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Volume 17, No. 7 Supplement
Local Incentives for
Historic Preservation
Constance E. Beaumont
Many local governments provide incentives to encourage private property owners to
preserve or rehabilitate historic buildings. Such incentives can be an important complement
to regulatory controls embodied in local preservation ordinances .
Among the different types of historic preservation incentives used by cities and towns
around the country are:
•tax incentives
• financial assistance (e.g., rehabilitation grants or loans)
• regulatory relief(from building code or parking requirements)
• zoning incentives (e.g., transfer of development rights, density bonuses)
• technical assistance(e.g., design assistance)
In addition to providing preservation incentives,many communities are creating
disincentives for property owners to demolish historic landmarks and replace them with
surface parking lots. This memorandum cites examples of such disincentives as well as
incentives.
It should be noted at the outset that some preservation incentives discussed herein may
not be permitted under state law.Local governments considering incentive programs are
advised to review their state his orie preservation or zoning enabling laws to determine
whether they have the legal authority to put certain incentives in place. If they lack such
authority but wish to obtain it, they might consider working with statewide preservation
organizations to amend their state enabling legislation. (See "Successful State Advocacy,"
National Trust Information Sheet No. 57)
Additional references on preservation incentives are cited at the end of this information
bulletin.
A. TAX INCENTIVES FOR HISTORIC PRESERVATION
1. San Antonio, Texas
One of the more mature tax incentive programs for preservation is found in San
Antonio, where in 1980 the city council authorized property tax relief for owners of historic
properties.
Under this program,taxpayers who substantially rehabilitate historic residential
structures may have their property tax assessments frozen for 10 years at pre-rehabilitation
assess-
• ment levels. After that period,tax assessments must again reflect a property's full
market value. Both rental housing and owner-occupied residences may qualify for this
benefit.
• •
Rehabilitated commercial structures may be exempted completely from city property
taxes for five years. During the following five years, taxes are assessed on only half of the
renovated building's value.
San Antonio preservation advocates are currently working with the Bexar County
Appraisal District to persuade county tax assessors to tax historic landmarks according to
their actual use, rather than their "highest and best" use.
For more information: San Antonio Historic Preservation Office, Box 839966,
San Antonio, Texas 78283-3966. Tel: 512/299-8308.
2. Boulder, Colorado
Boulder law authorizes a waiver of city sales taxes on construction materials used to
rehabilitate historic landmarks if at least 30%of the cost of materials is for a building's
exterior. This program has been used extensively and reportedly makes property owners
happier about complying with design review requirements applied to historic buildings.
For more information: Department of Community Planning and Development,
Rm. 305, Park Central Bldg., 1739 Broadway, Boulder, Colorado 80306. Tel: 303/441-
3270.
3. Other Examples of Communities with Tax Incentives
•Jackson, Mississippi authorizes property tax exemptions for up to 7 years for
designated landmarks or buildings in historic districts.Both commercial and residential
structures qualify.
•Atlanta, Georgia provides a freeze on property taxes for income-producing historic
landmarks.
•Buffalo, New York allows 50%of the value of a rehabilitated landmark property to
be excluded from tax assessments for up to 20 years.
•Seattle, Washington permits tax assessments on rehabilitated historic properties to
exclude the increased values attributable to rehabilitation for up to 10 years.
B. GRANTS AND LOANS
1. Roanoke, Virginia
In 1989 Roanoke created a "Historic Buildings Rehabilitation Loan Program."The
program is the result of a partnership involving Downtown Roanoke, Inc., the Roanoke
Valley Preservation Foundation,the City of Roanoke and local commercial lenders.
Under this program,the banks provide rehabilitation loans of up to $100,000 per
project. The interest rate is set at 2% below prime; the loan term, at seven years. The
program is limited to buildings in Roanoke's central business district.
In addition,the city of Roanoke offers matching facade improvement grants of up to
$5,000 and provides free architectural design assistance to property owners in local historic
districts. To qualify for these grants, a person must rehabilitate a deteriorated building and
increase job opportunities for low to moderate-income persons. All renovations must
comply with special rehabilitation standards. This program is funded through community
development block grant funds available from the U.S. Department of Housing and Urban
Development.
•
For more information: City of Roanoke Community Planning Office, Room 355,
Municipal Bldg., 215 Church Ave., S.W., Roanoke, Virginia 24011. Tel: 703-981-2344.
C. EXEMPTIONS FROM PARKING REQUIREMENTS
Many communities recognize that it is difficult for historic areas to meet parking
requirements that were intended for new construction. Inasmuch as the enforcement of such
requirements can easily destroy the pedestrian-oriented character of historic districts,many
zoning ordinances allow for flexibility in this area. Cited below are some examples.
1. Eugene, Oregon
Eugene's preservation ordinance states:
The (historic review) board or council may modify. . . general provisions regarding
(the). . . number of off-street parking spaces required. . . in the final order
designating landmark status if the modifications:
1)are necessary to preserve the historic character, appearance or integrity of the
proposed historic landmark and
2) are in accordance with the purposes of zoning and sign regulations.
2. Durham,North Carolina
Durham's preservation ordinance authorizes parking variances to protect the special
character of its historic districts:
When the Historic District Commission fi'nds that the number of off-street parking
spaces required by the zoning regulations for a building or structure for which a Certificate
ofAppropriatene.ss is requested is inconsistent with the historic character and qualities of the
District, the Historic District Commission shall recommend to the Board of Adjustment that
the Board. . . grant a variance, in part or in whole, of the number of offstreet parking spaces
required. The Board. . . may authorize a lesser number of off-street parking spaces,
provided: (1) the Board fi'nds that the lesser number of off-street parking spaces will not
create problems due to increased on-street parking, and(2) will not constitute a threat to the
public safety.
3. Austin, Texas
Austin authorizes its landmark commission to:
review the parking regulations in existence in the (historic) district and recommend any
changes in numbers, or location of on-street and off-street parking requirements it feels
necessary to enhance the district. (The commission)shall review the adequacy of parking
facilities in or affecting the district and may ofkr recommendations for such public and/or
private parking lots, garages or structures it deems to be in the best overall interest of the
district.
4. Richmond, Virginia
Section 16-11 of Richmond's ordinance states:
•
The. . . off-street parking and loading regulations. . .shall not apply to
buildings or premises in an old and historic district when it is demonstrated to the
satisfaction of the commission by competent evidence that it is necessary to depart from such
regulations and provisions in order to accomplish, encourage and promote the purposes and
objectives set out in (the ordinance's statement of purpose).
5. Seattle, Washington
Seattle's land use code helps to maintain the walkability of the downtown area through
reduced parking requirements.No parking is required for new uses located in existing
structures, even when they are remodeled. No parking, either long-or short-term, is
required: for the first 30,000 square feet of retail space on lots in areas with high transit
access;for the first 7,500 square feet of retail and service space on lots in other areas; and
for the first 2,500 square feet of non-retail commercial space.
Seattle also has a special ordinance governing development in the historic Pioneer
Square Preservation District.Among the stated purposes of that ordinance are:
• to avoid a proliferation of vehicular parking and vehicular-oriented uses;
•to provide regulations for existing on-street and off-street parking; and
•to encourage the use of transportation modes other than the private automobile.
The Pioneer Square ordinance prohibits free-standing gas stations and such other auto-
related land uses as automotive retail sales and services, drive-in businesses and surface
parking lots.The ordinance explicitly discourages parking garages and subjects them to
special design review. Curb cuts and street-level entrances to parking facilities, when they
are allowed, are subject to special review.
For more information: Dept. of Community Development, 700 3rd Avenue,
Seattle, Washington 98104. Tel: 2061684-0228.
6. Denver, Colorado
The zoning ordinance for Denver's Lower Downtown Historic District includes the
following restriction to guard against the construction of parking garages that could destroy
with the special character of this area:
Parking is prohibited within a space which extends from street level upwards a
distance of 12 feet in any structure located within 35 feet of the zone lot front line which is
part of the long dimension of any block.
Denver also exempts buildings in the Lower Downtown Historic District that were
constructed or altered before 1974 from the normal parking requirements.
For more information: Denver Planning Office, 1445 Cleveland Place,Denver,
Colorado 80202. Tel: 3031640-3609.
D. EXEMPTIONS FROM BUILDING CODE REQUIREMENTS
As is the case with parking requirements, today's building codes were written with
new construction in mind and are often inappropriate for historic structures. For this reason,
many communities allow waivers of certain building code provisions for historic structures
provided that the public safety is not endangered. Usually this is done through tradeoffs: the
existence of certain characteristics in a historic structure may compensate for the absence of
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features required by the building code.Examples of communities that provide such
flexibility are cited below.
1. Duluth, Minnesota
Duluth's ordinance encourages building code enforcement authorities:
to be open to acceptable alternative solutions and alternative compliance concepts,
where practical, that will permit the continued use of existing buildings and structures
without creating overly restrictive financial burdens on owners or occupants. (But) nothing
in this ordinance shall he construed to prevent the ordinary maintenance or repair of any
exterior elements of any building or structure required by city ordinance.
2. Taos, New Mexico
The model code followed by Taos is the Uniform Building Code. However, the Taos
preservation ordinance explicitly authorizes building code officials to consider alternative
ways for historic buildings to comply with code requirements:
Rehabilitation or restoration of an officially designated historic structure can be made
without conformance to all of the requirements of the codes upon the review and
authorization by the building official who has legal authorzf.
3. Sarasota, Florida
The building code relief provided for historic structures in Sarasota is as follows:
Historically designated structures and structures which are located in a designated
historical district. . . shall qual ifi,for the exemption accorded to special historic buildings
under. . . (the) Sarasota Building Code (Standard Building Code, 1985 edition). . .provided
that the building meets all other requirements of that section to the satisfaction of the
Building and Zoning Administrator. .
4. Boise, Idaho
Boise allows flexibility in the fire code as well as the building code:
The Council, in order to promote the preservation and restoration of any historic
properties, landmarks or property within an historical district may, upon the
recommendation of the Commission, exempt an historic property, landmark, or property
within an historical district from the application of City Fire or Building Codes upon
compliance with the crikria for exemption set forth in said codes and upon a finding that
non-exemption would prevent or seriously hinder the preservation or restoration of said
historic property, landmark or property in an historical district. Upon recision of an historic
designation, any code exemption herein granted shall be revoked effective the date of
recision.
5. Austin, Texas
Austin's preservation ordinance permits the local landmark commission to:
review and recommend any amendments to the building regulations it feels necessary
to preserve the architectural and historic integrity and authenticity of structures within each
such district.
• •
6. Richmond, Virginia
Richmond authorizes flexibility in fire code requirements for historic buildings:
when the chief of the bureau of fire certifies to the (landmark) commission that in his
opinion such building or structure and the character of construction thereof will not
materially increase the danger from fire. . . (Portsmouth, Va., has a similar ordinance.)
7. Seattle, Washington
The Seattle Building Code, which is based on the Uniform Building Code, allows the
director of the Department of Construction and Land Use to modify building code
requirements for landmark buildings.The director has the discretion to request alternate
requirements so long as they do not compromise the public health and safety.
\ E. ZONING INCENTIVES
J 1. Transfer of Development Rights
The transfer of development rights(TDR) is a publicly created mechanism through
which owners of historic properties may sell unused development rights (air rights)to a
property owner who uses these rights on another site. With TDRs in hand, a developer may
build a larger building on the "receiving site"than the zoning would normally allow.
Historic property owners who sell TDRs may use the proceeds from their sales to pay for
necessary repairs to their property.
In order for TDR programs to succeed,there must be a market for the development
rights that owners of historic properties want to sell. Communities in which the overall real
estate market is sluggish may not fmd TDRs very useful. Cities with robust real estate
markets have established TDR programs but often destroy the TDR market by zoning
"reeiving sites"too liberally.That is,they make building density and height limits so
generous that there is little incentive for developers to purchase TDRs. if the zoning already
permits developers to build exceedingly large buildings as a matter of right, why should they
pay extra for TDRs?
Another prerequisite for a successful TDR program seems to be a city planning staff
with expertise in real estate matters, as TDR transactions can be complicated.
Although TDR programs exist in a number of cities, as can be seen from the
experiences of the following communities, TDRs have not been used very often:
•Seattle. Seattle's TDR program, created in 1985, permits TDR transactions for two
purposes: to produce or preserve low-income housing and to save historic landmarks.
Although the program has been used for housing, it has never been used to preserve
landmarks. Efforts are currently being made to correct the problems with Seattle's TDR
program for preservation.
•San Francisco. San Francisco included a TDR program in the Downtown Plan the
city enacted in 1985. Approximately 10 to 15 TDR transactions involving historic
buildings have been carried out since then.
•Atlanta and Dallas. Both Atlanta and Dallas authorize TDRs for historic
preservation. However, because their zoning codes permit such extraordinarily high floor
area ratios (25 to 1 in Atlanta, 20 to 1 in Dallas), developers have had little incentive to
purchase TDRs.
• •
•Pittsburgh.Pittsburgh's program, established in 1987, allows TDRs in three
circumstances: 1) if new housing is constructed on the receiving site; (2) if the sending site
is a designated historic strcutures;and(3) if a nonprofit performing arts facility is a
sending site. The city has used this program only once, to transfer development rights
from the Benedum Center, a historic building and a performing arts center. The transfer of
development rights was used to accommodate a twin office tower project across the street.
•Philadelphia. A TDR program is under active consideration in Philadelphia at this
time.
•New York. A TDR program run by the city dates to 1961 but has been used for
only about 24 TDR transactions in the last 20 years.
2. Zoning Variances
During the 1960s,many communities revised their zoning ordinances to require
suburban-style yards, with large lot sizes and front- and side-yard setbacks. In older
neighborhoods where houses were often built more closely together on smaller lots,this
type of zoning has made it difficult to construct compatibly designed "in-fill"housing.As a
result, vacant lots have proliferated and neighborhood revitalization efforts have been
stymied. Some communities have acted to overcome this problem.
a. Lansing, Michigan.
Lansing's historic district ordinance contains the following language:
Due to particular conditions of desigl 1 and construction in historic neighborhoods
where structures ar-.often built close to lot lines, and since it is in the public interest to retain
a neighborhood's historic appearance by making variances to normal yard requirements
where it is deemed that such variances will not adversely affect neighborhood properties, the
Historic District Commission may recommend to the Board of Zoning Appeals that a
variance to standard yard requirements be made.
b. Roanoke, Virginia
The city of Roanoke reduced the minimum lot sizes in historic residential
neighborhoods as part of a comprehensive revision to its local zoning code in 1987.At the
same time, Roanoke moved to permit special uses of historic residences to make their
preservation more economically feasible.For example,the city amended its zoning to permit
large Victorian houses that are now too big for most families to be used as bed and
breakfasts, art galleries and other uses that do not destroy residential neighborhoods.
To encourage downtown housing, Roanoke's zoning permits multifamily apartment
buildings, townhouses, and the conversion of upper floor space to residential uses in the
downtown and adjacent areas. These residences accommodate people who enjoy walking to
work and provide a market for downtown stores.
For more information: Office of Community Planning, Rm. 355, Municipal
Bldg., 215 Church Ave., S.W., Roanoke, VA 24011. 703/981-2344
c. Sarasota, Florida
Sarasota authorizes variances and special exceptions to zoning rules to make it easier
for owners of historic structures to find economically viable uses for their properties:
• •
Owners of historically designated structures. . . may petition the Planning Board for a
special exception for any type of use which would serve to perpetuate the
viable contemporary utilization of the historic structure, regardless of whether
such use is permitted by special exception in the zone district in which the historic structure
is located. . .
When a petition for a variance is filed with the Board of Adjustment for an historically
designated structure. . . then the petition for such a variance need only demonstrate that the
grant of the variance will not be detrimental to the public welfare.
Miami authorizes flexibility in zoning,parking and building code requirements when
necessary to encourage the preservation of historic structures.
Under a recently adopted historic preservation overlay zone ordinance,the city may
approve conditional uses—e.g.,professional offices, tourist and guest homes, museums,
private clubs and lodges—in order to make the preservation of historic structures more
economically feasible in certain cases.The ordinance has helped to save large historic
houses located on the fringes of commercial districts.
Miami also permits waivers of minimum lot size, floor area, open space, height,
building spacing and footprint requirements to encourage historic preservation.A provision
in the South Florida Building Code permits the waiver of certain building code provisions
under certain circumstances.Finally,where the size or configuration of a historic district is
such that compliance with offstreet parking requirements would destroy the area's historic
character,the city may authorize a reduction of up to one-third of the number of parking
spaces that would otherwise be required.
For more information: Miami Planning Department,Historic Preservation Office,
Miami, Florida. Tel: 3051579-6086.
G. DISINCENTIVES FOR SURFACE PARKING LOTS AND GARAGES
1. Pasadena, California
P: c.adena's preservation ordinance contains this provision:
No building or construction related permits shall be issued for a period of 5 years from
the date of demolition for property on which demolition has been done in violation (of the
ordinance's requirements) and no permits or use of the property as a parking area
shal– be allowed during the 5 years. . .
All property subject to (the above provision)shall be maintained in an orderly state.
The owner shall maintain all existing trees and landscaping on the property, and, when
appropriate shall sod and seed the property, or otherwise install planting and landscaping
materials in a manner satisfactory to the City's zoning administrator.Any new construction
on the property after the time period within which building and other development permits
may not be issued shall be subject to design review by the Design Commission with
recommendations from the Cultural Heritage Commission to be received by the Design
Commission prior to rendering decisions on the design of new development.
The Pasadena ordinance also forbids the demolition of structures over 50 years old
"unless there has been issued a building permit for a replacement structure
or project for the property involved!'A property owner may be exempted from this
requirement if he can show that "demolition without replacement will not result in harm to
the public." Harm is defined as "the loss of low-income housing stock which will not be
replaced. . .nuisance uses of the vacant property. . . (or) significant adverse visual impact(s)
on the neighborhood."
• •
2. Lowell, Massachusetts
Lowell seeks not only to discourage surface parking lots but also to ensure that new
parking garages are built to fit in harmoniously with their surroundings:
Where off-street parking provision is necessary, vehicles shall be accommodated in
multi-story structures which are sensitively designed to flit into their architectural context.
Removal of buildings to create ground-level parking space shall generally be
prohibited.
Ground level parking spaces proposed to be located on existing open land shall be
adequately landscaped utilizing a combination of shade trees and shrubs for screening.
3. Salt Lake City, Utah
Salt Lake City prohibits demolitions of historic buildings unless their owners have
plans for replacement structures:
All applications for(demolition)permits must be accompanied by post-demolition or
post-removal schematic construction plans or landscaping plans for the site, which plans
shall be submitted to the historical landmarks committee for recommendation. . .
A. Prior to approval of any demolition permit, (the)planning(department)shall review
the post-demolition or removal plans to determine if a faithful performance bond is required
hereunder to ensure the installation and maintenance of sprinkled landscaping upon the
regraded lot according to:
1. The landscaping plan approved by the committee; or
2. In absence thereof a minimum standard of automatically sprinkled sodded grass,
within 6 months following the demolition. . .
B. If a bond is required, it must be issued by a corporate surety authorized to do
husiaeA.° in Utah, in a form approved by the city attorney, or a cash bond under an escrow
agreement approved as to form and terms by the city attorney. The bond shall be in an
amount determined by planning and shall be sufficient to cover the estimated costs, as
determined by the city engineer to:
1. Restore the grade as required. . .
2. Install a working automatic sprinkling system.
3. Revegetate and landscape with sodded grass.
4. Continuing(sic) obligation to maintain the same in an orderly, clean condition until
a structure is constructed upon the site.
5. The bond shall require installation of landscaping and sprinklers within six months,
unless the owner has obtained a valid building permit and commenced pouring foundations.
It shall be the owner's responsibility at all times to maintain the landscaped lot in an orderly,
clean and good condition to avoid becoming an eyesore, weedpatch or otherwise detrimental
to the streetscape or public health.
D. The bond shall be required under the following circumstances.
1. upon applications involving property located within any historic district; and
•
2. upon applications involving property located upon a landmark site.
F. PACKAGES OF INCENTIVES
Some cities provide a whole package of preservation incentives. Examples of such
comprehensive approaches are cited below.
1. Portland, Maine
The preservation ordinance of Portland,Maine, authorizes the city council to approve
an "Incentive Plan" for property owners who could not preserve a historic property without
facing undue economic hardship. The ordinance states:
This Incentive Plan may include, but is not limited to, loans or grants from the City of
Portland or other public or private sources, acquisition by purchase or eminent domain,
building and safety code modifications to reduce cost of maintenance, restoration,
rehabilitation or renovation, changes in applicable zoning regulations including a transfer of
development rights, or relaxation of the provisions of this article sufficient to allow
reasonable use of the structure.
For more information: Dept. of Planning& Urban Development, Rm. 211, City
Hall, 389 Congress St.,Portland, Maine 04101. Tel: 207/874-8300.
2. Aspen, Colorado
Aspen provides a$2,000 grant to residential property owners who "volunteer to
landmark designate" their property.The city also provides zero-interest grants of up to
$10,000 to help persons who demonstrate economic hardship pay for minimum maintenance
of their property. In addition, historic property owners may be exempted from processing
fees and park dedication fees that would normally be required for regular building permits.
Landmarks are exempt from the Aspen Growth Management Quota System as well as from
an annual competition for a limited allocation for commercial square footage, lodge or
residential units. There is a 3.4%cap on growth. Aspen also makes special conditional uses
available only to landmarks and authorizes flexibility in the zoning rules with respect to
building setback requirements for historic structures, floor area ratios, and Uniform
Building Code requirements when appropriate.
For more information: City of Aspen, Planning&Zoning Office, 130 S. Galena,
Aspen, Colorado 81611. Tel: 303/920-5909.
3. Seattle, Washington
Seattle's landmark preservation ordinance explicitly authorizes a variety of economic
incentives to encourage the maintenance or rehabilitation of historic structures.The
ordinance states:
Examples of economic incentives include tax relief conditional use permits, rezonin$
street vacation,planned unit development, transfer of development rights,facade easements,
named gifts,preferential leasing policies,private or public grants-inaid, beneficial placement
of public improvements, or amenities, or the like.
For more information: Office of Urban Conservation, Dept. of Community
Development, 700 Third Ave., Seattle, Wash. 98104. Tel: 206/684-0381
• •
G. TECHNICAL ASSISTANCE
Many communities have found that plain old friendly persuasion can be an effective
way of getting property owners to maintain their historic buildings and to rehabilitate them in
a way that respects the distinctive character of the neighborhood. The National Alliance of
Preservation Commissions encourages local preservation commissions to provide helpful
guidance to property owners on design matters. Such advice can be provided by qualified
planning department staff members, through special neighborhood workshops, or even on a
"circuit rider" basis.
For more information on communities using this approach, contact the National
Alliance of Preservation Commissions, 444 N. Capitol St., Washington, D. C. 20001.
ADDITIONAL REFERENCES
America's Downtowns: Growth, Politics and Preservation, by Richard C. Collins, A.
Bruce Dotson and Elizabeth B. Waters. Preservation Press. 1991.
This 159-page book describes the efforts of 10 cities to establish local historic
preservation programs. The cities are Atlanta, Boston, Cincinnati, Denver, Jersey City,
Philadelphia, Roanoke, St. Paul, San Francisco and Seattle. Preservation incentives were
included in programs adopted by several of these cities and are discussed in the book.
Available for$14.95 (plus sales tax and $4 for shipping) from the Preservation Press,
National Trust for Historic Preservation, 1785 Massachusetts Ave.,N.W., Washington, D.
C. 20036.
Fiscal Incentives for Historic Preservation, by Susan Robinson and John E. Petersen.
January 1989.
This 69-page report discusses preservation incentives from the perspective of local
governments. It addresses such issues as: eligibility criteria, timing and duration of
incentives, impacts on tax bases, administrative concerns and assessment practices.
Available for$10 from the Center for Preservation Policy Studies,National Trust for
Historic Preservation.
"State Tax Incentives for Historic Preservation," by Constance E. Beaumont.
March/April 1991 Historic Preservation Forum, the journal of the National Trust for
Historic Preservation.
This six-page article describes approaches taken by six states to encourage historic
preservation. The tax relief programs discussed are those of Texas, Georgia, Rhode Island,
Wisconsin, Washington and Oregon.
Transferable Development Rights Programs, by Richard J. Roddewig and Cheryl A.
Inghram. American Planning Association. 1987.
This 38-page Planning Advisory Service Report(Number 401) defines TDRs and
discusses their application in 8 communities: Montgomery County, Md.; Collier County,
Florida;New Jersey Pinelands; Santa Monica Mountains, Calif.; New York City; Denver;
Seattle; and San Francisco. The report also discusses the legal basis for a TDR program and
the design of an effective TDR system. Finally, it includes sample ordinances and a
• •
bibliography. Available for$16 from the APA($8 to PAS subscribers), 1313 E. 60th St.,
Chicago, Illinois 60637. (312) 955-9100.
Using A Revolving Loan Fund for Downtown Preservation, a Critical Issues Fund
issue paper by J. Myrick Howard. 1988.
This 22-page report discusses: revolving fund techniques, selecting properties, the
problem of profit(or lack thereof), establishing property values and potential uses,
recouping expenses, working with brokers and fundraising for the revolving fund.
Available for$5 from the Center for Preservation Policy Studies of the National Trust for
Historic Preservation.
Preserving Small Buildings in Downtown Washington, D. C., a Critical Issues Fund
report by Tom Moriarity of Halcyon, Ltd. 1988.
This 77-page report summarizes techniques available to preserve small historic
buildings in a downtown area. The report includes brief explanations of such preservation
tools as zoning(overlay, performance, bonus), tax abatements, differential assessments,
investment tax credits,tax increment financing and special taxing districts. Available for$10
from the Center for Preservation Policy Studies of the National Trust.
"Economic Incentives for Historic Preservation," a Critical Issues Fund paper by
Richard J. Roddewig. 1988.
This 16-page paper discusses historic buildings as an economic resource and
comments on the advantages of different approaches to preservation incentives. Available
for$5 from the National Trust's Center for Preservation Policy Studies.
Carrots and Sticks:New Zoning Downtown, by Terry Jill Lassar. Urban Land
Institute. 1989.
This 203-page book discusses incentive zoning, density bonus programs,design
review, street-level retail uses, view protection, open space and streetscapes, parking and
transportation. Information is included on zoning tools used by such cities as Portland
(Oregon), Pittsburgh, Seattle, San Francisco, Bellevue (Washington) and Charlotte (North
Carolina). Available from the Urban Land Institute, 625 Indiana Avenue, N.W.,
Washington, D. C. 20004. (202) 624-7000.
Appraising Easements: Guidelines for Valuation of Historic Preservation and Land
Conservation Easements.
An 82-page book published jointly by the Land Trust Alliance and the National Trust
for Historic Preservation, this publication includes: guidelines for the appraisal of charitable
gifts of conservation easements, excerpts from the U.S. Treasury Dept. regulations
concerning easements; selected IRS revenue rulings, and sample easement restrictions.
The book may be obtained for$8.95 from the Preservation Bookstore, 1600 H St.,
N.W., Washington, D. C. 20006. 202/673-4200.
The Conservation Easement Handbook:Managing Land Conservation and Historic
Preservation Easement Programs.
Authored by Janet Diehl and Thomas S. Barrett, this 269-page book discusses such
matters as:the different types of conservation and preservation easements; criteria for
• •
easement programs; marketing easement programs; tax benefits of easements; and
preventing easement violations. The book also includes model historic preservation and
conservation easements and commentary.
Available for$19.95 from the Preservation Bookstore, 1600 H St.,N.W.,
Washington, D. C. 20006.
Preservation Law Reporter.
Published by the National Trust for Historic Preservation, the Preservation Law
Reporter covers new developments relating to Federal, state and local preservation laws and
ordinances. State laws affecting tax incentives for preservation are included as part of this
coverage. Subscriptions to the PLR are $90($50 for members of the National Trust's
Preservation Forum). A subscription includes 12 monthly issues plus a year-end report
summarizing highlights in preservation law. Write to the Law and Public Policy Department,
National Trust for Historic Preservation, 1785 Massachusetts Ave.,N.W., Washington, D.
C. 20036. 202/673-4035.
Alliance Review
Published quarterly by the National Alliance of Preservation Commissions, this
newsletter offers helpful advice on a variety of matters: design guidelines for historic
districts, local ordinance provisions dealing with special problems, such as "demolition by
neglect," workshops and conferences, etc. Annual subscriptions are$15, available from
NAPC, Hall of the States, Suite 332, 444 N. Capitol St., Washington, D. C. 20001
More owner consent provisions
Pasadena
Section 2.75.140 Procedure for designating landmarks.
If the property,is privately owned, the owner of the property may object to the
designation of the property as a landmark by filing with the city clerk a statement setting
forth the objection prior to the hearing before the board.Any such statement must be
acknowledged before a notary public in the same manner as required for recordation of
deeds. If an objection is made by the
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owner or, if there are multiple owners, by those owners having an interest greater than
50%of the assessed value of the property, then the board shall determine if the property is
eligible for designation as a landmark, but no declaration of its designation shall be
recorded.An owner or an owner's successor in interest may thereafter withdraw an
objection at any time by filing a statement withdrawing the objection.
Jackson, Mississippi
Section 15-1/2.11 (7)
Within 60 calendar days after the public hearing. ..,the city shall adopt the ordinance
as proposed, reject it, or adopt any portion thereof. However, the city shall not adopt an
ordinance designating a historic district unless a majority of the property owners voting as
required herein, voted in support of said designation.
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Historic Preservation Incentives
PLANNING BOARD REPORTS TO THE 1999 ANNUAL TOWN MEETING
ARTICLE 4 ZONING BY-LAW , HISTORIC PRESERVATION INCENTIVES
The text of the proposed amendment appears
at the end of the Report
RECOMMENDATION: The Planning Board recommends that Article 4 be
APPROVED.
OBJECTIVES
The intent of the proposed article is to keep to a minimum the possibility that Lexington's
zoning requirements will inhibit the cause of historic preservation. Zoning can
inadvertently act as a disincentive to protect structures by having rigid permitted use
restrictions, dimensional requirements (such as setbacks), on-lot building restrictions or
other constraints that might have an unintended negative impact. In proposing special
permit conditions, however, the aim is to provide prudent measures that offer an
incentive to the applicant to preserve the structure while still protecting abutting uses and
the neighborhood. Another need is to clarify the definition of what constitutes historic
status—or potential historic status—for a structure. An additional requirement is to
maintain a list of eligible structures and elements and a process for amending it.
The following are general goals for the proposed amendment:
a. Employ the zoning power to encourage preservation of historic buildings, other
structures and elements within and outside of historic districts.
b. Use the special permit granting authority that is (variously) vested in the Zoning
Board of Appeals and the Planning Board, as a vehicle to implement broad
historic preservation goals on a town-wide basis.
The following are specific objectives of the amendment
a. Reduce the disincentives to historic preservation in the Lexington Zoning By-Law
that might involve use restrictions, dimensional requirements or other provisions.
b. Substitute permitted use provisions that broaden the array of acceptable economic
options in a property for the owner/investor.
c. Modify, where feasible, dimensional and development standards that create
barriers to preservation for the property owner/investor.
d. Strengthen and make clear the definition of historic and potentially historic and
architecturally significant buildings, other structures and elements.
e. Utilize the town's existing historic regulatory and protective processes for
maintaining a list of eligible historic structures and elements; this list should be
viewed as a changing and dynamic tool that provides oversight and consistency to
the process of nominating items for historic status.
BACKGROUND
Collectively, many older residences and commercial buildings in Lexington help to give
the town its special character. The community has long expressed its recognition of the
value of Lexington's architectural resources by supporting preservation of particular
historic buildings, creating historic districts and passing other protective regulations. It is
apparent, however, as the town enters the new century, that limited public powers and
individual preservation efforts, as important as they may be, are not sufficient to achieve
broad community stewardship of the town's historical and architectural resources. Zoning
powers, particularly those involving special permit granting authority, can be employed
in a variety of ways to encourage preservation.
This article responds to concerns expressed by members of the Planning Board and the
Lexington Historical Commission in regard to extending greater protection to historic
structures and other historic elements in the community. These structures and elements
may exist within or outside of the town's existing historic districts. In addition to
buildings, historic status can include settings (such as a field), ancient ways, secondary
structures (such as a barn), monuments or even a sign.
Structures within an existing historic district are covered by design controls that regulate
alterations to the building. Structures located outside of a historic district do not have any
layer of protection to encourage their preservation, with the sole exception of the town's
Demolition Delay By-Law, which covers the entire municipality. That By-Law offers a
six month postponement of the razing of a building during which the applicant must
justify to the Lexington Historical Commission (not the same as the Historic Districts
Commission) why demolition is the only feasible alternative.
HIGHLIGHTS OF THE ARTICLE
A number of points are important to understand in regard to the proposed article.
First, the actual or potential eligibility of any building, structure or other element under
this article is not arbitrary and left to the whim of either a developer or the town. Whether
in an accepted or nominated status, historic properties must have demonstrable
architectural or historic significance under the criteria of some credible source, be it the
National or State Register or Lexington's Cultural Resources Survey.
Second, the basic approach used in this historic incentive provision is to allow
modification of the land uses permitted in various zoning districts to provide property
investors with an economic inducement to preserve the property. These use modifications
are, however, selected with caution, both in terms of the uses being of low impact to their
area and the zoning districts in which they would now be allowed being limited and
logically chosen.
It should also be kept in mind that these provisions apply only to properties that have met
the eligibility criteria for historic and architectural significance, and not to properties on a
wholesale basis. Similarly, dimensional and certain development standards such as yard
setbacks or impervious surface ratios may be modified where they impede preservation.
The system would operate with checks and balances for the protection of the applicant,
neighboring users and the general public. In addition to the eligibility "screen" for any
property, the use of the special permit mechanism guarantees extensive public process,
with public and abutter notice, a public hearing, review by all relevant town boards and
departments, provision of written findings of fact by the SPGA, and the ability for the
SPGA to impose protective special conditions on a case-by- case basis.
Finally, the article allows, where necessary, otherwise ineligible adjacent lots in a
subdivision or cluster development to be used to make historic preservation on the
eligible lot feasible. This could involve any purpose that helps to achieve the goal of
preservation, ranging from provision of parking, to accommodating infrastructure, to
restoring historic setting.
PUBLIC HEARING:
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A duly advertised public hearing was held on February 24, 1999. Key questions and
comments included: How many properties are on the National or State Registers and/or
the Lexington Cultural Resources Survey? The Board has now determined that 645
buildings are presently eligible for this special permit, by means of being included in one
or more of these lists. Another 500 have potential eligibility but resources have been
insufficient to conduct additional architectural/historical surveys. Questions were asked
about specific uses of buildings that might now be allowed under this By-Law
amendment, and the Board and staff offered clarification. Other comments involved
minor technical corrections.
MOTION
That the Zoning By-Law be amended by adding a new subparagraph 4.4 HISTORIC
PRESERVATION INCENTIVES, as follows:
"4.4 HISTORIC PRESERVATION INCENTIVES
4.4.1 GENERAL OBJECTIVES
a. Encourage preservation of buildings, structures, sites and settings, and
elements of historical or architectural significance.
b. Establish eligibility criteria for buildings, structures, sites and settings, and
elements attaining protected status under paragraph 4.4.2.
c. Expand economic options for the owner/investor, by broadening the
permitted uses in various zoning districts and removing barriers presented
by development standards governing those permitted uses.
d. Permit the flexibility of development options by modifying dimensional
requirements that might be an impediment to historic preservation.
e. Provide incentives to preserve contributory elements of historic or
architectural significance, such as settings and sites, objects, monuments,
trees or other elements.
4.4.2 HISTORIC ELIGIBILITY DEFINED:
a. Any historic element, as defined below, may qualify for paragraph 4.4.2,
Historic Preservation Incentives, if it is included on any of the following
lists or surveys:
1. National Register Of Historic Places
2. State (Commonwealth Of Massachusetts) Register Of Historic
Places
3) Inclusion by the Lexington Historical Commission in its
Comprehensive Cultural Resources Survey, or identification by that
Commission of historic and/or architectural significance and thereby
potential inclusion in the Comprehensive Cultural Resources Survey.
4)Pending nominations in good standing to the National or State
Registers
b. Primary Qualifying Elements shall include the following: buildings, and
other structures and outbuildings located on the property.
c. Secondary Qualifying Elements shall include the following: sites and
settings, objects, monuments, trees or any element of historical, architectural
and/or cultural significance which indicates their contributory value in
establishing historical context.
• •
A duly advertised public hearing was held on February 24, 1999. Key questions and
comments included: How many properties are on the National or State Registers and/or
the Lexington Cultural Resources Survey? The Board has now determined that 645
buildings are presently eligible for this special permit, by means of being included in one
or more of these lists. Another 500 have potential eligibility but resources have been
insufficient to conduct additional architectural/historical surveys. Questions were asked
about specific uses of buildings that might now be allowed under this By-Law
amendment, and the Board and staff offered clarification. Other comments involved
minor technical corrections.
MOTION
That the Zoning By-Law be amended by adding a new subparagraph 4.4 HISTORIC
PRESERVATION INCENTIVES, as follows:
"4.4 HISTORIC PRESERVATION INCENTIVES
4.4.1 GENERAL OBJECTIVES
a. Encourage preservation of buildings, structures, sites and settings, and
elements of historical or architectural significance.
b. Establish eligibility criteria for buildings, structures, sites and settings, and
elements attaining protected status under paragraph 4.4.2.
c. Expand economic.options.for the owner/investor, by broadening the
permitted uses in various zoning districts and removing barriers presented
by development standards governing those permitted uses.
d. Permit the flexibility of development options by modifying dimensional
requirements that might be an impediment to historic preservation.
e. Provide incentives to preserve contributory elements of historic or
architectural significance, such as settings and sites, objects, monuments,
trees or other elements.
4.4.2 HISTORIC ELIGIBILITY DEFINED:
a. Any historic element, as defined below, may qualify for paragraph 4.4.2,
Historic Preservation Incentives, if it is included on any of the following
lists or surveys:
1.. National Register Of Historic Places
2. State (Commonwealth Of Massachusetts) Register Of Historic
Places
3) Inclusion by the Lexington Historical Commission in its
Comprehensive Cultural Resources Survey, or identification by that
Commission of historic and/or architectural significance and thereby
potential inclusion in the Comprehensive Cultural Resources Survey.
4) Pending nominations in good standing to the National or State
Registers
b. Primary Qualifying Elements shall include the following: buildings, and
other structures and outbuildings located on the property.
c. Secondary Qualifying Elements shall include the following: sites and
settings, objects, monuments, trees or any element of historical, architectural
and/or cultural significance which indicates their contributory value in
establishing historical context.
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d. Priority in granting special permits under these historic preservation
incentives shall, in all cases, be placed upon keeping buildings and structures
in place, rather than moving them to other locations,provided that the existing
siting can be shown to represent valid historical setting and context. Moving
of buildings, structures and elements to other locations shall be considered
only if no other preservation measures are practical or reasonable on the
existing site, or if the proposed removal is to return a building, structure or
element to an original or more historically accurate location. The SPGA shall
determine the validity of any such requests.
3. SPECIAL PERMIT AUTHORIZED: The Board of Appeals, or the
Planning Board where it is authorized to be the special permit
granting authority (SPGA), may grant a special permit to authorize
actions that would otherwise not comply with the provisions of this
By-Law and that would allow the renovation, repair, adaptive
reuse or, in limited instances, removal, of historic or architecturally
significant buildings.
a. The following uses,identified by the line in which they appear in
Section 4.2 of this By-Law that are not usually permitted in the districts
identified below, may be allowed in those districts,provided the SPGA
makes the findings listed in 4.4.4.:
1. 1.13 Residential/Institutional/Agricultural Uses; the conversion of
single family residences in the RD, CB and CLO districts.
2. 1.14 the conversion of single family residences in the CB and CLO
districts.
3. 1.187 the conversion of municipal buildings to residential use in
the RM, CB and CLO districts.
4. 1.21 the creation of Rooming Units in the CB, CLO and CN
districts.
5. 1.22 the creation of Accessory Apartments in the CB and CLO
districts.
6. 1.23 the creation of Bed and Breakfast Homes in the RT, RM, RD,
CN, CB, and CLO districts.
7. 1.24 General Home Occupation Uses with a maximum of one (1)
employee other than an owner occupant and with a maximum of 4
customers per hour, as an average during the course of the business
day, in all districts.
8. 1.25 Professional Office Home Occupation Uses with a maximum
of one (1) employee other than an owner occupant, in all districts.
9. 6.14 Office Uses, Professional Services, in CN districts.
10. 6.15 Advertising/Editing, in CN and CB districts.
11. 6.16 Employment Agency and similar uses, in CN districts.
12. 6.17 Manufacturer's Representative and similar uses, in CN
districts.
13. 6.18 Other Business and Administrative and similar uses, in CN
districts.