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HomeMy WebLinkAbout2023-03-13; Historic Preservation Commission; ; City of Carlsbad Mills Act Program Update and Outreach Plan Meeting Date: March 13, 2023 To: Historic Preservation Commission From: Mike Strong, Assistant Director of Community Development Staff Contact: Mike Strong, Assistant Director of Community Development Mike.strong@carlsbadca.gov, 442-339-2721 Subject: City of Carlsbad Mills Act Program Update and Outreach Plan Recommended Action Provide a status update on the adoption of Historic Preservation Permit fees and feedback on property owner outreach. Executive Summary On Nov. 3, 2022, the City Council adopted Ordinance No. CS-438, which included various amendments to the city’s historical regulations (Title 22), including the adoption of a local Mills Act program. On Feb. 14, 2023, the City Council adopted new fees for the recovery of city costs for processing of applications for inclusion into the Carlsbad Historic Resource Registry and participation in the city’s Mills Act Program. Discussion Ordinance No. CS-438 revised the criteria for designating historic resources, historic landmarks and historic districts and established a local Mills Act program, which would offer property tax relief to owners of qualified historic properties who actively participate in the restoration and maintenance of their historic properties. Property owners interested pursuing a Mills Act contract must first submit an application to the Planning Division. All required forms and supplemental requirements need to be submitted by the June 1 deadline before the city will begin processing Mills Act contract applications. To support implementation of the new planning services, the City Council adopted new fees that recover part of, but not all, the city’s costs to process applications. In developing a recommended fee for historic preservation applications, city staff calculated both the direct and indirect costs such as operating expenses, i.e., the staff time spent on the activity, the cost of time for the employee, and an overhead factor; as well as charges for use of capital depreciation and debt service of city facilitates and equipment. This calculation represents the actual total cost of processing historic preservation permit applications, which is necessary to ensure that any adopted fees do not exceed the costs of the service being provided. HISTORIC PRESERVATION COMMISSION March 13, 2023 Item #1 Page 1 of 2 Staff Report Application type Full cost amount Adopted fee amount* Percent subsidized Applicant pays Local register application $5,420 $1,788 67% 33% Mills Act application $3,834 $3,834 0% 100% Concurrent applications (Registry + Mills Act) $6,654 $4,392 33% 67% Third-party technical report review – Actual cost – 100% Monitoring $705 $0 100% 0% * Subject to annual inflation adjustment based on the Consumer Price Index in future fiscal years. With the fees and application forms ready, the city is ready to begin processing applications. To help raise awareness about the availability of the Mills Act Program in the City of Carlsbad and encourage eligible property owners interested in historic preservation of their properties to participate the city has engaged in the following: Ongoing outreach Provide information about the creation, benefits and eligibility of a local Mills Act Program for community awareness. Utilize a range of city channels: • Direct mail (to date 1,300 mailers have been sent) • Traditional media • Social media • City website home page • Targeted emails (Carlsbad Village Association board, BIA, North County Economic Development Council, Carlsbad Chamber of Commerce, Carlsbad Historical Society, and North County Association of Realtors). At its March 13, 2023 meeting, the Historic Preservation Commission is being asked to discuss outreach strategies and provide feedback on other ways to advertise the Mills Act program. Fiscal Analysis There is no direct fiscal impact associated with receiving this information report. Environmental Evaluation (CEQA) Pursuant to Public Resources Code Section 21065, this action does not constitute a “project” within the meaning of the California Environmental Quality Act (CEQA) in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. 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 None. March 13, 2023 Item #1 Page 2 of 2