San Francisco approves Mills Act contract for historic 714 Steiner Street rehabilitation

In the heart of San Francisco, a significant discussion unfolded at a recent government meeting, focusing on the Mills Act—a vital piece of legislation aimed at preserving the city’s historic properties. Under the soft glow of city hall lights, officials reviewed the merits of the Mills Act, which allows local governments to enter into rolling 10-year contracts with owners of qualified historic properties, offering them property tax reductions to support maintenance and restoration efforts.

Currently, San Francisco's Planning Department oversees 45 active Mills Act contracts, encompassing a diverse range of properties from single-family homes to large commercial buildings. This program not only incentivizes the preservation of the city’s architectural heritage but also helps property owners avoid costly delays in rehabilitation projects that could lead to further deterioration.

During the meeting, Jonathan Vimmer from the Planning Department presented a specific Mills Act application for 714 Steiner Street, a historic Queen Anne building constructed in 1895. This property, valued at over $3 million, is a significant contributor to the Alamo Square Historic District. Vimmer detailed the proposed rehabilitation plan, which includes extensive repairs and restorations, with an estimated cost of over $1.2 million. The plan aims to restore the building's original features while ensuring compliance with the Secretary of the Interior's standards.

The discussion also highlighted the criteria for Mills Act eligibility, which includes the necessity for financial incentives, the potential for additional private investment, and the distinctiveness of the property. The application for 714 Steiner Street met three of the five priority considerations, prompting unanimous support from the Historic Preservation Commission.

However, the meeting was not without its challenges. Supervisor Aaron Peskin raised concerns about the long-term implications of Mills Act contracts, questioning whether property owners would undertake such restorations without the financial incentives provided by the program. He suggested that the Board of Supervisors should consider the potential for terminating contracts after their 10-year terms to ensure that property owners are held accountable for their investments in historic preservation.

As the meeting progressed, the property owner, Leah Culver, expressed her commitment to restoring the historic building, acknowledging that the Mills Act would help cover the costs of necessary repairs. The discussion underscored the delicate balance between preserving San Francisco's rich history and ensuring that property owners are incentivized to maintain their historic assets.

With the Mills Act applications due annually on May 1, the city continues to navigate the complexities of historic preservation, striving to protect its architectural treasures while fostering responsible investment in the future. As the meeting concluded, the implications of these discussions lingered, leaving attendees to ponder the future of San Francisco’s historic landscape and the role of financial incentives in its preservation.