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Conservation HPC Process review D~~~E ~ c/N.- ~ MEMORANDUM September 15, 2004 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: HPC Conservation District Amendment On September 7,2004, the City Council received the Historic Preservation Commission's proposal to amend the Conservation District regulations with respect to governmental units. The City Council referred the proposal to the City Manager for recommendation. I respectfully request that the Mayor and City Council adopt the following procedure for review of Conservation District projects of state and other local governmental units. First, the Historic Preservation Commission and then the City Council would review these projects after receiving the required information. The City Council would then make a determination as to whether a denial of the application would prevent the unit of government from accomplishing its governmental functions. If the City Council finds that denial of the application would not prevent the unit of government from accomplishing its governmental functions, the City Council may deny the application. If the City Council finds that denial of the application would prevent the unit of government from accomplishing its governmental functions, the City Council must approve the application. I {1 ,'7/ (Iì ,: i Lti. L ill] 1L L Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Laura Carstens, Planning Services Manager c, , : C" D~ ~ c/N.- ~ MEMORANDUM September 15, 2004 FROM: Michael Van Milligen, City Manager Laura Carstens, Planning Services Manager ~ TO: RE: HPC Conservation District Amendment INTRODUCTION On September 7, the City Council received the Historic Preservation Commission's proposal to amend the Conservation District regulations with respect to governmental units. The HPC requested that the City Council keep the buildings that are being proposed for demolition for the new Downtown School in the Downtown Neighborhood Conservation District, and amend the Conservation District regulations to allow government units needing land to submit different information on the site selection process. The HPC provided a proposed amendment for discussion only, not for adoption. The HPC requested that the City Council direct Planning and Legal staff to prepare an amendment similar to the attached draft for consideration by the City Council. The City Council referred this proposal to the City Manager and staff for review and a recommendation. The Commission's proposal has been reviewed by the Legal Department. Enclosed is a revised ordinance that refines the HPC's draft. BACKGROUND The Conservation Districts were created to help protect architecturally and historically significant structures from being demolished. The Building Official cannot issue demolition permits in these areas without review by the HPC and final approval by the City Council. The School District's request to remove the downtown school site from the Downtown Conservation District would eliminate HPC review. HPC Conservation District Amendment Page 2 The HPC asked the City Council to consider amending the Conservation District regulations to provide different review criteria for governmental units needing land while continuing the HPC's advisory role. The HPC noted the economic criteria are not appropriate for governmental units that need land for public projects. The Conservation District Ordinance does not currently take into consideration projects that require land acquisition by a governmental body for the public good. DISCUSSION In refining the HPC's draft, the Legal Department has revised the ordinance to provide further direction to the HPC and the City Council if the applicant is the state of Iowa or a political subdivision of the state. For government applicants, the Commission would review economic criteria as well as criteria for these governmental applicants. The Commission and the City Council may require that the applicant make submissions concerning any or all of the following information for the proposed site and suitable alternative location(s): (1) Fair market value of property; (2) Estimate of the cost of the proposed demolition, including hazardous material removal and remediation; (3) Fair market value of any property owned by the governmental body that could be sold if that site is not chosen for the project; (4) Property tax impact of removing private property from the tax rolls at the proposed location and all alternative locations; (5) Any other factors that contribute to making one location more suitable than others for the proposed use. (6) Any other information appropriate to evaluating how all conflicting governmental interests may be accommodated. (7) The need for the use in question, the effect on neighboring property, and the environmental impact of the proposed use. For government applicants, the Commission would review economic criteria as well as these criteria, and then make a determination as to whether the denial of the application would prevent the state or the political subdivision from accomplishing its governmental functions. HPC Conservation District Amendment Page 3 If the Commission finds that denial of the application would prevent the state or the political subdivision from accomplishing its governmental functions, the Commission must recommend approval of the application. If, after weighing the interests and attempting to accommodate all conflicting governmental interests, the Commission finds that denial of the application would not prevent the state or the political subdivision from accomplishing its government functions, the Commission may deny the application If the applicant is the state of Iowa or a political subdivision of the state, the City Council would review economic criteria as well as these criteria, and then make a determination as to whether the denial of the application would prevent the state or the political subdivision from accomplishing its governmental functions. If, after weighing the interests and attempting to accommodate all conflicting governmental interests, the City Council finds that denial of the application would not prevent the state or the political subdivision from accomplishing its governmental functions, the City Council may deny the application. If, on the other hand, the City Council finds that denial of the application would prevent the state or the political subdivision from accomplishing its governmental functions, the City Council must approve the application. RECOMMENDATION Planning Services staff recommends that the City Council give consideration to the HPC's proposed amendment to the Conservation District regulations, as refined by the Legal Department on the enclosed ordinance. Enclosure cc Historic Preservation Commission Barry Lindahl, Corporation Counsel Tim O'Brien, Assistant City Attorney Prepared by: Laura Carstens City Planner Address: City HaJj 50 W. 13th Sl. Teiephone: 589-4210 ORDINANCE NO. -04 AN ORDINANCE AMENDING CHAPTER 11 (BUILDING REGULATIONS) OF THE CITY OF DUBUQUE CODE OF ORDINANCES REGARDING CONSERVATION DISTRICTS. Whereas, the Historic Preservation Commission has recommended amendments to Chapter 11 (Building Regulations) of the City of Dubuque Code of Ordinances regarding Conservation Districts; and Whereas, the City Council established Conservation Districts to allow for the Commission's and City Council's review of demolition permits that might impact buildings of historic or architectural significance in these districts; and Whereas, the Commission has recommended criteria for the Commission and the City Council to consider if the state of Iowa or a political subdivision of the state is able to perform its functions; and Whereas, the City Council finds that the recommended amendments to Chapter 11 are consistent with the goals and objectives of the City's Comprehensive Plan and the purpose and intent of the City's Code of Ordinances. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section1. Chapter 11 (Building Regulations) of the City of Dubuque Code of Ordinances is hereby amended by amending the following sections to read as follows: 11-4(b) Review by the Historic Preservation Commission. Upon receiving an application for a demolition permit for any building subject to this section, the building official shall immediately notify the Historic Preservation Commission of such application. If the application is for any building with one or more dwelling units, the building official shall also immediately notify the Housing and Community Development Department. The applicant shall file the information required in this section with the Historic Preservation Commission at the Office of the Planning Services Department by the application deadline established by the Commission. If the application is for any building with one or more dwelling units, the Planning Services Department shall provide the filed information to the Housing and Community Development Department. Ordinance No. Page 2 -04 At its next regular meeting, the Commission shall recommend to the City Council approval or denial of the application, or table the application for additional information for a specified period not to exceed sixty (60) days from the date of application with the Commission. A failure of the Commission to take action on the application within the sixty (60) day period, unless the applicant requests and the Commission grants an extension of such time, shall constitute Commission approval thereof. The recommendation of the Commission shall be transmitted to the City Clerk. The City Clerk shall promptly transmit the recommendation and the application to the City Council for its consideration. The Commission shall review all of the information submitted by the applicant and, if the application is for any building with one or more dwelling units, all of the information submitted by the Housing and Community Development Department, and shall make a determination as to the following: (1) Whether the building proposed for demolition has historic or architectural significance to the community; and (2) Whether denial of the proposed demolition permit would prevent the property owner from earning a reasonable economic return on the property. If the Commission finds that denial of the application would prevent the property owner from earning a reasonable economic return on the property, or that the building does not have any historical or architectural significance to the community, the Commission shall recommend approval of the application. If the Commission finds that denial of the application would not prevent the property owner from earning a reasonable economic return on the property, and that the building has historical or architectural significance to the community, the Commission shall recommend denial of the permit application. If the applicant is the state of Iowa or a political subdivision of the state, the Commission shall also make a determination as to whether the denial of the application would prevent the state or the political subdivision from accomplishing its governmental functions as follows: (1) If the Commission finds that denial of the application would prevent the state or the political subdivision from accomplishing its governmental functions, the Commission shall recommend approval of the application. (2) If the Commission finds that denial of the application would not prevent the state or the political subdivision from accomplishing its governmental functions, the Commission may recommend denial of the application. Ordinance No. Page 3 11-4(c) Historic and architectural significance guidelines and review criteria. The report, "Heritage of Dubuque" dated March 1974 and filed on record on January 27, 1975, shall be considered as a comprehensive study for the historical preservation of the city and as one of the guides to be considered at such time as a demolition permit is applied for in a reference conservation district. The City of Dubuque's Historic Property Inventory and any subsequent official architectural/historical surveys/evaluations and nominations to the National Register of Historic Places prepared for any buildings located within the neighborhoods described in subsection (a) also shall be considered as guidelines at such time. -04 In determining whether a building has historic or architectural significance, the Commission and the City Council shall consider an application for a demolition permit in accordance with the standards for review set forth in the Secretary of the Interior's Standards for Identification and Evaluation, and any subsequent revisions of these standards and guidelines by the Secretary of the I nterior. The Commission and the City Council shall also consider a determination from the State Historical Society of Iowa as to the potential eligibility for listing of the building proposed for demolition on the National Register of Historic Places. 11-4(d) Economic Guidelines and Review Criteria. In determining whether to recommend approval or denial of the application, the Commission and the City Council may consider the information set forth in this subsection. The Commission and the City Council may also investigate strategies which would allow the property owner to earn a reasonable economic return on the property, may solicit expert testimony, and may require that the applicant make submissions concerning any or all of the following information: (1) A bid from a qualified contractor showing the cost of the proposed demolition; (2) A report from a licensed engineer, architect or contractor with experience in rehabilitation as to the structural integrity of any structure that the applicant proposes to demolish; (3) An opinion of the market value and the appraised value of the property by a realtor or appraiser: a) in its current condition, b) after completion of the proposed demolition, c) after renovation of the existing property for continued use, and d) all appraisals obtained within the last five (5) years for the property; (4) An estimate from an architect, developer, real estate consultant, appraiser or other real estate professional experienced in rehabilitation of the cost a) to perform the repairs identified by the Building Services Department and the Housing and Community Development Department if the structure contains one or more dwelling units, and b) to rehabilitate the structure; (5) The amount paid for the property, the date of purchase and the person from whom the property was purchased, a description of the relationship, if any, between Ordinance No. Page 4 the owner of record, the applicant and the person from whom the property was purchased, and the terms of the purchase or proposed purchase, including financing; -04 (6) If the property is income-producing, Form 1040 Schedule E or equivalent for the previous two (2) years; (7) Itemized operating and maintenance expenses for the previous two (2) years, and the depreciation deduction and annual cash flow before and after debt service, if any, during the same period; (8) The name of all mortgagees and the balance of all mortgages or other financing secured by the property and annual debt service, if any, for the previous two (2) years; (9) Any listing of the property for sale or rent, the price asked and offers received, if any, within the previous five (5) years; (10) The assessed value of the property for the previous two (2) assessment years; (11) The amount of real estate taxes assessed for the previous two (2) assessment years and whether or not they have been paid; (12) Any other information considered necessary by the Commission by the City Council to make a determination as to whether the property does or may yield a reasonable economic return to the property owner(s); (13) A statement of the applicant's efforts to obtain financing, tax incentives, preservation grants and other incentives sufficient to allow the applicant to earn a reasonable economic return from the property in its current condition, and after renovation of the existing property for continued use; and (14) A statement of the applicant's current maintenance and repair activities. If the application is for any building with one or more dwelling units, the Housing and Community Development Department may also make submissions concerning any or all of the above information, including strategies which would allow the property owner to earn a reasonable economic return on the property. The Commission shall consider such information. (e) Guidelines and Review Criteria for Applications by the State of Iowa or a Political Subdivision of the State: In determining whether to recommend approval or denial of the application, the Commission and the City Council may consider the information set forth in this subsection and any other information the Commission or the City Council considers relevant to balancing any conflicting governmental interests. Ordinance No. Page 5 -04 The Commission and the City Council may require that the applicant make submissions concerning any or all of the following information for the proposed site and suitable alternative location(s): (1) Fair market value of property; (2) Estimate of the cost of the proposed demolition, including hazardous material removal and remediation; (3) Fair market value of any property owned by the governmental body that could be sold if that site is not chosen for the project; (4) Property tax impact of removing private property from the tax rolls at the proposed location and all alternative locations; (5) Any other factors that contribute to making one location more suitable than others for the proposed use. (6) Any other information appropriate to evaluating how all conflicting governmental interests may be accommodated. (7) The need for the use in question, the effect on neighboring property, and the environmental impact of the proposed use. 11-4(f) Action by the City Council. At its next regular meeting following receipt of the recommendation of the Commission by the City Clerk, the City Council shall hold a hearing on the application for a demolition permit and shall approve, deny or withhold action on the application for a specified period not to exceed ninety (90) days from the date of application to the Building Services Department, unless the applicant requests an extension of such time. If the City Council fails to take action to approve, deny or withhold action on the application within the ninety (90) day period, or such extension as requested by the applicant, the building official shall issue the permit forthwith. The City Council may withhold action on the application to allow the City Council and the Commission an opportunity to investigate the historical or architectural value of the building to the community and to take such action as may be appropriate to encourage its preservation. However, nothing in this section shall authorize the withholding by the building official of a demolition permit for more than ninety (90) days from the date of application to the Building Services Department, unless the applicant requests an extension. At the hearing, the City Council shall consider the recommendation of the Commission, any information submitted to the Commission by the applicant, any information submitted to the City Council by the applicant, and, if the application is Ordinance No. Page 6 for any building with one or more dwelling units, any information submitted by the Housing and Community Development Department. -04 If the City Council finds that denial of the application would prevent the property owner from earning a reasonable economic return on the property or that the building does not have any historical or architectural significance to the community, the City Council shall approve the application. If the City Council finds that denial of the application would not prevent the owner from earning a reasonable economic return on the property and that the building has historical or architectural significance to the community, the City Council shall deny the application. If the applicant is the state of Iowa or a political subdivision of the state, the City Council shall also make a determination as to whether the denial of the application would prevent the state or the political subdivision from accomplishing its governmental functions as follows: (1) If, after weighing the interests and attempting to accommodate all conflicting governmental interests, the City Council finds that denial of the application would prevent the state or the political subdivision from accomplishing its governmental functions, the City Council shall approve the application. (2) If, after weighing the interests and attempting to accommodate all conflicting governmental interests, the City Council finds that denial of the application would not prevent the state or the political subdivision from accomplishing its governmental functions, the City Council may deny the application. If the City Council denies the application, it shall state its findings in writing and shall transmit a copy of such findings to the applicant. Section 2. This ordinance shall take effect immediately upon publication, as provided by law. Passed, approved and adopted this day of 2004. Terrance M. Duggan, Mayor Attest: Jeanne F. Schneider, City Clerk