TO: Honorable Mayor and Members of the City Council
THRU: Rick Otto, City Manager
FROM: Susan Galvan, Interim Community Development Director
1. SUBJECT
title
Historic Property Preservation Agreements (Mills Act Contracts) for ten qualified historic properties.
body
2. SUMMARY
The Community Development Department Historic Preservation Program received ten applications for new Mills Act Contracts in the Old Towne and Eichler Historic Districts for the Spring 2021 application period. Staff recommends approval and execution of the contracts.
3. RECOMMENDED ACTION
recommendation
Approve ten 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.
For the ten Mills Act applications received in Spring 2021, the City may incur a total reduction of property tax of approximately $8,657 per year. The actual amount of the property tax reduction under the Mills Act Contract will be determined by the Orange County Office of the 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 (Exhibit D) attached to each contract. The Rehabilitation Plan will generate additional revenues from building permit fees, and the local economy will benefit from specialized work in historic preservation by local building contractors and material suppliers. The investment by property owners in these ten historic properties totals $780,630 over ten years.
The $1,000 application fee for each contract offsets the cost of...
Click here for full text