AgdaPkt 2007-11-05 - Laserfiche WebLink

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owner of 10 years unless cancellation is requested. As a result of such agreements, early tax savings can be channeled towards the long term maintenance of a property according to clear historic rehabilitation standards. Staff/HRAC conducts yearly inspections to insure the above. If contract cancellation is requested prior to the completion of the 10 year period, the property owner is then subject to financial penalties which are proportional to the tax benefits granted during contract period and collected by the Tax Assessor. 6.1G Page 5 General Questions: Q: Why should the City provide property tax relief benefit to this particular building? A: The Historic Preservation Ordinance has very specific criteria that properties must meet in order to be designated as a Historic Landmark and thus become eligible for the Mills Act property tax relief program. As a result, a relatively minute number of properties are eligible for this program Le. out of approximately 16,000 residential parcels only 96 are eligible for this program, (seven Mills Act Contracts have been approved by Redwood City since 1990) Q: What is the revenue loss to the City? A: Once granted a Mills Act Contract, a property owner saves approximately 40% to 60% of the individual assessed tax valuation of the property. Since the City collects approximately 20% of the 1 % of property valuation tax, an estimated loss of revenue to the City for a property valuated at $750,000 would be $560 (40%) to $840 (60%) anually. Q. How does this benefit the City? A. Because of the yearly maintenance inspection requirement associated with Mills Act contracts, a mandated design review process for exterior changes and required compliance to the Secretary of Interior's Standards, the City gains a powerful tool to insure the long term preservation of properties under contract. Property owners commit to a high quality maintenance program which typically affects the property values of the neighborhood and reflects positively in Community pride and character. GENERAL PLAN AND ZONING COMPLIANCE Mills Act Contracts for the long term preservation of the Community's historic resources is one of the primary goals and objectives of the Historic Resource Element of the General Plan. The historic designation does not affect the zoning regulations which are currently applicable to the subject property. ENVIRONMENTAL REVIEW The proposed historic designation seeks to insure the long term preservation of the subject resource which is exempt from CEQA (California Environmental Quality Act) review, per section 15331, Class 31 of the CEQA guidelines. PUBLIC NOTIIFICATION None required, however the applicants were notified.