CITY OF POMONA
COUNCIL REPORT
November 20, 2023
To: Honorable Mayor and Members of the City Council
From: James W. Makshanoff, City Manager
Submitted By: Anita Gutierrez, AICP, Assistant City Manager/Development Services Director SUBJECT: APPROVAL OF NINE MILLS ACT CONTRACTS FOR HISTORIC PROPERTIES RECOMMENDATION:
It is recommended that the City Council adopt the following resolutions:
RESOLUTION NO. 2023-201 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA APPROVING A MILLS ACT CONTRACT FOR A PROPERTY LOCATED AT 196 EAST GARFIELD AVENUE RESOLUTION NO. 2023-202 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA APPROVING A MILLS ACT CONTRACT FOR A PROPERTY LOCATED AT 407 SAN FRANCISCO AVENUE RESOLUTION NO. 2023-203 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA APPROVING A MILLS ACT CONTRACT FOR A PROPERTY LOCATED AT 1546 GANESHA PLACE RESOLUTION NO. 2023-204 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA APPROVING A MILLS ACT CONTRACT FOR A PROPERTY LOCATED AT 960 NORTH ELEANOR STREET RESOLUTION NO. 2023-205 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA APPROVING A MILLS ACT CONTRACT FOR A PROPERTY LOCATED AT 454 RANDOLPH STREET RESOLUTION NO. 2023-206 -A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA APPROVING A MILLS ACT CONTRACT FOR A PROPERTY LOCATED AT 277 GARFIELD AVENUE RESOLUTION NO. 2023-207 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA APPROVING A MILLS ACT CONTRACT FOR A PROPERTY LOCATED AT 530 EAST ALVARADO STREET RESOLUTION NO. 2023-208 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA APPROVING A MILLS ACT CONTRACT FOR A PROPERTY LOCATED AT 504 EAST COLUMBIA AVENUE RESOLUTION NO. 2023-209 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA APPROVING A MILLS ACT CONTRACT FOR A PROPERTY LOCATED AT 207 LINCOLN AVENUE EXECUTIVE SUMMARY:
The matter before the Council is consideration of nine Mills Act contracts, which if approved would allow for a reduction in the property taxes of these historically designated properties in exchange for restoring and maintaining the building in accordance with a Restoration, Rehabilitation, and Preservation Plan reviewed and approved by the Historic Preservation Commission.
FISCAL IMPACT:
Approval of all nine Mills Act contracts will result in an estimated property tax savings to the property owners for Fiscal Year 2023-24 of approximately $37, 206.29. Based on this estimate, over the ten-year period of the contract, the estimated decrease in property tax collected by the County Assessor is estimated to be approximately $372,062.90. The cost to the City of Pomona through the decrease in taxes collected is expected to be approximately $8,682.25 for the first year (FY 2023-24) and $86,822.50 over the next 10 years. The actual amount of the decrease for future years will be directly related to the property's assessed value as determined by the Los Angeles County Office of the Assessor, which is affected by property values and interest rates.
PREVIOUS RELATED ACTION:
The nine (9) applications were recommended for approval by the Historic Preservation Commission on September 6, 2023.
DISCUSSION:
Enacted in 1972 by the State of California, the Mills Act legislation grants participating local governments the authority to enter into contracts (Mills Act contracts) with owners of qualified historic properties who actively restore and maintain their historic properties while receiving property tax relief. The minimum contract period is ten years, with an automatic annual one-year extension. Each local government establishes its own criteria for evaluating Mills Act program applications. The City’s current Mills Act program was initially adopted in 2002, with a revised and restated program adopted in 2008. Pomona approved its first Mills Act contracts in 2004. Since then, the City has approved forty-one (41) total contracts, including eleven (11) last year. The nine (9) contracts this year would bring our total to fifty (50) contracts.
The City’s Mills Act program requires that the estimated property tax saving realized during the first ten years following execution of a contract be spent on completing the schedule of projects included in the Restoration, Rehabilitation and Preservation Plan (RR&P Plan) approved by the HPC.
This year the city received nine applications. The nine applications were recommended for approval by the Historic Preservation Commission on September 6, 2023.
The estimated tax savings during the first ten years of the Mills Act contract for the subject properties are approximately $372,062.90 while the rehabilitation plans include projects with an estimated cost of $447,059.08.
Based on the estimated cost to the City, Pomona is receiving $5.15 in proposed improvements for every $1 it costs the City. A summary of each Mills Act Contract is below. 196 Garfield Avenue (MILLS-021845-2023)
Designated as part of the Lincoln Park Historic District, this property is an excellent example of the Tudor Revival style and has retained its character-defining features. These features include the Brick exterior with the half-timbering in the gable ends, twin chimney, cantilevered gable end with the exposed beam, and multi-pane windows. The estimated tax savings during the first ten years of the Mills Act contract for the subject property is approximately $46,598.00 while the approved Plan includes projects with an estimated cost of $46,922.00. These projects include a new HVAC, window repair, and replacement of the gutters. Staff has estimated that this Mills Act contract will cost the City of Pomona $10,880.80 over 10 years. 407 San Francisco Avenue (MILLS-021739-2023)
Designated as part of the Lincoln Park Historic District, this property is a prime example of the Craftsman Bungalow style and has retained many of its original character-defining features. These features include the home’s river rock foundation, triangle brackets, clapboard siding, and bay windows. The estimated tax savings during the first ten years of the Mills Act contract for the subject property is approximately $43,233.20 while the approved Plan includes projects with an estimated cost of $46,614.68. These projects include a seismic retrofit, mechanical upgrades, and exterior repainting consistent with the findings at the site visit. Staff has estimated that this Mills Act contract will cost the City of Pomona $10,094.90 over 10 years. 1546 Ganesha Place (MILLS-021629-2023)
Designated as part of the Hacienda Park Historic District, this property is a great example of the Spanish Eclectic style. The estimated tax savings during the first ten years of the Mills Act contract for the subject property is approximately $62,248.40 while the approved Plan includes projects with an estimated cost of $62,493.56. These projects include replacing the deteriorated trim on all existing windows, removing the galvanized and cast iron plumbing system and rebuilding a new plumbing system, and replacing two custom sets of non-repairable French doors. Staff has estimated that this Mills Act contract will cost the City of Pomona $14,503.80 over 10 years. 960 North Eleanor Street (MILLS-021589-2023)
The property located at 960 N. Eleanor Street was designated as a contributing resource to the Lincoln Park Historic District in 1998. The Craftsman Bungalow style home was constructed in 1910 and retains many of its character-defining features. The estimated tax savings over the first ten years under the Mills Act contract for the subject property is approximately $27,012.40. The approved Rehabilitation Work Plan includes approximately $51,392.88 worth of projects, including repairs to the foundation, windows, roof, and exterior paint. Staff estimates that this Mills Act contract for 960 E. Eleanor Street will cost the City of Pomona approximately $630.73 per year or $6,307.30 over ten years. 454 Randolph Street (MILLS-021836-2023)
The property located at 454 Randolph Street was designated as a contributing resource to the Wilton Heights Historic District in 1999. The Craftsman Bungalow style home was constructed in approximately 1924 and appears to be relatively unaltered and retains many of its character-defining features. The estimated tax savings over the first ten years under the Mills Act contract for the subject property is approximately $19,253.20. The approved Rehabilitation Work Plan costs approximately $22,417.74 and includes projects such as fumigation and repair of termite damage, repair of broken windows and window screens, installation of a whole house fan, upgrading the electrical panel, conducting a lead abatement of the windows, and repainting the exterior of the primary house. Staff estimates that this Mills Act contract for 454 Randolph Street will cost the City of Pomona approximately $448.60 per year, or $4,486.00 over ten years. 277 Garfield Avenue (MILLS-021789-2023)
The property located at 277 Garfield Avenue was designated as a contributing resource to the Lincoln Park Historic District in 1998. The French Normandy-style home was constructed in 1927 and retains many of its character-defining features. The estimated tax savings over the first ten years under the Mills Act contract for the subject property is approximately $53,139.70. The approved Rehabilitation Work Plan includes approximately $60,528.72 worth of projects including seismic retrofitting, electrical upgrades, insulation replacements, and HVAC upgrades. Staff estimates that this Mills Act contract for 277 Garfield Avenue will cost the City of Pomona approximately $1,240.81 per year or $12,408.10 over ten years. 530 East Alvarado Street (MILLS-021632-2023)
The property located at 530 E. Alvarado Street was designated as a contributing resource to the Lincoln Park Historic District in 1998. The Craftsman Bungalow-style home was constructed in 1914 and retains many of its character-defining features. The estimated tax savings over the first ten years under the Mills Act contract for the subject property is approximately $39,388.40. The approved Rehabilitation Work Plan includes approximately $49,879 worth of projects, including exterior painting, installing copper piping, restoring the exterior doors/screens, and installing a ducted HVAC system. Staff estimates that this Mills Act contract for 530 E. Alvarado Street will cost the City of Pomona approximately $919.71 per year, or $9,197.10 over ten years. 504 East Columbia Avenue (MILLS-021543-2023)
The property located at 504 E. Columbia Avenue was designated as a contributing resource to the Lincoln Park Historic District in 1998. The Craftsman Bungalow style home was constructed in 1919 and retains many of its character-defining features. The estimated tax savings over the first ten years under the Mills Act contract for the subject property is approximately $33,389.50. The approved Rehabilitation Work Plan includes approximately $43,870.20 worth of projects including reroofing the entire house and detached garage and painting the exterior of the house and detached garage. Staff estimates that this Mills Act contract for 370 E. Pearl Street will cost the City of Pomona approximately $777.98 per year, or $7,779.80 over ten years. 207 Lincoln Avenue (MILLS-021770-2023)
The property located at 207 Lincoln Avenue was designated as a contributing resource to the Lincoln Park Historic District in 1998. The Spanish Eclectic home was constructed in approximately 1934 and appears to be unaltered and retains many of its character-defining features. The estimated tax savings over the first ten years under the Mills Act contract for the subject property is approximately $47,818.10. The approved Rehabilitation Work Plan costs approximately $62,940 and includes projects such as retrofitting the home, treating for termites, updating some electrical outlets/switches, repair damaged stucco, new exterior painting, repair the second-story terrace roof, and replace the HVAC system. Staff estimates that this Mills Act contract for 207 Lincoln Avenue will cost the City of Pomona approximately $1,116.55 per year, or $11,165.5 over ten years.
COUNCIL PRIORITIES & GOALS:
Approval of the nine Mills Act contracts supports the 2020-2021 City Council Priorities and Goals; Goal J: Encourage the development and maintenance of quality housing opportunities for all.
Prepared by:
________________________
Geoffrey Starns, AICP, LEED AP BD+C
Historic Preservation Supervisor
ATTACHMENTS:
Attachment No. 1 – City Council Draft Resolution No. 2023-201 Attachment No. 2 – City Council Draft Resolution No. 2023-202 Attachment No. 3 – City Council Draft Resolution No. 2023-203 Attachment No. 4 – City Council Draft Resolution No. 2023-204 Attachment No. 5 – City Council Draft Resolution No. 2023-205 Attachment No. 6 – City Council Draft Resolution No. 2023-206 Attachment No. 7 – City Council Draft Resolution No. 2023-207 Attachment No. 8 – City Council Draft Resolution No. 2023-208 Attachment No. 9 – City Council Draft Resolution No. 2023-209 Approval of Nine Mills Act Contracts