A Chance to Save History and Taxes Too

The first 10 property owners to apply can join the city’s pilot program for the Mills Act, a state law that grants property-tax cuts in exchange for historic preservation efforts.

City Council members had delayed a decision on the issue three times, saying they were concerned about the loss of tax dollars to the school district.

But they finally passed the proposal this week with a 3-0 vote after district officials said the state makes up for just about all of the potential shortfall. The pilot program was restricted to 10 applicants; the council will review the project in one year.

The city could lose $7,000 to $20,000 in taxes annually, out of an operating budget of $53 million, community development officials said.

Councilmen Dan Slater and Michael Alvarez abstained from voting because they own property in the city’s mile-square historic district, which is expected to generate many of the Mills Act contracts.

Any resident who owns a building considered to be historically significant can apply for one of the 10-year contracts. In an unusual twist on the law, city officials agreed that commercial buildings would also be eligible for the program.

Participants must specify the work they intend to do on the building and the restoration must improve or protect the structure. In return, they may see their property tax bills drop by 50% or more.

Any building listed on an historical register is eligible.

Applications may be made at the Community Development Department in City Hall, 300 E. Chapman Ave.

Information: (714) 744-5500.