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Council pauses proposed termination of two Mills Act contracts to allow one final outreach

City Council / Authorities concurrent meeting (City of Santa Clara) · January 28, 2026
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Summary

Staff recommended terminating two Mills Act historic-preservation agreements after unsuccessful compliance outreach; council voted to continue the hearing to March 10 to allow one last outreach to owners (including a bank owner) before making a final decision.

City staff recommended terminating two historic-property preservation agreements (Mills Act contracts) for properties at 1711 Main Street and 906 Monroe Street/1341 Homestead Road after repeated, unsuccessful outreach in the 2024 compliance audit cycle.

Staff said they had conducted phases of outreach (mailed letters, emails, certified mail, and in-person code-enforcement delivery) spanning 2024-2025 and offered multiple options for compliance documentation, including photographs, invoices, or on-site inspections. For 1711 Main Street, staff said owners submitted two emails referencing building-permit activity, but the city's permit database showed no corresponding permits; staff requested additional documentation and an on-site inspection but did not receive sufficient evidence of compliance. For 906 Monroe, staff reported the property is now bank-owned (Lam Partners) and that outreach attempts including phone calls and certified mail produced no response.

If the council accepts the staff recommendation to cancel a Mills Act contract, owners face a cancellation fee equal to 12.5% of the property's fair-market value, payable to the county auditor. Staff also stressed that a property removed from Mills Act tax relief remains on the historic-resources inventory and is still subject to the city's historic-preservation ordinance; future alterations would require review.

Several council members expressed concern about the consequences for historic homes—particularly where owners may be elderly or where bank ownership raises the risk of disrepair—and asked staff to perform one last outreach effort. The City Manager offered to conduct final outreach and staff identified March 10 as a reasonable date to return with results. The council voted unanimously to continue the hearing to March 10, 2026, so owners or the bank have one final opportunity to respond before the council considers termination and any fee.