HomeMy WebLinkAboutRCC MIN 2001/03/05
MINUTES OF A REGULAR MEETING OF THE
RESOURCE CONSERVATION COMMISSION
March 5, 2001
Mercy Building Conference Room
430 "F" Street
MEETING CALLED TO ORDER: Vice-Chair Charles Bull called the meeting to order at
6:40 p.m.
ROLL CALL/MOTION TO EXCUSE
MSC (S. Thomas/Diaz) to excuse Chair Cindy Burrascano and
Commissioner Pam Bensoussan. Vote: (4-0)
MEMBERS PRESENT: Vice-Chair Charles Bull, Commissioners Teresa Thomas,
Steve Thomas, Juan Diaz and Pam Bensoussan (6:46 p.m.)
STAFF PRESENT: Marilyn Ponseggi, Environmental Review Coordinator
Edalia Olivo-Gomez, Environmental Projects Manager
Sue Gray, Code Enforcement Manager
Linda Bond, Recording Secretary
APPROVAL OF MINUTES: December 4,2000, January 8, January 22 and February 5,
2001
The appropriate Commissioners were not present for approval of the December 4,
2000, January 22 and February 5, 2001 minutes. The minutes were deferred to the
March 19, 2001 meeting.
Vice-Chair Bull stated that, hearing no revisions or objections to the minutes of
January 8, 2001, they stand approved.
ORAL COMMUNICATIONS: None.
OLD BUSINESS: None.
NEW BUSINESS
1. IS-01-09 - Moss Street Townhomes, 345 Moss Street
Ms. Edalia Olivo-Gomez (Environmental Projects Manager) indicated that the
proposed project site consists of two lots for a total of 0.83 acres. Multiple-family
residential is to the north, south and west with commercial to the east (K-Mart). A
RCC Minutes - 2 - March 5, 2001
14-unit, two-story town home project is proposed with 38 enclosed parking
spaces, six guest parking spaces and a 2,120 square foot outdoor common use
area. The project is consistent with the current zoning and General Plan
designations as well as with the Montgomery Specific Plan. The potential impacts
with air quality and hazards are related to the demolition of the existing buildings.
In order to mitigate potential impacts to a level below significant, the existing
structures will be examined for the presence of asbestos prior to demolition. The
parking lot and delivery truck noise from K-Mart may expose future occupants to
severe noise levels. Due to this potential, an Acoustical Analysis was prepared,
which concluded that the outdoor use area would be subject to noise levels
acceptable according to the City of Chula Vista Municipal Code. However, five
daytime hourly average noise levels above 60 dB(A) LEO were recorded. The
loudest being 66.0 dB(A) LEO generated by the K-Mart shipping and receiving
area. It exceeds the hourly average noise level required under the Municipal
Code and also requires mitigation. The proposed mitigation to reduce this impact
to a level below significance is the construction of a 6-foot high sound attenuation
wall along the eastern property line from its southern end to the front setback
prior to occupancy of the proposed project. Staff needs to revise page 14 of the
Initial Study under NOISE to insert "A 6-foot hiqh sound attenuation wall..." With
that revision, staff is recommending the adoption of the Mitigated Negative
Declaration.
The noise issue was discussed at length. Vice-Chair Bull indicated that noise
levels should be clarified at some point in the Negative Declaration, and that the
Acoustical Analysis should demonstrate that a 6-foot wall mitigates the impact of
the noise.
Commissioner Bensoussan arrived at 6:46 p.m.
Commissioner S. Thomas pointed out that on page 4 of the Initial Study in the
Transportation/Circulation section that a) and c) were checked as 'potentially
significant unless mitigated'. Those should be checked as 'less than significant
impact'. Ms. Olivo-Gomez agreed that those were checked incorrectly.
MSC (S. Thomas/Diaz) to accept the Initial Study as adequate with
the recommended corrections as follows: on page 4 under
TRANSPORTATION/CIRCULATION, a) and c) should be checked
as 'less than significant impact'; on page 14 under NOISE, 1. "A 6-
foot hiqh sound attenuation wall.. ..". That the Mitigated Negative
Declaration be adopted with the following recommended revision:
on page 3 under NOISE, Exterior Noise Impacts, 1. "A 6-foot hiqh
sound attenuation wall. ...". Vote: (5-0-0-1) with Burrascano absent.
RCC Minutes - 3 - March 5, 2001
APPROVAL OF MINUTES (Cont'd)
Vice-Chair Bull requested that the minutes of December 4, 2000, January 22 and
February 5, 2001 be approved now that there was a quorum present from those
meetings.
Vice-Chair Bull indicated that, hearing no objections to the minutes of
December 4, 2000, they stand approved.
The following revisions were made to the January 22, 2001 minutes: Page 1, first
paragraph under NEW BUSINESS, delete (see attached list); page 3, under 2001
Governor's Historic Preservation Award, second paragraph, ".. ..developed the walk
of history photo pl3que along Third Avenue."
MS (S. Thomas/Diaz) to approve the January 22, 2001 minutes without
the 12 questions attached. Vote failed (3-2-0-1) with T. Thomas and
Bensoussan opposed and Burrascano absent.
MS (Bensoussan/T. Thomas) to amend the January 22, 2001 to include
the 12 questions and a summary of the answers given by Public Works
and Parks & Recreation. Vote failed (3-2-0-1) with S. Thomas and Bull
opposed and Burrascano absent.
The January 22,2001 minutes were not approved and will be filed.
Hearing no revisions or objections to the minutes of February 5, 2001,
Vice-Chair Bull declared that the minutes stand approved.
NEW BUSINESS (Cont'd)
2. Status of Code Enforcement
Ms. Sue Gray (Code Enforcement Manager) gave a PowerPoint presentation
regarding Code Enforcement history, current operations and potential
enhancements.
ENVIRONMENTAL REVIEW COORDINATOR COMMENTS: Ms. Marilyn Ponseggi
(Environmental Review Coordinator) indicated that Mr. Alex Bevil would be giving a
presentation at the March 19, 2001 meeting regarding the Coronado Branch Railway
Line. Mr. Chris Salomone (Community Development Director) will also be at that
meeting to bring the Commission up to date on the current status of the railway line.
CHAIR COMMENTS: None.
RCC Minutes - 4 - March 5, 2001
COMMISSIONER COMMENTS
Commissioner Bensoussan asked if Ms. Ponseggi had received any notice from
Planning staff about their writing up the Mills Act Ordinance? Ms. Ponseggi responded
in the negative. She has let Planning staff know that the Commission took formal action
to request that it be brought back to them. It will be brought back before it goes to the
Planning Commission and City Council.
Commissioner Bensoussan inquired if she could distribute material regarding the Mills
Act to the Commissioners for their review so they would be more informed and
knowledgeable when the item comes before them. Ms. Ponseggi was not sure what the
protocol was. She would have to double-check that.
ADJOURNMENT: Vice-Chair Bull adjourned the meeting at 8:29 p.m. to a regular
meeting on Monday, March 19, 2001, at 6:30 p.m. in the Mercy Building Conference
Room, 430 'F' Street, Chula Vista, CA.
Prepared by:
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Li oa Bond
Recording Secretary
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JERRY RINDONE
COUNCILMEMBER
February 7, 2001
Jack M. O'Lexey
1367 Chalcedony Street
San Diego, CA 92109-2125
Dear Mr. O'Lexey:
Thank you for your letter dated January 16, 2001 concerning the Coronado Branch
Line. I appreciate your comments and perspective on the issue of abandonment of
this old railway line.
The City has taken the position that the Coronado Branch line should be
abandoned in order to complete the long-planned bicycle path that will circle San
Diego Bay. The bicycle path has been completed through Coronado and into
Imperial Beach, but the section along Chula Vista's bayfront awaits the railway line
abandonment. You should also be aware that the Metropolitan Transportation
Development Board (MTDB) took formal action to abandon the line at their meeting
of August 12, 1999, and recently reaffirmed their decision. In addition, the San
Diego Unified Port District has also called for the line to be abandoned in order to
facilitate redevelopment of the B. F. Goodrich (formerly Rohr) campus along the
bayfront in Chula Vista.
Again, I appreciate your comments on this issue. Please let me know if you have
any other thoughts or concerns.
Sincerely, fbf2J
~,
cc: Sid Morris, Assistant City Manager
Chris Salomone, Community Development Director
H :\HO M E\CO M M DEV\Estes\Bayfront ~ Agency\0206olexeyreply.doc
276 FOURTH AVENUE. CHULA VISTA· CALIFORNIA 91910 . (6191691-5044 . FAX 1619: 4c6-5379
jrindone@ci.chula-visla.ca.us
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THE CITY OF SAN DIEGO
lIistorical Resources Board
To: All Owners of Historically Designated Properties
Subject: The Mills Act Property Tax Reduction
The City Council has approved a Council Policy which outlines guidelines and procedures for
obtaining a property tax reduction under the Mills Act fOT O\\l1erS of designated historic
properties. This Mills Act is a program of the State ofCaJifomia.
According to the County Assessor's Office, under the Mills Act, the City is able to offer property
tax reductions in the range of 40 to 70 percent in the majority of cases in which applications are
made. The property owner must be willing to commit to maintaining the historic property for at
least 10 years. However, the Mills Act may DQ! reduce the property tax ofa historic property that
has not had a change of ownership since March 1, 1975 (Prop 13).
To qualify, owners of designated historic buildings must agree to enter into a 10-year contract
with the City that is automatically renewed on an annual basis in order to meet the mandated
State and City requirements. For more details, please refer to the copy of Council Policy 700-46,
dated July 18, 1995, regarding the Mills Act which is incJuded with this letter.
Once the contract is signed, the City will conduct drive-by inspections on a periodic basis to
verify that contract conditions are being met. The contract can be terminated by the City if those
conditions are not met. An O\\l1er may terminate the contract by giving notice to the City and
waiting for the I O-year term to end. If the O\\l1er does not wait for the 10-year term to end,
penalties may be assessed.
If the property has code violations, the code violations wiH be handled under normal City
procedures. Correcting code violations is not a requirement of the Mills Act.
Generally, properties located in adopted Redevelopment Project areas have additional
requirements, except for owner-occupied, single-family homes (including properties that may
.' Planning and Development Review
".
,. 702 (Sheer, MS SA· San Diego, CA 97101.3864
DIVERS'" rei (619) 236-6479 far (619) 736-64/8
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All Owners of Historically Designated Properties
Page 2
have a second residential unit) which follow the same guidelines and procedures for properties
outside of adopted Redevelopment Project areas. The additional requirements are that the
property requires rehabilitation, that the owner agrees to rehabilitate the property in accordance
with a pro-forma approved by the Redevelopment Agency, that relief under the Mills Act is
necessary for the property to be maintained, and that the property owner has not received other
assistance from the RedeveJopment Agency for maintenance of the property. Owners of historic
properties in adopted Redevelopment Project areas should contact the Redevelopment Agency of
the City of San Diego at 236..6039, or the Centre City Development Corporation, the
Southeastern Economic Development Corporation, or the Mid-City D",velopment Corporation if
the property lies within their jurisdictions.
A pro-rated filing fee, based on $100 per $100,000 of the property's assessed value, will be
charged prior to the processing of the contract.
For more information, contact the Staff to the Historical Resources Board, by phone at
(6! 9) 235-5224, or by letter to the Ci~y Planning and Development Review Department, 202 C
Street. Fourth Floor. San Diego, California 92JOl.
If you already have a letter of interest on file, it is not necessary to contact the City.
Notice to all owners ofhistmica11y designated properties: If you wish to purchase a sign stating
that your property is historic, it is available through RC ~, 3558 Winnetka Drive, Bonita,
California 91902. Contact Rod Friant at (619) 472-0560.
I CI'7'YOF S"'N C!EGO, C411FORJIo,I¡A.
COUNCIL POLICY
SUOJE'i1ILLS ACT ."GREEMENTS FOR PRESERV}>.TION OF POLlCT 700-46
N..;MSER
I HISTORIC PROPERTY EFFEc:nvE 07/18/95
r- ~ATE
-
I BACKGROUND
I California state law authorizes cities to enter into contracts ("Mills
Act Agreements") \~i th the OWners of qualif led hlstor leal properties to ..-.
provide a property tax reduction for the use, nalntenance and
I restoration of historically designated properties. The minimum
requirements,for a Mills Act Ag"eement, as mandated by state law
include:
, , ~inimun contract tern of ten (10) yea.rs, autor.Jatically
-,
renewable on an annual basis, to be recorded against title to
I the property and running with the land.
2) O~ner shall maintain the regulated characteristics of
historical significance of the Historic Site in accordance
with the rules and re~ulations published by the Secretary of
the Interior.
I 3) Owner Dust allow reasonable periodic examination of the
Eistoric Site, if a request is made and by prior appointment,
by representatives of the County Assessor, State Department
¡ of Parks and Recreation and the State Board of Equalization.
I
4 ) Ci~y may cancel ~he agreement following a duly notice public
j
, hearing if it is deter~ined that the owner breached any
I
I ~andatory conditions of the Contract.
PUXPOSE
This policy is adopted to provide a monetary incentive to the owners of
historically designated properties in the forn of a property tax
. -. reduction for the maintenance, restoration and rehabilitation of
I historic properties within the City of San Diego. A properly recorded
Mills Act Ag~eement auto~atically triggers en alternative method for I
determining the assessed value of thE affected historic property, thus
I potentially resulting in significant property tax savings for the owner
of the historic property.
I POLICY
1 It is the policy of the City of San Dieeo to foster and encouraee the
I
I preservation, maintenance, rehabilitati~n and restoration of -
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¡,u!''''HILLS ACT AGREEMENTS FOR PRESERVATION OF PO"ey 700-46 ~
¡ HISTORIC PROPERTY >NY"'",
I EmeTOVE 07/18/'35
¡ OAn I
! I
.
¡ historically designated properties. It is recognized by the City that
: a ,eduction in property taxes afforded by the Mills Act'will serve as a
I key monetary incentive for citizens to acquire, maintain and restore
historic property within the City of San Diego. However, it is also
I recognized ~hat the revitalization goals of the Mills Act may overlap 'I _~
I and conflict with the neighborhood revitalization mission, goals,
I policies and programs of the Redevelop~ent Agency of the City of San I
II Diego. Beçause of the negative impact on.~ax incre1nent financing and I
other measures available to promote historic preservation through ,
I redevelopment, Hills Act Agreements shall be applied in rmdevelopAent I
I project and study are"5 as del inea ted be 1 0'''' . I
I U¡PLEMENTATION
1. Areas Outsiàe of Req~veloo~~nt Proiect ~.~~DQ_~tudV-brep-s
The City Manager or designee is authorized to ente~ into a Mills Act
Agreement with the owner of any historically designated property, upon
I application by the owner and s~bject to the follo~ing restrictions:
I AI The contract shall contain themlnimuD mandatory conditions I
required by state laH. "
I !
I B) The owner shall pay a graduated processing fee of $100 per
$100,000 of assessed value prorated to actual value, however
I in no event shall the processing fee excéed the èctual cost i
I of processing and recording the Agreacent. !
I C) A dr~ve by inspectio~ ·...ill be performed on ? per~odic basis I
I by CIty staff to verIfy that the structcre IS beIng I
maintained in weather tight condition. !
I
..~.. D) The Owner ~ust allow visibility of the exterior of the ¡
structure from the public right-ot-way. I
. 2. Areas Within RedeveloDment Pro~ect Areas and Studv Areas I
I The City Manager or designee is authorized to enter i~to a Mills Act '
Agreement with the owner of a historically designated property located
within a redevelopment project or study area, Upon application by the
I owner, subject to the above restrictions, and including: I
RedeveloDment Studv Areas I
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L _~~__._____~__.___ ______,
C.C·ltJ 111-151
I C!TY OF $AÞoI DIECO. C"ltFOR:o.;14
COUNCIL POLICY
.
!sU6JElMILLS ACT AGREEMENTS FOR PRESERVATION OF POI-IC" 700-46
HISTORIC PROPERTY < NUM5!.:t
I
EFFECTIVE 07/18/95
DATE
I
I Within a Redevelopment study Area Mills Act Agreements shall be
I permitted in conformance with this City Council Policy 700-46 and
State law requirements, until adoption of the redevelopment
project area. Within the Sherman Heights and Grant Hill Historic
I Districts" ho"!ever, should they become part of a redevelopment . .._~
I project area, Mills Act Agreements shall be implemented as in item
I 1 above.
¡
Redeve10crnent Proiect Areas
I
,
I ~ithin a redevelopment project area, with the exception of the
College Community Redevelopment Project Area, Mills Act Agreements
I shall be permitted as follows:
1. Owner-occupied single-family homes (includin3 properties
~hich may have a second residential unit) shall be eligible
for Mills Act Agreements, in confor~ance wi~h this City
Council Policy 700-46 and state law requirements.
2. All other properties shall be eligible for Hills Act i
I Agreerne:l':S, in conformance with this City Council Policy ~OD- I
~6 and State law requirements, on a case by case basis and I
I only when all of the following criteria are met: I
I i
,
I (l) The property requires rehabilitation J
¡
(2) The ONner agrees to rehabilitate the property in
I accordance with plans approved by the Agency
I
I (3) The ONner demonstrates through'a project proforma, which
is indepe~dently evaluated by the Agency, that a Mills Act
Agreement is necessary to achieve a financially feasible'
, I project, and the Agency concurs that a Mills Act Agreement is
41',... .
the apprc?riate form of public fin2ncial assistance.
I No Mill Act Agreene~t shall be implemented ~ithin the College Co~~unity I
,
, Redevelopment Project Area.
I The City Manager shall report on annual basis to the City Cauncil with I
respect to the number of Mills Act Agreements executed and the
I effectiveness of the program.
CROSS REFERENCE
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C IfY Of SAN DIEGO. C.....UfORNIA
COUNCIL POLICY
..
'UISJ'MILLS ACT AGREEMENTS FOR PRESERVATION OF POlICY 700-46
HISTORIC PROPERTY HUMaeR;
EFFECTI'o1E 07/18/95
DATE
San Diego Municipal Code Section 26.6201. et seg.
Government Code Sections 50280, et seg.
HISTORY: .--
I Adopted by Resolution R-285410
02/27/95
Amended by Resol~tion R-286051 07/18/95
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SEP.28.1999 8:Ø1AM NO. 257 P.12/24
Redwood City Mills Act Information Package
(Courtesy of the City of Redwood City)
:
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11
SEP.28.1999 8:Øl~ NO. 257 P.13/24 ~
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WHAT IS THE MILLS ACT?
.
· ADOPI10N IN 1972. AMENDED IN 1984.
· PROVIDES FOR A REDUCTION IN PROPER'IY TAXES
I FOR QUALIFIED HISTORIC PROPERTIES.
· REPRESENTS A CURRENT USE .>\SSESSMENT FOR
PROPERTIES, KNOWN AS A "CO~"TRACT ASSESSMENT".
· PROPERTY OWNERS MUST ENTER !NTO PRESERVATION
. CONTRACTS wrrn THE CITY IN EXCHAl'\J'GE FOR
PROPER1Y TAX RELIEF.
. SOURCE OF AtlI'HORITY:
. CONS11TUT!ONAL AUTHORITY TO PROVIDE
PROPER1Y TAX REUEF FOR HISTORIC
PROPERTIES (eA. CONSTlTUTIONAL ART. XIn-8)
- HISTORIC PROPERTY CONTRACTS (CA. GOvr.
CODE--50280-S0289J
- REASSESSMENT OF PROPER1Y St.JBJECT TO A
MILLS ACT CONTRACT (CA. REVENUE &. TAX
. CODE--439-439.4)
. COUNIY ASSESSOR DIRECTED BY STATE !AWTO
ADJusr VALUE OF PROPERTY DO"W'NWARD TO REFLEcr
RESTRIcnONS PlACED ON PROPER1Y RAniER THAN
MARKET VALUE. I
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12
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8:01AM NO. 257 P.14/24
SEP.28.1999
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BENEFITS OF
MILLS ACT AGREEMENT
· REDUC!10N IN PROPERTY TAX.
I INCEASES LIKELIHOOD OF PRESERVATION.
· ASSURES MECHANISM TO AVOID DETERIORATION.
I PROVIDES MECHANISM FOR REHABILITATION.
· CAN ENCOURAGE SENSITIVE HOME BuYERs TO PURCHASE
DESIGNATED HISTORIC STRUCI1JR.ES.
· MEETS mE GOALS OF THE HISTORIC LANDMARKS
ELEMENT OF THE 1990 GENERAL PLAN AND HISTORIC
PRESERVATION ORDINANCE.
· AFFECTS OWNER-OCCUPIED STRUCTURES AS mu.AS
INCOME.PRODUCING PROPEJITIES.
· VISUALLY IMPROVES THE PHYSICAL ENVIRONMENT OF
THE COMMT.JNITY AND PROVIDES A FOCUS ON mSTORlC
LANDMARKS.
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T AX TIPS
Historical Properties I Mills Act
An Historic designation can provide a property tax reduction. San Diego is a
relatively young town, but many residents are beginning to take notice of one of our
most valuable resources; our historic sites and houses. The Mills Act named for San
Diegan James Mills, a former State Senator, provides an important monetary
incentive designed to encourage the preservation, maintenance and restoration of
designated historic properties. If you have questions on the calculation of the
assessed value please call the Assessor's Office at (858) 505-6011.
Q. What is the Mills Act?
A. The Mills Act provides that property that is subject to a historical property
contract be valued using the rental income that could be expected from that
property rather than using comparable sales to establish the assessed value. This
- - generally results in a much lower assessment if the property has been recently
purchased.
Q. How does my property qualify for the Mills Act?
A. It must meet qualifying criteria such as; significant architecture, association with
an historically significant event or person, or location in a neighborhood (such as
the Gaslamp Quarter). Once designated as a historic site, the owner can then
enter into a voluntary contract with that city.
Q. How long is the contract and is it cancelled if I seil the property?
A. The term of the contract is ten years, however it is automatically extended
unless the property owner cancels the contract. The new owner would receive the
full benefit of the contract because the contract goes with the property.
Q. Is the property owner required to open the property to the public?
A. No, the law was revised in 1985 when new legislation relaxed the rules to
encourage the preservation of historic properties. Prior to that time any property
under contract had to be open to the pubiic for tours etc. After the revision In 1985,
many additional properties have been placed under contract,
Q. Do all historical properties in San Diego County qualify for the Mills Act?
A. No, only the City of San Diego. the City of l.a Mesa and the City of Escondido
have enacted ordinances to grant a Mills Act exclusion. The City of Coronado is
currently in process of passing an ordinance for their Historical properties.
Q. How many propertîes are benefiting under the Mills Act in San Diego
County?
A. Currently approximately 150 properties under contact with the various cities
that receive this property tax benefit.
Q. What is the Assessor's role in the process?
A. Although the individual cities actually place the property under an historical
contract. the Assessor's Office must determine the actual assessed value based on
a formula under State law. using t'le income that could be generated from the
property.
Q. What kind of savings can I expect on my property tax bill?
A. Typically property owners can expect a 20% to 60% savings on their property
taxes. Under State law, the lesser of 1) the current market value, 2) the Proposition
13 value or 3) the restricted value based on the rents will be used to calculate your
property taxes.
Q. Since I have owned my property for many years and already have a very
low assessment, it is worthwhile to apply for the Mills Act?
A. It is possible that the Proposition 13 value may actually be lower than the
restricted value, and the property would receIve no immediate benefIt. Some
owners who would receive no benefit still appiy for the Mills Act. It can be a selling
point to a potential buyer because the property would not be reappraised at its full
market value upon sale if the property was already under an historical contract.
Q. Who should I contact if I want to place my property under the Mills Act?
A. Each city has their own ordinance and different criteria to determine if a
particular property qualifies. Please contact the following people to get further
information:
QitL Q..~ Phone Number
San Diego Angeles Leira (619) 235-5224
La Mesa David Witt (619) 667-1177
Escondido Abdul Farrah (760) 839-4555
Coronado Ann Mc Caul! (619) 522-7326
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,HISTORICAL PROPERTIES I
I
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¡PARCEL NUMBER ¡ 539-341-06 ! 09/28/99 IDA TE ,
,
! !"Y" OR UN" ¡
[SINGLE FAM OWNER OCC:n ,
, "
,
VALUATION YEAR 100, HISTORIC RISK FACTOR: 2.000%1
,PROP 13 BASE VALUE 467,000 . TAX RATE 1.000%i
i BAS E YEAR 991 'INTEREST RÃTE 7.500%,
¡REMAINING LIFE SLOG 201 'RECAPTURE RATE 2.500%¡
:SLOG RATIO 50.00%1 --- ,----- I
I
iTAX RATE ! 1.00000%1 TOTAL 13.000%1
:S B E MORTGAGE RATE 7.50%1
¡ . PROP 13 Value i 476,340 i
¡CURRENT MKT VALUE 475,000 i :CURRENT MARKET 475,000 ¡
I RESTRICTED VALUE -- 170,585 ¡
¡
--
I I i ! i
I
i ECONOMIC RENTíMONTH i $2,200 LA.NO 85,292 I
: PERCENT EXPENCES 16.00% ! IMPROVMENT 85,292 I
¡TOTAL 170,584 ¡
! ===================== '========== ==:_=-=_E===============:::=~========= I
NON OvJN~ o CoG u ?¡..t
I ,
I I - ì
, i I
I 'HISTORICAL PROPERTIES I I
! I
,
¡PARCEL NUMBER ¡ 539-341-06 ¡ , 09/28/991 DATE ,
I ;
,
!~ry" OR "Nil i ! !
¡SINGLE FAM OWNER OCC:y
, ! i I
I ì . ,
V ALUA TION YEAR 100' ¡HISTORIC RISK FACTORI 4.000%'
¡PROP 13 eASE VALUE : 467,000 TAX RATE I 1.000%
BASE YEAR , 99 INTEREST RATE I 7.500%
REMAINING LIFE BLOG I 201 : RECAPTURE RATE , 2.500%1
I ,
,SLOG RATIO I 50.00%1 , 1
,
ITAX RATE i 1.00000%f_ ¡TOTAL "' 15.000%
I
,S S E MORTGAGE RATE , I !
7.50%
~RRENT MKT VALUE i - : PROP 13 Value I 476,340
. : CURRENT MARKET 475,000
, 475,000 ! I
i . RESTRICTED VALUE I 147,840
! I
,
! ECONOMIC RENT/MONTH i $2,200 : LAND 73,920 I
. PERCENT EXPENCES 16.00%, : IMPROIJMENT 73,920 i
,TOTAL -
147,840
.-.-.
===================== ========== ======= ==================== =========
OWN ;;1<. OC.c:.uPlro
I ~ ~
· -- t----+-
í I I
¡ ¡HISTORICAL PROPERTIES
' I
;PARCEL NUMBER 1539-341-06 I i 09/29/99 DATE
, ¡"Y" OR "N"! !
!SINGLE FAM OWNER OCC,Y . __ ¡
! . : : I
i ,
¡VALUATION YEAR 1001 ,HISTORIC RISK FACTOR 4.000%1
,PROP 13 SASE VALUE ,467,OOOJ ITAX RATE 1.000%1
¡SASE YEAR I 991 ¡INTEREST RATE 7.500%
¡REMAINING LJFE SLOG I 101 I RECAPTURE RATE 6.000%
· SLOG RATIO : 60.00%1.. I -_
I TAX RATE '1.00000%1 'TOTAL 18.500%
' I
is B E MORTGAGE RATE, 7.50%: : I
I I i iPROP 13 Value 476,340 I
rcURRENT MKT VA.LUE I 475,000 I !CURRENT MARKET 475,000 I
· ! - i I RESTRICTED VALUE 119,870 I
iECONõMlC RENT/MONTHi $2,2ÒO I 'LAND 47.9481
PERCENT EXPENCES i 16.00%1 :~~~~VMENT 1;~:~;~
I _ ,_ __, _ __ I __ ____ _ __ __ __ _ _
I ---=-=------- --- ,- - -- - - _ _ ____
\0 YR.. R¿"",..·.....'N... I.-I·!'-ë - c..oi.. -r:.N --:r..""pR.ove;,..,6W~ O,..¡,.)~ oe,c."P'-.,.o
¡ ¡ ! I
I HISTORICAL PROPERTIES I
PARCEL NUMBER ,539-341-06 ~ i 09/29/99 DATE ¡
d"Y" OR "N" I
SINGLE FAM OWNER OC n: I
I I I
IVALUATION YEAR I 1001 'HISTORIC RISK FACTOR 2.000%
PROP 13.BASE VALUE 467,000 I TAX RATE 1.000%
'BASE YEAR 99 ¡INTEREST RATE 7.500%
REMAINING LIFE BLDG 40 I RECAPTURE RATE 0.625%
SLOG RATIO 25.00% ¡
TAX RATE 1.00000% TOTAL 11.125%
S B E MORTGAGE RATE 7.50%
¡ J ,PROP 13 Value 476,340
CURRENT MKT VALUE '475,000 ¡CURRENT MARKET 475,000
I I RESTRICTED VALUE 199,335
ECONOMIC RENT/MONTH I $2.200 I ! LAND 149,501 i
I PERCENT EXPENCES I 16.00"1.1 ! IMPROVMENT 49,833 I
. I I : TOTAL 199,334
i-==--=-==-=--=--=--== i=-=-=--=-=i--=~===i==================== =========
"f0 y~ R¡¡II'\¡\\~(; LIP'<=,- ~S,. T>0 '"T......\>IlOù€:""~N s
STATE OF CALlFORNIA- THE RESOURCES AGEN GRAY DAVIS, Governor
OFFICE OF HISTORIC PRESERVAnON Q
DEPARTMENT OF PARKS AND RECREATION
P.o. BOX 942896
SACRAMENTO, CA 94296-0001
(916)653.æ24 Fax: (916)653-9824
calshpo@ohp.parks.ca.gov
California Office of Historic Preservation
Technical Assistance Series 1#12
Mills Act Property Tax Abatement Program
The Mills Act is a state sponsored legislation granting local governments the authority
to directly participate in an historic preservation program. More importantly, the Mills
Act is a self-directed, economic incentive program designed to provide private property
owners the opportunity to actively participate in the restoration of their properties while
receiving property tax relief.
This package of information contains:
An information sheet on the Mills Act program
A list of cities and counties participating in the Mills Act program
Copies of the California Government Code and the Revenue and Taxation Code on
the Mills Act
Hard copies of this handout (available through the Office of Historic Preservation) also
include:
An example of a property tax assessment of an historic property in Sacramento
County illustrating the comparison between the standard calculation of a property
tax assessment with the Mills Act projection
The Mills Act information package from Redwood City
Articles on the Mills Act program
Should you require additional information on the Mills Act, please contact Eugene
Itogawa in the Office of Historic Preservation, PO Box 942896, Sacramento CA 94296-
0001, (916) 653-8936, gitog@ohp.parks.ca.gov.
1 10/28/99
Introduction
Economic incentives contribute to the preservation of residential neighborhoods and
the revitalization of downtown commercial districts. The Mills Act is the single most
important economic incentive program available in California for use by private property
owners of qualified historic buildings. Owner-occupied single family residences and
income-producing commercial properties may qualify for the Mills Act program.
Property owners of historic buildings may qualify for property tax relief if they pledge to
rehabilitate and maintain the historical and architectural character of their properties for
at least a ten-year period. Mills Act participants may realize a property tax savings of
approximately 50% each year for newly improved or purchased older properties.
County Assessors are required to calculate the assessed value of the property tax
savings for Mills Act properties on the capitalization of income method rather than on
market value.
The Mills Act is a permissive program subject to approval and adoption by city and
county governments. California's four largest cities (Los Angeles, San Diego, San
Francisco, and San Jose) have instituted Mills Act programs. The Mills Act provides
local governments the flexibility to design preservation programs to accommodate
specific community needs and priorities for rehabilitating entire neighborhoods,
encouraging seismic safety programs, contributing to affordable housing, promoting
heritage tourism, or fostering pride of ownership.
A formal agreement, generally known as a Mills Act contract, is executed between the
local government and the property owner for a minimum ten-year term. Contracts are
automatically renewed each year and are transferred to new owners when the property
is sold. Property owners agree to protect, preserve, and maintain the property in
accordance with specific historic preservation standards and conditions identified in the
contract. Periodic inspections of the property by city or county officials ensure proper
maintenance of the property. Local authorities may impose penalties for breach of
contract or failure to protect the historic property. The contract is binding to all owners
during the contract period.
A qualified historic property is a property listed on any official federal, state, county, or
city register, including the National Register of Historic Places, the California Register
of Historical Resources, California Historical Landmarks, State Points of Historical
Interest, local landmarks, and local survey listings.
The Office of Historic Preservation maintains a current list of cities and counties that
have adopted the Mills Act and copies of successful Mills Act ordinances, resolutions,
and contract agreements.
2 10/28/99
Communities Participating in Mills Act Program
#of Certified Local
County/City Contracts Ordinance? Government?
Alameda County
Berkeley 1 Yes No
Contra Costa County
Danville 4 Yes Yes
Orinda (pending) No
Fresno County
Fresno (pending) Yes
Los Angeles County
Glendale 0 Yes Yes
Glendora 5 Yes No
La Verne 4 No No
Long Beach 7 Yes Yes
Los Angeles (City) 30 Yes No
Los Angeles (County) 2 No
Monrovia 23 Yes No
Norwalk (pending) No
Pasadena (pending) Yes
Redondo Beach 27 Yes Yes
Santa Monica 0 Yes Yes
Sierra Madre 14 Yes No
West Hollywood 48 Yes Yes
Whittier 1 Yes No
Marin County
Belvedere 1 Yes No
Larkspur 1 Yes No
Monterey County
Monterey (City) 0 Yes Yes
Monterey (County) (pending) Yes
Napa County
St. Helena 0 Yes No
3 10/28/99
#of Certified Local
County/City Contracts Ordinance? Government?
Orange County
Anaheim (pending) 1 No
Brea (pending) No
Laguna Beach 4 Yes No
Orange (City) 10 Yes No
San Clemente 12 Yes Yes
San Juan Capistrano 1 No
Santa Ana 0 Yes No
Tustin 0 Yes Yes
Riverside County
Corona 1 Yes No
Palm Springs 1 Yes No
Sacramento County
Galt (pending) No
Sacramento (City) 2 Yes Yes
San Bernardino County
Colton 12 Yes Pending
Highland 1 No Yes
Ontario 1 No No
Rancho Cucamonga 10 Yes No
San Bernardino (City) 1 Yes No
San Diego County
Escondido 25 Yes Yes
La Mesa 7 Yes No
Poway (pending) No
San Diego (City) 62 Yes Yes
San Francisco County
San Francisco (City/County) 1 Yes Yes
San Luis Obispo County
Paso Robles (pending) No
San Luis Obispo (City) 15 Yes No
San Mateo County
Redwood City 5 Yes Yes
San Mateo (City) 1 Yes No
4 10/28/99
#of Certified Local
County/City Contracts Ordinance? Government?
Santa Clara County
Los Altos 1 Yes Yes
Morgan Hill 1 Yes No
Palo Alto 2 Yes Yes
San Jose 3 Yes Yes
Sunnyvale 3 No Yes
Solano County
Benicia 2 Yes No
Vallejo 2 Yes Yes
Stanislaus County
Modesto 11 Yes No
Newman (pending) No
Tuolumne County
Soulsbyville (Unincorporated) 1 Yes Yes
Tuttletown (Unincorporated) 1 Yes Yes
Ventura County
Ojai 1 Yes No
Ventura (County) 1 Yes Yes
5 10128/99
California State Codes Relating to Mills Act Program
California Government Code, Article 12, Sections 50280 - 50290
50280. Restriction of property use.
Upon the application of an owner or the agent of an owner of any qualified historical
property, as defined in Section 50280.1, the legislative body of a city, county, or city
and county may contract with the owner or agent to restrict the use ofthe property in a
manner which the legislative body deems reasonable to carry out the purposes of this
article and of Article 1.9 (commencing with Section 439) of Chapter 3 of Part 2 of
Division 1 of the Revenue and Taxation Code. The contract shall meet the
requirements of Sections 50281 and 50282.
50280.1. Qualified historic property.
"Qualified historical property" for purposes of this article, means privately owned
property which is not exempt from property taxation and which meets either of the
following:
(a) Listed in the National Register of Historic Places or located in a registered historic
district, as defined in Section 1.191-2(b) of Title 26 ofthe Code of Federal Regulations.
(b) Listed in any state, city, county, or city and county official register of historical or
architecturally significant sites, places, or landmarks.
50281. Required contract provision.
Any contract entered into under this article shall contain the following provisions:
(a) The term of the contract shall be for a minimum period of 10 years.
(b) Where applicable, the contract shall provide the following:
(1) For the preservation of the qualified historical property and, when necessary, to
restore and rehabilitate the property to conform to the rules and regulations of the
Office of Historic Preservation of the Department of Parks and Recreation, the United
States Secretary of the Interior's Standards for Rehabilitation, and the State Historical
Building Code.
(2) For the periodic examinations of the interior and exterior of the premises by the
assessor, the Department of Parks and Recreation, and the State Board of Equalization
as may be necessary to determine the owner's compliance with the contract.
(3) For it to be binding upon, and inure to the benefit of, all successors in interest of
the owner. A successor in interest shall have the same rights and obligations under the
contract as the original owner who entered into the contract.
(c) The owner or agent of an owner shall provide written notice of the contract to the
Office of Historic Preservation within six months of entering into the contract.
50281.1. Fees.
The legislative body entering into a contract described in this article may require that
the property owner, as a condition to entering into the contract, pay a fee not to exceed
the reasonable cost of administering this program.
50282. Renewal.
(a) Each contract shall provide that on the anniversary date of the contract or such
other annual date as is specified in the contract, a year shall be added automatically to
the initial term of the contract unless notice of non renewal is given as provided in this
6 10/28/99
section. If the property owner or the legislative body desires in any year not to renew
the contract, that party shall serve written notice of non renewal of the contract on the
other party in advance of the annual renewal date of the contract. Unless the notice is
served by the owner at least 90 days prior to the renewal date or by the legislative body
at least 60 days prior to the renewal date, one year shall automatically be added to the
term of the contract.
(b) Upon receipt by the owner of a notice from the legislative body of non renewal, the
owner may make a written protest of the notice of nonrenewal. The legislative body
may, at any time prior to the renewal date, withdraw the notice of non renewal.
(c) If the legislative body or the owner serves notice of intent in any year not to renew
the contract, the existing contract shall remain in effect for the balance of the period
remaining since the original execution or the last renewal of the contract, as the case
may be.
(d) The owner shall furnish the legislative body with any information the legislative
body shall require in order to enable it to determine the eligibility of the property
involved.
(e) No later than 20 days after a city or county enters into a contract with an owner
pursuant to this article, the clerk of the legislative body shall record with the county
recorder a copy of the contract, which shall describe the property subject thereto. From
and after the time of the recordation, this contract shall impart a notice thereof to all
persons as is afforded by the recording laws of this state.
50284. Cancellation.
The legislative body may cancel a contract if it determines that the owner has breached
any of the conditions of the contract provided for in this article or has allowed the
property to deteriorate to the point that it no longer meets the standards for a qualified
historical property. The legislative body may also cancel a contract if it determines that
the owner has failed to restore or rehabilitate the property in the manner specified in
the contract.
50285. Consultation with state commission.
No contract shall be canceled under Section 50284 until after the legislative body has
given notice of, and has held, a public hearing on the matter. Notice of the hearing
shall be mailed to the last known address of each owner of property within the historic
zone and shall be published pursuant to Section 6061.
50286. Cancellation.
(a) If a contract is canceled under Section 50284, the owner shall pay a cancellation
fee equal to 121/2 percent of the current fair market value of the property, as
determined by the county assessor as though the property were free of the contractual
restriction.
(b) The cancellation fee shall be paid to the county auditor, at the time and in the
manner that the county auditor shall prescribe, and shall be allocated by the county
auditor to each jurisdiction in the tax rate area in which the property is located in the
same manner as the auditor allocates the annual tax increment in that tax rate area in
that fiscal year.
(c) Notwithstanding any other provision of law, revenue received by a school district
pursuant to this section shall be considered property tax revenue for the purposes of
Section 42238 of the Education Code, and revenue received by a county
7 10/28/99
superintendent of schools pursuant to this section shall be considered property tax
revenue for the purposes of Article 3 (commencing with Section 2550) of Chapter 12 of
Part 2 of Division 1 of Title 1 of the Education Code.
50287. Action to enforce contract.
As an alternative to cancellation of the contract for breach of any condition, the county,
city, or any landowner may bring any action in court necessary to enforce a contract
including, but not limited to, an action to enforce the contract by specific performance
or injunction.
50288. Eminent domain.
In the event that property subject to contract under this article is acquired in whole or in
part by eminent domain or other acquisition by any entity authorized to exercise the
power of eminent domain, and the acquisition is determined by the legislative body to
frustrate the purpose of the contract, such contract shall be canceled and no fee shall
be imposed under Section 50286. Such contract shall be deemed null and void for all
purposes of determining the value of the property so acquired.
50289. Annexation by city.
In the event that property restricted by a contract with a county under this article is
annexed to a city, the city shall succeed to all rights, duties, and powers of the county
under such contract.
50290. Consultation with state commission.
Local agencies and owners of qualified historical properties may consult with the State
Historical Resources Commission for its advice and counsel on matters relevant to
historical property contracts.
California Revenue and Taxation Code, Article 1.9, Sections 439 - 439.4
439. Historical Property Restrictions; enforceably restricted property.
For the purposes of this article and within the meaning of Section 8 of Article XIII of the
Constitution, property is "enforceably restricted" if it is subject to an historical property
contract executed pursuant to Article 12 (commencing with Section 50280) of Chapter 1
of Part -1 of Division 1 of Title 5 of the Government Code.
439.1. Historical Property; definitions.
For purposes of this article "restricted historical property" means qualified historical
property, as defined in Section 50280.1 of the Government Code, that is subject to a
historical property contract executed pursuant to Article 12 (commencing with Section
50280) of Chapter 1 of Part 1 of Division 1 of Title 5 of the Government Code. For
purposes of this section, "qualified historical property" includes qualified historical
improvements and any land on which the qualified historical improvements are situated,
as specified in the historical property contract. If the historical property contract does
not specify the land that is to be included, "qualified historical property" includes only
that area of reasonable size that is used as a site for the historical improvements.
439.2. Historical Property; valuation.
8 10/28199
When valuing enforceably restricted historical property, the county assessor shall not
consider sales data on similar property, whether or not enforceably restricted, and shall
value that restricted historical property by the capitalization of income method in the
following manner:
(a) The annual income to be capitalized shall be determined as follows:
(1) Where sufficient rental information is available, the income shall be the fair rent
that can be imputed to the restricted historical property being valued based upon rent
actually received for the property by the owner and upon typical rentals received in the
area for similar property in similar use where the owner pays the property tax. When
the restricted historical property being valued is actually encumbered by a lease, any
cash rent or its equivalent considered in determining the fair rent of the property shall
be the amount for which the property would be expected to rent were the rental
payment to be renegotiated in the light of current conditions, including applicable
provisions under which the property is enforceably restricted.
(2) Where sufficient rental information is not available, the income shall be that which
the restricted historical property being valued reasonably can be expected to yield
under prudent management and subject to applicable provisions under which the
property is enforceably restricted.
(3) If the parties to an instrument that enforceably restricts the property stipulate
therein an amount that constitutes the minimum annual income to be capitalized, then
the income to be capitalized shall not be less than the amount so stipulated. For
purposes of this section, income shall be determined in accordance with rules and
regulations issued by the board and with this section and shall be the difference
between revenue and expenditures. Revenue shall be the amount of money or
money's worth, including any cash rent or its equivalent, that the property can be
expected to yield to an owner-operator annually on the average from any use of the
property permitted under the terms by which the property is enforceably restricted.
Expenditures shall be any outlay or average annual allocation of money or money's
worth that can be fairly charged against the revenue expected to be received during the
period used in computing the revenue. Those expenditures to be charged against
revenue shall be only those which are ordinary and necessary in the production and
maintenance of the revenue for that period. Expenditures shall not include depletion
charges, debt retirement, interest on funds invested in the property, property taxes,
corporation income taxes, or corporation franchise taxes based on income.
(b) The capitalization rate to be used in valuing owner-occupied single family
dwellings pursuant to this article shall not be derived from sales data and shall be the
sum of the following components:
(1) An interest component to be determined by the board and announced no later
than September 1 of the year preceding the assessment year and that was the yield
rate equal to the effective rate on conventional mortgages as determined by the
Federal Housing Finance Board, rounded to the nearest 1/4 percent.
(2) A historical property risk component of 4 percent.
(3) A component for property taxes that shall be a percentage equal to the estimated
total tax rate applicable to the property for the assessment year times the assessment
ratio.
(4) A component for amortization of the improvements that shall be a percentage
equivalent to the reciprocal of the remaining life.
9 10/28/99
(c) The capitalization rate to be used in valuing all other restricted historical property
pursuant to this article shall not be derived from sales data and shall be the sum of the
following components:
(1) An interest component to be determined by the board and announced no later
than September 1 of the year preceding the assessment year and that was the yield
rate equal to the effective rate on conventional mortgages as determined by the
Federal Housing Finance Board, rounded to the nearest 1/4 percent.
(2) A historical property risk component of 2 percent.
(3) A component for property taxes that shall be a percentage equal to the estimated
total tax rate applicable to the property for the assessment year times the assessment
ratio.
(4) A component for amortization of the improvements that shall be a percentage
equivalent to the reciprocal of the remaining life.
(d) Unless a party to an instrument that creates an enforceable restriction expressly
prohibits the valuation, the valuation resulting from the capitalization of income method
described in this section shall not exceed the lesser of either the valuation that would
have resulted by calculation under Section 110, or the valuation that would have
resulted by calculation under Section 110.1, as though the property was not subject to
an enforceable restriction in the base year.
(e) The value of the restricted historical property shall be the quotient of the income
determined as provided in subdivision (a) divided by the capitalization rate determined
as provided in subdivision (b) or (c).
(f) The ratio prescribed in Section 401 shall be applied to the value of the property
determined in subdivision (d) to obtain its assessed value.
439.3. Historical Property; notice of non renewal.
Notwithstanding any provision of Section 439.2 to the contrary, if either the county or
city or the owner of restricted historical property subject to contract has served notice of
non renewal as provided in Section 50282 of the Government Code, the county
assessor shall value that restricted historical property as provided in this section.
(a) Following the hearing conducted pursuant to Section 50285 of the Government
Code, subdivision (b) shall apply until the termination ofthe period for which the
restricted historical property is enforceably restricted.
(b) The board or assessor in each year until the termination of the period for which
the property is enforceably restricted shall do all of the following:
(1) Determine the full cash value of the property pursuant to Section 110.1. If the
property is not subject to Section 110.1 when the restriction expires, the value shall be
determined pursuant to Section 110 as if the property were free of contractual
restriction. If the property will be subject to a use for which this chapter provides a
special restricted assessment, the value of the property shall be determined as if it
were subject to the new restriction.
(2) Determine the value of the property by the capitalization of income method as
provided in Section 439.2 and without regard to the fact that a notice of nonrenewal or
cancellation has occurred.
(3) Subtract the value determined in paragraph (2) of this subdivision by
capitalization of income from the full cash value determined in paragraph (1).
(4) Using the rate announced by the bQard pursuant to paragraph (1) of subdivision
(b) of Section 439.2, discount the amount obtained in paragraph (3) for the number of
10 10/28199
years remaining until the termination of the period for which the property is enforceably
restricted.
(5) Determine the value of the property by adding the value determined by the
capitalization of income method as provided in paragraph (2) and the value obtained in
paragraph (4).
(6) Apply the ratios prescribed in Section 401 to the value of the property determined
in paragraph (5) to obtain its assessed value.
439.4. Historical Property; recordation.
No property shall be valued pursuant to this article unless an enforceable restriction
meeting the requirements of Section 439 is signed, accepted and recorded on or before
the lien date for the fiscal year in which the valuation would apply.
11 10/28/99