SR - AGR-6551 - MILLS ACT 264 N CENTER STREET1. SUBJECT
Mills Act Contract No. MAC - 262.0 -17 (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
$166,200.00. Property owners — EM & M Properties, LLC. Location — 264 N. Center Street.
3. RECOMMENDATION
Approve a Mills Act Contract (Historic Property Preservation Agreement) between the City of
Orange and the property owner (Application No. MAC - 262.0 -17) for the preservation and
rehabilitation of a qualified historic property.
4. FISCAL IMPACT
The City may incur a loss of property tax of approximately $626.00 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
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 - 262.0 -17 is for 264 N. Center 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 $166,200.00. Staff estimates the total tax savings to the property owner
over a ten -year period would be approximately $46,100.00. The Orange County Office of the
Assessor will determine the actual amount of the 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.
18. ATTACHMENTS I
1. Mills Act Contract MAC - 262.0 -17
2. Photographs of 264 N. Center Street
N:ACDD \PI.NC \Applications \%tills Act \Ntills Act Contracts \Clients \Clients 2017 \MAC 262.0 -17 - 264 N Ccitcr \iv1AC 363.11 -17 - SR - 262 N
Center St.does
ITEM 2 12/12/17