SR - AGR-6556 - MILLS ACT 110 W CHAPMAN AVENUE1. SUBJECT
Mills Act Contract No. MAC - 267.0 -17 (Historic Property Preservation Agreement)
2. SUMMARY
A proposal to approve a Mills Act Contract for a contributing commercial historic property in the
Plaza Historic District. Estimated costs for repair, rehabilitation, and maintenance performed by
the property owner for the minimum ten -year term of this contract total $3,319,201.00. Property
owners — Urth Caffe. Location — 110 W. Chapman Avenue.
13. RECOMMENDATION J
Approve a Mills Act Contract (Historic Property Preservation Agreement) between the City of
Orange and the property owner (Application No. MAC - 267.0 -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 $1,742.00 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 - 267.0 -17 is for 110 W. Chapman Avenue, a commercial building
and contributing property to the Plaza Historic District. Estimated costs associated with repair
and rehabilitation performed by the property owner for the minimum ten -year term of this
contract total $3,319,201. The rehabilitation of the property was approved by the Design Review
Committee (DRC) as DRC No. 4803 -15 and is currently under construction. The rehabilitation
included seismic retrofit, a new roof, removal of non - historic plaster from the historic brick,
repair of historic windows, and restoration of the historic storefront system with original cast
iron columns. The estimated cost represents the property owner's investment in rehabilitation of
the exterior of the building and seismic retrofit. The total cost of the project, including interior
improvements, exceeds $7,500,000. Staff estimates the total tax savings to the property owner
over a ten -year period would be approximately $128,259. 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 - 267.0 -17
2. Photographs of 110 W. Chapman Avenue
N:ACDll \PI.NG \Applications \i iills Act \Mills Act Contracts \Clients \Clients 2017 \MAC 267.0 -17 - 100 W Chapman Arc \MAC 267.0 -17 - SR -
100 W Chapman.docx
ITEM 2 12/12/17