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HomeMy WebLinkAbout2022-09-12; Historic Preservation Commission; ; Amendments to the city's historic preservation ordinance, including the establishment of a local Mills Act Program (MCA 2022-0003) Meeting Date: Sep. 12, 2022 To: Historic Preservation Commission From: Mike Strong, Assistant Community Development Director Staff Contact: Mike Strong, 760-602-2783, mike.strong@carlsbadca.gov Subject: Amendments to the city’s historic preservation ordinance, including the establishment of a local Mills Act Program (MCA 2022-0003) District: All Recommended Action That the Historic Preservation Commission adopt the resolution recommending that the City Council approve amendments to Carlsbad Municipal Code (CMC) Chapter 2.42 and Title 22 to amend the city’s historic preservation ordinance and establish a local Mills Act program. Executive Summary On Oct. 19, 2021, the City Council directed staff to develop and return with a local Mills Act program for City Council consideration. In addition to the Mills Act program, which is included in this report, staff has included various amendments to the city’s historical regulations in order update the code and to implement prior City Council direction. This work has resulted in a major overhaul to Title 22. After receiving input from the Historic Preservation Commission (Commission) on Nov. 8, 2021, Jan. 10, 2022, and March 14, 2022, amendments to CMC Chapter 2.42 and Title 22 were prepared. Staff recommends that the Commission recommend approval of the proposed changes to City Council by approving the attached resolution (Exhibit 1). Discussion Background In 1985, the City Council adopted an ordinance that set forth procedures to designate historic resources, landmarks, and districts within the city and established the Commission to help administer the program. Properties were brought to the City Council and designated as historic by City Council resolution and with owner agreement through the following years. In 1991, the city commissioned Roth & Associates to complete a historic survey which identified and evaluated more than 300 sites with potential historic significance in Carlsbad. This survey Sept. 12, 2022 ITEM 2 1 of 106 HISTORIC PRESERVATION COMMISSION Staff Report was presented before the City Council on (April 16, 1991) and adopted by resolution (Exhibit 2) as the Historic Resources Inventory (Inventory). The Inventory has also been referred to as the Cultural Resources Survey. In response to community concerns, the City Council “deleted” the Inventory in 1993 (Exhibit 3) and stipulated that inclusion of any historic listing under the city’s historic regulations is to be entirely voluntary; that is, by application from property owners. The City Council then directed the Commission to make recommendations for modifying the historic preservation ordinance to make compliance entirely voluntary (Exhibit 3). In 1997, the Historic Preservation Ordinance was amended to modify requirements for historic preservation commissioners and to ensure that designation of any sites, landmarks or districts as historic be voluntary. In 2019, additional amendments were considered by the Historic Preservation Commission, but those amendments were not presented to City Council. The City Council received a report on July 20, 2021, regarding the city’s possible acquisition of the Culver-Myers-Capp house for historical preservation and directed staff to return with more information about the Mills Act program. In response, the City Council received an informational report on Oct. 19, 2021, about the Mills Act and directed staff to revise the city’s historic preservation program to introduce a local Mills Act program for the City Council’s consideration (Exhibit 4). As part of that effort, staff is also proposing a comprehensive update to the historic preservation ordinance which also incorporates some of the proposed 2019 amendments. Proposed Revisions to the City’s Historic Preservation Ordinance Staff is proposing a comprehensive update to the city’s Historic Preservation Ordinance, which includes adopting a local Mills Act program. Below is a summary of the major changes proposed to the Historic Preservation Ordinance.. The proposed changes are provided in underline/strike-out typeface as an attachment the draft resolution (Exhibit 1). The actual ordinance that will be presented to the City Council will be presented as a clean copy, incorporating Commission feedback and any necessary legal changes proposed by the City Attorney’s Office and formatting changes. Clarify Role and Responsibility of the Commission Proposed amendments to Chapter 2.42 seek to clarify the purpose and authorization of the Commission to assist the Commission, its staff, and the general public better understand all matters with which the Commission is concerned. Definitions Added Additional defined terms have been added to help avoid ambiguity or uncertainty regarding the meaning of definitions provided throughout Title 22. Historic Resource, Landmark and District Designation The draft ordinance revises the criteria for designating historic resources, historic landmarks and historic districts. It also updates the designation procedures, including by prohibiting any alterations to the property being considered for historic resource designation for a period of 90 days. The draft ordinance also makes it clear that historic resource designation requires a Sept. 12, 2022 ITEM 2 2 of 106 resolution to be recorded on title per Public Resources Code Section 5029 and California Government Code Section 27288.2. If the Commission and the City Council determine that a property qualifies for the local Register, then the process for removing the property from the local Register is proposed to be the same (i.e., returning to the Commission and City Council to determine that a designated resource no longer qualifies). Owners of designated historic resources would no longer be able to have their properties voluntarily removed from the list of historic resources upon request, as currently provided in Municipal Code Section 22.08.020. A hearing before the Commission and Council would be required. Eliminate References to the Survey/Inventory In 1991, the Cultural Resource Survey was adopted by City Council as the city’s historic resource inventory. Traditionally, an inventory is used as a list of properties that may be eligible for historic designation. However, the city’s inventory was deleted by council in 1993 with direction that no properties should be placed on the inventory without owner consent. Because properties can be designated as a historic resource with owner consent and without first being listed on the inventory, staff is recommending deleting all references to the inventory from the historic preservation ordinance. Projects Affecting Historic Resources on the Local Register Currently, a permit is required for any work on a historic resource, except for ordinary maintenance and repair or to address public health and safety. Under the proposed changes, if the application for work is on a historic resource subject to a historical property contract (Mills Act contract), then the city planner would review the scope of work to make sure it is consistent with the terms of the contract, the Secretary of Interior’s Standards and any applicable local guidelines or standards adopted and issue a permit administratively. If the application is for a property not subject to a historical property contract or cannot be issued administratively, then the City Planner will make a recommendation and the Commission must hold a public hearing to consider the request. The Commission’s decision may be appealed to the City Council. Violations The proposed ordinance would add a mechanism for criminal and administrative enforcement of the historic preservation ordinance. Mills Act • Mills Act Background The Mills Act, enacted in 1972 by the California Legislature, grants participating cities and counties the authority to enter into contracts with the owners of qualified historic properties who actively participate in the preservation, restoration, and maintenance of their historic properties. Property owners would voluntarily submit an application to enter into a Mills Act contract with the city and agree to maintain, and in some cases rehabilitate, their historic properties in exchange for having their property tax reduced. A Mills Act Sept. 12, 2022 ITEM 2 3 of 106 contract can provide property tax reduction benefits for both owner-occupied and income-producing private properties. Once a contract is approved by the City Council, it is recorded with the County and the terms of the contract are binding on the owner. The initial term of the contract is 10 years, and it automatically renews every year to add another year to the term. Once recorded with the County, the contract puts into effect an additional alternative valuation method specified in state law that the County Assessor utilizes each year and can result in a lower property tax bill. More detailed background and information on the Mills Act is included as Exhibit 4. • Proposed Mills Act Program The proposed Mills Act program will be implemented in Title 22 under a new Chapter 22.03, Preservation Incentives for Historic Resources. The Planning Division will be responsible for accepting and processing the applications and new contracts each year. The application forms, sample contract, and an informational bulletin are being developed to help process the contracts. The review process will include public hearings with the Commission for a recommendation and with the City Council for final action on the contracts. The program has been developed to include all of the provisions that are required by state law. These include the law’s historic property eligibility criteria, requirement for historic properties under a Mills Act contract to be maintained per specific historic standards and guidelines (the U.S. Secretary of the Interior’s Standards for the Treatment of Historic Properties as well as the State Historical Building Code), minimum 10-year period for the initial contract, automatic annual renewal, city inspections of the property before a contract is approved and every five years under the contract, provisions for notices of nonrenewal filed by either party, and for the city to cancel a contract if an owner breaches the terms which comes with a penalty the owner has to pay of 12.5% of the property’s full market value. Although staff had previously proposed a limit on the number of Mills Act applications that could be submitted to the city and processed each year, staff has eliminated the limit in response to the Commission’s feedback at the January 2022 work session. • Contract Application Process The draft informational bulletin (Exhibit 6) outlines the review process for Mills Act contracts. Once an application is determined to be complete and ready for consideration, the city would forward the original contract to the owner for notarized signatures. A public hearing would be scheduled with the Commission for a recommendation, which should occur in September. After the owner returns the notarized contract to the city, a public hearing would be scheduled with the Commission, typically in November, for consideration of the Commission’s recommendation before taking final action on the contract. Once a contract is approved by the City Council, the city would be responsible for recording the executed contract with the County Recorder before December 31 of the applicable calendar year. The city would then transmit the contract and the Sept. 12, 2022 ITEM 2 4 of 106 documentation of the description of the property to the San Diego County Assessor’s Office, where the calculation for the exact property tax under the Mills Act would be performed. Contracts that are recorded by December 31should be reassessed by the County by June 30 of the following year, so that a tax reduction would, hopefully, appear on the tax bill of October of that year. Within six months of entering into a Mills Act contract with the property owner, the city would submit written notice of the contract to the State Office of Historic Preservation. • Property Valuation The Mills Act statute requires County Assessors to value properties under a Mills Act contract using a method that typically, but not always, results in a tax reduction for the property owner. A recorded Mills Act contract requires the County Assessor’s Office to determine the value of the historic property based upon its ability to generate income – or the income approach to value – in addition to the regular market-based method of assessment. In the income approach, the County Assessor values the property according to the capitalization of income, whereby the property's potential income is divided by a pre-determined capitalization rate to determine the Mills Act assessed property value. Once the income approach and the regular market-based valuations are completed, the Mills Act requires the Assessor’s Office to use the lowest of the three values for the property tax calculation. Most often, the Mills Act value is the lowest. In the case of an owner-occupied property, the income projection is based on comparable rents for similar properties in the area, or, if insufficient rental information is available, the income that the property could reasonably be expected to produce. The income amount on a commercial property is based on the actual rent received. The Assessor subtracts out a percentage for vacancy and expenses to develop the net income. Mills Act contract participants may realize substantial property tax savings between 40% and 60% each year for newly improved or purchased older properties. Options for Additional Incentives At their meeting on Sep. 12, 2022, the Commission will review potential changes to the city’s historic preservation ordinance and consider recommending adoption of a local Mills Act program. Since funding historic preservation projects can be challenging due to often limited funding options, the Commission may want to review and consider other types of incentive programs to help support local historic preservation efforts. Exhibit 5 provides a brief outline of some of the options that may offered to supplement Mills Act contracts. (These options have not yet been reviewed by the City Attorney’s Office and are subject to legal review.) The additional incentives and benefits that are offered for consideration are both regulatory and non-regulatory. They include expanded use of a historic property which is generally provided for in Title 21; development standard flexibility such as parking and setbacks; official recognition or awards by the Commission; and notice about façade preservation easements that an owner can enter into per state law as a tax incentive. Staff suggests that the Commission consider and discuss other incentives at their Sep. 12, 2022 meeting. Sept. 12, 2022 ITEM 2 5 of 106 Note that Title 21 already has an incentive in place for historic or architecturally significant properties to apply for and obtain a conditional use permit to use their property as a bed and breakfast inn. Any additional incentives recommended by the Commission will be forwarded to the City Council to consider as a future implementation action item (i.e., presented at a later date). Fiscal Analysis The cost associated with the preparation of the draft ordinance is included within the City Attorney and Community Development Department budgets. Approximately $40,000 in funds needed for a professional services agreement with a consultant was included in the fiscal year Community Development Department budget. Delcamp Preservation & Planning was contracted by the city in 2021 to perform these professional services and help develop the Mills Act Program. It is anticipated that at project close-out, all consultant-related costs will fall below the budget amount. Direct budget implications in future years would also include staff resources and/or other direct expenses to support the implementation of the Mills Act. These costs could be offset by Mills Act application fees and, if desired, any inspection monitoring fees established by the City Council. The current, adopted Master User Fee Schedule does not recover the full cost of providing city planning services for receiving and reviewing local Register designation or Mills Act contract applications. If the ordinance is adopted as established, without any amendment or change to the Master User Fee Schedule, there would be an on-going General Fund subsidy to process local Register designation or Mills Act contract applications, which would shift funds away from other critical and high priority programs that may not have similar cost recovery options. As of this writing, city staff intends to recommend that the City Council establish one-time and/or recurring fees associated with the local Register and Mills Act contract applications. Those fees will be calculated and presented to the City Council directly. Typically, the Commission will not review proposed amendments to Master User Fee Schedule because user fees are not within their purview. However, a brief discussion about potential fee structure will be presented during the Sep. 12, 2022 presentation because of the relationship and co-dependence that the fees might have to the successful implementation of the program. Furthermore, the Sep. 12, 2022 Commission meeting will provide additional public input opportunities regarding any fee rates that might be proposed. Environmental Evaluation (CEQA) The California Environmental Quality Act (“CEQA”), and its implementing regulations (“CEQA Guidelines”) adopted by the Secretary of the California Natural Resources Agency, list classes of projects that have been determined not to have a significant effect on the environment and as a result are exempt from further environmental review under CEQA. City staff completed a review of the project and potential environmental impacts associated with the project pursuant to CEQA and concluded that the project qualified for an exemption pursuant to CEQA Guidelines sections 15308 (Actions by Regulatory Agencies for Protection of Natural Resources) and 15331 (Historical Resource Restoration/Rehabilitation). On a separate and independent basis, the project also qualifies for the “Common Sense” Sept. 12, 2022 ITEM 2 6 of 106 exemption, covered by the general rule under State CEQA Guidelines section 15061(b)(3). In making this determination, the City Planner has found that none of the exceptions listed in CEQA Guidelines section 15300.2 of the state CEQA Guidelines or CMC Chapter 19.04 apply to this project. The CEQA Determination letter is attached to this staff report as Exhibit 7 and demonstrates that the project is categorically exempt from further environmental review. With the appropriate environmental clearances in place, all of the city’s procedural requirements and relevant aspects of CEQA have been satisfied. A Notice of Exemption will be filed by the city planner upon final project approval. Public Notification and Outreach In general, during the meetings at which the Commission and City Council consider the changes and draft ordinance documents, the public have the opportunity to address the Commission and Council directly. In addition, members of the public may submit written comments to the Commission and Council in advance of their respective meetings. As the planning process moves forward, all correspondences received will become part of public record and will be attached to the City Council staff report, along with the Commission’s recommendation. On March 14, 2022, the Commission hosted a work session to discuss the framework of the Mills Act program. This in-person meeting was advertised to business groups (i.e., the Carlsbad Village Association Board, North County Economic Development Council, Carlsbad Chamber of Commerce, and Building Industry Association); community groups (i.e., North County Association of Realtors and the Carlsbad Historical Society); and direct mailers to approximately 350 potentially eligible historic properties in the city. The reach of project awareness was shared beyond that amount through the use of social media, electronic flyer distribution, etc. to different user groups and interested parties. This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to scheduled meeting date. Exhibits 1. Draft Historic Preservation Commission Resolution 2. City Council Resolution No. 91-114 3. City Council Resolution No. 93-151 4. October 19, 2021 City Council staff report 5. Options for Incentives 6. Draft Informational Bulletin 7. CEQA Determination Sept. 12, 2022 ITEM 2 7 of 106 A RESOLUTION OF THE HISTORIC PRESERVATION COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL APPROVE AMENDMENTS TO CARLSBAD MUNICIPAL CODE (CMC)CHAPTER 2.42 HISTORIC PRESERVATION COMMISSION AND TITLE 22 HISTORIC PRESERVATION. WHEREAS, Carlsbad Municipal Code (CMC) Title 22 provide the foundation for the protection and preservation of historic structures in the city; and WHEREAS, on October 19, 2021, the City Council provided direction to city staff to update CMC Title 22 relating to historic preservation and Mills Act implementation; and WHEREAS, a public meeting notice was published in the Coast News on August 19, 2022 for the public meeting on August 29, 2022; and WHEREAS, the August 29, 2022 Historic Preservation Commission meeting was postponed to September 12, 2022; and WHEREAS, the Historic Preservation Commission held a public meeting on September 12, 2022, to discuss and consider proposed amendments to the Municipal Code. NOW, THEREFORE, BE IT HEREBY RESOLVED by the Historic Preservation Commission of the City of Carlsbad as follows: A)That the foregoing recitations are true and correct. B)That the Commission recommends to the City Council the APPROVAL of amendments to Chapter 2.42 and Title 22, provided as Attachment 1 to this Resolution. HISTORIC PRESERVATION COMMISSION RESOLUTION NO. HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 1 of 24 Sept. 12, 2022 ITEM 2 8 of 106 -2- PASSED, APPROVED, AND ADOPTED at a regular meeting of the Historic Preservation Commission of the City of Carlsbad, California, held on September 12, 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Chad Majer, Chair CARLSBAD HISOTRIC PRESERVATION COMMISSION ATTEST: SHEILA CROSBY Deputy Library Director HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 2 of 24 Sept. 12, 2022 ITEM 2 9 of 106 ATTACHMENT 1  Proposed Municipal Code Amendments  Underline Strikeout Exhibit  This project proposes to amend various sections of the Carlsbad Municipal Code, which are shown in order  by section number, with strikeout typeface (i.e. strikeout) illustrating deletions and underline typeface (i.e.  underline) illustrating new text.   A clean‐copy of the proposed changes will be provided as an attachment to the ordinance that is presented  to the City Council for review and consideration.  SECTION 1: TITLE 2, ADMINISTRATION AND PERSONNEL Chapter 2.42 Historic Preservation Commission 2.42.040 Duties. Duties of the historic preservation commission are as follows: A. The commission shall act in an advisory capacity to the city council, planning commission, housing commission, and design review board in all matters relating to the identification, protection, retention, and preservation of historic resourcesproperties within the city. B. It shall be the responsibility of the commission to provide advice to the city council on the following matters: 1.Criteria for guidelines to be used in a comprehensive historic survey of properties within the city; 2.The designation of historic resources and historic districts; 3. Maintaining the Carlsbad historic resources inventory adopted by the city council; 4. Hiring of staff or consultants to conduct a comprehensive survey of properties within the boundaries 2. Recommending properties of historical significance for listing in the National Register of Historic Places or the California Register of Historical Resources; HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 3 of 24 Sept. 12, 2022 ITEM 2 10 of 106     3. Different ways to increase the public’s understanding of the city to identify historical sites and areas; 5. Participationand involvement in andhistoric preservation programs including but not limited to the promotion and dissemination of public information, education, and interpretive programs pertaining to historical areas and sites; 6. 4. Cooperation with local, county, state, and federal governments in pursuit of the objectives of historic preservation; and 7. 5. The approval, conditional approval or denial of preservation benefits and incentives; and 6. Any other matter which the commission deems necessary to identify or protect historical resources. C. The commission shall be responsible for: 1. Publicizing and periodically updating survey results; 2. Maintaining a Carlsbad historic resources inventory; 3. 1. Investigating and reporting to the city council on the use of various federal, state, local, or private funding sources available to promote historic preservation in the city; 4. 2. Rendering advice and guidance, upon the request of the property owner or occupant, on the restoration, alteration, decoration, landscaping,any matter related to historic, cultural or maintenance of any historical area or sitearchitectural resources; 3. As part of the environmental review of development projects affecting historic buildings or structures, as identified in the environmental study, the commission may review and comment upon the adequacy of the environmental document during the public review period under the California Environmental Quality Act or the National Environmental Policy Act. Absent a request for an extension of the public review period, the commission’s failure to comment within the advertised public review period shall indicate that the commission has no comment to make; and 5. 4. Performing any other functions that may be designated by the city council. HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 4 of 24 Sept. 12, 2022 ITEM 2 11 of 106     SECTION 2: TITLE 22, HISTORIC PRESERVATION Chapter 2.02 General Regulations and Administration 2.02.010 Short title. This title shall be known as the “Historic Preservation Ordinance.” Compliance with this chapter shall be voluntary. 2.02.020 Purpose and intent. It is the intent and purpose of this title to: A. Effect Provide a means to promote preserve, protect and accomplish the protection, enhancement and perpetuation ofenhance historic resourcesproperties that represent or reflect elements of the city’s cultural, social, economic, political and architectural history; B. Safeguard the city’s historic heritage by encouraging preservation of its historic resourcesproperties; C. Stabilize and improve property values; D. Foster civic pride in the character and accomplishments of the past; E. Protect and enhance the city’s historic attractions for residents, tourists and visitors and serve as a support and stimulus to business and industry; F. Strengthen the economy of the city; G. C. Promote the use of historic districts and landmarksHistoric Resources, Historic Landmarks and Historic Districts for the education, pleasure and welfare of the people of the city. ; and D. To provide preservation benefits or incentives to property owners who voluntarily wish to preserve any structures, buildings, sites, artifacts, or landscape features, or portions thereof with historic authenticity, integrity, value, and/or importance. HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 5 of 24 Sept. 12, 2022 ITEM 2 12 of 106     2.02.030 Boundaries and areas of application. This title shall apply to all historic resourcesreal property, publicly and privately owned, within the corporate limits of the city. 2.02.040 Definitions. For the purpose of this chaptertitle, the following words and phrases shall have the following meanings: “Alteration” means any change or modification, through public or private action, of any nominated historic resource historic resource, or of any property located within a historic district, including, but not limited to, exterior changes to or modifications of, a structure or any of its architectural details or visual characteristics, including doors, windows, paint color and, surface materials and texture, grading, surface paving, addition of new structures, cutting or removal of trees and other natural features, disturbances of archeological sites or areas, and the placement or removal of any objects such as signs, plaques, light fixtures, street furniture, walls, fences, steps, plantings, and landscape accessories affecting the historic qualities of the property. “Character-defining feature” means all those visual aspects and physical features that comprise the historical appearance and significance of the property including but not limited to overall building shape; architectural elements embodying style; design; craftsmanship; decorative details; proportions; general arrangement and components of all surfaces including but not limited to the kind, color or texture of the building materials and the type and style of all windows, doors, lights, signs and other fixtures appurtenant to the building and/or property; and includes interior visual aspects and physical features that are specifically stated as included in the property’s historic designation. “Commission” means the historic preservation commission established by this title. “Contributing resource” shall mean a building, structure, site, artifact, or landscape feature, or portion thereof, which by location, design, setting, materials, workmanship, feeling, or association adds to the sense of authenticity, integrity, value, and/or importance of an historical district. "Demolition" shall mean the dismantling, razing, wrecking, or destruction in whole or in part of an Improvement. “Director” means the community development director, or designee. HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 6 of 24 Sept. 12, 2022 ITEM 2 13 of 106     “Historic district” means anya geographic area which contains several historic resources or landmarks which have special character or special historical value, or which represent one or more architectural periods or styles typical to the possesses a significant concentration, linkage, or continuity of improvements united historically, culturally, or architecturally by plan, history of the city, that , or physical development and which has been designated a historic district pursuant to the provisions of this titleTitle. “Historic landmark” means any property or improvement, manmade or natural,Historic resource which has specialmeets the designation criteria for a historic, cultural, architectural, archeological, or community interest or value as part of the development, heritage or history of the city, the State of California, or the nation, landmark and that has been designated as a historic landmark pursuant to the provisions of this title.Title. “Historic resource” means sites, places, areas, landscape, buildings, structures, signs, features, or other objects of scientific, aesthetic, educational, cultural, architectural, or historic significance to the citizens of the city and includes both historic landmarks and historic districts.an improvement which has been determined to meet the eligibility criteria for historic resources and has been designated a historic resource by the city council pursuant to the provisions of this Title. Historic resources include local historic landmarks, contributing resources to a historic district, and qualified historical properties. “Historical property contract” means a contract between the city and the owner of a qualified historical property, which meets the requirements of California Government Code Sections 50280-50290 and the applicable provisions of this Title. The terms “historical property contract” and “Mills Act contract” are used interchangeably throughout this Title. “Improvement” means any building, structure, site, artifact, or landscape feature, or portion thereof constituting a physical betterment of real property, or any part thereof. “Mills Act” means the historic preservation incentive codified in California Government Code Sections 50280-50290 and California Revenue and Taxation Code Sections 439-439.4, as it exists now or as it may be amended. “Nominated Historic Resource” means a resource nominated for placement in the City of Carlsbad Historic Resource Register as provided for in this Title. “Non-contributing resource” means all resources within a City of Carlsbad historic district that are not designated as contributing resources. HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 7 of 24 Sept. 12, 2022 ITEM 2 14 of 106     “Ordinary maintenance and repair” means construction, work or modification of real property, for which a building permit is not required by this code, and where the purpose and effect of such construction, work or modification is to correct deterioration or damage to a building, structure, site, artifact or landscape feature, or portion thereof and to restore the same, as nearly as may be practicable, to its condition prior to the occurrence of such change, deterioration, damage, destruction, or adverse effect. “Preservation” means the act or process of applying measures to sustain the existing form, integrity, or materials of a historic resource. It may include stabilization work, as well as ordinary maintenance and repair. “Professional qualification standards” means the United States Secretary of the Interior’s Professional Qualification Standards which include the minimum education and experience required in several disciplines to perform identification, evaluation, registration, and treatment activities for archaeological and historic properties, as provided by Part 61 of Title 36 of the Code of Federal Regulations. “Qualified historical property” shall have the same meaning as defined in Government Code Section 50280.1 as it now exists or as it may be amended. “Reconstruction” means the act or process of reproduction through construction of the exact form and detail of a vanished building, structure, site, artifact, or landscape feature, or portion thereof, for the purpose of replicating its appearance as it appeared at a specified period of time. “Register” means the City of Carlsbad Historic Resource Register. The local register is an inventory of Improvements designated by the city council. “Rehabilitation” means the act or process of returning a property to a state of utility through repair or alteration which makes possible an efficient contemporary use while preserving those portions or Character-Defining features of the property which are significant to its historical, cultural or architectural authenticity, integrity, value, and/or importance. “Restoration” means the act or process of accurately depicting the form, features, and character of a property as it appeared at a particular period of time by means of the removal of features from other periods in its history and reconstruction of missing features from the restoration period. HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 8 of 24 Sept. 12, 2022 ITEM 2 15 of 106     “Secretary of the Interior’s Standards” means the United States Secretary of the Interior’s Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring & Reconstructing Historic Buildings. The Standards for the Treatment of Historic Properties are codified at Part 68 of Title 36 of the Code of Federal Regulations, as it exists now as it may be amended. 22.02.050 Review of environmental documents. As part of the environmental review of development projects affecting historic structures, archeological or paleontological sites, as shown on the historic resources inventory or as identified in the environment study, the environment documents shall be referred to the historic preservation commission for review. The commission may review and comment upon the environment documents of the referral. The commission shall comment within the public review time limits established by the California Environmental Quality Act. Chapter 2.06 Historic Resources, Historic Landmarks and Historic Districts 22.06.010 Establishment of historic resources inventory. The city shall establish and adopt a historic resources inventory. 22.06.010 Establishment of City of Carlsbad historic resource register Resolutions adopting designations of historic resources and historic districts shall collectively be known as the City of Carlsbad Historic Resource Register. The list of historic resources in the local register will be kept on file with the City Clerk’s Office. Chapter 2.06.020 Criteria for historic resources inventory. 22.06.015 Historic resource and historic landmark designation criteria A historic resource may be considered and approved by council for inclusion in the historic resources inventory based on one or more of the following: A. It exemplifies or reflects special elements of the city’s cultural, social, economic, political, aesthetic, engineering or architectural history; or B. It is identified with persons or events significant in local, state or national history; or HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 9 of 24 Sept. 12, 2022 ITEM 2 16 of 106     A. Any Improvement may be designated as a historic resource if, upon recommendation of the commission, it is found by the city council to meet the following criteria: 1. The property owner consents to the proposed designation; 2. The Improvement must be at least 50 years old, or have achieved significance within the past 50 years, and exhibit one or more of the following attributes: a. It is associated with events that have made a significant contribution to the broad patterns of local or regional history; or the historic, cultural or architectural heritage of California or the United States; or b. It is associated with the lives of persons important to local, California, or United States history; or c. C. It embodies distinctive characteristics of a region, style, type, period or method of construction, is a valuable example of the use of indigenous materials or craftsmanship or is representative of a notable work of an acclaimed builder, engineer, designer or architect that embodies significant structural, engineering, or architectural achievement; or d. D. It is an archaeological, paleontological, botanical, geological, topographical, ecological or geographical site which It has yielded or has the potential of yielding information of scientific value; orimportant to the prehistory or history of the local area, California or the United States. E. It is a geographically definable area with a concentration of buildings, structures, improvements, or objects linked historically through location, design, setting, materials, workmanship, feeling and/or association, in which the collective value of the improvements may be greater than the value of each individual improvement. For any Improvement less than fifty years old, “achieved significance” means it is of enduring importance within the appropriate historical cultural or architectural context and it can be demonstrated that sufficient time has passed to understand its authenticity, integrity, value, and/or importance. 3. The Improvement retains enough of its historic, cultural or architectural character or appearance to be recognizable as a Historic Resource and to convey the reasons for its significance. HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 10 of 24 Sept. 12, 2022 ITEM 2 17 of 106     B. Designation of a Historic Landmark. The commission may recommend to city council that a historic resource also be recognized as a historic landmark. The purpose of identifying a historic resource as historical landmark is to provide distinctive recognition of Improvements that have outstanding character or historical, cultural or architectural interest or importance as part of the city’s cultural, social, economic, political and architectural history. 22.06.020 Historic district designation criteria 1. Any finite and contiguous grouping of improvements that relate to one another may be designated as a historic district if, upon recommendation by the commission, it is found by the city council to meet the following criteria: A. Its designation is consented to by all property owners within the proposed historic district; B. It is a geographically definable area with a concentration of contributing resources linked historically, culturally, or architecturally through location, design, setting, materials, workmanship, feeling and/or association, in which the collective value of the Improvements may be greater than the value of each individual Improvement; and C. At least fifty percent of the contributing resources within the proposed historic district are already designated as historic resources, or otherwise determined by the commission and city council to be eligible for placement in the local register. 2. Contributing resources share a time period in which most of the original construction occurred or there is some other shared historical, cultural or architectural period of context or significance. 3. The City Council may, by resolution or council policy, establish additional criteria for the historic identification, protection, retention, and preservation of a district; designation thereof; and for reviewing proposed work on contributing resources and non-contributing resources within the district. 22.06.030 Historic siteresource and historic landmark designation procedures. Historic sites and resources, including historic landmarks, shall be establisheddesignated by the city council in the following manner: HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 11 of 24 Sept. 12, 2022 ITEM 2 18 of 106     A. Any person, association, or agency may A property owner may request the designation of a site, landscape feature, or an improvement be designated as a historic landmarkresource by submitting a written request for such designation to the historic preservation commission. The historic preservation commission, planning. The commission, design review board, or city council may also initiate such proceedings by motion. B. Any such request shall be filed with the development processing departmentplanning division upon prescribed forms and shall include the following datainformation: 1. Name and address of property owner(s) and assessor’s parcel number and address of site; 2. Description of the proposed historic site or landmarkresource, including special aesthetic, cultural, archaeological, paleontological, architectural, or engineering interest or value of a historic nature, including information about the architecture, notable features, construction, and other information indicating the historicalhistoric significance of the siteproposed historic resource; 3. Sketches, photographs, or drawings (old and/or recent) depicting the improvement as part of the city’s cultural, social, economic, political and architectural history; 4. Statement of condition of structuresimprovements; 5. Explanation of any known threats to the improvement ofimprovements on the site; 6. Additional information: a. Site plan in appropriate scale; b. Legal description of the property; c. Photographs, old and recent; d. Proposed use; e. Existing zoning; HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 12 of 24 Sept. 12, 2022 ITEM 2 19 of 106     f. Bibliography and references;, and other print materials regarding the historical significance of the proposed historic resource; g. Chain of title, if available. 7. An application fee may be required if so specified in the City of Carlsbad Master Fee Schedule. 8. Other information requested by the planning division. C. Within 4590 calendar days of the date of the requestreceipt of a completed application, the commission shall hold a public hearing to review the landmark application according to the criteria of Section 22.06.020.designate a historic resource. D. Notice of the public hearing shall be given as provided in Section 21.54.060( 21.54.060(A)(2) of this code. In addition, notice of the date, place, time and purpose of the hearing shall be mailed, return receipt requested, to the owner of the proposed landmark propertynominated historic resource as shown on the last equalized assessment roll at least 14 days prior to the date of the public hearing. Failure to send notice by mail to any property owner when the address of such owner is not on the latest equalized assessment role shall not invalidate any proceedings in connection with the proposed designation. E. An application to designate any improvement that is already listed in the National Register of Historic Places or the California Register of Historic Places shall be presented directly to the city council. A public hearing by the commission is not required. F. Upon receipt of an application for historic designation, the director shall notify the building official of the pending application. For a period of 90 calendar days beginning upon the date the notice of hearing is deposited in the mail, the property owner and/or any authorized representative of the property for which a historic designation application is pending shall be prohibited from undertaking any alteration, construction, grading, demolition or removal of the nominated historic resource, except ordinary repair and maintenance, and no permit to undertake such work shall be issued by the city. If no final action has been taken as to the historic resource designation within the 90-day period, these restrictions shall expire unless the commission, with the consent of the property owner and/or any authorized representative, elects to continue its consideration of the property for historic resource designation. If the commission, with the consent of the owner and/or any authorized representative, makes such an election, said restrictions shall HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 13 of 24 Sept. 12, 2022 ITEM 2 20 of 106     remain against the property until final action and the director shall notify the appropriate city officials of said restrictions. Nothing in this provision shall be construed as a prohibition or infringement on the legal use of a property pending consideration by the commission. The provisions of this section shall not apply to the construction, grading, alteration, demolition or removal of any structure or other feature, where a permit for the performance of such work was issued prior to the date that the property owner filed the historic resource designation application with the city, and where such permit has not expired or been canceled or revoked, provided that construction is started and diligently pursued to completion in accordance with this Code. E. G. After the public hearing, the commission shall by resolution make a report and recommendation to the city council. If the commission determines that the improvement does not meet landmarkhistoric resource criteria, the process shall terminate and the commission shall notify the property owner and applicant of such termination in writing within 10 days of the commission’s determination. If the commission determines that the resource warrants historic site or landmarkresource designation and the property owner has consented to same in writing, then the commission shall submit a written recommendation to the city council incorporating its reasons in support of the proposed designation. Without the property owner’s consent to the proposed designation, a site shall not be designated a historic site or landmark. Permits shall be required to work on a designated historic landmark as specified in Chapter 22.08 of this code. Permit fees shall be established by resolution of the city councilA site shall not be designated a historic resource without the property owner’s consent. F. H. The city council shall hold a public hearing on the proposed historic resource designation within 3060 calendar days of the receipt of the recommendation forfrom the commission. G. I. At the conclusion of the public hearing on the proposed designation, the city council shall, by resolution, designate or conditionally designate, or disapprove the designation of the historic landmark.resource. The city council may also designate a historic resource as a historic landmark, as provided in Section 2.06.015.B. Written notice of the city council action shall be mailed to the property owner. J. The resolution designating a historic resource shall be recorded with the County Recorder in accordance with Public Resources Code Section 5029 and Government Code Section 27288.2. A property approved for listing in the local register shall not be considered formally designated until the City Clerk has submitted the resolution to the County and the HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 14 of 24 Sept. 12, 2022 ITEM 2 21 of 106     County has recorded the designation. Property owner(s) shall be responsible for any fees required to record a historic designation. 22.06.040 Historic district designation procedures. Historic districts shall be established by the city council in the following manner: A. The procedures for designating a historic district shall be the same as for designating a historic landmarkresource, except as otherwise provided in this section. B. Any A property owner within a proposed historic district may submit an application for designation of a historic district. Such application shall be made in writing, filed with the planning division upon the prescribed form and shall include the following data: 1. Boundaries of the proposed district and a list of names and addresses of property owners, assessor’s parcel numbers and addresses of properties within the boundaries; 2. Description of the proposed historic district, including special aesthetic, cultural, architectural, or engineering interest or value of a historical nature;historic nature, and a listing of all parcels of land within the boundaries of the proposed district, labeled as a potential Contributing Resource or Non-Contributing Resource. 3. Signatures of all property owners within the proposed historic district consenting to the proposed historic district designation. 4. Bibliography and references, and other print materials regarding the historical significance of the proposed historic district; 3. 5. Sketches, photographs or drawings (old and/or recent) depicting the proposed district, or parts thereof, as part of the city’s cultural, social, economic, political and architectural history; 4. 6. Statement of condition of structures and improvements within the proposed district; 5. 7. Explanation of any known threats to any cultural resourceimprovements within the proposed district; 8. An application fee may be required if so specified in the City of Carlsbad Master Fee Schedule. HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 15 of 24 Sept. 12, 2022 ITEM 2 22 of 106     6. 9. Other information requested by the planning division. C. If An application is incomplete and no public hearing shall be scheduled before the commission until the written consent of all of the owners of property within the proposed historic district to the proposed designation is nothas been obtained at the time of the historic preservation commission hearing, the process shall terminate and the commission shall notify the property owners and applicant of such termination within 14 days of the commission’s determination. D. If the commission determines that the area warrants historic district designation, it shall submit a written recommendation to the city council incorporating its reasons in support of the proposed historic district designation, within 14 days of reaching its decision.. Such recommendation shall include a report containing the following information: 1. A map showing the proposed boundaries of the historic district identifying all structurescontributing resources and non-contributing resources within the boundaries; 2. An explanation of the significance of the proposed district and description of the historical, cultural or architectural resources within the proposed boundaries; 3. Recommendations as to appropriate permitted uses, special uses, height and area regulations, minimum dwelling size, floor area, sign regulations, parking regulations, and any other modification to existing development standards necessary or appropriate to the preservation of the proposed historic district. Any recommendations related to zoning may require Title 21 amendment initiation and application pursuant to Chapter 21.52 of this Code. E. If the Historic District application is approved by the city council, all contributing resources within the district shall be designated as a historic resource. The resolution designating the historic resource(s) shall be recorded with the County Recorder in accordance with Public Resources Code Section 5029 and Government Code Section 27288.2. A property approved for listing in the local register shall not be considered formally designated until the City Clerk has submitted the resolution to the County and the County has recorded the designation. Property owner(s) shall be responsible for any fees required to record a historic designation. HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 16 of 24 Sept. 12, 2022 ITEM 2 23 of 106     22.06.050 Historic resource and historic district de-designation procedures. The procedure for de-designation of a historic resource or historic district from the local Register shall be as follows: 1. Owners of property with a recorded Mills Act contract who voluntarily seek to be deleted from the local Register, shall first follow the procedures and requirements for Mills Act contract cancellations, provided in Chapter 22.10 of this Code. 2. Owners of property without a recorded Mills Act contract may request de-designation from the register, or deletion or modification of a historic district within which their property is located, by submitting an application to the director. A fee, as set forth in the City of Carlsbad Master Fee Schedule, shall accompany each application for de-designation. The fee shall be in an amount reasonably calculated to reimburse the city for its reasonable and necessary costs in receiving, processing and reviewing de-designation applications, including preparation of a historic resource assessment. 3. A historic resource assessment to provide evidence for the de-designation may be requested by the director as part of the application and will be paid for by the applicant. 4. The commission shall consider the de-designation application and historic resource assessment at a public hearing, which shall be noticed in the same manner as public hearings under section 22.06.030 of this Chapter. After the public hearing, the commission shall by resolution make a report and recommendation to the city council. Within 60 calendar days of the commission’s recommendation, the city council shall hold a public hearing to consider the de-designation application. The city council’s action shall state the reasons for the de-designation by resolution. As needed, the director shall propose and process for de-designation from the local Register those historic resources and historic districts which have been changed, deteriorated, damaged, destroyed or adversely affected to such an extent that, in the director’s opinion, they no longer qualify for placement on the local register. Requests for de-designation by the director shall follow the procedures provided in this section. No fee shall be required. HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 17 of 24 Sept. 12, 2022 ITEM 2 24 of 106     Chapter 2.08 Permits and Permit Procedures 22.08.010 Permits to work on a historic resource, historic landmark or historic district. The permit process for work on historic resources is as follows: A. It is unlawful for any person to alter, tear down, demolish, construct, remove, or relocate any improvement, or any portion thereof which has been designatedof a nominated historic siteresource, historic resource, or landmark, or which liesany property located within a historic district, without first obtaining a permit from the city building department.as provided by this chapter. An application fee may be required if specified in the city’s master fee schedule. B. Exceptions. 1. Ordinary maintenance and repair. No permit shall be necessary for ordinary maintenance and repair if the proposed work will not alter or change the style, color, design, features or character of the site or area and a permit is not required under Section 301(b) of the Uniform Building Code, nor does this chapter prevent the construction, reconstruction, alteration, restoration, demolition or removal of any such feature. 2 Public health and safety. No permit shall be necessary for work on an Improvement when the building departmentdivision certifies to the council that such action is required for the public safety due to an unsafe or dangerous condition which cannot be rectified through the use of the California Historical Building Code. 3. Economic hardship. The owner of a historic resource may request to be exempted from the permit requirement and carry out work that may adversely affect the authenticity, integrity, value and/or importance of the historic resource on the basis of extreme financial hardship or adversity. Such request shall be submitted by the property owner and considered by the commission (and city council if appealed) in the same manner as an application described in Section 22.08.020. The director may require the owner to furnish material evidence supporting the request for exemption. C. The permit required by this chapter shall be in addition to any other permit required for a proposed project. HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 18 of 24 Sept. 12, 2022 ITEM 2 25 of 106     22.08.020 Permit procedure. The permit procedure for work onto alter, tear down, demolish, construct, remove, or relocate any improvement, or any portion of a nominated historic resourcesresource, historic resource, or any property located within a historic district is as follows: A. An application for a permit to do work at a historic site, resource or any property within in a historic district, or on a historical landmark shall be submitted to the development processing division on forms designated by the city planner. Within 30 days from B. If the receipt of such complete application the commissionis for work on a historic resource subject to a historical property contract between the city and the property owner(s), then the City Planner shall review the application and shall make a written report to the city council. The city council shall hold a public hearing on the application within 30 days of receipt of the commission report. Notice of the public hearing shall be given as provided in Section 21.54.060(b) of this code.to ensure that the proposed Alteration, Demolition, Reconstruction, Rehabilitation or Restorative work is consistent with the terms of the historical property contract, the Secretary of the Interior’s Standards and any local design guidelines or standards adopted for the historic district, if applicable. If the City Planner determines that the application is consistent with those criteria, the application may be approved and a permit may be issued administratively. If the proposed Alteration, Demolition, Reconstruction, Rehabilitation or Restorative work was not listed in the historical property contract approved by city council, or is determined to be inconsistent with the Secretary of Interior’s Standards or local design guidelines or standards, then the application shall be processed pursuant to subsection C of this section. C. If the historic resource is not subject to a historical property contract between the city and property owner(s), the City Planner shall review the application and provide a recommendation to the commission. Within 60 calendar days from the receipt of such complete application, the commission shall hold a public hearing to review the application and consider the city planner’s recommendation. Notice of the public hearing shall be given as provided in Section 21.54.060(B) of this Code. B. At the conclusion of the public hearing on the permit application, the city councilcommission shall, by resolution, issue or deny, in whole or in part, any permit application. C. Any property owner whose property is designated a historic resource or is located within a historic district may voluntarily have their property removed from the list of historic resources upon a request in writing to the historic preservation commission. HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 19 of 24 Sept. 12, 2022 ITEM 2 26 of 106     D. The decision of the commission may be appealed to the city council by filing an appeal with the city clerk’s office within 10 calendar days of the date of the commission’s decision. If an appeal is filed, the city council shall hold a public hearing on the application within 30 days of receipt of the appeal. Notice of the public hearing shall be given as provided in Section 21.54.060.B of this Code. 22.08.030 Permit criteria. The city council shall issue aA permit for anythe proposed work shall be issued if, and only if, itthe decision-maker determines: A. In the case of a designated historical site, that That the proposed work would comply with the Secretary of the Interior’s Standards and not detrimentally alter, deteriorate, damage, destroy, or adversely affect any archeological, paleontological, or landscape featurethe authenticity, integrity, value, and/or importance of the historic resource; B. That anythe proposed exterior improvements will not adversely affect andwork will be compatible with the external appearance of existing designated improvements, building and structures on said site;Improvements on the property or within the Historic District, if applicable; and C. That the applicant has presented clear and convincing evidence of facts demonstrating to the satisfaction of the city council that such disapproval will work immediate and substantial hardship on the applicant because of conditions peculiar to the person seeking to carry out the proposed work, whether this be the property owner, tenant or resident, or because of conditions peculiar to the particular improvement, building or structure or other feature involved, and that approval of the application will be consistent with the purposes of this chapter. C. That the proposed work is consistent with the purpose and intent of this Chapter. 22.08.040 Duty to keep in good repair. The owner, occupant or other person legally responsible for a nominated historic resource, historic resource, or any property located within a historic district shall keep in good repair all portions of such historic site, landmark,resource or property within a historic district as specified in the designating ordinance or permit and, including all interior portions and appurtenances thereof whose maintenance is necessary to prevent HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 20 of 24 Sept. 12, 2022 ITEM 2 27 of 106     change, deterioration and decay of the resource. Failure to keep such property in good repair may result, upon recommendation of the historic preservation commission, in removal from the list of historic resources, damage, destruction, or adverse effect to the authenticity, integrity, value, and/or importance of the resource. 22.08.050 Existing improvements. All maintenance and repairs, alterations, reconstructions, restorations, preservations, or changes in userehabilitations of existing improvements shall conform to thewith the historical property contract, and to the guidelines and requirements of the Secretary of Interior’s Standards, the California Department of Parks and Recreation Office of Historic Preservation and the State Historical Building Code, as applicable. 22.08.060 Enforcement and Penalties Any person who violates any of the provisions of this Title, including by failing to comply with a condition of approval of any permit or preservation benefit or incentive issued under this Title, is guilty of an infraction punishable as designated in Section 1.08.010 of this code, or in the alternative by the administrative code enforcement remedies of Chapter 1.10 of Title 1 of this code. Chapter 2.10 Preservation Benefits and Incentives 22.10.010 State Historical Building Code California Historical Building Code. The 2019 California Historical Building Code, Title 24, Part 8, hereinafter referred to as the California Historical Building Code is hereby adopted by reference as the alternative building regulations for the rehabilitation, preservation, restoration, or relocation of structures designated as historic resources. The building official shall use the California Historical Building for projects involving historic resources. 22.10.020 Historical property contracts. A. Owners of qualified historical properties improved with at least one building may receive a potential reduction in property taxes through a historical property contract (Mills Act Contract), pursuant to California Government Code Section 50280 et seq. and California Revenue and Taxation Code Section 439 et seq., collectively “the Mills Act.” The purpose of this section is to implement the Mills Act in order to establish a voluntary process to enter into contract with owners of qualified historical properties that have HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 21 of 24 Sept. 12, 2022 ITEM 2 28 of 106     previously been designated as a historic resource for property tax relief and for the preservation of those historic resources. B. Individual properties that are not a qualified historical property at the time of application for a Mills Act Contract may submit an application for the property to be listed in the register simultaneously with the application for a Mills Act Contract. The applications will be processed concurrently. C. Applications. Mills Act contract applications may be submitted to the planning division on a form provided by the city planner. All applications shall include: 1. Documentation of status as a qualified historical property or nominated historic resource; 2. A detailed 10-year work plan of proposed preservation, restoration and/or repair prepared by, or with the concurrence of, an individual qualified under the applicable Professional qualification standards; 3. A description of the property; 4. Property owner(s) affidavit and acknowledgement of the Mills Act mandatory provisions; 5. A completed Mills Act contract notarized and signed by the property owner(s); and 6. All required fee(s), as set by council resolution. D. Procedure. Following receipt of a completed application, the city planner or designee shall review the application materials and schedule the pre-contract approval inspection of the exterior and interior of the subject property with the property owner(s). The purpose of the inspection is to confirm and photo-document the condition of the property and review the proposed work plan of improvements. Failure of a property owner to allow access to the property for purposes of the property inspection shall be grounds for denial of the application. Once the inspection is conducted and the planning division has completed its review of the application to develop a recommendation, the planning division shall forward its recommendation on the Mills Act Contract to the commission. The commission shall conduct a public hearing to consider the contract terms, including the 10-year work plan, and make a recommendation to city council regarding the approval, conditional approval or denial of the Mills Act Contract. HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 22 of 24 Sept. 12, 2022 ITEM 2 29 of 106     E. Following receipt of the commission’s recommendation, the city council shall conduct a public hearing and shall either approve, conditionally approve or deny the Mills Act Contract. The decision of the city council shall be final. F. No later than 20 calendar days after the city enters a Mills Act Contract, the city clerk shall record with the county recorder a copy of the contract, which shall describe the property subject thereto. The city clerk shall notify the property owner(s), the County Tax Assessor's office and the State Office of Historic Preservation of the recorded Mills Act Contract. G. Mills Act Contract mandatory provisions. All Mills Act Contracts shall meet the requirements of Government Code Section 50280 et seq., as it exists now or as may be amended. H. Notice of Nonrenewal. Either party to a Mills Act Contract may file a notice of nonrenewal at any time after entering into the Contract. The effect of the notice of nonrenewal shall be as prescribed in Government Code Section 50282 and Revenue and Taxation Code Section 439.3. I. Cancellation. 1. Cancellation of a Mills Act Contract shall be in accordance with the terms of the agreement and Government Code Sections 50284-50286. 2. As an alternative to cancellation of Contract, the city may bring any action in court necessary to enforce the Mills Act Contract, including an action to enforce the contract by specific performance or injunction. 3. If the qualified historical property under an active Mills Act Contract is destroyed by earthquake, fire, flood, or other natural disaster such that in the opinion of the building official more than 60% of the original fabric of the building or structure must be replaced, the Mills Act Contract may be cancelled, in accordance with the cancellation provisions of the Mills Act, because the authenticity, integrity, value and/or importance of the building structure will have been destroyed. If the qualified historical property is acquired in whole or in part by eminent domain or other acquisition by any entity authorized to exercise the power of eminent domain, and the acquisition is determined by the city council to frustrate the purpose of the Mills Act Contract, then the Contract may be cancelled in accordance with the cancellation provisions of the Mills Act. No cancellation fee pursuant to Government Code Section 50286 shall be imposed if a Mills Act Contract is cancelled pursuant to this subsection. HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 23 of 24 Sept. 12, 2022 ITEM 2 30 of 106     J. The city manager or designee may adopt written administrative regulations that are consistent with and further the requirements of this Chapter. K. Enforcement. Enforcement of this Chapter and Mills Act Contracts shall be as allowed by Government Code Sections 50280 - 50290 and as provided by the terms of the Mills Act Contract recorded on the property.   HPC Meeting - Sep. 12, 2022 Exhibit 1 Page 24 of 24 Sept. 12, 2022 ITEM 2 31 of 106 HPC Meeting - Sep. 12, 2022 Exhibit 2 Page 1 of 15 Sept. 12, 2022 ITEM 2 32 of 106 • ! J. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 • • RESOLUTION NO. 91-114 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE ADOPTION OF THE CITY OF CARLSBAD HISTORIC RESOURCE INVENTORY. WHEREAS, the City Council approved funding for a Cultural Resource Survey conducted for the entire City's jurisdiction; and WHEREAS, the Cultural Resource Survey was conducted City-wide in an errort to identiry sites that have potential historic significance; and WHEREAS, the Cultural Resource Survey identified 325 sites of potential historic significance; and WHEREAS, the Historic Preservation Commission has received and approved the Cultural Resource Survey report; and WHEREAS, the City's Historic Preservation Ordinance provides for City Council adoption of a City of Carlsbad Historic Resource Inventory; and WHEREAS, the Historic Preservation Commission recommends the adoption of the Cultural Resource Survey report as the City of Carlsbad's Historic Resource Inventory. NOW, THEREFORE, BE IT HEREBY RESOLVED, by the City Council of the city of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the adoption of the Cultural Resource Survey report, a copy of report table titled "Table 1 -Summary of Evaluations," is attached as EXHIBIT "A" and incorporated herein by reference, as the City of Carlsbad Historic Resource Inventory is hereby approved. HPC Meeting - Sep. 12, 2022 Exhibit 2 Page 2 of 15 Sept. 12, 2022 ITEM 2 33 of 106 l 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, California held on the 16th day of April , 1991, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Larson, Nygaard and Stanton NOES: None ABSENT: None ATTEST: ALETHA .. RAUTENKRANZ, City Clerk L.. (SEAL) HPC Meeting - Sep. 12, 2022 Exhibit 2 Page 3 of 15 Sept. 12, 2022 ITEM 2 34 of 106 e EXHIBIT "A" TABLE 1 SUMMARY OF EVALUATIONS Level of Style Condition Grade/ Documentation Significance ADAMS 3383 C B/C -Spanish Good 3/4 3401 C Vernacular Good 3/4 3447 C Vernacular Fair/Good 3/4 3640 B Spanish Eclectic Excell/Good 3 (1923) 3781 C Vernacular Good 3/4 ARBUCKLE 752 C Vernacular Good 3/4 ARLAND 2778 C B/C -Craftsman Good 3/4 BASSWOOD 1252 C Vernacular Good 3/4 1284 C Vernacular Good 3/4 1432 B B/C-Folk Vern ExcelVGood 3 BEECH retaining wall A n/a Good/Fair 3 (1920s) 258 A Folk Victorian Excell/Good 3 (1887-1888) 258 (barn) B Livery Barn Good 3 327 B Vernacular Good/Fair 3 (post 1928) 333 C Vernacular Good 3/4 351 B Craftsman Excell/Good 3 (pre 1929) BUENA VISTA 1375 C Vernacular Good 3/4 1444 C Vernacular Good/Fair 3/4 1858 C Vernacular· Good/Fair 3/4 103 HPC Meeting - Sep. 12, 2022 Exhibit 2 Page 4 of 15 Sept. 12, 2022 ITEM 2 35 of 106 TABLE 1 CONT. · SUMMARY OF EVALUATIONS Level of Style Condition Grade/ Documentation Significance CARLSBAD BL VD Highway 101 A n/a Good 3 RR Overpass A n/a Good 3 (pre 1925) 2560 B Spanish Eclectic Good 3 (1927) 2564 C Spanish Good 3/4 2585 A Spanish Eclectic Excell/Good 3 (1927-1939) 2775 A Carpenter Gothic Excell/Good 3 (1894) 2802 A Medieval European Excell/Good 3 (1965) 2978 A Queen-Anne Viet Excell/Good 1 (orig.-1887) 2855 A Spanish Eclectic Excell/Good 3 (1929) 3003 A Spanish Eclectic Excell/Good 3 (1929) 3406 B B/C-Craftsman Good 3 3418 C B/C-Spanish Good 3/4 3424 C Vernacular Good 3/4 3862 B B/C-Spanish Good 3 (1929-33) CHESTNUT 142 B B/C-Spanish Good 3 442 C Vernacular Good/Fair 3/4 452 C Vernacular Good/Fair 3/4 1088 B B/C-Tudor Good 3 1202 C B/C-Spanish Good/Fair 3/4 1211 C Vernacular Good/Fair 3/4 1585 C Vernacular Good/Fair 3/4 1645 C Vernacular Good/Fair 3/4 1650 C Vernacular Good/Fair 3/4 1674 C Vernacular Good/Fair 3/4 1694 C B/C-Spanish Good/Fair 3/4 1749 B B/C -Craftsman Good 3/4 104 HPC Meeting - Sep. 12, 2022 Exhibit 2 Page 5 of 15 Sept. 12, 2022 ITEM 2 36 of 106 TABLE 1 CONT. SUMMARY OF EVALUA noNS Level of Style Condition Grade/ Documentation Significance CHINQUAPIN 319 C B/C -Spanish Good 3/4 344 C B/C -Spanish Good 3/4 519 C B/C -Spanish Good ~/4 519 (rear) B Vernacular Fair 3/4 (pre 1928) 608 C Vernacular Good/Fair 3/4 CHRISTIANSEN 352 A Vernacular ExcelVGood 3 (pre 1919) 380 A Vemacular ExcelVGood 3 (1897; 1905) 381 C B/C -Craftsman Good 3/4 385 C B/C -Craftsman Good 3/4 CHUPAROSA 1330 A Craftsman Good 3 (1904) CREST 2521 C Vernacular Good 3/4 2597 B Vernacular Good/Fair 3 2691 B Vernacular Good 3 (1938) 2729 C Vernacular Good/Fair 3/4 DATE 314 C Vernacular Good/Fair 3/4 EL CAMINO REAL El Camino Real A n/a Excellent 2 4867 A Barn Deteriorated :.(3 (1906) (Kelly House) A Polle Victorian ExcelVGood 3 (1896) ELM 363 C Vernacular Good 3/4 395 C B/C-Spanish Good 3/4 105 HPC Meeting - Sep. 12, 2022 Exhibit 2 Page 6 of 15 Sept. 12, 2022 ITEM 2 37 of 106 TABLE 1 CONT. SUMMARY OF EVALUATIONS Level of Style Condition Gradel Documentation Significance ELM 400 A Carpenter Gothic Excellent 3 (1887) 417-425 A Commercial Good 3 (pre 1925) 505 A Commercial Good 3 (1927-1930) 560-562 B Commercial Good 3 (1930s) 571 C Commercial Good 3 (1929-46) 1166 A Vernacular Good 3 (1940s) 1265 B Vernacular Good/Fair 3 ELMWOOD 2793 C Venacular Good 3/4 EUREKA 3218 C Vernacular Good 3/4 3236 -C Vernacular Good 3/4 FOREST 1323 C Vernacular Good 3/4 1448 A Vernacular ExcelVGood 3 (1894) GARFIELD 2650 A Vernacular ExcelVGood 3 (1926) 3288 B B/C -Craftsman ExcelVGood 3 (pre 1928) 3319 C Vernacular Good/Fair 3/4 33(j() C B/C -Spanish Good/Fair 3/4 3363 B B/C -Spanish Good 3 3416 C Vernacular Good 3/4 3423 C B/C -Spanish Good 3/4 3449 C Venacular Good 3/4 3487 C Vernacular Good 3/4 3570 C B/C-Spanish Good/Fair 3/4 3588 C Vernacular Good 3/4 3590 C B/C -Craftsman Good 3/4 3622 C Vernacular Good 3/4 106 HPC Meeting - Sep. 12, 2022 Exhibit 2 Page 7 of 15 Sept. 12, 2022 ITEM 2 38 of 106 TABLE 1 CONT. SUMMARY OF EVALUATIONS Level of Style Condition Grade/ Documentation Significance GARFIELD 3688 C B/C -Spanish Good 3/4 3748 C Vernacular Good 3/4 3839 B B/C-Craftsman Good 3 (post 1929) 4016 C Vernacular Good/Fair 3/4 HARDING 2942 C Vernacular Good 3/4 HAYMAR Marron Adobe A Spanish Eclectic Excell/Good 2 (1842) HEMLOCK 335 C Vernacular Good 3/4 ffiGHLAND 2658 B B/C -Spanish Excell/Good 3 2701 C Vernacular Good 3/4 2916 A B/C -Craftsman Good/Fair 3 (pre 1929) 2987 B Vernacular Good 3 (pre 1928) 3016 B B/C -Tudor ExcelVGood 3 (post 1929) 3081 A Neo-Classic Excell/Good 3 (post 1929) 3057 C B/C -Craftman ExcelVGood 3/4 3140 B Carriage House ExcelVGood n/a (1887) 3140 B Quenn-Anne Viet Excell/Good 3 (1887) 3154 C Vernacular Good 3/4 3264 C B/C -Craftsman Good 3/4 3307 B B/C-Tudor Good 3 3384 B Spanish Eclectic Excell/Good. 3 (post 1928) 3252 C B/C -Craftsman Good 3/4 107 HPC Meeting - Sep. 12, 2022 Exhibit 2 Page 8 of 15 Sept. 12, 2022 ITEM 2 39 of 106 TABLE 1 CONT. SUMMARY OF EVALUATIONS Level of Style Condition Grade/ Documentation Significance lllGHLAND 3690 C Vernacular Good 3/4 3788 B B/C -Craftsman Excell/Good 3 3798 B Vernacular Good/Fair 3 3828 B Vernacular Excell/Good 3 4095 B Colonial Revival Excell/Good 3 (1929) 4379 C Vernacular Good/Fair 3/4 JEFFERSON 2446 C B/C -Spanish Good/Fair 3/4 2480 C B/C-Spanish Good/Fair 3/4 2546 C Vernacular Good/Fair 3/4 2639 C Vernacular Good/Fair 3/4 2753 C B/C -Spanish Good/Fair 3/4 2801 B Folk Victorian Excell/Good 3 2879 B B/C -Craftsman Good 3/4 2892 B B/C -Colonial Excell/Good ·3 (1928) 2928 C Vernacular Good/Fair 3/4 2943 C Vernacular Good/Fair 3/4 2959 C Vernacular Good 3/4 3021 C Vernacular Good/Fair 3/4 3037 C Vernacular Good 3/4 3048 B Vernacular Good/Fair 3 3071 C B/C -Craftsman Good/Fair 3/4 3091 C B/C -Craftsman Good 3/4 3111 C Vernacular Good/Pair 3/4 3113 C Vernacualr Good 3/4 3463 C Vernacular Good 3/4 3983 C Vernacular Good 3/4 3971 B B/C-Spanish Good 3 JUNIPER 146 C B/C -Spanish Good 3/4 270 A Vernacular Good 3 (pre 1928) 369 C Vernacular Good/Fair 3/4 108 HPC Meeting - Sep. 12, 2022 Exhibit 2 Page 9 of 15 Sept. 12, 2022 ITEM 2 40 of 106 TABLE 1 CONT. SUMMARY OF EVALUATIONS Level of Style Condition Grade/ Documentation Significance KNOWLES 1101 B B/C -Folk Viet Good/Fair 3 1138 B B/C -Spanish Good/Fair 3 1279 C Vernacular Good/Fair 3/4 1306 C B/C -Craftsman Good 3/4 LAGUNA 624 A Vernacular Good 3 (1890s) 902 C Vernacular Good/Fair 3/4 960 C Vernacular Good/Fair 3/4 1216 C B/C -Engl Tudor Good 3/4 1236 C Vernacular Good/Fair 3/4 LINCOLN 3080 A Monterey Excell/Good 2 (1925) 3112 B Vernacular Good/Fair 3 (1890-1910) 3259 C B/C -Craftsman Good 3/4 MADISON 2644 C B/C -Craftsman Good/Fair 3/4 2645 C Vernacular Good/Fair 3/4 2714 C Vernacular Good/Fair 3/4 2737 C Vernacular Good/Fair 3/4 2738 B B/C -Craftsman Excell/Good 3 2945 C B/C -Craftsman Good 3/4 2951 C Vernacular Good/Fair 3/4 2975 C B/C -Craftsman Good 3/4 3120 C Vernacular Good 3/4 3143 C Vernacular Good 3/4 3145 C Vernacular Good 3/4 3159 C Vernacular Good 3/4 3167 C Vernacular Good/Fair 3/4 3207 C B/C-Spanish Good 3/4 3208 C Vernacular Good 3/4 109 HPC Meeting - Sep. 12, 2022 Exhibit 2 Page 10 of 15 Sept. 12, 2022 ITEM 2 41 of 106 TABLE 1 CONT. SUMMARY OF EVALUATIONS Level of Style Condition Grade/ Documentation Significance MADISON 3221 C Vernacular Good,11:air 3/4 3230 C Vernacular Good 3/4 3231 C Vernacular Good 3/4 3240 C Vernacular Good 3/4 3279 C Vernacular Good 3/4 3291 C Vernacular Good 3/4 3306 C Vernacular Good 3/4 3315 B Vernacular Good/Fair 3 3322 C B/C -Craftsman Good 3/4 3354 C Vernacular Good 3/4 33(56 C Vernacular Good/Fair 3/4 3367 C Vernacular Good 3/4 3391 C Vernacular Good 3/4 3396 C Vernacular · Good 3/4 3421 C Vernacular Good 3/4 3429 C Vernacular Good 3/4 3434 C Venacular Good/Fair 3/4 3437 C Vernacular Good 3/4 3443 C Vernacular Good 3/4 3446 C B/C -Craftsman Good 3/4 3455 C Vernacular Good 3/4 3468 C Vernacular Good 3/4 3475 B Vernacular Excell/Good 3 3485 C Vernacular Good/Fair 3/4 3516 C Vernacular Good/Fair 3/4 3535 C Vernacular Good 3/4 3580 C Vernacular Good/Fair 3/4 MAGNOLIA 1098 B B/C -Spanish Excell/Good 3 1165 C Vernacular Good 3/4 1184 C Vernacular Good 3/4 1196 B Craftsman Good 3 (pre 1929) 1257 C Colonial Revival Excell/Good 3/4 (post 1929) 1281 C Vernacular Good/Fair 3 .. /-+ 1369 C B/C -Craftsman Good/Fair 3/4 MAPLE 158 C B/C -Spanish Good 3/4 110 HPC Meeting - Sep. 12, 2022 Exhibit 2 Page 11 of 15 Sept. 12, 2022 ITEM 2 42 of 106 TABLE 1 CONT. ·SUMMARY OF EVALUATIONS L~vel or Style Condition Grade/ Documentation Significance MOUNTAIN VIEW 2476 B Vernacular Good/Fair 3 NORMANDY 221 B B/C -Craftsman Excell/Good 3/4 OAK 335 C Vernacular Good 3/4 354 C Vernacular Good 3/4 897 C Vernacular Good 3/4 1139 C Vernacular Good/Fair 3/4 1199 C Vernacular Good/Fair . 3/4 1173 C Vernacular Good/Fair 3/4 1212 B Craftsman Excell/Good 3 (pre 1929) 1337 C Vernacular Good 3/4 1542 A Vernacular Good 3 (1880-90s) . OCEAN 2480 C B/C -Spanish Good 3/4 2634 C Vernacular Good 3/4 2688 C Vernacular Good/Fair 3/4 2901 C Vernacular Good 3/4 PACIFIC 230 C B/C -Craftsman Good 3/4 PARK 4050 C Vernacular Good/Fair 3 4055 B Vernacular Fair 3 PINE 926 C Vernacular Good 3/4 938 C Vernacular Good 3/4 111 HPC Meeting - Sep. 12, 2022 Exhibit 2 Page 12 of 15 Sept. 12, 2022 ITEM 2 43 of 106 TABLE 1 CONT. SUMMARY OF EVALUATIONS Level or Style Condition Grade/ Documentation Significance PINE (next) 982 C Vernacular Fair 3/4 1022 C B/C -Craftsman Good 3/4 1028 C B/C -Craftsman Good 3/4 1144 C B/C-Spanish Good/Fair 3/4 1190 C B/C-Craftsman Good/Fair 3/4 1198 C Vernacular Good 3/4 1232 B Vernacular Good/Fair 3/4 1250 C Vernacular Good/Fair 3/4 1260 C Vernacular Good 3/4 1308 C Vernacular Good/Fair 3/4 1344 C Vernacular Good 3/4 1366 C Vernacular Good 3/4 1475 C B/C -Spanish Good/Fair 3/4 PIO PICO 2359 C Vernacular Good 3/4 2392 C Vernacular Good 3/4 ROOSEVELT 2569 C Vernacular Good/Fair 3/4 2578 C Vernacular Good 3/4 2667 C Vernarcular Good 3/4 2740/50 C Vernacular Good 3/4 2747 C Vernacular Good 3/4 2906 B B/C -"Pueblo" Excell/Good 3 2921b B Vernacular Excell/Good 3 3055 C Vernacular Good 3/4 3085 C Vernacular Good/Fair 3/4 3091 C Vernacular Good/Fair 3/4 30% C B/C -Spanish Good 3/4 3147 C Vernacular Good 3/4 3155 C Vernacular Good/Fair 3/4 3190 C B/C -Spanish Good 3/4 3203 C Vernacular Good/Fair 3/4 3206 C Vernacular Good/Fair 3/4 3243 C Vernacular Good 3/4 3255 B Vernacular Fair/Deterio 3 3256 C B/C -Craftsman Good 3/4 112 HPC Meeting - Sep. 12, 2022 Exhibit 2 Page 13 of 15 Sept. 12, 2022 ITEM 2 44 of 106 TABLE 1 CONT. SUMMARY OF EVALUATIONS Level of Style Condition Grade/ Documentation Significance ROOSEVELT 3280 C Vernacular Good 3)4 3286 C B/C -Craftsman Good 3/4 3304 B Commercial Good/Fair 3 33()() A Vernacular Fair/Deterio 1 (1918) 3312 B Vernacular Fair/Deterio 3 (pre 1929) 3328 C Vernacular Good/Fair 3/4 3329 A B/C -Spanish Fair/Deterio 1 (1923) 3379 B B/C -Craftsman Excell-Good 3 3395 B B/C -Craftsman Excell-Good 3/4 3408 C Vernacular Good 3/4 3420 C Vernacular Good 3/4 3435 C Vernacular Good/Fair 3/4 3442 A B/C -Craftsman Excellent 3 (1929) 3594 C Vernacular Good 3/4 SEQUOIA 172 C Vernacular Good 3/4 3941 C Vernacular Good 3/4 SPRUCE 2245 C Vernacular Good 3/4 2246 C B/C -Spanish Good 3/4 STATE 2627 C Vernacular Good/Fair 3/4 2633 C Vernacular Good/Fair 3/4 2639 B B/C -Craftsman Excell-Good 3 2646 C Vernacular Good/Fair 3/4 2647 C Vernacular Good/Fair 3/4 2787 A Commercial Good 3 (1924-29) 2&22 A Commercial Good 3 (1926-27) 2900 Block A Commercial Good 3 (1920s) 2901 A Spanish Eclectic Good 3/4 {1925) 2929 (rear) B Vernacular · Fair 3 113 HPC Meeting - Sep. 12, 2022 Exhibit 2 Page 14 of 15 Sept. 12, 2022 ITEM 2 45 of 106 TABLE 1 CONT. SUMMARY OF EVALUATIONS Level of Style Condition Grade/ Documentation Significance STATE 2940/2946 B Commercial Excell/Good 3 (pre 1929) 2956 A Commercial Good 2 (pre 1925) 2998 B Commercial Good 3 (1925-29) 3044 B B/C -Tudor Good/Fair 3 (1938) 3()(i() C Vernacular Good 3/4 3068 C Vernacular Good 3/4 3077/3087 B Commercial Good/Fair 3 (1925-1929) 3080 C B/C -Spanish Good 3/4 Sunny Creek Rd 2770 A Adobe + Outbuild. Excel-Deterio 1 (1838-1842) SYCAMORE 151 C B/C -Spanish Good 3/4 155 C B/C -Craftsman Good 3/4 165 C B/C -Craftsman Good 3/4 168 B B/C -Craftsman Excell/Good 3 TAMARACK 148 C Vernacular Good· 3/4 234 C B/C -Spanish Good 3/4 310 B B/C -Craftsman Excell/Good 3 522 C B/C -Spanish Good 3/4 TYLER 3190 B Vernacular Deteriorated 3 3176 B B/C-Spanish Deteriotated 3 3281 C B/C -Craftsman Excell-Good 3/4 3327 C Vernacular Good 3/4 3344 C Vernacular Good/Fair 3/4 3395 C Vernacular Deteriorated 3/4 114 HPC Meeting - Sep. 12, 2022 Exhibit 2 Page 15 of 15 Sept. 12, 2022 ITEM 2 46 of 106 TABLE 1 CONT. SUMMARY OF EVALUATIONS Level of Style Condition Grade/ Documentation Significance VALLEY 3215 C Vernacular Good/Fair 3/4 WASIDNGTON 2733 C Vernacular Good 3/4 2747 C Vernacular Good/Fair 3/4 WILSON 2628 C Vernacular Good 3/4 2736 C Vernacular Good/Fair 3/4 2779 C Vernacular Good 3/4 OTHER Calavera Lake/Dam A n/a Good 3 Calavera School A n/a Gone 3 Calavera Rock Quarry A n/a n/a 3 El Camino Real A n/a n/a 2 Encina Power Plant A n/a Excellent 3 Rancho los Quiotes A Mix-Good/Fair f: Spanish-American Stage Coach Park A Adobe Deteriorated 2 115 HPC Meeting - Sep. 12, 2022 Exhibit 3 Page 1 of 2 Sept. 12, 2022 ITEM 2 47 of 106 1 2 3 4 5 6 7 8 9 10 11 12 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 93-151 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA AMENDING RESOLUTION NO. 91-114 DELETING THE CULTURAL RESOURCES INVENTORY AND ESTABLISHING A VOLUNTARY HISTORIC RESOURCES INVENTORY WHEREAS, on April 16, 1991, the City council approved Resolution No. 91-114 adopting a Cultural Resources Inventory; and WHEREAS, at its meeting of May 11, 1993, the City Council directed that the Cultural Resources Inventory be deleted; and WHEREAS, at said meeting, the City council expressed its intent to establish a voluntary listing whereby a property owner could apply in writing to be included on the Cultural Resources Inventory; and WHEREAS, a property owner can withdraw from the listing at any time, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the Cultural Resources Inventory attached as Exhibit A to Resolution No. 91-114 is deleted and no further requirements of those properties previously listed as a result of having been on said list be made unless they voluntarily participate in said listing. 3. The Historic Preservation C◄:>mmission is directed to study and review the Historic Preservation ordinance and after appropriate study to make recommendations and modifications to it as necessary to provide for a voluntary program. HPC Meeting - Sep. 12, 2022 Exhibit 3 Page 2 of 2 Sept. 12, 2022 ITEM 2 48 of 106 1 2 3 4 5 6 7 8 9 10 11 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 18th 1993, by the following vote, to wit: day of _MA_Y __ _ AYES: Council Members Lewis, Stanton, Kulchin, Nygaard, Finnila NOES: None ABSENT: None ATTEST: ALETHA L. RAUTENKRANZ, City glerk (SEAL) Meeting Date: Oct. 19, 2021 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Mike Strong, Assistant Community Development Director mike.strong@carlsbadca.gov, 760-602-2783 Subject: Information on the Mills Act District: All Recommended Action Receive an informational presentation on the purpose of the Mills Act and provide direction to staff as appropriate. Executive Summary On July 20, 2021, the City Council received a report regarding the city’s possible acquisition of the Culver-Myers-Capp house for historical preservation and directed staff to return to the City Council with more information about the Mills Act program. This staff report provides additional information on the Mills Act, a state law enacted to help local governments preserve historic structures, (Exhibit 1) and what it would take to create a local program. Should the City Council wish to pursue a local Mills Act program, staff recommend the City Council direct staff to initiate an amendment to the Carlsbad Municipal Code to authorize a local Mills Act Program as well as address some long-standing inconsistencies in the city’s current Historic Preservation Ordinance (CMC Title 22). Discussion Background The Mills Act, enacted in 1972 by the California Legislature, grants participating cities and counties the authority to enter into contracts with the owners of qualified historic properties who actively participate in the preservation, restoration, and maintenance of their historic properties. Property owners agree to maintain, and in some cases rehabilitate, their historic properties in exchange for having their property tax reduced. A Mills Act contract can provide tax benefits for both owner-occupied and income-producing properties. The property tax reduction makes the Mills Act contract one of the most valuable incentives offered to owners of historic properties. The Mills Act Program is especially beneficial for recent buyers of a historic property and for current owners of historic buildings who have made major improvements to their property. Mills Act contract participants may realize substantial property tax savings of between 40% and HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 1 of 45 Sept. 12, 2022 ITEM 2 49 of 106 60% each year for newly improved or purchased older properties. Valuations of Mills Act properties are determined by the income approach to value, which estimates the market value of a property based on the income it generates, rather than by the standard market approach to value, which is based on its potential selling price. Properties that have been under the same ownership for a long time have property tax rates that are already lower than those of homes sold more recently, so the owners of those properties will most likely not benefit from the tax relief. More than 90 local governments across the state have enrolled in the Mills Act Program, including eight in San Diego County – Chula Vista, Coronado, Encinitas, Escondido, La Mesa, National City and the city and county of San Diego, according to the California Office of Historic Preservation’s website (Exhibit 2). The owners of about 370 properties within the various cities and unincorporated county areas have contracted to receive this property tax benefit, according to the San Diego County Recorder’s Office. How it works Contract preparation Under a Mills Act Program, the city would be responsible for recording executed Historic Property contract documents with the County Recorder before December 31 of the applicable calendar year. The city would then transmit the contract and the documentation of the description of the property to the San Diego County Assessor’s Office, where the calculation for the exact property tax under the Mills Act would be performed. Contracts that are recorded by December 31 are reassessed by June 30 of the following year, so that the tax reduction would appear on the tax bill of October of that year. Within six months of entering into a Mills Act contract with the property owner, the city would submit written notice of the contract to the State Office of Historic Preservation. Assessing property tax value The Mills Act statute requires tax assessors to evaluate properties under a Mills Act agreement using a method that typically, but not always, results in a tax reduction for the property owner. Once approved by the City Council, a Mills Act contract requires the County Assessor’s Office to determine the value of the historic property based upon its ability to generate income, the income approach to value, rather than the regular market-based method of assessment. In the income approach, the County Assessor values the property according to the capitalization of income, whereby the property's potential income is divided by a pre- determined capitalization rate to determine the new assessed property value. In the case of an owner-occupied property, the income projection is based on comparable rents for similar properties in the area, or, if insufficient rental information is available, the income that the property could reasonably be expected to produce. The income amount on a commercial property is based on the actual rent received. Mills Act contract participants may realize substantial property tax savings between 40% and 60% each year for newly improved or purchased older properties. For more information about a prospective Mills Act Program, please refer to Exhibit 1. HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 2 of 45 Sept. 12, 2022 ITEM 2 50 of 106 Ongoing obligations – property owner In exchange for a reduction in property taxes, a Mills Act contract requires the property owner to undertake specific restoration tasks as necessary, and to properly maintain the historic structure. This is a legal contract binding the owner of a designated historical resource to maintain the subject property consistent with the U.S. Secretary of the Interior’s standards for properties designated as historic, to provide visibility of the historical resource from the public right-of-way, and to improve or rehabilitate the property based on specific conditions included in the agreement. The term of a Mills Act contract is for a ten-year period, with the contract renewed automatically each year on the contract’s anniversary, unless the owner or the city or county submits a notice of non-renewal. If such a notice is submitted, the contract would terminate at the end of the then current ten-year term. The obligations and property tax reduction benefits associated with the contract are also binding upon successive property owners during the contract term. Section 50286(a) of the California Government Code states that if a Mills Act contract is cancelled because of a property owner's breach, "the owner shall pay a cancellation fee equal to 12.5% of the current fair market value of the property, as determined by the county assessor as though the property were free of the contractual restriction." Because Mills Act contracts have a minimum term of 10 years, the 12.5% penalty established by state law approximates the maximum property tax savings a property owner might realize through the Mills Act Program, assuming the owner achieves a 100% reduction in property taxes at the presumed annual property tax rate of 1.25%. Staff believe the 12.5% penalty sufficiently eliminates any financial incentives for a property owner to breach a Mills Act contract. If a contract is canceled due to an owner's breach before the initial 10-year contract term has expired, the penalty would be greater than the owner's realized tax benefits as of the date of cancellation. Ongoing obligations – City of Carlsbad While the property owner is responsible for maintaining the historical significance of their designated resource, the city is responsible for ensuring that a property remains in compliance with the provisions of the Mills Act contract. Local Mills Act programs require cities to perform site visits, record maintenance issues and review compliance with contract requirements every five years. The five-year inspection schedule provides the opportunity to monitor progress in any restoration plans and to provide adequate review in case owners make changes that may harm the property’s historical integrity but that do not typically require a building permit, or make substantial changes to the property without obtaining required permits. Steps to develop a city program Should the City Council direct staff to initiate an amendment to the municipal code to authorize a local Mills Act Program, staff would engage a consultant to work with the Historic Preservation Commission and other stakeholders to develop the draft ordinance and prepare the guidelines, forms and contract documents that are required to process a Mills Act application. As part of this effort, staff would also make necessary changes to Carlsbad Municipal Code Title 22 – Historic Preservation to make it clearer and address long-standing inconsistencies. HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 3 of 45 Sept. 12, 2022 ITEM 2 51 of 106 Step 1 – The city would award a professional services agreement with a consultant in an amount not to exceed $35,000. Funds for this one-time agreement cost is included in the current Community Development Department budget. Step 2 – The consultant would research best practices and engage the Historic Preservation Commission and other stakeholders on issues and opportunities. Step 3 – The consultant would identify eligibility criteria, the envisioned application process, anticipated application form components and the city’s application approval process. Step 4 – The consultant would prepare all implementing documents necessary to process the needed municipal code amendments. Step 5 – The Historic Preservation Commission would provide a recommendation to the Planning Commission, and the Planning Commission would provide a recommendation to the City Council. Step 6 – The proposed program would be presented to the City Council for its consideration, direction and approval. Step 7 – If the program is approved by the City Council, the city would notify the owners of eligible properties as directed, and then commence work with interested property owners to process their Mills Act contract applications. Implementation and ongoing costs Pre-approval inspection and the costs to retain a consultant to develop a preservation plan would cost about $7,000 to $10,000 per historic site. The cost to perform the restoration work varies, based on the findings of the report and condition of the structure(s). Based on information provided by other cities, the homeowner is typically responsible for covering these costs. The city’s cost to review and process each Mills Act contract application would be expected to be less than $3,000 per application. However, the city would have to perform inspection monitoring every five years thereafter, which would be expected to cost about $500 for each inspection. The breakdown of these costs is provided in Exhibit 3. The funding and resources needed to implement a prospective Mills Act Program would be reviewed and considered in conjunction with the necessary municipal code amendments. Compliance with General Plan Staff reviewed the goals and policies of city’s General Plan to ensure there were no impediments to the City Council initiating the work program. This preliminary General Plan analysis, included as Exhibit 4, concluded that the prospective work program would be consistent with the goals and policies of the General Plan. Options The City Council can choose to direct staff to develop a Mills Act Program for the city. If so directed, staff would return to the City Council at a later date with a proposed program, and its potential benefits and drawbacks, for the City Council’s consideration, direction and approval. HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 4 of 45 Sept. 12, 2022 ITEM 2 52 of 106 Fiscal Analysis There is no direct fiscal impact associated with receiving this report. The $35,000 in funds needed for a professional services agreement with a consultant are included in the current fiscal year 2021-22 Community Development Department budget. The Mills Act would likely have a detrimental impact on the city’s property tax; however, the current value and impact are unknown. Each property’s tax base is different. The County Assessor’s Office determines the value of the historic property based upon its ability to generate income. Based on a review of other local Mills Act Programs, execution of a single Mills Act contract for a single property could result in reduced property tax revenue of several hundred to a couple thousand dollars per annum, with similar losses to the local school district. Each Mills Act contract application would provide an estimate of the property owner’s tax savings as well as an estimate of the city’s property tax reduction. It is important to note that property valuation thresholds could be added to each Mills Act contract to ensure that revenue loss for the city is minimized. Direct budget implications in future years would also include staff resources and/or other direct expenses to support the implementation of the Mills Act. These costs could be offset by Mills Act application fees and, if desired, any inspection monitoring fees established by the City Council. Next Steps If directed by the City Council, staff will execute a professional services agreement with a qualified consultant. Staff estimates that a professional services agreement could be executed within 60 days and a draft ordinance could be prepared and presented to the City Council for review and consideration within 12 to 18 months. Environmental Evaluation (CEQA) The California Environmental Quality Act requires an agency to complete an environmental review before committing itself to a definite course of action in regard to a proposed project (CEQA Guidelines Section 15352). Environmental review must occur as early as feasible in the planning process to enable environmental considerations to influence project program and design, yet late enough to provide meaningful information for environmental assessment (CEQA Guidelines Section 15004(b)). At this time, the City Council is not taking any action that would constitute approval of a municipal or zoning code amendment. Rather, the City Council is only being asked to provide direction on initiating the process. CEQA exempts from its application those projects that involve “only feasibility or planning studies for possible future actions which the agency, board or commission has not approved, adopted, or funded” and which do not have a legally binding effect on later activities. (CEQA Guidelines Section 15262.) This agenda item involves the initiation of a city-sponsored work program for possible future actions, which have not been approved or adopted. (The City Council retains full discretion either to approve or disapprove the project). To fall under this exemption, however, the lead agency is required to “consider environmental factors.” The proposed study could lead to an ordinance that increases the number of sites that restore and maintain their historical resources. Those new uses and activities generally will not lead to materially different environmental effects than uses or activities already allowed. The establishment of a Mills Act Ordinance would not authorize any new development. The HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 5 of 45 Sept. 12, 2022 ITEM 2 53 of 106 prospective ordinance would only encourage the continued use of existing structures and the continuance of existing land uses. Therefore, the action before the City Council is statutorily exempt from CEQA in keeping with CEQA Guidelines Section 15262 – Feasibility and Planning Studies. Nonetheless, all relevant environmental factors would be analyzed in more depth through the CEQA process. Public Notification and Outreach This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to scheduled meeting date. Exhibits 1. Mills Act questions and answers 2. California Office of Historic Preservation’s list of local governments with Mills Act programs 3. Breakdown of costs of implementing a Mills Act Program 4. General Plan consistency analysis HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 6 of 45 Sept. 12, 2022 ITEM 2 54 of 106 Mills Act - Questions and answers What is the Mills Act? Enacted in 1972, the Mills Act legislation grants participating local agencies (cities and counties) the authority to enter into contracts with owners of qualified historic properties who actively participate in the restoration and maintenance of their historic properties while receiving property tax relief. The Mills Act helps support the restoration and preservation of qualified historic buildings by private property owners. Why should the City of Carlsbad participate in a Mills Act? The Mills Act allows local agencies to establish specific priorities for rehabilitating historic resources, encouraging seismic safety programs and other life safety issues, contributing to affordable housing, promoting heritage tourism, and retaining the sense of place and continuity with the community’s past. There is little direct cost to the city to incentivize the restoration and preservation of qualified historic buildings by private property owners. If the city moves forward to implement the Mills Act, why should the city develop guidelines to help administer the Mills Act Program? Guidelines may address specific provisions such as local eligibility criteria, application procedures, contract terms, and termination clauses, if desired/needed. Under the Mills Act, each local agency may establish its own criteria and determine how many contracts it will allow in its jurisdiction. Although many Mills Act Programs look similar, there may be a significant local interest to be served, which may differ from one locality to another. If I own a historic property, am I obligated to participate in the Mills Act program? No. If the prospective Mills Act Program were to be adopted in the city, participation in the program would be voluntary. What are the benefits to a property owner to participate in a Mills Act Program? The Mills Act allows local agencies to provide incentives to keep historic property, historic. The benefit runs with title (indefinite) and accepting the tax benefit is voluntary. Owners of historic buildings may qualify for property tax relief if they pledge to rehabilitate and maintain the historical and architectural character of their properties for at least a ten-year period. The Mills Act Program is especially beneficial for recent buyers of historic properties and for current owners of historic buildings who have made major improvements to their properties. Mills Act contract participants may realize substantial property tax savings of between 40% and 60% each year for newly improved or purchased older properties. Valuations of Mills Act properties are determined by the income approach to value, which estimates the market value of a property based on the income it generates, rather than by the standard market approach to value, which is HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 7 of 45 Sept. 12, 2022 ITEM 2 55 of 106 based on its potential selling price. Properties that have been under the same ownership for a long time are assessed lower property taxes than homes sold more recently, so the owners of those properties will most likely not benefit from the Mills Act. What are the general terms of a Mills Act contract? If the prospective Mills Act Program were to be adopted in the city, the scope of a Mills Act contract would be similar to that of other agencies. Property owners would agree to restore, maintain, and protect the property in accordance with specific historic preservation standards and conditions identified in a formal agreement, generally known as a Mills Act or Historical Property contract. The responsibilities of Mills Act contract agreements are established by state law and any other requirements set up by the local Mills Act Program. Generally, the property owner is required to maintain and preserve the site in accordance with the Secretary of the Interior's Standards. Each local agency may establish their own criteria and determines how many contracts they will allow in their jurisdiction, so the terms of a Mills Act contract would reflect the priorities of any locally adopted program or policy, subject to City Council approval. How long is a Mills Act contract? A formal agreement, generally known as a Mills Act or Historical Property contract, is executed between the local government and the property owner for a minimum ten- year term. The agreement is automatically renewed each year for an additional year, and changes the expiration date so that 10 years is still left in the term of the agreement. Mills Act contracts are transferred to new owners when the property is sold. Subsequent owners are bound by the Mills Act contract and have the same rights and obligations as the original owner who entered into the Mills Act contract. The agreement will thus continue in effect indefinitely unless notice is served by either party for the automatic renewals to stop. If either party serves notice for the automatic renewals to stop, the agreement will expire on the agreement's current expiration date, which would be about ten years after the notice is recorded. Does my property qualify for the Mills Act? At this point, the city is only considering whether there is support to initiate a Code amendment to prepare a Mills Act Program. However, should a Mills Act Program be adopted, qualified properties most likely would include residential properties listed on the local, state or national historic register. Am I required to open my property to the public under a Mills Act contract? No. The Mills Act Program does not require the property owner to grant public access to the property. The Mills Act contract would likely specify that (by prior appointment) an inspection of the property may be made by city officials, as may be needed to determine compliance with the terms and provisions of the Mills Act contract. HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 8 of 45 Sept. 12, 2022 ITEM 2 56 of 106 How are tax assessments determined for properties under the Mills Act? The State Board of Equalization has provided guidelines for county assessors for use in assessing properties under the Mills Act. On June 8, 1976, the voters of California approved Proposition 7 which amended section 8 of article XIII of the California Constitution. This amendment requires that restricted historical property be valued on a basis that is consistent with its restrictions and uses. Sections 439 through 439.4 were added to the Revenue and Taxation Code to implement Proposition 7. These statutes, in particular Section 439.2, prohibit a valuation of restricted historical property based on sales data and instead require that such property be valued by a prescribed income capitalization method. Using the income approach, the County Assessor’s Office values the property according to the capitalization of income, whereby the property’s potential income is divided by a pre-determined capitalization rate to establish a new assessed property value to be taxed. The income approach for an owner occupied property is based on its potential rental value. Commercial, industrial, or multi-family properties would have an actual income that is used for the calculation. The County Assessor’s Office is responsible for making the final determination of the taxes due when the approved Mills Act contract is submitted and recorded, and will continue to conduct property tax assessments on an annual basis. How much will my property taxes be reduced under a typical Mills Act Program? Instead of basing your property tax on the purchase price of your property (Proposition 13, Base Year Value), the Assessor reassesses your property on its ability (or potential ability) to produce income (income approach). Using the income approach, Mills Act contract participants may realize substantial property tax savings of between 40% and 60% each year for newly improved or purchased older properties. Valuations of Mills Act properties are determined by the income approach to value, which estimates the market value of a property based on the income it generates, rather than by the standard market approach to value, which is based on its potential selling price. Properties that have been under the same ownership for a long time are assessed lower property taxes than homes sold more recently, so the owners of those properties will most likely not benefit from the Mills Act. It is possible that the Proposition 13 value may actually be lower than the restricted value with the Mills Act, and the property would receive no immediate benefit. Some owners who would receive no benefit still apply for the Mills Act. It can be a selling point to a potential buyer because the property would not be reappraised at its full market value upon sale if the property was already under a historical contract. HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 9 of 45 Sept. 12, 2022 ITEM 2 57 of 106 How long will it take before I notice the reduction on my property tax bill under a typical Mills Act Program? The Assessor's Office implements the Mills Act valuation once a year. Contracts recorded by December 31st would be implemented on the following November tax bill. Since the City Council is only considering the initiation of a work program to implement the Mills Act at its meeting on October 19, 2021, Mills Act applications would likely not be ready for intake until late 2022 or early 2023, which may likely be implemented for 2023 or 2024 tax secured assessment roll. Are there potential penalties for property owners under a typical Mills Act contract? Yes. If a property is not maintained under the terms of the contract, is improperly altered, or if rehabilitation work is not performed, the owner could be found in breach of contract. If the breach of contract cannot be resolved to satisfy the contract, the contract is cancelled. As a penalty, the owner is assessed a 12.5% penalty based on the current fair-market value of the property. HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 10 of 45 Sept. 12, 2022 ITEM 2 58 of 106 California Office of Historic Preservation List of agencies in California with Mill Act agreements Data retrieved Oct. 1, 2021; accessed from https://ohp.parks.ca.gov/?page_id=30346 Jurisdiction: Anaheim County: Orange Contact: Christine Nguyen, Associate Planner 200 S.Anaheim Blvd., Suite 162 Anaheim, CA 92805 Phone: 714-765-4942 Email: cnguyen@anaheim.net Web: https://www.anaheim.net/ Jurisdiction: Arcata County: Humboldt Contact: Delo Freitas, Senior Planner 736 F Street Arcata, CA 95521 Phone: 707-825-2213 Email: dfreitas@cityofarcata.org Web: https://www.cityofarcata.org/ Jurisdiction: Belvedere County: Marin Contact: Pierce Macdonald, City Planner 450 San Rafael Ave. Belvedere, CA 94920 Phone: 415-435-3838 Email: pmacdonald@cityofbelvedere.org Web: https://www.cityofbelvedere.org/ Jurisdiction: Benicia County: Solano Contact: Suzanne Thorsen, Associate Planner 250 East L. Street Benicia, CA 94510 Phone: 707-746-4279 Email: sthorsen@ci.benicia.ca.us Web: https://www.ci.benicia.ca.us/ Jurisdiction: Orange (City) County: Orange Contact: Marissa Moshier, Assoc. Planner, Historic Preservation 300 East Chapman Ave. Orange, CA 92666-1591 Phone: 714-744-7243 Email: mmoshier@cityoforange.org Web: https://www.cityoforange.org/ Jurisdiction: Orange (County) County: Orange Contact: Brian Grummer, Appraiser 630 N. Broadway Santa Ana, CA 92702 Phone: 714-834-3448 Email: none stated Web: https://www.ocgov.com/ Jurisdiction: Oxnard County: Ventura Contact: Dennis Scala, Management Analyst III 214 S. C Street Oxnard, CA 93030 Phone: 805-385-7429 Email: dennis.scala@ci.oxnard.ca.us Web: https://www.oxnard.org/ Jurisdiction: Palm Springs County: Riverside Contact: Ken Lyon, Associate Planner 3200 Tahquitz Canyon Way Palm Springs, CA 92263 Phone: 760-323-8245 Email: ken.lyon@palmsprings-ca.gov Web: https://www.palmspringsca.gov/ HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 11 of 45 Sept. 12, 2022 ITEM 2 59 of 106 Jurisdiction: Berkeley County: Alameda Contact: Sally Zarnowitz, Senior Preservation Planner 2120 Milvia Street Berkeley, CA 94704 Phone: 510-981-7429 Email: szarnowitz@cityofberkeley.info Web: https://www.cityofberkeley.info/Ho me.aspx Jurisdiction: Beverly Hills County: Los Angeles Contact: Mark Odell, Urban Designer 455 North Rexford Drive Beverly Hills, CA 90210 Phone: 310-285-1116 Email: modell@beverlyhills.org Web: https://www.beverlyhills.org/ Jurisdiction: Brea County: Orange Contact: Adrienne Gladso, Senior Planner Number 1 Civic Center Way Brea, CA 92821 Phone: 714-990-7674 Email: adrienneg@ci.brea.ca.us Web: https://www.ci.brea.ca.us/ Jurisdiction: Calabasas County: Los Angeles Contact: Krystin Rice, Associate Planner 100 Civic Center Way Calabasas, CA 91302 Phone: 818-224-1709 Email: krice@cityofcalabasas.com Web: https://www.cityofcalabasas.com/ Jurisdiction: Chico County: Butte Contact: Planning Services Department 411 Main Street Chico, CA 95927 Phone: 530-879-6800 Email: zoning@chicoca.gov Web: http://www.chico.ca.us/ Jurisdiction: Palo Alto County: Santa Clara Contact: Matthew Weintraub, Planner 250 Hamilton Ave. Palo Alto, CA 94303 Phone: 650-329-2247 Email: matthew.weintraub@cityofpaloalto.org Web: https://www.cityofpaloalto.org/ Jurisdiction: Pasadena County: Los Angeles Contact: Kevin Johnson, Senior Planner 175 N. Garfield Pasadena, CA 91109-7215 Phone: 626-744-7806 Email: kevinjohnson@cityofpasadena.net Web: https://www.cityofpasadena.net/ Jurisdiction: Pomona County: Los Angeles Contact: Judy Kollar, Senior Planner 505 South Garey Ave. Pomona, CA 91790 Phone: 909-469-2082 Email: judy_kollar@ci.pomona.ca.us Web: https://www.ci.pomona.ca.us/ Jurisdiction: Rancho Cucamonga County: San Bernardino Contact: Larry Henderson, Planner 10050 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909-477-2750 Email: lhenders@ci.rancho-cucamonga.ca.us Web: https://www.cityofrc.us/ HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 12 of 45 Sept. 12, 2022 ITEM 2 60 of 106 Jurisdiction: Chula Vista County: San Diego Contact: Lynnette Tessitore-Lopez, Hist. Preservation Program Mgr 276 4th Ave., Bldg. C Chula Vista, CA 91910 Phone: 619-409-5465 Email: ltessitore-lopez@ci.chula-vista.ca.us Web: https://www.chulavistaca.gov/ Jurisdiction: Claremont County: Los Angeles Contact: Andrea Heywood, Associate Planner 207 Harvard Ave. Claremont, CA 91711 Phone: 909-399-5353 Email: aheywood@ci.claremont.ca.us Web: https://www.ci.claremont.ca.us/ Jurisdiction: Colton County: San Bernardino Contact: Mario Suarez, Senior Planner 650 N. LaCadena Drive Colton, CA 92324 Phone: 909-370-5523 Email: msuarez@ci.colton.ca.us Web: https://www.ci.colton.ca.us/ Jurisdiction: Corona County: Riverside Contact: Nancy Gutierrez, Associate Planner 815 West 6th Corona, CA 92887 Phone: 951-279-3749 Email: nancyg@ci.corona.ca.us Web: https://www.coronaca.gov/ Jurisdiction: Coronado County: San Diego Contact: Ann McCaull, Community Development 1825 Strand Way Coronado, CA 92118 Phone: 619-522-7326 Email: amccaull@coronado.ca.us Web: https://www.coronado.ca.us/ Jurisdiction: Redondo Beach County: Los Angeles Contact: Aaron Jones, Associate Planner 415 Diamond Street Redondo Beach, CA 90277 Phone: 310-372-1171 Email: aaron.jones@redondo.org Web: https://www.redondo.org/ Jurisdiction: Redwood City County: San Mateo Contact: Steven Turner, Planning Manager 1017 Middlefield Road Redwood City, CA 94064 Phone: 650-780-5934 Email: sturner@redwoodcity.org Web: https://www.redwoodcity.org/ Jurisdiction: Riverside County: Riverside Contact: Teri Delcamp, Sr. Planner Historic Preservation 3900 Main Street Riverside, CA 92522 Phone: 951-826-5371 Email: tdelcamp@riversideca.gov Web: https://www.riversideca.gov/ Return to Index Jurisdiction: Sacramento (City) County: Sacramento Contact: Carson Anderson, Preservation Director 300 Richards Blvd., 3rd Floor Sacramento, CA 95811 Phone: 916-808-8259 Email: canderson@cityofsacramento.org Web: http://www.cityofsacramento.org/ Jurisdiction: Salinas County: Monterey Contact: Robert Latino, Associate Planner 65 West Aisal Street Salinas, CA Phone: 831-758-7206 Email: robertl@city.salinas.us Web: https://www.cityofsalinas.org/ HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 13 of 45 Sept. 12, 2022 ITEM 2 61 of 106 Jurisdiction: Covina County: Los Angeles Contact: Alan Carter, Associate Planner 125 East College Street Covina, CA 91723-2199 Phone: 626-858-7231 Email: acarter@ci.covina.ca.us Web: https://covinaca.gov/ Jurisdiction: Dana Point County: Orange Contact: Brenda Chase, Senior Planner 33282 Golden Lantern Dana Point, CA 92629 Phone: 949-248-3568 Email: bchase@danapoint.org Web: https://www.danapoint.org/ Jurisdiction: Danville County: Contra Costa Contact: Bonnie Guttman, Senior Planner 510 La Gonda Way Danville, CA 94526-1740 Phone: 925-314-3395 Email: bguttman@ci.danville.ca.us Web: https://www.danville.ca.gov/ Jurisdiction: Encinitas County: San Diego Contact: Kathy Noel, Planner 505 Vulcan Ave. Encinitas, CA 92024 Phone: 760-633-2710 Email: knoel@ci.encinitas.ca.us Web: https://encinitasca.gov/ Jurisdiction: Escondido County: San Diego Contact: Paul Bingham, Assistant Planner II 201 N. Broadway Escondido, CA 92025-2798 Phone: 760-839-4306 Email: pbingham@ci.escondido.ca.us Web: https://www.escondido.org/home.as px Jurisdiction: San Bernardino (City) County: San Bernardino Contact: Catherine Allison, Administrative Assistant 300 North D Street San Bernardino, CA 92418 Phone: 909-384-5122 Email: callison@sbcity.org Web: http://www.ci.san-bernardino.ca.us/ Jurisdiction: San Clemente County: Orange Contact: Jonathan Lightfoot, Associate Planner 910 Calle Negocio San Clemente, CA 92673 Phone: 949-388-2320 Email: lightfootj@san-clemente.org Web: https://www.san-clemente.org/ Jurisdiction: San Diego (City) County: San Diego Contact: Emma Haggerty, Associate Planner 1222 First Ave., MS512 San Diego, CA 92101 Phone: 619-236-7173 Email: EHaggerty@sandiego.gov Web:https://www.sandiego.gov/ Jurisdiction: San Diego (County) County: San Diego Contact: Gail Wright, Staff Liason, Historic Sites Bd 5201 Ruffin Road, Suite B San Diego, CA 92123-1666 Phone: 858-694-3003 Email: gail.wright@sdcounty.ca.gov Web: https://www.sandiegocounty.gov/ Jurisdiction: San Dimas County: Los Angeles Contact: Anne Nguyen, Associate Planner 245 East Bonita Ave. San Dimas, CA 91773 Phone: 909-394-6255 Email: anguyen@sandimas.gov Web: https://sandimasca.gov/ HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 14 of 45 Sept. 12, 2022 ITEM 2 62 of 106 Jurisdiction: Eureka County: Humboldt Contact: Kristen Goetz, Senior Planner 531 K Street Eureka, CA 95501 Phone: 707-441-4166 Email: kgoetz@ci.eureka.ca.gov Web: https://www.ci.eureka.ca.gov/ Jurisdiction: Fontana County: San Bernardino Contact: Craig Brouerton, Planning Division 8358 Sierra Ave. Fontana, CA 92335 Phone: 909-350-7625 Email: cbrourton@fontana.org Web: https://www.fontana.org/27/Govern ment Jurisdiction: Fullerton County: Orange Contact: Matt Foulkes, Community & Economic Development 303 W. Commonwealth Ave. Fullerton, CA 92832 Phone: 714-738-6878 Email: mfoulkes@cityoffullerton.com Web: http://cityoffullerton.com/ Return to Index Jurisdiction: Gilroy County: Santa Clara Contact: Cindy Casper 7351 Rosana Street Gilroy, CA 95020 Phone: 408-8460440 Email: cindie.taylor@ci.gilroy.ca.us Web: http://www.cityofgilroy.org/ Jurisdiction: Glendale County: Los Angeles Contact: Jay Platt, Planner 633 E. Broadway, Rm 103 Glendale, CA 91206-4386 Phone: 818-937-8155 Email: jplatt@ci.glendale.ca.us Web: https://www.glendaleca.gov/ Jurisdiction: San Francisco (City) County: San Francisco Contact: Elizabeth Gordon- Jonckheer, Principal Planner 1650 Mission Street, Suite 400 San Francisco, CA 94103 Email: CPC.MillsActInfo@sfgov.org Web: https://www.sfplanning.org Jurisdiction: San Gabriel County: Los Angeles Contact: Larissa De La Cruz, Senior Planner 425 South Mission Drive San Gabriel, CA 91778 Phone: 626-308-2806, ext. 4625 Email: ldelacruz@sgch.org Web: https://sangabrielcity.com/ Jurisdiction: San Juan Capistrano County: Orange Contact: Terri Delcamp, Historic Preservation Officer 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Phone: 949-443-6330 Email: tdelcamp@sanjuancapistrano.org Web: http://sanjuancapistrano.org/ Jurisdiction: San Luis Obispo (City) County: San Luis Obispo Contact: Brian Leveille, Senior Planner 990 Palm Ave. San Luis Obispo, CA 93401 Phone: 805-781-7166 Email: bleveille@slocity.org Web: https://www.slocity.org/ Jurisdiction: San Mateo (City) County: San Mateo Contact: Ronald Munekawa, Senior Planner 330 W. 20th Ave. San Mateo, CA 94403 Phone: 650-552-7202 Email: rmunekawa@cityofsanmateo.org Web: https://www.cityofsanmateo.org/ HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 15 of 45 Sept. 12, 2022 ITEM 2 63 of 106 Jurisdiction: Glendora County: Los Angeles Contact: David Chantarongsu, City Planner 116 E. Foothill Blvd. Glendora, CA 91741 Phone: 626-912-8217 Email: dchantarongsu@ci.glendora.ca Web: https://www.cityofglendora.org/ Jurisdiction: Highland County: San Bernardino Contact: Kim Stater, Redevelopment Assistant 27215 Baseline Highland, CA 92346 Phone: 909-864-8732 ext. 204 Email: kstater@cityofhighland.org Web: http://ci.highland.ca.us/ Jurisdiction: La Mesa County: San Diego Contact: Allyson Kinnard, Associate Planner 8130 Allison Ave. La Mesa, CA 91941 Phone: 6199-667-1196 Email: akinnard@ci.la-mesa.ca.us Web: http://www.cityoflamesa.us/ Jurisdiction: La Verne County: Los Angeles Contact: Arlene Andrew, Senior Planner 3660 D Street La Verne, CA 91750 Phone: 909-596-8706 Email: aandrew@ci.la-verne.ca.us Web: https://www.cityoflaverne.org/ Jurisdiction: Laguna Beach County: Orange Contact: Matina Speare Caron, Senior Planner 505 Forest Ave. Laguna Beach, CA 92651 Phone: 949-464-6629 Email: mcaron@lagunabeachcity.net Web: http://lagunabeachcity.net/ Jurisdiction: Santa Ana County: Orange Contact: Melanie McCann, Senior Planner PO Box 9188 (M-20) Santa Ana, CA 92702 Phone: 714-647-5842 Email: mmccann@santa-ana.org Web: https://www.santa-ana.org/ Jurisdiction: Santa Barbara (City) County: Santa Barbara Contact: Nicole Hernandez, Associate Planner 630 Garden Street Santa Barbara, CA 93101 Phone: 805-564-5470, ext. 4557 Email: nhernandez@santabarbaraca.gov Web: https://www.santabarbaraca.gov/ Jurisdiction: Santa Clara (City) County: Santa Clara Contact: Yen Hab Chen, Associate Planner 1500 Warburton Ave. Santa Clara, CA 95050 Phone: 408-615-2450 Email: ychen@santaclaraca.gov Web: https://www.santaclaraca.gov/ Jurisdiction: Santa Clara (County) County: Santa Clara Contact: Dana Peak, Historical Heritage Coordinator 70 W. Hedding Street San Jose, CA 94510 Phone: 408-299-5798 Email: dana.peak@pln.sccgov.org Web: https://www.sccgov.org/sites/scc/Documents/ho me.html Jurisdiction: Santa Monica County: Los Angeles Contact: Scott Albright, Senior Planner 1685 Main Street, Rm 212 Santa Monica, CA 90407-2200 Phone: 310-458-3880 Email: scott.albright@smgov.net Web: https://www.smgov.net/ HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 16 of 45 Sept. 12, 2022 ITEM 2 64 of 106 Jurisdiction: Larkspur County: Marin Contact: Kristin Teicahe, Heritage Preservation Board 400 Magnolia Ave. Larkspur, CA 94939 Phone: 415-927-5038 Email: kteicahe@ci.larkspur.ca.us Web: https://ci.larkspur.ca.us/ Jurisdiction: Long Beach County: Los Angeles Contact: Christopher Koontz, Advance Planning Officer 333 West Ocean Blvd., 7th Floor Long Beach, CA 90802 Phone: 562-570-6288 Email: christopher.koontz@longbeach.gov Web: http://www.longbeach.gov/ Jurisdiction: Los Altos County: Santa Clara Contact: Zachary Dahl, Associate Planner 1 N. San Antonio Rd. Los Altos, CA 94022 Phone: 650-947-2633 Email: zach.dahl@ci.los-altos.ca.us Web: https://www.losaltosca.gov/ Jurisdiction: Los Angeles (City) County: Los Angeles Contact: Lambert Giessinger, Historical Prop. Contracts Mgr. 221 N. Figueroa Street, Suite 1350 Los Angeles, CA 90012 Phone: 213-847-3648 Email: lambert.giessinger@lacity.org Web: https://www.lacity.org/ Jurisdiction: Los Angeles (County) County: Los Angeles Contact: Dean Edwards, Sr Regional Planning Assistant 320 West Temple Street, 13th Floor Los Angeles, CA 90012 Phone: 213-974-6435 Email: dedwards@planning.lacounty.gov Web: https://lacounty.gov Jurisdiction: Saratoga County: Santa Clara Contact: Shweta Bhatt, Assistant Planner 13777 Fruitvale Ave. Saratoga, CA 95070 Phone: 408-868-1266 Email: sbhatt@saratoga.ca.us Web: https://www.saratoga.ca.us/ Jurisdiction: Sierra Madre County: Los Angeles Contact: Kurt Christiansen, Director of Developmental Svcs. 232 W. Sierra Madres Blvd. Sierra Madre, CA 91024 Phone: 626-355-4239 Email: kchristiansen@ci.sierra-madre.ca.us Web: http://www.cityofsierramadre.com/ Jurisdiction: Sonoma (County) County: Sonoma Contact: Denise Peter, Planner III La Plaza A, 2300 County Center Dr., Suite A208 Santa Rosa, CA 95403 Phone: 707-565-7385 Email: dpeter@sonoma-county.org Web: http://sonomacounty.ca.gov/Home/ Jurisdiction: South Pasadena County: Los Angeles Contact: Edward Sissi, Assistant Planner 1414 Mission Street South Pasadena, CA 91030-3298 Phone: 626-403-7227 Email: esissi@southpasadenaca.gov Web: https://www.southpasadenaca.gov/ Jurisdiction: South San Francisco County: San Mateo Contact: Gerry Beaudin, Commission Secretary 315 Maple Ave. South San Francisco, CA 94080 Phone: 650-829-6630 Email: gbeaudin@ssf.net Web: https://www.ssf.net/ HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 17 of 45 Sept. 12, 2022 ITEM 2 65 of 106 Jurisdiction: Modesto County: Stanislaus Contact: Wayne Mathes, Cultural Services Manager 1010 10th Street Modesto, CA 95354 Phone: 209-577-5335 Email: wmathes@modestogov.com Web: http://www.modestogov.com/ Jurisdiction: Monrovia County: Los Angeles Contact: Steve Sizemore, Planning Division Manager 415 South Ivy Ave. Monrovia, CA 91016-2888 Phone: 626-932-5539 Email: ssizemore@ci.monrovia.ca.us Web: https://www.cityofmonrovia.org/ Jurisdiction: Monterey (City) County: Monterey Contact: Kim Cole, Planner Colton Hall, City Hall Monterey, CA 93940 Phone: 831-646-3885 Email: cole@ci.monterey.ca.us Web: https://monterey.org/ Jurisdiction: Monterey (County) County: Monterey Contact: Meg Clovis, Cultural Affairs Manager Monterey County Parks, PO Box 5249 Salinas, CA 93915 Phone: 831-755-4913 Email: clovism@co.monterey.ca.us Web: https://www.co.monterey.ca.us/ Jurisdiction: Napa (County) County: Napa Contact: None stated Planning, Building & Environmental Svcs. 1195 3rd Street, 2nd Floor Phone: 707-253-4417 Email: cdp@countyofnapa.org Web: https://www.countyofnapa.org/ Jurisdiction: St Helena County: Napa Contact: Carol Poole, Planning Director 1480 Main Street St Helena, CA 94574 Phone: 707-967-2921 Email: planning@ci.st-helena.ca.us Web: https://www.sthelena.com/ Jurisdiction: Sunnyvale County: Santa Clara Contact: Gerri Caruso, Principal Planner PO Box 3707 Sunnyvale, CA 94088 Phone: 408-730-7591 Email: gcaruso@ci.sunnyvale.ca.us Web: https://sunnyvale.ca.gov/ Return to Index Jurisdiction: Truckee County: Nevada Contact: Jenna Endres, Senior Planner 10183 Truckee Airport Road Truckee, CA 96161 Phone: 530-582-2922 Email: jendres@townoftruckee.com Web: https://www.townoftruckee.com/services Jurisdiction: Tulare (City) County: Tulare Contact: Howard Edson, Developmental Services Director 411 East Kern Ave. Tulare, CA 93274 Phone: 559-684-5631 Email: hedson@ci.tulare.ca.us Web: https://www.tulare.ca.gov/home Jurisdiction: Tuolumne (County) County: Tuolumne Contact: Bev Shane, Director, Community Development 2 South Green Street Sonora, CA 95370 Phone: 209-533-5633 Email: bshane@co.tuo.ca.us Web: https://www.tuolumnecounty.ca.gov/ HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 18 of 45 Sept. 12, 2022 ITEM 2 66 of 106 Jurisdiction: National City County: San Diego Contact: Martin Reder, Principal Planner 1243 National City Road National City, CA 91950 Phone: 619-336-4310 Email: Planning@ci.national-city.ca.us Web: https://www.nationalcityca.gov/ Jurisdiction: Nevada City County: Nevada Contact: Mark Prestwich, City Manager 317 Broad Street Nevada City, CA 95959 Phone: 530-265-2496, ext. 119 Email: mark.prestwich@nevadacityca.org Web: https://www.nevadacityca.gov/ Jurisdiction: Oakdale County: Stanislaus Contact: Steve Baker, City Administrator 280 N. Third Ave. Oakdale, CA 95361 Phone: 209-847-3031 Email: s.baker@ci.oakdale.ca.us Web: https://www.oakdalegov.com/ Jurisdiction: Oakland County: Alameda Contact: Betty Marvin, Historic Preservation Manager 250 Frank H. Ogawa Plaza, Suite 3315 Oakland, CA 94612 Phone: 510-238-6879 Email: bmarvin@oaklandnet.com Web: https://www.oaklandca.gov/ Jurisdiction: Ontario County: San Bernardino Contact: Diane Ayala, Senior Planner 303 East B Street Ontario, CA 91764 Phone: 909-395-2428 Email: dayala@ci.ontario.ca.us Web: https://www.ontarioca.gov/ Jurisdiction: Turlock County: Stanislaus Contact: Debbie Whitmore, Dep. Director, Dev. Svcs. 1565 Broadway, Suite 120 Turlock, CA 95380-5454 Phone: 209-668-5640 Email: dwhitmore@turlock.ca.us Web: https://www.cityofturlock.org/ Jurisdiction: Tustin County: Orange Contact: Scott Reekstin, Principal Planner 300 Centennial Way Tustin, CA 92780 Phone: 714-573-3016 Email: sreekstin@tustinca.org Web: https://www.tustinca.org/ Jurisdiction: Upland County: San Bernardino Contact: John Atwater, Senior Planner 460 N. Euclid Street Upland, CA 91786 Phone: 909-931-4132 Email: jatwater@ci.upland.ca.us Web: https://www.uplandca.gov/ Jurisdiction: Vallejo County: Solano Contact: Bill Tuikka, Planner 555 Santa Clara Street Vallejo, CA 94590 Phone: 707-648-5391 Email: bill.tuikka@cityofvallejo.net Web: https://www.cityofvallejo.net/ Jurisdiction: Ventura (City) County: Ventura Contact: Brian Randall, Planning Department 501 Poll Street Ventura, CA 93002-0099 Phone: 805-654-7882 Email: brandall@ci.ventura.ca.us Web: https://www.cityofventura.ca.gov/ HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 19 of 45 Sept. 12, 2022 ITEM 2 67 of 106 Jurisdiction: Ventura (County) County: Ventura Contact: Dillan Murray, Cultural Heritage Program Planner 800 S. Victoria Ave., L#1740 Ventura, CA 93009 Phone: 805-654-5042 Email: Dillan.Murray@ventura.org Web: https://www.ventura.org/ HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 20 of 45 Sept. 12, 2022 ITEM 2 68 of 106 COST BREAKDOWN IMPLEMENTATION COSTS TO ADMINISTER A MILLS ACT CONTRACT FOR EACH HISTORIC RESOURCE Task Consultant Cost (Applicant Pays) City Service Fee/Cost (Applicant Pays) Pre-approval Inspection and Preservation Plan $7,000 to $10,000 --- Application Processing --- est. < $500 Historic Preservation Commission Staff Report and Hearing $250 est. < $1,000 City Council Staff Report and Hearing $250 est. < $1,000 Contract Execution --- est. < $500 Recording Fees < $50 --- Maintenance or Treatment Plan Varies significantly --- Five-Year Inspection(s) --- est. < $500 each Exhibit 3 HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 21 of 45 Sept. 12, 2022 ITEM 2 69 of 106 GENERAL PLAN CONSISTENCY ANALYSIS The ability to enact city ordinances flows directly from the city’s general police power, which among other things specifies that city ordinances must be consistent the city’s general plan. Since the City Council is only considering the initiation of a work program to implement the Mills Act at its meeting on October 19, 2021, it is helpful to prepare a preliminary assessment regarding General Plan conformance to ensure that the prospective work program would be consistent with General Plan policies. Based on a preliminary review, the prospective work program would be consistent with the following General Plan policies: Land Use and Community Design Element 2-G.32 Celebrate the Barrio’s history and resources, and foster development of cohesive streetscapes with strategic improvements, including plazas where feasible. Staff notes on consistency with the Land Use Element: Continued investment in historic communities and buildings is widely recognized as contributing to the goals of neighborhood revitalization. The prospective Mills Act Program would be consistent with this policy because it provides a financial incentive to private property owners to protect and rehabilitate privately-owned properties and encourage private owners to protect cultural heritage resources. Open Space, Conservation, and Recreation Element 4-P.34 Promote expansion of recreational and educational use opportunities in areas of significant ecological value, such as lagoons, where discretionary use of the resource allows. Consider partnering with private foundations for the conservation of such lands and the development of educational programming. •Combine historically significant sites with recreational learning opportunities, where possible. •Utilize community parks in support of historical and cultural programs and facilities when feasible and appropriate. •Coordinate the efforts of the Historic Preservation Commission on the siting and care of historic ruins within parks Staff notes on consistency with the Open Space, Conservation, and Recreation Element: Promoting the preservation and enhancement of landmarks, sites, and buildings would help facilitate a greater interest in cultural, historical, archaeological and urban design significance. The prospective Mills Act Program would be consistent with this policy because participation in the program encourages the preservation and enhancement of properties in Exhibit 4 HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 22 of 45 Sept. 12, 2022 ITEM 2 70 of 106 accordance with the Secretary of the Interior Standards, which would lead to an expansion of recreational and educational opportunities. Arts, Culture, History, and Education Element 7-G.1 Recognize, protect, preserve, and enhance the city’s diverse heritage. 7-G.2 Make Carlsbad’s history more visible and accessible to residents and visitors. 7-P.2 Encourage the use of regional, state and federal programs that promote cultural preservation to upgrade and redevelop properties with historic or cultural value. Consider becoming a participant in the Mills Act tax incentive program. 7-P.3 Formalize a program of historical markers/plaques at resources in state and national registers or of local importance. 7-P.4 Promote community education of historic resources, integration and celebration of such resources as part of community events: a. Enhance the community’s recognition that objects of historic importance increase both fiscal and community value. b. Promote the use of historic resources for the education, pleasure and welfare of the people of the city. Cooperate with historic societies, schools, libraries, parks and community members to stimulate public interest in historic preservation. c. Maintain historical reference materials on file at the Carlsbad City Library. 7-P.5 Encourage the rehabilitation of qualified historic structures through application of the California Historical Building Code. 7-P.6 Ensure compliance with the City of Carlsbad Cultural Resource Guidelines to avoid or substantially reduce impacts to historic structures listed or eligible to be listed in the National Register of Historic Places or the California Register of Historical Resources. Staff notes on consistency with the Arts, Culture, History, and Education Element: The prospective Mills Act Program would be consistent with these policies because participation in the program encourages the preservation and enhancement of properties, which helps encourage private owners to protect cultural heritage resources. The use of the Mills Act is an integral part of many successful historic rehabilitation projects in the state. Therefore, the prospective Mills Act Program would help incentivize the rehabilitation of existing properties as a cost-effective alternative to new, more expensive construction and protect and preserve the city’s diverse heritage and make it more visible and accessible to residents, businesses, and other community members. HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 23 of 45 Sept. 12, 2022 ITEM 2 71 of 106 HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 24 of 45 Sept. 12, 2022 ITEM 2 72 of 106 Tammy Cloud-McMinn From: Sent: To: Cc: Subject: maryanneviney@dslextreme.com Tuesday, October 19, 2021 1 :59 PM Council Internet Email City Clerk October 19, City Council Meeting, Item # 8: INFORMATION ON THE M ILLS ACT All Receive -Agenda Item# fl For the Information of the: Honorable Mayor and City Council Members, CITY COUNCIL Date Jr,hc;/1/ CA v CC ✓ CM_~_ACM ~CM(3) .,.--- Please consider lending your support to help maintain Carlsbad historic structures through the Mills Act, including the Culver House, as one example. The option to maintain historic structures through the Mills Act can serve to complement and enliven the vision of the proposed Arts and Culture District, in concert with the Village and Barrio Master Plan. Per the City's goals, the option could help "Further support the promotion and development of the Village and Barrio's unique attributes". The California Cultural District site "Encourages the preservation and reuse of historic buildings and other artistic and culturally significant structures". I appreciate your consideration. Sincerely, Mary Anne Viney CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe. 1 HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 25 of 45 Sept. 12, 2022 ITEM 2 73 of 106 Tammy Cloud-McMinn From: Sent: AM Lafferty <alaff.nsad@gmail.com> Tuesday, October 19, 2021 10:27 AM To: Cc: City Clerk; Matthew Hall; Keith Blackburn; Peder Norby; Priya Bhat-Patel; Teresa Acosta Gary Barberio; Curtis Jackson; Geoff Patnoe; Don Neu; Suzanne Smithsof') Subject: Re: Public Comment-Culver House 3140 Highland Drive, Carlsbad Attachments: 04-30-21 Memo -Culver Myers Capp House Located at 3140 Highland Drive (District 1) (2}.pdf Honorable Mayor Matt Hall and Members of the City Council City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 All Receive -Agenda Item # _.8_ For the Information of the: CITY CO UNCIL Date J0/1 <)/"JtA v CC / CM ,...,...-ACM .,.-DCM (3) ~ Subject: Historic Culver/Myers/Capp House, 3140 Highland Drive, Carlsbad, California 92008 Dear Carlsbad City Council, Please support the effort to adopt the Mills Act. The following actions by Council could maintain the historic resource status and preserve the Cu lver house. 1. Implement goals and policies designed to protect local historic resources throughout the City. 2. Adopt the Mills Act to incentiviie preservation of local historically designated properties. 3. Reinstate the pre-1990 local list of historic resources. A City Council approved local Historic Resource List to adopt the Mills Act"is needed. Attached is Carlsbad City Council Memorandum of 4/30/2021, including the approved letter from the Historic Preservation Commission dated 4/15/2021, identifying the pre-1990 local Historic Resource List. Developing a program for Council to adopt the Mills Act as a tool for preservation restoration, could help maintain the historic status of the Culver House and other significant local landmarks in Carlsbad. Thank you for considering these actions. Alicia Lafferty, AIA 3936 Jefferson Street Carlsbad, CA 92008 Serving as Planning Commission Member and Ex-Officio Member of the Carlsbad Historic Preservation Commission On Mon, Apr 5, 2021 at 4:03 PM AM Lafferty <alaff.nsad@gmail.com> wrote: I Carlsbad City Council, Please include the attached letter for the general public comments during the Carlsbad City Council meeting scheduled for April 6, 2021. Thank you, Alicia Lafferty 1 HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 26 of 45 Sept. 12, 2022 ITEM 2 74 of 106 To the members of the: CITY COUNCIL Date ~,~~ 1-zt CA ✓ CC .,/ CM _/2cM /ocM {3) _J.L April 30, 2021 Council Memorandum To: From: Honorable Mayor Hall and Members of the City Council Gary Barberio, Deputy City Manager, Community Services Suzanne Smithson, Library & Cultural Ai:,ts-1;:>irector Via: Geoff Patnoe, Assistant City Manager 'G{I {city of Carlsbad Memo ID# 2021091 Re: Culver-Myers-Capp House Located at 3140 Highland Drive {District 1} This memorandum serves as a transmittal of a letter from the Historic Preservation Commission to the City Council regarding options to preserve the Culver-Myers-Capp house located at 3140 Highland Drive. Background Following public comment received at the Jan. 11, 2021, Historic Preservation Commission Meeting and public comment received at the Jan. 12, 2021, City Council Meeting, the Historic Preservation Commission discussed the Culver-Myers-Capp house at the March 8, 2021, Historic Preservation Commission Meeting. Commissioners voted to draft a letter from the Historic Preservation Commission to be presented to City Council regarding options to preserve the historic home. The Historic Preservation Commissioners drafted, discussed and approved a letter at a Special Meeting held April 15, 2021 (Attachment A). An earlier memorandum on this issue was provided to the City Council on Jan. 28, 2021 (Attachment B). Next Steps The attached letter from the Historic Preservation Commission lists and suggests actions that the City Council could take to preserve the Culver-Myers-Capp house. There are currently no city plans associated with the acquisition or preservation of the Culver-Myers-Capp house. If the City Council would like staff to pursue any actions regarding the property, the City Council would need to provide such direction to city staff at a future City Council Meeting. Staff will be presenting a list of historic properties to the City Council in the upcoming months to clarify which historic properties comprise the city's current voluntary historic property inventory. Community Services Library & Cultural Arts 1775 Dove Lane I Carlsbad, CA 92011 I 760-602-2011 t HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 27 of 45 Sept. 12, 2022 ITEM 2 75 of 106 Council Memo -Culver-Myers-Capp House Located at 3140 Highland Drive April 30, 2021 Page 2 Attachment: A B. Letter from the Historic Preservation Commission, approved April 15, 2021 Memo to City Council dated Jan. 28, 2021 cc: Scott Chadwick, City Manager Celia Brewer, City Attorney Jeff Murphy, Community Development Director Curtis Jackson, Real Estate Manager HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 30 of 45 Sept. 12, 2022 ITEM 2 78 of 106 higher density development without a Council approved list of historic resources. Community support of historic preservation has been evidenced in the 2009 Envision Carlsbad papers, most recently in survey comments for the Housing Element requesting to "keep the historic character of the city ... ". To protect vulnerable structures throughout Carlsbad, the Historic Preservation Commission recommends that Council reaffirm the extant properties designated as landmarks, historic sites or points of interest between 1986 and 1990 as the city's current historic resources inventory then incentivize private owners to rehabilitate and preserve these significant properties by adopting the Mills Act. The result of these two actions by Council will provide the City the ability to implement several goals and policies aimed at preserving existing housing stock to avoid deterioration and maintain adequate housing opportunities. As mentioned, a Council approved Historic Resource Inventory is needed to adopt the Mills Act. Please consider approving the list of (13) structures to reinstate Carlsbad's Historic Resource Inventory when it is brought to Council. Also consider adopting the Mills Act as a tool for historic preservation restoration to maintain the historic site status of the Culver House. Thank you for considering these actions, Carlsbad Historic Preservation Commission SNS: jd Laurie Boone, Vice Chair Pearl Ly Robert Prosser cc: Scott Chadwick, City Manager Celia Brewer, City Attorney Geoff Patnoe, Assistant City Manager Gary Barberio, Deputy City Manager 1 Council Memo -Culver-Meyers-Cap House Located at 3140 Highland Drive, Jan. 28, 2021 11 Mills Act Historical Properties Information by the Assessor/ Recorder/ Clerk -County of San Diego 111 Highlighted text In the following documents reference City goals and policies including: Carlsbad General Plan, Chapter 7.2 Historic and Cultural Resources found in the Envision Carlsbad Working Paper 4 -History, the Arts and Cultural Resources (p. 7-11); The Village and Barrio Master Plan goals and policies in Chapter 1.5, Section 1.5.1 Land Use and Community Character, E. items 1, 2 & 3: Recognize and support the historical roots of the Village and Barrio (p. 1-13); Draft Local Coastal Program Land Use Plan Chapter 5, Section 5.5, Paleontological and Cultural Resources: Policies LCP-5 -P.19, 20 & 21 (p. 5-41). Library and Cultural Arts 1775 Dove Lane I Carlsbad, CA 92011 I 760-602-2011 I www.carlsbadlibrary.org HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 32 of 45 Sept. 12, 2022 ITEM 2 80 of 106 Council Memo -Culver-Myers-Capp House Located at 3140 Highland Drive Jan. 28, 2021 Page 2 Growth Management Program (GMP), Parks & Recreation Master Plan a_nd Strategic Action 'Plan There is currently a GMP parkland surplus of 14.2 acres In the northwest quadrant of the city and a deficit in park land in the northwest quadrant at build out is not projectE:d. Thus, the Culver House is not needed by the city to address the GMP Parks Performance Standard. Further, the acquisition, refurbishment, and on-going maintenance of the Culver House ls not currently included in the City Council approved Parks & Recreation Department Master Plan • I and Strategic Action Plan. Real Estate Strategic Plan On Oct. 17, 2017, the City Council approved the Real Estate Strategic Plan (Strategic Plan). The purpose of the Strategic Plan was to take a more strategic approach to how the city's major real estate assets are managed, both to maximize the return on the investment of public dollars and to leverage properties for the greatest public benefit, including addressing future city facility needs. The Strategic Plan Included recommendations for 21 city-owned real estate assets, of which the Culver House was not included. Therefore, the acquisition of the Culver House is .not currently 'included in the•City Council approved Real Estate Strategic Plan. Ne.xt steps There are currently no city plans associated with the acquisition of the Culver House. If the City Co~ncil would like staff to pursue the acquisition of the Culver House, the City Council would need to provide such direction to city staff at a future City Council Meeting. Attachment: Jan. 8, 2021 Email cc: Scott Chadwick, City Manager Cella Brewer, City Attorney l<yle Lancaster, Parks & Recreation Director Suzanne Smithson, Library & Cultural Arts Director HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 33 of 45 Sept. 12, 2022 ITEM 2 81 of 106 Attachment A From: paul <paulabo@gmail.com> Sent: Friday, January 8, 20211:54:29 PM To: rebecca holbert <rebecca.holbert@gmail.com>; Matthew Hall <Matt.Hall@carlsbadca.gov>; Council Internet Email <CityCou ncil@carlsbadca.gov>; Scott Chadwick <Scott.Chadwick@carlsbadca.gov> Subject: Historic Culver House To the Mayor, City Council, Historic Preservation Commission, and the City Man~ger of Carlsbad; We are writing to you regarding the historic Culver house of 1887 located at 3140 Highland Drive. Our gre~t uncle, Gerald Capp, purchased the house in 1969. Uncle Jerry, as he was known, recently passed away. He loved this house. He put twenty years of active work and love into it, including installing an electrical system, plumbing for indoor bathrooms to replace the outhouse, and doing the stained glass window work himself. The historic house sits on over an acre of land on· the corner of Highland Drive and Oak-Street that has Torrey pines, fruit trees and cacti that he planted. It's a sanctuary for many animals and birds. Mr. Capp bequeathed the house and property to eight members of the family and the reality is that the house will lil<ely need to be sold and the proceeds divided. His grand niece, Rebecca, grew up in this house. She knows how inuch it meant to him. We do not want this house to be torn down and the land developed. We are writing in the hopes that the city of Carlsbad might be able to purchase the house and land in order to preserve it as a historic landmark and park for the enjoyment of the people of Carlsbad. Uncle Jerry would have loved nothing morel The history of this home, as outlined in this article, is a bit of a legend. The home was built by Alonzo Jackson Culver who also built the Twin Inns. Leftover lumber from the Twin Inns was used to build this sister home. The legend goes that Culver smuggled Chinese immigrants who had worked on the railroads until he was caught in 1900 and sent to McNeil Island Penitentiary. Reportedly there are tunnels that run between the barn and the house. Although these tunnels have yet to be discovered there Is evldence of these people in the Mandarin inscriptions etched into the wa.1 ls of the cellar. This writing has yet to be translated. The home was then passed to the Myers family where local artist Gertrude Meyers spent her whole llfe. We've found pieces of her art and sketchings throughout the house. She died the same day the home went into escrow. You can see the location of the h·ouse on page 17 of the Carlsbad city Working Paper on History, the Arts, and Cultural Resources. The Carlsbad Historical Society's 30th Anniversary presentation on historic Carlsbad architecture also describes the Victorian Queen Anne style of the home on page 2. Attached to this email are some pictures of the interior of the home today, the house following the Capp renovation years, the current exterior, and the house as it was when purchased by Mr. Capp. Th is home Is a monument to the past. Uncle Jerry, an engineer, was amazed at the woodwork, all done without the use of electric tools. Many have given to this place and it's oµr hope that it lives on with the people of Carlsbad as a place of respite and wonder. A place to reflect on where we come from, where we are now, and where we want to go in the future. We would love to be able to speak at the January 11 tli meeting of the Historic Preservation Commission. Sincerely, Rebecca Holbert and Paul Abodeely !CAUTION: Do not opei1 attachments or click on lin ks unless you recognize the sender and know the content is saf~ Mike Strong, Assistant Community Development Director Community Development Department Oct. 19, 2021 Information on the Mills Act HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 35 of 45 Sept. 12, 2022 ITEM 2 83 of 106 {city of Carlsbad TODAY’S PRESENTATION •Mills Act background •Program requirements •Steps to develop the program ITEM 8: MILLS ACT INFOROMATION HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 36 of 45 Sept. 12, 2022 ITEM 2 84 of 106 C cityof Carlsbad PROPOSED ACTION Receive an informational presentation on the purpose of the Mills Act and provide direction to staff as appropriate. ITEM 8: MILLS ACT INFORMATION HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 37 of 45 Sept. 12, 2022 ITEM 2 85 of 106 C cityof Carlsbad MILLS ACT BACKGROUND •The Mills Act is legislation that creates a program for local governments (optional) •A tax incentive to encourage preservation -Contract is for ten years, with extensions •All authority is given to local governments ITEM 8: MILLS ACT INFORMATION HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 38 of 45 Sept. 12, 2022 ITEM 2 86 of 106 MILLS ACT PROGRAM potential ta x incentive for historic properties (city of Carlsbad HOW THE MILLS ACT PROGRAM WOULD WORK •Prospective applicants need to determine eligibility -Need to be listed as a resource or point of interest in a historic inventory •Applicant hires someone to perform pre-approval inspections •Once complete, application may be filed with the city ITEM 8: MILLS ACT INFORMATION HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 39 of 45 Sept. 12, 2022 ITEM 2 87 of 106 C cityof Carlsbad HOW THE MILLS ACT PROGRAM WORKS CONT’D •Contract specifies an approved improvement list -Federal and local standards apply •Contract timelines -The city is responsible for recording executed contracts -Needs to be recorded by December 31st ITEM 8: MILLS ACT INFORMATION HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 40 of 45 Sept. 12, 2022 ITEM 2 88 of 106 C cityof Carlsbad HOW THE MILLS ACT PROGRAM WORKS CONT’D •Once draft contract is ready, item is considered by HPC and CC •In exchange for tax relief, owner agrees to restore or maintain historic property •Tax rolls are reassessed for the next fiscal year •Owner agrees to periodic visits for inspection ITEM 8: MILLS ACT INFORMATION HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 41 of 45 Sept. 12, 2022 ITEM 2 89 of 106 C cityof Carlsbad POTENTIAL BENEFITS TO THE CITY •Incentive based approach to preservation •Helps promote preservation •Program is flexible –city is in control -city controls number of contracts -city can terminate contracts if desired •Most of the property tax loss is not from the city ITEM 8: MILLS ACT INFORMATION HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 42 of 45 Sept. 12, 2022 ITEM 2 90 of 106 {city of Carlsbad POTENTIAL BENEFITS TO THE PROPERTY OWNER •Creates an incentive to restore and maintain historic property -property tax savings of 40% and 60% •Tax benefit runs with title •Tax benefit is indefinite ITEM 8: MILLS ACT INFORMATION HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 43 of 45 Sept. 12, 2022 ITEM 2 91 of 106 MILLS ACT PROGRAM potential ta x incentive for historic properties (city of Carlsbad STEPS TO DEVELOP A CITY MILLS ACT PROGRAM •Award a professional services agreement •Develop the program and implementing documents •Conduct stakeholder outreach •Decision-making process ITEM 8: MILLS ACT INFORMATION HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 44 of 45 Sept. 12, 2022 ITEM 2 92 of 106 C cityof Carlsbad NEXT STEPS –WORK PROGRAM TIMELINE Oct. 2021 City Council authorization to work on a Mills Act Program Dec. 2021 Execute contract with consultant June –July 2022 HPC and PC review and recommendation Jan. 2022 –May 2022 Develop program and conduct outreach July or August 2022 City Council consideration ITEM 8: MILLS ACT INFORMAITON HPC Meeting - Sep. 12, 2022 Exhibit 4 Page 45 of 45 Sept. 12, 2022 ITEM 2 93 of 106 0 ('city of Carlsbad OPTIONAL REGULATORY AND NON-REGULATORY INCENTIVES At their meeting on Aug. 29, 2022, the Historic Preservation Commission may want to review and consider other options to incentivize the preservation, restoration and/or rehabilitation of historic resources. The following list provides some additional regulatory and non-regulatory incentives that the Commission may want to forward to the City Council to consider as a future implementation action item. The list is not exhaustive and the Commission may propose other options. 1.Expanded Use. 1.A designated historic resource that is listed in the Register with an active Mills Act Contract may operate a home occupation, subject to Section 21.10.040 of Title 21, excepting that such a bona fide home occupation shall allow on-premises employees and customers. No more than two non- residents who commute to the home for work may be continuously employed at any one time on the site, except where specifically permitted by law. No more than eight clients or customers shall be on the premises in any one day. Each and every one of the other standards and conditions listed in Section 21.10.040 must be observed at all times by the holder of a home occupation permit pursuant to this title. 2.A Designated Historic Resource home occupation shall continue to comply with the Secretary of the Interior’s Standards, all of the codes adopted by reference (including but not limited to the State Historical Building Code, Uniform Plumbing Code, Uniform Fire Code, etc.), and shall require ADA clearances as determined necessary by the Building Official. 3.Approval of an expanded home occupation permit under this section requires the application and approval of a Historical Use Permit, issued by the Commission. 2.Development Standard Flexibility. Designated historic resources listed in the Register are allowed to deviate from the following development standards, so long as the improvements are designed by an individual meeting the applicable Professional Qualification Standards, and the improvements are consistent with the Secretary of the Interior’s Standards, as well as the State Historical Building Code if applicable. Approval of a development standard waiver under this section requires the application and approval of a Historical Use Permit, issued administratively by the Planning Division. 1.Parking Standards. a.Residential historic resources may add additional floor area and bedrooms without providing additional parking provided that such additions do not exceed more than 50 percent of the original square footage of the structure and that at least two covered parking spaces are provided on-site. This incentive is not available when accessory dwelling units or junior accessory dwelling units are proposed. b.Non-residential historic resources with limited off-street parking may be granted a waiver to allow a reduction in off-street parking requirements to a maximum of 50 percent of the code requirement when supported by a parking study or other documentation to the satisfaction of HPC Meeting - Sep. 12, 2022 Exhibit 5 Page 1 of 2 Sept. 12, 2022 ITEM 2 94 of 106 the City Planner that demonstrates the use will not adversely affect parking availability to surrounding properties. c. Non-residential historic resources may add up to 15 percent of the existing floor area, not to exceed 500 square feet, without providing additional off-street parking and without bringing any existing nonconformity into compliance with the current zoning regulations, subject to review and approval by the Director. The addition must be removed if the Historic Resource is demolished or substantially replaced. d. The Director may establish a parking in-lieu fee for the adaptive re-use of non-residential Designated Historic Resources that have no or limited off-street parking. 2. Setbacks. a. Additions to historic resources shall be allowed to maintain legal non-conforming front, side and rear yard setbacks up to the line of existing encroachment, provided that all setbacks as required by the Uniform Building Code, unless modified by the State Historical Building Code, and the Fire Code are maintained. 3. Preservation Easements. Preservation easements on the facades of buildings designated as a Designated Historic Resource may be acquired by a nonprofit group through purchase, donation, or documentation pursuant to California Civil Code 815-816. 4. Official Recognition/Awards. The Commission may recognize those projects involving designated historic resources that have demonstrated a high level of commitment to maintaining or restoring the historic integrity of the resource. Some historic resources, including historical landmarks or gateway locations, may be identified on-site with an exterior marker displaying pertinent information about the resource. HPC Meeting - Sep. 12, 2022 Exhibit 5 Page 2 of 2 Sept. 12, 2022 ITEM 2 95 of 106 Community Development Department | 1635 Faraday Ave. | Carlsbad, CA 92008 | www.carlsbadca.gov Historic Preservation IB-161 The City of Carlsbad has a long and rich history with its origins dating back to the late 19th century as a “whistle stop” on the new California Railroad. The city’s namesake dates back to the 1880s when John Frazier, a former sailor, dug a well in the area and sold the water to train passengers. It was found that the fresh water was similar to that found in some of the most renowned spas in the world, so the town was named after the famed spa in the Bohemian town of Karlsbad. As the area grew over the decades, many of the historical structures and landmarks built in those earlier years still remain. The city recognizes the importance of restoring, preserving, and protecting these older buildings in order to help give people a sense of place and connection with the past. This Info-Bulletin provides an overview of the various incentive programs that are available to owners of these historical structures. Through these programs, we can help protect and maintain the city’s rich cultural history for generations to come. PROGRAM ELIGIBILITY The city’s historic resources code (§22.XX-§22.XX) establishes a voluntary program that incentivizes owners to preserve their historic structures by providing fiscal benefits and relief from certain development standards and taxes. To qualify, the owner of the historic resource must agree to participate in the program, and the historic resource being considered must meet certain requirements, as summarized below. Designated Historic Resources A potential historic resource can be more than just a building or structure; it may be a landmark, site, landscape features, or other object of scientific, aesthetic, educational, cultural, architectural, or historic significance. However, in order for a potential historic resource to be considered a designated “Historic Resource” that is subject to the benefits prescribed under the city’s historic resources code, the property owner must provide reason and justification supporting why the resource should be protected. Step one in this process is to determine whether the resource meets initial historic qualifications. The property owner must show that the potential historic resource is at least 50 years old and meets at least three of the following criteria: o It is associated with events that contribute to our history; Documents Referenced CA Mills Act - Contract; §50280 CA Mills Act - Tax Code; §439 Secretary of the Interior’s Standards; website State Historical Building Code; §18950 Informational Bulletin on CEQA; IB-150 Carlsbad Historic Resources Code; §22.01 Land Use Review Application; P-1 Mills Act Application Form; P-XX Mills Act Supplemental Checklist; P-XX HPC Meeting - Sep.12, 2022 Exhibit 6 Page 1 of 7 Sept. 12, 2022 ITEM 2 96 of 106 {city of Carlsbad Informational Bulletin ■ ■ Page 2 of 7 IB-161_Historic Preservation Incentives_DRAFT o It identifies with a person or person who significantly contributed to the culture and/or development of the city, state, or nation; o It represents an architectural type/period of known professionals who significantly influenced local, state, or national heritage; or o It yields information important to theprehistory or history of the area. Resources meeting this initial qualification step can then proceed to Step 2: Application Submittal. Under this step, the property owner must file a Carlsbad Historic Resource Registry (Registry) application, along with documentation showing how the resource meets the criteria selected in Step 1 above. Such supporting documentation may include site records and surveys or other similar documented evidence showing the historical importance of the property. Once filed and reviewed by the city’s 3rd party historical consultant, the application and findings are presented before the Historic Preservation Commission (Commission) for consideration. Following their review, the Commission makes a recommendation to the City Council whether the potential historic resource should be included in the Registry. Only those properties included in the Registry are eligible to participate in the historic preservation incentives discussed in this bulletin. Removal from the Register Because this is a voluntary program, property owners may request their property to be removed from the Registry. The Commission and City Council consider the de-designation application. Properties that benefited from any of the incentives listed below shall be forwarded to the Planning Commission for review and action, which may include rescinding any discretionary permits (e.g., allowance for bed and breakfast) and/or require any structures that benefited from reduced zoning standards (e.g., relaxed parking and setback requirements) to be modified to comply with current development standards. Additionally, once a resource is found to be historic pursuant to the review criteria and documentation referenced earlier in this informational bulletin, despite its removal from the Registry, any future modification to the historic resource will require review and mitigation pursuant to the California Environmental Quality Act (CEQA). Refer to the city’s Info-Bulletin (IB-150) for more information on the CEQA process. HPC Meeting - Sep. 12, 2022 Exhibit 6 Page 2 of 7 Sept. 12, 2022 ITEM 2 97 of 106 IB-161_Historic Preservation Incentives_DRAFT Page 3 of 7 HISTORIC PRESERVATION INCENTIVES The city offers a number of incentives designed to encourage property owners to enhance and preserve important historic resources. Bed & Breakfast Establishments Although most residential zones only allow residential use of property, the city code allows owners of historic resources to use the property in a non-traditional way. Specifically, city code (§21.04.046 & §21.42.140) allows historic resources in some multi-family and mixed-use zones to operate a business that accommodates overnightguests, commonly referred to as a bed & breakfast. The specific zones that offer this incentive are Multiple-Family Residential (R-3), Residential Density-Multiple (RD-M), Residential Professional (R- P), Residential Tourist (R-T) and Commercial Tourist (C-T). A discretionary permit (specifically, a Conditional Use Permit, or CUP) is required, which may require conditions be added by the city to ensure compatibility with surrounding properties. For more information on the city’s discretionary permit review process, please see the Community Development Department Permit & Service Delivery Guide. State Historical Building Code This alternative building code seeks to preserve historic buildings by providing equivalent life safety standards for repairs, alterations, and additions to historic buildings. The equivalent measures permitted by the code are more sensitive to the historic conditions of a building than standard building codes, allows flexibility (often resulting in cost savings) in meeting building code requirements for restored and rehabilitated structures. General information about the State Historical Building Code may be found at the California Office of Historic Preservation’s website. Federal Tax Credits The Federal Historic Preservation Tax Incentives program, and the 20% Rehabilitation Tax Credit, is available for buildings that are listed landmarks in the National Register of Historic Places, or that contribute to National Register Historic Districts or certain local historic districts. To qualify, properties must be income-producing (i.e., commercial, industrial, agricultural, or rental residential purposes, but not properties used exclusively as the owner’s private residence) and substantially rehabilitated according to the Secretary of the Interior’s Standards for Rehabilitation. The historic building, the rehabilitation project plans, and the completed project must all be certified by the Secretary of the Interior. The program is jointly administered by the National Park Service and the Internal Revenue Service in partnership with the State Historic Preservation Office. More information about the Federal 20% Rehabilitation Tax Credit may be found at the California Office of Historic Preservation’s website. THE MILLS ACT The Mills Act is often recognized by the state as probably the single most important economic incentive program offered to private property owners for the restoration and preservation of historic buildings, which is why this section provides more attention to this city incentive. Mills Act Origins In 1971, the City of Coronado was pursuing a rezone of the Hotel Del Coronado, which would have had significant property tax implications if approved. In response, State Senator James Mills from San Diego HPC Meeting - Sep. 12, 2022 Exhibit 6 Page 3 of 7 Sept. 12, 2022 ITEM 2 98 of 106 Page 4 of 7 IB-161_Historic Preservation Incentives_DRAFT introduced in 1976 the Mills Act legislation, which established an economic incentive program that allows local jurisdictions to enter into contracts with property owners who agree to rehabilitate, restore, and maintain their historic property in exchange for a reduction in local property taxes. Since its adoption, local Mills Act programs have helped preserve thousands of historic structures throughout California. The program’s regulatory authority is described under state government code (§50280-50290) as well as the revenue and taxation code (§439-439.4). Carlsbad Mills Act Program – Highlights In 2022, the city established a voluntary Mills Act program (§22.XX). Application processing steps for a Mills Act contract are provided later in this info- bulletin, but some important program highlights are provided below. •According to the County Tax Assessor’s website, properties under a Mills Act contract can experience a reduction in property taxes for most owners of between 40% and 60% compared to what the property tax would be without the Mills Act. •Contract term is for 10 years that automatically renews each year. Financial penalties are imposed for early termination, including a state- mandated penalty fee of 12.5% of the full market value at the time of cancellation. •Only privately-owned properties that meet the definition of a “Qualified Historical Property” (§22.XX) are eligible to apply for a Mills Act contract. •Following application submittal, the property will be assessed by the city to determine compliance with the Secretary of the Interior’s Standards for the Treatment of Historic Properties, in particular the Standards and Guidelines for Preservation, Restoration & Rehabilitation. •The contract includes a work plan describing the improvements or modifications required, if any, for preserving, restoring, and rehabilitating the historic property during the term of the contract. Failure to timely complete the work plan may result in cancellation of the contract. •Improvements to the historic property under the work plan must follow the aforementioned Secretary of the Interior’s Standards. •While under contact, the property owner may build an addition to their property, so long as it complies with the Secretary of the Interior’s Standards for the Treatment of Historic Properties with Guidelines for Rehabilitation. It should be noted that new construction receives less property tax reduction. Please contact the County Assessor's office for information. •The deadline for owners to apply for a Contract is June 1. This deadline has been set to ensure that contract applications can be approved, executed, and recorded before the County Tax Assessor’s lien date (December 31). •State law requires the city to inspect the property before the contract is approved and recorded, and every five years afterward to ensure contract requirements are being met. HPC Meeting - Sep. 12, 2022 Exhibit 6 Page 4 of 7 Sept. 12, 2022 ITEM 2 99 of 106 - IB-161_Historic Preservation Incentives_DRAFT Page 5 of 7 Pre-Application Meeting Owners interested pursuing a Mills Act contract must first contact the Planning Division to schedule a meeting to go over program and application requirements. This mandatory meeting that must occur before a contract application can be submitted. Completed Mills At contract are due to the County Tax Assessor’s Office by November in order for the property tax reductions to take place the next tax year. As such, it is recommended that the pre-application meeting and application submittal occur within January thru March of each year. Refer to the calendar located on next page for a listing of critical deliverable dates. Please note that the City of Carlsbad does not have any role in the eventual valuation of the property under a Mills Act contract. The County Tax Assessor’s office is solely responsible for valuations to determine property tax bills. Property owners are encouraged to contact the County Tax Assessor’s office regarding potential savings under the Mills Act as well as their tax professional prior to filing their application with city. Application Submittal The following is a summary of the submittal requirements required to request a Mills Act contract. All required forms and supplemental requirements need to be submitted by the June 1 deadline before the city will begin processing the Mills Act contract application. Failure to supply timely sufficient information during the processing of the Mills Act application is reasonable grounds for processing delays or the withdrawal or disapproval of the application. •Land Use Review Application (P-1) •Mills Act Contract Application (P-XX) •Mills Act Supplemental Checklist (P-XX) •Verification of historical status from the National Register, California Register or city Register. If not available, a historical reportprepared by a qualified professional for a concurrent city historic designation request. A qualified professional is someone who meets one or more of the applicable “Secretary of the Interior’s Historic Preservation ProfessionalQualification Standards” to the satisfaction of the City Planner. •A proposed 10-year work plan report, which details the preservation, maintenance, repair, restoration, and rehabilitation improvements the owner anticipates completing within the first 10 years of the contract. The work plan shall either be prepared by, or submitted with a statement of concurrence provided by, a qualified professional as referenced in the preceding bullet. •Copy of Title Report, which must be current within the six months prior to application submittal. If the property has changed ownership within those six months, it must be supplemented by a copy of the current deed. Please note that historical reports and work plans can take time to prepare. It is strongly suggested that owners begin the process of hiring these professionals during the year before you intend to apply for the Mills Act. HPC Meeting - Sep. 12, 2022 Exhibit 6 Page 5 of 7 Sept. 12, 2022 ITEM 2 100 of 106 -- Page 6 of 7 IB-161_Historic Preservation Incentives_DRAFT Application Review Process The following are processing steps the city will likely take during its review of a Mills Act application and supporting documentation. •During review, the city may approximate the amount of reduced property taxes. This is only used to estimate the potential impact on city revenues. Actual tax savings will be determined by the County Tax Assessor. •A site inspection will be conducted to assess the physical condition and historic condition, known as “integrity.” •Once the deemed complete, the application will be scheduled for review by the Commission (no later than September) followed by a final decision by the City Council (no later than November). •Once City Council approves the contract, the city will execute and forward it to the county for recordation within 20 days after approval. Recordation must occur by December 31 in order for the contract to take effect in the next full property tax year. •Once recorded, the city will notify the property owner, the County Tax Assessor, and the State Office of Historic Preservation. •If all deadlines are met, the property owner will see any property tax reduction in the next full property tax year. Questions about the property tax bill and valuation should be directed to the County Tax Assessor’s office at (619) 531-5002. Critical Dates Calendar Below is an overview of the critical dates that must be met in order to timely process a Mills Act contract application. Contract Monitoring After the contract is recorded, state law requires the city to monitor the owner’s compliance with the contract via inspections. The owner will need to provide a signed affidavit to the city prior to each inspection stating the owner is complying with the terms of the contract and written consent authorizing city staff or designated third party to enter the premises. Inspections occur every five years during the life of the contract. The purpose is to verify that the property owner is maintaining their building per historic standards as stated in the contract and is making progress on the contract’s work plan in a timely manner. HPC Meeting - Sep. 12, 2022 Exhibit 6 Page 6 of 7 Sept. 12, 2022 ITEM 2 101 of 106 October Latest date pre-application request accepted by city Latest date Mi ll s Act Contract application accepted by city Latest date Mi ll s Act Contract application deemed complete by city Historic Preservation Comm. makes a recommendation on Mills Act Contract City Council decides on the Mills Act Contract Mills Act Contract recorded & Assessor's Office notified for tax roll change IB-161_Historic Preservation Incentives_DRAFT Page 7 of 7 Contract Nonrenewal or Cancellation Every year on the anniversary date, a Contract is automatically renewed for another year. This means the Contract has a rolling, or perpetual, 10-year term. However, state law provides two ways to end a Mills Act Contract term. •The first way is that either party to the contract (city or owner) may file a “notice of nonrenewal,” which is recorded with the county and signals the tax assessor to put into effect another way to value the property that gradually increases the property valuation while the years left decrease for the remainder of the contract. •The second way is for a local government to cancel the contract. Cancellation could be as a result of an owner’s breach of the contract terms such as not maintaining and repairing the property or making inappropriate alterations to the property that do not follow required guidelines, Such a cancellation would follow due process through a public hearing, but the city would typically pursue administrative and legal remedies to try to obtain the owner’s compliance before cancelling the contract. Cancellation could also be the result of an owner’s request to cancel the contract, typically for reasons of site development. Unlike nonrenewal, cancellation is immediate and state law requires the owner to pay a penalty fee of 12.5% of the property’s full market value at the time of cancellation YOUR OPTIONS FOR SERVICE To schedule an appointment or to learn more about the Mills Act Contract process, please contact the Planning Division at (442) 339-2610 or via email at Planning@carlsbadca.gov. HPC Meeting - Sep. 12, 2022 Exhibit 6 Page 7 of 7 Sept. 12, 2022 ITEM 2 102 of 106 Revised 04/19 NOTICE OF EXEMPTION  To: Assessor/Recorder/County Clerk From: CITY OF CARLSBAD  Attn:  Fish and Wildlife Notices Planning Division  1600 Pacific Highway, Suite 260 1635 Faraday Avenue  San Diego CA 92101 Carlsbad, CA 92008  MS:  A‐33 (442)339‐2600 Subject: Filing of this Notice of Exemption is in compliance with Section 21152b of the Public Resources  Code (California Environmental Quality Act).  Project Number and Title: MCA 2022‐0003 Project Location ‐ Specific: Citywide Project Location ‐ City:  Carlsbad Project Location ‐ County:  San Diego Description of Project: Amendment to Title 22 (Historic Preservation Ordinance) to adopt a Mills Act  Program and to address longstanding inconsistencies in the Historic Preservation Ordinance.   Name of Public Agency Approving Project: City of Carlsbad Name of Person or Agency Carrying Out Project: City of Carlsbad Name of Applicant: Mike Strong, Assistant Community Development Director, acting on behalf of the City  of Carlsbad  Applicant’s Address: 1635 Faraday Avenue, Carlsbad CA 92008 Applicant’s Telephone Number: 442‐339‐2607 Name of Applicant/Identity of person undertaking the project (if different from the applicant above):  N/A  Exempt Status: (Check One)  Ministerial (Section 21080(b)(1); 15268);  Declared Emergency (Section 21080(b)(3); 15269(a));  Emergency Project (Section 21080(b)(4); 15269 (b)(c));  Categorical Exemption ‐ State type and section number: Class 8 (Actions by Agencies for Protection  of the Environment) and 31 (Historical Resource Restoration) Statutory Exemptions ‐ State code number: Common Sense Exemption (Section 15061(b)(3))  Reasons why project is exempt: See attached Lead Agency Contact Person: Mike Strong  Telephone: 442‐339‐2607 August 19, 2022  Eric Lardy, City Planner Date  HPC Meeting - Sep. 12, 2022 Exhibit 7 Page 1 of 4 Sept. 12, 2022 ITEM 2 103 of 106 Revised 04/19  Date received for filing at OPR:          Class 8 and Class 31 Exemptions ‐ substantiation:    The ordinance will require a discretionary permit and CEQA review, was analyzed in accordance with  CEQA. Categorical Exemptions Class 8 and 31 of the State CEQA Guidelines are appropriate and that the  exceptions to these two categorical exemptions do not apply to this project. Clarifying and simplifying  local historic regulations in conjunction with establishing incentives to property owners who voluntarily  wish to preserve any buildings, structures, sites, artifacts, landscaping, or portions thereof would better  regulate construction activities to ensure the protection of a city historic resource. In fact, the purpose of  the proposed amendments to Title 22 and adoption of a Mills Act Program is to prevent significant  environmental impacts to a historic and cultural resource identified in the city. Without regulation of  construction activities, the historic integrity of buildings, structures, sites, artifacts, landscaping, or  portions thereof could be lost through incompatible alterations and new construction and the demolition  of irreplaceable historic structures. The standards to which would apply to prospective applications for  constructive work are based upon the Secretary of the Interior’s Standards and provide guidance on the  historically appropriate construction activities in order to ensure the continued preservation of buildings,  structures, sites, artifacts, landscaping, or portions thereof.     The use of Categorical Exemption Class 8 from the State CEQA Guidelines is consistent with other  California jurisdictions, which finds that the regulations placed upon historic districts is necessary for the  protection of the environment and will make sure that maintenance, repair, restoration, and  rehabilitation does not degrade the historic resource. Section 15308, Class 8 "consists of actions taken by  regulatory agencies, as authorized by state or local ordinance, to assure the maintenance, restoration,  enhancement, or protection of the environment where the regulatory process involves procedures for  protection of the environment.”     As to whether the activity “is capable of causing a direct or reasonably foreseeable indirect change in the  environment,” individual construction projects that are subject to the updated historic preservation  standards would be required to go through project specific environmental review if required under CEQA.  Thus, clarifying and simplifying local historic regulations in conjunction with establishing incentives to  property owners do not supersede the California Environmental Quality Act, or other Carlsbad Municipal  Code requirements. However, the indirect changes have been contemplated.  Furthermore, some  individual construction projects may be considered ministerially, without the benefit of additional CEQA  review.  In those instances, the use of Categorical Exemption Class 31 from the State CEQA Guidelines is  consistent with other California jurisdictions, which is applicable when rehabilitation is consistent with  the Secretary of the Interior Standards. Categorical Exemption, Article 19, Section 15331, Class 31  "consists of projects limited to maintenance, repair, stabilization, rehabilitation, restoration, preservation,  or reconstruction of historical resources in a manner consistent with the Secretary of the Interior’s  Standards for the Treatment of Historic Buildings (1995), Weeks and Grimmer.” Under the  implementation of the ordinance, construction projects would be reviewed for conformity with Title 22  code standards, which implements the Secretary of the Interior’s Standards for Rehabilitation. The project  proponent must demonstrate use of qualified personnel (e.g. a preservation architect), a  process/procedure (e.g. use of federal historic rehabilitation tax credits), or other means to ensure  appropriate interpretation and application of the Standards. The proponent must understand that work  undertaken may be halted, and the exemption revoked, if the work is not being performed consistent  with the Standards as originally defined.        HPC Meeting - Sep. 12, 2022 Exhibit 7 Page 2 of 4 Sept. 12, 2022 ITEM 2 104 of 106 Revised 04/19      Exceptions to the Use of Categorical Exemptions     Planning staff evaluated all the potential exceptions to the use of Categorical Exemptions for the proposed  project (in accordance with CEQA Guidelines Section 15300.2) and determined that none of these  exceptions apply as explained below:      Cumulative Impact ‐ “All exemptions for these classes are inapplicable when the cumulative  impact of successive projects of the same type in the same place, over time is significant.” The  exception applies when, although a particular project may not have a significant impact, the  impact of successive projects, of the same type, in the same place, over time is significant.  Adoption of the proposed ordinance would not alter the environment but will address  development to ensure that future projects and development are compatible with the Secretary  of Interior Standards; therefore, protecting the historic resources. Consequently, there is no  cumulative impact on the environment from previous ordinance adoptions, the current ordinance  adoption, or future ordinance adoptions.    Significant Effect ‐ “A categorical exemption shall not be used for any activity where there is a  reasonable possibility that the activity will have a significant effect on the environment due to  unusual circumstances. Examples include projects, which may affect scenic or historical resources.  There are no unusual circumstances that would have a significant impact on the environment due  to the adoption of the ordinance. Therefore, there is no possibility of significant effects on the  environment. The proposed ordinance would provide incentives and/or otherwise protect the  unique character of the existing environment, which retains much of its original design, street grid  pattern, and building setbacks of prior development.   Scenic Highway ‐ “A categorical exemption shall not be used for a project which may result in  damage to scenic resources, including but not limited to, trees, historic buildings, rock  outcroppings, or similar resources, within a highway officially designated as a state scenic  highway. This does not apply to improvements which are required as mitigation by an adopted  negative declaration or certified EIR.” This exception applies when a project may result in damage  to scenic resources within a duly designated scenic highway. The proposed ordinance does not  contain any state or city designated scenic highway or parkway, nor does it make reference to  such. Thus, the proposed ordinance would not negatively impact scenic resources within a duly  designated scenic highway. Rather, the proposed ordinance would provide incentives and/or  otherwise protect the unique character of the existing environment, which retains much of its  original design, street grid pattern, and building setbacks of prior development.    Hazardous Waste Site ‐ “A categorical exemption shall not be used for a project located on a site  which is included on any list compiled pursuant to Section 65962.5 of the Government Code. This  exception applies when a project is located on a site or facility listed pursuant to California  Government Code 65962.5.    Historical Resources ‐ “A categorical exemption shall not be used for a project which may cause a  substantial adverse change in the significance of a historical resource.” This exception applies  when a project may cause a substantial adverse change in the significance of a historical resource.  The proposed project would not cause an adverse change in the significance of a historical  resource as defined in State CEQA Guidelines 15064.5; rather, the proposed project would protect  identified historic structures through ordinance adoption. The proposed ordinance would ensure  that exterior work on historical are consistent with the Secretary of the Interior’s Standards as  clarified and elaborated in the proposed ordinance and would require an additional level of review  (prior to obtaining other entitlements and building permits), so that new additions or alterations  are conducted in a historically appropriate manner, preserving the historic integrity of the  property and its environment.   HPC Meeting - Sep. 12, 2022 Exhibit 7 Page 3 of 4 Sept. 12, 2022 ITEM 2 105 of 106 Revised 04/19  Planning staff also evaluated the potential exceptions to the use of Categorical Exemptions as defined by  Section 19.04.070 of the Carlsbad Municipal Code and determined that none of these exceptions apply as  explained below:      Grading and clearing activities affecting sensitive plant or animal habitats – A categorical  exemption shall apply when there is earth moving activities “which disturb, fragment or remove  such areas as defined by either the California Endangered Species Act (Fish and Game  Code Sections 2050 et seq.), or the Federal Endangered Species Act (16 U.S.C. Section 15131 et  seq.); sensitive, rare, candidate species of special concern; endangered or threatened biological  species or their habitat (specifically including sage scrub habitat for the California Gnatcatcher);  or archaeological or cultural resources from either historic or prehistoric periods.” Adoption of  the proposed ordinance would not alter the environment but will address development to ensure  that future projects and development are compatible with the Secretary of Interior Standards;  therefore, protecting the historic resources. The ordinance neither changes the grading standards  nor policies to which apply to this exception to the exemption. The proposed ordinance would  ensure that exterior work on historical are consistent with the Secretary of the Interior’s  Standards as clarified and elaborated in the proposed ordinance and would require an additional  level of review (prior to obtaining other entitlements and building permits), so that new additions  or alterations are conducted in a historically appropriate manner, preserving the historic integrity  of the property and its environment.  Impacts to biological species or their habitats or archeological or cultural resources – “Parcel  maps, plot plans and all discretionary development projects otherwise exempt but which affect  sensitive, threatened or endangered biological species or their habitat (as defined above),  archaeological or cultural resources from either historic or prehistoric periods, wetlands, stream  courses designated on U.S. Geological Survey maps, hazardous materials, unstable soils or other  factors requiring special review, on all or a portion of the site.” This exception applies when a  project may result in damage to biological species or their habitats or archeological or cultural  resources. The proposed ordinance does not contain any biological species or their habitats or  archeological or cultural resources, nor does it make reference to such. Rather, the proposed  ordinance would provide incentives and/or otherwise protect the unique character of the existing  environment, which functions as a preservation tool and retains much of its original design, street  grid pattern, and building setbacks of prior development.   Common Sense Exemption ‐ substantiation:    In the alternative, Planning staff has reviewed the proposed ordinance and has identified that it equally  qualifies for an exemption from CEQA pursuant to Section 15061(b)(3) (Common Sense or General Rule  Exemption) of the State CEQA Guidelines. The activity is covered by the Common Sense Exemption that  CEQA applies only to projects which have the potential for causing a significant effect on the environment.  When it can be seen with certainty that there is no possibility that the activity in question may have a  significant effect on the environment, the activity is not subject to CEQA. No special circumstances exist  that the proposed ordinance would create a significant adverse effect on the environment (i.e., no  sensitive species or habitats, no hazardous sites, no scenic highways, no historic resources, etc.).  HPC Meeting - Sep. 12, 2022 Exhibit 7 Page 4 of 4 Sept. 12, 2022 ITEM 2 106 of 106 MUNICIPAL CODE AMENDMENTS AND MILLS ACT PROGRAMMCA 2022-0003 Carlsbad Historic Preservation Commission September 12, 2022 PRESENTATION OVERVIEW •Overview of proposed amendments •Amend chapter 2.42 •Amend chapters 22.02, 22.06, and 22.08 •Add new chapter 22.10 •Commission role is to provide recommendation to Council PROGRESS TO DATE •City Council directed staff to prepare a Mills Act program in October 2021 •Consultant retained November 2021 •Draft program presented to Commission at work session January 2022 for input •Program revised in response and combined into ordinance with other Title 22 updates PROPOSAL -AMEND CMC 2.42 •Chapter covers the duties of the Commission •Proposed changes are technical and to better reflect: •advising role (clarification) •charges (clarification) and new role regarding incentives PROPOSAL -AMEND CMC 22.02 •Chapter 22.02 covers the general regulations and administration of historic preservation •Proposed changes are technical and to better reflect: •actual intent of regulations •definitions (new definitions added) PROPOSAL -AMEND CMC 22.06 •Chapter 22.06 covers process to designate historic resources, landmarks and districts •Proposed changes reflect •prior direction regarding survey and voluntary process •clarify criteria for district formation •de-designation procedures PROPOSAL -AMEND CMC 22.08 •Chapter 22.08 covers process permitting process •Proposed changes reflect •Simplified process for properties under contract and consistent with standards •Penalties and enforcement PROPOSAL -ADD CMC 22.10 •Chapter 22.10 is new and proposed to cover incentives and benefits •Mills Act (presentation overview provided by Teri Delcamp) •Other incentives and concessions WHAT IS THE MILLS ACT? •State law that enables local property tax reduction incentive •Encourages preservation and restoration of privately-owned historic buildings •Long-term preservation benefit •Property tax valuations completed by County Tax Assessor WHAT THE LAW DOES •Allows cities to put in place a Mills Act program for designated historic properties •Has mandatory requirements •Allows cities to tailor program •Privately-owned historic buildings are eligible BENEFITS TO PROPERTY OWNERS •Most Mills Act properties receive property tax reduction between 40%-60%* •Property tax savings help offset maintenance and restoration costs •Especially beneficial to recent buyers/owners who have completed major restoration *Actual savings are very specific to each property, based on a number of factors and variables; this range is likely for some but is intended for illustrative purposes only PROGRAM DETAILS •Owners of eligible properties voluntarily apply •Mandatory pre-application meeting with staff before applying •Professional restoration work plan at owner’s expense •Applications due by June 1 each year PROGRAM DETAILS, CONT’D •Planning Division processes applications •Staff or third party review process/inspections •Owner completes 10-year work plan of preservation/restoration improvements •Adopt application/inspection fees in future •City provide program/application guidance PROPERTY OWNER RESPONSIBILITIES •Maintain property per Secretary of the Interior’s Standards, State Historical Building Code •Allow city to inspect exterior/interior every five years •Restore or rehabilitate property if required by contract’s 10-year work plan CONTRACT •Automatic annual renewals = perpetual 10-year term •Contract covers whole property: -Building exterior/interior -Systems -Grounds/landscaping CONTRACT, CONT’D •City inspects before approval/every five years •Renews annually, but either party can file notice to allow current 10-year term to expire •Failure to comply with contract is a breach, may cause cancellation •Owner pays cancellation penalty -12.5% of fair market value at time of cancellation VALUATION •Establishes 3rd method of valuation for Assessor to use -income approach to value •Assessor still calculates factored base year value and fair market value, compares all 3 •The law requires the Assessed Value to be the lowest of the 3 •Reflected on following full tax year’s bill VALUATION, CONT’D •Only the Assessor can calculate actual savings •Assessor determines fair rent/gross income, vacancy rate, operating costs, amortization rate; Board of Equalization sets the interest rate •Formula differs for owner-occupied SFR vs. all other properties INCOME APPROACH EXAMPLE: INCOME APPROACH TO VALUE Annual potential! gross income {$5,000/month) Less 20%. annuall expenses/vaicancy Net operating income {NOi} Ca pita llization Rate: Interest component ,(2022): Risk comiponent ,(owner-occupied SFR): Property tax component (approx): Amortization com1ponent ,(hypothetical!): 2.75% 4.00% 1.10% 0.50% 8.35% 11 Restricted Value" is NOi + Cap Rate, or $48,000 + 8.35%: $60,000 (12,000) $48,000 $574,850 IMPACT ON CITY REVENUE •City is allocated a percentage of overall property taxes (PT) collected, assume 10% •Example property with tax bill of $16,000 •$16,000 x 10% = $1,600 city receives now •40% savings: $9,600 x 10% = $960 city would receive •Loss of about $640 of the total $77 million PT the city anticipates receiving this fiscal year APPLICATION REQUIREMENTS •Application forms, site plan, photos, title report •Historic status verification (or concurrent designation application) •Professional work plan (owner’s expense) of improvements for first 10 years •Professional historical report (owner’s expense) for concurrent designation request MILLS ACT APPLICATION PROCESS •Applications submitted to Planning •City staff/third party inspects property •Historic Preservation Commission recommendation typically in September •Owners notarize contract •City Council final action typically in November CONTRACT GOES INTO EFFECT •Before December 31, City records approved/ executed contract •City notifies County Tax Assessor, owner and State Office of Historic Preservation •Assessor takes contract into account for next year’s property tax bill •Owner sees result of Mills Act in next tax bill OTHER PRESERVATION INCENTIVES •Staff report attachment (no. 5) provides other potential benefits and incentives •Commission can review and consider other options •Recommendation(s) to Council to direct further study •User fees to process applications RECOMMENDATION •That the Historic Preservation Commission recommend that the City Council adopt the proposed ordinance •Provide feedback on other potential incentives