CITY OF MANHATTAN BEACH
MILLS ACT APPLICATION PACKET
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Mills Act Application
Property Information
Address of Property:
Legal Description:
Assessor Identification No.:
Date of Purchase by Current Owner:
Building size (sq. ft.):
Assessed Value:
Property Taxes Paid to Date? (Check One): ☐ Yes ☐ No
Use Category: ☐ Single Family House ☐ Multi Family/Commercial Property Owner Information (please use legal name/s, as appears on deed) Owner Name(s):
Address:
Phone Number: Email:
Has the building been seismically retrofitted (e.g. bolted to the foundation)? ☐ Yes ☐ No If so, provide written documentation such as a building permit or contractor/inspector certification.
Note: Seismic retrofitting is a standard condition for all historic landmarks with a Mills Act Contract. This requirement must be completed within 10 years of approval of the Contract.
Additional Information must be submitted with this application:
Copy of the current Grant Deed with the property’s legal description.
Copy of the most recent tax bill.
Rehabilitation, Restoration, and Maintenance Plan for proposed changes (window replacement, wood trim work, etc.). (Plan and timeline with itemized cost estimate of work)
Photographs of the Property
Estimated Property Tax Calculation
I hereby certify that I am the present owner of the subject property described above and that I have reviewed the subject application and apply for consideration for a Mills Act Contract. I further understand that a Mills Act Application does not result in an automatic entitlement and each application is evaluated on its own merits on its historical significance and inclusion in the City’s program.
Owner’s Signature: Date:
X
The East one-half of Lot 5, in Tract 2541, in the City of Manhattan Beach, County of Los Angeles, State of California, as per map recorded in Book 24, Page 86 of Maps, in the office of the County Recorder of said county 2451 Solar Drive, Los Angeles, CA 90046
[email protected]/ [email protected]
310-480-6767/ 310-877-8361
$1,804,500
1675
417 001 037 21
Julie Anderson Trust & Amy Dantzler Trust
X
X
November 4, 2020
1505 Crest Drive, Manhattan Beach, CA 90266
DocuSign Envelope ID: 44F82B42-ABB6-440D-A257-F881676789A1 1/30/2022
CITY OF MANHATTAN BEACH
MILLS ACT APPLICATION PACKET
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SAMPLE- Rehabilitation, Restoration, and Maintenance Plan Please use this form for your rehabilitation, restoration and maintenance plan and timeline. Copy this form as necessary to include all work items that apply to your property. After the initial ten (10) year period, a new “Rehabilitation, Restoration, and Maintenance Plan” must be submitted. Most applications will have more than four work items in their work plan. You may also prepare a separate list of rehabilitation work proposed, provided all of the information below is included. Include all proposed exterior and interior work (including electrical, plumbing, etc.) to be completed within the next ten years. Please complete all requested information on this form. Formal quotes are not required for all items but staff may request documentation of stated costs upon review.
Contract Year Building Feature Proposed Work/Task Est. Cost
1. 2019 Exterior walls and
trim
Scrape, surface preparation, repaint
entire exterior
$ 8,500
2. 2020 Windows Replace broken glass, scrape, surface
preparation, repaint, re-caulk, repair all
windows on front and south elevations.
Replace jalousie window at kitchen with
new double-hinge.
$ 7,300
3. 2022 Plumbing Replace water pipes to house, replace
kitchen plumbing and sink fixtures
$ 3,220
4. 2024 Re-roof Re-roof entire house with new
composition shingles.
$ 9,220
5. $
6. $
7. $
8. $
9. $
TOTAL COST: $ 28,220
DocuSign Envelope ID: 44F82B42-ABB6-440D-A257-F881676789A1
CITY OF MANHATTAN BEACH
MILLS ACT APPLICATION PACKET
6 of 26
Rehabilitation, Restoration, and Maintenance Plan
Please use this form for your rehabilitation, restoration and maintenance plan and timeline. Copy this form as necessary to include all work items that apply to your property. After the initial ten (10) year period, a new “Rehabilitation, Restoration, and Maintenance Plan” must be submitted. Most applications will have more than four work items in their work plan. You may also prepare a separate list of rehabilitation work proposed, provided all of the information below is included. Include all proposed exterior and interior work (including electrical, plumbing, etc.) to be completed within the next ten years. Please complete all requested information on this form. Formal quotes are not required for all items but staff may request documentation of stated costs upon review.
Contract Year Building Feature Proposed Work/Task Est. Cost
1. $
2. $
3. $
4. $
5. $
6. $
7. $
8. $
9. $
TOTAL COST: $
SEE ATTACHED SCHEDULE A
DocuSign Envelope ID: 44F82B42-ABB6-440D-A257-F881676789A1
CITY OF MANHATTAN BEACH
MILLS ACT APPLICATION PACKET
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Estimated Property Tax Calculation
Even if the property is owner-occupied, the
County Assessor’s Office uses a state-mandated
reassessment formula based on “capitalization
income” rather than simple “market value.”
Remember to include all potential sources of
income (i.e. filming, advertising, etc.).
Interest component is determined by the State
Board of Equalization by September of the year
preceding the assessment year and is based on
the effective rate on conventional mortgages
as determined by the Federal Home Loan Bank
Board. 2018’s assessment is 4.00 percent.
TAXES
Line 3 $
÷
Line 4 %
=
5 Mills Act Assessment $
x
Mills Act property tax: 1% 0.01
=
6 Tax under Mills Act $
Current Property Tax $
-
Line 6 $
=
Tax Savings to Owner $
NET OPERATING INCOME
Line 1 $
-
Line 2 $
=
3 Net Operating Income $
CAPITALIZATION RATE
Interest Component 4%
Historic Property Risk 4%
Amortization Component %
Property Tax Component + 1%
4 Capitalization Component %
INCOME OF PROPERTY
Potential Monthly Rental Income $
x 12 months
1 Potential Annual Rental Income = $
Approximately 20% of Line 1
Ex) Fire, liability, water, gas, electric, gardening,
cleaning, security
Mortgage payments and property taxes are not
operating expenses.
4% - single family
The land is a non-depreciating asset so the
amortization is adjusted. Estimate the
percentage of total property value attributable
to improvements, multiplied by the reciprocal
of the remaining life of improvements. Wood
frame is typically 20 years, masonry is typically
50 years.
If 70% of the property value is attributed to
improvements, and the life of the improvement
is 20 years, use 70% x 1/20 = 3.5%.
Pre Mills Act; Assessed value x .01
ANNUAL EXPENSES
Insurance
Utilities
Maintenance
Other
2 Total expenses $
The Property Tax Component (Post-Prop. 13) is
fixed component of 1%.
The following is an example showing the possible tax benefits to the historical property owner of an owner-occupied single-family dwelling. THIS IS ONLY A SAMPLE. Your reduced property tax under a Mills Act contract is not guaranteed to match this calculation because some figures are determined at the discretion of the assessor. The parties to a historical property agreement may stipulate a minimum annual income to be capitalized, in which case the income to be capitalized may not be less than the stipulated amount. 15,137
5,538
20,675
5,538
553,846
13 72,000
13 4
72,000
18,000
90,000
18,000
90,000
7,500
DocuSign Envelope ID: 44F82B42-ABB6-440D-A257-F881676789A1
ATTACHMENT A: Rehabilitation, Restoration and Maintenance Plan - 1505 Crest Drive, Manhattan Beach Contract Year Est. Cost Building Feature Proposed Work/Task 2021 $18,460.00 Architectural Plans and Engineering Calculations Architect/Structural Engineer for earthquake retrofitting, general building safety and plans to return structure to original single family home use, removing unpermitted interior walls and finishes 2021 $25,550.00 Framing/ Earthquake Retrofitting Framing to return to original single family residence, sheer lateral reinforcement walls. This included epoxying new brackets into the slab, plywood sheathing and deputy inspections 2022 $66,800.00 Plumbing Replace water and sewer pipes, replace all plumbing, replace all drainage, sinks, bath fixtures 2022 $9,950.00 Fire Sprinkler System Installation of sprinkler system and install new water meter for sprinkler system 2022 $17,850.00 HVAC Install new HVAC system
2022 $45,600.00 Windows/ Doors Replace all windows and doors to provide better weatherization and rehabilitate rotted openings. Add skylights along gable peak to provide additional light and access to new HVAC Unit 2022 $65,247.00 Electrical/ Lighting Upgrade electric panel to current code, rewire entire house for safety and add EV charging stations per CA green building code
2022 $17,600.00 Stucco/ Exterior Painting Repair stucco cracks/ holes, remove oxidation and deteration due to salt air, paint entire exterior of house
2022 $18,250.00 Exterior Siding/ Beam Repair Replace exterior termite damaged and rotted siding, beams and railings on exterior 2022 $31,000.00 Interior Painting and Staining Restore water/ termite dama ged T&G wood gable ceilings and beamed ceilings, repair drywall, repaint interior, refinish wood
2022 $9,800.00 Exterior Wood Decking and Walls Repair and replace as needed rotted exterior wood decking and garden walls 2022 $4,800.00 Garage Door Replace damaged garage door
2022 $8,800.00 Original Stained Glass Rehabilitate original stained glass front door and showcase feature stained glass front large window, reseal glass gaskets, and reconstruct rotted window frames
2023 $3,800.00 Termite Treatment Tent house for termite protection 2026 $28,000.00 Second Story Deck Beams Replace sagging, rotted, termite damaged wood decking 2030 $22,000.00 Exterior Paint Repaint entire exterior
2031 $20,000.00 Roof Replace Roof
2032 $36,000.00 Interior Painting and Staining Repaint entire interior Total $449,507.00
ATTACHMENT B: Photo Index
1505 Crest Drive, Manhattan Beach
Photo Number Description
1 Front of house, facing Crest Drive
2 Front of house, facing Crest Drive
3 South side of house; note unstable, deteriorating stair case 4 South side of house; note peeling paint, cracking stucco 5 North side of house
6 North side of house; note pre-exisiting door to unpermitted unit 7 Back side of house; note deteriorating wood deck, fencing 8 Back side of house; note deteriorating wood deck, fencing, leaking slider 9 Back side of house; note improper wiring, leaking windows, rotting gate 10 Electric panel; note that panel is antiquated, insufficient for today's appliances, unsafe, rusting 11 Front of house, facing Crest Drive; note sagging support beams 12 Close up of beams and deck on front of house; note termite damage, inadequate beam repairs 12A Close up of deck railing; note termite and dryrot damage 13 Close up of beams on front of house; note dryrot due to improper sliding door installation, termite damage 13A Close of of A Frame structure and stained glass; note termite and dryrot damage 13B Close of of A Frame structure and stained glass; note termite and dryrot damage 14 Front door, prominent feature
15 A Frame structure and loft, prominent feature; note water staining on wood, termite damage 16 A Frame structure and loft, prominent feature; note water staining on wood, termite damage 17 A Frame structure and stairs to loft, stained glass, prominent features 18 A Frame structure and stained glass, prominent feature; note water staining on wood, termite damage 19 A Frame structure, stained
glass, kitchen; note water staining on wood, termite damage, damaged window frame
20 A Frame structure, stained glass, kitchen; note water staining on wood, termite damage, damaged window frame
21 A Frame structure and stained glass, prominent feature; note water staining on wood, termite damage 22 Kitchen; note damaged cabinetry, termite damage and water staining in ceiling 23 Primary bathroom; note peeling vynal flooring, deteriorating bathtub, termite damage in ceiling 24 Primary bathroom; note deteriorating bathtub and sink 25 Primary bedroom; note water staining and termite damage in ceiling 26 Bedroom, guest; note water staining in ceiling
27 A Frame structure and loft, prominent feature; note water staining on wood, termite damage 28 Loft Landing, prominent feature; note water staining, termite damage on wood 29 Loft Landing; note water staining, termite damage on wood 30 Loft landing, third floor bedroom; note water staining, termite damaged wood 31 A frame structure from loft; note water staining, termite damaged wood 32 Loft bathroom, third floor
33 Loft bathroom, third floor
34 Bedroom, third floor
35 Stairs connecting first and second floors; note closed off from access by prior owner, dryrot and mold present 36 Stairs connecting first and second floors; note closed off from access by prior owner, dryrot and mold present 37 First floor; note sloping floor in previously unpermitted rental unit 38 First floor wet bar, bath, stairs; note water damaged wall 39 First floor bathroom; note mold/ mildew present
40 Laundry room, first floor