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Committee forwards five Mills Act contracts for historic properties
Summary
The Government Audit and Oversight Committee voted to forward five Mills Act historic‑property contracts (Webster, 1401 Howard/St. Joseph’s, 64 Potomac, 2168 Market/Swedish American Hall, and 2731–2735 Folsom) to the full Board with positive recommendation after Planning staff outlined rehabilitation plans, estimated costs and property‑tax savings.
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Michelle Taylor, preservation planner with the Planning Department, told the Government Audit and Oversight Committee that items 2–6 are five proposed Mills Act 10‑year contracts that reduce property taxes for owners in exchange for maintained rehabilitation plans. “This agreement provides property‑tax reductions to owners of those historic properties who can then allocate the savings toward an appropriate maintenance and restoration plan,” Taylor said during the staff presentation.
Taylor summarized staff review and the five priority considerations used in the department’s evaluations: necessity, distinctiveness, recent landmark designation, investment and legacy business. For the five properties before the committee, staff presented rehabilitation scopes, estimated ten‑year rehabilitation costs, annual maintenance estimates and estimated property‑tax savings.
The packets include a variety of property types: a circa‑1900 Italianate single‑family dwelling at 2251 Webster (rehabilitation work estimated at $113,000 over 10 years and an estimated tax savings of $14,184), St. Joseph’s (1401 Howard), a large restored Romanesque commercial building valued by the Assessor at over $5 million (future work $291,000 over 10 years and estimated savings of $66,974), 64 Potomac (contributing building in DeBose Park Historic District; rehabilitation $126,000 over 10 years), the Swedish American Hall at 2168 Market (rehab work mainly to front entries; staff noted the owner is not receiving a property‑tax savings at this time but seeks Mills Act protections), and 2731–2735 Folsom (Beaux‑Arts, proposed façade restoration and structural strengthening, rehabilitation estimated at $305,000 over 10 years and estimated tax savings of $35,495).
Applicant representatives addressed the committee. Sarah O’Rourke said St. Joseph’s Art Society will use Mills Act support to maintain the building and continue public programming and free tours. “We plan to use the funds so that we can maintain long‑term maintenance of the church,” O’Rourke said. Adele Fang, a co‑owner of 2731–2735 Folsom Street, described planned repairs including wood deterioration and roof work and said the property‑tax savings “will really help offset the cost of these repairs and maintenance for our home.” Ted Olson of the Swedish Society of San Francisco outlined the building’s history and the society’s commitment to ongoing restoration and cultural programs.
No members of the public spoke against or for the items during the committee hearing, and the chair moved to forward items 2–6 to the full Board with a positive recommendation.
If approved by the Board, the contracts would be executed by the Planning Director and the Assessor‑Recorder as authorized under the administrative code provision cited in the committee materials. The committee’s action sends the five Mills Act nominations to the Board for final consideration.
