TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Russell Bunim, Community Development Director
1. SUBJECT
title
Historic Property Preservation Agreements (Mills Act Contracts) for 17 qualified historic properties.
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2. SUMMARY
A request for approval of 17 new Mills Act Contracts for properties in the Old Towne and Eichler Historic Districts. Consideration of the contracts for residential properties was continued by the City Council at its November 12, 2024, meeting, while the single commercial property contract was approved.
3. RECOMMENDED ACTION
recommendation
1. Approve 17 Mills Act Contracts between the City of Orange and the identified property owners for the preservation and rehabilitation of qualified historic properties; and authorize the Mayor and City Clerk to execute the contracts on behalf of the City.
2. Provide staff with direction on accepting applications in calendar year 2025 for the Mills Act Program.
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4. FISCAL IMPACT
The subject 17 Mills Act contracts, represent a total reduction of property tax of approximately $16,167 per year (average reduction of $951 per property). The actual amount of the property tax reduction will be determined by the Orange County Assessor, using a predetermined income-based approach to assessment, considering area rental rates and maintenance costs.
There is a $1,050 application fee for each contract as well as a $100 annual contract administration fee.
5. STRATEGIC PLAN GOALS
Goal 5: Recognize, promote, and preserve Orange's rich heritage
b: Expand and strengthen processes and practices related to protection and cultural resources.
6. DISCUSSION AND BACKGROUND
The purpose of the Mills Act Program is to leverage property tax savings to support private investment in the preservation of historic properties. The 17 contracts being presented for City Council consideration involve residential properties; 11 in the Old Towne Historic District and six in the Ei...
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