RES-8920 Authorizing Implementation of Mills Act ProgramRESOLUTION NO. 8920
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE,
CALIFORNIA, AUTHORIZING THE IMPLEMENTATION OF A MILLS ACT
PROGRAM IN THE CITY OF ORANGE AND ESTABLISHING A POLICY FOR
HISTORIC PROPERTY PRESERVATION AGREEMENTS (MILLS ACT
CONTRACTS).
The City Council of the City of Orange does hereby resolve as follows
WHEREAS, the Mills Act, Government Code Section 50280 et seq. provides cities with
opportunity to contract with owners of qualified historical properties whereby the owner
promises to preserve, restore and rehabilitate the property in return for a reduced property tax
assessment; and
WHEREAS, included within the City is one the largest National Registered Historic
Districts in the Western United States, and the City desires to promote the quality of life and
historic features of said District to its citizens and visitors; and
WHEREAS, the City is dedicated to the protection and stabilization of property values
through maintaining and upgrading its older housing stock, through the use of incentives such as
the Mills Act; and
WHEREAS, the Mills Act will also have beneficial effects on City businesses, economic
stability and community pride by preserving important neighborhood resources; and
WHEREAS, the use of the Mills Act will fulfill one of the City's 1983 Historic
Preservation Element goals:
The encouragement and incentives to achieve long-term preservation of the
historic neighborhoods in Orange will be provided through financial, planning and
zoning incentives which assist property owners in rehabilitating and preserving their homes
and buildings. (Goal # 2, page 35);
and WHEREAS, the City wishes to mitigate the negative financial impacts of the Mills
Act program on the City through the following
actions:Use is prohibited in redevelopment project areas, except by special City Council resolution
in ases where it is the only option or financial incentive to avoid demolition of the
structure;
and Use is allowed for contributing properties located within the Old Towne Orange
National Register Historic District;
and Use is allowed City-wide for individually designated historic structures listed on
the National Register of Historic Places, the California Register of Historical Resources or
the California Register of
WHEREAS, it is the City's expectation that property owners will use the property tax
savings accrued under this Agreement for improvements to the property. To that end, as a
condition of renewal, the City will require a revised schedule of improvements every five years
showing a plan for improvements commensurate with the tax savings; and
WHEREAS, the Historic Property is a qualified historical property under the Mills Act in
that it is privately owned property which is not exempt from property taxation and is either:
individually designated or within a designated district which is listed on the National Register of
Hislloric Places, California Register of Historical Resources or California Register of Historical
Landmarks, California Points of Historical Interest, or it is a historical property listed in a City of
Orange Historic Register; and
WHEREAS, Owner, in consideration for abiding by the terms of the Agreement shall be
entitled to a reassessment of valuation of the Historic Property and any corresponding reduction
in property taxes pursuant to the provisions ofthe California Revenue and Taxation Code; and
WHEREAS, the City and Owner for their mutual benefit, now desire to enter into this
Agreement to limit the use of the Historic Property to prevent inappropriate alterations, to ensure
that characteristics of historical significance are preserved and maintained in an exemplary
marmer, and to carry out the purposes of Article 12 (commencing with Section 50280) of Chapter
1, Part 1, Division 1 of Title 5 of the California Government Code and Article 1.9 (commencing
with Section 439) of Chapter 3, Part 2 of Division 1 of the California Revenue and Taxation
Code.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Orange:
1. Authorizes the implementation of a Mills Act program in the City of Orange and the
establishment of a policy (as described herein) for Historic Property Preservation
Agreements (Mills Act contracts); and
2. Appoints the City Manager or authorized designee as the agent to coordinate, process,
and execute each Historic Property Preservation Agreement following approval of the
Agreement by City Council resolution.
3. Establishes the Mills Act Program on a pilot program basis. After 12 months from
adoption ofthis Resolution, or approval of requests from 10 applicants (whichever occurs
first) a report shall be made to Council and a determination made to continue, modify or
terminate the program.
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ATTEST:
ADOPTED this l:\t'h day of Al1g11~T 1998.
I hereby certify that the foregoing Resolution was duly and regularly adopted by the City
Council of the City of Orange at a regular meeting thereof held on the 25th day OfAuqust
1998, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCILMEMBERS:
COUNCILMEMBERS:
COUNCILMEMBERS:
COUNCILMEMBERS:
MURPHY, COONTZ, SPURGEON
NONE
SLATER, ALVAREZ
NONE
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