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Item 12 - Siegel DRIVING ECONOMIC VITALITY IN LOS GATOS WITH MILLS ACT FINALPrepared by… Los Gatos Historical Society 1 1 A private-public partnership in Preserving History Los Gatos Historical Preservation Society 2 “Most homeowners cannot get the job of historic preservation done all by themselves. Local government needs to become an ‘active partner’ in achieving that aim .” 2 Success Requires Economic Incentives Los Gatos Historic Society 3 Historical Preservation Efforts Economic Incentives Economic Vitality Historical Loss 3 Strong Support from the LG Community “Adopting the Mills Act would worst case be tax neutral over time” Mike Wasserman, Santa Clara County Superintendent & former Los Gatos Mayor “Adopting the Mills Act would inject new capital into historic downtown, creating a more compelling destination and boosting the Los Gatos economy.” Catherine Somers, Executive Director of the Los Gatos Chamber of Commerce, “Its time for Los Gatos to adopt the Mills Act to access California state economic incentives that drive historic preservation” Sandy Decker, former Mayor of Los Gatos “Historically and economically we’re trending the wrong way, at an accelerating rate!” Lee Fagot, Los Gatos resident and Town Advisory Board member “Adopting the Mills Act would be a great incentive to restore and revitalize our historic downtown buildings that have aged over time, bringing the grandeur back.” Sue Farwell, Historic Downtown building owner “Homeowners cannot get the job of historic preservation done all by themselves. Municipal government needs to become an ‘active partner’ in achieving that aim .” Jeff Siegel, President of Los Gatos Historical Society Los Gatos Historical Society 4 4 Historic Property Owners are asking too Los Gatos Historic Society 5 5 Two LG problems in Historic Home Preservation Decaying homes Vanishing homes Copyright Los Gatos Historic Preservation Society 6 Los Gatos Historical Society 6 Los Gatos Historic Preservation Town Code Los Gatos Historic Preservation Society 7 Sec. 29.80.215. Purposes: PROBLEM STATEMENT + INTENT: It is hereby found that historic structures….have been and continue to be unnecessarily destroyed or impaired, despite the feasibility of preserving them. It is further found that the public welfare REQUIRES PREVENTION of needless destruction and impairment, and promotion of the economic utilization and DISCOURAGEMENT of the decay of such structures. 7 Sec. 29.80.315. Duty to Keep in Good Repair Los Gatos Historical Society 8 The owner, lessee, and any other person in actual charge or possession of a pre-1941 structure, designated landmark or structure in the LHP or landmark and historic preservation overlay zone shall keep all of the exterior portions in good repair as well as all of the interior portions which are subject to control by the terms of the designating ordinance, and all portions whose maintenance is necessary to prevent deterioration or decay of any exterior portion Where is the economic incentive enabling residents to repair? 8 >25% Decay in Historic Los Gatos Homes Los Gatos Historic Preservation Society 9 9 Decaying Historic Los Gatos Homes Los Gatos Historical Society 10 10 Many LG Historic Homes Vanishing! Decaying homes Vanishing homes Los Gatos Historical Society 11 11 How Many Vanished since 1991? 320 total 267 total Los Gatos Historical Society 12 1991 Historic Survey 2019 Historic Survey loss of 53 homes, accelerating with losing 5+ per year 12 LG Historical Crisis – Inaction has a Cost Los Gatos Historical Society 13 16.5% now Gone – 37% Gone by 2030 13 Many Forces against Preservation Trump-2017 tax reform reduces money for preservation Skyrocketing costs of maintenance and rehabilitation Lack of historic preservation economic incentives in LG Economically more favorable to demolish and rebuild Los Gatos Historical Society 14 14 City of Campbell Council votes to protect city's history by approving Mills Act Los Gatos Historical Society 15 News Headline: 15 Partial List - California Towns receiving Mills Act funding Anaheim Anaheim Hills Arcata Belvedere Benicia Berkeley Beverly Hills Brea Calabasas Chico Chula Vista Claremont Colton Corona Coronado Covina Dana Point Danville Encinitas Escondido Eureka Fontana Gilroy Glendale Glendora Highland La Mesa La Verne Laguna Beach Larkspur Long Beach Los Altos Los Angeles Modesto Monrovia Monterey Napa National City Nevada City Oakdale Los Gatos Historical Society 16 16 California Towns benefiting from Mills Act funding Oakland Ojai Ontario Orange Orinda Oxnard Palm Springs Palo Alto Pasadena Pomona Rancho Cucamonga Redondo Beach Redwood City Riverside Sacramento Salinas San Bernardino San Clemente San Diego San Dimas San Francisco San Gabriel San Jose San Juan Capistrano San Luis Obispo San Mateo Santa Ana Santa Barbara Santa Clara Santa Monica Saratoga Sierra Madre Sonoma South Pasadena South San Francisco St Helena Sunnyvale Truckee Tulare Turlock Tustin Los Gatos Historical Society 17 17 California Towns benefiting from Mills Act funding - >100 Upland Vallejo Ventura West Hollywood Whittier Campbell Monte Sereno Los Gatos Historical Society 18 These California towns received well over a billion dollars in state preservation funding – a proven success program for California 18 Los Gatos Historical Society 19 Dramatically reduce the number of decaying homes in historic neighborhoods Stop accelerating rate of homes being removed from historic inventory Encourages rehabilitation of historic homes over demolition, decay, or non-use Make historic preservation a core part of the towns economic revitalization Make purchasing and owning a historic home more attractive to buyers Begin to raise the quality of our historic neighborhoods on par with Palo Alto Los Gatos Mills Act - Benefits - 19 LG History Gone – Saving the Rest! Los Gatos Historical Society 20 Crisis to Resolve NOW 20 A private-public partnership in Preserving History Many homeowners cannot get the job of historic preservation done all by themselves. Local government needs to become an ‘active partner’ in achieving that aim. Los Gatos Historical Society 21 21 Property Tax Impact Per 10 Homes Los Gatos Historical Society 22 LG portion of Mills Act tax reduction per 10 homes is <1% of a SINGLE YEAR ANNUAL increase in total LG property taxes 22 Los Gatos Historical Society 23 Mills Act Effects – Before & After This is the reason that California enacted the Mills Act: to help offset these ‘costs of preserving history’. 23 In summary… Los Gatos history has disappeared by 16.5 and will hit 37% if no action is taken to avert this crisis. Many historic homeowners lack the financial ability to address deferred maintenance issues that are putting more homes at risk. Economic incentives, via the California Mills Act, has proven to be the most effective means of aligning actions with the town code. Sally Zarnowitz, on town staff, has tons of experience implementing the Mills Act, both in Berkeley and in San Jose. Most homeowners cannot do it alone - preserving history requires a public-private partnership with local gov’t playing an active role. Los Gatos Historic Society 24 24 Special Thanks to… Los Gatos Historical Society 25 Anne Grimmer, US Department of the Interior Governor Newsom’s office Anna Eshoo, U.S. Representative from California Mike Wasserman, Santa Clara County Supervisor Sue Farwell, historic commercial property owner Sandy Decker, former Los Gatos Mayor Christine Nguyen, City of Anaheim historic preservationist Alan Feinberg, Los Gatos historian 25