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  Agenda Item   6.    
City Council Meeting
Meeting Date: 08/15/2023  
FROM: Bill Gallardo

Subject:
Consideration of recommendations for a Historic Preservation Pilot Program for Fiscal Years 2023-2024 and 2024-2025.
RECOMMENDATION
Staff recommends that the City Council take the following actions:
 
  1. Direct Staff to establish a Historic Preservation Pilot Program.
  2. Authorize the Director of Community Development the authority to waive staff time for two project applicants on a first-come, first-served basis per fiscal years 2023-2024 & 2024-2025, up to $2,000 each, for the Historic Designation Preservation Program; funds not to exceed $4,000 per fiscal year, totaling $8,000 for the pilot program.
  3. The applicant will contribute a $500 deposit for third-party expenses (e.g., public notice mailing/publication, County of Orange, etc.). Any remaining deposit funds will be refunded upon successful acceptance into the Historic Designation Program.
  4. Direct staff to provide a report on the two-year pilot to be received and filed with the City Council at a regularly scheduled meeting.
BACKGROUND/DISCUSSION
The City of Brea has a longstanding commitment to the preservation and recognition of the past. This commitment was formally codified on June 21, 1994, when the City Council adopted Ordinance 953, creating Chapter 20.60 (Historic Preservation) of the Zoning Code. The purpose of this chapter was to promote the historic, cultural, educational, economic, and general welfare of the community by:
  • Assuring that appropriate development is consistent with Land Use, Housing, and Historic Resource Elements of the Brea General Plan.
  • Establishing a mechanism to identify and preserve the distinct historic and architectural characteristics of Brea, which represent elements of the city's cultural, social, economic, political, and architectural history;
  • Fostering civic pride in the beauty and noble accomplishments of the past as represented in Brea's historic resources;
  • Encouraging the preservation, restoration, and rehabilitation of structures, areas, and neighborhoods, thereby preventing future blight.
Ordinance 953 (Attachment A) included a process and criteria for which a historic resource could be designated. The Planning Commission serves as the decision authority for historic resources and maintains the historic register. To date, there are a total of 59 residences that have been added to the Brea Historic Register.
 
The process outlined in Ordinance 953 (BCC Chapter 20.60) for a Historic Preservation designation follows the procedures of a Conditional Use Permit (CUP) outlined in BCC Chapter 20.408.040. The request requires property owners to apply with supplemental materials, a site plan, and the appropriate fees to be paid as determined by City Council resolution. The current fee established for a CUP, which would also apply to a Historic Preservation designation, is an initial $2,000 deposit as outlined in Attachment B of this report. The City of Brea charges fees for services performed on projects processed by the city based on a 2017 Citywide Use Fee Study. Any portion of the deposit not used for services performed by the City is refunded to the applicant.  Last year, the most recent Historic Designation approval was for the 315 S. Flower Avenue property. The staff cost associated with reviewing and processing this application was approximately $1,146, and the public noticing cost was around $420.
 
An added benefit for a property deemed a Historic Designation is that it may qualify for substantial property tax savings each year through the State of California’s Mills Act Program. Owners of historic buildings may be eligible for property tax relief if they pledge to rehabilitate and maintain the historical and architectural character of their properties for at least ten years. Properties assessed under the Mills Act typically see a reduction in property taxes ranging from 15% to 60%.
 
As a major proponent for historic preservation, the Brea Museum and Historical Society has requested that the City investigate opportunities to limit the cost associated with recognizing historic resources in the City (Attachment D). This concept promotes historic preservation and potentially encourages homeowners to consider designating their homes without an initial cost burden. With this request, staff has developed the following pilot program recommendations for the City Council to consider.
 
Historic Designation Pilot Program:
 
  • Two-year pilot, ending June 30, 2025.
  • Authorize the Director of Community Development the authority to waive staff time for two project applicants on a first-come, first-served basis per fiscal years 2023-2024 & 2024-2025, up to $2,000 each, for the Historic Designation Preservation Program; funds not to exceed $4,000 per fiscal year, totaling $8,000 for the pilot program.
  • The applicant will contribute a $500 deposit for third-party expenses (e.g., public notice mailing/publication, County of Orange, etc.). Any remaining deposit funds will be refunded upon successful acceptance into the Historic Designation Program.
  • Website marketing of Historic Preservation and this “grant” opportunity.
  • Report back to the City Council at a future meeting following the conclusion of the pilot program.
     
FISCAL IMPACT/SUMMARY
The fiscal impact of this pilot program on the City would be a total of $8,000, as outlined in Table 1 below:
 
Table 1
FY 2023 to 2024 – Application #1 Maximum Cost Waived for Staff Time $2,000
FY 2023 to 2024 – Application #2 Maximum Cost Waived for Staff Time $2,000
FY 23-24 Total: $4,000
FY 2024 to 2025 – Maximum Cost Waived for Staff Time $2,000
FY 2024 to 2025 – Maximum Cost Waived for Staff Time $2,000
FY 24-25 Total: $4,000
Pilot Program Total:   $8,000
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager
Prepared by: Yerika Ambriz, Management Analyst
Concurrence: Jason Killebrew, Community Development Director
 
Attachments
Attachment A – Ordnance No. 953
Attachment B – Fee Schedule
Attachment C – Historic Preservation Application
Attachment D – Brea Museum and Historical Society Letter

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