AGENDA #5f

 

MEMORANDUM

 

To:                   Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Historic District Commission Response to Petition: Local Landmark Designation Ordinance

 

DATE:             March 22, 2004

 

 

INTRODUCTION

 

The attached report provides the Historic District Commission’s recommendation regarding Local Landmark Designation. A copy of the recommendation is attached.

 

BACKGROUND

 

On August 25, 2003, Mr. Matthew Brody on behalf of Margaret S. and W. Clay Hamner, petitioned the Town Council regarding local landmark designation for the Kennett-Hamner house on East Franklin Street requesting that the Town Council enact an ordinance addressing designation of landmarks, including criteria for 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 may designate a landmark through passage of a designation ordinance.  Owners of landmarks are then eligible to apply for an annual 50% property tax deferral (County and Town) as long as the property’s important historic features are maintained. 

 

On October 27, 2003, the Town Council received the Manager’s recommendation that the petition be referred to the Historic District Commission for comment. A copy of the October 27 Memorandum is attached (Attachment 2). The Council adopted a resolution requesting recommendation from the Historic District Commission on a Local Landmark Designation Ordinance.

 

DISCUSSION

 

Staff resources would be necessary for operation of a landmark designation program.  We anticipate that the program would require additional staff and funds for the Planning Department, for preparation of reports to the Town Council required for adoption of designation ordinances.  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.

 

Revenue would be lost with initiation of this program, through the reduction of property taxes for designation  properties.  We do not have definitive numbers about how much revenue would be relinquished with a landmark program.  The State estimates that there are over one thousand local landmark designations by local governments.  The intent of the property tax deferral is to offset the cost of maintaining and restoring old buildings.

 

The Council may 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.  We recommend that the Council take no action.

 

RECOMMENDATIONS

 

Historic District Commission Recommendation:  The Chapel Hill Historic District recommends that the Town Council not enact a new ordinance addressing designation of landmarks.  The Historic District Commission endorsed this response on February 12, 2004.  Attached is the Historic District Commission’s response from Chris Belcher, Chair of the Historic District Commission (Attachment 1).

 

Manager’s Recommendation:  We recommend that the Town Council not enact a new local landmark designation. 

 

 

ATTACHMENTS

 

1.         Memorandum from Historic District Commission (p. 3).

2.         October 27, 2003 Memorandum to Mayor and Council (p. 5).