AR 051507 Mills Act - Steven and Clara Guerrero

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ITEM #11 CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF May 15, 2007 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: DAVID R. ZAMORA, COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: HISTORIC PRESERVATION AGREEMENT ("MILLS ACT") 280 East F Street — STEVEN & CLARA GUERRERO, OWNERS DATE: FEBRUARY 15, 2007 BACKGROUND: On November 24, 2003, by Resolution No. R-131-03, the City Council designated the residence located at 280 East F Street, Colton, California as Historic Landmark No. 51. The resolution stated the 'structure is historically significant and should be designated as a permanent historic property in the City of Colton.' As a qualified historical structure, the owners of the property may enter into an historical property preservation agreement. A residential building may be eligible as a qualified historical property if it is privately owned, is not exempt from property taxation, and meets either of the following criteria: a) Listed in the National Register of Historic Places, or located in a National Register Historic District; or b) Listed in any state, city, county, or city and county official register of historical or architecturally significant sites, places or landmarks. The Mills Act, codified in California Government Code Article 12, sections 54080 — 54090 and California Revenue and Taxation Code, Article 1.9, sections 439 — 439.4, enables the City of Colton to enter into an agreement with a property owner for the preservation and protection of an historic property for a minimum of ten (10) years or penalties apply. At the end of the ten-year period, the agreement automatically renews each year unless either party elects not to renew. Such an historic property preservation agreement is commonly referred to as a "Mills Act Contract". The City of Colton currently has ten (10) qualified historic property preservation agreements, or Mills Act Contracts, recorded with the San Bernardino County Recorder. DISCUSSION/ANALYSIS: The Mills Act allows property owners to voluntarily enter into historic property preservation agreements with local governments pursuant to Sections 50280-50290 of the California Government Code. These properties then qualify for the property tax incentives contained in Section 439.2 of the California Revenue and Taxation Code. The incentive is a reduction in the property's assessed value, hence a lower property tax. The intent is for the respective owner to redirect the property savings into the preservation of the property, employment of local contractors and purchase of restoration materials. The property owner agrees to preserve the historic