TO: ARCHITECTURAL AND PRESERVATION COMMISSION
FROM: BRAD JOHNSON, COMMUNITY DEVELOPMENT DIRECTOR
DATE: NOVEMBER 13, 2025
SUBJECT:
Title
REVIEW OF HISTORICAL PROPERTY (MILLS ACT) AGREEMENT REQUEST #25-MA03 BETWEEN THE CITY AND THE OWNER OF THE PROPERTY LOCATED AT 424 HARRISON AVENUE. APPLICANT AND PROPERTY OWNER(S) - RILEY RICHARDS AND AVALON ALVA-RICHARDS
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SUMMARY
The owners of the property at 424 Harrison 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 property 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. 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 #25-MA03 BETWEEN THE CITY AND THE OWNER OF THE PROPERTY LOCATED AT 424 HARRISON AVENUE - APPLICANT AND PROPERTY OWNER(S): RILEY RICHARDS AND AVALON ALVA-RICHARDS; and
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 staff’s recommendation, the following alternatives have been identified:
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 10, 2025, 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 A), 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 A, 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 $5,825 per year ($58,247 for ten years), and a potential loss to the City in tax revenue of $676 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 properties. 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 its own eligibility criteria, application procedures, and the number of contracts to allow within its 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 Harrison Avenue, near the intersection of Indian Hill Boulevard and Harrison Avenue. It is located in the neighborhood identified in the Claremont General Plan as “Village Residential.” The property has a General Plan Designation of Residential 22 and is zoned Commercial Professional (CP).
Constructed in 1922, the McGaha House, located at 424 Harrison Avenue, is a well-preserved example of California bungalow architecture found in Claremont. The character-defining features of both the exterior and interior of the home were identified through a site visit to the property. The residence is a two-story, California Bungalow-style structure with exterior walls that are composed of wood siding, and the roof is finished with traditional, shingled roofing. The residence at 424 Harrison Avenue retains numerous character-defining features associated with the California Bungalow Style. On the exterior, the home exhibits original multi-pane wood casement windows, a true divided-light front door, and French doors framed by matching multi-light windows. Its form is further defined by a large dormer window, along with gabled and low-pitched rooflines featuring wide eaves and exposed rafter tails. Traditional materials are evident in the river-rock foundation and brick chimney, while the front porch displays a low-pitched shed roof supported by simple square wood piers. The interior reflects a high level of original craftsmanship through its dark-stained woodwork, including windows, doors, staircase, handrail, and trim. Additional notable features include the original fireplace with integrated built-in bookshelves; original living-room paneling, crown molding, and picture rails; decorative window and door casings; original hardware; and five-panel wood interior doors.
The home is in relatively good shape and, with appropriate restoration and repair, can continue conveying its historical appearance and significance.
Proposed Work Plan
The applicant has proposed a sensible work plan that addresses both the home’s exterior and interior. The proposed improvements will rehabilitate some of the home’s character-defining features and bring portions of the home closer to their original historic appearance 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 A), with a summary provided here. Major scope items include foundation stabilization; lead abatement; modernization of electrical, plumbing, and HVAC systems; and restoration of original exterior features, including window repair/re-glazing and wood siding/trim refurbishment. Additional work incorporates roof and chimney repairs, stormwater management upgrades, sewer line replacement, and removal of non-historic wall/window A/C units with associated finish repairs. The project also includes exterior painting, as well as interior plaster and finish work. All work will comply with the Secretary of the Interior’s Standards, the State Historical Building Code, and will be subject to required City design review. The estimated cost of these items will well exceed the anticipated property tax savings over ten years.
Qualifying Criteria and Staff Evaluation
Pursuant to Section 130 of City Council Resolution No. 2012-75, a historical property contract may be approved only if all the following criteria (in italics) are met. Each criteria is followed by staff’s rationale on why it is being 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.
The subject property is privately owned by the applicants (Riley Richards and Avalon Alva-Richards) and is not exempt from property taxation. The subject property is also already listed in the Register of Structures of Historic and Architectural Merit of the City of Claremont. The property’s architectural and historical significance satisfies the Mills Act eligibility requirements.
B. The subject property contributes significantly to the quality, diversity, historical interest, and ambience of the community.
The McGaha House contributes to the quality, diversity, and historical ambience of Claremont. The residence was originally built by the Chaffey family, whom Chaffey College is named after, in 1910 on what is today the Scripps College campus. The home was relocated in 1922 to its current location on Harvard Avenue. The residence was once the residence of Walter P. Taylor, who was a Claremont City Councilman and Vice Mayor in addition to being a professor at Claremont Graduate School. Mr. Taylor and his family lived in this home until 1973, when it was purchased by Michael McGaha, a professor at Pomona College from 1970 to 2007. Together, the legacy of its past tenants and the home’s preservation enrich Claremont’s community identity and historical narrative.
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.
The McGaha House retains a number of significant features that define its historic character. The original river rock foundation, brick chimney, low-pitch shed roof with single wooden square piers, exposed roof rafter tails, and the gabled and low-pitched roof with wide open eaves remain intact. The property’s original wood casement multi-pane windows, front door with true divided light window detailing, crown molding, picture rails, and French doors surrounded by matching windows further preserve its authenticity. The home exhibits a decent 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.
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.
The current owners intend to undertake continued preservation and rehabilitation efforts that focus on maintaining and restoring the foundational integrity of the home and its character-defining elements, including foundation stabilization; lead abatement; modernization of electrical, plumbing, and HVAC systems; and restoration of original exterior features, including window repair/re-glazing and wood siding/trim refurbishment. 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 $240,000, which is $181,753 more than the estimated tax savings of $58,247 that would result from the historical property contract over a 10-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 A. 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 residential.
The subject property is a single-family residential property located in the Commercial Professional (CP) zoning district. The property remains in residential use, consistent with the Mills Act’s residential eligibility criteria.
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 paper copy, please contact Melissa Sanabria at msanabria@claremontca.gov.
Notice of this project was published in the Claremont Courier on October 31, 2025. Copies of this staff report have been sent to the applicant and other interested parties.
Submitted by: Reviewed by:
Brad Johnson Christopher Veirs
Community Development Director City Planner
Prepared by:
Jordan Goose
Assistant Planner
Attachments:
A - Draft Mills Act Contract
B - Draft APC Resolution
C - Estimated Tax Savings Calculation
D - Adopted Procedures for Review and Approval of Historic Property Contracts
E - Photo Survey
F - Improvement Plan
G - Primary Record