Mountain House Municipal Code Ch. 12 Mills Act Contract

The intent of this Chapter is to create an incentive program and establish regulations for the preservation of qualified historic property, in the City of Mountain House. This Chapter will provide a method for establishing, terminating, and canceling, qualified historic properties pursuant to California Government Code Sections 50280 through 50290 and California Revenue and Taxation Code Article 1.9, Sections 439 through 439.4. The goal of preservation is supported by the following specific objectives:

(a) To preserve, maintain, and improve structures and sites, of historic significance;

(b) To ensure that rehabilitation and modifications of qualified historic properties are accurate and in keeping with their historic context; and

(c) To provide educational and cultural opportunities for the residents of the City.

(Ord. 2024-18, § 1(Exh. A), 2024)

The purpose of this section is to provide a method for executing a contract pursuant to the Mills Act.

(a) Application Requirements. A "Mills Act contract" application shall include all documentation, maps or other information required by the Director. Applications shall be filed with the Community Development Department. Contract applications may be initiated by a private property owner or his designated agent and shall meet the following criterion:

(1) Historic Listing. The qualified historic property must be registered with either the federal National Register of Historic Places or the State's Register of Historical Resources. A qualified historic property may also qualify for Mills Act contract status by being a property that is designated by the State of California as a Historic Landmark or as a Point of Historic interest.

(b) Contract Terms. Any contract that is entered into shall comply with the following provisions:

(1) Minimum Term. The minimum term of a Mills Act contract shall be ten (10) years. Each year, on the date specified in the contract, the contract is automatically renewed for an additional year unless a Notice of Nonrenewal is given or the contract is cancelled.

(2) Preservation, restoration, and rehabilitation. Property owners under contract shall provide for the necessary preservation, restoration, and rehabilitation of the property so that it conforms with the rules and regulations of the United States Secretary of the Interior's Standards for Rehabilitation and the California State Historical Building Code.

(3) Inspections. The contract shall provide for the periodic examination of the interior and exterior of the premises by the Community Development Department, Assessor, the Department of Parks and Recreation, and the State Board of Equalization to determine the owner's compliance with the contract.

(4) Successors. The contract shall be binding upon any successor to the original property owner, i.e., the contract shall "run with the land." The successor in interest shall have the same rights and obligations as the original owner who entered into the contract.

(5) Annexation. If the City annexes a historic resource with an established Mills Act contract, the City shall succeed to all rights, duties and powers formerly held by the County.

(6) Recordation. The establishment or cancellation of a contract shall not be final until the contract or notice of cancellation is recorded with the County Recorder by the Community Development Department.

(7) Notification. The owner or agent of an owner shall provide written notice of the contract to the state Office of Historic Preservation within six (6) months of entering into the contract.

(c) Review Procedure. Contract applications shall be reviewed by the Community Development Department and by the City Attorney before submittal to the City Council who shall take final action on the contract application.

(Ord. 2024-18, § 1(Exh. A), 2024)

This Section provides a method for nonrenewal of a Mills Act contract. Either party to the contract may submit a Notice of Nonrenewal. Failure to serve a written Notice of Nonrenewal to the other party within the times listed below shall result in an additional year being added to the annual renewal date of the contract.

(a) Application Requirements. A "Notice of Nonrenewal" application to terminate a Mills Act contract shall include all documentation, maps or other information required by the Director. Applications shall be filed with the Community Development Department. The contract shall continue until the term of the contract has expired.

(b) City-Initiated. A Notice of Nonrenewal initiated by the City shall be given to the owner or the owners designated agent at least sixty (60) days before the anniversary date of the contract.

(c) Owner-Initiated. A Notice of Nonrenewal initiated by the owner shall be given to the City at least ninety (90) days before the anniversary date of the contract.

(Ord. 2024-18, § 1(Exh. A), 2024)

This Section provides a method for canceling a Mills Act contract. For the reasons listed below, the City or the owner may initiate a Mills Act Cancellation application. The application fee and any applicable penalty fee shall be paid at the time the request for cancellation is made. The penalty fee is twelve and one-half (12.5) percent of the current fair market value of the property.

Cancellation of a Mills Act contract requires notification to the property owner, public notice in a newspaper of general circulation and a public hearing by the City Council. Immediately following approval by the City Council, the cancellation process shall begin.

Contract cancellation shall be permitted for the following reasons:

(a) Eminent Domain. If the historic resource is acquired in whole or in part by eminent domain the contract shall be deemed null and void. No penalty fee shall be imposed on the property owner;

(b) Breach of Contract. If it is determined that the property owner has breached any of the conditions of the Mill Act contract, the contract shall be cancelled and a penalty fee shall be imposed on the property owner;

(c) Inadequate Restoration. If the owner has not rehabilitated the property in the manner specified in the Mills Act contract, the contract shall he cancelled and a penalty fee shall be imposed on the property owner; or;

(d) Deterioration. If the property has deteriorated and no longer meets the federal standards for a qualified historic resource referred to in the Mills Act contact, the contract shall be cancelled and a penalty fee shall be imposed on the property owner.

(Ord. 2024-18, § 1(Exh. A), 2024)

A fee for the "Mills Act Contract", "Mills Act Notice of Nonrenewal" and the "Mills Act Cance1lation" application shall be required. These fees are established by the City Council pursuant to Development Title section 9-2-902.

(Ord. 2024-18, § 1(Exh. A), 2024)

Violations of this Chapter shall be enforced pursuant to Chapter 2 of Division 19 of the City of Mountain House Development Title.

(Ord. 2024-18, § 1(Exh. A), 2024)