Roxy, Rainbow seeking Mills Act Contract

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WeHo’s Historic Preservation Commission is tasked with providing a recommendation to City Council on the request for a Mills Act Contract for the cultural resources located at 9009-9015 Sunset Boulevard, known as The Roxy Theatre and Rainbow Bar & Grill.

City Council has determined that historic structures representing the city’s unique cultural and social foundations should be preserved as a living part of community life and development to build a greater understanding of the past and to give future generations the opportunity to appreciate and enjoy the city’s rich heritage. 

A Mills Act Contract is a legal agreement between the owner of a qualifying historic property and a municipality stating that alternate property tax calculations may be used, often resulting in a lower tax rate, in exchange for a commitment that certain rehabilitation, restoration, and ongoing maintenance work specified in an approved work plan be completed. To qualify, the property must be listed in the National Register of Historic Places, located in a National Register Historic District, or listed in any official state, county, or city register of historically or architecturally significant sites; be privately owned; and not be exempt from taxation. The property at 9009-9015 Sunset Boulevard meets these qualifications and is eligible to participate in the Mills Act program because each building is designated in the city of West Hollywood’s Register of Cultural Resources, is privately owned, and is not exempt from taxation.

The Roxy Theatre is a French Revival-style building constructed in 1938. It is located on the north side of Sunset Boulevard east of the Doheny Drive and Sunset Boulevard intersection. The two-story, rectangular plan building occupies the east side of the lot and exterior character-defining features include asymmetrical façade composition, smooth cement plaster cladding, hipped roof with gable wall dormers and flat roof, full-width projecting awning, and neon blade sign. The subject property was developed in 1938 as a market and has operated as a music venue since 1973.

The Rainbow Bar & Grill is a Tudor Revival-style building constructed in 1935. It is located on the north side of Sunset Boulevard east of the Doheny Drive and Sunset Boulevard intersection. The 1.5-story, rectangular plan building occupies the west side of the lot and exterior character-defining features include an asymmetrical façade composition, cement plaster cladding with wood half-timber accents and brick veneer, complex roof massing with steep gables, moderate gables, and flat roof, and a two-sided pole sign reading “RAINBOW bar & grill.” The subject property was developed in 1935 as a restaurant and continues to operate as such today.

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Both buildings are associated with the development of the Sunset Strip as a destination for dining and entertainment in Southern California throughout the second half of the 20th century. The Roxy Theatre was one of the first clubs to open on the Sunset Strip after the area had gone through a period of decline that reflected the changing artistic trends, economic conditions, and social and cultural circumstances that influenced the Sunset Strip nightclub scene in the 1970s and 1980s. The Rainbow Bar & Grill was conceived as an exclusive venue dedicated to the rock ‘n’ roll lifestyle where musicians and music executives could behave freely and entertain themselves. Both buildings have been heavily altered since their original construction and do not possess any architectural significance.

The current condition of both buildings is documented through reports and photographs submitted in the applicant’s Historic Structures Report. Tax savings associated with a Mills Act Contract would help the property owner rehabilitate and maintain those features and systems that are integral to the buildings’ designation as cultural resources and their continued viability.

The requested Mills Act Contract is one component in a suite of incentives, including two new billboards, that have been aimed at ensuring the continued maintenance and protection of the structures and property as well as the continued operation of a business and a land use that has been important to the history and culture of the Sunset Strip.

Should the city choose to enter into this Mills Act Contract, the property owner would realize an estimated $3,147,130 in property tax savings over the first ten years of the contract.

The estimated cost of the proposed tasks in the work plan throughout the ten-year life of the contract is $992,965, but this amount is not intended nor expected to be a dollar-for-dollar comparison to the tax savings that are determined by the Los Angeles County Assessor. Over the ten-year life of the Mills Act Contract, the city would incur an estimated total loss of revenue equal to $38,223 in the first year of the contract and $56,637 in the tenth year, for an estimated total loss of $503,541 throughout the first ten years.

 

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Roy Oldenkamp
Roy Oldenkamp
3 months ago

So great to hear this is finally happening! Pretty sure especially the Rainbow is ready for updated wiring and plumbing, roofing and termite remediation, etc. Bravo!!