CC Resolution 12756RESOLUTION NO. 12756
BEING A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CAMPBELL (1) EXTENDING THE MILLS ACT HISTORIC
PROPERTY INCENTIVE PROGRAM TO ELEVEN PROPERTIES;
(2) APPROVING MILLS ACT CONTRACT APPLICATIONS FOR
PROPERTIES LOCATED AT 73 S. 1ST STREET, 204 ALICE
AVENUE, AND 81 ALICE AVENUE, COMMONLY KNOWN AS THE
LAURA CAMPBELL SWOPE HOUSE, THE WILLIAM & DOROTHY
(MILLS) HARRISON HOUSE, AND THE DOC AND CORA BEAL
HOUSE, RESPECTIVELY; (3) DIRECTING STAFF TO CONCLUDE
AN AUDIT OF THE EXISTING MILLS ACT CONTRACTS; AND (4)
SUSPENDING THE PROCESSING OF ANY NEW MILLS ACT
CONTRACT APPLICATIONS UNTIL FURTHER CITY COUNCIL
AUTHORIZATION.
After notification and public hearing, as specified by law and after presentation by the
Community Development Director, proponents and opponents, the hearing was closed.
The City Council finds as follows with regards to file numbers PLN-2021-26/49/72:
Environmental Finding
1. Approval of a Mills Act contract is categorically exempt under Section 15331, Class 31
of the CEQA Guidelines, pertaining to projects involving the maintenance,
rehabilitation, restoration, preservation, or reconstruction of historical resources.
Evidentiary Findings
1. California Government Code, Section 50280 et seq., and California Revenue and
Taxation Code, Section 439 et seq., authorize the City of Campbell to enter into
contract with owner(s) of qualified historical property; defined as property that is (a)
located entirely within the City of Campbell; (b) is privately owned; (c) is taxed as
residential property; and (e) is individually listed on the City of Campbell's adopted
Historic Resource Inventory List, to restrict the use of the property in a manner which
the City deems reasonable to carry out the purposes of the relevant state regulations.
2. The Mills Act program allows private property owners of qualified historic property to
receive property tax relief in exchange for agreeing to preserve, rehabilitate, and
maintain their historic properties for a specific period.
3. On October 4, 2011, the City Council adopted Resolution No. 11334, initiating a three-
year pilot Mills Act Incentive Program, allowing up to five (5) Mills Act contracts to
assist property owners of locally -designated historic residences to benefit from property
tax savings in exchange for reinvestment towards the structures' preservation.
4. On February 3, 2015, the City Council adopted Resolution No. 11776, approving an
extension of the Mills Act Incentive Program, allowing a combined maximum of ten (10)
Mills Act contracts over the course of the program.
City Council Resolution 12756
Approval of a Mills Act Contracts
Page 2
5. To date, the City Council has approved eight Mills Act contracts, leaving two available
under the current Mills Act Incentive Program.
6. In consideration of the three Mills Act applications under review, the City Council
determined that the public interest is served by expanding the Mills Act Historic
Property Tax Incentive Program to eleven (11) properties.
7. The City's Mills Act Historic Property Tax Incentive Program application package
requires submittal of three supplemental forms including:
• Priority Consideration Worksheet (Supplemental Form #1) that asks the applicant to
explain how their application will satisfy the established selection criteria;
• Proposed Schedule and Plan (Supplemental Form #2) that asks the applicant to
identify proposed work, type of work (e.g., maintenance, remodel, etc.) the year(s)
in which the work will commence and be completed, and estimated cost; and
• Property Tax Adjustment Worksheet (Supplemental Form #3) that asks the
applicant to complete a property tax savings estimate.
8. The City's Mills Act Historic Property Tax Incentive Program application package
provides the following selection criteria:
• Criteria No. 1: A higher ranking will be given to those applications that demonstrate
that entering into a Mills Act Historic Property Contract will result in the greatest
number or value of improvements to the historic property thereby resulting in the
greatest benefit to the public.
• Criteria No. 2: A higher ranking will be given to those applications that demonstrate
that entering into a Mills Act Historic Property Contract will substantially reduce the
threat to the historic property of demolition, deterioration, abandonment, and/or
general neglect.
• Criteria No. 3: A higher ranking will be given to those applications that demonstrate,
in cases of economic hardship, that entering into a Mills Act Historic Property
Contract will result in the preservation and maintenance of a historic property.
• Criteria No. 4: A higher ranking will be given to those applications that demonstrate
the highest percentage of tax savings being used to finance the property
maintenance and improvements.
9. The Historic Preservation Board and City Council considered three Mills Act contract
applications for properties located at 73 S. 1st Street, 204 Alice Avenue, and 81 Alice
Avenue, commonly known as the Laura Campbell Swope House, the William &
Dorothy (Mills) Harrison House, and the Doc and Cora Beal House, respectively.
10. To facilitate the ranking and recommendation of the four submitted applications, the
Historic Preservation Board and City Council applied a weighted point system to the
selection criteria provided in the Mills Act Historic Property Tax Incentive Program
City Council Resolution 12756 Page 3
Approval of a Mills Act Contracts
application package, such that up to five points (0-5) could be granted for Criteria No.
1, No. 2, and No. 4 each, and up to one point for Criteria No. 5.
11. The Historic Preservation Board and City Council chose to evaluate proposals based
on proposed work rather than work already performed in that it is reasonable for the
remaining contracts to be restricted to those that will result in the greatest amount of
new investment into a property given the Mills Act program limitations.
12. Consistent with the City's Mills Act Historic Property Tax Incentive Program application
package, the Historic Preservation Board and City Council held a public hearing to
review the submitted Mills Act contract applications and to evaluate the applications
against the selection criteria and to provide each a ranking.
Based upon the foregoing findings of fact, the Historic Preservation Board and City Council
further finds and concludes that the three Mills Act contract applications shall be ranked as
follows..
1. 73 S. 1st Street, commonly known as the Laura Campbell Swope House;
2. 204 Alice Avenue, commonly known as the William & Dorothy Harrison House; and
3. 81 Alice Avenue, commonly known as the Doc and Cora Beal House;
THEREFORE, BE IT RESOLVED that the City Council (1) extends the Mills Act Historic
Property Incentive Program to eleven properties; (2) approves applications for Mills Act
contracts for properties located at 73 S. 1st Street, 204 Alice Avenue, and 81 Alice
Avenue, commonly known as the Laura Campbell Swope House, the William & Dorothy
(Mills) Harrison House, and the Doc and Cora Beal House, respectively, subject to the
attached Conditions of Approval (attached Exhibit "A"); (3) directs staff to conclude an
audit of the existing mills act contracts; and (4) suspends the processing of any new Mills
Act contract applications until further City Council authorization.
PASSED AND ADOPTED this 7th day of September, 2021, by the following roll call vote:
AYES: COUNCILMEMBERS: Bybee, Landry, Lopez, Gibbons
NOES: COUNCILMEMBERS: Resnikoff
ABSTAINED: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ATTEST -
APPROV :.�_V--m�
eth "Liz" Gib ns, Mayor
Dusty Christopherson, City Clerk
EXHIBIT A
CONDITIONS OF APPROVAL
Mills Act Contracts
1. Approval: Approval is granted by the City Council to authorize the City Manager to
enter into Mills Act contracts for properties located at 73 S. 1st Street, 204 Alice
Avenue, and 81 Alice Avenue, commonly known as the Laura Campbell Swope
House, the William & Dorothy (Mills) Harrison House, and the Doc and Cora Beal
House, respectively. The contracts shall conform to the submitted Proposed
Schedule and Plan for Maintenance and Treatment of the Historic Property, as may
be modified by the Conditions of Approval contained herein.
2. Expiration: The Mills Act Historic contract approval shall be valid for one year from
City Council action. Within this one-year period the property owner shall enter into
the Mills Act contract with the City. Failure to execute a contract within this one-year
period will result in this approval being rendered void
3. Annual Reports: The property owner shall be required to submit to the City an
annual report which documents how the property owner is satisfying the terms and
provisions of the Mills Act Historic Property Contract. An annual monitoring fee
established by the City Council may be required to be submitted with the annual
report.
4. Inspections: The property owner shall allow periodic interior and exterior inspections
by the City, County Tax Assessor, Department of Parks and Recreation, and State
Board of Equalization to determine the property owner's compliance with the Mills
Act Historic contract.
5. Length of Mills Act Contract: The term of the contract shall be for a period of (10) ten
years. Upon execution, the City Manager shall issue a notice of non -renewal, which
shall result in the termination of the contract in 10 years.
6. Continued Applicability: The contract must be binding upon successive property
owners for the term of the contract. Successive property owners shall have the same
rights and obligations under the contract as the owner who entered the contract.
7. Cancellation fee: A cancellation fee of 12.5% of the full market value of the property
must be assessed upon the property owner if the contract is canceled for breach of
the provisions of the contract or if the property is altered or allowed to deteriorate so
that it is no longer considered a significant historic structure.
8. Compliance with Standards: All work must comply with the rules and regulations of
the California State Office of Historic Preservation of the Department of Parks and
Recreation, the United States Secretary of the Interior's Standards for Rehabilitation,
the California State Historic Building Code, and the Campbell Historic Design
Guidelines.