CITY COUNCIL: Resolution Setting a Limit of Three Mills Act Contracts Per Calendar Year

Meeting Date: 8 June 2010
Prepared by: Sean Conroy, Plng & Bldg Services Manager

City Council
Agenda Item Summary

Name: Consideration of a Resolution setting a limit of three Mills Act Contracts to be approved for residential properties within a calendar year and requiring City Council evaluation of the program after five years.

Description: This proposal would limit the number to three Mills Act Contracts that could be approved for residential properties within a calendar year. This proposal also requires City Council evaluate the program after five years to determine if the program should be
continued.

City Funds: N/A
Grant Funds: N/A

Staff Recommendation: Adopt the Resolution.

Important Considerations: The Mills Act was enacted by the State of California in 1972 as a way of encouraging partnerships between local governments and property owners of historic resources. Local governments are not required to participate in the Mills Act.

For participating governments, a Mills Act contract can be offered to any property that contains an historic resource. The contract must be for at least 10 years and the property owner typically agrees to specific rehabilitation/restoration efforts. In turn, the property owner receives a reduced property tax assessment. The jurisdiction benefits by having historic resources maintained and enhanced, while the property owner benefits by having a reduced tax burden.

Decision Record: On 4 May 2010, the Council directed staff to prepare a Resolution limiting the number of contracts that could be approved within any calendar year.

Reviewed by:

__________________________ _____________________
Rich Guillen, City Administrator Date

CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION 2010-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA SETTING AN APPROVAL LIMIT OF THREE MILLS ACT CONTRACTS FOR RESIDENTIAL PROPERTIES WITHIN A CALENDAR YEAR AND REQUIRING CITY COUNCIL EVALUATION OF THE
PROGRAM AFTER FIVE YEARS

WHEREAS, The City of Carmel-by-the-Sea is a unique community that prides itself in its historic character; and

WHEREAS, the City has adopted a General Plan and Municipal Code that strive to protect the village character through clear policies and regulations that guide historic preservation; and

WHEREAS, the Mills Act was adopted by the State of California in 1972; and

WHEREAS, jurisdictions are not required to implement the Mills Act; and

WHEREAS, participating jurisdictions may establish specific application requirements to suit local needs; and

WHEREAS, the City adopted the Mills Act as a potential benefit to property owners of historic resources as part of the Local Coastal Program; and

WHEREAS, the City Council recognizes the potential benefits of the program but also the potential fiscal impacts that could result from the unlimited approval of Mills Act Contracts; and

WHEREAS, establishing a limit on the number of contracts that can be approved during any calendar year will allow the City to implement the Mills Act Program without significantly impacting a revenue source that is vital to the City’s operating budget; and

WHEREAS, the City Council shall review the Mills Act Program in five years to determine the effectiveness of the program, evaluate its fiscal impact and to determine whether Contracts shall continue to be offered in the future.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA does hereby:

1. Limit the number of Mills Act Contracts that can be approved for residential properties during any calendar year to three (3).

2. Require the City Council to review the Mills Act Program in five (5) years to determine whether or not to continue offering Mills Act Contracts.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 8th day of June 2010 by the following roll call vote:

AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:

SIGNED,
________________________
SUE McCLOUD, MAYOR
ATTEST:
__________________________________
Heidi Burch, City Clerk