Historic preservation commission backs Mills Act contracts for three San Francisco properties

The San Francisco Historic Preservation Commission voted unanimously to recommend that the Board of Supervisors approve three Mills Act contracts for historic properties at 148–152 Fillmore Street, 988 Market Street and 2209 Webster Street.

Planning Department staff said the Mills Act contracts provide property tax reductions to owners who commit to rehabilitation and ongoing maintenance that meets the Secretary of the Interior Standards for Rehabilitation. Shannon Ferguson, planning department staff, presented the three applications and recommended approval of all three to the commission.

Staff described the Fillmore Street property as a Queen Anne, circa‑1900, 2½‑story building with a rehabilitation plan that includes bolting the foundation to the sill, repairing siding and windows, a soft‑story upgrade, and other work with an estimated rehabilitation cost of $225,000 and annual maintenance estimated at $20,000. The assessor’s estimate cited in staff materials puts first‑year property tax savings for the Fillmore owner at $14,184 (a 59.4% reduction).

For 988 Market Street, staff said the applicant proposes to rehabilitate historic terracotta facades, wood‑frame windows, roofing, marble stairs and other elements of the 1922 steel‑frame office building. Estimated rehabilitation costs were $576,259 with annual maintenance at $20,000; staff’s materials estimate first‑year property tax savings at $176,681 (69.19% reduction).

The 2209 Webster Street property, described as a two‑story Italianate house rebuilt circa 1900, has a rehabilitation plan that includes roof replacement and repairs to doors, windows and siding. Estimated rehabilitation costs were $238,000 with annual maintenance estimated at $3,800; staff estimated first‑year property tax savings at $17,000 (70% reduction).

Owners and representatives addressed the commission. Mark Stempel, an owner of 148–152 Fillmore Street, said, "we purchased the building about a year and a half ago ... we're just asking for some assistance through the Mills Act in order to do the maintenance and repairs." Mark Shkolnikov, representing 988 Market Street, thanked the commission and said, "The Mills Act will have a really significant impact in offsetting our our rehabilitation costs." Michael Foley, owner of 2209 Webster Street, described the house as historically significant and said a Mills Act contract is essential to preserving its character.

Commissioners praised staff work and discussed standards for rehabilitation, including retaining original window materials and minimizing exterior exposure of mechanical, electrical and plumbing systems to preserve character. After discussion the commission moved to adopt staff recommendations; the motion passed unanimously 4–0.

Votes at a glance

- 148–152 Fillmore Street — Recommendation for Mills Act contract approved (motion passed 4–0). Estimated first‑year tax savings: $14,184.
- 988 Market Street — Recommendation for Mills Act contract approved (motion passed 4–0). Estimated first‑year tax savings: $176,681.
- 2209 Webster Street — Recommendation for Mills Act contract approved (motion passed 4–0). Estimated first‑year tax savings: $17,000.

The commission’s recommendation goes forward to the Board of Supervisors for final action; no Board date was specified during the meeting.