City of Carlsbad, CA Chapter 22.10 PRESERVATION BENEFITS AND INCENTIVES

§ 22.10.020 Historical property contracts.

A. Owners of qualified historical properties improved with at least one building may receive a potential reduction in property taxes through a historical property contract (Mills Act contract), pursuant to California Government Code Section 50280 et seq. and California Revenue and Taxation Code Section 439 et seq., collectively "the Mills Act." The purpose of this section is to implement the Mills Act in order to establish a voluntary process to enter into contract with owners of qualified historical properties that have previously been designated as a historic resource for property tax relief and for the preservation of those historic resources.

B. Individual properties that are not a qualified historical property at the time of application for a Mills Act contract may submit an application for the property to be listed in the register simultaneously with the application for a Mills Act contract. The applications will be processed concurrently.

C. Applications. Mills Act contract applications may be submitted to the planning division on a form provided by the City Planner. All applications shall include:

1. Documentation of status as a qualified historical property or nominated historic resource;

2. A detailed 10-year work plan of proposed preservation, restoration and/or repair prepared by, or with the concurrence of, an individual qualified under the applicable professional qualification standards;

3. A description of the property;

4. Property owner(s) affidavit and acknowledgement of the Mills Act mandatory provisions;

5. A completed Mills Act contract notarized and signed by the property owner(s); and

6. All required fee(s), as set by council resolution.

D. Procedure. Following receipt of a completed application, the City Planner or designee shall review the application materials and schedule the pre-contract approval inspection of the exterior and interior of the subject property with the property owner(s). The purpose of the inspection is to confirm and photo-document the condition of the property and review the proposed work plan of improvements. Failure of a property owner to allow access to the property for purposes of the property inspection shall be grounds for denial of the application. Once the inspection is conducted and the planning division has completed its review of the application to develop a recommendation, the planning division shall forward its recommendation on the Mills Act contract to the Commission. The Commission shall conduct a public hearing to consider the contract terms, including the 10-year work plan, and make a recommendation to City Council regarding the approval, conditional approval or denial of the Mills Act contract.

E. Following receipt of the Commission's recommendation, the City Council shall conduct a public hearing and shall either approve, conditionally approve or deny the Mills Act contract. The decision of the City Council shall be final.

F. No later than 20 calendar days after the city enters a Mills Act contract, the City Clerk shall record with the County Recorder a copy of the contract, which shall describe the property subject thereto. The City Clerk shall notify the property owner(s), the county tax assessor's office and the State Office of Historic Preservation of the recorded Mills Act contract.

G. Mills Act contract mandatory provisions. All Mills Act contracts shall meet the requirements of Government Code Section 50280 et seq., as it exists now or as may be amended.

H. Notice of Nonrenewal. Either party to a Mills Act contract may file a notice of nonrenewal at any time after entering into the contract. The effect of the notice of nonrenewal shall be as prescribed in Government Code Section 50282 and Revenue and Taxation Code Section 439.3.

I. Cancellation.

1. Cancellation of a Mills Act contract shall be in accordance with the terms of the agreement and Government Code Sections 50284—50286.

2. As an alternative to cancellation of the contract, the city may bring any action in court necessary to enforce the Mills Act contract, including an action to enforce the contract by specific performance or injunction.

3. If the qualified historical property under an active Mills Act contract is destroyed by earthquake, fire, flood, or other natural disaster such that in the opinion of the building official more than 60% of the original fabric of the building or structure must be replaced, the Mills Act contract may be cancelled, in accordance with the cancellation provisions of the Mills Act, because the authenticity, integrity, value and/or importance of the building structure will have been destroyed. If the qualified historical property 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 Mills Act contract, then the contract may be cancelled in accordance with the cancellation provisions of the Mills Act. No cancellation fee pursuant to Government Code Section 50286 shall be imposed if a Mills Act contract is cancelled pursuant to this subsection.

J. The City Manager or designee may adopt written administrative regulations that are consistent with and further the requirements of this chapter.

K. Enforcement. Enforcement of this chapter and Mills Act contracts shall be as allowed by Government Code Sections 50280—50290 and as provided by the terms of the Mills Act contract recorded on the property.

(Ord. CS-438 § 6, 2022)