To: Honorable Mayor and Members of City Council
From: Molly Rattigan, Community Resources and Development Director
Prepared By: Paul O’Neill, Associate Planner & Laura Solomon, Associate Planner
TITLE:
Title
Preservation of Eight (8) Qualified Historical Properties at 1516 Third Street, 1907 Spencer Street, 1340 F Street, 1031 Vallejo Street, 362 Jefferson Street, 617 Wilson Street, 576 Patchett Street, and 333 Randolph Street
LABEL
RECOMMENDED ACTION:
Recommendation
Approve and authorize the Community Resources and Development Director, on behalf of the City, to execute eight (8) Mills Act Historic Preservation Agreements for the properties located at 1516 Third Street, 1907 Spencer Street, 1340 F Street, 1031 Vallejo Street, 362 Jefferson Street, 617 Wilson Street, 576 Patchett Street, and 333 Randolph Street.
Body
DISCUSSION:
The Mills Act was adopted by the State legislature in 1972 and provides a means for an owner to reduce property taxes on a historic property in exchange for an agreement with a local government entity that the owners maintain the property’s historic character. The purpose is to encourage the renovation and maintenance of historic properties throughout the State by providing a tax incentive to offset some of the cost of preserving and maintaining the historic properties.
This year the Planning Division received eight (8) applications for Mills Act Contracts. Detailed analysis of each Application and Project Site is included in the sections below. In Napa, each application for a Mills Act contract includes a Ten-Year Plan provided by the applicant to describe the applicant’s plans for preserving, maintaining, restoring, and/or rehabilitating the property, as applicable. Each Mills Act contract application is a separate Project and must be considered by the City Council on its own merits, and Council may elect to accept some, all, or none of the pending contract applications. A draft copy of each of the proposed Mills Act Contracts, including each Ten-Year Plan, has been included as an Attachment to this Staff Report along with each Applicant’s Project Description.
Mills Act Contracts require review and approval by the City Council. However, any restoration or reconstruction proposed in conjunction with a Mills Act Contract is subject to the provisions of the City’s Historic Preservation Ordinance and may require review and approval of a Certificate of Appropriateness by City Staff or the Cultural Heritage Commission at the time the work is proposed to be conducted. Approval of a Mills Act Contract does not grantee approval of a Certificate of Appropriateness or any other required permit or entitlement.
To be considered eligible for the subsequent tax year assessment, a contract must be approved and recorded by the Napa County Recorder / County Clerk by the end of the calendar year.
PROJECT DESCRIPTION
The following Section provides a detailed analysis of each Project Site and proposed Ten-Year Plan. A draft of Applicant’s contract is provided for reference in the Attachments of this Staff Report, along with each Applicant’s Project Description.
A. 1516 Third Street
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PROJECT LOCATION: |
1516 Third Street APN: 003-202-008 |
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GENERAL PLAN: |
Downtown Mixed Use |
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ZONING: |
Downtown Mixed Use (DMU) |
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APPLICANT/ PROPERTY OWNER: |
Robbery Brackett 1331 Yosemite Ave San Jose, CA 95126 |
Phone: (408) 529-1925 |
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AUTHORIZED AGENT: |
Todd Lyon 1576 Tobias Dr. San Jose, CA 95118 |
Phone: (408) 472-6744 |
SITE CONTEXT AND HISTORY
1516 Third Street, also known as the Lovejoy Mansion, is located on the north side of Third Street between School Street and Church Street. The property is a large, Stick-Eastlake style Victorian home designated as a Local Landmark on the City’s Historic Resources Inventory (HRI). The property was individually evaluated during the preparation of the 2011 Downtown Napa Historic Context Statement and Survey Report and was determined to be eligible for the National Register. The Site is also within the boundaries of the Downtown Specific Plan which established specific recommendations for the treatment of the Site (pages 140-141 of “Appendix G”). The Site is within the Downtown Mixed Use (DMU) Zoning District and within the Downtown Mixed Use General Plan Designation.
The home is estimated to have been constructed around 1885. Notable features include the home’s applied wood ornament including shingles, stickwork, and spindle work, square two-story bay window topped with a highly ornamented pediment, and a similarly decorated porch and portico. The property has maintained a high level of historic integrity with few modifications visible from the Third Street public right of way.
The property was home to J. H. Lovejoy and his wife Hannah B. Lovejoy from the late 1800s until Hannah’s death in 1929. J. H. Lovejoy was a prominent local businessman and owner of the J. H. Lovejoy Pharmacy once located at the corner of First and Main Street. The couple moved to Napa in 1888, and Hannah’s obituary lists her as “one of Napa’s beloved pioneers.” Later, a small commercial unit was added to the structure, occupying what is now the home’s front yard. This commercial space was removed in 1980, and the original appearance of the house was restored. Also around this time, multiple residential units were constructed within the home. Currently, eight residential units are present within the Landmark.
PROJECT DESCRIPTION AND TEN-YEAR PLAN
The proposed Mills Act Contract is requested to help offset some of the costs of repairs necessary to preserve the Landmark building. Proposed work includes:
• Front Yard Landscaping Improvements
• Front Porch Repairs
• Exterior Repainting
• Driveway Improvements
• Limited Improvements to Residential Units
The Applicant’s full Ten-Year Plan is included within the draft Mills Act Contract, included as Attachment 1 of this Report. The Applicant’s Project Description is included as Attachment 2.
There are clear signs of deferred maintenance across the property making the needed restorations evident. In addition, the Site is in a highly visible Downtown location. Restoration of the property would provide a community-wide benefit.
B. 1907 Spencer Street
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PROJECT LOCATION: |
1907 Spencer Street APN: 002-064-010 |
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GENERAL PLAN: |
Medium Density Residential |
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ZONING: |
Single Family Infill (RI 4) |
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APPLICANT/ PROPERTY OWNER: |
Richard Smith & Elizabeth Schutz 1907 Spencer Street Napa, CA 94559 |
Phone: (925) 998-7708 |
SITE CONTEXT AND HISTORY
1907 Spencer Street is a two-story Queen Anne cottage located along the west side of Spencer Street between E Street and F Street. The property is designated as a Local Landmark on the HRI, with contributing status to the Spencer’s Addition Potential Historic District. The home features many key elements of the Queen Anne style including asymmetrical facades and massing, a steeply pitched roof with multiple intersecting gables, and varied siding types. Significant features of the home include two concave-roofed bay windows, the transom window over the front door, and dentil molding.
The property was originally located along First Street and was moved to the Site in 1988 along with the home next door (1901 Spencer Street), its architectural “twin” with parallel architecture and style. The Spencer’s Addition Historic Context Statement and Survey Report describes the move on pages 67-68. Originally, both homes were one story; a garage and lower level were added to each following their relocation to the Spencer’s Addition neighborhood. Much of the architectural integrity of the home was preserved with these modifications.
PROJECT DESCRIPTION AND TEN-YEAR PLAN
The proposed Mills Act Contract is requested to offset some of the costs of several restoration projects including:
• Replacement of seventeen existing, unoriginal windows
• Reglazing of original windows
• Replacement of the unoriginal entry door
• Dry rot, siding repair and repainting
• Interior door, hardware, and light fixture upgrades
The Applicant’s full Ten-Year Plan is included within the draft Mills Act Contract, included as Attachment 3 of this Report. The Applicant’s Project Description is included as Attachment 4.
In addition to the future projects listed above, the Applicant has completed several restoration projects in recent years including:
• Exterior repainting
• Electrical service upgrades
• Dry rot repair
• Re-roof
• Gutter replacement
A complete list of completed projects can be found in Attachment 4.
C. 1340 F Street
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PROJECT LOCATION: |
1340 F Street APN: 002-065-008 |
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GENERAL PLAN: |
Medium Density Residential |
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ZONING: |
Single Family Infill (RI 5) |
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APPLICANT/ PROPERTY OWNER: |
James McCeney & Rebecca Schenck 1340 F Street Napa, CA 94559 |
Phone: (412) 841-8187 |
SITE CONTEXT AND HISTORY
1340 F Street is located on the north-east corner of Spencer Street and F Street. The property is a Craftsman Bungalow style home designated as a contributing resource on the local HRI within the Spencer’s Addition Potential Historic District. The site is within the Single-Family Infill (RI 5) Zoning District and within the Medium Density Residential General Plan Designation.
The home is estimated to have been constructed in 1915. The distinct architectural style of this single-family residence is reflected in its design features, which include the side-gabled roof with triangle knee braces, dormer windows on the front facade, wood shingle siding, patterned windows, and ornamental wood details. The property has maintained a high level of historic integrity and is in a prominent location visible from both Spencer and F Streets.
According to Napa County Historical Society records, the home was originally designed by Luther Turton as a Bungalow for Mr. and Mrs. H. E. Leonard. In 1926, the front porch was remodeled. During the 1920s-1940s, Mrs. Dee T. Davis, a stepchild of Mr. Leonard, held bible studies for the Baptist Loyal Ladies. On July 5, 1939, funeral services were held for Mr. Leonard, who at the time was the second oldest native son of Napa Valley at the age of 83. In 1958, W. A. Peppers applied for an exclusive franchise to operate bus lines. The property also features a water tower in the rear yard and detached garage along Spencer Street.
PROJECT DESCRIPTION AND TEN-YEAR PLAN
The Mills Act Contract is requested for the purpose of obtaining a property tax reduction to help offset the cost of repairs incurred in efforts to restore and preserve the property located at 1340 F Street, and for ongoing preservation of the buildings. No new work is proposed with this request. Proposed rehabilitation and maintenance activities include:
• Renovation of Kitchen and Master Bedroom per original plan (B2502-0080)
• Exterior Landscaping
• Expansion and Restoration of Pumphouse (Water Tower) to original design
• Roof Replacement
• Bathroom Addition within the expanded footprint of the Pumphouse
• Exterior Painting
• Ongoing maintenance
The full restoration plan is further described in the Project Description and the Ten-Year Rehabilitation Plan, attached as Attachment 5 and Attachment 6, respectively.
In addition to the future projects listed above, the Applicant has completed several restoration projects in recent years including:
• Main House Foundation Replacement and Pumphouse (Water Tower) Foundation (B2410-0089)
• Replacement and Upgrade of Full House Electrical (E2407-0029)
• Refinishing all Interior Floors.
The proposed exterior rehabilitation projects and restoration to historically accurate designs will benefit the surrounding neighborhood and add to the continued stewardship this property within the Spencer’s Addition potential historic district.
D. 1031 Vallejo Street
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PROJECT LOCATION: |
1031 Vallejo Street APN: 003-104-002 |
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GENERAL PLAN: |
Traditional Residential |
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ZONING: |
Traditional Residential Infill (RT 5) |
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APPLICANT/ PROPERTY OWNER: |
Scott Jenson 1031 Vallejo Street Napa, CA 94559 |
Phone: (707) 287-0469 |
SITE CONTEXT AND HISTORY
1031 Vallejo Street is located on the south side of Vallejo Street between Main Street to the east and Brown Street to the west. The property is a Craftsman Bungalow style home listed as a contributing resource on the local HRI within the St. John’s Historic District. The site is within the Traditional Residential Infill (RT) Zoning District and within the Traditional Residential General Plan Designation.
The home is estimated to have been constructed in 1912, according to the St. John’s District DPR form. The distinct architectural style of this single-family residence is reflected in its design features, which include the prominent covered front porch with tapered square wood columns supporting a side-facing low-pitched gable roof, original wood double-hung and casement windows with distinct multi-lite patterns, the decorative wooden front door and original hardware. In the rear of the property, a detached garage features a front-gabled roof and horizontal board siding. The property has maintained a high level of historic integrity and is in a prominent location visible from Vallejo Street.
In the 1910s, Fred and Elaine Nussberger lived here, next door to their family in an Italianate-style home. In the 1920s and 30s, Louis Bertain, a Napa Steam Laundry owner, and his family lived here, hosting lively French Club card parties. By the 1960s, it was home to Nora Donohoe, who hailed from County Kerry, Ireland, and left a legacy of 33 grandchildren. The current owner, a Napa resident since 1959, purchased the house in 2016.
PROJECT DESCRIPTION AND TEN-YEAR PLAN
The Mills Act Contract is requested for the purpose of obtaining a property tax reduction to help offset the cost of repairs incurred in efforts to restore and preserve the property located at 1031 Vallejo Street, and for ongoing preservation of the buildings. No new work is proposed with this request.
Proposed rehabilitation and maintenance activities include:
• Exterior Architectural Preservation of Original Wood Siding
• Window and Door Restoration
• Roof Repairs
• Foundation Stabilization
• Landscape Maintenance
• Fencing and Pathway Maintenance
• Ongoing maintenance
The full restoration plan is further described in the Project Description and the Ten-Year Rehabilitation Plan, attached as Attachment 7 and Attachment 8, respectively. The granting of a Mills Act contract is essential for the long-term stewardship of 1031 Vallejo Street and ensures that all work will be done to the highest preservation standards, safeguarding a piece of Napa's rich residential history and encouraging neighborhood-wide preservation efforts along Vallejo Street.
E. 362 Jefferson Street
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PROJECT LOCATION: |
362 Jefferson Street APN: 005-031-023 |
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GENERAL PLAN: |
Medium Density Residential |
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ZONING: |
Single Family Residential (SFR 5) |
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APPLICANT/ PROPERTY OWNER: |
Andrew Stern and Laura Arias 362 Jefferson Street Napa, CA 94559 |
Phone: (415) 793-1095 |
SITE CONTEXT AND HISTORY
362 Jefferson Street is located on the east side of Jefferson Street between Pine Street to the north and Elm Street to the south. The Early Modern era home is a listed resource on the local HRI and is located between the Napa Abajo-Fuller Park and Fuller South Historic Districts. The site is within the Single Family Residential (SFR 5) Zoning District and within the Medium Density Residential General Plan Designation.
The home is estimated to have been constructed in 1920, according to the Fuller Park DPR form; however, internet listings state that it was built in 1908. While the form does not assign a particular architectural style, the single-story home features distinct Prairie style features, such as a hipped roof with a forward-facing dormer, horizontal board siding, double sashed windows, an inset porch and a raised basement. Other notable features include square-sectioned posts supporting the porch roof and bay windows on both side elevations. In the rear of the property there is also a detached garage and carport. The property has maintained a high level of historic integrity and is in a prominent location visible from Jefferson Street.
The property was home to the Duhig family until Mrs. Frances Duhig passed away in 1936. In 1943, resident Mrs. Leota Hale, received an announcement from the Navy Department that her son, Kenneth Wood, was taken prisoner by the Japanese in World War II. During the 1950s, Mr. and Mrs. Herman Pfluger lived there and celebrated their 50th wedding anniversary in the home. By the 1970s, it was home to Mr. and Mrs. William G. Klebold. The current owner purchased the house in 2025.
PROJECT DESCRIPTION AND TEN-YEAR PLAN
The Mills Act Contract is requested for the purpose of obtaining a property tax reduction to help offset the cost of repairs incurred in efforts to restore and preserve the property located at 362 Jefferson Street, and for ongoing preservation of the buildings. No new work is proposed with this request.
Proposed rehabilitation and maintenance activities include:
• Window and Door Repair
• Roof and Drainage Maintenance
• Exterior Painting
• Foundation Maintenance
• Porch and Stair Repairs
• Plumbing and Electrical Modernization
• Landscape Maintenance
• Ongoing maintenance
The full restoration plan is further described in the Project Description and the Ten-Year Rehabilitation Plan, attached as Attachment 9 and Attachment 10, respectively. Work anticipated during the term of the Mills Act Contract includes repair and preservation that will support the long-term viability of the structure and promote enhancement of the surrounding St. John’s Historic District.
F. 617 Wilson Street
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PROJECT LOCATION: |
617 Wilson Street APN: 005-012-005 |
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GENERAL PLAN: |
Traditional Residential |
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ZONING: |
Traditional Residential Infill (RT 5) |
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APPLICANT & PROPERTY OWNER: |
Paul E. Klein & Elise Tien 617 Wilson Street Napa, CA 94559 |
Phone: (650) 503-0388 |
SITE CONTEXT AND HISTORY
617 Wilson Street is a two-story Queen Anne home located between Oak Street and Palmer Street on the west side of Wilson Street, one block from Fuller Park. The residence is designated as a Listed Resource on the HRI with contributing status to the Napa Abajo Fuller Park National Register District, which is considered a Potential Historic District locally. The home features a steeply sloping hip roof with gable-roof extensions. These gable-ends are heavily ornamented with decorative barge boards that create the appearance of an ogival arch. The home also features decorative cornices, wide architraves, and a porch with Tuscan columns that stretches around the side of the home.
The home was constructed around 1890, when the Queen Anne style was most popular in Napa. The property’s State of California - Department of Parks and Recreation Inventory Form (DPR Form) notes that the property has undergone few modifications since its original construction. The home was originally located at the intersection of Palmer and Wilson and was moved to its current Site around 1905. Around 1915 the home was enlarged at the rear, and the existing front porch was added. Historically, the home was occupied by Wallace Rutherford who served as Napa’s District Attorney and was then home to the Silverado Ballet School for much of the second half of the 20th century.
PROJECT DESCRIPTION AND TEN-YEAR PLAN
The Applicant requests a Mills Act Contract to help offset the costs of repairs and maintenance needed, including:
• Full reroof
• Fence replacement
• Repainting
• Window restoration
• Driveway and paving updates
• Window and porch trim restoration
No additions or modifications are proposed with the Ten-Year Plan. The Applicant’s full Ten-Year Plan is included within the draft Mills Act Contract, included as Attachment 11 of this Report. The Applicant’s Project Description is included as Attachment 12. The Applicant states its objective is to provide stabilization and preservation for the resource.
G. 576 Patchett Street
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PROJECT LOCATION: |
576 Patchett Street APN: 004-154-019 |
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GENERAL PLAN: |
Traditional Residential |
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ZONING: |
Traditional Residential Infill (RT 5) |
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APPLICANT/ PROPERTY OWNER: |
Dallas & Hillary Brennan 576 Patchett Street Napa, CA 94559 |
Phone: (925) 360-7474 |
SITE CONTEXT AND HISTORY
576 Patchett Street is a raised, Craftsman-style cottage two blocks west of Fuller Park. The Site is designated as a Listed Resource on the HRI and is listed as contributing to the West Napa Potential Historic District. Estimated to have been constructed around 1918, the home features a low-slope hip roof with a single, decorative attic-vent dormer at the front façade. A full-width front porch faces Patchett Street. The porch roof is supported by simple Craftsman columns and is accessed by a wide, centered staircase. At the roof eave, a frieze board spans the entire home. This contrasts with the attic vent dormer which includes rafter tails as a decorative element. At the floor level, a second piece of frieze board banding is present highlighting the home’s raised foundation. The entire home is clad in horizontal board siding.
The property was the longtime family home of William A. Vreeland and his wife, who were at one point owners of the Conner Hotel, a residential hotel which was once located at the corner of Main Street and Third Street where Veterans Memorial Park is now located. Vreeland was also the owner and operator of the Orpheus Grill located on the ground floor of the hotel and later worked as a linotype operator for the Napa Valley Register and as a car salesman before dying suddenly in 1938.
PROJECT DESCRIPTION AND TEN-YEAR PLAN
The Applicant requests a Mills Act Contract to help offset some of the cost of stabilization measures needed to preserve the resource and for the construction of an architecturally compatible Accessory Dwelling Unit (ADU) in the rear yard of the Site. Proposed work includes:
• Foundation replacement
• Drainage and seismic updates
• Re-roof, new flashing and gutters
• Removal and replacement of inappropriate windows
• Repainting
• Addition of ADU
The Applicant’s full Ten-Year Plan is included within the draft Mills Act Contract, included as Attachment 13 of this Report. The Applicant’s Project Description is included as Attachment 14.
H. 333 Randolph Street
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PROJECT LOCATION: |
333 Randolph Street APN: 005-062-009 |
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GENERAL PLAN: |
Traditional Residential |
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ZONING: |
Traditional Residential Infill (RT 5) |
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APPLICANT/ PROPERTY OWNER: |
Karen Wesson 333 Randolph Street Napa, CA 94559 |
Phone: (707) 254-5950 |
SITE CONTEXT AND HISTORY
333 Randolph Street, known as the Merrill House, is located on the west side of Randolph Street between Laurel Street to the north and Pine Street to the south. The property is an Italianate style home designated as a Local Landmark on the local HRI within the Napa Abajo/Fuller Park historic district. The property is also listed on page 72 of the National Register of Historic Places for the district. The site is within the Traditional Residential Infill (RT) Zoning District and within the Traditional Residential General Plan Designation.
The home is estimated to have been constructed in 1880. The distinct architectural style of this two-story single-family residence is reflected in its design features, which include the hipped roof, horizontal board siding, and one-over-one windows with curved brackets and a paneled frieze beneath the cornice. In 1903, remodeling occurred adding a two-story bay window and a hipped-roof porch to the front elevation. Other notable features include the porch’s turned posts topped by ornate sawn brackets and a turned balustrade. In the rear of the property, a detached garage features a gabled roof and horizontal board siding. The property has maintained a high level of historic integrity and is in a prominent location visible from both Spencer and F Streets.
The property was constructed by and home to Samuel Baldwin and Sarah Ann Merrell (or Merrill). The home was sold to George W. Lloyd in 1903, which is when the front façade was remodeled. The detached garage earlier served as a barn and outhouse. Following a period of vacancy in the mid-1970s, the residence was rehabilitated, and later owners continued to care for and restore its historic character.
PROJECT DESCRIPTION AND TEN-YEAR PLAN
The Mills Act Contract is requested for the purpose of obtaining a property tax reduction to help offset the cost of repairs incurred in efforts to restore and preserve the property located at 333 Randolph Street, and for ongoing preservation of the buildings. No new work is proposed with this request.
Proposed rehabilitation and maintenance activities include:
• Repair and protective painting of historic exterior woodwork, siding and trim
• Repair and reglazing of historic windows and replacement of inappropriate kitchen windows
• Repair and refinishing of the historic front door, porch woodwork and original fir floors
• Repair of roofing, gutters and downspouts, with replacement where necessary
• Repointing of the brick chimney
• Removal of recessed lighting, repair of affected historic ceiling surfaces and installation of appropriately scaled fixtures
• Repair and installation of perimeter fencing and gates to provide security and protect the historic property
• Protective electrical, water and historic-tree preservation measures
The Applicant’s full Ten-Year Plan is included within the draft Mills Act Contract, included as Attachment 15 of this Report. The Applicant’s Project Description is included as Attachment 16. This agreement will support that ongoing stewardship through a planned program of preservation and rehabilitation. The proposed Ten-Year Rehabilitation Plan includes projects such as exterior woodwork, historic windows, lighting, roofing, and other character-defining features that will protect the house's historic integrity and help ensure that the Merrell House is preserved for future generations.
MILLS ACT OVERVIEW
The Mills Act was adopted by the State legislature in 1972 and provides a means for an owner to reduce property taxes on a historic property in exchange for an agreement with a local government entity that the owners maintain the property’s historic character. The purpose is to encourage the renovation and maintenance of historic properties throughout the State by providing a tax incentive. It is similar to the Williamson Act, which encourages the preservation of agricultural land in return for a lower property tax rate.
The Mills Act enables local governments to enter into a voluntary contract with owners of historic properties. The City is not obliged to enter into a contract even if the properties are eligible. The contract extends for an initial term of ten years. It will automatically renew each year on its anniversary date creating a new ten-year agreement unless the property owner or the City provides a notice of non-renewal, in which case, the contract will terminate at the end of the current ten-year term or the applicable renewal term. In order for a property to be eligible, it must be listed on the National Register of Historic Places, be listed on the California Register of Historic Places, or be listed on a local inventory. All of the subject properties are eligible because all of them are listed on the City’s local Historic Resources Inventory.
For each contract, the property owner must agree to restore (if necessary) and maintain the property in a manner appropriate to its historic character. The local government is responsible for monitoring the property to ensure that the owner performs the agreed-upon restoration and/or maintenance. Many communities use the Secretary of Interior’s Standards for Rehabilitation as their restoration standard. However, each community makes its own determination as to what will be required of property owners.
Should the City determine the property owner has breached the terms of the contract, the City can bring legal action against the owner or simply cancel the contract. If the contract is cancelled for this reason, a penalty of 12.5% of the market value of the property at the time of cancellation is assessed. Although the contract is initially made between the existing property owner and the City, it remains with the property even after it is sold. When the property transfers, it is not reassessed at its new market value, thereby allowing the new property owners to enjoy a pre-existing reduced tax rate. This can contribute to the overall value of the historic property.
CULTURAL HERITAGE COMMISSION REVIEW
The Cultural Heritage Commission reviewed each of the Mills Act Contract requests received this year at their September 10, 2026, meeting. The Commission unanimously recommended that the City Council approve the Mills Act Contracts included in this Staff Report. One Application, a request for a contract for 1423 Seminary Street (PL26-0085), was not recommended for approval. Instead, the Cultural Heritage Commission requested that the Applicant revise their proposed Ten-Year Plan to better define the work proposed for inclusion in the contract and recommended that the Applicant include removal and replacement of inappropriate windows in the Plan. This Application could be included in a future City Council Agenda, pending revision of the Application by the Applicant and recommendation of Approval of a Mills Act Contract by the Cultural Heritage Commission.
FINANCIAL IMPACTS:
The recommended action would result in a reduction in the City’s share of annual tax revenue. The amount of property tax savings varies from year to year, based on expenditures for improvements by the owner. The City’s portion of property tax revenue also varies year to year. Current Tax Assessor information for the City’s active Mills Act Contracts is provided as Attachment 17.
Because the initial term of the contract is ten years and the term is extended automatically each year for an additional year unless a notice of non-renewal is provided by the owner or the City, the reduction would continue for at least ten years. Once a notice of non-renewal is provided by the City or owner, the property tax reduction would cease upon the expiration of the remaining term of the contract.
The Napa County Assessor’s Office has provided tax information on 16 active Mills Act properties for the year 2025; eleven residential properties, four commercial properties, and one hospitality property. Based on information from the Napa County Tax Assessor Office, the total property tax savings for similar residential properties in 2025 is $133,974.18 for an average of $12,179.47.
The City’s portion of the property tax for FY25 is 5.68%. Based on current Tax Assessor data and the City’s property tax rate of 5.68%, the total property tax reduction for the City’s share of residential properties is $7,609.73 for an average of $691.79.
CEQA:
The Community Resources and Development Director has determined that each of the Projects is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301, which exempts minor alterations to an existing structure, and Section 15331, which exempts projects that rehabilitate, restore, preserve and conserve historical resources in a manner consistent with the Secretary of Interior’s Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring and Reconstructing Historic Buildings.
DOCUMENTS ATTACHED:
ATCH 1 - Mills Act Contract - 1516 Third Street
ATCH 2 - Project Description - 1516 Third Street
ATCH 3 - Mills Act Contract - 1907 Spencer Street
ATCH 4 - Project Description - 1907 Spencer Street
ATCH 5 - Mills Act Contract - 1340 F Street
ATCH 6 - Project Description - 1340 F Street
ATCH 7 - Mills Act Contract - 1031 Vallejo Street
ATCH 8 - Project Description - 1031 Vallejo Street
ATCH 9 - Mills Act Contract - 362 Jefferson Street
ATCH 10 - Project Description - 362 Jefferson Street
ATCH 11 - Mills Act Contract - 617 Wilson Street
ATCH 12 - Project Description - 617 Wilson Street
ATCH 13 - Mills Act Contract - 576 Patchett Street
ATCH 14 - Project Description - 576 Patchett Street
ATCH 15 - Mills Act Contract - 333 Randolph Street
ATCH 16 - Project Description - 333 Randolph Street
ATCH 17 - Tax Assessor Information
NOTIFICATION:
Notice of the scheduled public hearing was provided on September 25, 2026, by US Postal Service to all property owners within a 500-foot radius of the subject property. Notice of the public hearing was also published in the Napa Valley Register on September 24, 2026, and provided to people previously requesting notice on the matter at the same time notice was provided to the newspaper for publication.