SR - AGR-6179 - MILLS ACT 615 EAST CHAPMAN AVENUE��� • • fPvil b 14P. • • �1'
cO iINTY G
AGENDA ITEM
December 9, 2014
TO: Honorable Mayor and
Members of the City Council
THRU: John W. Sibley
City Manager
FROM: Rick Otto
Interim Commun' elopment
Director
ReviewedNe ified By:
City Manage
Finance Dir t r
To Be Presente By: Rick
Otto
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1. SUBJECT
Mills Act Contract No. MAC - 238.0 -14 (Historic Property Preservation Agreement)
2. SUMMARY
A proposal to approve a Mills Act Contract for a contributing commercial historic property in the
Old Towne Historic District. Estimated costs for repair, rehabilitation and maintenance
performed by the property owner for the minimum ten -year term of this contract total
$465,100.00. Property owners — Gerald R. Eidenmuller Trust - 1985. Location — 615 E.
Chapman Avenue.
3. RECOMMENDATION
Approve a Mills Act Contract (Historic Property Preservation Agreement) between the City of
Orange and the property owner (Application No. MAC - 238.0 -14) for the preservation and
rehabilitation of a qualified historic property.
4. FISCAL IMPACT
The City may incur a net zero loss of property tax, because the property owner has owned the
property for several decades and has a very low basis in the property. However, should the
property owner sell, the buyer may realize property tax savings over the ten -year term of the
contract of approximately $45,000.00. This would result in a loss of property tax of
approximately $622.00 per year. The actual amount of property tax reduction will be determined
by the Orange County Office of the Assessor, using a predetermined income -based approach to
assessment, considering area rental rates and maintenance costs. The application fee for this
contract offsets the cost of staff review, property inspection and this public hearing. An annual
fee will cover ongoing administration costs associated with the program. Rehabilitation will
generate additional revenues from building permit fees, and the local economy will benefit from
work for building contractors and material suppliers.
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1 5. STRATEGIC PLAN GOAL(S)
Recognize, promote and preserve Orange's rich heritage, by expanding and strengthening
processes and practices related to the protection of cultural resources. Enhance and promote
quality of life including historic features of the City's Historic Districts and individually listed
historic resources to its citizens and visitors.
6. GENERAL PLAN IMPLEMENTATION
Cultural Resources and Historic Preservation Element:
Goal 3.0 Provide incentives and expand education efforts for historic preservation.
Policy 3.2 Provide incentives to encourage and support historic preservation.
7. DISCUSSION and BACKGROUND
Mills Act Contract No. MAC - 238.0 -14 is for 615 E. Chapman Street, a commercial office
building and contributing property to the Old Towne Historic District. Estimated costs associated
with repair, rehabilitation and maintenance to be performed by the property owner for the
minimum ten -year term of this contract total $465,100.00. Staff estimates the total tax savings
over a ten -year period would be zero for the current property owner or approximately $45,000.00
for a subsequent owner. The Orange County Office of the Assessor will determine the actual
amount of property tax savings under the Mills Act Contract.
General contract conditions:
• Preserve and rehabilitate the historic property and its character - defining features in
conformance with adopted rules and regulations.
• Meet City of Orange Historic Property Maintenance Standards for all buildings, structures,
yards and other improvements on the property.
• Agree to property inspections once every five years of the contract term and /or when work
is completed to determine compliance with terms of the contract.
• File annual status reports on progress of improvements and repairs and /or any changed
conditions of the property.
• Provide a ten -year update of proposed rehabilitation and repair items, 90 days prior to the
tenth contract anniversary.
• Meet all other contract terms and conditions as specified in the Historic Property
Preservation Agreement.
8. ATTACHMENTS
1. Mills Act Contract MAC - 238.0 -14
2. Photographs of 615 E. Chapman Avenue
N: \CDD \PLNG \Applications \Mills Act \Mills Act Contracts \Chcnts \Clients 2014 \MAC 238.0 -14 615 E Chapman\MAC 238.0 -14 SR - 615 I;
Chapman.docs
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