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