TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Russell Bunim, Community Development Director
1. SUBJECT
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Historic Property Preservation Agreements (Mills Act Contracts) for 14 qualified historic properties.
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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
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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.
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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. STRATEGI...
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