Item 33 - Historic Property Preservation Agreements

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HPPA No. 2023-08 — The Gilmaker Block (302 W. Fourth Street) September 7, 2023 Page 2 Analysis of the Issues Ordinance No. NS-2382 authorized the Historic Resources Commission to execute Historic Property Preservation Agreements (HPPA), commonly known as Mills Act agreements, for eligible properties. The property is listed on the Register and categorized as Key, making it eligible for a Mills Act Agreement. The agreement provides monetary incentives to the property owner in the form of a property tax reduction in exchange for the owner's voluntary commitment to maintain the property in a good state of repair as necessary to maintain its character and appearance. Once recorded, the agreement generates a different valuation method in determining the property's assessed value, resulting in tax savings for the owner. Aside from the tax savings, the benefits include: • Long term preservation of the property and visual improvement to the neighborhood • Allows for a mechanism to provide for property rehabilitation • Provides additional incentive for potential buyers to purchase historic structures • Discourages inappropriate alterations to the property In 2001, the Historic Resources Commission placed the Gilmaker Block on the Register and within the "Key" category because of its distinctive architectural style and quality, and being characteristic of a significant period in the history of the City of Santa Ana. Character -defining exterior features of the Gilmaker Block that should be preserved include, but may not be limited to: brick exterior; glazed brick trim; parapet; bay divisions articulated by piers; and architectural ornamentation. In May 2023, the property received approval by Santa Ana's Historic Resources Commission for an historic exterior modification application (HEMA), HEMA No. 2023-02, consisting of renovating the existing commercial structure to accommodate three retail spaces and one restaurant. Additionally, the HEMA included exterior modifications consisting of a new 4,056-square-foot rooftop addition and 1,632-square-foot rooftop outdoor seating area with trellis as part of the new restaurant use. All approved exterior modifications were consistent with the Secretary of Interior Standards (SOIS) for Rehabilitation. Per the Conditions of Approval for HEMA No. 2023-02, staff will ensure that the proposed work will be completed in tandem with a qualified historic architect. The architect shall monitor the site monthly and provide updates to Planning Division staff during the entire construction period to ensure that the project is executed per the plans and follows the SOIS. Staff will ensure that all work is completed sensitively and will maintain the property's character defining features as part of the Mills Act Agreement for this property. Future improvements proposed by the property owner during the initial ten years of the Mills Act Agreement include all work approved as part of the May 2023 HEMA (interior and exterior modifications along with rooftop addition with trellis). The full improvement list, titled Attachment 5 - Proposed Structure Improvements— 302 West Fourth Street, is attached. Historic Resources Commission c — 2 9/7/2023