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 19 qualified historic properties.
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2. SUMMARY
The Community Development Department Historic Preservation Program received 19 applications for new Mills Act Contracts in the Old Towne and Eichler Historic Districts for the Spring and Fall 2023 application period. Staff recommends approval and execution of the contracts.
3. RECOMMENDED ACTION
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Approve 19 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 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.
For the 19 Mills Act application received in Spring and Fall 2023, the City may incur a total reduction of property tax of approximately $18,617 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 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 19 historic properties totals $1,966,084.46 over ten years.
The $1,050 application fee for each contract offsets the cost of staff review, p...
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