REPORT TO THE HISTORIC PRESERVATION COMMISSION February 28, 2022 FROM: MIKE SANCHEZ, Assistant Director Planning and Development Department BY: ALICIA GONZALES, Historic Preservation Specialist 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. John B Marshall Homes (HP# 267) Located at 164 & 166 N. Echo Avenue 2. Minnie Sach's Home Located at 711 E. Pine Avenue, Wilson Island Historic District Staff 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 40% 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 4. Contracts entered into must have a term of a minimum of 10 years. 5. 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. 6. 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. 7. All successors in interest of the owner are bound to the benefits and burdens of the contract. 8. 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. 9. Owners must furnish the City with any information requested in order to determine the eligibility of the property involved; and 10. 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 Site visits were completed in December 2021 for these applications with the property owner, the Historic Preservation Specialist, 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 then 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. John B. Marshall Homes [c. 1886] (HP# 267) located at 164 & 166 N. Echo Ave. (APN 459-292-25). The John B. Marshall Homes consist of two one-story residences which reside on 5,575 square foot lot. The property addressed at 164 N. Echo Ave. was built in 1908 and is located at the front of the property facing Echo Ave. It is a single-family residence in a Vernacular Gable-end Cottage style, it is noted that this property switched places with the current rear property in the early 2000's. The rear property is addressed at 166 N. Echo Ave. was built in 1884 and is one of the oldest standing homes in the City of Fresno. This property is a single-family residence build in the Vernacular Hall-Parlor Cottage style. The John B. Marshall Homes are listed on the Local Historic Register HP #267 and received their designation when they were adopted by Fresno City Council in October 2009under Resolution 2009-226. The period of significance identified for this property is 1884. The property is greater than 50 years of age, example of a style and type of construction with high integrity for its period of significance under Criterion ii (FMC 12-1607), and possesses integrity of location, design, materials, workmanship, feeling, and association (FMC 12-1607). 2. Minnie Sach's Home [b. 1915] located at 711 E. Pine Avenue (APN 451-112-11) within the Wilson Island Historic District. The Farley home consists of a two-story, single-family residence which is an approximately 3,170 square foot home on a 0.26-acre parcel and its front elevation faces E. Pine Ave. The residence is an Italian Renaissance Revival with Prairie and Craftsman influence. The Minnie Sach Home is listed as contributing resource within the Wilson Island Historic District. The period of significance for this district is 1910-1984. The Wilson Island Historic District received its designation when it was adopted by Fresno City Council in 2009 under Resolution 2009-227. The property is greater than 50 years of age and possess integrity of location, design, materials, workmanship. and association under Criterion i, ii, and iii (FMC 12-1607). 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; and2.All property owners of record within a minimum 1,000-foot radius of the subject property as shown on the latest available assessment role; and3.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 FINDINGS 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 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 Form_164-166 N Echo Ave Attachment B: Resolution 2009-226 [10-29-2009] Attachment C: 2020-2021 Mills Act Draft Contract_164-166 N Echo Ave Attachment D: DPR Form_711 E Pine Ave Attachment E: Resolution 2009-227 [10-29-2009] Attachment F: 2020-2021 Mills Act Draft Contract_711 E Pine Ave