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SR - AGR-6555 - MILLS ACT 220 S BATAVIA STREET1. SUBJECT Mills Act Contract No. MAC - 266.0 -17 (Historic Property Preservation Agreement) 2. SUMMARY A proposal to approve a Mills Act Contract for a historic residential property outside of 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 $39,000.00. Property owners — John Christopher Weichselberger and Anh Van Dao. Location — 220 S. Batavia Street. 3. RECOMMENDATION I Accept Historic Resource Assessment for 220 S. Batavia Street and approve a Mills Act Contract (Historic Property Preservation Agreement) between the City of Orange and the property owner (Application No. MAC - 266.0 -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 $506.00 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 - 266.0 -17 is for 220 S. Batavia Street, a two story single family residence. The building is Colonial Revival style with elements of Minimal Traditional. The property is on the west side of South Batavia Street, just outside of the boundary of the local Old Towne Historic District. The boundary of the Historic District is the centerline of Batavia Street. Individual properties outside of the Old Towne Historic District may be eligible for a Mills Act Contract if they are determined to be eligible for listing in the National Register of Historic Places, California Register of Historical Resources, or included on the local City of Orange Historic Resources Inventory. There are currently eight properties outside of the Historic District with Mills Act Contracts. Historic properties outside of the Old Towne Historic District are not protected by historic preservation standards and may be demolished or substantially altered by the property owner at any time. The Mills Act Contract provides a method for ensuring the preservation and rehabilitation of these historic properties outside of the Historic District. By voluntarily entering into the Mills Act Contract, the owner agrees that any work on the property must be in conformance with the Secretary of the Interior's Standards for the Treatment of Historic Properties. As a result, this Mills Act Contract provides protection for a historic property, in exchange for the potential reduction in property taxes afforded to the property owner. 220 S. Batavia Street had not been surveyed by the City previously, so the property owner engaged a qualified historic preservation consultant, meeting the Secretary of the Interior's Professional Qualifications Standards, to research and document the history of the property and to prepare a report on the its eligibility for listing in the National Register of Historic Places (National Register) and California Register of Historical Resources (California Register). The report presented to staff found that the property was eligible for listing in the National Register and California Register under Criterion A/1 for its association with events that have made a significant contribution to the broad patterns of history and cultural heritage, and Criterion B/2 for its association with the lives of persons important in our past. The following brief history is adapted from the Historic Resources Assessment for 220 S. Batavia Street provided as Attachment 3 to the Staff Report. The house at 220 S. Batavia Street was constructed in 1940 by Roy R. Russell a prominent contractor and real estate entrepreneur, who built and sold houses throughout the Santa Ana and Orange areas. In 1941, Vera Wettlin purchased the house as her sole and separate property, where she lived with her husband David Wettlin and their children until 1954. From 1935 to 1954, Vera Wettlin served as the City of Orange Postmaster, a federally appointed position, and was the primary income earner for her family. She served as Postmaster during the dedication of the new Post Office at 308 W. Chapman Avenue in 1935. She was Postmaster when the Orange Post Office received first class office status, the highest class rating in the Postal Service, and ITEM 2 12/12/17 was present at the first airmail drop in the City in the summer of 1946. Her tenure ended in 1954, having completed 20 years of service to the community. Wettlin's position as Postmaster, her professional and civic life, and her homeownership reflect the slowly increasing number of women in the workforce during the mid - twentieth century and the reality of women's roles as income earners and heads of households from the Great Depression through the 1950s. Wettlin was a member of a number of important Orange community organizations, including the Toastmasters and the Woman's Club, where she held the presidency for several terms. She was also an active member of the Orange Business and Professional Women's Club, where she served as Public Relations Chair in 1941. As a prominent member of the community, her home served as an important meeting place for these community institutions. The house retains the majority of its features from its construction in 1940 and through Vera Wettlin's ownership of the house, which ended when she sold the house the same year as her retirement in 1954. The house is also one of a number of historic properties on the west side of South Batavia Street, including 204 S. Batavia Street and 224 S. Batavia Street, both of which have been surveyed as being potentially eligible for designation in the National Register and California Register. The block also includes the French Estate at 248 S. Batavia Street which is separately listed in the National Register. With its date of construction in 1940, the house falls within the period of significance for the Old Towne Historic District (1888 -1940) and could potentially be considered as a contributor to the Historic District, if the boundaries were expanded to include the west side of South Batavia Street. Based on the above history and the integrity of the property, staff recommends that 220 S. Batavia Street is eligible for eligible for designation in the California Register and for inclusion in the City's Historic Resources Inventory. Should Council City choose to accept the historic resource assessment for the property and approve Mills Act Contract No. 266.0 -17, the Historic Resources Inventory will be updated to reflect the property's status as a historic resource. Estimated costs associated with repair, rehabilitation, and maintenance to be performed on the property by the owner for the minimum ten -year term of this contract total $39,000.00. Staff estimates the total tax savings to the property owner over a ten -year period would be approximately $37,270.00. 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. ITEM 3 12/12/17 8. ATTACHMENTS 1. Mills Act Contract MAC - 266.0 -17 2. Photographs of 220 S. Batavia Street 3. Historic Resource Assessment for 220 S. Batavia Street N:ACDD \1 Applications \Mills Act \Mills Act ContractsA(1cnts \C1cnts 2017 \MAC 266.0 -17 - 220 S BataN is \11AC 366.0 -17 - SR - 220 S Batacia.docx ITEM 4 12/12/17