Agda Pkt 2025.12.08 Joint SA PFA

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Page 2 of 7 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org STRATEGIC PLAN GUIDING PRINCIPLE Excellence in Government Operations BACKGROUND - MILLS ACT PROGRAM The Mills Act, enacted by the California legislature in 1972, and implemented by Redwood City in 1990, is an economic incentive program for the restoration and preservation of qualified historic buildings by private property owners. The Mills Act grants participating local governments (cities and counties) the authority to enter into contracts with owners of qualified historic properties who actively participate in the rehabilitation, restoration, preservation, and maintenance of their historic properties. Since the costs of doing so can be prohibitive, the property owner, in turn, receives 40-60% property tax relief to offset some of these costs. Because 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. If the property is a qualified historic resource under Redwood City’s designation criteria (Chapter 40.6), then the home would qualify for consideration of a Mills Act Contract (“Contract”). Contracts are considered by numerous local governmental agencies and preservationists throughout California as one of the most beneficial historic preservation incentives available today. Contracts include a schedule of proposed maintenance and improvements that the owner agrees to complete, which may be spread over the 10-year period (the minimum Contract duration). After 10 years, one additional year is automatically added to the contract term every year unless the City and/or property owner elect not to renew. No new improvements are required to be identified upon completion of the Contract, but the property must continue to be maintained per the City’s historic designation criteria (Section 40.6) and Secretary of Interior’s Standards for Rehabilitation. The City may cancel the Contract for breach or failure to protect the historical property. If necessary, the City may also take legal action to enforce the Contract. Contracts run with the land in the event the property is sold or otherwise transferred to another party, and subsequent property owners are responsible for maintaining/complying with the terms of the agreement. Prior to 2012, many of the adopted 10-year plans gave approximate timeframes or were not specific to when the improvements would occur. This practice changed around 2012, and applicants have since provided a yearly schedule of such improvements. Certain improvements or maintenance measures are often repeated annually in the improvement schedule, such as the upkeep of landscaping or preservation of characteristic building features. Typically, the more critical or major improvements have been targeted towards the beginning of the 10- year plans. Such improvements may include, but are not limited to, roof inspection/replacement, seismic, and structural upgrades. Planning staff work with the applicant to ensure that an adequate number of improvements have been identified through the duration of the contract and the Historic Resources 8.B. - Page 2 of 17 243