Carmel-by-the-Sea City Council convened on October 6, 2025, to discuss significant changes to the city’s historic preservation policies, focusing on the Mills Act and potential incentives for property owners. The meeting highlighted a growing concern over the effectiveness of current regulations in a rapidly appreciating real estate market.

Council members expressed a consensus on the need for policy modifications, emphasizing that no decisions were made during the meeting. Instead, they provided feedback to staff for future consideration. Mayor and council members discussed the possibility of issuing non-renewal notices on existing contracts related to the Mills Act, which offers tax incentives for the preservation of historic properties.

City staff was directed to prepare a policy resolution that would not only address the non-renewals but also explore amendments to the municipal code regarding the Mills Act. Council member Jeff suggested that an incentive program could be beneficial, proposing that reduced planning and building fees could encourage property owners to maintain their historic homes.

The discussion also touched on the differentiation between renovation and maintenance, with some council members advocating for alleviating fees associated with historical reviews rather than general permit fees. The intent, they clarified, is to support homeowners while ensuring the preservation of the city’s historic character.

As the council moves forward, they aim to present a comprehensive solution that addresses these concerns holistically, with further discussions anticipated in future meetings. The moratorium on new contracts remains in effect, allowing time for these critical policy evaluations.