(A) Purpose. The city recognizes that there may be circumstances in which the provisions of this subchapter could create an undue economic hardship. This section describes the criteria and process for property owners to demonstrate that such a hardship exists. The City Council may issue a certificate of economic hardship to allow alteration or demolition of a cultural resource listed on the Register or Inventory where denial of the same would create an undue economic hardship upon the owner.
(B) Threshold. For income-producing properties, the threshold for establishing economic hardship shall be that a reasonable rate of return cannot be obtained from the property in its present condition or if rehabilitated. For non-income-producing properties, the threshold for establishing economic hardship shall be that, without approval of the proposed demolition or remodel, the property owner would be deprived of all reasonable use of or return from the property. For proposed demolition, the commission must make the finding that the cultural resource cannot be remodeled or rehabilitated in a manner that would allow for a reasonable use of or return from the property.
(C) Applications. An application for a certificate of economic hardship shall be subject to a pro forma evaluation completed for the city by a qualified economic professional selected from a list of qualified economic professionals to be maintained by the city. The application shall be made on the prescribed form and be accompanied by the following information. The following would be applicable, unless the Director makes the written determination that such information is not required:
(1) The estimated market value of the property in its current condition with supporting documentation.
(2) The estimated market value of the property after completion of the proposed alteration or demolition with supporting documentation.
(3) Estimates of the costs of proposed alteration or demolition with supporting documentation.
(4) In the case of demolition, the estimated market value of the property after renovation of the existing property for continued use and an estimate from a qualified historic architect as defined in § 153.603 (Definitions) as to the economic feasibility of rehabilitation or reuse of the existing structure on the property.
(5) A rehabilitation report from a qualified structural engineer or historic architect as defined in § 153.603 (Definitions) of this subchapter as to the structural condition of the property and feasibility of stabilization and rehabilitation.
(6) For income-producing properties, information on annual gross income, operating and maintenance expenses, tax deductions for depreciation, and annual cash flow after debt service, current property value appraisals, assessed property valuations, and real estate taxes.
(7) Remaining balance on any mortgage or other financing secured by the property and annual debt service, if any, for the previous two years.
(8) 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) The amount paid for the property if purchased within the previous 36 months, 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.
(10) Any listing of the property for sale, rent, prices asked, and offers received, if any within the previous two years.
(11) Any other information the Director may reasonably require in order to determine whether or not the property may yield a reasonable return to the owners.
(F) Hearing required. The City Council shall hold a public hearing on all applications for a certificate of economic hardship; after which it may approve, conditionally approve, or deny the application. Such hearing may be held concurrently with any related application for an initial review or certificate of demolition.
(G) Findings. The City Council shall approve a certificate of economic hardship if it makes all of the following findings:
(1) Denial of the application would decrease the value of the subject property so as to deprive the owner of any reasonable economic return on the property.
(2) Sale or rental of the property is not financially feasible, when looking at the cost of holding such property for uses permitted in the applicable zone.
(3) Adaptive reuse of the property for lawful purposes is prohibited or impractical.
(4) Denial of the application would damage the owner of the property unreasonably in comparison to the benefit conferred on the community.
(H) Approval.
(1) 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 that requests one.
(2) No certificate of economic hardship shall become effective until the time to appeal its approval has expired.
(Ord. 636-C.S., passed 8-15-17)