CITY COUNCIL STAFF REPORT
DATE: SEPTEMBER 30, 2026 CONSENT CALENDAR
SUBJECT: A REQUEST BY THE OWNERS OF THREE HISTORIC PROPERTIES
FOR APPROVAL OF MILLS ACT HISTORIC PROPERTY
PRESERVATION AGREEMENTS, INCLUDING 457 NORTH PALM
CANYON DRIVE (HSPB #167), ONE UNIT WITHIN THE RACQUET CLUB COTTAGES WEST HISTORIC DISTRICT (HSPB # 88/HD-3) AT 360 CABRILLO ROAD, AND 765 VIA VADERA (HSPB #168)
FROM: Scott C. Stiles, City Manager
BY: Department of Planning Services
SUMMARY:
This is a request for the City of Palm Springs to enter into standard Mills Act Agreements with the current property owners of three separate historic sites. The intent of these contracts is to require maintenance and preservation of the designated sites in exchange for possible property tax relief as determined by the Riverside County tax assessor.
RECOMMENDATION:
1. Approve a Mills Act Historic Property Preservation Agreement between the City of Palm Springs and the owners of the following list of properties:
a. 457 N. Palm Canyon Drive APN: 513-082-007.
b. 360 Cabrillo Road, Unit 231, APN: 504-131-032.
c. 765 Via Vadera, APN: 505-093-005.
2. Authorize the City Manager to execute the Agreements.
3. Direct the City Clerk to record the Agreements with the County of Riverside.
BUSINESS PRINCIPAL DISCLOSURES:
The applicants for each Mills Act Agreement are as follows:
1. Rest Area LLC and Sun Circle LLC at 457 N. Palm Canyon Drive.
2. The Crandall Hankey Revocable Trust dated July 11, 2019 and The Lawrence D.
Patricia T. Crandall Trust dated July 6, 1990 at 360 Cabrillo Road, Unit 23.
3. Gary Gand and Joan Gand at 765 Via Vadera.
City Council Staff Report
September 30, 2026 -- Page 2
Mills Act Agreements
STAFF ANALYSIS:
The following chart lists the date and resolution number for each property designated by the City Council:
Address Historic Class Date of
Designation
City Council
Resolution
457 N. Palm Canyon Drive Class 1 11/12/2025 25360
360 Cabrillo Road, Unit 231 Contributor to Historic District 11/20/2013 23458 765 Via Vadera Class 1 01/28/2026 25376
Pursuant to California Government Code Sections 50280 – 50290, upon the application of an owner of any qualified historic property, the legislative body of a city may contract with the owner or agent to restrict the use of the property to carry out the purposes and goals of historic preservation of the property. Such a contract is commonly referred to as a “Mills Act Agreement” and it provides for possible alternative property tax rate calculations in exchange for the ongoing preservation and maintenance of the property, specifically its historically significant elements and characteristics.
California Government Code Section 50280.1 denotes that properties are eligible for a Mills Act contract if listed in a state, city, or county official register of historic sites. All properties were locally designated and listed on the local inventory of historic places and qualify to apply for a Mills Act Contract. Draft Historic Property Preservation Agreements for each property are included as Attachment D to this report and specify details regarding restoration and/or maintenance of the three historic properties.
AERIAL VIEW OF 457 NORTH PALM CANYON. FRONT ELEVATION OF 457 NORTH PALM CANYON.
City Council Staff Report
September 30, 2026 -- Page 3
Mills Act Agreements
AERIAL VIEW OF 360 CABRILLO ROAD, UNIT 231. NORTH ELEVATION OF 360 CABRILLO ROAD, UNIT 231.
AERIAL VIEW OF 765 VIA VADERA. FRONT ELEVATION OF 765 VIA VADERA.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Economic Development.
FISCAL IMPACT:
Based on estimated values provided by Riverside County Tax Assessor, the amount of property tax rebate applied to Mills Act properties can range from 40 to 70%. Currently, there are 183 Mills Act properties in the City. It should be noted that the Mills Act contract is one of few tools available to incentivize reinvestment into restoration and ongoing maintenance of historic resources, and that properly maintained Mills Act properties likely have a net positive effect on surrounding property values that may offset the loss in direct revenue over time.
City Council Staff Report
September 30, 2026 -- Page 4
Mills Act Agreements
REVIEWED BY:
Department Director: Christopher Hadwin
Assistant City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:
A. Vicinity Maps for Each Property
B. City Council Resolution Nos. 25360, 23458, 25376.
C. Owner Letters and Disclosures
D. DRAFT Historic Property Preservation Agreements