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...
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