REPORT TO THE HISTORIC PRESERVATION COMMISSION November 28, 2022 FROM: JENNIFER CLARK, Director Planning and Development Department SUBJECT ..Title CONSIDERATION OF APPROVAL OF REQUESTS BY PROPERTY OWNERS TO ENTER INTO MILLS ACT HISTORICAL PROPERTY CONTRACTS PURSUANT TO FMC 12-1706: 1. The Mathisen Home located at 904 E Yale Ave., in the Porter Tract Historic District. 2. The Gibbs Home (HP# 180) located at 369 N Ferger Ave. RECOMMENDATION 1. Staff recommends that the Commission hold a public hearing and recommend that the Director of Development enter a Historical Property Contract for the subject properties pursuant to FMC 12-1706. Upon approval, respective property owners shall return executed and notarized contracts to City staff, who will subsequently execute and record contracts with the County Recorder. ..Body EXECUTIVE SUMMARY In California, Mills Act legislation grants participating local governments the authority to enter into contracts with owners of qualified historic property who actively participate in the restoration and maintenance of their historic properties and in exchange receive a reduction in property taxes. The City of Fresno adopted the Mills Act Program in 2016. The minimum duration for a Mills Act Contract is 10 years. Once granted a Mills Act contract, newly assessed property can potentially save up to 50% on their yearly property taxes. Provisions Qualified Historical Properties 1) Properties must be privately owned within the City of Fresno and not exempt from property taxation. 2) Properties must be listed in the National Register of Historic Places, located in a registered historic district, or listed in any state, city, county, or city and county official register of historical or architecturally significant sites, places, or landmarks. 3) Heritage Properties do not qualify for participation. Required Contract Provisions 1) Contracts entered into must have a term of a minimum of 10 years. 2) Owners must preserve and, when necessary, restore and rehabilitate the property to conform to the rules and regulations of the Office of Historic Preservation of the Department of Parks and Recreation, the Secretary of the Interior's Standards for the Treatment of Historic Properties, and the State Historical Building Code. 3) City officials must be granted permission to inspect the interior and exterior of the premises, prior to the execution of a new contract, and every five years thereafter, to determine the owner's continued compliance with the contract. 4) All successors in interest of the owner are bound to the benefits and burdens of the contract. 5) Unless written notice is provided by owners at least 90 days prior to the renewal date or by the City at least 60 days prior to the renewal date, 1 year shall automatically be added to the term of the contract on the anniversary date of the contract or such other annual date as is specified in the contract. 6) Owners must furnish the City with any information requested in order to determine the eligibility of the property involved; and 7) Owners or agents of the owners must provide written notice of a contract to the Office of Historic Preservation within six months of entering into a contract. Procedure Currently staff is evaluating 3 Mills Act Program Application Submittals which were received for the 2022 application period. Site visits were completed in September 2022 for these applications with the property owner, a representative from the Fresno County Assessor's Office, and a member of the Economic Incentive Subcommittee of the HPC were present; A staff report as well as revised work plans and survey forms for each respective property are being presented to the Commission at this meeting for review. Once approved, property owners will return executed and notarized contracts to City staff, who will subsequently execute and record contracts with the County Recorder prior to the end of calendar year 2022. Respective owners have requested to enter into a Historical Property Agreement (also known as a Mills Act contract) with the City. To ensure compliance with the Mills Act Program, City staff and/or Commission members shall conduct periodic inspections of the properties to verify that the agreed-to improvements are being fulfilled by the owner. Please note: Proposed exterior alterations that have the potential to affect the historic character of a designated property are still subject to review by the Historic Preservation Specialist upon project proposal and prior to the commencement of work. Furthermore, proposed projects which require a permit are subject to review by the Current Planning and Building & Safety divisions. Although anticipated projects may qualify for the Mills Act Program, approval of a Mills Act Application and execution of a Mills Act Contract do not equate with formal project approval. BACKGROUND 1. The Mathisen Home [b. 1920] located at 904 E Yale Avenue (APN 444-161-01), in the Porter Tract Historic District. The two-story single-family residence is approximately 2,800 square foot in size and situated on a 10,800 square foot parcel. Its front elevation faces E. Yale Avenue, is symmetrical in composition with regular spaced wood sash and double-hung windows. The residence has a square footprint, is built of wood frame and stucco finish in the Classic Revival Style with "Federalist" characterizes and has a hipped roof with a ridge. The period of significance identified for this property is 1920. The Mathisen Home is listed as contributing resource to the Porter Tract Historic District which is on the Local Register of Historic Resources. The Porter Tract Historic District received its designation when it was adopted by Fresno City Council in 2001 under Resolution 2001-117. The property is greater than 50 years of age, possesses integrity of location, design, materials, workmanship, feeling, and association (FMC 12-1607), and meets Criteria B and C of the U.S. Department of Interior's Bulletin 15. Additionally, it is significant under Local Register Criterion iii because it is an example of Classic Revival Style architecture constructed by John G. Porter. 2. The Gibbs Home [b. 1918] (HP# 180) located at 369 N Ferger Ave (APN 459-035-04). The historic name is the Benjamin Kaufman Residence and known by its common name, "The Gibbs Home." The Gibbs Home consists of a two-story, single-family residence, approximately 1,974 square feet in size, and located on a 18,750 square foot parcel. The residence is an "Airplane Bungalow" with a small second-story section perched above a large first story, resembling the cockpit of an early twentieth-century airplane. Its front elevation faces Ferger Avenue, has eleven gables with deep overhangs. The period of significance identified for this property is 1918, is listed as Historic Property #180 on the Local Register of Historic Resources and received its designation when it was adopted by the Fresno City Council in 1986 under Resolution 86-404. The property is greater than 50 years of age, possesses integrity of location, design, materials, workmanship, feeling, and association (FMC 12-1607), and meets Criteria B and C of the U.S. Department of Interior's Bulletin 15. Additionally, it is significant under Local Register Criterion ii and iii because it is an example of Airplane Bungalow architecture and was built for Benjamin Kaufman, owner of the Fresno Cash Market; from 1933 to 1966 occupied by attorney and police judge Melvin K. Gibbs who was also the son of the founder of the White house Department Store. The structure is also typical early Fresno House with wide overhangs, deep porches, and many gables, designed to meet the climatic conditions in the city. 3. The Home [b. 1934] located at 3027 N Van Ness Blvd. (APN 443-064-11) has not received a historic designation. In the application, the applicant noted the home is a contributor to a Historic District an identified the name of the district as the Tower District. The Tower District is not on the Local Register of Historic Resources. Therefore, it is not eligible for the Mills Act Program at this time. Mills Act Program Application Procedure The City's Mills Act Program is located at Chapter 12, Article 17 of the Fresno Municipal Code. Section 1706 references the Mills Act Program Application Procedure: Applications to the city shall be initially evaluated and reviewed by the Historic Preservation Commission. The Historic Preservation Commission shall hold a public hearing on every application for a Historical Property Contract. The public hearing shall be scheduled for a date not less than ten days but not more than ninety days from the date the application is filed. After the hearing, the Historic Preservation Commission shall recommend to the Director of Development and Resource Management Department that the application be denied, granted in whole or in part, or modified subject to such conditions as it deems appropriate. The Director of the Development and Resource Management Department may, in the Director's discretion, enter into Historical Property Contracts if all the conditions of this article are met. The Director of the Development and Resource Management Department shall be responsible for assuring performance of the Historical Preservation Contracts including contract administration, extension, cancellation, and enforcement. FMC Section 15-007(A) provides that: Timing of Notice. The Director shall provide a notice at least 10 days before the date of the public hearing or the date of action when no public hearing is required. FMC Section 15-007(B) provides that: Mailed Notice. The Director shall provide notice by First Class mail delivery to: 1. The applicant and the property owner; and 2. All property owners of record within a minimum 1,000-foot radius of the subject property as shown on the latest available assessment role; and 3. Any person or group who has filed a written request with the Director for notice regarding the specific application. In accordance with Section 15-5007 of the FMC, the Planning and Development Department mailed notices of this Commission hearing to surrounding property owners within 1,000 feet. ENVIRONMENTAL ANALYSIS The proposed historic designation seeks to ensure the long-term preservation of the subject resource which is exempt from CEQA (California Environmental Quality Act) review, per section 15331, Class 31 of the CEQA guidelines. CONCLUSIONS Staff recommends that the Commission hold a public hearing and recommend that the Director of Development enter into Historical Property Contracts for the subject properties pursuant to FMC 12-1706. Upon approval, respective property owners shall return executed and notarized contracts to City Staff, who will subsequently execute and record contracts with the County Recorder. ATTACHMENTS: Attachment A: DPR Forms, Historic Inventories & Resolutions Attachment B: Mills Act Draft Contracts