TO: ADAM PIRRIE, CITY MANAGER
FROM: BRAD JOHNSON, COMMUNITY DEVELOPMENT DIRECTOR
DATE: DECEMBER 9, 2025
Reviewed by:
City Manager: AP
SUBJECT:
Title
HISTORICAL PROPERTY (MILLS ACT) AGREEMENT #25-MA05, BETWEEN THE CITY AND NICKOLAS SIFUENTES AND SCOTT SHAW, PROPERTY OWNERS OF 1230 HARVARD AVENUE
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SUMMARY
The owners of the property at 1230 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 tax reduction, which helps finance the necessary repairs and renovations for the property. On October 29, 2025, the Architectural & Preservation Commission reviewed the proposed agreement and voted unanimously to recommend approval of the subject Mills Act request. The City Council is the decision-making body for Mills Act requests and is asked to take final action on the agreement at this meeting.
RECOMMENDATION
Recommended Action
Staff recommends the City Council:
A. Approve and authorize the City Manager to execute the Historical Property (Mills Act) Agreement between the City of Claremont and Nickolas Sifuentes and Scott Shaw, property owners of 1230 Harvard Avenue; and
B. Find this item is exempt from review under the California Environmental Quality Act (CEQA).
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ALTERNATIVES TO RECOMMENDATION
In addition to staff recommendation, there are the following alternatives:
A. Continue the discussion and request additional information.
B. Make revisions to the proposed Mills Act Agreement and approve the agreement as revised.
C. Deny Mills Act Agreement #25-MA05.
FINANCIAL REVIEW
The costs associated with reviewing this application have been borne by the applicant.
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 B, 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 B) 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 $11,274 per year ($112,740 for ten years), and a potential loss to the City in tax revenue of $1,308 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.
ANALYSIS
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 C (City Council Resolution 2012-75).
Property Description
The subject property, located at 1230 Harvard Avenue, is located on the east side of North Harvard Avenue, on the block situated between Foothill Boulevard and West 12th Street. The property has a General Plan Designation of Residential 6 and is zoned Historic Claremont - 7,500 (HC 7,500).
Constructed in 1926, the residence is a well-preserved example of Spanish Colonial Revival architecture found in Claremont, which was a popular style built from 1915 to 1940.
The character defining features of both the exterior and interior of the home were identified through a site visit to the property. The primary residence is a two-story, Spanish Colonial Revival structure with a rectilinear exterior form and floor plan. Its exterior walls are composed of white textured stucco and two-piece clay tile roofing. Defining features of the exterior include arched windows and a combination of roof styles, including a shed roof over the front porch, gable roof, and flat roof featuring a balcony. The interior of the home features a coved ceiling in the dining room, original fireplace, a large arched window in the living room, and period appropriate hardware such as doorknobs, hinges, and front door handles. A detached garage, which was converted into an accessory dwelling unit in 2019, also features textured white stucco, two-piece clay tiles, a combination shed and flat roof, and decorative rafter tails which complement the main structure.
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 applicants have proposed a sensible work plan that addresses both the home’s exterior and interior and will rehabilitate some of the home’s character-defining features while also enhancing the structural integrity of the property and bringing portions of the house closer to the original historic appearance. A detailed summary of the proposed improvements is included in the Draft Mills Act Contract (Attachment A), with a summary provided here. With approval of a Mills Act Contract, the applicant would complete an earthquake retrofit and foundation repair. Electrical wiring will be repaired in the crawl space and kitchen walls, and knob and tube wiring will be replaced in the ceilings. Broken roof tiles will be replaced, and the primary home stucco will be redone and painted to protect from moisture intrusion. All windows will be restored, and cast-iron plumbing will be replaced with new materials. Other work includes flooring, landscaping, and restoration of the fireplace. The cost of the proposed work items would well exceed the 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 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.
The subject property is privately owned by the applicants (Nickolas Sifuentes and Scott Shaw) and is not exempt from property taxation. The subject property is also simultaneously being reviewed to be listed in the Register of Structures of Historic and Architectural Merit of the City of Claremont. Should the Architectural and Preservation Commission recommend approval for the Register Listing application, it will be taken to the City Council for approval along with a recommendation by the Architectural and Preservation Commission to award a Mill’s Act contract to the property owners for 1230 Harvard Avenue. The property is eligible for listing in the Claremont Register of Historic Resources as a fine example of Spanish Colonial Revival architecture. It embodies distinctive characteristics of Spanish craftsmanship and retains a high degree of historical integrity. 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 existing residence contributes significantly to the quality, diversity, and historical ambience of Claremont. Constructed in 1926, the residence represents a great example of Spanish Revival architecture, especially given its location on Harvard Avenue within the Historic Claremont neighborhood.
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 significant character-defining features of the subject property have been largely preserved, although some repairs and restoration are needed to extend the home's lifespan. The more significant proposed work, such as foundation repairs, seismic retrofitting, electrical repairs, plumbing, and HVAC work, will enhance the livability of the residence and significantly reduce potential future damage. Furthermore, proposed work such as window restoration, roofing, exterior re-stucco, and landscaping will further preserve the functionality and architecturally contributing features that define the property. 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 E.
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.
All proposed improvements by the applicant are related to either the preservation and/or rehabilitation of character-defining elements, or the structural and historical integrity of the property, and the improved livability of the home. The estimated cost of these improvements exceeds the expected property tax savings. The details of the planned improvements are listed in Attachment D.
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 ambience 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 and restore some of its key historic features.
Based on estimates provided by the applicant, the total cost of the proposed scope of work is approximately $164,925, which is 146% higher than the estimated savings of $112,740 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 D. Additionally, based on the proposed scope of work, the applicant 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 HC 7,500 zoning district. The property remains in residential use, consistent with the Mills Act’s residential eligibility criteria.
COMMISSION REVIEW
The Architectural & Preservation Commission reviewed and voted unanimously to recommend approval of the agreement on October 29, 2025. The Commission’s resolution is included as Attachment F.
LEGAL REVIEW
The City Attorney has reviewed and approved the proposed Historical Property Agreement.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds it related to the following: General Plan, 2024-26 Budget, and Sustainability Plan.
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 the City Clerk’s office.
Submitted by: Reviewed by:
Brad Johnson Christopher Veirs
Community Development Director City Planner
Prepared by:
Daniel Kim
Assistant Planner
Attachments:
A - Draft Mills Act Contract
B - Estimated Tax Savings Calculations
C - City Council Resolution No. 2012-75
D - Schedule of Improvements
E - Photo Survey
F - Architectural & Preservation Commission Resolution No. 2025-17