REPORT TO COUNCIL
SUBJECT
Title
Action to Set January 27, 2026 for a Public Hearing to Consider Cancellation of two Mills Act Contracts
Report
BACKGROUND
The Mills Act is an economic incentive program designed to encourage the restoration and preservation of qualified historic buildings by private property owners. Enacted in 1972, the legislation authorizes participating local governments to enter into contracts with owners of eligible historic properties. In exchange for property tax relief, owners agree to actively maintain and restore their properties.
The Planning Division of the Community Development Department administers the Mills Act program for the City of Santa Clara. As part of the program, the City conducts audits of Mills Act properties every five years to ensure compliance with approved ten-year restoration plans. The last audit was conducted in 2017; however, the scheduled 2022 audit was postponed to 2024 due to the COVID-19 pandemic.
During the audit, property owners are required to submit documentation demonstrating compliance with their restoration plans. Acceptable documentation includes receipts, invoices, photographs, and other records of eligible improvements and maintenance work.
At the conclusion of the 2024/2025 Mills Act Audit, two property owners failed to provide the required documentation or respond. As a result, contract termination proceedings are being initiated for both non-responsive properties.
DISCUSSION
Upon entering into a Mills Act Contract, property owners sign a Historic Property Preservation Agreement with the City, which is also recorded with the County. This agreement requires owners to furnish any information requested by the City to verify compliance and outlines both nonrenewal and termination procedures.
There are currently 132 Mills Act properties in the City of Santa Clara. As part of the 2024/2025 audit process, all property owners were contacted via mail and/or email and asked to submit self-reported doc...
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