TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Isidro Figueroa, Community Development Director
Camillia Martinez, Associate Planner
DATE: October 9, 2024
SUBJECT: CONSIDERATION OF APPROVAL FOR A MILLS ACT
PROGRAM FOR THE PROPERTY LOCATED AT 708
WINSTON AVENUE
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Beautiful, Preserved, Single-Family Neighborhoods
Engaged and Connected Residents
BACKGROUND
On August 28, 2024, the Planning Commission conducted a public hearing and took public testimony on a request to approve a Certificate of Appropriateness to replace exterior windows and doors to the residence at 708 Winston Avenue and provide a recommendation to the City Council for the property to be considered for the Mills Act Program. The Planning Commission unanimously (5-0) approved the Certificate of Appropriateness and recommended that the City Council approve the Mills Act request.
DISCUSSION
Designed by master architect Roland E. Coate, Sr., in 1929, 708 Winston Avenue was designated in 2017 as a City of San Marino historic landmark (Resolution No. R-17-26). Known as the C.G. Fitzgerald Residence, the home was found to be a distinctive example of the Monterey Colonial Revival architectural style. The designation occurred before the City of San Marino adopted a broader Historic Preservation Ordinance in 2018. If the City Council Steven W. Huang, DDS, Mayor
Gretchen Shepherd Romey, Vice Mayor
Tony Chou, Council Member
Calvin Lo, Council Member
Steve Talt, Council Member
approves the C.G. Fitzgerald Residence Mills Act contract, it will be the second Mills Act contract approved by the City Council known to staff with the other residence being 1779 Lombardy Road which was approved by the City Council on June 9, 2021. 2021. The property is not listed as a California or National Historic Landmark.
MILLS ACT AND MILLS ACT CONTRACT
The 1972 Mills Act is an economic incentive program in the State of California that provides tax relief in order to obtain funds to preserve a qualified historical building. The Mills Act requires a minimum of a 10-year contract between the City and the property owner. Once approved by the Council, the contract is submitted to the Los Angeles County Recorder’s Office, and the contract is recorded with the County. Once recorded by the County, the property value is assessed based on income value rather than the traditional market rate or sales data approach. Properties that are eligible for the Mills Act are properties or buildings that are listed on either the National Register, the California Register of Historical Homes or listed as a local landmark with the City.
The Mills Act contract request involves a two-step process. First, the property must be listed on one of the requisite registers or be located in a nationally registered historic district. If the property is not listed on the California or federal registers, the first step would be to obtain the local culturally significant landmark designation, which is one component of the current request.
As the property already meets the prerequisite of being designated as a Local Historical Landmark, the property owners could apply to have the City Council approve a Mills Act contract. In exchange for receiving a reduction of property taxes, the owners of the landmark property agree to protect, maintain and restore the historic landmark property as appropriate. The applicant has provided a “Rehabilitation/Restoration/Maintenance Work Plan,” which details the proposed reinvestment of property tax savings associated with the subject property. The Rehabilitation/Restoration/Maintenance Work Plan for the property is a part of the Mills Act application and has been incorporated into the proposed Mills Act contract and memorializes the obligations of the property owner to rehabilitate, restore, and maintain certain aspects of the property, and the City’s ability to inspect and verify that those obligations are being fulfilled during the term of each agreement.
FISCAL IMPACT & PROCUREMENT REVIEW
There is no immediate financial impact or budget action necessary as a result of the recommended action. If the Mills Act Contract is approved by the City Council, the City’s annual fiscal impact will be approximately $12,086 in property tax reductions. Since this estimate is based on financial data submitted by the applicant, the City will work with the County Assessor to verify all calculations prior to final tax assessments. By executing a Mills Act contract, the City does not corroborate the applicant’s submitted financial statement but authorizes tax abatement for the individual property. Staff will return to Council if specific budget actions are required in the future.
This requires no procurement review.
LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.
RECOMMENDATION
Staff recommends that the City Council adopt Resolution R-24-27. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to adopt Resolution No. R-24-27, approving the Mills Act Contract for the property located at 708 Winston Avenue that is attached to the Staff report.”
ATTACHMENTS
1. Mills Act Narrative
2. Resolution R-24-27
3. Mills Act Application and Work Plan
4. Mills Act Contract