HomeMy WebLinkAboutReso 2001-161 RESOLUTION NO. 2001-161
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ADOPTING A COUNCIL POLICY
REGARDING IMPLEMENTATION OF A MILLS ACT
PROPERTY TAX AGREEMENT PROGRAM AND
AUTHORIZING THE CITY TO ENTER INTO SAID MILLS
ACT CONTRACTS WITH THE OWNERS OF QUALIFYING
HISTORIC SITES
WHEREAS, The Mills Act is State legislation which enables local jurisdictions to enter
into contractual agreements with property owners of qualified historic properties and was
designed to encourage preservation, maintenance and restoration of designated historic
properties; and
WHEREAS, pursuant to the Mills Act legislation, entering into an agreement may result
in substantial property tax savings for those owners of historic sites through the use of an
alternative method for detemfining the assessed value of his or her property; and,
WHEREAS, such property tax savings could serve as a monetary incentive for owners of
historic properties to maintain, preserve and rehabilitate their property for the benefit of the
public today and for future generations; and
WHEREAS, on January 23, 2001, Council directed staff to prepare an ordinance and
Council Policy regarding the Mills Act that would have a liberal tone, thus encouraging
participation by homeowners; and
WHEREAS, the attached policy is presented in response to that directive and an
ordinance will be prepared at a later date if it is still determined to be necessary by the Council.
NOW THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista
does hereby adopt Council Policy No. 440-01 regarding implementation of a Mills Act Property
Tax Abatement Program, attached hereto and incorporated herein by reference as if set forth in
full.
Presented by Approved as to form by
Resolution 2001 - 161 --
Page 2
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
Califomia, this 29th day of May, 2001, by the following vote:
AYES: Councilmembers: Davis, Padilla, Rindone, Salas and Horton
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Shirley~, Mayor
ATTEST:
Susan Bigelow, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2001-161 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 29th day of May, 2001.
Executed this 29th day of May, 2001.
Susan Bigelow, City Clerk
R-2001-161
PROPOSED
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: Mills Act Property Tax POLICY EFFECTIVE
Abatement Program NUMBER DATE PAGE
5/30/01
ADOPTED BY: Resolution DATED: 5/29/01
BACKGROUND
In November 1999, Councilperson Salas was contacted by a group of historic
homeowners who were interested in pursuing the Mills Act in the City of Chula Vista.
The item was referred to City staff who reported to the City Council on December 7,
1999 and noted several potential issues with enactment of the Mills Act in the City.. The
item was then referred to the Planning Department who reported to City Council on
January 23, 2001 regarding comments on the noted issues. At that meeting, Council
directed staff to return to them with a liberal policy which would encourage participation
in this tax abatement program by the historic homeowners.
PURPOSE
To provide financial assistance in the form of property tax relief to owners of qualifying
historic properties through the Mills Act Tax Abatement Program. After a Mills Act
contract has been executed, the county assessor values the property according to the
capitalization of income method, whereby the property' s potential income is divided by a
pre-determined capitalization rate to determine the new assessed property value. The
program encourages preservation and maintenance of the City's limited historic
resources.
POLICY
1. It is the policy of the City of Chula Vista to foster and encourage the
preservation, maintenance, rehabilitation and restoration of historically
designated properties through the Mills Act program.
2. All qualifying historic sites shall be eligible for Mills Act Agreements, in
conformance with this City Council Policy and State law requirements, and
shall be evaluated on a case by case basis.
3. Contracts shall be voluntary and flexible.
4. Contracts shall contain at a minimum, the mandatory conditions required by
state law.
5. Contracts shall be reviewed by the Resource Conservation Commission and
recommended for approval. by the City Council.
6. Contracts shall include a program for potential improvements over the life of
the contract and shall be reviewed periodically for compliance. All
improvements shall be in conformance with the Secretary of the Interior
Standards for Rehabilitation.
7. No permit for the demolition, substantial alteration or removal of any
building, structure or site shall be issued without first referring the matter to
the Resource Conservation Commission.
8. Minimum maintenance guidelines as provided for in the contract should be
maintained at all times during the term of the agreement. Minimum
maintenance guidelines are suggested as follows:
a. Owner should make every attempt to preserve and maintain the
regulated characteristics of historical significance of the Historic Site,
and, where necessary, restore and rehabilitate the property, in
accordance with the rules and regulations published by the Secretary
of the Interior.
b. Owner should maintain all buildings, structures, yards and other
improvements in a manner which does not detract from the appearance
of the immediate neighborhood. The following conditions are highly
discouraged:
i. Dilapidated, deteriorating, or unrepaired structures, such as:
fences, roofs, doors, walls and windows;
ii. Scrap lumber, junk, trash or debris;
iii.Abandoned, discarded or unused objects or equipment, such as
automobiles, automobile parts, furniture, stoves, refrigerators,
cans, containers, or similar items;;
iv. Any device, decoration, design, structure or vegetation which
is unsightly by reason of its height, condition, or its
inappropriate location.
9. Contracts shall be drafted in a form approved by the City Attorney.
10. The Community Development Department shall be provided the opportunity
to review and comment on all Mills Act applications for commercial
properties located within Redevelopment Areas. These proposed contracts
shall be reviewed for potential negative financial consequences to the
Redevelopment Area.
J:XPlanningXBEVXHistoric Preservation\COUNCIL POLICY.doc