AGENDA #4h

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Response to Petition: Local Landmark Designation Ordinance

 

DATE:             October 27, 2003

 

 

INTRODUCTION

 

This report provides a response to a petition received on August 25, from Mr. Matthew Brody on behalf of Margaret S. and W. Clay Hamner regarding local landmark designation for the Kennette-Hamner house on East Franklin Street. The petitioner is requesting that the Town Council enact an ordinance addressing designation of landmarks, including criteria for designation.

 

We recommend that the Town Council refer the petition to the Historic District Commission for review and recommendation.

 

BACKGROUND

 

What is Local Landmark Designation?

 

The Town Council may create local landmark designation to be applied to individual buildings, structures, sites, areas or objects which are studied by the Historic District Commission and judged to have special historical, architectural, archaeological or cultural value. Such designation would signify that the property deserves recognition and protection. The Town Council designates the landmarks through passage of designation ordinances. Owners of landmarks are eligible to apply for an annual 50% property tax deferral (county and town) as long as the property’s important historic features are maintained. Recapture penalties may apply if the owner destroys the property or damages its historic value. Owners of landmarks are required to obtain a Certificate of Appropriateness from the Historic District Commission before making substantial changes or additions to a property, before beginning new construction, or before demolishing or relocating a structure.

 

What is the process for designation?

 

Before the Town Council could designate a landmark, the existing Historic District Ordinance (Article 3.6.2 of the Land Use Management Ordinance), would have to be amended to provide for designation of landmarks. The amended ordinance would set forth the procedures for landmark designation and would provide for design review of landmarks in the same way that changes to structures in districts are reviewed now.

 

If the ordinance is amended to provide for landmarks, the Town Council could then consider particular properties for designation.

 

The process for designation of particular properties is set forth in State law as follows: A report on the proposed landmark is prepared documenting its special significance and integrity. The Historic District Commission forwards the report to the Department of Cultural Resources for review and comment. The Historic District Commission and Town Council hold a joint or separate public hearing(s) on the proposed designation. The Town Council may then adopt an ordinance of designation as proposed, adopt it with amendments, or may reject the designation.

 

DISCUSSION

 

What resources would be necessary for a landmark designation program?

 

We anticipate that the program would require additional staff and funds for the Planning Department. The preparation of reports to the Town Council required for adoption of designation ordinances would be time-consuming. Because of the financial benefit to the property owner, we would expect that numerous property owners would seek local landmark designation. We anticipate that additional funds would be necessary in order to hire consultants to prepare landmark documents and reports to the Department of Cultural Resources for review and comment.

 

How much revenue would be lost?

 

A key question relates to how much revenue would be relinquished in a landmark program. Definitive numbers are not available, although the State estimates that there are now over one thousand local landmark designations by local governments. The State typically reviews 30 new reports for landmark designations every year. The intent of the property tax deferral is to offset the cost of maintaining and restoring old buildings, particularly those not protected by a Historic District Overlay Zoning District.

 

We can refer to the Kennette-Hamner house as an example. The Kennette-Hamner house was valued at $910,397 in 2001. Property taxes paid in 2002 were $14,338.76. Property taxes due for 2003 are $14,548.14. Based on the current tax rate of $1.598 (for schools, 20 cents per $100; Town 55 cents per $100; and County 85 cents per $100), the loss in annual tax revenues for the Town, County, and schools would be estimated at $7,275.

 

Typically landmark status is reserved for the most significant properties which stand out as having integrity on their own when compared with other buildings of the same type and style and period. Whether the Kennette-Hamner house could be determined to be a locally significant property in Chapel Hill is undetermined. Chapel Hill is in a position to institute a landmark program because the Town has a current inventory in place which has identified significant historic structures in and outside of current Historic Districts.

 

RECOMMENDATION

 

We recommend that the Town Council refer the petition to the Historic District Commission for review and recommendation. Upon receiving the report from the Historic District Commission, the Town Council could choose to call a Public Hearing to consider a possible amendment to the Land Use Management Ordinance to add the local landmark provisions or could choose to take no action. Adoption of the attached resolution would refer the request to the Historic District Commission for recommendation.

 

ATTACHMENT

 

  1. August 14, 2003 Petition from Matthew Brody (p. 5).

 

A RESOLUTION REQUESTING RECOMMENDATION FROM THE HISTORIC DISTRICT COMMISSION ON A LOCAL LANDMARK DESIGNATION ORDINANCE (2003-10-27/R-5)

 

WHEREAS, the Town Council has received a petition from Mr. Matthew Brody, requesting that Town Council adopt an Ordinance addressing designation of landmarks, including criteria for designation; and

 

WHEREAS, the Town Council finds that there is possible public interest associated with creating a Local Landmark Designation Ordinance;

 

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council directs the Historic District Commission to further investigate the petition and to return to the Council with a report of their research and recommendation.

 

This the 27th day of October, 2003.