TO: Honorable Mayor and Members of the City Council
THRU: Rick Otto, City Manager
FROM: William Crouch, Community Development Director
1. SUBJECT
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Historic Preservation Agreements (Mills Act Contracts) for fifteen qualified historic properties.
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2. SUMMARY
The Community Development Department Historic Preservation Program received fifteen applications for new Mills Act Contracts in the Old Towne and Eichler Historic Districts for the Spring 2020 application period. Staff recommends approval and execution of the contracts.
3. RECOMMENDED ACTION
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Approve fifteen 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 City may incur a total reduction of property tax of approximately $10,441 per year. The actual amount of the property tax reduction under each 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 $1,000 application fee for each contract offsets the cost of staff review, property inspection, and this public meeting. The $30 annual fee offsets ongoing costs of administration of the contracts. Rehabilitation 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.
5. STRATEGIC PLAN GOALS
Goal 5: Recognize, promote and preserve Orange's rich heritage
b. Expand and strengthen processes and practices related to the protection of cultural resources.
6. DISCUSSION AND BACKGROUND
The purpose of the Mills Act Program is to leverage property tax savings to support private investment in the preservation of historic properties.
Mills ...
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