Agenda Item
City Council
Item #: 3.5. 12/13/2022 File #: 22-0706
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, Interim City Manager
FROM: Jeffrey S. Adams, Interim Community Development Director
1. SUBJECT
Historic Property Preservation Agreements (Mills Act Contracts) for nine qualified historic properties.
2. SUMMARY
The Community Development Department’s Historic Preservation Program received nine applications for new Mills Act Contracts in the Old Towne and Eichler Historic Districts for the Fall 2022 application period. Staff recommends approval and execution of the contracts.
3. RECOMMENDED ACTION
Approve nine Mills Act Contracts between the City of Orange and the identified property owners for the preservation and rehabilitation of qualified historic properties; and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The purpose of the Mills Act Program is to leverage property tax savings to support private investment in the preservation of historic properties.
For the nine Mills Act applications received in Fall 2022, the City may incur a total reduction of property tax of approximately $6,079 per year. The actual amount of the property tax reduction under the Mills Act Contract will be determined by the Orange County Office of the Assessor, using a predetermined income-based approach to assessment, considering area rental rates and maintenance costs.
The Mills Act Program requires reinvestment of this property tax reduction in preservation of the historic property through the Rehabilitation Plan (Exhibit D) attached to each contract. The Rehabilitation Plan will generate additional revenues from building permit fees, and the local economy will benefit from specialized work in historic preservation by local building contractors and material suppliers. The investment by property owners in these six historic properties totals $772,491 over ten years.
The $1,000 application fee for each contract offsets the cost of staff review, property inspection, and this public meeting. The $35 annual fee offsets ongoing costs of administration of the contracts.
5. STRATEGIC PLAN GOALS
Goal 5: Recognize, promote and preserve Orange’s rich heritage City of Orange Printed on 12/8/2022Page 1 of 2
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Item #: 3.5. 12/13/2022 File #: 22-0706
b. Expand and strengthen processes and practices related to the protection of cultural resources.
6. DISCUSSION AND BACKGROUND
Mills Act applications for nine qualified historic properties were received prior to the August 4, 2022 application deadline. Five properties are within the Old Towne Historic District and four properties are in the Eichler Historic Districts.
Staff reviewed the applications and met with each property owner at the historic property to review the proposed Rehabilitation Plan (Exhibit D) attached to the Mills Act Contract. Each Rehabilitation Plan has been tailored to the preservation needs of the specific historic property and has been determined to meet the Mills Act Program requirements and to be in conformance with the relevant design standards for the historic districts.
Each Mills Act property owner agrees to complete the work described in the Rehabilitation Plan.
Additional contract conditions include:
1 Preserve and rehabilitate the historic property and its character-defining features in conformance with adopted rules and regulations.
2 Meet City of Orange Historic Property Maintenance Standards for all buildings, structures, yards, and other improvements on the property.
3 Agree to property inspections once every five years of the contract term and/or when work is completed to determine compliance with terms of the contract. 4 File annual status reports on progress of improvements and repairs and/or any changed conditions of the property.
5 Provide a ten-year update of proposed rehabilitation and repair items, 90 days prior to the tenth contract anniversary.
6 Meet all other contract terms and conditions as specified in the Historic Property Preservation Agreement.
A summary of each application is provided in Attachment 1 to the Staff Report.
7. ATTACHMENTS
· Table Summary of Nine Mills Act Applications
· Mills Act Contract MAC 412.0-22 with Photograph
· Mills Act Contract MAC 419.0-22 with Photograph
· Mills Act Contract MAC 420.0-22 with Photograph
· Mills Act Contract MAC 422.0-22 with Photograph
· Mills Act Contract MAC 423.0-22 with Photograph
· Mills Act Contract MAC 424.0-22 with Photograph
· Mills Act Contract MAC 425.0-22 with Photograph
· Mills Act Contract MAC 426.0-22 with Photograph
· Mills Act Contract MAC 427.0-22 with Photograph
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