The commission may issue a certificate of economic hardship to allow demolition, alteration, or relocation of a designated landmark or contributing property when it finds that denial of an enabling certificate of appropriateness would cause undue economic hardship for the property's owner(s). Any landmark or contributing property that is otherwise subject to a specific plan shall not be eligible for a certificate of economic hardship under this section.
A. Applications: An owner of a historic property may request a certificate of economic hardship by filing a written application with the department of community development. The application shall be completed on a form provided by the department, and shall include all required information and payment of applicable fees to process the application and fund a peer review, by one or more appropriate consultants selected by the city, of the information submitted by the applicant. The application shall also include the following information:
1. The estimated market value of the property in its current condition.
2. The estimated market value of the property after completion of the proposed demolition, alteration, or relocation.
3. The estimated costs of the proposed demolition, alteration, or relocation.
4. A report from a licensed engineer or architect with expertise in rehabilitation as to the structural soundness of any structures on the property and their suitability for rehabilitation.
5. If the property owner contends that there is a dangerous or unsafe condition on the property, a report from an expert consultant identifying the condition, its cause, and all feasible rehabilitation, restoration, stabilization, and/or reconstruction measures that may be required to abate the condition.
6. The estimated costs of all feasible rehabilitation, restoration, stabilization, and/or reconstruction measures that may be required to eliminate existing structural deficiencies or unsafe conditions on the property.
7. The estimated market value of the property if the owner undertook all feasible rehabilitation, restoration, stabilization, and/or reconstruction measures that may be required to eliminate all existing structural deficiencies or unsafe conditions on the property.
8. For income producing properties located outside of areas of the city zoned for one-family development, information regarding annual gross income, operating and maintenance expenses, tax deductions for depreciation, annual cash flow after debt service, current property value appraisals, assessed property valuations, and real estate taxes.
9. An estimate of the potential economic benefits to the property owner of all development incentives and benefits readily available to the owner under this article.
10. Any other information the director may reasonably require in order to determine the present market value of the property, including, but not limited to:
a. All appraisals obtained within the previous two (2) years by the owner or applicant in connection with the purchase, financing, or ownership of the property;
b. The amount paid for the property if purchased within the previous thirty six (36) months, the date of purchase, and the party from whom purchased, including a description of the relationship, if any, between the owner or applicant and the person from whom the property was purchased, and any terms of financing between the seller and buyer; and
c. Any listing of the property for sale or rent, and prices asked, and offers received, if any within the previous two (2) years.
B. Public Hearing: Once the director determines that an application for a certificate of economic hardship and any applicable peer review(s) thereof are complete, the director shall schedule a public hearing before the commission concerning the application to occur within sixty (60) days, at which the commission may approve, conditionally approve, or deny the application. Such hearing may be held concurrently with any related application for a certificate of appropriateness. The time, place, and purpose of the public hearing shall be given by written notice sent via certified mail, return receipt requested, to the owner or owner's designated representative at least fifteen (15) days prior to the date of the hearing.
C. Findings: The commission shall not approve an application for a certificate of economic hardship unless it makes all of the following findings:
1. The current market value of the subject property is unconscionably less than the projected net value of the property after demolition, alteration, or relocation, based on the estimated market value of the property after demolition, alteration, or relocation and the estimated costs of demolition, alteration, or relocation; and
2. The projected net value of the subject property if all required rehabilitation, restoration, stabilization, and/or reconstruction measures are undertaken, based on the estimated market value of the property after rehabilitation, restoration, stabilization, and/or reconstruction, the estimated costs of rehabilitation, restoration, stabilization, and/or reconstruction, and the estimated economic benefits of all development incentives and benefits readily available under this article, is unconscionably less than the projected net value of the property after demolition, alteration, or relocation, based on the estimated market value of the property after demolition, alteration, or relocation and the estimated costs of demolition, alteration, or relocation.
D. Conditions Of Approval: If the commission approves an application for a certificate of economic hardship, it may condition its approval as it deems appropriate. Such conditions of approval may specifically include, but are not limited to, revocation of any previously granted historic incentive permit concerning the subject property.
E. Copies Of Certificate: Upon approval, copies of the certificate of economic hardship shall be forwarded to the applicant, the building official, the director, and any other department or agency upon request.
F. Effectiveness Of Certificate: No certificate of economic hardship shall become effective until the time to appeal its approval has expired.
G. Extensions Of Time Periods: Any period of time to act specified in this section may be extended by the commission or the director upon request of the owner of the subject historic property. Such a request shall be made in writing or on the record at a noticed hearing. (Ord. 15-O-2682, eff. 11-19-2015)