San Diego Historic Homes Get Some Tax Perks

(San Diego is a city rich in history and one of the most historic areas is the island of Coronado.)

Coronado is home to many historic buildings, including none-other than the world famous Hotel Del Coronado.

In addition to this famous hotel, Coronado is also home to many other historic buildings as well.

Many of the buildings that are granted historical status are eligible for tax breaks, which is a great plus for the owners. But many other local residents are upset about this because of a law that limits the amount of homes that can take advantage of this.

A December 5, 2006 article by Janine Zuniga of The San Diego Union Tribune, “Tax breaks for historic houses,” discusses some of the things that are going on with Coronado’s historical houses.

One such notable home in Coronado is the Spreckel’s mansion. It was designed by Harrison Albright in 1908 for the sugar tycoon John D. Spreckels. It has 27 rooms and has an oceanfront spot on Coronado Island.

“The city recently moved to ensure preservation of the 12,751-square-foot mansion by agreeing to enter into a historic preservation contract with a potential future owner of the estate, which features 12 bedrooms, 11½ bathrooms and 115 feet of ocean-view property.”

“In exchange for reduced property taxes under the state's Mills Act, the future owner must agree to restore and maintain the home. The 10-year agreements are renewable.”

The Mills Act was first adopted six years ago and everyone is pleased that it was put in place in order to preserve some of the areas prized homes. But some people are concerned about how it is implemented because it limits the number of homes that can take advantage of it.

“Coronado is the only city in the county that has a fiscal cap on how many Mills Act designations it will approve each year. The city's current cap is $10,000 a year in lost property tax revenue. City officials say they need the cap because their budget depends largely on property taxes.”

As of right now, there are 400 homes that are on the list for potentially historical properties. 70 homes have already been granted historic status.

“Preservationists, who have urged the city to get rid of the cap, say even if all those homes received Mills Act status, it would be a minute portion of the tax revenue the city receives. Since the city implemented the Mills Act in 2000, property tax revenue has nearly doubled, from $7.8 million six years ago to $14 million in 2006, according to figures provided by the city.”

Even the man who created the act, James Mills, thinks Coronado should get rid of the cap it has in place because it discourages preservation.

“‘The purpose of the cap is to promote the destruction of historic properties, because they're worth much more to the city torn down than saved,’ said Mills, a Coronado resident. ‘They say their purpose is to preserve, but the cap is there to ensure properties are not preserved and that 'Billy boxes' are built. It means more money for the city.’”

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