A. The Commission shall issue a “certificate of economic hardship” upon determination that the failure to issue a “certificate of appropriateness” has denied, or will deny, the owner of a landmark or of a property within a preservation district all reasonable use of, or return on, the property. Application for a “certificate of economic hardship” shall be made on a form and in the manner as prescribed by the Commission. The Commission may schedule a public hearing concerning the application and provide notice in the same manner as prescribed in § 15.40.110 and conduct the hearing in the same manner as prescribed in § 15.40.120.
B. The Commission may adopt procedural rules concerning the types of information, evidence or expert testimony that it considers necessary to make a determination on an application for a “certificate of economic hardship.” The following may be included:
1. An estimate of the cost of the proposed construction, 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 issuance of a “certificate of appropriateness”;
2. A report from a licensed engineer or architect, licensed in the State of Illinois, with experience in rehabilitation as to the structural soundness of any structures on the property for rehabilitation;
3. Estimated market value of the property in its current condition; after completion of the proposed construction, alteration, demolition or removal; after any changes recommended by the Commission; and, in the case of a proposed demolition, after renovation of the existing property for continued use;
4. Any substantial decrease in the fair market value of the property as a result of denial of the “certificate of appropriateness” and any substantial decrease in the pre-tax return to owners of record or other investors in the property as a result of the denial of the “certificate of appropriateness”;
5. In the case of a proposed demolition, an estimate from a licensed architect, developer, real estate consultant, appraiser, or other real estate professional experienced in rehabilitation as to the economic feasibility of rehabilitation or reuse of the existing structure on the property;
6. 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 property was purchased, and any terms of financing between the seller and buyer, and any consideration by the owner as to profitable adaptive uses for the property;
7. 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 before and after debt service, if any, during the same period;
8. Remaining balance on any mortgage or other financing secured by the property and annual debt service, if any, for the two previous years, and all appraisals obtained within the previous two years by the owner or applicant in connection with the purchase, financing or ownership of the property;
9. Any listing of the property for sale or rent, price asked and offers received, if any, within the previous two years;
10. Assessed value of the property according to the two most recent quadrennial assessments;
11. Real estate taxes for the previous two years;
12. Form of ownership or operation of the property, whether sole proprietorship, for-profit or not-for-profit corporation, limited partnership, joint venture, or other; and
13. Any other information, including the income tax bracket of the owner, applicant or principal investors in the property considered necessary by the Commission to make a determination as to whether the property does yield or may yield a reasonable return to owners.
C. Determination of Economic Hardship. Within one hundred twenty (120) days from receiving a request for a “certificate of economic hardship,” the Commission, upon a determination that the denial of a “certificate of appropriateness” has denied, or will deny, the owner of a landmark or of a property within a preservation district of all reasonable use of, or return on, the property, shall undertake one or the other of the following actions:
1. Offer the owner of the property reasonable financing, tax or other incentives sufficient to allow a reasonable use of, or return on, the property; or
2. Offer to purchase the property at a reasonable price or institute eminent domain proceedings pursuant to Article VII of the Illinois Code of Civil Procedure; or
3. Issue a “certificate of appropriateness” for the proposed construction, alteration, demolition or removal. Written notice of the determination shall be provided in the same manner as required by § 15.40.220E.
D. Appeals. A denial of a “certificate of economic hardship” is an administrative decision as defined in § 3-101 of the Administrative Review Law, and it shall be subject to judicial review pursuant to provisions of said law and all amendments and modifications thereof, and the rules thereto. The McHenry County Board may receive comments on the contents of the record. Such appeal must be made within fifteen (15) days of final denial of “certificate of economic hardship.”
(Ord. O-9110-1200-49, Art. 4, § 3, passed 10-15-1991)