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 14 qualified historic properties.
body
2. Summary
A request for approval of 14 new Mills Act Contracts for properties in the Old Towne and Eichler Historic Districts, as well as for one commercial property outside of a historic district.
3. Recommended Action
recommendation
Approve 14 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.
end
4. Fiscal Impact
The purpose of the Mills Act Program is to leverage property tax savings to support private investment in the preservation of historic properties. The subject 14 Mills Act contracts, represent a total reduction of property tax of approximately $15,700 per year. 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.
The Mills Act Program requires reinvestment of this property tax reduction in preservation of the historic property through the Rehabilitation Plan attached to each contract. The identified work will generate additional revenues from building permit fees, and the local economy will benefit by generating work for local architects, building contractors and material suppliers. The rehabilitation plans associated with the subject contracts total $1,435,566 in property maintenance and rehabilitation over ten years.
The $1,050 application fee for each contract offsets the cost of staff review, property inspection, and contract administration. The $100 annual fee offsets ongoing costs of administration of the contracts.
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
Mills Act applications for 18 qualified historic properties were received during the 2024 application period. Of those, 14 contracts are being presented for Council consideration at the present time, with the remaining four undergoing final refinement for consideration by the Council on November 26, 2024. The subject properties include 11 in the Old Towne Historic District, two in the Eichler Historic Districts, and one outside of a historic district that is individually listed on the city’s Historic Resources Inventory.
The proposed Rehabilitation Plan attached to each contract (Exhibit D of contract) has been tailored to the preservation needs of that property. Upon entering into a contract, a property owner agrees to complete this work. The work has been found to meet Mills Act Program requirements and to be in conformance with applicable design standards. Additional contract conditions include:
Preserve and rehabilitate the historic property and its character-defining features.
Meet City of Orange Historic Property Maintenance Standards.
Agree to property inspections once every five years of the contract term and/or when work is completed.
File annual status reports on progress of improvements and repairs and/or any changed conditions of the property.
Provide a ten-year update of proposed rehabilitation and repair items, 90 days prior to the tenth contract anniversary.
A summary of each application is provided in Attachment 1 to the Staff Report.
7. ATTACHMENTS
• Attachment 1 Summary of 2024 Mills Act Applications, Batch 1, November 12, 2024
• Attachment 2 Mills Act Contract MAC 446.0-24 with photographs
• Attachment 3 Mills Act Contract MAC 447.0-24 with photographs
• Attachment 4 Mills Act Contract MAC 448.0-24 with photographs
• Attachment 5 Mills Act Contract MAC 449.0-24 with photographs
• Attachment 6 Mills Act Contract MAC 450.0-24 with photographs
• Attachment 7 Mills Act Contract MAC 452.0-24 with photographs
• Attachment 8 Mills Act Contract MAC 453.0-24 with photographs
• Attachment 9 Mills Act Contract MAC 455.0-24 with photographs
• Attachment 10 Mills Act Contract MAC 457.0-24 with photographs
• Attachment 11 Mills Act Contract MAC 458.0-24 with photographs
• Attachment 12 Mills Act Contract MAC 459.0-24 with photographs
• Attachment 13 Mills Act Contract MAC 460.0-24 with photographs
• Attachment 14 Mills Act Contract MAC 461.0-24 with photographs
• Attachment 15 Mills Act Contract MAC 462.0-24 with photographs