TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Russell Bunim, Community Development Director
1. SUBJECT
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Proposed Mills Act Program Guidelines
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2. SUMMARY
Staff is proposing updated Mills Act Program Guidelines to improve program administration, establish clear application and evaluation criteria, strengthen monitoring and compliance, align program workload with available resources, and better manage the fiscal impacts associated with Mills Act contracts while continuing to support preservation of the City’s historic resources.
3. RECOMMENDED ACTION
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Adopt Resolution No. 11720, a Resolution of the City Council of the City of Orange approving Mills Act Program Guidelines.
Provide direction regarding whether the City Council would like staff to return with additional policy options concerning existing and future Mills Act contracts.
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4. FISCAL IMPACT
Adoption of the proposed Mills Act Program Guidelines does not require an immediate General Fund appropriation. Mills Act contracts can result in reduced property tax revenue to the City as a result of the special property tax valuation provided under State law. The amount of the reduction varies by property and is determined through valuation by the Orange County Assessor.
The proposed annual limit on new contracts is intended to better manage the long-term fiscal impact of the program as well as the staff and consultant resources required for application review, inspections, monitoring, and contract administration.
5. STRATEGIC PLAN GOALS
Goal 3: Enhance Quality of Life Through City Services
Objective 3.1: Mills Act Audit
Goal 6: Ensure the Preservation of Historic Resources
6. DISCUSSION AND BACKGROUND
The Mills Act is a State-authorized historic preservation incentive that allows a local government to enter into a contract with the owner of a qualified historic property. In exchange for the property owner’s commitm...
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