HomeMy WebLinkAbout2025-01-23; Historic Preservation Commission; Resolution 2025-002RESOLUTION NO.2025-002
A RESOLUTION OF THE HISTORIC PRESERVATION COMMISSION OF THE CITY
OF CARLSBAD, CALIFORNIA, ADOPTING RECOMMENDATIONS TO ENABLE
NEW MILLS ACT PROGRAM APPLICATIONS AND THE CONTINUED
EXPANSION OF THE PROGRAM
WHEREAS, the Mills Act Program provides cities with a mechanism to encourage the
preservation of historic buildings; and
WHEREAS, the city adopted its own local Mills Act Program on Nov. 3, 2022; and
WHEREAS, the Historic Preservation Commission desires to make recommendations to entice
property owners to utilize the Mills Act Program and enable new Program applications.
NOW, THEREFORE, BE IT RESOLVED by the Historic Preservation Commission of the City of
Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. The Historic Preservation Commission supports and recommends the following
measures to be considered by the City Council:
A. Expand awareness of the Program. Direct staff to identify residential and
commercial properties that meet the qualifications and coordinate another
round of direct marketing to ensure that properties with the greatest needs will
receive the most benefit of targeted outreach.
B. Pre-application workshop. With the overall cost, number of hearings, length of
processing time, and potential scope of preservation or restoration efforts to be
undertaken, there is a perceived barrier to participate, especially for a single-
family homeowner and small commercial property owner to navigate. Although
city staff already created an informational bulletin to increase awareness about
the Program, direct staff to conduct and record (for distribution) a virtual pre-
application workshop to supplement existing educational materials.
C. Amend existing Program fee structure. The city has established a series of fees
to cover a portion of the city's expenses associated with processing individually
submitted historical nominations and Mills Contract Program applications. As of
this writing, a majority of the cost associated with the designation of individually
submitted historical resources is paid for by General Fund revenue (adopted fees
recover only a portion of the total cost). From FY 2025-2026 through FY 2026-
2027, waive the Mills Act Contract processing fee so that no fee is charged for
submitting a Mills Act Contract application. Waiving the fee during a two-year
period would encourage property owners to participate in the program. The cost
recovery fee would be re-instituted during the FY 2027-2028 budget hearings in
June 2027. The applicant would still be responsible for paying other applicable
processing fees. Moreover, the applicant would be responsible for ensuring that
any documents are properly recorded by the County Recorder's Office.
D. Simplify Permit Materials. Review and develop standardized rehabilitation and
maintenance plan (10-year work plan) templates and create a template for
historical assessment reports, thereby reducing overall costs to applicants.
E. Monitor the Program. As a measure to track the Program and balance its use
with an annual loss of tax revenue, the Community Development Department
must submit a report and schedule a meeting before the Historic Preservation
Commission every two years regarding the status of the Mils Act Program. This
will help provide oversight of the program where no monitoring mechanism is
currently required.
F. Eligible expenses. The Mills Act Agreement, after being recorded with the
county, usually provides substantial property tax reduction to the property
owner. The Mills Act is not intended to be a subsidy for those seeking to remodel
their property or a tool to assist with mortgage payments. The purpose of the
program is for the funds saved in property taxes to be utilized for the
rehabilitation and maintenance of the property and all work must conform to
the Federal Guidelines developed for the treatment of historic properties,
known as the Secretary of the Interior's Standards for Rehabilitation. In general,
the total cost estimated in a 10-year work plan should equal the approximate
amount of property tax savings over the first ten-year term of a Mills Act
Contract. Future Mills Act Contracts should acknowledge that any qualified
rehabilitation and restoration work that commenced up to two years before the
establishment of the Contract may be indicated on the ten-year work plan.
Examples of eligible work should be expanded to include consulting and
professional fees. Moreover, any new addition or structure completed on the
property shall be excluded from the Mils Act valuations.
3. The city greatly values the preservation of its historical resources and neighborhood
character which occurs as a result of the designation of historical properties. The city
wishes to comply with the requirements of the Mills Act by providing a framework for
local interpretation and application of the provisions of the Mils Act, as a means of
maximizing local control of, and confidence in, the Program. They should be
interpreted to supplement, rather than supersede, statutory requirements and Mils
Act Contract obligations.
PASSED, APPROVED AND ADOPTED at a Special Meeting of the Historic Preservation Commission of
the City of Carlsbad on the 23rd day of Jan ., 2025, by the following vote, to wit:
AYES: Majer, Diaz, Jacobs, May
NAYS: None.
ABSTAIN: None.
ABSENT: Patty Schreibman
MIKE STRONG, Assistant Director of Community
Development