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HomeMy WebLinkAboutSaratoga News article -Mills ActPhotograph by George Sakkestad Phylis Ballingall, chairwoman of the Saratoga Heritage Preservation Commission, evaluates the salt box house on Big Basin Way, built in 1875, to determine its historical elements. Property owners may be eligible to participate in the Mills Act, which would give owners of historical buildings a tax break. Owners of historic homes get a tax break Council sees the importance of preserving city's history By MY NGo esidents and merchants who own his- torical buildings in Saratoga may soon be eligible to participate in state -spon- sored legislation that would give them a sig- nificant tax break. At a city council meeting held on March 5, Mayor Nick Streit and council members Nor- man Kline, Kathleen King and Stan Bogosian voted unanimously to adopt the Mills Act Property Tax Abatement Program, which gives local governments the right to establish case -by -case contracts with owners of histor- ical structures listed in the heritage resources inventory. These contracts would require vol- unteering applicants to maintain and preserve their property according to specific guidelines in exchange for a reduced property tax rate. Barry Rodenberg, owner of the original Hyde Farmhouse on Walbrook Drive, which was built in 1895, said he pays approximate- ly $13,000 a year in taxes for his property and is looking forward to tax relief. He said that the program is an effective incentive to encourage owners of historical properties to keep their buildings properly maintained, which can be costly. "Older homes need a lot of upkeep and repair," said Rodenberg. "The act forces homeowners to take care of their property." Under the act, property owners must adhere to restrictive guidelines. For example, owners cannot repaint the exterior of the building a different color or build on the existing structure. In addition, Rodenberg said that one of the reasons he is an advocate of restoring older homes is that they add to the city's appeal. "Homes today don't have much style," he said, "whereas older homes give the neigh- borhood a certain character." According to Kline, older homes add value and flavor to the community. "We need to keep historic homes historic," said Kline. Heritage Preservation Commissioner Nor- man Koepernik emphasized the importance of preserving Saratoga's historical landmarks and compared them to famous pieces of archi- tecture found in foreign countries like Italy. He said that just as tourists visit historical structures in foreign places, visitors to Sarato- ga can also have something to admire and appreciate. "The city has a wonderful history, and we should gravitate back to tradition," he said. "If we don't preserve these old houses, we'll wipe out Saratoga's history." Although all members at the meeting said that they saw promise in the plan, council members said they had some reservations about the number of applicants to accept per year and the monitoring process. Under the act, which was enacted in 1972, the city would lose approximately 60 percent from what it would usually collect in property tax on a historic building. For example, the city receives approximately $1,750 on a $5,000,000 home and $350 on a property worth $1,000,000, whereas the Mills Act would reduce these numbers to $1,050 and $210, respectively. This means that the city would lose a signif- icant amount of revenue. This, added to the existing budget crisis, prompted council mem- bers to change staff's recommendation of five applications per year to three. "This is all based on a learning curve," said Kline. "We will have to see where it will go from here." While Bogosian said he was fine with allow- ing five applicants each year, he said he was more concerned about having commissioners involved in the evaluation and assessment process and said that this would "add more work to the workload." In order to "keep the process clean," he recommended that staff and code enforcement officers be responsible for making sure that property owners comply with the guidelines. The heritage preservation committee is working on creating a contract. Commission- ers anticipate this to take approximately six months to complete. MARCH 19, 2003 SARATOGA NEWS