TO: ARCHITECTURAL AND PRESERVATION COMMISSION
FROM: DAVID CRABTREE, INTERIM COMMUNITY DEVELOPMENTY DIRECTOR
DATE: NOVEMBER 9, 2026
SUBJECT:
Title
REVIEW OF HISTORICAL PROPERTY (MILLS ACT) AGREEMENT REQUEST #26-MA02 BETWEEN THE CITY AND THE OWNER OF THE PROPERTY LOCATED AT 743 HARVARD AVENUE - APPLICANT AND PROPERTY OWNER(S): MOLLY JUNG AND KEVIN PHAN
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SUMMARY
The owners of the property at 743 Harvard Avenue have submitted a request to enter into a Historic Property (Mills Act) Agreement with the City. The Mills Act is a preservation tool enacted by the state legislature to ensure the long-term preservation of eligible historic properties and other significant site features of such properties. In return, property owners receive a reduction in taxes; which, in turn, helps finance needed repairs and renovations for the property. The Architectural and Preservation Commission is the recommending body for Mills Act requests. The Architectural and Preservation Commission recommendation is then forwarded to the City Council for final action on the agreement. Staff has reviewed the application and finds that each of the required criteria for entering into a Mills Act agreement, as established by the City Council, can be met.
RECOMMENDATION
Recommended Action
Staff recommends the Architectural and Preservation Commission:
A. A. Adopt A RESOLUTION OF THE ARCHITECTURAL AND PRESERVATION COMMISSION OF THE CITY OF CLAREMONT, CALIFORNIA, RECOMMENDING CITY COUNCIL APPROVAL OF HISTORICAL PROPERTY (MILLS ACT) AGREEMENT #26-MA02 BETWEEN THE CITY AND THE OWNER OF THE PROPERTY LOCATED AT 743 HARVARD AVENUE - APPLICANT AND PROPERTY OWNERS(S): MOLLY JUNG AND KEVIN PHAN; and
B. B. Find this item is exempt from environmental review under the California Environmental Quality Act (CEQA).
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ALTERNATIVES TO RECOMMENDATION
In addition to the recommendation, there are the following alternatives:
A. Continue the discussion and request additional information.
B. Express the intent to recommend denial of the Mills Act contract, specifically identifying the criteria that cannot be met, and continue the item to December 9, 2026, for adoption of the denial recommendation resolution.
FINANCIAL REVIEW
The costs associated with the review of this application have been borne by the applicant.
ANALYSIS
Upon approval of a Mills Act historical property contract (Attachment B), the value of the subject property is reassessed based on a formula that considers the rental income that could be expected from the property, the Federal home loan interest rate, a historic property risk component, and an amortization component to result in a special Mills Act capitalization rate. The total tax savings for the property owners is determined by using the formula outlined in Attachment C, which also estimates the anticipated tax savings for the property owners/applicants. With approval of a Mills Act contract, the value of property tax savings must be put towards the scope of work, identified in Attachment B, to preserve or rehabilitate the historic character-defining elements of the property and ensure its ongoing historical and structural integrity. Approval of a Mills Act contract will also result in a minor loss of tax revenue to the City. This loss represents the City’s contribution to ensuring the property’s preservation for the benefit of the community.
Staff has prepared estimates of the anticipated tax savings (Attachment C) for the owner and the loss in tax revenue to the City if the Mills Act agreement is approved. The calculations estimate a potential tax savings to the owners of $9,543 per year ($95,434.19 for ten years), and a potential loss to the City in tax revenue of $1,107 per year. In addition to the loss of revenue to the City, the contract will also result in a loss of tax revenue to the other local, regional, state agencies, and districts that receive a portion of property taxes paid.
Background
What is the Mills Act?
The Mills Act is a preservation tool created by the California state legislature in 1972 to encourage the preservation and restoration of historic properties. The act enables cities to enter into historical property agreements with owners of qualifying properties to reduce owners’ property taxes in order to incentivize investment in their historic property. While resulting in some lost tax revenue, the agreements provide benefits to cities in that they ensure preservation, high-quality rehabilitation, and maintenance of historic properties that represent important cultural resources.
As provided for by State law, the Mills Act is administered and implemented by local governments. Mills Act contracts are executed between the property owner and the local government granting the tax reduction. Cities have considerable discretion in evaluating Mills Act requests and are not mandated to approve historical property agreements. Each local government establishes their own eligibility criteria, application procedures, and the number of contracts to allow within their jurisdiction. The California Office of Historic Preservation (OHP) does not participate in the contract negotiations, is not a signatory to the contract, and has no authority over the administration of the Mills Act program.
City’s Mills Act Program
In October 2000, the City Council approved procedures and review criteria for agreements for properties in Claremont. Initially, the program was restricted to historic properties suffering severe deterioration and in danger of near-term demolition or eventual demolition due to long term neglect. In January 2009, the City Council revised the review criteria to include all residential properties listed in the City’s Register of Structures of Historic and Architectural Merit of the City of Claremont (Register). In addition, the Council limited the maximum number of Mills Act contracts that can be approved to six per year.
On October 9, 2012, the City Council amended the program once more to provide clarification to one of the review criteria, and to establish an annual compliance review fee. These newly revised criteria and procedures are included as Attachment D (City Council Resolution 2012-75).
Property Description
The subject property is located on the south side of West Eighth Street, at the corner of West Eighth Street and Harvard Avenue. It is located in the neighborhood identified in the Claremont General Plan as “Historic Claremont”, which is the oldest residential area in the City. The property has a General Plan Designation of Residential 6 and is zoned Historical Claremont District - HC 7,500.
The property at 743 Harvard Avenue is a historically significant residence in the Old Claremont neighborhood and an intact example of early twentieth-century Craftsman-style residential development in the City. Constructed in 1911, the home is associated with several notable Claremont residents, beginning with Edwin J. and Etta M. Whitney, who purchased the property in 1905 and occupied the residence upon its completion. The Whitneys were pioneers of Catalina Island, where they were involved in its early development alongside their brother-in-law, George Shatto, and Etta is credited with naming the City of Avalon. Their son, Walter T. Whitney, later became a professor of astronomy at Pomona College and took over the Brackett Observatory. In 1919, the property was sold to the Bell family, and by approximately 1922, it became the residence of Lincoln C. Bell, a prominent member of the Claremont community. Bell managed the El Camino Packing House, served on the Claremont Board of Trade, owned a local ranch, and served as Mayor of Claremont from 1922 to 1928. The property's association with these individuals reflects its significance to Claremont's early residential, civic, and educational history.
The property's character is defined by its distinctive Craftsman architectural style and high level of historic integrity including a number of character-defining features. Specifically, character-defining features include its two-story massing with a shed-style dormer, gabled roof, wood clapboard and shingle siding, and prominent front porch with decorative pillars, a centered tapered beam, and exposed rafter tails. Additional Craftsman details include decorative angled roof braces, corbels, a wood Juliet balcony, and simple hung wood windows with wide wood trim. Bay windows located along the north, east, and south elevations further contribute to the home's architectural character, while a large historic oak tree in the backyard adds to the property's historic setting, which contributes to the home's overall Craftsman architectural character. The residence contains approximately 3,113 square feet with four bedrooms and two bathrooms. An existing detached guest house also remains on site. Together, these features convey the property's architectural significance and contribute to its historic character, making their continued preservation an important component of the proposed Mills Act contract.
Overall, the property continues to convey its historic design, setting, and association with early Claremont development. The home is in relatively good shape and, with appropriate restoration and repair, can continue conveying its historical appearance and significance.
Character-Defining Features
The following features appear to convey the historic architectural character and significance of the residence at 743 Harvard Avenue as a circa 1911 Craftsman home associated with former mayor, local rancher, and Packing House manager, Lincoln C. Bell.
Exterior Features:
• Two-story Craftsman-style massing with shed-style dormer
• Front porch with decorative pillars and a large centered and tapered beam with exposed rafter tails
• Wood clapboard and shingle siding
• Gabled roof configuration with exposed rafter tails supported by decorative angled braces
• Decorative wood Juliet balcony
• Decorative corbels and exposed rafter tails
• Simple hung wood windows with wide wood trim and Craftsman detailing
• Bay windows on north, east, and south sides of residence
• Large historic oak tree in the backyard
Proposed Work Plan
The applicant and property owner has proposed a sensible work plan that addresses both the home’s exterior and interior and will preserve and rehabilitate some of the home’s character-defining features while also enhancing the structural integrity of the property. A detailed summary of the proposed improvements is included in the Draft Mills Act Contract (Attachment B) with a summary provided here.
With approval of a Mills Act Contract, the applicant proposes a comprehensive program of preservation and rehabilitation improvements to maintain the long-term structural integrity and historic character of the residence. Most significantly, the applicant proposes to replace an existing river rock foundation with a full seismic structural retrofitting, that includes a river rock veneer to retain the historic character while also protecting the home from potential catastrophic damage during an earthquake. Additional preservation work includes rehabilitation of the original windows by repairing and replacing the sash as needed and lubricating window jambs, HVAC system modernization for safety and climate control, comprehensive termite treatment, roof repair and replacement, and modernization of the electrical system by undergrounding wires and adding modern circuit breakers. Collectively, these improvements are intended to protect the property's historic character, improve building performance, and ensure the continued preservation of the resource in accordance with the objectives of the Mills Act Program.
These items would well exceed the cost of property tax savings over ten years.
Qualifying Criteria
Pursuant to Section 130 of City Council Resolution No. 2012-75, a historical property contract may be approved only if all the following criteria are met:
A. The subject property meets the eligibility requirements for a Mills Act contract pursuant to California Government Code Section 50280.1 in that it is a privately owned property which is not exempt from property taxation, and is listed on the National Register of Historic Places, located in a National Register or local historic district, listed in a state or county official register of historic or architecturally significant sites, places or landmarks, or listed in the Register of Structures of Historic and Architectural Merit of the City of Claremont.
B. The subject property contributes significantly to the quality, diversity, historical interest, and ambience of the community.
C. Significant features that defined the historical character of the subject property, and its buildings have not been destroyed or can be restored based on documentary, physical, or pictorial evidence.
D. The owner of the subject property proposes to make improvements that are related to preservation and/or rehabilitation of character-defining elements and/or historical and structural integrity of the property. Additionally, the cost of such improvements must be equal to or greater than the expected property tax savings for the first ten years, which needs to be distributed into two five-year periods.
E. The subject property is residential.
Staff Evaluation
Staff finds that the subject property meets each of these criteria as follows:
A. The subject property is privately owned by the applicants (Molly Jung and Kevin Phan) and is not exempt from property taxation. The property is recognized as a historically significant resource due to its association with Claremont’s early twentieth-century residential development and its documented architectural and historical significance. The residence is associated with several notable individuals, including Edwin J. and Etta M. Whitney, early pioneers of Catalina Island, and their son, Walter T. Whitney, a professor of astronomy at Pomona College who later took over the Brackett Observatory. Additionally, former owner Lincoln C. Bell was a prominent local civic leader who contributed to Claremont’s ranching and agricultural history, serving as manager of the El Camino Packing House, a member of the Claremont Board of Trade, and Mayor of Claremont from 1922 to 1928. The property's architectural significance and association with these individuals support its eligibility for participation in the Mills Act Program.
B. The residence is an important contributor to the historic character of Claremont's Historic Claremont neighborhood and is a highly intact example of Craftsman residential architecture. Constructed in 1911, the home is significant for its architectural integrity and its association with several individuals who contributed to Claremont's civic, educational, and community history. Edwin J. and Etta M. Whitney occupied the residence beginning in 1911, following their involvement in the early development of Catalina Island, while their son, Walter T. Whitney, went on to establish a distinguished career in astronomy at Pomona College. The property is also associated with Lincoln C. Bell, who resided at the home beginning around 1922 and was recognized for his contributions as a local rancher, Packing House manager, community leader, and Mayor of Claremont.
Through its architectural distinction, historical associations, and prominent location, the property contributes significantly to the City's architectural heritage and community character.
C. Character-defining features include its two-story massing with a shed-style dormer, gabled roof, wood clapboard and shingle siding, and prominent front porch with decorative pillars, a centered tapered beam, and exposed rafter tails. Additional Craftsman details include decorative angled roof braces, corbels, a wood Juliet balcony, and simple hung wood windows with wide wood trim. Bay windows located along the north, east, and south elevations further contribute to the home's architectural character, while a large historic oak tree in the backyard adds to the property's historic setting. Together, these features contribute to the residence’s architectural character and historical significance while remaining substantially intact. These features continue to define the property's historic character and will be preserved through the proposed rehabilitation program. Ultimately, the home exhibits a high level of integrity in design, materials, workmanship, and setting-ensuring that its historic character has not been lost and, where necessary, can be restored using documentary and physical evidence such as that found in Attachment G and Attachment H.
D. The current owners intend to undertake continued preservation and rehabilitation efforts that focus on maintaining and restoring character-defining elements. Planned work includes rehabilitation of the original windows by repairing and replacing the sash as needed and lubricating window jambs, HVAC system modernization for safety and climate control, comprehensive termite treatment, river rock foundation rehabilitation and seismic structural retrofitting, roof repair and replacement, and modernization of the electrical system by undergrounding wires and adding modern circuit breakers.
In completing the proposed work items with the benefit of a historical property contract, the property’s ability to continue contributing to the historical interest and ambiance of the Claremont community will be enhanced. The applicant has proposed a sensible work plan that would help ensure the home’s long-term livability, restore some of its key historic features, and maintain its original historic character.
These repairs and installations would enhance the building’s lifespan and update the home without damaging the character-defining features, making it more usable for the property owner and future residents. Based on estimates provided by the applicant, the total cost of the proposed scope of work is approximately $227,499 which is $132,065 more than the estimated tax savings of $95,434 that would result from the historical property contract over a ten-year period. With the signing of the historical property contract, the applicant would be required to invest the avoided property tax into the work outlined in Attachment B. Additionally, based on the proposed scope of work, the applicants would be contributing more of their own funds into the proposed work than they would be saving through their reduced property taxes.
E. The subject property is a single-family residential property located in the HC 7,500 zoning district. The property remains in residential use, consistent with the Mills Act’s residential eligibility criteria.
Planning Staff and the Director of Claremont Heritage have each inspected the house and property and had discussions with the owners regarding the planned improvements to the property. The current owners have recently purchased the home and are eager to maintain and restore the historic character-defining features of the home.
CEQA REVIEW
The proposed scheduled improvements within the contract are categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15331 in that these improvements are for the restoration and rehabilitation of a historical resource, will be conducted in a manner consistent with the Secretary of the Interior’s Standards of the Office of Historic Preservation of the Department of Parks and Recreation, United States Secretary of the Interior’s Guidelines for Rehabilitation of Historic Properties, and the State Historical Building Code and will be subject to applicable City permitting requirements. Therefore, no further environmental review is necessary.
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Notice of this project was published in the Claremont Courier on October 30, 2026. Copies of this staff report have been sent to the applicant and other interested parties.
Submitted by: Prepared by:
David Crabtree Jordan Goose
Interim Community Development Director Associate Planner
Attachments:
A - Draft APC Resolution
B - Draft Mills Act Contract
C - Estimated Tax Savings Calculation
D - Adopted Procedures for Review and Approval of Historic Property Contracts
E - Photo Survey of the Subject Property
F - Schedule of Improvements
G - Historic Primary Record
H - Other Historic Documentation