in 1905 where he opened his Colorado Real Estate Company business and he sold gas through another business, the United Improvement Company. Stephen, wife Rosalie and stepdaughter Lucinda Walker were active in Long Beach social organizations. The building was the scene of many social gatherings. Subsequent owners included Sam Spickard (1910-1912), Daniel Farrand and Ruth Dodd Rogers, educator, lecturer and writer Julia Ellen Rogers (1912-1913), Crosby’s Service Station owners George H. (1882-1971) and Grace V. Crosby (1881-1955).
Conclusion: The building is over 100 years old, however it was not found to be distinctive or built by a master craftsman nor was it found to be associated with persons important or significant to Long Beach. Based on staff evaluation, this property has not been found to be eligible for Landmark designation under Criteria B - Associated with the lives of persons significant in the City’s past; or Criteria C - Embodies the distinctive characteristics of a type, period, or method of construction, or it represents the work of a master, or it possesses high artistic values. Thus, is not eligible for a Mills Act contract.
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Applications Not Awarded This Year
A majority of the applications this year included important historic preservation workplan items, however due to the high volume of applications, the selection process was competitive.
Applications that included a comprehensive scope of work including “major” repair items, workplans which will reverse exterior modifications and/or restore original architectural features were given strong consideration. Repairs that improve the condition of the structure for the long term were also a focus of applications recommended by staff.
The following is a list of the 17 applications that were not selected for this year’s cycle.
Although many of the below-listed properties which were not selected have historic value, the proposed workplan was deemed not sufficient to meet the threshold for contract award, and/or the property could not be found to meet the criteria for landmark designation. Many of the properties not selected have already had more substantial repairs or the scope of the workplans were limited and did not address long-term needs of the subject properties. Awarding contracts with insufficient workplans is, in staff’s evaluation, inappropriate in comparison to the property owner benefit and city cost of the contract, even on noteworthy or architecturally significant properties.
x 2425 E. 2nd Street
x 2609 E. 2nd Street
x 725 E. 8th Street
x 3457 California Avenue
x 1051 Cedar Avenue
x 3753 Gundry Avenue
x 3650 Lemon Avenue
x 3765 Lemon Avenue
x 3559-3561 Lime Avenue
x 207 Loma Avenue
x 3636 Olive Avenue
x 3720 Olive Avenue
x 82 Rivo Alto Canal – Did merit landmark designation but not Mills Act contact x 3765 Rose Avenue
x 293 Temple Avenue
x 750 Temple Avenue
x 2105 Bermuda Avenue – Did not merit landmark designation
RECOMMENDATION
Out of the 30 applications received for the single-family category, staff has recommended 17 for Mills Act contracts. Out of the eight applications received for duplex/triplex category, staff has recommended five for contracts. Out of the four applications received for multifamily/mixed-use category, staff is recommending two for contracts. One application for the non-residential category (commercial) was accepted, and staff is recommending approval.
CHAIR AND CULTURAL HERITAGE COMMISSION
May 30, 2023
Staff has recommended one single-family property for a contract in the exceptional category.
In total, 26 applications are being recommended for contracts with 17 applications not recommended for contracts this year.
Staff has analyzed the landmark nominations, 3305 E. 1st Street (Attachment F – Findings 3305 E 1St Street) and 4004 Country Club Drive (Attachment G – Findings 4004 Country Club Drive) and has determined that the two properties both meet the requirements set forth in Section
2.63.050 (Cultural Heritage Commission) of the Long Beach Municipal Code, which states that a cultural resource qualifies for designation as a Landmark if it retains integrity and meets one or more of the four required findings. As previously noted, 3305 E. 1st Street has been found to be eligible for Landmark designation under Criteria B and C and 4004 Country Club Drive has been found to be eligible for Landmark designation under Criteria B and C.
The nomination for Landmark status for 3305 E. 1st Street and 4004 Country Club Drive are consistent with. Policy 2.7 of the Historic Preservation Element which encourages preservation through the landmarking of private buildings. The proposed nominations for 3305 E. 1st Street and 4004 Country Club Drive are complementary to the surrounding neighborhoods they are located within. The designation of the subject building as a historic landmark raises awareness of Long Beach’s history and preserves significant historic resources.
Staff recommends that the Cultural Heritage Commission make a recommendation to the City Council to award 26 Mills Act contracts as outlined in this staff report, and staff recommends that the Cultural Heritage Commission make a recommendation to the City Council to approve the two landmark nominations for 3305 E. 1st Street and 4004 Country Club Drive.
PUBLIC HEARING NOTICE
Public notices for the two landmark designations were distributed on May 15, 2023. Public notices are not required for the recommendation to City Council to award Mills Act contracts.
ENVIRONMENTAL REVIEW
In accordance with the 15331 Guidelines for Implementation of the California Environmental Quality Act (CEQA), environmental review is not required for actions taken for the preservation or restoration of historic structures.
CHAIR AND CULTURAL HERITAGE COMMISSION
May 30, 2023
Respectfully submitted,
GINA CASILLAS ALEJANDRO PLASCENCIA
PROJECT PLANNER PRESERVATION PLANNER
ALISON SPINDLER- RUIZ, AICP
PLANNING BUREAU MANAGER
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Attachments: Attachment A – Location Map
Attachment B – Mills Act Guide
Attachment C1– C26 – Work Plans
Attachment D – DPR Form - 3305 E 1st Street
Attachment E – DPR Form - 4004 Country Club Drive
Attachment F – Landmark Findings – 3305 E 1st Street
Attachment G – Landmark Findings - 4004 Country Club Drive
GINA CASILLAS
PROJECT PLANNER
CULTURAL HERITAGE COMMISSION
PLANNING BUREAU
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Miles
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City of Long Beach
Location Map
Number Address
1 2621 E 1st St
2 3305 E 1st St
3 3333 E 2nd St
4 2553 E 3rd St
5 347 W 7th St
6 2740 Broadway
7 324-328 Carroll Park West
8 2324 Carroll Park South
9 3556 California Ave
10 1146 Cedar Ave
11 3628 Cerritos Ave
12 334 Colorado Pl
13 4004 Country Club Dr
14 803 Daisy Ave/615 W 9th St
15 2100 Eucalyptus Ave
16 2151 Eucalyptus Ave
17 784 Freeman Ave
18 774 Gladys Ave
19 32 Kennebec Ave
20 3759 Myrtle Ave
21 404 Newport Ave
22 239-241 Orizaba Ave
23 735 Sunrise Blvd
24 636 Temple Ave
25 781 Walnut Ave
26 822 W Willow St
Number Address
27 2425 E 2nd St
28 2609 E 2nd St
29 725 E 8th St
30 3457 California Ave
31 1051 Cedar Ave
32 3753 Gundry Ave
33 3650 Lemon Ave
34 3765 Lemon Ave
35 3559-3561 Lime Ave
36 207 Loma Ave
37 3636 Olive Ave
38 3720 Olive Ave
39 81 Rivo Alto Can
40 3765 Rose Ave
41 293 Temple Ave
42 750 Temple Ave
43 2105 Bermuda Ave
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City of Long Beach
MILLS ACT
Property Tax Incentive Program
2023 Application Guide
For property owners undertaking restoration, rehabilitation or maintenance of a designated historic property.
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City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Page | i
Table of Contents
Table of Contents ...................................................................................................................... i Introduction ..............................................................................................................................1 Background ...........................................................................................................................1 2023 Application Period Schedule ......................................................................................1 Program Requirements ............................................................................................................3 Overview ................................................................................................................................3 Eligibility Requirements ..........................................................................................................3 Historic Designation ............................................................................................................3 Property Valuation .............................................................................................................3 Rehabilitation Plan .............................................................................................................4 Selection Criteria ...................................................................................................................4 Maximum Number of Contracts Awarded per Year ......................................................4 Priority Consideration Criteria ............................................................................................5 Contract Terms ......................................................................................................................5 Duration of Contract ..........................................................................................................6 Termination of Contract ....................................................................................................6 Alterations or Additions ......................................................................................................6 Inspections and Monitoring ...............................................................................................6 Breach of Contract ............................................................................................................6 Potential Property Tax Savings .............................................................................................7 Application Process .................................................................................................................8 Application Guide and Form Availability ...........................................................................8 Pre-Application Workshop ....................................................................................................9 Workshop for Applicant Proceeding with Applications ……………………………………. 9 Application Preparation and Submittal .............................................................................9 Electronic Submittal ………………………………………………………………………………...9 Mills Act Application Package Check-Off List ……………………………………………...10 Mills Act Application Form ………………………………………………………………………10 City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Page | ii
Landmark Application Form …………………………………………………………………. 10 Priority Consideration Criteria Worksheet .......................................................................10 Rehabilitation/Restoration/Maintenance Plan .............................................................10 Photographs .....................................................................................................................11 Site Plan .............................................................................................................................11 Property Tax Bill .................................................................................................................11 Grant Deed .......................................................................................................................11 Fees ....................................................................................................................................11 Special Requirements for Condominiums .....................................................................12 Application Review and Pre-Contract Property Inspections ..........................................12 Cultural Heritage Commission Recommendation Hearing ............................................13 City Council Hearing ...........................................................................................................13 Notification of Final Selection ............................................................................................13 Contract Execution and Recordation ..............................................................................13 Appendices
California Government Code Section 50280-50290
California Revenue and Taxation Code, Article 1.9, Sections 439-439.4 Secretary of the Interior’s Standards for Rehabilitation Forms
Application Package Check-Off List
Mills Act Contract Application Form
Priority Consideration Criteria Worksheet
Rehabilitation/Restoration/Maintenance Plan
Matrix of Condominium Ownership Information (for HOA properties only) Landmark Nomination Form (for combination applications only) City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Page | 1
The City of Long Beach is pleased to announce that the Mills Act Program is now open for the first time since 2020.
Introduction
Thank you for your interest in the City of Long Beach Mills Act Property Tax Incentive Program (Mills Act Program). This Application Guide will assist you in determining your eligibility for the Program and completing the application. It is essential that you review this application guide before beginning your application.
Background
The City of Long Beach Mills Act Program was established in 1993, under the authority of State legislation, known as the “Mills Act,” which was enacted in 1972. The Program is a financial incentive for property owners undertaking restoration, rehabilitation or maintenance of a designated historic property.
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Applications to the City of Long Beach Mills Act Program are processed once per year, during the application period. This year, the deadline to submit an application is Friday, March 3, 2023. All potential applicants (or their representative) must attend the PreApplication Workshop on Saturday, January 28, 2023. The pages that follow will explain the Program requirements and application process in detail.
City of Long Beach Mills Act Program
2023 Application Period Schedule
Step Action Timeline
1 Application Guide and Form
Available to public
Friday, December 30, 2022
2 Pre-Application Workshop for all
potential applicants
Saturday, January 28, 2023
3 Workshop for Applicants Proceeding
with Applications
Saturday, February 18, 2023
4 Application Form and Pre-Application
Fee due to City
Friday, March 3, 2023
5 Pre-Contract Property Inspections
conducted by City Staff
March 17-31, 2023
6 Cultural Heritage Commission
recommendation hearing
On or before Tuesday, May 30 2023
7 City Council Hearing On or before Tuesday, June 20,
2023
8 City Notifies Applicants of Final
Selection
On or before Friday, June 23, 2023
City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Page | 2
9 City Issues Draft Contracts to Selected
Applicants
On or before Friday, July 28, 2023
10 Selected Applicants return Executed
Contract and Application Fee to City
Friday, August 25, 2023
11 City Executes and Records Contract
with County Recorder
On or before Friday, September 29,
2023
City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Page | 3
Program Requirements
Overview
The purpose of the Mills Act Program is to encourage the designation and protection of historic properties. Participating property owners enter into a formal agreement with the City for a minimum 10-year term. Contracts are automatically renewed each year for a new 10-year term and are transferred to new owners when the property is sold.
Property owners agree to restore, maintain, and protect the property in accordance with specific historic preservation standards and conditions identified in the contract.
Entering into a Mills Act contract results in a property tax reassessment by the County Assessor using the income-capitalization method, which may result in an approximately 30 to 50 percent reduction in property tax. The City conducts an inspection of the property’s interior and exterior prior to executing a new contract and every five years thereafter to ensure proper maintenance of the property. A breach of contract by the property owner can result in cancellation of the contract and a penalty equal to 12.5 percent of the property’s fair market value.
Eligibility Requirements
In order to be eligible to apply for a Mills Act contract, properties must meet all three criteria listed below. In addition, the property must have no outstanding code violations and/or Orders to Comply issued by Long Beach Development Services, and no delinquent property taxes. Properties owned by high-level City officials, as defined in California Government Code Section 1090, are ineligible for contracts.
Historic Designation
Properties must be designated as City of Long Beach historic landmarks or contributing structures within Historic Landmark Districts in order to be awarded a Mills Act Contract.
If your property is not located within a historic district and is not designated as a historic landmark, you may submit a Historic Landmark application concurrent with your Mills Act application.
Property Valuation
Properties must not be exempt from property taxation and must have an assessed value that does not exceed the limits indicated below.
Property Type Valuation Limit
Single Family Residential (1 dwelling unit) Valuation less than $1,558,465 Duplex or Triplex Residential (2 or 3
dwelling units)
Valuation less than $935,197 per
dwelling unit.
City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Page | 4
Multifamily Residential or Mixed
Residential/Commercial (4 or more
dwelling units)
No valuation limit.
Non-Residential (Commercial, Industrial, or
Institutional)
Valuation less than $4,032,538
(All Property Types – exceptional
properties, culturally significant, or
properties at risk of demolition
No valuation limit – 2 contracts may
be awarded.
The most recent property tax bill for the property must be submitted with the Mills Act application so that these valuation limits can be verified.
Rehabilitation Plan
The Mills Act contract application must include a detailed 10-year rehabilitation plan for the property. Properties which have already been rehabilitated, and do not need additional work, are not eligible. Instructions for preparing a rehabilitation plan are included in the forms section at the end of this guide.
Selection Criteria
City staff will review all submitted applications for eligibility and completeness. In further evaluating those applications that are eligible, staff will use the priority consideration criteria established by the City of Long Beach Cultural Heritage Committee in October 2014 and amendments in 2018 to recommend properties for receipt of a Mills Act contract. Due to the limitations described below, it is possible that not all applicants will receive a contract offer.
Maximum Number of Contracts Awarded per Year
The number of contracts awarded per year is limited by property type and may not exceed the numbers indicated below.
Property Type Mills Act Contracts per
Year
Single Family Residential (1 dwelling unit) Maximum 12
Duplex or Triplex Residential (2 or 3
dwelling units)
Maximum 3
Multifamily Residential or Mixed
Residential/Commercial (4 or more
dwelling units)
Maximum 4
Non-Residential (Commercial, Industrial,
or Institutional)
Maximum 1
City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Page | 5
(All Property Types – exceptional
properties, culturally significant or
properties at risk of demolition
Maximum 2
The City reserves the right to adjust the award of contracts by property type based upon the quantity and quality of applications submitted. An exceptional property can be a building that is designed and/or associated with a well-known architect, a property that represents a high level of cultural significance in underrepresented communities, or a building that is at high risk of demolition.
Priority Consideration Criteria
Eligible and complete applications with the following characteristics will be given priority consideration for receiving a Mills Act contract:
• Properties that submitted applications in 2006 when the Program was suspended. (If this criterion applies to you, please complete the new 2023 Mills Act Application form and attach a copy of your previous 2006 Mills Act Application). • Unique or important historic structures that are in particularly poor condition and in need of significant restoration regardless of location. (If this criterion applies to you, please describe the significant restoration needed on the Priority Consideration Criteria Worksheet).
• Potential new landmark properties not within designated historic districts will be given priority consideration.
• 2020 applications that were not awarded and remain eligible will automatically be considered in 2023 and given priority.
• Applications that include a local (Long Beach) labor or materials component in their work plan will be given priority.
Instructions for preparing the Priority Consideration Criteria Worksheet are included in the attached forms at back of this guide.
Contract Terms
The Mills Act Contract is a formal agreement between the property owner and the City.
The key elements of the agreement are described below. In addition, please review the following documents located in the Appendices: California Government Code Section 50280-50290, California Revenue and Taxation Code, Article 1.9, Sections 439-439.4, and the Secretary of the Interior’s Standards for Rehabilitation.
City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Page | 6
Duration of Contract
The Mills Act Contract is for a minimum term of 10 years. Unless a notice of non-renewal is given by the property owner or the City in the manner described below, the contract automatically renews each year on its anniversary date. The Contract runs (essentially in perpetuity) with the land and subsequent owners are bound by the terms and conditions of the contract. The seller of a Mills Act property must disclose this fact to potential buyers. While the contract does renew after 10 years, a new work plan demonstrating continued rehabilitation and preservation of the property is required prior to renewal of the contract.
Termination of Contract
The owner may terminate the contract by notifying the City in writing at least ninety days prior to the annual renewal date. The City may terminate the contract by notifying the owner in writing at least sixty days prior to the renewal date. Except in cases of default and special circumstances, the contract cannot be terminated during the initial 10-year term.
Alterations or Additions
All work on the property must conform to the Secretary of the Interior's Standards for Rehabilitation and the California Historical Building Code. As is required of any Historic Landmark or Historic District property in the City, work on the property will require a Certificate of Appropriateness from the Planning Bureau and any associated permits from the Building and Safety Division.
Inspections and Monitoring
The City is required to inspect the interior and exterior of the property prior to entering in the Contract, and every five years thereafter, to determine the owner’s compliance with the Contract. Conditions not conforming to the Secretary of the Interior's Standards for Rehabilitation may be required to be brought into compliance. In addition to the required periodic inspections, the City may also request property owners to self-inspect and provide an update regarding progress made on the Contract’s work plan.
Breach of Contract
If the property owner is found to be in breach of contract, the City may cancel the contract, or bring any action in court necessary to enforce the contract. If the contract is cancelled for breach of its conditions, the County Auditor will collect from the property owner a cancellation fee of 12.5 percent of the current Fair Market Value of the property as determined by the County Assessor.
City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Page | 7
Potential Property Tax Savings
The property owner has the potential to receive tax relief because their property taxes will be reassessed by the County Assessor using a prescribed income capitalization method instead of sales data. The capitalization method determines a fair rental base rate for the property by comparing it to three similar rental properties, when such data is available. Once a rental rate is established for the property, the total year’s potential rental income is determined and eligible expenses (e.g. maintenance costs) are deducted to establish the base assessment rate, which is often less than recent sales data for the property. All calculations are conducted by the County Assessor after the Contracts are signed. There is no guarantee of tax savings under the Mills Act contact and the amount of property taxes under the Program is unknown until after the Contracts are signed.
Note: Owners of properties with comparatively low property taxes, such as those benefiting from Proposition 13 limits on assessed value change over time, will not likely benefit from a Mills Act Contract because the assessed value under the Mills Act will likely be higher than the existing base-year value of the property. Generally, owners who have purchased their properties within the last 10 years are most likely to benefit from entering into a Mills Act Contract. Owners however are guaranteed that the Mills Act cannot trigger a tax increase and possession of a Mills Act contract may increase the resale value of the property.
New contracts are recorded with the County Registrar/Recorder on or before end of the calendar year of the year in which they are executed. Reassessments are typically conducted by the County Assessor by June 30 of the year following the contract recording. The new assessment will be reflected on the subsequent property tax bill issued in early October. For example, properties with contracts executed and recorded in December 2023 can expect their potential property tax savings to be reflected on their October 2024 property tax bill based on the County Assessor schedule. Property taxes are reassessed annually, and the tax bill that property owners receive may vary from year to year.
City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Page | 8
Application Process
Applications to the Mills Act Program are accepted each year during the application period only. The chart below and the discussion that follows describe the process for applying.
City of Long Beach Mills Act Program
2023 Application Period Schedule
Step Action Timeline
1 Application Guide and Form
Available to public
Friday, December 30, 2022
2 Pre-Application Workshop for all
potential applicants
Saturday, January 28, 2023
3 Workshop for Applicants Proceeding
with Applications
Saturday, February 18, 2023
4 Application Form and Application Fee
due to City
Friday, March 3, 2023
5 Pre-Contract Property Inspections
conducted by City Staff
March 17-31, 2023
6 Cultural Heritage Commission
recommendation hearing
On or before Tuesday, May 30,
2023
7 City Council Hearing On or before Tuesday, June 20,
2023
8 City Notifies Applicants of Final
Selection
On or before Friday, June 23, 2023
9 City Issues Draft Contracts to Selected
Applicants
On or before Friday, July 28, 2023
10 Selected Applicants return Executed
Contract and Application Fee to City
Friday, August 25, 2023
11 City Executes and Records Contract
with County Recorder
On or before Friday, September 29,
2023
Application Guide and Form Availability
The current year’s Application Guide and Form are prepared and made available via the City’s website. The Application Guide describes the Mills Act Program, who is eligible to apply, the application requirements, associated fees, and the application timeline.
The Application Form details the required information and attachments that must be submitted by the property owner to the City.
To download these documents, visit:
longbeach.gov/lbds/planning/preservation/mills-act
City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Page | 9
Pre-Application Workshop
Potential applicants (or their representative) and any consultant preparing Mills Act applications must attend the required Pre-Application Workshop hosted by the City on Saturday January 28, 2023, from 10:00 a.m. – 12:00 p.m. at the Jordan High School Auditorium, 6500 Atlantic Avenue, Long Beach. The consultation will allow property owners to become learn the details of the Mills Act Program and ask questions regarding the program and/or the application process. Applicants are encouraged to bring their draft application documents with them so that they can receive specific direction. The purpose of the Consultation is to help property owners fully understand the Program and its requirements, and help ensure only eligible, fully completed applications are submitted for review.
Workshop for Applicants Proceeding with Applications
Those individuals proceeding with application based on the information provided at the pre-application workshop are invited to a second workshop on Saturday February 18, 2023 from 10:00 a.m. – 12:00 p.m. at the City of Long Beach Energy Resources Auditorium, 2400 E. Spring Street, Long Beach, focusing on the application and approval process. This presentation will provide details regarding the prioritization process and ways in which applicants can provide the best possible application to improve their chance of selection by the City.
Application Preparation and Submittal
To be considered for a Mills Act Contract, the property owner (or their representative) must complete the Application Form and assemble the required additional documentation. The deadline to submit the completed application package is 4:00 p.m. on Friday, March 3, 2023, at the following address:
City Hall Permit Center
Planning Bureau Counter
Long Beach Development Services
411 W. Ocean Blvd., 2nd Floor
Long Beach, CA 90802
A completed application package consists of the following:
Electronic Submittal
Each application with supporting materials should be submitted on a USB Flash Drive or electronically to the Planning Bureau via email at
[email protected]. One paper copy of the application form with City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Page | 10
an original wet-signature of the property owner shall be filed at the public counter accompanied by the appropriate fee.
Mills Act Application Package Check-Off List
The Application Check-Off List is attached to this Application Guide (see Forms). Use the Check-Off List as a cover sheet for your Application Package help to ensure your submittal is complete.
Mills Act Application Form
The Application Form is attached to this Application Guide (see Forms). It must be signed by the current property owner(s). The name(s) must match the Grant Deed provided with the application (see below). A paper copy of this form with a wet signature is required.
Landmark Application Form
If the subject property is not already a City of Long Beach historic landmark then a Landmark Application Form is required. This form and any attachments should clearly demonstrate how the property is: associated with events that have made a significant contribution to the broad patters of the City’s history or cultural heritage; or associated with the lives of persons import to the City’s history; or embodies the distinctive characteristics of a type, period, region or method of construction or represents the work of a master or possesses high artistic values; or has yielded or has the potential to yield important information to the prehistory or history of the City.
Priority Consideration Criteria Worksheet
The Priority Consideration Criteria Worksheet is attached to this Application Guide (see Forms). In order to determine the property’s eligibility for priority consideration, please complete this worksheet. Be sure to clearly describe how property meets each of criteria, or mark as “Not Applicable.”
Rehabilitation/Restoration/Maintenance Plan
The Rehabilitation/Restoration/Maintenance Plan template is attached to this Application Guide (see Forms). A detailed work plan, consistent with the Secretary of the Interior’s Standards for Rehabilitation (see Appendices), is required for the property.
Properties which have already been rehabilitated, and do not need additional work, are not eligible. Use the template to create a list and detailed description of all work to be completed in the first ten years of the contract, noting the year in which each task will be completed.
City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Page | 11
Photographs
Photographs are used to evaluate the current condition of the property, the relevance of the proposed rehabilitation plan as well as for use in commission and other presentations for the Mills Act programs. Photographs should include:
x Building exteriors
o At least one overall view of the property as viewed from the street. o At least one overall view of the front, rear, and sides of all buildings. o A closer view of each exterior historic feature.
x Building interiors (for Multifamily, Mixed-Use, or Non-Residential Properties only) o At least one overall view of each common or publicly accessible interior area, if any.
o A closer view of each interior historic feature in any common or publicly accessible interior areas.
Label each printed photograph with the building address, subject of the photo, the direction of view, and the date the photo was taken.
Site Plan
Submit one 8 ½” x 11” site plan, drawn to scale, which indicates the locations of all buildings on the property, abutting street names, a north arrow, and building and site dimensions.
Property Tax Bill
Submit the most recent property tax bill for the property. In order to be eligible for consideration, the property must not be exempt from property taxation, must not be delinquent in paying property tax, and must meet the valuation limits described on page 3 of this guide.
Grant Deed
Submit the current Grant Deed for the property. The property owner name(s) listed on the deed must be the same as the individual(s) who signed the Application Form.
Fees
In order to apply for consideration under the Mills Act Program you must submit the Mills Act Pre-Application Fee with your Mills Act Application Form. This fee covers the processing of the Mills Act application, including the pre-contract inspection and hearings at the Cultural Heritage Commission and City Council. The current Mills Act PreApplication Fee as of January 2023 is $237.60. This fee must be submitted to the City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Page | 12
Development Services cashier at the time of application in the form of a credit card, or check made payable to “City of Long Beach.”
Note: If your property is selected to be awarded a Mills Act contract, you must submit the Mills Act Application Fee with your signed and notarized copy of the contract. This fee covers the cost of executing the contract and recording it with the Los Angeles County Recorder’s Office. The current Mills Act Application Fee as of January 2023 for existing historic landmarks is $2,700 plus $81.00 for each additional deed or APN. For properties filing the combination Mills Act and Landmark application the Combination Fee is $1660.74 plus $81.98 for each additional deed or APN. You do not need to submit this fee unless/until you are notified that your property has been awarded a contract.
In addition, if your property has an active Mills Act contract, you will be required to submit a Mills Act Annual Compliance Review Report and Fee on a form and date to be prescribed by the Department of Development Services. This fee covers the cost of managing the contract and conducting periodic inspections.
Special Requirements for Condominiums
Condominiums or Home Owners Association (HOA) controlled properties are eligible for consideration if ALL property owners consent to the application and contract (if awarded). Applications for such properties must also include the following additional documents:
x One Mills Act Contract Application form for the building’s exterior and common spaces, to be completed by the HOA’s authorized agent(s). x One Mills Act Contract Application form for EACH individual unit, to be completed by the respective property owner(s).
x Copy of the HOA Covenants, Conditions & Restrictions (CC&Rs). x Matrix of Condominium Ownership Information (see Forms).
Application Review and Pre-Contract Property Inspections The Planning Bureau staff will review all applications to ensure completeness and eligibility to the Program. Ineligible applications will not be considered. Staff may choose to request missing information from incomplete applications or ask that the application be completed and resubmitted next year.
Eligible and complete applications will be scheduled for a pre-contract inspection of the property to verify the condition based on the information provided in the application. The pre-contract inspections will take place between March 17 and March 31, 2023.
City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Page | 13
Cultural Heritage Commission Recommendation Hearing
After all applications have been reviewed and site inspections completed, the Planning Bureau Staff will prepare a recommendation report to the Cultural Heritage Commission regarding which applications should be offered a Mills Act contract. The staff recommendation report will be reviewed and discussed by the Cultural Heritage Commission at a regularly scheduled and noticed hearing on or before Tuesday, May 30, 2023 and the Commission will make its recommendation to the City Council.
City Council Hearing
The City Council will review and approve (or deny) the contracts based on the Cultural Heritage Commission recommendation at a regularly noticed hearing on or before Tuesday, June 20, 2023.
Notification of Final Selection
Applicants will be notified of the City Council’s decision on or before Friday, June 23, 2023. Planning Bureau Staff will then draft the contracts and provide them to the approved applicants on or before July 28, 2023. Applicants that were not selected for a Mills Act Contract may choose to re-apply in the future.
Contract Execution and Recordation
After approval by the City Council and receipt of the draft contract from Staff, the property owner must execute the contract and return it to the City with the Mills Act Application Fee by Friday, August 25, 2023. Staff will coordinate the execution of the contract by the City.
The contract is recorded by the City with the County Registrar/Recorder’s office on or before Friday, September 29, 2023. The County Registrar/Recorder will send the City a recorded contract and the City sends a copy of the property owner.
The Development Services Department, Planning Bureau will maintain a copy of all Mills Act contracts on file.
A copy of the recorded contract is delivered to the Los Angeles County Assessor’s office by the City staff. The Los Angeles County Assessor will re-assess the property tax. The new assessment will be reflected on the subsequent property tax bill issued.
City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Appendices
Appendices
The documents listed below are included in the pages that follow:
x California Government Code Section 50280-50290
x California Revenue and Taxation Code, Article 1.9, Sections 439-439.4 x Secretary of the Interior’s Standards for Rehabilitation City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Appendices
Forms
The forms listed below are included in the pages that follow:
x Application Package Check-Off List
x Mills Act Contract Application Form
x Priority Consideration Criteria Worksheet
x Rehabilitation/Restoration/Maintenance Plan
x Matrix of Condominium Ownership Information (for HOA properties only) x Landmark Nomination Form (for combination applications only) City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Appendices
Appendices
GOVERNMENT CODE
SECTION 50280-50290
50280. Upon the application of an owner or the agent of an owner of any qualified historical property, as defined in Section 50280.1, the legislative body of a city, county, or city and county may contract with the owner or agent to restrict the use of the property in a manner which the legislative body deems reasonable to carry out the purposes of this article and of Article 1.9 (commencing with Section 439) of Chapter 3 of Part 2 of Division 1 of the Revenue and Taxation Code. The contract shall meet the requirements of Sections 50281 and 50282.
50280.1. "Qualified historical property" for purposes of this article, means privately owned property which is not exempt from property taxation and which meets either of the following:
(a) Listed in the National Register of Historic Places or located in a registered historic district, as defined in Section 1.191-2(b) of Title 26 of the Code of Federal Regulations.
(b) Listed in any state, city, county, or city and county official register of historical or architecturally significant sites, places, or landmarks. 50281. Any contract entered into under this article shall contain the following provisions:
(a) The term of the contract shall be for a minimum period of 10 years. (b) Where applicable, the contract shall provide the following:
(1) For the preservation of the qualified historical property and, when necessary, to restore and rehabilitate the property to conform to the rules and regulations of the Office of Historic Preservation of the Department of Parks and Recreation, the United States Secretary of the Interior's Standards for Rehabilitation, and the State Historical Building Code.
(2) For an inspection of the interior and exterior of the premises by the city, county, or city and county, prior to a new agreement, and every five years thereafter, to determine the owner's compliance with the contract.
City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Appendices
(3) For it to be binding upon, and inure to the benefit of, all successors in interest of the owner. A successor in interest shall have the same rights and obligations under the contract as the original owner who entered into the contract. 50281.1. The legislative body entering into a contract described in this article may require that the property owner, as a condition to entering into the contract, pay a fee that shall not exceed the reasonable cost of providing the service pursuant to this article for which the fee is charged.
50282. (a) Each contract shall provide that on the anniversary date of the contract or such other annual date as is specified in the contract, a year shall be added automatically to the initial term of the contract unless notice of nonrenewal is given as provided in this section. Each contract shall also provide that after five years, and every five years thereafter, the city, county, or city and county shall inspect the interior and exterior of the premises to determine the owner's continued compliance with the contract. If the property owner or the legislative body desires in any year not to renew the contract, that party shall serve written notice of nonrenewal of the contract on the other party in advance of the annual renewal date of the contract. Unless the notice is served by the owner at least 90 days prior to the renewal date or by the legislative body at least 60 days prior to the renewal date, one year shall automatically be added to the term of the contract.
(b) Upon receipt by the owner of a notice from the legislative body of nonrenewal, the owner may make a written protest of the notice of nonrenewal. The legislative body may, at any time prior to the renewal date, withdraw the notice of nonrenewal.
(c) If the legislative body or the owner serves notice of intent in any year not to renew the contract, the existing contract shall remain in effect for the balance of the period remaining since the original execution or the last renewal of the contract, as the case may be.
City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Appendices
(d) The owner shall furnish the legislative body with any information the legislative body shall require in order to enable it to determine the eligibility of the property involved.
(e) No later than 20 days after a city or county enters into a contract with an owner pursuant to this article, the clerk of the legislative body shall record with the county recorder a copy of the contract, which shall describe the property subject thereto. From and after the time of the recordation, this contract shall impart a notice thereof to all persons as is afforded by the recording laws of this state. 50284. If the legislative body determines that the owner has breached any of the conditions of the contract provided for in this article or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified historical property, the legislative body shall do one of the following:
(a) Cancel the contract by following the procedures specified in Sections 50285 and 50286.
(b) Bring any action in court necessary to enforce a contract, including, but not limited to, an action to enforce the contract by specific performance or injunction.
50285. No contract shall be canceled under Section 50284 until after the legislative body has given notice of, and has held, a public hearing on the matter. Notice of the hearing shall be mailed to the last known address of each owner of property within the historic zone and shall be published pursuant to Section 6061.
50286. (a) If a contract is canceled under Section 50284, the owner shall pay a cancellation fee equal to 12 1/2 percent of the current fair market value of the property, as determined by the county assessor as though the property were free of the contractual restriction.
(b) The cancellation fee shall be paid to the county auditor, at the time and in the manner that the county auditor shall prescribe, and shall be allocated by the county auditor to each jurisdiction in the tax rate area in which the property is City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Appendices
located in the same manner as the auditor allocates the annual tax increment in that tax rate area in that fiscal year.
(c) Notwithstanding any other law, revenue received by a school district pursuant to this section shall be considered property tax revenue for the purposes of Section 42238.02 of the Education Code, as implemented pursuant to Section 42238.03 of the Education Code, and revenue received by a county superintendent of schools pursuant to this section shall be considered property tax revenue for purposes of Article 4 (commencing with Section 2570) of Chapter 12 of Part 2 of Division 1 of Title 1 of the Education Code. 50287. As an alternative to cancellation of the contract for breach of any condition, a landowner that is a party to the contract may bring any action in court necessary to enforce a contract, including, but not limited to, an action to enforce the contract by specific performance or injunction.
50288. In the event that property subject to contract under this article is acquired in whole or in part by eminent domain or other acquisition by any entity authorized to exercise the power of eminent domain, and the acquisition is determined by the legislative body to frustrate the purpose of the contract, such contract shall be canceled and no fee shall be imposed under Section 50286. Such contract shall be deemed null and void for all purposes of determining the value of the property so acquired.
50289. In the event that property restricted by a contract with a county under this article is annexed to a city, the city shall succeed to all rights, duties, and powers of the county under such contract.
50290. Local agencies and owners of qualified historical properties may consult with the State Historical Resources Commission for its advice and counsel on matters relevant to historical property contracts.
California Revenue and Taxation Code, Article 1.9, Sections 439 – 439.4 City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Appendices
439. Historical Property Restrictions; enforceably restricted property.
For the purposes of this article and within the meaning of Section 8 of Article XIII of the Constitution, property is "enforceably restricted" if it is subject to an historical property contract executed pursuant to Article 12 (commencing with Section 50280) of Chapter 1 of Part 1 of Division 1 of Title 5 of the Government Code. 439.1. Historical Property; definitions.
For purposes of this article "restricted historical property" means qualified historical property, as defined in Section 50280.1 of the Government Code, that is subject to a historical property contract executed pursuant to Article 12 (commencing with Section 50280) of Chapter 1 of Part 1 of Division 1 of Title 5 of the Government Code. For purposes of this section, "qualified historical property" includes qualified historical improvements and any land on which the qualified historical improvements are situated, as specified in the historical property contract. If the historical property contract does not specify the land that is to be included, "qualified historical property" includes only that area of reasonable size that is used as a site for the historical improvements. 439.2. Historical Property; valuation.
When valuing enforceably restricted historical property, the county assessor shall not consider sales data on similar property, whether or not enforceably restricted, and shall value that restricted historical property by the capitalization of income method in the following manner:
(a) The annual income to be capitalized shall be determined as follows:
(1) Where sufficient rental information is available, the income shall be the fair rent that can be imputed to the restricted historical property being valued based upon rent actually received for the property by the owner and upon typical rentals received in the area for similar property in similar use where the owner pays the property tax. When the restricted historical property being valued is actually encumbered by a lease, any cash rent or its equivalent considered in determining the fair rent of the property shall be the amount for which the property would be City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Appendices
expected to rent were the rental payment to be renegotiated in the light of current conditions, including applicable provisions under which the property is enforceably restricted.
(2) Where sufficient rental information is not available, the income shall be that which the restricted historical property being valued reasonably can be expected to yield under prudent management and subject to applicable provisions under which the property is enforceably restricted.
(3) If the parties to an instrument that enforceably restricts the property stipulate therein an amount that constitutes the minimum annual income to be capitalized, then the income to be capitalized shall not be less than the amount so stipulated.
For purposes of this section, income shall be determined in accordance with rules and regulations issued by the board and with this section and shall be the difference between revenue and expenditures. Revenue shall be the amount of money or money’s worth, including any cash rent or its equivalent, that the property can be expected to yield to an owner-operator annually on the average from any use of the property permitted under the terms by which the property is enforceably restricted. Expenditures shall be any outlay or average annual allocation of money or money's worth that can be fairly charged against the revenue expected to be received during the period used in computing the revenue.
Those expenditures to be charged against revenue shall be only those which are ordinary and necessary in the production and maintenance of the revenue for that period. Expenditures shall not include depletion charges, debt retirement, interest on funds invested in the property, property taxes, corporation income taxes, or corporation franchise taxes based on income.
(b) The capitalization rate to be used in valuing owner-occupied single family dwellings pursuant to this article shall not be derived from sales data and shall be the sum of the following components:
(1) An interest component to be determined by the board and announced no later than September 1 of the year preceding the assessment year and that was City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Appendices
the yield rate equal to the effective rate on conventional mortgages as determined by the Federal Housing Finance Board, rounded to the nearest 1/4 percent.
(2) A historical property risk component of 4 percent.
(3) A component for property taxes that shall be a percentage equal to the estimated total tax rate applicable to the property for the assessment year times the assessment ratio.
(4) A component for amortization of the improvements that shall be a percentage equivalent to the reciprocal of the remaining life.
(c) The capitalization rate to be used in valuing all other restricted historical property pursuant to this article shall not be derived from sales data and shall be the sum of the following components:
(1) An interest component to be determined by the board and announced no later than September 1 of the year preceding the assessment year and that was the yield rate equal to the effective rate on conventional mortgages as determined by the Federal Housing Finance Board, rounded to the nearest 1/4 percent.
(2) A historical property risk component of 2 percent.
(3) A component for property taxes that shall be a percentage equal to the estimated total tax rate applicable to the property for the assessment year times the assessment ratio.
(4) A component for amortization of the improvements that shall be a percentage equivalent to the reciprocal of the remaining life.
(d) Unless a party to an instrument that creates an enforceable restriction expressly prohibits the valuation, the valuation resulting from the capitalization of income method described in this section shall not exceed the lesser of either the valuation that would have resulted by calculation under Section 110, or the valuation that would have resulted by calculation under Section 110.1, as though the property was not subject to an enforceable restriction in the base year.
City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Appendices
(e) The value of the restricted historical property shall be the quotient of the income determined as provided in subdivision (a) divided by the capitalization rate determined as provided in subdivision (b) or (c).
(f) The ratio prescribed in Section 401 shall be applied to the value of the property determined in subdivision (d) to obtain its assessed value. 439.3. Historical Property; notice of nonrenewal.
Notwithstanding any provision of Section 439.2 to the contrary, if either the county or city or the owner of restricted historical property subject to contract has served notice of nonrenewal as provided in Section 50282 of the Government Code, the county assessor shall value that restricted historical property as provided in this section. (a) Following the hearing conducted pursuant to Section 50285 of the Government Code, subdivision (b) shall apply until the termination of the period for which the restricted historical property is enforceably restricted. (b) The board or assessor in each year until the termination of the period for which the property is enforceably restricted shall do all of the following:
(1) Determine the full cash value of the property pursuant to Section 110.1. If the property is not subject to Section 110.1 when the restriction expires, the value shall be determined pursuant to Section 110 as if the property were free of contractual restriction. If the property will be subject to a use for which this chapter provides a special restricted assessment, the value of the property shall be determined as if it were subject to the new restriction.
(2) Determine the value of the property by the capitalization of income method as provided in Section 439.2 and without regard to the fact that a notice of nonrenewal or cancellation has occurred.
(3) Subtract the value determined in paragraph (2) of this subdivision by capitalization of income from the full cash value determined in paragraph (1). (4) Using the rate announced by the board pursuant to paragraph (1) of subdivision
City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Appendices
(b) Of Section 439.2, discount the amount obtained in paragraph (3) for the number of years remaining until the termination of the period for which the property is enforceably restricted.
(5) Determine the value of the property by adding the value determined by the capitalization of income method as provided in paragraph (2) and the value obtained in paragraph (4).
(6) Apply the ratios prescribed in Section 401 to the value of the property determined in paragraph (5) to obtain its assessed value. 439.4. Historical Property; recordation.
No property shall be valued pursuant to this article unless an enforceable restriction meeting the requirements of Section 439 is signed, accepted and recorded on or before the lien date for the fiscal year in which the valuation would apply.
City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Forms
SECRETARY OF THE INTERIOR’S STANDARDS FOR 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 will 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 will 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.
City of Long Beach Mills Act Property Tax Incentive Program 2023 Application Guide Forms
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 shall 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.
For a full version of the standards and the accompanying illustrated guidelines, visit:
nps.gov/tps/standards/rehabilitation/rehab/index.htm.
Development Services)ITEVXQIRX Planning Bureau
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