03.17 Mills Act 526 E Maple Ave1. SUBJECT
Mills Act Contract No. MAC - 270.0 -18 (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 $100,200.00. Property
owner — Todd Essenmacher Family Trust dated May 5, 2004— 526 E. Maple Avenue.
3. RECOMMENDATION
Approve a Mills Act Contract (Historic Property Preservation Agreement) between the City of
Orange and the property owner (Application No. MAC - 270.0 -18) for the preservation and
rehabilitation of a qualified historic property.
4. FISCAL IMPACT
The City may incur a loss of property tax of approximately $535.00 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 GOALS
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 - 270.0 -18 is for 526 E. Maple Avenue, 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 $100,200.00. Staff estimates the total tax savings to the property owner
over a ten -year period would be approximately $39,414.00. 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.
18. ATTACHMENTS I
1. Mills Act Contract MAC - 270.0 -18
2. Photographs of 526 E. Maple Avenue
NACDD \PI,NG \I listonc Prescn anion \Mills Act Frog ram \Applications \Clicnts 2018 \A1AC 270.0 -18 - 526 F. Maple AvcnnC
ITEM 2 05/08/2018
CITY COUNCIL MINUTES MAY 8, 2018
3. CONSENT CALENDAR (Continued)
3.16 Mills Act Contract No. MAC - 269.0 -18 (Historic Property Preservation Agreement),
251 N. Shaffer Street. (A2100.0; AGR -6604)
NOTE: Mayor Smith recorded an abstention due to a potential conflict with nearby
property.
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.
3.17 Mills Act Contract No. MAC - 270.0 -18 (Historic Property Preservation Agreement),
526 E. Maple Avenue. (A2100.0; AGR -6605)
NOTE: Mayor Smith recorded an abstention due to a potential conflict with nearby
property.
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.
3.18 Award of contract for Fire Hydrant Painting Services; Bid No. 178 -26. (A2100.0;
AGR -6606)
ACTION: Awarded a contract in the amount of $42,900 to Polychrome Construction, Inc.;
and authorized the Mayor and City Clerk to execute on behalf of the City.
3.19 Award of contract for demolition of an existing water reservoir; Bid No. 178 -27.
(A2100.0; AGR -6607)
ACTION: Awarded the contract in the amount of $123,200 to James McMinn, Inc.; and
authorized the Mayor and City Clerk to execute on behalf of the City.
3.20 Award of contract for Annual Pavement Maintenance at Various Locations, Fiscal
Year 2017 -2018 (FY18); Bid No. 178 -29. (A2100.0; AGR -6608)
ACTION: Awarded the contract in the amount of $1,836,745 to R.J. Noble Company; and
authorized the Mayor and City Clerk to execute on behalf of the City.
3.21 Award of contract for Annual Slurry Seal at Various Locations, Fiscal Year 2017-
2018 (FY18); Bid No. 178 -30. (A2100.0; AGR -6609)
ACTION: Awarded the contract in the amount of $582,940 to All American Asphalt South
of Fontana, California; and authorized the Mayor and City Clerk to execute on behalf of
the City.
3.22 Award of contract for Palmyra Avenue Street Rehabilitation, FY18; Bid No. 178 -31.
(A2100.0; AGR -6610)
ACTION: Accepted the lowest bid and award the contract to R.J. Noble Company of
Orange, California, in the amount of $1,075,226; and authorized the Mayor and the City
Clerk to execute on behalf of the City.
PAGE 6