The Mills Act is state-sponsored legislation that grants local governments the authority to enter into an agreement with individual property owners to allow reduced property tax payments for the restoration and continued maintenance of their historic property.

The first home, the Neil Carmichael House at 14051 Saratoga-Sunnyvale Road, was constructed in 1914 in a neoclassical style. The current owners are Mike and Teri Dahlbeck. Teri Dahlbeck told the council that she fell in love with the home when she first saw it. "I sold my soul to the devil to buy this house," she said. "The people who own this home love this home," she assured the council. The Dahlbecks have made an impression on the neighborhood by lighting up the home with 5,000 Christmas lights during the holiday season. She said that this year they would do the same.

Councilwoman Ann Waltonsmith became choked up when discussing the Neil Carmichael House. "I appreciate young people moving in and wanting to save it," she said. "It's a beautiful house ... it was part of my childhood."

The second home, known as Casa de Tesoro, is located at 14288 Chester Ave. Construction of the home began in 1935. It was made to resemble a Spanish mission with authentic adobe bricks, numerous arches and a red-tiled roof. The current owners are Susie and Amit Nagpal.

By granting the homes historic status, the city will lose a portion of the property tax normally received from the properties. The city normally receives approximately $1,750 in property tax from a $5,000,000 property and $350 from a $1,000,000 property. The Mills Act would respectively reduce those amounts by 60 percent to $1,050 and $210. The city council allows three Mills Act contracts to be approved a year. The Neil Carmichael House and the Casa de Tesoro are the only two homes granted historic status this year.

Vice Mayor Norman Kline said he was happy to see a younger generation coming into the city and rescuing these older houses.

In other business, the council approved a lot line adjustment for a property at 14574 Horseshoe Court. The property owner owns two adjacent parcels of land that are zoned differently. In order for a grove of oak trees on one of the parcels to be saved, the property owners requested the lot line adjustment for more area to build a new home. A rezoning was also requested so that the adjusted parcel would be under a single set of development standards.

The council, seeing no objections, approved the application.