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REQUEST FOR Historic Resources Commission Action Hsro~c r~sou~s conn~ssloN ni~tr~c o~-Tr=: OCTOBER 5, 2006 TITLE: HISTORIC PROPERTY PRESERVATION AGREEMENT NO. 2006-04 FOR THE PROPERTY LOCATED AT 1916 NORTH FLOWER STREET Prepared by Hally Soboleske wsrowc ~sou~ES con~ul~oni sECr~ rater APPROVED ^ As Recommended ^ As Amended ^ Set Public Hearing For CONTINUED TO ,~, Executive Director Planning Man er RECOMMENDED ACTION Recommend that the City Council direct the City Attorney to prepare and authorize the City Manager and the Clerk of the Council to execute an agreement with Wallace Heli Cunningham, property owner, for the structure located at 1916 North Flower Street. DISCUSSION Request of Applicants The applicant, Wallace Heli Cunningham, property owner, requests the approval of Historic Property Preservation Agreement No. 2006-04 (Mills Act) between the property owner and the City of Santa Ana. Property Description The subject property includes a one-story residence and a detached, single-car garage located at 1916 North Flower Street. The property is within the West Floral Park neighborhood and the surrounding land uses are residential. Analysis of the Issues In March 1999, the City Council approved an ordinance authorizing Historic Property Preservation Agreements (HPPA), commonly known as the Mills Act contracts, for eligible historic properties. The agreement provides monetary incentive to the property owner in the form of a property tax reduction in exchange to the owner's voluntary commitment to maintain the property in a good state of repair and to rehabilitate the property as necessary. Once recorded, the agreement triggers the use of a different valuation method in determining the property's assessed value, thereby resulting in potentially significant property tax savings for the owner. EXHIBIT A 25C-3