Historic Landmarks Commission forwards Mills Act contracts and exceptions; recommends several approvals

The Historic Landmarks Commission on Aug. 13 reviewed Mills Act contract applications and recommended multiple approvals and referrals. Staff said the proposed 10‑year rehabilitation plans meet the municipal code criteria (SBMC 30.157.0.145) and were reviewed by the HLC designation subcommittee on Aug. 5.

Staff summarized the program mechanics: the Mills Act is a 1972 state law that allows property owners to receive a property tax reduction for restoring and maintaining historic properties. The city adopted its Mills Act program in 2009 and updated rules in 2019. Staff told the commission the city currently has 83 active Mills Act contracts, an estimated annual revenue loss to the city of about $139,000 for existing contracts, and that with the current batch of eight new applications the estimated annual loss would be $152,584 — still under the city’s overall cap on revenue loss.

First action (HLC recommends Community Development Director approve): the commission recommended approval to the Community Development Director for Mills Act contracts and 10‑year rehabilitation plans for several designated properties that fall under city value thresholds. The group of properties recommended in that motion included 804 Moreno Road, 238 Cannon Drive, 615 East Valerio (Craftsman, 1925), 327 West Figueroa (transitional folk), and 1740 Overlook Lane (George Washington Smith House). The designation subcommittee reviewed the scopes and recommended that the scopes would successfully rehabilitate the buildings.

Second action (HLC refers exceptions / renewals to City Council): for properties exceeding the city’s property‑value limits or requesting renewal, the commission voted to refer applications to the City Council for exceptions or renewal approval. That group included 20 East Los Libos Street, 18 Calle Alamo, 234 Cannon Drive (exemption request), 4212 West Valerio Street (contract renewal), and 2012 Anacapa Street (contract renewal).

Commission action: the commission took roll‑call votes on the motions. The motions to recommend the director approve the first group and to refer the higher‑value/renewal contracts to City Council were both approved by recorded roll‑call votes with the members present voting in favor.

Why it matters: Mills Act contracts lower property taxes in exchange for owners completing rehabilitation work that preserves historic resources. Staff noted most applicants invest substantially more in physical rehabilitation than the estimated fiscal reduction; the program is intended to incentivize private investment in preservation. The commission’s recommendations move the applications forward to the director and City Council where required.