City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01557 10/8/2024 Consent Item 7.
Mills Act Historical Property Contracts: 2751 Montgomery Way (IR23-211), 1008 2nd Street (IR23-267), 1020 11th Street (IR23-302), 2718 G Street (IR24-030), 515 Railyards Boulevard (IR24 -153), 2014 10th Street (IR24-165), 1049 44th Street (IR24-177), 1616-1624 21st Street (IR24-190), and 516 10th Street (IR24-196)
File ID: 2024-01557
Location: 2751 Montgomery Way (013-0231-017-0000), 1008 2nd Street (006-0071-043-0000), 1020 11th Street (006-0103-010-0000), 2718 G Street (003-0202-001-0000), 515 Railyards Boulevard (002 -0300-016-0000), 2014 10th Street (009-0131-015-0000), 1049 44th Street (008-0151-011-0000), 1616-1624 21st Street (007-0315-027-0000); and 516 10th Street (002-0112-013-0000); District 4, Represented by Councilmember Valenzuela and Mayor Steinberg; District 7, Represented by Councilmember Jennings
Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to:
1) execute Mills Act Historical Property Contracts with the owners of each of the following properties:
2751 Montgomery Way, 1008 2nd Street, 1020 11th Street, 2718 G Street, 515 Railyards Boulevard, 2014 10th Street, 1049 44th Street, 1616-1624 21st Street, and 516 10th Street whereby the owners agree to preserve, restore, and protect their historical 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 exhibit A (the Rehabilitation/Restoration/Maintenance Plan (i.e. work plan) of each contract if the amendment does not result in expense to the City.
Contact: Sean de Courcy, Preservation Director, (916) 808-2796, [email protected], Community Development Department
Presenter: None
Attachments:
1-Description/Analysis
2-Background
3-Agreement 2751 Montgomery Way
4-Agreement 1008 2nd Street
5-Agreement 1020 11th Street
6-Agreement 2718 G Street
7-Agreement 515 Railyards Boulevard
8-Agreement 2014 10th Street
9-Agreement 1049 44th Street
File ID: 2024-01557 10/8/2024 Consent Item 7.
10-Agreement 1616-1624 21st Street
11-Agreement 516 10th Street
Description/Analysis
Issue Detail: The City’s Mills Act program authorizes owners of qualified historical properties to enter into a contract 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 approve Mills Act contracts with the owners of the following properties: 2751 Montgomery Way, 1008 2nd Street, 1020 11th Street, 2718 G Street, 515 Railyards Boulevard, 2014 10th Street, 1049 44th Street, and 1616-1624 21st Street, and 516 10th Street.
Policy Considerations: The 2040 General Plan’s Historic and Cultural Resources Element established Policy HCR-1.12 Incentives for Rehabilitation and Adaptive Reuse of Historic Resources, which states “The City shall continue to encourage and support restoration and adaptive reuse through implementation of Mills Act contracts, grant programs, and other preservation 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 2751 Montgomery Way, 1008 2nd Street, 1020 11th Street, 2718 G Street, 515 Railyards Boulevard, 2014 10th Street, 1049 44th Street, 1616-1624 21st Street, and 516 10th 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: 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’s 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: 2751 Montgomery Way, 1008 2nd Street, 1020 11th Street, 2718
File ID: 2024-01557 10/8/2024 Consent Item 7.
G Street, 515 Railyards Boulevard, 2014 10th Street, 1049 44th Street, 1616-1624 21st Street, and 516 10th Street are all properties listed in the Sacramento Register of Historic and Cultural Resources or the National Register of Historic Places 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 the Background section below.
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 nine 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.
Background:
The status of each resource is shown in Table 1.
Table 1: Qualified Historical Property Status
Address Status Historic District (If applicable)
2751 Montgomery
Way
Landmark Gateway Historic District
1008 2nd Street Contributing
Resource
Old Sacramento National Historic
Landmark District
1020 11th Street Landmark Cathedral Square Historic District 2718 G Street Landmark
515 Railyards
Boulevard
Contributing
Resource
Sacramento Shops Historic District
2014 10th Street Contributing
Resource
Southside Historic District
1049 44th Street Landmark
1616-1624 21st
Street
Contributing
Resource
Winn Park Historic District
516 10th Street Landmark Alkali Flat Central Historic Distirct
When considering a Mills Act contract application, City Code section 17.604.720.D provides that the city may give priority to applicants that demonstrate any of the following:
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 nine properties meet these criteria as shown in Table 2 and staff has determined all nine are eligible for historical property agreements, subject to the terms of Attachment 3 to Attachment 11, respectively. Images of each property are shown in Figure 1-9.
Table 2: Justification for Mills Act Consideration
Address Description Applicable Criteria
2751 Montgomery
Way
The property is significant as it is located
in the Gateway Historic District, listed on
the National Register of Historic Places,
and is a landmark on the Sacramento
Register. Designed by the renowned
architects Dean and Dean, it holds
considerable architectural and historical
value within the district. The new owners
have expressed a strong commitment to
rehabilitate the building, demonstrating
their ability to preserve and restore its
historic integrity. This rehabilitation will
enhance the city's inventory of historic
and cultural resources by preserving an
important architectural work and
contributing to the district's overall
historical narrative.
17.604.720.D.1;
17.604.720.D.2; and
17.604.720.D.3
1008 2nd Street The property is a contributing resource within the Old Sacramento National Historic
Landmark District, which is in the process of
being listed on the Sacramento Register.
This would elevate the building's status as a
locally listed contributing resource. The
property owner, who owns multiple historic
properties, has a proven track record of
engaging with preservation staff and making
improvements in accordance with
preservation standards. The ongoing efforts
to maintain and enhance this property will
bolster the city’s inventory of historic and
cultural resources and further solidify the
historical significance of the Old Sacramento
district.
17.604.720.D.1;
17.604.720.D.2; and
17.604.720.D.3
1020 11th Street The property is a designated landmark
and a contributing resource within the
Cathedral Square Historic District. The
applicant recently restored the building,
17.604.720.D.1;
17.604.720.D.2; and
17.604.720.D.3
demonstrating a strong commitment to
preserving its character-defining
features. This restoration not only
maintains the historic integrity of the
property but also enhances the city's
inventory of historic and cultural
resources, contributing to the overall
preservation and significance of the
Cathedral Square Historic District.
2718 G Street The historic Marshall School, a
prominent landmark in the Central City's
northeast corner, holds significant
historic value. The building owners have
submitted plans to rehabilitate the school
into a residential adaptive reuse project.
With a proven track record in similar
projects, such as the historic
Maydestone Apartments, the owners are
well-equipped to preserve and adapt the
property. This project will enhance the
city’s inventory of historic and cultural
resources by giving new life to a key
historic landmark while preserving its
architectural integrity.
17.604.720.D.1;
17.604.720.D.2; and
17.604.720.D.3
515 Railyards
Boulevard
The historic Paintshop Building, located
within the Sacramento Shops Historic
District—a locally listed district central to
the Railyards redevelopment area—
holds significant historic value. Planning
approval has been granted to convert
this historic railroad building into a
5,000+ seat live music venue. This
adaptive reuse project will preserve the
building's historic integrity while
revitalizing it for contemporary use. The
project will significantly enhance the
city’s inventory of historic and cultural
resources by bringing new energy to a
17.604.720.D.1;
17.604.720.D.2; and
17.604.720.D.3
key contributing resource within the
district.
2014 10th Street This Mid-Century Modern building was
designed by the city's first licensed
Japanese American architect for one of
the city's first African American dentists,
highlighting its cultural and historic
significance. The property owner has
shown excellent stewardship of this
important building and supports staff's
intent to landmark it, recognizing its
importance to both the Japanese
American and African American
communities. This landmark designation
will preserve the building’s unique
heritage and enhance the city’s inventory
of historic and cultural resources by
honoring its architectural and cultural
contributions.
17.604.720.D.1;
17.604.720.D.2; and
17.604.720.D.3
1049 44th Street The building, recently designated as one of the city's newest landmarks, was
sponsored by the property owner, who
plans to reside in it for many years.
Located in the Fabulous Forties
neighborhood, renowned for its well-
preserved collection of period revival
style buildings, this property is a
significant addition to the area’s historic
fabric. The owner’s commitment to living
in and maintaining the building will help
ensure its preservation, further enriching
the city’s inventory of historic and
cultural resources and preserving the
architectural integrity of this notable
neighborhood.
17.604.720.D.1;
17.604.720.D.2; and
17.604.720.D.3
1616-1624 21st
Street
The property comprises three individual
historic buildings on a single lot that
were at risk of being lost due to neglect.
In 2018, the city incorporated these
17.604.720.D.1;
17.604.720.D.2; and
17.604.720.D.3
buildings into the Winn Park Historic
District, demonstrating a strong
commitment to their preservation and
restoration. The current property owner
then undertook a significant rehabilitation
project, converting the single dwelling
units into three multi-unit buildings. This
contract would ensure the buildings’
historic value is maintained, contributing
positively to the city’s inventory of
historic and cultural resources.
516 10th Street The building is a landmark and
contributing resource to the Alkali Flat
Central Historic District, one of the oldest
areas of the Central City. Having
recently changed ownership, the
property will benefit from the tax
incentives provided by the Mills Act,
which, along with the required workplan,
will support the owner in making
essential repairs to the building that is
over 120 years old. This effort will
preserve the building's historic value and
enhance the city’s inventory of historic
and cultural resources by ensuring the
continued integrity of this prominent
landmark.
17.604.720.D.1;
17.604.720.D.2; and
17.604.720.D.3
Figure 1: 2751 Montgomery Way
Figure 2: 1008 2nd Street
Figure 3: 1020 11th Street
Figure 4: 2718 G Street
Figure 5: 515 Railyards Boulevard
Figure 7: 2014 10th Street
Figure 8: 1049 44th Street
Figure 9: 1616-1624 21st Street
Figure 10: 516 10th Street