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8.B. - Page 4 of 66 Figure 3: Front Entrance to 970 Edgewood MILLS ACT CONTRACT If the property is deemed to be historic under Redwood City's designation criteria, then the home would qualify for consideration of a Mills Act Contract. Mills Act Contracts, are considered by numerous local governmental agencies and preservationists throughout California as one of the most beneficial historic preservation incentives available today. Mills Act Contracts provide for yearly property tax savings for the owner that can be channeled towards the long-term maintenance of the property and preservation of the historic resource. The minimum duration for Mills Act Contracts is 10 years. One additional year is automatically added to the contract term each year unless the City and/or property owner elect to not renew, and the contract transfers in the event the property is sold to another party. Once approved, each contract is recorded against the title of the subject property and the information forwarded to the County Assessor's office. The initial Mills Act Contract includes a 10 -year schedule of proposed maintenance and improvements. Along with the historic evaluation, the homeowner has also provided a cover letter and a 10 -year schedule of improvements detailing proposed maintenance and upgrades from 2021-2030 (Attachment B). Once granted a Mills Act Contract, a property owner may save as much as 40%-60% of the individual assessed tax valuation of the property. Since the City collects less than 20% of the 1% of the assessed value of the property, an estimated loss of revenue to the City for a property valued at $1,000,000 would be approximately $800 to $1,200 per year. Redwood City adopted a Mills Act program in 1990, and there are currently 31 active Mills Act Contracts on file with the City. Page 4 of 6 AL . City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 462