TITLE
Recommendation to request City Attorney to prepare ordinances to designate the properties located at 501 East Broadway, 909-915 Elm Avenue, 287 Granada Avenue, 355 Junipero Avenue, and 362 Junipero Avenue as Long Beach Historical Landmarks; and
Authorize City Manager, or designee, to execute Mills Act historic property contracts with owners of 23 historic landmark properties. (Districts 1,2,3,7)
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. Property owners 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.
The City Council established a local Mills Act program in 1993. Between 1993 and 2006, the City awarded 31 contracts. With each contract, the Department of Development Services conducts an inspection of the property prior to contract execution and again every five years thereafter to ensure proper maintenance of the property. The contracts are between the City and the property owner, and the initial term is 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 or terminate the contract and recover significant damages if the property owner breaches any of the contract terms.
On February 4, 2014, the City Council directed staff to resume the acceptance of new Mills Act applications. On January 6, 2015, the City Council approved guidelines and funding for the program. The program has been improved and eligibility requirements modified with each subsequent application cycle. In 2015, only properties that were designated as historic landmarks at the time of application were eligible. In 2016, the eligibility requirements were expanded to include properties that were eligible to be designated as historic properties. This year’s application cycle expanded the program’s eligibility requirements to include contributing structures within historic districts that do not need to meet landmark designation requirements to be eligible for the Mills Act. This year’s cycle also gave priority considerations to applicants from 2006 when the Mills Act program was suspended, and to eligible applicants that were not awarded in the 2016 cycle.
The Mills Act application guide was released to the public on February 9, 2017, and applications were due on March 17, 2017. A total of 26 complete applications were received prior to the deadline. The Cultural Heritage Commission conducted two hearings where they made recommendations for Mills Act contracts on May 8, 2017 (Exhibit A - CHC Staff Report 5/8/17) and for landmark designation on five properties on June 12, 2017 (Exhibit B - CHC Staff Report 6/12/17).
Recommended applications from historic district contributing structures from 2016 Mills Act application cycle:
1. 1038 Magnolia Avenue (District 1) - A 1913 Craftsman Bungalow that maintains several original features including wood siding, wood windows and maintains the character-defining dual front gable appearance associated with the style. The workplan includes structural repair of the porch and sewer line repair.
2. 2252 East 6th Street (District 2) - Built in 1920, this one-story Craftsman style duplex features a highly symmetrical front elevation with three front-facing gables and trellis over the porch. The building is intact and provides a strong workplan for a structural evaluation of wall damage, repair water damage on porch, and replace roof and repair damaged areas.
3. 1335 East 8th Street (District 2) - A Colonial Craftsman style building with a clipped-gable porch and main roof. The building features a centered porch entry flanked with two tripartite windows and simple wood trim ornamentation along the front elevation. Workplan items include window restoration, replacement of inappropriate architectural features and repair of moisture problems in foundation and crawlspace.
4. 1410-1412 East 9th Street (District 2) - A one-story Colonial Craftsman building with detached garage and dwelling at the rear of the property. The workplan includes substantial repair and restoration work to include structural repair of porch, replacing non-period windows, new plumbing and electrical work.
5. 778 Molino Avenue (District 2) - An intact one-story Spanish Colonial style building. The building has a main flat roof with tile capped parapet wall and a tiled front gable roof. The workplan includes window restoration, foundation work and repair of damaged wall surfaces.
6. 231 Coronado Avenue (District 3) - This Craftsman Bungalow constructed in 1921 features a centered front porch, two front-facing gables and upper divided lights in the front-facing windows. Workplan items include investigative foundation work, window restoration, exterior wood repair and maintenance, and replacement of missing features.
Recommended applications from the 2017 Mills Act application cycle:
1. 117 East 8th Street (District 1) - The Long Beach Professional Building was constructed in 1929 and designated as a historic landmark in 1988. The eight-story Art Deco style building was the first large office building in the City devoted to medical practice. The application will include additional restoration beyond what was previously granted by the Commission last year. This property is a designated historic landmark.
2. 624-630 West 8th Street (District 1) - The property consists of a two-story four-unit brick apartment building constructed in 1924. The workplan consists of removing inappropriate alterations, repairing exterior finishes, repairing mortar on the brick façade, replacing non-period windows and doors with historically accurate period doors, and repairing and installing new roofing materials.
3. 517 West 9th Street (District 1) - This Victorian Cottage is a charming home that maintains several of its original character defining features. The workplan includes a seismic retrofit of the foundation, lead-paint removal and new paint, restoration of wood windows, and removal of porch alterations.
4. 453 Chestnut Avenue (District 1) - A two-story Craftsman style building located on the corner of Chestnut and 5th Street. The building has a half-width front porch, and a prominent front-facing cross-gable roof with original architectural features that remain intact. Restoration work includes structural repair of the porch, repair the foundation, termite abatement and repair, and repair of damaged exterior wood architectural features.
5. 909-915 Elm Avenue (District 1) - This unique property was originally constructed with a Victorian Queen Anne influenced single-family building in the rear of the property in 1906. A duplex building was constructed in the front half of the property in 1918 reflecting the rapid growth and development of the City in the early 20th century. The workplan for both buildings includes restoration of original wood architectural features, roof replacement, window restoration, termite abatement and repair.
6. 2311-2315 East 6th Street (District 2) - This property features two bungalows constructed in 1913 and 1922. The buildings are clad in a combination of wood shingles and wood siding and maintain several original features. The workplan items include porch repair with reconstruction based off a porch roof, replacing the non-period front door, replacing damaged shingle and siding, removing non-period windows and replacing with historically accurate windows, termite abatement and repair, and earthquake retrofitting.
7. 2321 East 6th Street (District 2) - A single-story intact Craftsman style building with a front elevation that features a symmetrical façade with Colonial influences. A front gable porch entry frames the centered main entry and includes boxed-in roof eaves. The workplan includes foundation repair, seismic retrofitting, and investigation and repair of water and moisture concentrations.
8. 501 East Broadway (District 2) - Originally constructed in 1922, the Metropolitan Apartments’ façade was redesigned by Horace Austin into its current Streamline Moderne appearance after damage from the Long Beach Earthquake in 1933. The three-story mixed-use building will undergo restoration work along the storefronts, remove inappropriate alterations, restore original features, replace missing architectural features, investigate original building colors, and paint the building according to the paint analysis.
9. 355 Junipero Avenue (District 2) - This unique two-story building constructed in 1914 was designed by the local and noted architects Austin and Lochridge architects and is a well preserved example of a Craftsman style building. The building is clad in wood shingle, retains several original windows with upper divided lights, exposed beams, and a brick chimney. Restoration includes removal of non-period louver windows, restoration of wood windows, paint and repair exterior siding, update plumbing systems, and investigate structural repair of floor framing.
10. 362 Junipero Avenue (District 2) - This prominent two-story Craftsman style building constructed in 1913 and designed by C.B. Sholes is located within the Carroll Park Historic District. The building is a well-designed custom home that retains several character defining features. The building is clad in wood shingle, with wide overhanging roof eaves, large windows, and exposed rafter tails. The work program includes extensive window restoration and repair, replacing inappropriate window glazing in front door, tuckpointing brickwork throughout the building, replacement of roofing materials and repair of structural roof deficiencies.
11. 210 The Promenade North (District 2) - This historic landmark building was designated as a landmark by the Cultural Heritage Commission last year. The building is known as the Barker Bros Annex Building and includes Art Deco and Streamline Moderne stylistic features. The front façade was designed by the noted local firm of Schilling and Schilling architects and reconstructed after the Long Beach Earthquake in 1933. The workplan includes extensive restoration work consisting of reconstruction of steel windows, restoration of stucco streamline features including stringcourses, curved corners, vertical piers, and roof repairs.
12. 2625 East 2nd Street (District 3) - This single-family building was constructed in 1911 and is an excellent example of the Craftsman style. The house conveys the period of construction and retains several character-defining features. The workplan includes earthquake retrofitting and foundation work, sewer line replacement and restoration of significant historic building features.
13. 643 Euclid Avenue (District 3) - The property is a unique double lot, with a two-story Craftsman building with a half-width porch. The building was the first building constructed on the block. The workplan includes major foundation work to replace crumbling foundation walls, install new piers and seismically retrofit the building to the foundation. The workplan also includes extensive updating of plumbing and electrical services, lead paint removal, and restoration and repair of several architectural features.
14. 287 Granada Avenue (District 3) - This two-story duplex is a well-designed Spanish Colonial example that maintains many of the classical architectural features associated with its architectural style. Restoration includes replacement of non-period aluminum windows with wood windows, repair and restoration of existing wood windows and doors, replace knob and tube electrical wiring, foundation seismic retrofit, and replacement of sewer line.
15. 537 Termino Avenue (District 3) - This classic Craftsman Bungalow features two front-facing gables, a half-width porch and is clad in wood siding. Restoration work includes foundation repair, seismic retrofitting, repair of sagging roof, remove non-period stone features, restore wood windows, replace non-period windows with wood windows, and replace knob and tube electrical wiring.
16. 3615 Cerritos Avenue (District 7) - A one-story Spanish Colonial style building that features a side-gable roof, large picture window, bay window and several arch-shaped openings along the front façade. The restoration includes replacing all non-period aluminum windows with new wood windows, replacing plumbing and electrical, repairing foundation damage, and retrofitting the foundation.
17. 3590 Gundry Avenue (District 7) - The property is a one-story Spanish Colonial style building with a tile covered porch and front-gable roof. Proposed building work includes replacing the roof on the residence and accessory structures, repairing roof leaks, replacing the clay sewer line, removing old knob and tube electrical wiring, service panel upgrading, retrofitting foundation and termite abatement and repair.
This matter was reviewed by Assistant City Attorney Michael J. Mais on June 1, 2017 and by Budget Management Officer Rhutu Amin Gharib on May 31, 2017.
SUSTAINABILITY
Implementation of the Mills Act helps retain and restore current local historic landmarks, new historic landmarks, and contributing structures within historic districts. 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 June 20, 2017, to allow sufficient time for the City Attorney to draft, the property owners and City Manager to execute, and to record all contracts prior to the December 29, 2017 deadline established by the Los Angeles County Assessor for placement on the tax rolls.
FISCAL IMPACT
Tax abatements under the Mills Act generally result in a 30 to 50 percent property tax reduction for a historic property. Based on an approximate assessed value of $19,400,000 for the proposed Mills Act historic properties, the City could experience an annual decrease of property tax revenue to the General Fund (GF) ranging from approximately $12,800 to $21,340. For the initial ten-year term, the total decrease of property tax to the GF could range from approximately $128,000 and $213,400.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
AMY J. BODEK, AICP
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER