(A) If preservation of a historic property may result in substantial economic hardship, the applicant may submit evidence for consideration by the Historic Preservation Commission. Substantial economic hardship does not include an applicant's inability to maximize the return on his or her investment. Deterioration of a historic property due to neglect by its owner does not create the basis for a finding of substantial economic hardship.
(B) The Commission shall consider the following criteria to determine the existence of substantial economic hardship:
(1) Denial of a certificate will result in a substantial reduction in the economic value of the property;
(2) Denial of a certificate will result in a substantial economic burden on the applicant because the applicant cannot reasonably maintain the property in its current form;
(3) No reasonable alternative exists consistent with the architectural standards and guidelines for the property;
(4) The owner has been unable to sell the property using best efforts.
(C) Documentation of economic hardship. To prove economic hardship, the applicant shall submit sufficient information to enable the Commission to make an accurate assessment of economic conditions affecting the application. In considering cases of economic hardship, the Commission may solicit expert testimony or request that the applicant submit any items it needs, including but not limited to the items below. The level of documentation may vary as appropriate to each case; however, the Commission's assessment shall be based solely on the property's economic fundamentals and not the financial capacity of the owner.
(D) Alternative uses and the economic return they will earn in relation to the following:
(1) Estimate of the cost of the proposed redevelopment, alteration, demolition or removal and an estimate of any additional cost that would be incurred to comply with the recommendations of the Commission for changes necessary for the continued use of the property and the issuance of a certificate of appropriateness;
(2) A report from a licensed engineer or architect with experience in rehabilitation as to the structural soundness of any buildings on the property and their suitability for rehabilitation including any existing evidence that deterioration has progressed to the extent that rehabilitation is not practical;
(3) Estimated market value of the property in its current condition; after completion of the proposed redevelopment, alteration, demolition or removal; and after changes recommended by the Commission for the renovation of the existing property for continued use;
(4) Testimony from a third party architect, developer, appraiser or other real estate professional experienced in rehabilitation as to the economic feasibility of rehabilitation or reuse of existing buildings on the property taking into consideration any existing evidence that deterioration has progressed to the extent that rehabilitation is not practical.
(E) The current economic return on the property in relation to the following:
(1) The amount paid for the property, the date of purchase, and the party from whom purchased, including a description of the relationship, if any, between the owner of record or applicant and the person from whom the historic property was purchased;
(2) If the property is income-producing, the annual gross income from the property for the previous two years; itemized operating and maintenance expenses for the previous two years; and depreciation deduction and annual cash flow after debt service, if any, during the same period;
(3) Real estate taxes for the previous two years and assessed value of the property according to the most recent assessed valuation;
(4) All appraisals obtained within the previous two years by the owner or applicant in connection with the purchase, financing or ownership of the property.
(F) The property is not able to be sold, considered in relation to any listing of the property for sale or rent, price asked, and offers received, if any, within the previous two years, including testimony and relevant documents regarding:
(1) Any real estate broker or firm engaged to sell or lease the property;
(2) Reasonableness of the price or rent sought by the applicant;
(3) Any advertisements placed for sale or rent of the property;
(4) Economic incentives and/or funding available to the applicant through federal, state, Village or private programs.
(Res. R-2628-20, passed 2-17-20)