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SR - AGR-6408 - MILLS ACT 204 WEST CHAPAMAN AVENUE1. SUBJECT Mills Act Contract No. MAC - 249.0 -16 (Historic Property Preservation Agreement) 2. SUMMARY A proposal to approve a Mills Act Contract for a contributing commerical 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 $192,000.00. Property owners — Albert J. and Mary K. Ricci. Location — 204 West 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 - 249.0 -16) for the preservation and rehabilitation of a qualified historic property. 4. FISCAL IMPACT The City may incur a loss of property tax of approximately $621.00 per year. The actual amount of property tax reduction under the Mills Act Contract 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. Rehabilitation will generate additional revenues from building permit fees, and the local economy will benefit from additional work for building contractors and material suppliers. 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 - 249.0 -16 is for 204 West Chapman Avenue, a commercial 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 $192,000.00. Staff estimates the total tax savings to the property owner over a ten -year period would be approximately $46,000.00. 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 - 249.0 -16 2. Photographs of 204 West Chapman Avenue CITY COUNCIL MINUTES NOVEMBER 9, 2016 3. CONSENT CALENDAR (Continued) AGREEMENTS 3.6 First Amendment to Consultant Services Agreement No. 6331 with Raftelis Financial Consultants in the amount of $18,705.00 for additional services preparing the Water Rate Study, and Amendment Number 2 to Consultant Services Agreement No. 6249 with Raftelis in the amount of $9,220.00 for additional services preparing the Sanitation Rate Study. (A2100.0; AGR- 6249.2) ACTION: 1) Approved First Amendment to Agreement No. 6331 in the amount of $18,705 and authorized the Mayor and City Clerk to execute the Amendment on behalf of the City; 2) Approved Amendment Number 2 to Agreement No. 6249 in the amount of $9,220 and authorized the Mayor and City Clerk to execute the Amendment on behalf of the City; and 3) Authorized the City Manager to approve up to twenty percent (20 %) in contingencies for each contract agreement if additional studies are necessary. 3.7 Lease Agreement between the City of Orange and Southern Counties Oil Co. (SC Fuels) providing the use of a portion of a City water well site for SC Fuels' employee parking. (A2100.0; AGR -6407) NOTE: Councilmember Whitaker recorded an abstention due to a potential conflict with employment. ACTION: Approved the Lease Agreement with SC Fuels; and authorized the Mayor to execute and the City Clerk to attest to the Lease Agreement with SC Fuels. 3.8 Mills Act Contract No. MAC 249.0 -16 (Historic Property Preservation Agreement) 204 West Chapman Avenue. (A2100.0; AGR -6408) ACTION: Approved a Mills Act Contract (Historic Property Preservation Agreement) between City of Orange and the property owner for the preservation and rehabilitation of a qualified historic property. 3.9 Mills Act Contract No. MAC 250.0 -16 (Historic Property Preservation Agreement) 224 South Olive Street. (A2100.0; AGR -6409) ACTION: Approved a Mills Act Contract (Historic Property Preservation Agreement) between City of Orange and the property owner for the preservation and rehabilitation of a qualified historic property. 3.10 Mills Act Contract No. MAC 251.0 -16 (Historic Property Preservation Agreement) 204 South Grand Street. (A2100.0; AGR -6410) ACTION: Approved a Mills Act Contract (Historic Property Preservation Agreement) between City of Orange and the property owner for the preservation and rehabilitation of a qualified historic property. PAGE 3