TITLE
Recommendation to authorize City Manager, or designee, to execute Mills Act historic property contracts with owners of 11 historic properties. (Districts 1,2,3,6)
DISCUSSION
The Mills Act was enacted by State law in 1972 and allows local governments to enter into tax abatement contracts with property owners of historic structures. Under the law, 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.
City Council established a local Mills Act program (Program) in 1993. Between 1993 and 2006, the City awarded 31 contracts. In 2006, the program was put on hiatus, and reactivated on February 4, 2014 by the City Council. On January 6, 2015, the City Council approved guidelines and funding for the Program. The Program has been improved and eligibility requirements refined with each continuing application cycle. In 2015, only properties that were designated historic landmarks were eligible. In 2016, the eligibility requirements were expanded to include properties that were eligible to be designated as historic properties. In 2017, no changes were recommended. In 2018, a new category was created exempting properties that exhibit exceptional architectural significance, are culturally significant, or are at risk for demolition from otherwise applicable property valuation caps. The 2019 application cycle gave priority considerations to applicants from 2006 when the Program was suspended.
Mills Act contracts are executed between the City of Long Beach and 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. Long Beach maintains various mechanisms ...
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