City of Sacramento - File #: 2019-00575

• File #: 2019-00575
• Version: 1
• Type: Consent Item
• Status: Agenda Ready
• File created: 4/8/2019
• In control: City Council - 5PM
• On agenda: 5/14/2019
• Final action: 12/31/2023
• Title: Mills Act Contracts: Historical Property Agreements for 1916 26th Street (IR18-272), 2213/2215 25th Street (IR18-306), 530 10th Street (IR18-315), 1011 F Street (IR19-037), and 1100 R Street (IR19-047)

Title: 

Title

Mills Act Contracts: Historical Property Agreements for 1916 26^th Street (IR18-272), 2213/2215 25^th Street (IR18-306), 530 10^th Street (IR18-315), 1011 F Street (IR19-037), and 1100 R Street (IR19-047)

End

FileID

File ID: 2019-00575

Location

Location: 1916 26^th Street (010-0044-009-0000); 2213/2215 25^th Street (010-0173-001-0000); 530 10^th Street (002-0145-026-0000). 1011 F Street (002-0116-020-0000); and 1100 R Street (009-075-011-0000); District 4.

Recommendation: 

Recommendation

Pass a Motion authorizing the City Manager or the City Manager’s designee to: 1) enter into Mills Act Contracts with each of the owners of the following properties 1916 26^th Street, 2213/2215 25^th Street, 530 10^th Street, 1011 F Street, and 1100 R Street, whereby the owners agree to preserve, restore, and protect their historic properties, for an initial term of ten years with automatic contract renewal each year on the anniversary of the contract execution date; and 2) execute amendments to the Rehabilitation/Restoration/Maintenance Plan (i.e. work plan) that do not result in expense to the City.

Contact:  Carson Anderson, Preservation Director, (916) 808-8259; Sean de Courcy, Associate Preservation Planner, (916) 808-2796, Community Development Department

Body

Presenter:  None.

Attachments:

1-Description/Analysis

2-Agreement 1916 26^th Street

3-Agreeement 2213/2215 25^th Street

4-Agreement 530 10^th Street

5-Agreement 1011 F Street

6-Agreement 1100 R Street

Description/Analysis

Issue Detail: The City’s Mills Act program authorizes owners of qualified historical properties to enter into an agreement with the City whereby the property owner agrees to preserve, restore, and rehabilitate their historical property.  In exchange, by entering into a Mills Act contract, the property owner qualifies the property for an assessment of valuation in accordance with California Revenue and Taxation Code section 439 et seq., which may result in tax savings to the property owner. Staff is recommending the city council enter into Mills Act contracts with the owners of the following properties:  1916 26^th Street, 2213/2215 25^th Street (a duplex), 530 10^th Street, 1011 F Street, and 1100 R Street.

Policy Considerations: The 2035 General Plan Historic and Cultural Resources Element established Policy HCR 2.1, which includes the “Identification and Preservation of Historic and Cultural Resources to enrich our sense of place and our understanding of the city’s prehistory and history. Goal HCR 2.1.4 is intended to help the city achieve Policy HCR 2.1, and states that the “City shall develop and support regulatory, technical, and financial incentives, and enforcement programs to promote the maintenance, rehabilitation, preservation, and interpretation of the city’s historic and cultural resources.” The Mills Act Program is one of the city’s historic property incentive programs.

City Code section 17.604.100.C.2 directs the Preservation Director to manage the city’s incentives programs established by council. To that end the Preservation Director has recommended the properties at 1916 26^th Street, 2213/2215 25^th Street (a duplex), 530 10^th Street, 1011 F Street, and 1100 R Street as eligible candidates for historical property contracts, also known as Mills Act contracts. Pursuant to City Code section 17.604.720.G the city council may approve, approve with conditions, or deny the proposed contract.

Economic Impacts: Not applicable.

Environmental Considerations:  Historical property contracts are exempt from review under the California Environmental Quality Act pursuant to CEQA Guidelines section 15308.  Section 15308 exempts from review acts that are undertaken to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment.  Historical property contracts ensure regular maintenance and repair to historic properties pursuant to the Secretary of the Interior Standards for the Treatment of Historic Properties. No other physical change in the environment would occur as a result of this action.

Sustainability: Not applicable.

Commission/Committee Action: Not Applicable. 

Rationale for Recommendation: 1916 26^th Street, 2213/2215 25^th Street (a duplex), 530 10^th Street, 1011 F Street, and 1100 R Street are all properties listed in the Sacramento Register of Historic and Cultural Resources and considered “qualified historical properties” under the State’s Mills Act (see Government Code section 50280.1). The status of each resource is shown in Table 1.

Table 1: Qualified Historical Property Status

Address	Status	Historic District (If applicable)
1916 26th Street	Contributing Resource	Newton Booth Historic District
2213/2215 25th Street	Contributing Resource	Newton Booth Historic District
530 10th Street	Landmark	Alkali Flat Central Historic District
1011 F Street	Contributing Resource	Alkali Flat Central Historic District
1100 R Street	Contributing Resource	R Street Historic District

When considering a Mills Act contract application, City Code section 17.604.720.D provides the City may give priority to applicants that demonstrate any of the following:

1.                     The property is particularly significant due to its historic value, location, or other attribute;

2.                     The applicant has the ability to preserve and, when necessary, restore and rehabilitate the property; and

3.                     The preservation and, when necessary, restoration and rehabilitation of the property will enhance the city’s inventory of historic and cultural resources.

All five properties meet these criteria as shown in Table 2 and staff has determined all five are eligible for historical property agreements, subject to the terms of Attachment 2-6, respectively. Images of each property are shown in Figure 1-5.

 Table 2: Justification for Mills Act Consideration

Address	Description	Applicable Criteria
1916 26th Street	Property owner has recently been approved to begin major renovation (PB18-056), including raising the building to add a second unit. Tax benefits will help offset the cost of financing the renovation over time and completing interior restoration work.	17.604.720.D.2; and 17.604.720.D.3
2213/2215 25th Street	Property owners have undertaken substantial stabilization work, including installing a new foundation. Tax benefits will help offset the cost of ongoing maintenance.	17.604.720.D.2; and 17.604.720.D.3
530 10th Street	Property is a prominent local landmark and will require a substantial amount of maintenance over time.	17.604.720.D.2; and 17.604.720.D.3
1011 F Street	Property is a significant contributor on a prominent block with some of the city’s most important landmarks from its early history. Property owners have recently completed a major front porch and pediment restoration (PB15-036) at substantial personal expense.	17.604.720.D.1; 17.604.720.D.2; and 17.604.720.D.3
1100 R Street	Property owner recently completed a major restoration and adaptive reuse project in conjunction with the WAL Artist Loft adaptive reuse project. Tax benefits will be used to offset the cost of renovation and conduct ongoing maintenance and repairs.	17.604.720.D.2

Figure 1: 1916 26^th Street

Figure 2: 2213/2215 25^th Street

Figure 3: 530 10^th Street

Figure 4: 1011 F Street

Figure 5: 1100 R Street

Financial Considerations: The City can expect a de minimis reduction in property taxes due to the reassessed value of these five properties following execution of the contracts.

Local Business Enterprise (LBE):  Not applicable.