Cottages like this landmark
property were popular in Southern California from the late 1890s through
the 1910s. This property was one of the initial buildings constructed within
the original town of Santa Monica boundaries. 954 Fifth Street, is marked
by narrow clapboard siding, curvilinear bay windows, double hung sash doors,
and oriental-style "fillips," or exposed rafter tails, at the
edges of the hipped roof. Of fourteen like properties that once formed a
potential fin de siecle thematic district, only nine still stand. Five of
the 14 had been demolished in four years.
Nina Fresco, member of the Santa Monica Conservancy states that 954 is "a
particularly fine example of turn-of-the-century housing." Of those
still standing, she said, only four retain their architectural integrity.
On behalf of the owner, however, attorney Ken Kutcher asserted that the
owner had spent "tens of thousands of dollars" getting the project
approved. "It is very, very difficult for them to consider a change
in plans at this juncture," he said.
Those members present voted unanimously to seize the opportunity and
apply for landmark status for the house. Chair Pro Tempore Roger Genser
offered consolation, saying that application is only the first step in
a long process towards official designation.
Owners of Landmark homes can take advantage of their historic status
to seek tax advantages. The Mills Act is a state law that enables local
governments to enter into contracts with owners of qualified historic
properties to authorize a property tax reduction. Under the Mills Act,
property taxes can be reduced by as much as 30% in exchange for a 10-year
contract promising to restore and maintain designated and structures of
merit.
The Mills Act was adopted in Santa Monica in 1991, as part of a comprehensive
revision to the City's Landmarks Ordinance. The City Council authorized
designated structures of merit, landmarks, and contributing structures
located in designated historic districts to be considered "qualified
historical properties" eligible for historical property contracts
submitted pursuant to the provisions of
California Government Code Sections 50280-50290.
As a result, property owners of such designated historic properties may
file a Mills Act Contract Application. Once approved, a Mills Act contract
requires the County Tax Assessor's office to determine the value of the
historic property based upon its current net operating income, rather
than upon the traditional assessed valuation method, resulting in a property
tax reduction. For
structures that are owner occupied, the net operating income is determined
by the income the property would produce if rented. In exchange for the
property tax reduction, the owner agrees to protect, maintain and, if
necessary, restore the historic property.
The initial Mills Act contract term is ten years. However, each year
on the anniversary of the contract's effective date, an additional year
is added to the contract term unless the property owner or the City submits
a notice of non-renewal to the other party in a timely manner. Effectively,
the actual term of the
contract is at least ten years, but may be indefinite, as it is automatically
annually renewed.
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