TO: HONORABLE CHAIR AND MEMBERS OF THE PLANNING
COMMISSION
FROM: Scott Agajanian, Deputy City Manager
PREPARED BY: Martha Coleman, Management Analyst
SUBJECT:
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Consideration of Cultural Resource Designation for Murrieta Hot Springs Resort and Associated Mills Act Contract
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RECOMMENDATION
recommendation
Staff recommend that the Planning Commission:
1. Conduct a public hearing and receive public testimony regarding the proposed designation of the Murrieta Hot Springs Resort as a local cultural resource; and
2. Review and consider the proposed designation of the Murrieta Hot Springs Resort as a local cultural resource pursuant to Chapter 16.26 of the Murrieta Development Code (MDC);
3. Recommend that the City Council approve the designation of the Murrieta Hot Springs Resort as a local cultural resource, thereby establishing the property's eligibility for consideration of a Mills Act Contract pursuant to Section 16.26.120(B) of the MDC, and,
4. Recommend to the City Council that they find that the Project is exempt from the California Environmental Quality Act (CEQA), as stated in the Notice of Exemption that can be found in Attachment 8.
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PRIOR ACTION/VOTE
On November 17, 2015, the City Council adopted Ordinance No. 505-15, repealing Chapter 2.36 of the Murrieta Municipal Code and transferring the duties of the Historic Preservation Ad Hoc Committee to the Planning Commission. These duties include making recommendations to the City Council on the designation of cultural resources, such as individual properties, archaeological districts, and historic preservation districts.
EXECUTIVE SUMMARY
The City is considering designating the Murrieta Hot Springs Resort as a local cultural resource and entering into a related Mills Act Contract to support the preservation and rehabilitation of the historic resource.
Pursuant to Chapter 16.26 of the MDC and the responsibilities assigned to the Planning Commission under Ordinance No. 505-15, the Planning Commission reviews matters related to cultural resources and makes recommendations to the City Council regarding cultural resource designations. Ordinance No. 505-15 specifically identifies the recommendation of individual properties for cultural resource designation as a responsibility of the Planning Commission.
In conjunction with the proposed designation, a Mills Act Contract is also proposed for the property. Pursuant to Section 16.26.120(B) of the MDC, Mills Act contracts providing property tax relief are available to owners of locally designated cultural resources, contributing resources, and properties listed on the California Register of Historical Resources or National Register of Historic Places. The contract is intended to provide an incentive for the continued preservation and rehabilitation of qualifying historic resources.
Because the cultural resource designation and Mills Act Contract are being processed contemporaneously, the required public hearing and noticing process is being utilized for the City's consideration of both proposed actions. Following the Planning Commission's consideration and recommendation, the cultural resource designation and proposed Mills Act Contract will be forwarded to the City Council for final consideration.
BACKGROUND
The City is considering the designation of the Murrieta Hot Springs Resort as a local cultural resource pursuant to Chapter 16.26 of the Murrieta Development Code (MDC). The proposed designation would formally recognize the property’s historic significance and establish its eligibility for participation in the City’s Mills Act Program.
The Mills Act is a State-sponsored historic preservation incentive program enacted in 1972 and implemented pursuant to California Government Code Sections 50280-50290 and Revenue and Taxation Code Sections 439-439.4. The program authorizes local governments to enter into contracts with owners of qualified historic properties who commit to the ongoing rehabilitation, restoration, preservation, and maintenance of their historic resources.
Under Section 16.26.120(B) of the MDC, Mills Act contracts are available to owners of qualifying locally designated cultural resources. Accordingly, designation of the Murrieta Hot Springs Resort as a local cultural resource must occur before a Mills Act Contract can be approved. The City’s Mills Act Program expressly provides that a property that has not yet been designated may apply, but designation must be completed before approval of the Mills Act Contract.
Following the Planning Commission’s consideration and recommendation, the cultural resource designation will be forwarded to the City Council for final consideration. The Mills Act Contract will also be presented to the City Council pursuant to the City’s established Mills Act procedures.
The Mills Act is a California economic incentive program that encourages the restoration and preservation of qualified historic properties. Under the program, owners of qualifying properties enter into a minimum ten-year contract requiring continued rehabilitation, restoration, preservation, and maintenance of the historic resource. In exchange for these commitments, participating properties may qualify for an alternative property tax assessment.
The Mills Act is established under State law; however, individual Mills Act contracts are entered into between participating property owners and the local government. Murrieta’s Mills Act Program provides that applications are reviewed by City staff and the City Attorney and referred to the City Council for consideration. The City Council considers the proposed contract at a public hearing and may approve, approve with conditions, or deny the contract.
Once a contract is approved and recorded the Riverside County Assessor determines the property’s assessed value using the methods and figures established by the State of California. The resulting tax benefit is therefore not determined or guaranteed by the City. The City’s application specifically notes that the ultimate tax assessment depends on calculations and variables administered through the County Assessor and State-established methodology.
For the Murrieta Hot Springs Resort, the cultural resource designation and Mills Act application are being processed contemporaneously. However, designation as a qualifying historic resource must be completed before the Mills Act Contract can be approved.
ENVIRONMENTAL
The project is exempt under CEQA Guidelines Section 15331-Historic Resource Restoration/Rehabilitation. The City of Murrieta conducted an environmental review for the designation, which determined that the proposed Project is exempt from CEQA pursuant to CEQA Guidelines Section 15331 since the Project is to facilitate a contract to allow the designation to be limited in scope to the maintenance, repair, stabilization, rehabilitation, restoration, preservation, conservation or reconstruction of historical resources in a manner consistent with the Secretary of the Interior Standards for the Treatment of Historic Properties. Furthermore, the City has determined that none of the applicable exceptions to categorical exemptions set forth in CEQA Guidelines Section 15300.2 apply to the Project. The Project qualifies for the Class 31 categorical exemption pursuant to CEQA Guidelines Section 15331 because the activities authorized under the designation and associated agreement are limited to the contractual treatment and preservation of a historical resource, consistent with applicable historical standards.
ATTACHMENTS
1. Public Hearing Notice - Cultural Resource Designation and Mills Act Contract (Murrieta Hot Springs Resort)
2. Ordinance No. 505-15
3. Proposed Mills Act Contract
4. Mills Act Contract Form Template
5. Murrieta Hot Springs Resort Site Plan
6. Murrieta Hot Springs Resort Grand Deed
7. Cultural Resource Designation Supporting Documentation
8. Notice of Exemption