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SR - AGR-6182 - MILLS ACT 309 NORTH CAMBRIDGE STREETpP OR.. ... 9 a �•'• �' °tiivi^i c FJ' AGENDA ITEM December 9, 2014 TO: Honorable Mayor and Members of the City Council THRU: John W. Sibley City Manager FROM: Rick Otto F�opment Interim Communi De Director ReviewedNeri led By: City Manager Finance Direc r To Be Presente y: Rick Otto X Cons Calendar _ City Mgr Rpts Council Reports _ Legal Affairs Boards /Crates _ Public Hrgs Admin Reports Plan /Environ 1. SUBJECT Mills Act Contract No. MAC - 241.0 -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 $105,100.00. Property owners — Philip E.J. and Carrie L. Disbrey. Location — 390 N. Cambridge Street. 3. RECOMMENDATION Approve a Mills Act Contract (Historic Property Preservation Agreement) between the City of Orange and the property owner (Application No. MAC - 241.0 -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 $589.00 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 �3-- / & 1 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 - 241.0 -14 is for 390 N. Cambridge Street, a single-family residence 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 $105,100.00. Staff estimates the total tax savings to the property owner over a ten -year period will be approximately $43,000.00. 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 - 241.0 -14 2. Photographs of 390 N. Cambridge Street N:ACDD \PI,NG \Applications \Mills Act \Mills Act Contracts \Clients \Clients 2014 \390 N Cambridge \Ib1AC 241.0-14 SR - 390 N Cambridge.docx ITEM 2 12/9/14