City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01874 11/15/2022 Consent Item 24.
Mills Act Contracts: Historical Property Agreements for 723 S Street (IR22-291), 1512 24th Street (IR22-338), and 1121 40th Street (IR22-392)
File ID: 2022-01874
Location: 723 S Street, 1512 24th Street, and 1121 40th Street, Districts 3 and 4 Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to:
1) enter into Mills Act Contracts with each of the owners of the following properties: 723 S Street, 1512 24th Street, and 1121 40th Street whereby the owners agree to preserve, restore, and protect their historic properties, for an initial term of ten years with automatic contract renewal each year on the anniversary of the contract execution date; and 2) execute amendments to the Rehabilitation/Restoration/Maintenance Plan (i.e. work plan) that do not result in expense to the City.
Contact: Sean de Courcy, Preservation Director, (916) 808-2796, Henry Feuss, Preservation Planner, (916) 808-5880; Community Development Department Presenter: None.
Attachments:
1-Description/Analysis
2-Agreement 723 S Street
3-Agreement 1512 24th Street
4-Agreement 1121 40th Street
5-Contract Justification Information
Description/Analysis
Issue Detail: The City’s Mills Act program authorizes owners of qualified historical properties to enter into an agreement with the City whereby the property owner agrees to preserve, restore, and rehabilitate their historical property. In exchange, by entering into a Mills Act contract, the property owner qualifies the property for an assessment of valuation in accordance with California Revenue and Taxation Code section 439 et seq., which may result in tax savings to the property owner. Staff is recommending the City Council enter into Mills Act contracts with the owners of the following properties: 723 S Street, 1512 24th Street, and 1121 40th Street.
Policy Considerations: The 2035 General Plan’s Historic and Cultural Resources Element established Policy HCR 2.1, which includes the “Identification and Preservation of Historic and
File ID: 2022-01874 11/15/2022 Consent Item 24.
Cultural Resources to enrich our sense of place and our understanding of the city’s prehistory and history. Goal HCR 2.1.4 is intended to help the city achieve Policy HCR 2.1, and states that the “City shall develop and support regulatory, technical, and financial incentives, and enforcement programs to promote the maintenance, rehabilitation, preservation, and interpretation of the city’s historic and cultural resources.” The Mills Act Program is one of the City’s few historic property incentive programs.
City Code section 17.604.100.C.2 directs the Preservation Director to manage the City’s incentives programs established by council. To that end, the Preservation Director has recommended the properties at 723 S Street, 1512 24th Street, and 1121 40th Street as eligible candidates for historical property contracts, also known as Mills Act contracts. Pursuant to City Code section 17.604.720.G the City Council may approve, approve with conditions, or deny the proposed contract.
Economic Impacts: Not applicable.
Environmental Considerations:
California Environmental Quality Act (CEQA): Historical property contracts are exempt from review under the California Environmental Quality Act pursuant to CEQA Guidelines section 15308. Section 15308 exempts from review acts that are undertaken to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment. Historical property contracts ensure regular maintenance and repair to historic properties pursuant to the Secretary of the Interior Standards for the Treatment of Historic Properties. No other physical change in the environment would occur as a result of this action.
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: 723 S Street, 1512 24th Street, and 1121 40th Street, and are all properties listed in the Sacramento Register of Historic and Cultural Resources and considered “qualified historical properties” under the State’s Mills Act (see Government Code section 50280.1).
Each property is a well-justified candidate for a Mills Act contract, as shown in Attachment 5.
Financial Considerations: The City General Fund (Fund 1001) revenue can expect a de minimis reduction in property taxes due to the reassessed value of these five properties following execution of the contracts. Actual losses to the City will depend on calculations performed by the County Tax Assessor and will vary from property to property based on a variety of factors.
Local Business Enterprise (LBE): Not applicable.
723 S Street, Sacramento, CA 95811
Attachment 5: Mills Act Contract Justification Information
The status of each resource is shown in Table 1.
Table 1: Qualified Historical Property Status
Address Status Historic District (If applicable)
723 S Street Landmark Not Applicable
1512 24th Street Contributing Contributing Resource to the Winn Park Historic District
1121 40th Street Landmark Not Applicable
When considering a Mills Act contract application, City Code section 17.604.720.D provides three criteria that the city may give priority to certain applicants, these are:
1. The property is particularly significant due to its historic value, location, or other attribute;
2. The applicant has the ability to preserve and, when necessary, restore and rehabilitate the property; and
3. The preservation and, when necessary, restoration and rehabilitation of the property will enhance the city’s inventory of historic and cultural resources.
All three properties meet these criteria as shown in Table 2 and staff has determined all three are eligible for historical property agreements, subject to the terms of Attachment 2-5, respectively. Images of each property are shown in Figure 1-3.
Table 2: Justification for Mills Act Consideration
Address Description Applicable Criteria
723 S Street This former industrial building is a prominent landmark along Sacramento’s S Street.
Originally built to serve as a headquarters
and manufacturing facility for the P.G. and
E. Company, the structure is an attractive
and intact example of utilitarian architecture
from the early 20th-century. The new owner
has a long list of improvements that will
17.604.720.D.1;
17.604.720.D.2; and
17.604.720.D.3
retain the integrity of the building and lead to
its continued occupancy in a way that is
compatible with its original use.
1512 24th Street This contributing resource to the Winn Park Historic District is an intact example of a
highwater craftsman house that retains
many original stylistic features, such as
original wood windows, brackets, and
terrazzo stairs. The new owners have
committed to restoring the historic materials
on the house and intend to replace non-
historic elements with compatible materials.
17.604.720.D.1;
17.604.720.D.2; and
17.604.720.D.3
1121 40th Street One of Sacramento’s most recent
landmarks, and a distinctive example of
craftsman architecture, this property was
one of Wright and Kimbrough’s
“demonstration” houses and was initially
used to show the development company’s
architectural abilities and options for
potential homebuyers. The house has since
been occupied by residents with prominent
connections to Sacramento such as the
founders of the Fox and Goose Public
House. The current owners are undertaking
a number of restoration projects including
exterior repairs, and interior woodwork
restoration.
17.604.720.D.1;
17.604.720.D.2; and
17.604.720.D.3
Figure 1: 723 S Street
Figure 2: 1512 24th Street
Figure 3: 1121 40th Street