SR - AGR-6180 - MILLS ACT 376-8 SOUTH OLIVE STREET� pP ORS
9y. �
AGENDA ITEM
December 9, 2014
TO: Honorable Mayor and
Members of the City Council
THRU: John W. Sibley
City Manager
FROM: Rick Otto CDevelopment Interim Communi
Director
ReviewedNeri ed By:
City Manager
Finance Direct r
To Be Presente : Rick Otto
X Cons Calendar _
City Mgr Rpts
Council Reports _
Legal Affairs
Boards /Cmtes _
Public Hrgs
Admin Reports
Plan /Environ
1. SUBJECT
Mills Act Contract No. MAC - 239.0 -14 (Historic Property Preservation Agreement)
2. SUMMARY
A proposal to approve a Mills Act Contract for a contributing residential 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
$93,750.00. Property owners — Adrian Olmos and Jorri Reed. Location — 376 -8 S. Olive Street.
3. RECOMMENDATION
Approve a Mills Act Contract (Historic Property Preservation Agreement) between the City of
Orange and the property owner (Application No. MAC - 239.0 -14) for the preservation and
rehabilitation of a qualified historic property.
4. FISCAL IMPACT
The City may incur a loss of property tax of approximately $496.00 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.
ITEM 12/9/14
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 - 239.0 -14 is for 376 S. Olive Street, a single family residence and
contributing property to the Old Towne Historic District. The property also contains a non-
contributing accessory second unit at the rear, addressed 378 S. Olive Street. 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 $93,750.00. Staff estimates the total tax savings
to the property owner over a ten -year period will be approximately $36,000.00. 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 - 239.0 -14
2. Photographs of 376 S. Olive Street
N:ACDD \PLNG \Applications \Mills Act \Mills Act Contracts \Clients \Clients 2014 \MAC 239.0 -14 376 S Olive \i IAC 239.0 -14 SR - 376 S
Ohve.docx
ITEM 2 12/9/14