City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: OCTOBER 20, 2026 FROM: COMMUNITY & ECONOMIC DEVELOPMENT WARDS: 1, 3, & 4
DEPARTMENT
SUBJECT: APPROVAL OF FIFTEEN MILLS ACT HISTORIC PROPERTY PRESERVATION AGREEMENTS FOR PROPERTY TAX REDUCTION AND CORRESPONDING PROPERTY IMPROVEMENTS ISSUE:
Approval of fifteen Mills Act Historic Property Preservation Agreements with various property owners for a minimum term of ten years with annual automatic renewals.
RECOMMENDATIONS:
That the City Council:
Approve fifteen Mills Act Historic Property Preservation Agreements for property tax reduction and corresponding property improvements with the following applicants for a minimum term of ten years with annual automatic renewals:
Brian & Gina Walden (Attachment 1)
Malissa Mckeith (Attachment 2)
Mary Lugo (Attachment 3)
Jennifer Allen (Attachment 4)
Benjamin & Hilary Guizlo (Attachment 5)
Thomas Dover & Lorin Wolf (Attachment 6)
Crystal Coleman (Attachment 7)
Cory Timerman & Rebecca Reames (Attachment 8)
Austin Johnson (Attachment 9)
Nyle Kanda (Attachment 10)
Dominick Ricci & Anna Gaissert (Attachment 11)
Roger Tomihama (4562 Orange Street LLC) (Attachment 12) Rafael Garcia Negrete & Cristina Valadez (Attachment 13) Miguel Baeza (Cabrillo Landmark Management LLC) (Attachment 14) Andrew & Rachel Davidge (Attachment 15)
BACKGROUND:
The Mills Act, enacted by the State of California in 1976, grants local governments the ability to provide property tax abatements to the owners of qualified historic properties. To receive the property tax abatement, owners must sign an agreement to make capital improvements that preserve, rehabilitate, restore, or maintain their qualified historic property.
In 2004, City Council adopted Resolution No. 20825 (Attachment 16) to implement the Mills Act Program in Riverside. The program encourages the preservation of designated historic districts and individual properties throughout the City. This stewardship protects local property values and safeguards Riverside’s tangible links to the past for future generations. To manage fiscal impact, the resolution limited the number of agreements to seven per calendar year. In 2007, a lottery was held due to receiving more than seven applications.
In 2010, Resolution No. 22139 (Attachment 17) further revised the program to provide annual flexibility in the number of approved agreements. This resolution established an annual average of seven agreements over the life of the program, with a limit of ten agreements in any single year.
In 2022, Resolution No. 23921 (Attachment 18) and an amendment to Chapter 20.30 of the Riverside Municipal Code modified the program further. These modifications established a five-month application period running from January 1 through May 31 of each calendar year. Additionally, the revisions authorize the City Council to execute up to fifteen annual agreements, with a provision allowing up to twenty approvals in a single year to offset prior deficits, provided the long-term annual average does not exceed fifteen since the program’s 2004 inception.
DISCUSSION:
For 2026, fifteen Mills Act applications were received, deemed complete, and met the City’s eligibility requirements. The applications for this year include fourteen residential properties and one commercial property. Collectively, these applications feature ten-year work plans representing approximately $2,921,110 in projected capital investments for historic preservation, rehabilitation, restoration, and maintenance.
The City’s Mills Act Program consists of 160 active agreements for an average of eight per year. The fifteen agreements recommended for this year, if approved by City Council, will bring the total number of agreements to 175. Under the Mills Act Program, property owners must reinvest their estimated tax savings back into the property, maintaining a consistent ten-year average. Property owners must submit an annual report to the City documenting completed projects and their associated costs. If a property owner fails to maintain compliance and remains unresponsive to staff outreach for a prolonged period (typically three to five years), staff will initiate the contract nonrenewal process. Due to noncompliance, three properties have entered the nonrenewal process. The City will phase these properties out of the program upon contract expiration, resulting in a gradual return to full tax valuation by 2028.
A summary of the proposed 2026 Mills Act properties and City tax impacts are listed below:
No.
Case
Applicant
Property Address
Ward
Estimated Tax Savings
Estimated City Tax Impact
1 PC-2026-00129
Brian & Gina Walden
3673 Linwood Pl
1 $5,175.03
$621
2 PC-2026-00389
Malissa Mckeith
2881 Rumsey Dr
3 $4,325.26
$519
3 PC-2026-00393
Mary Lugo
3601 Linwood Pl
1 $3,122.12
$375
4 PC-2026-00483
Jennifer Allen
3869 Linwood Pl
1 $4,859.80
$583
5 PC-2026-00503
Benjamin & Hilary Guizlo
4438 5th St
1 $6,219.95
$746
6 PC-2026-00568
Thomas Dover & Lorin Wolf
4989 Magnolia Ave
1 $7,220.57
$866
7 PC-2026-00630
Crystal Coleman
3221 Redwood Dr
1 $4,434.11
$532
8 PC-2026-00631
Cory Timerman & Rebecca Reames
3770 Locust St
1 $4,016.33
$482
9 PC-2026-00645
Austin Johnson
4485 6th St
1 $5,136.82
$616
10 PC-2026-00649
Nyle Kanda
2139 Archdale St
3 $6,132.38
$736
11 PC-2026-00660
Dominick Ricci & Anna Gaissert
5958 Edith Ave
4 $11,395.24
$1,367
12 PC-2026-00661
Roger Tomihama (4562 Orange Street LLC)
4562 Orange St
1 $11,617.15
$1,394
13 PC-2026-00667
Rafael Garcia Negrete & Cristina Valadez
4536 Indian Hill Rd
1 $8,816.40
$1,058
14 PC-2026-00680
Miguel Baeza (Cabrillo Landmark Management LLC)
3595 University Ave
1 $29,875.37
$3,585
15 PC-2026-00721
Andrew & Rachel Davidge
3630 Castle Reagh Pl
1 $3,333.50
$400
Total Estimated Annual City Tax Impact
$13,880
FISCAL IMPACT:
The estimated fiscal impact from the new property tax reductions is approximately $13,880 for Fiscal Year 2027/28. Adding the special tax valuation to these properties will result in a comparable, ongoing reduction in property tax revenue in future fiscal years. This results in reduced property tax revenue to the City. Because existing staff administer and maintain the program, the City incurs no additional administrative costs. To offset staff costs, all applicants pay a $777 application fee and a $961 contract initiation fee as established by City Council. Future applicants will pay the fees updated by City Council that went into effect on July 1, 2026.
The City receives approximately 12% of the property tax collected annually by the County. For FY 2026/27, the estimated reduction in the City's property tax revenue from the current 160 properties that are part of the program is approximately $88,922, for an average of $556 per property. Adding the fifteen properties would bring the total Mills Act reduction in property taxes to approximately $102,802 per year, starting in FY 2027/28. This is only an estimate as the reduction is dependent on tax rates and the number of properties in the program.
Prepared by: Andrew Medrano, Assistant Planner
Reviewed by: Miranda Evans, Community & Economic Development Director Certified as to
availability of funds: Julie Nemes, Finance Director Approved by: Gilbert Hernandez, Assistant City Manager Approved as to form: James Johnson, City Attorney
Attachments:
Mills Act Agreement with Brian & Gina Walden
Mills Act Agreement with Malissa Mckeith
Mills Act Agreement with Mary Lugo
Mills Act Agreement with Jennifer Allen
Mills Act Agreement with Benjamin & Hilary Guizlo
Mills Act Agreement with Thomas Dover & Lorin Wolf
Mills Act Agreement with Crystal Coleman
Mills Act Agreement with Cory Timerman & Rebecca Reames Mills Act Agreement with Austin Johnson
Mills Act Agreement with Nyle Kanda
Mills Act Agreement with Dominick Ricci & Anna Gaissert Mills Act Agreement with Roger Tomihama (4562 Orange Street LLC) Mills Act Agreement with Rafael Garcia Negrete & Cristina Valadez Mills Act Agreement with Miguel Baeza (Cabrillo Landmark Management LLC) Mills Act Agreement with Andrew & Rachel Davidge
Resolution No. 20825
Resolution No. 22139
Resolution No. 23921
2026 Mills Act Contracts ● Page 2