TITLE
Recommendation to request City Attorney to prepare ordinances to designate the properties located at 3305 East 1st Street, 645 West 11th Street, 622-628 East Anaheim Street, 953 Chestnut Avenue, 4004 Country Club Drive, 338 Junipero Avenue, 1400 Hellman Street, 830 Santiago Avenue, 151 St. Joseph Avenue and 822 Willow Street as Long Beach Historic Landmarks; and
Authorize City Manager, or designee, to execute Mills Act historic property contracts with property owners of 26 historic properties.
(Districts 1,2,3,5,6,7)
DISCUSSION
The Mills Act, enacted by State law in 1972, allows local governments to enter into tax abatement contracts with property owners of historic structures in exchange for a commitment to a historic preservation work program for the property. Property owners propose a work program as part of their contract and agree to restore, maintain, and preserve the property in accordance with specific historic preservation standards and conditions identified in the contract.
Entering into a Mills Act contract results in a property tax reassessment by the County Assessor, using the income-capitalization method, which may result in a 30 to 50 percent reduction in property tax, depending on the property. In exchange, applicants commit to a historic restoration work plan for the property. The City of Long Beach (City) Mills Act Program (Program) was originally established in 1993, under the authority of the State legislation. The Program was temporarily paused in 2021 and 2022 due to economic impacts related to the COVID-19 pandemic. Likely due to that pause, the 2023 process was more competitive than usual, with 44 percent more applications than the average of the previous eight years. As part of the review process, applications that included a comprehensive list of restoration work and included hiring local Long Beach businesses for the restoration work were prioritized for selection.
Mills Act contracts are executed between the Cityand the property owner for an initial term of ten years, with an annual automatic ten-year renewal, unless a request for non-renewal is made by either party. The City maintains various mechanisms to bring a property into compliance and can terminate the contract if the property owner breaches any of the contract terms. The Development Services Department (Department) conducts an inspection prior to the approval of Mills Act contracts for each eligible property for which applications are submitted. To assure properties are properly maintained and that rehabilitation is occurring in accordance with the executed Mills Act contracts, contract holders are required to report back on progress against their work program and by allowing for periodic site inspections by city staff.
Under the current Program requirements, a total of 22 Mills Act contracts can be awarded in a typical year across various building categories. Additionally, Mills Act contracts that are not awarded in previous years can be awarded in subsequent years to exceed the annual 22-contract limit in a given year; such was the case for the 2023 cycle. City staff conducted outreach to the public and invited property owners to apply for the 2023 Mills Act program cycle via multiple e-blasts and direct emails, as well as promoting the opportunity on the City’s social media platforms. Written notification for two in-person Mills Act workshops was mailed out to all property owners of local designated landmark properties and property owners of properties located in historic districts. The first workshop was held at the Jordan High School Auditorium on January 28, 2023, and there were over 175 people in attendance. The second workshop was held at the Long Beach Utilities Auditorium on February 18, 2023, and was attended by over 85 people.
To be eligible for the Program, properties must be located within a historic district or be designated as a historic landmark. Property owners may apply jointly for Mills Act and Historic Landmark designation during the Mills Act application period. To be eligible for Landmark designation, the property must meet at least one of the four criteria for landmark designation, which is outlined in Chapter 2.63.050 of the Long Beach Municipal Code (LBMC). The criteria are as follows:
A. It is associated with events that have made a significant contribution to the broad patterns of the City’s history; or
B. It is associated with the lives of persons significant in the City’s past; or
C. It embodies the distinctive characteristics of a type, period, or method of construction, or it represents the work of a master, or it possesses high artistic values; or,
D. It has yielded, or may be likely to yield, information important in pre-history or history.
The 2023 application process was very competitive, as a total of 43 Mills Act applications were received by the Department’s Planning Bureau for the 2023 application cycle. This represented a 44 percent increase in applications submitted in 2023 compared to the average in the past eight years.
While there are historic properties throughout all of Long Beach, the southern portion of the City retains high concentrations of older building stock and has the largest number of historic districts and historically designated properties, which explains why there is a larger number of applications in Council Districts 1 and 2. Council District 5 received the second highest concentration of applications submitted since California Heights Historic District is located in Council District 5. The Department has been working on two historic preservation initiatives that involve a broader study and recognition of various underrepresented communities in Long Beach history in order to help fill historical gaps within City historic preservation documents, such as the Historic Context Statement, which currently provides very limited information about communities of color. Building upon the Race and Suburbanization historic context statement approved in 2022, City staff are continuing efforts to expand the historic preservation program to increase recognition and preservation of community histories that are currently under-represented in the historic preservation program in Long Beach. The citywide historic context statement update effort is anticipated to be completed later this calendar year. At that time, City staff will be re-evaluating the design of the Mills Act program to identify ways of more equitably awarding Mills Act contracts in future years including with a focus on properties recognized through the context statement updates as well as other equity considerations.
On April 25, 2023the Cultural Heritage Commission recommended that the City Council designate a one-story commercial building located at 822 W. Willow Street as a Historic Landmark (Attachment A). On May 30, 2023, the Cultural Heritage Commission recommended that the City Council designate 3305 E. 1st Street and 4004 Country Club Drive, two residential properties as Historic Landmarks, and to approve 26 Mills Act contracts (Attachment B).
Previously, on August 13, 2018, the Cultural Heritage Commission recommended that the City Council designate seven new historic landmarks. Subsequently, on September 18, 2018, the City Council requested that the City Attorney prepare Ordinances to designate the properties, 645 W. 11th Street, 622-628 E. Anaheim Street, 953 Chestnut Avenue, 338 Junipero Avenue, 1400 E. Hellman Street, 830 Santiago Avenue, and 151 St. Joseph Avenue as Historic Landmarks (Attachment C). However, the ordinances for the seven properties were inadvertently not brought back to City Council for formal ordinance adoption in 2018. These seven properties are now being brought back for formal adoption as historic landmarks.
Ultimately a total of 10 landmark designations and 26 Mills Act contracts are recommended for approval as part of this action.
The three recommended landmark designation applications recommended by the Cultural Heritage Commission on May 30, 2023 are as follows:
1. 3305 E. 1st Street (District 2) - The single-family residential building was constructed by Miner Smith in 1924. The unique building was constructed in the Craftsman architecture style but has American Foursquare features. Original homeowners, Fredrick William (1875-1956) and Clara Rehbock (1878-1954) were prominent and active members of the Long Beach community and Long Beach business owners. Fred was an avid early aviator, and he owned a large hangar at the Long Beach Airport, the F.W. Rehbock Hangar, later renamed the “Lewis Aviation Service- F.W. Rehbock.” This property is eligible under Criteria B representing F. W. Rehbock’s contribution to aviation in Long Beach.
Miner Smith (1877-1965) was an artisan builder of bungalows in the 1920’s. He specialized in custom, high-quality bungalows and built over 23 houses in Long Beach. Advertised as “Bungalow Mansions”, Miner Smith was known for constructing his bungalows with elaborate architectural detail such as ornamental concrete porches and fireplaces that looked like logs or trees, and porte-cocheres over the driveway. This property is also eligible under Criteria C representing the work of a master builder, Miner Smith.
2. 4004 County Club Drive (District 5) - The home was built in 1959 in the International Architectural style designed by the Killingsworth, Brady and Smith architectural firm (KBS). The house was commissioned by Maurice (1908-1960) and Mary (1906-1977) Frank. Maurice and his brother Edward Frank were business owners of Frank Brothers Furniture, a retail store for midcentury modern furniture based in Long Beach. The Frank brothers were pioneers in the field of modern furniture in Long Beach and they closely collaborated with architects and designers and were closely associated with the midcentury modern movement in Long Beach. Maurice lived in the house with Mary until his death in 1960. Mary resided in the house until 1973 when she moved into a condominium on Junipero Avenue and 1st Street. This property is eligible under Criteria B for Maurice Frank’s contribution to mid-century modern furniture retail efforts.
Edward Killingsworth, Fellow of the American Institute of Architects (FAIA) (1917-2004) was a master architect and founding partner of the American Institute of Architects (AIA) award-winning KBS. Based in Long Beach, the architecture firm was responsible for some of the greatest mid-twentieth century structures in Southern California. This property is therefore also eligible for Criteria C representing the work of a master architect, Edward Killingsworth.
3. 822 Willow Street (District 7) - A one-story commercial building constructed in 1961 in the International Style designed by KBS. Edward Killingsworth, FAIA (1917-2004), was a master architect and founding partner of the AIA award-winning firm of KBS. As mentioned above, the firm was responsible for some of the greatest mid-twentieth century structures in Southern California. The historic building is associated with the life of a prominent figure in Long Beach history, Edward A. Killingsworth, FAIA. This building is an example of Killingsworth’s early commercial work and incorporates distinct characteristics of Killingsworth designs at the turn of the 1960s. This subject building reflects many of the features that came to define the architectural aesthetic associated with both Killingsworth as an individual and the architectural firm KBS on a very small-scale building and is unique because it was designed and built prior to KBS fully embracing larger commercial building commissions. The commercial building is eligible for Criteria B representing Edward Killingsworth’s contribution to mid-century modern movement in Long Beach and Criteria C representing the work of a master builder, Edward Killingsworth.
The seven recommended landmark designation applications recommended by the Cultural Heritage Commission in 2018 are as follows:
4. 645 W. 11th Street (District 1) - A two-story single-family residence built in 1911 in the Swiss-Chalet Craftsman architectural style. The building is significant as one the earliest buildings in the former Willmore City founded by William Willmore. The subject property’s significance also rises to the state level, as it is a strong example of this early settlement and the residences from this period in the state’s history, and clearly reflects a specific event, notably the move to seaside resorts that marked an important moment in Southern California history. The building retains character-defining features including the cross-gable roof, clapboard siding, porch, exposed rafter tails, projecting bays, cross bracing, and decorative cross detailing that identify the property as a Craftsman with Swiss Chalet influence.
5. 622-628 E. Anaheim Street (District 6) - A two-story commercial building constructed in 1929. The building sustained damages during the Long Beach earthquake and was rebuilt in the Art Deco architectural style. The building features a stucco façade with decorative vertical structural elements and a series of three ground-level storefronts. The building is eligible for designation because it has a strong association with the growth of Anaheim Street, as a commercial corridor and the expansion of the City due to increased mobility. The building is also eligible as a distinctive example of an Art Deco style building that carries many of the hallmark features of the architectural style including smooth, stuccoed exterior walls; low-relief ornamental details; geometrical decorative elements; a truncated false tower; and a general emphasis on verticality.
6. 953 Chestnut Avenue (District 1) - A two-story residence constructed in 1903 in the Queen Anne architectural style. The subject property is associated with early contractor and Long Beach builder Robert J. Craig. Craig’s extensive career in early Long Beach included numerous single-family residences, apartment buildings, and municipal buildings. The building retains character defining features such as an irregular roofline with boxed eaves, a side-gabled roof system with dormers and a turret. The turret features a bell-curved pyramidal roof. The second-floor walls feature pedimented dormers accented with coursed fish scale shingles. The exterior of the building is clad in horizontal shiplap with shiplap foundation skirting and a band board at the water line.
7. 338 Junipero Avenue (District 2) - A one-story single-family residence constructed in 1901 in the Craftsman architecture style. The building is associated with events that made a significant contribution to the city. The building possesses a significant value attributable to the development of the city. The property was part of the Carroll Park Tract, that incorporated oval-shaped subdivisions with winding roads, which is reflective of the City Beautiful Movement and Craftsman Bungalows. The property falls within the period of significance of the existing local historic district of 1898-1923.
8. 1400 Hellman Street (District 1) - A one-story single-family residence constructed in 1912 in the Craftsman architectural style. The property conveys the period of expansion of the City as a seaside resort destination, and the City Beautiful Movement, that took place in Long Beach, during its construction. The property was part of the Long Beach town-site, which is reflective of the City Beautiful Movement and Craftsman Bungalows, that helped shape the aesthetically-pleasing and picturesque character of Long Beach. The property falls within the Period of Significance of the existing local historic district of 1898-1923. The building is a high-style example of a Swiss Chalet Craftsman featuring exterior walls clad in wood clapboard siding, exposed rafter tails, procreative braces, and full-width porch.
9. 830 Santiago Avenue (District 3) - A two-story, single-family residence constructed in 1937 in the Colonial-Revival architectural style. The building is significant for its association with a period in history that involved the discovery of oil in Long Beach. The building was constructed in the 1930s, when little construction occurred, due to World War II preparations. The building is a unique example of the Colonial Revival style designed by Long Beach master architect Kenneth Wing.
10. 151 St. Joseph Avenue (District 3) - A two-story, single-family residence constructed in 1928 in the Eclectic Spanish Colonial Revival architectural style. The building is associated with events that have made significant contribution to the broad patterns of the City’s history. The building conveys the growth and expansion from central Long Beach into areas purchased by Henry Huntington. The building also conveys a particular historic architectural style as an Eclectic Spanish Colonial Revival.
The Cultural Heritage Commission recommended the following 26 Mills Act applications from the 2023 application cycle:
1. 2621 E. 1st Street (District 2) - A two-story single-family residence that features a steep cross gable roof system, clad in two different styles of wall cladding (wood shingle and horizontal wood siding) symmetrical façade and off centered covered porch with a gable roof. The building is intact and the workplan includes foundation replacement, restoration of the exterior wood shingle siding and windows, reroofing, roof eave repair, fascia repairs, and upgrades to electrical and plumbing.
2. 3305 E. 1st Street (District 2) - A two-story Foursquare with Craftsman details that feature scalloped wood shingle siding on the upper walls and horizontal wood planks on the lower walls, a hip roof system with a side facing gable roof system and original wood windows. The workplan includes exterior wood restoration, window restoration, restoration of the pedestals/columns and balustrades, replacing the Knob and Tube electrical wiring, removing and replacing galvanized plumbing, upgrading heating system, repainting the exterior building using appropriate color palette for the architecture style. The property exceeds the property valuation limit, so the property can only be considered in the exceptional architectural category. It must also be designated as a landmark in order to be eligible for the Mills Act.
3. 3333 E. 2nd Street (District 2) - A one-story Craftsman style that features a front facing gable roof system with exposed roof rafters and beams, horizontal wood siding, a wide covered porch with square columns and wood windows. The building is intact and the workplan includes foundation seismic retrofit and foundation repairs due to water damage, restoring/repairing porch columns, reroofing, restoring/repairing exterior siding, repainting using appropriate Craftsman colors, replacing non-period windows with wood windows, repairing 17 double hung wood windows, and improving onsite drainage to address water intrusion into the building.
4. 2553 E. 3rd Street (District 2) - A two-story airplane style Craftsman that features front facing gable roof systems with wide overhanding eaves and exposed rafter tails and beams, horizontal exterior wood siding and wood windows. The building is intact, and the work plan includes foundation repairs, reroofing of the house and garage, restoration of the porch and brick columns, restoring/repairing of 23 wood windows on the house, restoring/repairing four doors, removing the artificial turf and concrete floor repair, restoration of exterior siding and repainting with Craftsman colors, repairing/restoring the garage, installation of a new concrete driveway and removal of chain link fencing.
5. 347 W. 7th Street (District 1) - A two-story Queen Anne that features various roof lines and wide overhanging roof eaves, horizontal exterior wood siding and decorative scalloped shingles, decorative wood windows and covered porch with decorative support columns. The building is intact, and the work plan includes installation of a new foundation, removal of the non-original red bricks installed in front of the existing cinder block foundation, around the porch columns and along the walkways and porch floor, window restoration/repair, exterior siding restoration and repainting, plumbing system upgrades, removal of all chain link fencing and landscape improvements. The improvements will protect the building’s important features as well as allow the building to be visible from the right of way.
6. 2740 E. Broadway (District 2) - The Houser Building - A three-story mixed-use building designed in Italian Renaissance style with Spanish Baroque decorative accents. The building is intact, and the work plan includes front facade improvements which include Terracotta cleaning/restoration, brick façade restoration/cleaning, decorative wrought iron restoration (cleaning and painting), restoration/repair of the red clay tile roof on the tower, upgrade plumbing and electrical systems. Painting and resurfacing all metal on the roof, flashings, spouts, removing non-original windows and installing period windows and restoring all original wood windows. The improvements will protect the building’s important features.
7. 324-328 Carroll Park West (District 2) -An interior lot featuring a two-story Spanish Colonial duplex and a detached single-story Craftsman Bungalow. The Spanish Colonial work plan includes foundation replacement and stucco wall restoration, restoration of the wood beams and roof eaves, restoration of 17 wood windows, reroofing, electrical and plumbing system upgrades and repainting. The Bungalow’s 24 wood windows will be repaired/restored.
8. 2324 Carroll Park South (District 2) - A two-story Queen Anne that features a cross gable roof system, horizontal wood planks on the lower lever and scalloped wood singles on the upper walls and wood windows. The building is intact and the workplan includes a foundation replacement and seismic retrofit, exterior siding restoration, repainting in appropriate Queen Anne exterior colors, restoration of the rear covered porch and deck above, garage reroof and installation of new period appropriate garage doors.
9. 3556 California Avenue (District 5) - A one-story Spanish Colonial Revival that features two roof systems - a front facing gable roof with red clay tiles and a flat roof, wood windows, and a small courtyard. The building is intact, and the work plan includes foundation seismic retrofit, reroof, window restoration, replacing non-original windows and installing wood windows, restoration of the exterior stucco and repainting of the house and garage.
10. 1146 Cedar Avenue (District 1) - A two-story Craftsman that features cross gable roof systems, exposed rafter tails and beams, exterior shingle siding and wood windows and a modest rear dwelling unit. The rear unit features a flat roof, horizontal wood siding and wood windows. Both buildings are intact and the workplan includes installation of a new foundation, restoration of the porch and pergola, restoration of the exterior wood shingles, rafter tails, and eaves on both dwellings, restoration of the original front door, and upgrading the electrical and plumbing systems.
11. 3628 Cerritos Avenue (District 5) - A one-story Spanish Colonial Revival that features a front facing gable roof with red clay roof tiles, and a large chimney flanked by wood windows. The building is intact and the workplan includes foundation repairs, restoration of exterior stucco, window restoration, restoration of the porch and chimney, repainting and restoration/repairs to the garage.
12. 334 Colorado Place (District 2) - A one-story Craftsman that features a low sloping front facing gable roof, large wood windows flanking the centered entry door and a wide covered porch supported by brick columns. The building is intact, and the workplan includes foundation retrofit, reroofing, window restoration, overall repair and restoration of the exposed wood eaves, rafter tails and beams, porch walls and columns, upgrading the plumbing system and garage repairs.
13. 4004 Country Club Drive (District 5) - A two-story International architectural style building which features post and beam architecture with a flat roof system and stucco exterior. The workplan will restore the unique post and beam elements of the building such as the metal beams, wood posts and trims, windows and glass doors, and includes repainting and restoration to the front yard. The property must also be designated as a landmark in order to be eligible for the Mills Act.
14. 803 Daisy Avenue/615 W 9th Street (District 1) - A corner lot with two buildings: a two-story Craftsman triplex and a two-story Folk Victorian duplex. The two-story Craftsman triplex features front facing low sloping gable roof, exposed eaves and beams, horizontal wood siding, and wood windows. The two-story Folk Victorian features a front facing steep gable roof, horizontal wood siding, wood windows, and a centered front porch. Both buildings are intact and the workplan includes reroofing and upgrades to the electrical system for the Triplex and restoration of the exterior wood siding, repainting, and upgrading the electrical and plumbing systems for the Folk Victorian.
15. 2100 Eucalyptus Avenue (District 7) - A corner lot developed with a one-story Spanish Colonial Revival home and an apartment located above the garage. The home features a gable roof system with red clay roof tiles, arched picture window, a turret entry, and original wood windows. The apartment unit features a flat roof, stucco exterior and non-original metal windows. The workplan for the home includes foundation repairs and seismic retrofit work, stucco wall repairs, repainting, and electrical system upgrades. The work plan for the apartment unit includes window replacement of the eight non-original metal windows and installation of new wood windows, stucco wall repairs, and repainting.
16. 2151 Eucalyptus Avenue (District 7) - A two-story Spanish Colonial Revival featuring side gable roof systems, stucco walls, wood windows in arched openings, and a courtyard enclosure. The building is intact, and the workplan includes reroofing, to include preserving the red clay tiles and installing underlayment, stucco wall restoration, chimney repair, window and door restoration, electrical and plumbing systems upgrades, repair/restoration to courtyard walls and iron gate, and landscape removal that is damaging the courtyard walls.
17. 784 Freeman Avenue (District 2) - A one-story Craftsman featuring a side facing gable roof system, horizontal exterior wood siding, wood windows and a covered porch with a front facing gable roof. The building is intact, and the workplan includes major foundation repairs, roof replacement, electrical and heating systems upgrades, exterior siding restoration and repainting.
18. 774 Gladys Avenue (District 2) - A two-story Craftsman featuring side facing gable roof system, two styles of exterior wood siding/shingles, wood windows and an off-centered porch with a front facing gable roof structure. The building is intact, and the workplan includes reroofing, restoration of the front porch and pergola, restoration of windows and doors, replacing non-original windows, and upgrades to the electrical system.
19. 32 Kennebec Avenue (District 2) - A two-story Craftsman featuring front and side facing gable roof systems, overhanging exposed eaves and beam, exterior wood shingle siding, and wood windows. The building is intact, and the work plan includes restoration of the exterior siding, repairing roof drainage and downspouts, restoration/replacement of 18 sets of casement windows, repainting, upgrading the plumbing system and replacing the garage door.
20. 3759 Myrtle Avenue (District 5) - A one-story Spanish Colonial Revival featuring two roof systems: a front facing gable roof with unique red clay roof tiles and a flat roof, stucco walls, wood windows and a small courtyard. The building is intact, and the workplan includes repairing the roof and chimney, foundation repairs and a seismic retrofit, installation of a French drain to eliminate water intrusion damaging the foundation walls, repair/restoration of the stucco walls, restoration of 18 wood windows, and plumbing system upgrades.
21. 404 Newport Avenue (District 3) - A one-story Craftsman featuring a side gable roof, horizontal wood siding and wood doors and windows. Constructed in 1919 as a single-family residence, it was converted to commercial use and was recently converted back to a single-family residence. The building is intact and the workplan includes removal of the vinyl siding and repair of the original horizontal wood siding and trim, restoration of twelve casement windows and entry door and sidelights, constructing a new front porch in an effort to restore the front elevation to original, structural repairs to the roof rafters and installation of a new roof, removal of metal perimeter fencing and installation of vertical wood fencing, removal of all concrete in front yard, installation of new front yard landscaping and installation of a new path leading to the stoop.
22. 239-241 Orizaba Avenue (District 2) - A two-story Tudor duplex featuring varying roof systems, a turret, stucco exterior walls and metal windows. The building is intact, and the workplan includes foundation repair and seismic retrofit, exterior stucco repair, exterior trim restoration, removing nine non-original windows and replacing them with new windows, window restoration on large picture window, removing and replacing 22 non-period window screens, removal of a non-original concrete walkway and installation of a new walkway, and removal of a tree that is damaging the foundation of the building.
23. 735 Sunrise Boulevard (District 6) - A two-story Craftsman featuring front and side facing gable roof systems, wide overhanging exposed eaves and beams, exterior wood shingle siding, wood windows, and a large porch beneath a front facing gable roof. The building is intact, and the workplan includes reroofing, restoration of the exterior wood shingles, restoration of the wood windows, repainting, upgrading the electrical and plumbing systems, installation of a new concrete pathway and replacement of the ribbon driveway.
24. 636 Temple Avenue (District 2) - A one-story Craftsman featuring a side gable roof system, horizontal wood exterior siding, wood windows, and a porch with arched wood trim beneath the front facing gable roof. The building is intact, and the workplan includes exterior siding restoration, repainting with appropriate Craftsman colors (using at least three different paint colors), window restoration, electrical and plumbing systems upgrades, reroofing of the garage, and replacing concrete of the porch floor and walkway.
25. 781 Walnut Avenue (District 1) - A one-story Craftsman featuring two front facing roof gables, wide porch with brick columns, horizontal wood siding and wood windows. The building is intact, and the workplan includes foundation repairs and seismic retrofit, reroofing and insulation installation, window restoration, restoration of the wood siding and trims and repainting with appropriate Craftsman colors (using at least three different paint colors), restoration of the front façade, porch and column bases, and termite mitigation and stump removal.
26. 822 W. Willow Street (District 7) - A one-story commercial building deigned in the International Style (Mid-Century Modern) constructed in 1961. The building features two vertical concrete panels, which extend from the building’s cantilevered roof to the ground and a centered single wood entry door. The building is intact, and the workplan includes stucco repairs to the exterior of the building, repainting, restoration of the landscaping on the front and rear of the building and replacing the reed screens on the rear of the building. The building must also be designated as a landmark in order to be eligible for Mills Act.
This matter was reviewed by Deputy City Attorney Erin Weesner-McKinley on September 12, 2023, and Revenue Management Officer Geraldine Alejo on August 14, 2023.
ENVIRONMENTAL REVIEW
In accordance with Section 15331 Guidelines for Implementation of the California Environmental Quality Act, environmental review is not required for actions taken for the preservation or restoration of historic structures.
SUSTAINABILITY
Implementation of the Mills Act program helps retain and restore historic landmarks. This work often is completed by reusing or reclaiming existing building materials and reducing construction waste as compared to new construction.
TIMING CONSIDERATIONS
City Council action is requested on October 3, 2023, to allow enough time for City Attorney to draft contracts; the property owners and City Manager to execute the contracts; and for the contracts to be recorded prior to the December 31, 2023, deadline established by the Los Angeles County Assessor for placement on the tax rolls.
FISCAL IMPACT
The Mills Act generally results in a 30 to 50 percent property tax reduction for a historic property. Based on an approximate combined assessed property value of $24,678,485 for the proposed Mills Act historic properties, the City could experience a decrease of property tax revenue to the General Fund ranging from approximately $16,287 to $27,146 annually. For the initial 10-year term, the total decrease of property tax to the General Fund could range from approximately $162,878 to $271,463. The Mills Act contracts require improvements made to the property and include a local hire and procurement provision. A majority of the applications specify that the property owners will hire local businesses to complete the work plan items. Implementation of the work plan items may create unknown new offsetting sales, business license, building permit and other fee and tax revenues. Given the number of properties, the impact of job creation is anticipated to be limited. Implementation of the Mills Act program has no staffing impact beyond the normal budgeted scope of duties and is consistent with adopted City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
CHRISTOPHER KOONTZ, AICP
DIRECTOR DEVELOPMENT SERVICES
APPROVED:
THOMAS B. MODICA
CITY MANAGER