City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01116 10/3/2023 Consent Item 10.
Mills Act Contracts: Historical Property Agreements for 1230 45th Street (IR23-216), 1301 45th Street (IR23-065), 1122 7th Street (IR23-186), and 2305 Capitol Avenue (IR23-090) File ID: 2023-01116
Location: 1230 45th Street (008-0211-014-0000), 1301 45th Street (008-0272-010-0000), 1122 7th Street (006-0091-038-0000), 2305 Capitol Avenue (007-0155-015-0000); District 4, Represented by Councilmember Valenzuela and Mayor Steinberg
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 1230 45th Street, 1301 45th Street, 1122 7th Street, 2305 Capitol Avenue 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, Community Development Department
Presenter: None
Attachments:
1-Description/Analysis
2-Agreement 1230 45th Street
3-Agreement 1301 45th Street
4-Agreement 1122 7th Street
5-Agreement 2305 Capitol Avenue
6-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
File ID: 2023-01116 10/3/2023 Consent Item 10.
recommending the City Council enter into Mills Act contracts with the owners of the following properties: 1230 45th Street, 1301 45th Street, 1122 7th Street, and 2305 Capitol Avenue.
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 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 1230 45th Street, 1301 45th Street, 1122 7th Street, and 2305 Capitol Avenue 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: 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: 1230 45th Street, 1301 45th Street, 1122 7th Street, and 2305 Capitol Avenue 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 6.
Financial Considerations: The City General Fund (Fund 1001) revenue can expect a de minimis
File ID: 2023-01116 10/3/2023 Consent Item 10.
reduction in property taxes due to the reassessed value of these four 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.
Attachment 6: 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)
1230 45th Street Landmark Not Applicable
1301 45th Street Landmark Not Applicable
1122 7th Street Landmark Not Applicable
2305 Capitol
Avenue
Landmark &
Contributing
Contributing Resource to the Capitol
Mansions Historic District
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 four properties meet these criteria as shown in Table 2 and staff has determined all four are eligible for historical property agreements, subject to the terms of Attachment 2- 5, respectively. Images of each property are shown in Figure 1-4.
Table 2: Justification for Mills Act Consideration
Address Description Applicable Criteria
1230 45th Street This is a somewhat rare example of
prominent Sacramento architect, Harry
Devine, Sr. and was built by Azevedo
and Sarmento, a prominent Sacramento
construction firm. The building is a fine
example of the French eclectic style with
17.604.720.D.1;
17.604.720.D.2; and
17.604.720.D.3
distinct historic architectural elements
intact. Significant features and
characteristics of this architectural style
include its originally-painted brick
construction with quoins of various sizes,
decorative brick frieze, clay tile roof, front
facing gable with a decorative arched
entrance flanked by sconces, diamond
shaped brick vent in front gable, and
casement windows with divided lites to
name just a few. The new owners have
provide a detailed list that will retain the
integrity of all structures and landscaping
to lead to their continued occupancy in a
way that is compatible with its original
use.
1301 45th Street One of Sacramento most recent landmarks, and a distinctive example of French eclectic
and English Tudor Revival styles with
distinct historic architectural elements intact.
Significant features and characteristics of
the styles include its concrete block
construction with an applied stone-like
exterior, clay tile roof, prominent arched
window in a front-facing gable with beveled
divided lites, and decorative chimney stacks.
The owner has committed to maintaining the
historic materials on the house and intend
preserve all historic elements with
compatible materials.
17.604.720.D.1;
17.604.720.D.2; and
17.604.720.D.3
1122 7th Street The Marshall Hotel, originally the Hotel Clayton, as listed in 1982 as a landmark
with what is now the Sacramento
Register of Historic & Cultural Resources
for its association with the Clayton
family, for its association with master
California architect Charles W. Dickey,
and for its association with Sacramento
African American history as the location
of the Clayton Club, one of the only
surviving jazz clubs of Sacramento’s
17.604.720.D.1;
17.604.720.D.2; and
17.604.720.D.3
legendary West End. The intensive
remodel represents a significant up front
investment that retained the historic use
as a hotel and retain ground level
retail/restaurant uses. The owners have
accomplished this by retaining and
rehabilitating the significant, character-
defining Marshall Hotel building street
façades along with original piers and
fenestration rhythm, and materials
sympathetic to the original pattern and
design.
2305 Capitol Avenue This is a contributing resource to the Capitol Mansions Historic District as it is
historically associated with State
Government. The new owner has
worked with the Preservation
Department and commits to
improvements that will retain the integrity
of the building and lead to its restoration
and intend to maintain all historic
elements and/or replace with compatible
materials.
17.604.720.D.1;
17.604.720.D.2; and
17.604.720.D.3
Figure 1: 1230 45th Street
Figure 2: 1301 45th Street
Figure 3: 1122 7th Street
Figure 4: 2305 Capital Avenue