Vice Mayor Jim Tovias said his initial concern was that “times are lean, and perhaps reducing property taxes” would not be in the best interest of the city. But the loss of property tax revenue is “minimal compared to the benefits” brought to the city by the historic properties.There is a mutual benefit, said Councilman Dr. Gabino Aguirre, including the public good.Mayor Ralph Fernandez asked if only the three named buildings are eligible for Mills Act inclusion.There are more, said City Manager Wally Bobkiewicz, but staff has “tried to propose a program that makes sense and is also very sensitive” to city finances, resulting in the recommendation of those that have landmark status. “When we put those concentric circles on” the three buildings, “we thought these are the highest level of historic value,” as well as “tourist serving buildings.” The city, he added, receives sales tax from the Glen Tavern Inn that is “good for the city and the community.”“When I first looked at this I was also concerned at the tax base,” but Fernandez said it is “important that Glen Tavern stay open, provide us” with sales and hotel tax. “In these lean times,” Fernandez said the Mills Act opportunity would not be extended to residential dwellings.
City Council approves Mills Act for NRHP listed commercial buildings
February 13, 2009
Santa Paula City Council
With a plethora of notable structures, the City Council approved a plan to implement limited guidelines that would give special status to just three of the commercial variety listed on the National Register of Historic Places, whose owners may see a reduction in property tax.
By Peggy KellySanta Paula TimesWith a plethora of notable structures, the City Council approved a plan to implement limited guidelines that would give special status to just three of the commercial variety listed on the National Register of Historic Places, whose owners may see a reduction in property tax.Planning Director Janna Minsk told the Council at the February 2 meeting the city has received inquiries about the Mills Act that provides tax incentives for owners of historic properties to preserve and maintain their buildings. Minsk said due to current economic conditions, staff suggests “Initially, commercial properties currently designated as State Historical Landmarks” or on the National Register - deemed the most historical properties within the city - be considered for the program.“There are presently three properties that meet this requirement,” the First Union Oil Company Building AKA Santa Paula California Oil Museum, the Ebell Club, and the Glen Tavern Inn. Since the city operates the museum it was removed from consideration, and if approved the two potential Mills Act properties could see a property tax reduction that would cost the city approximately $2,800 to $7,000 annually in tax revenues.The lower tax rate, Minsk added, can be passed on to future property owners as long as they abide to Mills Act mandates. Applicants would be required to pay an $850 fee to recover city contract costs.The Glen Tavern Inn, owner Tom Jennett told the Council, “is one of the historic treasures in a city that has many,” which citizens are proud and supportive of maintaining.
