AgdaPkt 2006-05-08 - Laserfiche WebLink

Browse Search

88 Page 7 Perceived Negative Impacts: . Encumbrance by government on the individual title reports of contributing properties; . Extra design review steps for exterior remodels and demolitions causing time and cost delays in processing applications. . In the case of Mills Act Contracts, yearly inspections by City/HRAC will insure that the contributing properties are maintained in top condition. Alternatives: Take no action or modify the Planning Commission/HRAC recommendation to designate the recommended "Mezesville Historic District" Fiscal Impact: Mills Act Contracts: If the proposal is approved, 51 contributing properties will become eligible for a property tax relief program. These individual contract agreements called "Mills Act/Historic Preservation Agreements provide an incentive for the preservation of its designated historic resources. These individual contract agreements are reviewed by the HRAC and Planning Commission, and require final approval by the City Council. Once adopted, both the City and the County's share of property tax revenue are adjusted yearly according to a formula which is based on the value of a property as well as other indexes (see attached Mills Act Contract summary). In exchange for a reduction in property tax, the property owner of an individual historical structure is required to comply with a long term, high quality maintenance program for the historic property. In concept, the money saved on the property taxes is expected to be re-invested into the subject historic dwelling. Properties purchased before Proposition13 would not benefit from this program. Assuming that one property in six eligible properties enters into a Mills Act contract with the City (which is the current average), the fiscal impact on the City would be relatively negligible in relation to the overall City budget*. Since each Mills Act contract has a minimum ten year contract period, the resulting benefit would have a positive and long term impact on the individual property as well as the neighborhood streetscape and district. Joel Pattterson munity Development Director ~/ Attachments: 1. District Map and attachment sent to neighbors 2. Secretary of Interior's Standards for Rehabilitation (summary) 3. Planning Commission minutes of November 15 and September 6,2005, and March 21,2006, HRAC minutes of July 14, 2005 meeting, HRAC letters to property owners, public meeting notices to neighborhood. 4. Report on Mezesville proposed historic District by Circa Property Development March 2006 (under separate cover) * The City share of the property tax that would be impacted by a Mills Act Contract amounts to 18- 20% of 1 % of the property tax valuation. Assuming an extreme scenario where half of the contributing properties decide to enter into a Mills Act contract and an average property valuation of $400,000, the estimated loss of revenue for the City, assuming a 25% tax break would amount to a total of $20,000.