REPORT TO COUNCIL
SUBJECT
Title
Public Hearing: Action to Terminate Two Historic Property Preservation Agreements (Mills Act Contracts) at 1711 Main Street and 906 Monroe Street / 1341 Homestead Road
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 in accordance with an approved ten-year restoration plan.
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 restoration plans. The most recent audit occurred in 2017; the audit originally scheduled for 2022 was postponed until 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. Property owners may also choose to schedule an on-site inspection with City staff in lieu of submitting documentation.
Despite repeated outreach attempts by staff, one property owner did not respond to the audit and another property owner did not submit adequate documentation. As a result, these properties were identified as noncompliant with the requirements of their Historic Property Preservation Agreements and are subject to cancellation of their Historic Property Preservation Agreements (Mills Act Contracts).
DISCUSSION
Upon entering into a Mills Act Contract, property owners sign a Historic Property Preservation Agreement with th...
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