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 ...
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