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Council directs notices of non‑renewal for Mills Act contracts amid debate over preservation tools

Carmel-by-the-Sea City Council · August 3, 2026
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Summary

After extensive public testimony from Mills Act participants, the Carmel-by-the-Sea City Council directed staff to issue notices of non‑renewal for all 19 existing Mills Act contracts, starting the 10‑year countdown on those agreements; the motion passed by roll call.

Councilmembers debated the future of the city’s Mills Act historic preservation contracts after a lengthy staff presentation on mechanics and outreach to current contract holders. Staff explained that if the city issues notices of non‑renewal, each contract remains effective but will not receive additional one‑year rollovers and will move to a 10‑year countdown toward expiration. Councilmember concerns included the city’s limited enforcement capacity and the fiscal impacts to the city, county and schools if contracts step down.

Multiple Mills Act homeowners and several long‑time volunteers told council the program is an important tool that helped fund careful historic restorations; owners said the annual maintenance reporting and rehabilitation standards impose meaningful obligations. “We renovated the front steps, we renovated the side porch…we’ve already spent what we would have recouped in 20 years,” one owner said in public comment. After council debate over precedent, fairness and administrative burden, the council voted to direct staff to issue notices of non‑renewal for the existing Mills Act contracts in accordance with each contract’s terms (roll call passed 4–1). Council members who opposed the motion said they favored letting existing contracts run their full current terms to preserve homeowner expectations.