Coronado Mills Act Information

The mills act was passed in 1971 and is implemented on a local level. In regard to the city of Coronado, the Mills Act can and has allowed homeowners to better manage their real estate investment. The mills act however is not for everyone. It offers the greatest benefit to historical homes which do not require significant improvements to meet the living standards of today's homeowners.

In Coronado, the only eligible properties are those resources listed on the local Historic Resource Inventory and those properties located in Residential Zones pursuant to Resolution 7736.

Some of the conditions in applying for the Mills Act are listed below:

  • The term of the contract shall be for a minimum period of ten (10) years. On the anniversary date of the agreement, a year shall be added automatically to the initial term of the agreement unless a Notice of Nonrenewal is given as provided in the Government Code. If a Notice of Non-Renewal is filed, the Agreement will become null and void upon expiration of the ten- year term in effect at the time the Notice was filed.
  • Preservation of the designated resource is required throughout the term of the Agreement, and when necessary, restoration and rehabilitation to the property, as necessary to conform to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation.
  • Periodic examinations of the property may be required by the assessor, the State Department of Parks and Recreation, and the State Board of Equalization as necessary to determine the owner's compliance with the Agreement.
  • Approval Runs with the Land: The approval of a Mills Act Agreement shall run with the land, and shall continue to be valid upon a change of ownership of the site to which it applies.
  • Notice of Non-Renewal: Either party to a Mills Act Agreement may file a notice of non- renewal at any time after entering into the Agreement. The effect of the Notice of Non-Renewal is that the Agreement will become null and void upon expiration of the ten-year term in effect at the time the Notice is filed.
  • The City Council may cancel a Mills Act Agreement if it determines that the property owner has breached any of the terms of the Agreement, or has allowed the property to deteriorate to the point that it no longer meets the standards to be a Designated Historic Resource as specified in Section 70.20.030 of the Municipal Code
  • No Mills Act Agreement shall be canceled until after the City Council has given notice of the public hearing and notice to the last known address of the property owner(s).
  • If the City Council cancels an Agreement, the property owner shall pay a penalty of 12 percent of the full value of the property, as determined by the County Tax Assessor. The cancellation fee shall be paid to the State Controller or County Assessor as specified in State law.

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