A. Where application is made for a Certificate of Appropriateness to demolish a landmarked structure or structure within a designated Historic District, the respective Historic District Commission must grant the application and issue the certificate when one or both of the following conditions are found to exist:
1. The structure for which demolition is sought contains no features of architectural or historic significance, and it does not contribute to maintaining the character of the Historic District; or
2. There is no reasonable economic return for the structure as it exists and there is no feasible alternative to demolition submitted to the applicant by concerned organizations or individuals who wish to preserve the structure.
B. Economic Hardship Standards and Criteria.
The Historic District Commission, in making a determination of economic hardship, may consider any relevant information, including but not limited to the following standards and criteria:
1. Alternative uses and the economic return they will earn in relation to all the following:
a. 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 Historic District Commission for changes necessary for the continued use of the building and the issuance of a Certificate of Appropriateness;
b. A report from a licensed engineer or architect with experience in rehabilitation as to the structural soundness of the structures on the property and their suitability for rehabilitation, including any existing evidence that deterioration has progressed to the extent that rehabilitation is not practical;
c. Estimated market value of the property in its current condition, based on an independent MAI-certified appraiser; after completion of the proposed redevelopment, alteration, demolition or removal; and after changes recommended by the Historic District Commission for the renovation of the existing property for continued use; and
d. 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 the existing structure on the property, taking into consideration any existing evidence that deterioration has progressed to the extent that rehabilitation is not practical.
2. The current economic return on the property in relation to all the following:
a. 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 property was purchased;
b. 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;
c. Real estate taxes for the previous two years and assessed value of the property according to the most recent assessed valuation; and
d. All appraisals obtained within the previous two years by the owner or applicant in connection with the purchase, financing or ownership of the property.
3. 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:
a. Any real estate broker or firm engaged to sell or lease the property;
b. Reasonableness of the price or rent sought by the applicant; and
c. Any advertisements placed for the sale or rent of the property.
4. Economic incentives and/or funding available to the applicant through federal, state, city or private programs.
5. Other information considered by the respective Historic District Commission to be significant in determining whether the property does yield or may yield a reasonable return to the owner.
C. Alternatives To Demolition Submitted By Others. In deciding on the feasibility of an alternative to demolition, the Historic District Commission must find that the alternative plan meets the following requirements:
1. It contains a credible short-term and long-term program for the protection and use of the building;
2. It contains financial and architectural plans prepared by architects, engineers, real estate professionals, and other persons experienced in the rehabilitation and reuse of historic buildings; and
3. It has been submitted to the applicant as a good faith proposal containing an offer to enter into a contract at a price that reflects the fair market value of the property based upon three independent MAI-certified appraisers.
D. Additional Application Requirements. An applicant must meet with the Historic District Commission or the Plan Commission staff, and the applicant must then submit evidence on the following standards and criteria.
1. For a demolition application to be considered by the Historic District Commission, the application must contain sufficient information so that the Historic District Commission may adequately analyze the application in relation to its standards and criteria and then make a factual decision on the application.
2. The application shall include photographs and a written description of the present condition of the structure for which demolition is sought. The applicant shall include information about any changes in the condition of the structure during the previous two years.
3. At the initial meeting with the applicant, the Historic District Commission or the staff must indicate the information the Historic District Commission will need for a valid application.
4. For applications based on a lack of reasonable economic return, the applicant has the burden of showing that the property in question is incapable of earning a reasonable economic return in the absence of the proposed demolition. The showing must be made in accordance with the standards and criteria set forth in Section 1111.1108B.
5. The Planning Director must notify the applicant of any deficiencies in the documentation or other evidence provided.
6. Failure of the applicant to submit the required documentation and/or evidence will be construed as a failure on the part of the applicant to meet that standard for which the documentation and/or evidence is lacking.
7. After receipt of a completed application in which all required information is attached, the Historic District Commission must make a determination on the applicant's submission in accordance with the time frames set forth herein.
E. The Plan Commission staff must evaluate each application in accordance with the standards and criteria contained in Section 1111.1108A. and Section 1111.1108B. and must provide a written evaluation and report. The report must be presented to the respective Historic District Commission on or before the Historic District Commission's initial hearing.
F. The respective Historic District Commission must hold an initial hearing on the application as set forth in Section 1111.1107. The Historic District Commission, at the initial hearing, may delay a determination on the application and may impose a waiting period of at least 30 days and not longer than 9 months upon a finding that the structure is of value to the Historic District and that alternatives to demolition may be feasible and should be actively pursued by both the Historic District Commission and the applicant. This finding may include written recommendations to the applicant.
G. Upon the imposition of a waiting period, the Historic District Commission must undertake meaningful and continuing discussions during the waiting period in order to find a means of preserving the structure.
1. The Historic District Commission and applicant must investigate the feasibility of all means of preserving the structure. During this period the Historic District Commission and the applicant must make every reasonable effort to find a demolition alternative for that structure.
2. If the Historic District Commission and applicant do not agree on a means of preserving the structure at the initial meeting, then they must continue to undertake meaningful and continuing discussions at least every 30 days after the initial meeting. During these meetings, the Historic District Commission must give written notice to the applicant when the Historic District Commission believes that the structure may be saved if the applicant agrees to a longer waiting period.
H. The Historic District Commission may develop its own information on the standards and criteria in Section 1111.1108, and this information must be made part of the record on the application.
I. The Historic District Commission must announce at the initial public hearing that further evidence or documentation from any interested party may be made part of the record by submitting such information to the Planning Director by a date certain. These materials may include one or more plans for an alternative to demolition prepared by concerned organizations or individuals. The Planning Director must transmit any such information received to the Historic District Commission and the applicant.
J. When the demolition application is first received, the Historic District Commission must seek the help of neighborhood leaders and suggest that they and the Historic District Commission work together on developing an alternative to demolition. The Historic District Commission shall arrange one or more meetings between the applicant and any organizations and individuals working on an alternative to demolition.
K. The Historic District Commission may cause to be established a three-person economic review panel. The review panel will be comprised of three real estate and redevelopment experts knowledgeable in the economics of renovation, redevelopment and other aspects of rehabilitation.
1. The panel will consist of one person selected by the Historic District Commission, one person selected by the applicant and one person selected by the first two appointments. If the first two appointments cannot agree on a third person, the third appointment will be selected by the Planning Director.
2. Within 60 days after the economic review panel is established and before the end of the 6th month of the waiting period, the panel must review the evidence and complete an evaluation of the economic return issue, applying the standards and criteria set forth in Section 1111.1108B. It must forward a written report on this evaluation to the Historic District Commission.
L. If, after reviewing all of the evidence, the Historic District Commission finds as follows below, then the Historic District Commission must issue the Certificate of Appropriateness, conditionally or otherwise. If the Historic District Commission finds that the standards, criteria, and requirements are not satisfied, the Certificate of Appropriateness will be denied. For the Certificate to issue, the Historic District Commission must find that:
1. The standards and criteria set forth in Section 1111.1108B. are satisfied; and
2. There is no feasible alternative to demolition, per the requirements of paragraph C. above.
M. If the applicant or a representative fails to meet with the Historic District Commission at the times specified, or to participate in a meeting arranged by the Historic District Commission, then the Historic District Commission may deny a Certificate of Appropriateness.
N. During the waiting period, the owner of such structure must maintain or mothball the structure to prevent further deterioration. If the application for a Certificate of Appropriateness is denied, the applicant must develop a program for continuing maintenance for the structure to ensure that the deterioration of the structure is not caused by the neglect of the structure by its owner or by a tenant. Such program must address the condition of the structure, the money currently available for repairs and maintenance, and any funds or in-kind assistance that may be available from interested third parties.
P. After each demolition of a landmarked structure or within a Historic District, the Historic District Commission must prepare a brief report on that structure giving the reasons why the demolition took place. The report must be given to the Plan Commission and interested neighborhood organizations. At the end of each year the Historic District Commission must prepare a report summarizing the demolitions that year and the reasons for these demolitions. These summaries must be given to the Mayor, City Council, the Plan Commission and interested neighborhood organizations.
(Ord. 170-04. Passed 3-23-04.)