Ventura Municipal Code Ch. 4.108 Tax Incentives for Qualified Historical Properties (historical Property…

A. The purpose of this chapter is to implement the provisions of California Government Code Section 50280 et seq. (the “Mills Act”). The Mills Act authorizes local governments to enter into contracts with owners of private historical property who will rehabilitate, restore, preserve, and maintain qualified historical property. In return for a property owner’s commitment to pursue the rehabilitation, restoration, preservation and maintenance of the qualified historical property, the city intends to facilitate certain property tax reductions in accordance with Article 1.9 (commencing with Section 439) of Chapter 3 of Part 2 of Division 1 of the California Revenue and Taxation Code.

B. The city of Ventura contains numerous historic buildings, which add to its character and identity. Some of these buildings may have not been adequately maintained over time, may be structurally deficient, or may need rehabilitation. The costs of properly rehabilitating, restoring, preserving, and maintaining historic buildings may be prohibitive for property owners. Implementation of the Mills Act as provided by this chapter is intended to serve as an incentive to property owners to preserve and maintain historic property.

C. The procedures established herein are further intended to balance the benefits of the Mills Act to the individual property owners and the historical value of individual buildings proposed for historical property contracts with the potential cost to the city in providing the property tax reductions set forth in the Mills Act. (Ord. No. 2004-022, § 3, 11-1-04)

An owner, or an authorized agent of the owner, of a qualified historical property may apply for a historical property contract. For purposes of this chapter, “qualified historical property” shall mean privately owned property which is not exempt from property taxation and which is one of the following:

A. Individually listed in the National Register of Historic Places or the California Register of Historic Resources; or

B. Designated as a city landmark pursuant to Chapter 24.455. (Ord. No. 2004-022, § 3, 11-1-04)

An owner, or an authorized agent of an owner, of a qualified historical property may submit an application for a historical property contract to the community development director on forms provided by the director. (All further references to the “director” in this chapter are references to the city community development director, or the director’s designee, unless specifically indicated to the contrary herein). The property owner shall provide, at a minimum, the following information and documentation on or with the application:

A. The address and location of the qualified historical property;

B. Evidence that the property is a qualified historical property;

C. A legal description of the property;

D. A title report or other evidence of the sufficiency of the applicant’s legal or equitable interest in the property;

E. The nature and cost of any rehabilitation, restoration or preservation work to be conducted on the property;

F. A plan for continued maintenance of the property; and

G. Any further information the director determines necessary to make a thorough evaluation of, and recommendation on, the proposed historical property contract in accordance with the purposes of this chapter. (Ord. No. 2004-022, § 3, 11-1-04)

A. Historic Preservation Committee Review. After the director determines that the application meets the minimal requirements of Section 4.108.030 and is otherwise complete, the director shall refer the application to the historic preservation committee (“HPC”) for its review and recommendation. The historic preservation committee shall hold a public hearing to review the application for the historical property contract and shall make its recommendation to the city council as to the historical value of the qualified historical property, any proposed rehabilitation, restoration or preservation work, and any proposed preservation restrictions and maintenance requirements.

B. City Council Decision. Following review by the historic preservation committee, the city council shall conduct a public hearing to review the historic preservation committee recommendation, the information provided by city staff, and any other information the council determines to be necessary or desirable in order to decide whether the city should execute a historical property contract for a particular property. The council reserves authority, and shall have full discretion, to determine whether it is in the public interest to enter a Mills Act historical property contract with the owner of a particular qualified historical property. Following the completion of the public hearing, the council may approve, disapprove, or modify and approve the terms of the proposed historical property contract or continue its deliberations on the contract to a subsequent meeting. Upon approval, the council shall authorize the city manager to execute the historical property contract.

C. Recording. No later than 20 days after the city enters into a historical property contract the city clerk shall transmit a copy of the contract to the office of the Ventura County recorder for recordation.

D. Hearings. Notice of the public hearings required by this section shall be given in accordance with the requirements for notice by publication set forth in Chapter 24.560 and to any interested person or organization that has previously submitted a written request for such notice. (Ord. No. 2004-022, § 3, 11-1-04)

A. The historical property contract shall set forth the agreement between the city and the property owner that, as long as the property owner properly rehabilitates, restores, preserves and maintains the qualified historical property as set forth in the contract, the property shall be eligible for reassessment of valuation in accordance with Article 1.9 (commencing with Section 439) of Chapter 3 of Part 2 of Division 1 of the California Revenue and Taxation Code; provided, that the Ventura County assessor determines that those provisions of the Revenue and Taxation Code are applicable to the property in question. A historical property contract shall further include, at a minimum, the following provisions:

1. The term of the contract, which shall be for a minimum of 10 years;

2. The owner’s commitment and obligation to preserve, rehabilitate, restore and maintain the property in accordance with the rules and regulations of the Office of Historic Preservation of the California Department of Parks and Recreation and the United States Secretary of the Interior’s Standards for the Treatment of Historic Properties;

3. Permission for periodic examinations of the interior and exterior of the qualified historical property to be conducted by persons representing the city planning or inspection services divisions, the Ventura County assessor, the Office of Historic Preservation of the California Department of Parks and Recreation, and the State Board of Equalization as may be necessary to determine the owner’s continuing compliance with the historical property contract;

4. That the historical property contract is binding upon, and shall inure to the benefit of, all successors in interest of the owner;

5. An extension to the term of the contract so that one year is added automatically to the initial term of the contract on the anniversary date of the contract or such other annual date as specified in the contract unless notice of nonrenewal is given as provided in the Mills Act and in the historical property contract;

6. Agreement that the city may cancel the contract, or pursue whatever other legal or equitable remedies it deems necessary or desirable for enforcement of the contract, when the city council finds that the owner has breached the terms of the contract; and

7. The property owner’s indemnification of the city for, and agreement to hold the city harmless from, any claims arising from any use of the property.

B. The city and the qualified historical property owner shall comply with all provisions of the Mills Act, including any amendments thereto that may be enacted from time to time. The Mills Act, as amended from time to time, shall apply to the historical property contract process and shall be deemed incorporated into each historical property contract entered into by the city. (Ord. No. 2004-022, § 3, 11-1-04)

A. The city may cancel any historical property contract if the city council determines that the owner has:

1. Breached any of the conditions of the contract; or

2. Allowed the property to deteriorate to the point that it no longer meets the standards for a qualified historical property; or

3. Failed to pay reasonable inspection fees or otherwise failed to cooperate in allowing periodic inspections of the property as reasonably required to determine that the property continues to meet the standards for a qualified historical property; or

4. Failed to restore or rehabilitate the property as specified in the contract.

B. A public hearing shall be held by the city council on a proposed cancellation for any of the reasons listed in subsection A of this section. Notice of the hearing shall be mailed to the last known address of each owner of the property at least 10 days in advance of the hearing and shall be published in accordance with the requirements for notice by publication set forth in Chapter 24.560.

C. Upon cancellation of the contract for any of the reasons listed in subsection A of this section, the property owner shall pay a cancellation fee of 12.5 percent of the full value of the property at the time of cancellation as determined by the assessor (or such other percentage or amount as may be authorized by the Mills Act, as it may be amended from time to time), without regard to any restriction on such property imposed by the historical property contract.

D. In the event that a property subject to a historical property contract under this chapter is acquired in whole or in part by eminent domain or other acquisition by any entity authorized to exercise the power of eminent domain, and the acquisition is determined by the city council to frustrate the purpose of the contract, the contract shall be canceled and no cancellation fee shall be imposed.

E. The city’s authority to cancel any historical property contract in accordance with this section is nonexclusive and in addition to all other remedies provided by law or equity relating to contracts. (Ord. No. 2004-022, § 3, 11-1-04)

A. If the city council determines not to renew the contract, it must serve its written notice of nonrenewal upon the owner at least 60 days prior to the renewal date. The owner may make a written protest of the city’s notice of nonrenewal and the city may at any time prior to the renewal date rescind its notice of nonrenewal.

B. If an owner chooses to avoid automatic renewal of the contract, the owner must serve written notice of nonrenewal to the director at least 90 days prior to the renewal date.

C. If the city or the owner serves a notice of nonrenewal, the existing contract shall remain in effect for the balance of the contract period then remaining. (Ord. No. 2004-022, § 3, 11-1-04)

A. The city council may determine the amount of, and impose, a fee to compensate the city for processing and administering an application for a historical property contract. The fee shall be no more than 100 percent of the amount needed to compensate for the time and materials required to process the application, based upon the estimated actual costs to perform the work, including, but not necessarily limited to, the costs of the community development department, the city attorney, and the finance department.

B. The city may also impose a separate fee, following approval of the historical property contract, to compensate the city for the actual costs of inspecting the qualified historical property and enforcing the historical property contract.

C. Failure to pay any application or inspection fees shall be grounds for rejection of an application for a historical property contract, or canceling a historical property contract, as applicable. (Ord. No. 2004-022, § 3, 11-1-04; Ord. No. 2006-009, § 3, 5-1-06; Ord. No. 2022-002, § 11, 3-21-22)

The incentives provided by this chapter are intended to be but one means of preserving historically significant properties in the city of Ventura and the city council reserves its authority to make any other reasonable arrangements to preserve designated historic landmarks. These may include, by way of example but without limitation, establishment of a private or public fund for preservation of historic landmarks or other contractual agreements with property owners for the maintenance and preservation of facade easements or public access to the structure. (Ord. No. 2004-022, § 3, 11-1-04)