Carmel reopens Mills Act review; council asks staff for policy options including possible nonrenewals

Carmel-by-the-Sea — The City Council on Oct. 6 received a staff presentation on the Mills Act and directed staff to prepare potential policy modifications for future council consideration, including the option of issuing nonrenewal notices for existing contracts, establishing annual-revenue or fair-market-value caps, and exploring alternative incentive programs. The council did not adopt a policy change at the meeting.

Anna Jannett of Community Planning and Building reviewed the state program's intent and the city's local Mills Act history. She told the council the Mills Act is a state-authorized tool that provides property-tax relief to owners who preserve and maintain historic properties and that cities may adopt local program components. Jannett presented corrected tax-roll figures for the 2024-25 tax year and noted that four Mills Act contracts approved since the council's 2023 moratorium materially increased the city's estimated annual tax revenue reduction.

According to the staff…