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Committee advances 10 Mills Act historic-property contracts, tables one withdrawn application

San Francisco Board of Supervisors Budget and Finance Committee · December 16, 2013
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Summary

The committee forwarded 10 Mills Act historic-property contracts (items 2–7 and 9–12) with positive recommendation to the full Board, and tabled Item 8 (70 Carmelita) after the applicant withdrew; the Budget Analyst reported an estimated 10-year property tax revenue reduction and recommended exemptions to Mills Act eligibility thresholds.

The Budget and Finance Committee on Dec. 16 recommended forwarding a package of Mills Act historic property contracts to the Board of Supervisors, and voted to table one withdrawn application.

Supervisor Scott Wiener framed the items as the product of recent legislation he authored to streamline the Mills Act application process and said the current package represents an unusually large group of smaller properties seeking Mills Act benefits after amendments to local procedures. Susan Parks of the Planning Department and representatives from the Historic Preservation Commission summarized 11 applications: nine single-family residences, one three-flat and one commercial property. Most applications (seven) are contributors to the newly designated Duboce Park Landmark District, and the Planning Department recommended approval consistent with the Secretary of the Interior standards and the Historic Preservation Commission’s unanimous recommendations.

Budget analyst Mr. Rose reported estimated fiscal effects tied to the Mills Act agreements. He said the analyst’s table estimated an aggregate reduction in property tax revenues to the city over the initial 10-year agreement period of approximately $1,521,290 and an estimated reduction in FY2014–15 of $854,869 (including existing agreements). The analyst recommended amendments to authorize exemptions to the Mills Act eligibility limits for single-family and commercial properties (noted in the record as $3,000,000 and $5,000,000 thresholds) and recommended directing the director of property to submit an annual report detailing, among other items, original approval dates, annual property tax amounts under the agreement, percent reductions and revenue impacts.

Mike Buehler of San Francisco Heritage spoke in strong support of the package and encouraged committee endorsement. During the meeting Supervisor Wiener moved to table Item 8 (70 Carmelita) because the application had been withdrawn and to move forward with the remaining items (2–7 and 9–12) as amended; both motions were taken without opposition. The committee asked departments to submit the revised or amended resolutions to the clerk by 9 a.m. the next morning.