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HomeMy WebLinkAbout2 - Study Session: Historic PreservationSeptember 7, 2011 STAFF REPORT To: Chairwoman and Members of the Planning Commission From: Jerome Olivera, AICP, Senior Planner - Development Services Subject: STUDY SESSION RE: HISTORIC PRESERVATION ISSUES — BAY THEATRE SUMMARY OF REQUEST After review and discussion among the Commission, provide direction to Staff as to how to proceed. DISCUSSION The issue of preserving structures within the City that have the potential for being classified as historic resources has been an ongoing item of concern by the Planning Commission, the City Council, City staff, and certain interested individuals within the community. Over the past 20 years, both the City Council and the Planning Commission have debated the matter in public, but these previous discussions have generally centered on a comprehensive or citywide preservation program. Recently, the Council has asked Staff to look into what mechanisms or programs might be employed for the preservation of the Bay Theatre. Staff has gathered a range of information on the matter and is presenting the Planning Commission with several options and mechanisms for discussion. Existing Provision in the Zoning Code Presently, the Zoning Code (Title 11) provides some relief for owners of "Locally Recognized Historic Buildings or Structures" via Section 11.4.40.055 (Nonconforming Historic Buildings) of the Seal Beach Municipal Code. Generally, the Zoning Code prohibits the physical expansion or alteration of nonconforming multi -unit residential structures and nonconforming non - residential structures. However, under § 11.4.40.055, the Planning Commission may issue a Conditional Use Permit (CUP), pursuant to Chapter 11.5.20, for the preservation, renovation, and rebuild of any locally recognized historic nonconforming building, provided it finds in addition to the findings required by Chapter 11.5.20: Development Permits, that: 1. The building has local historic significance; or ZAHistoric Preservation \Historic Preservation options PC Study Session 09- 07- 11.doc Study Session re: Bay Theatre Preservation Options Planning Commission Staff Report September 7, 2011 2. The architecture has local historic significance. Through this process, the Commission may authorize deviations from the Municipal Code under certain circumstances and may also impose any reasonable conditions to ensure that the subject structure is maintained and preserved. This Zoning Code provision requires consent of the property owner and is primarily focused at providing a mechanism for protecting /preserving a building or structure, yet allowing the property owner some flexibility in restoring, renovating, or rebuilding the structure. It is not compulsory and does not guarantee that a building or structure will be preserved. Mills Act Program The Mills Act Program is a state law (Govt. Code §§ 50280 - 50290) allowing cities to enter into contracts with the owners of "qualified historical properties ". For the purpose of the Mills Act, a qualified historical property is one that is listed in the National Register of Historic Places, located within a registered historic district, listed in any state, city, county, or city and county official register of historical or architecturally significant sites, places, or landmarks. Such contracts require a reduction of property taxes in exchange for the continued preservation of the property. The idea is that the tax savings is reinvested back into the property for the purpose of restoration, rehabilitation, and upkeep of that property. The Mills Act Program is administered and implemented by local governments and contracts are between the property owner and the local government granting the tax abatement. This program would require participation by the City and would allow the City to enter into Mills Act contracts with property owners who are interested in preserving their properties. It would also require that the property in question be designated 'historic', per State law. A Mills Act contract would result in a negligible decrease in tax revenue to the City, The contract length is 10 years, with an automatic annual renewal thereafter, unless either the City or the property owner cancels the contract. The program is also not compulsory and does not guarantee that a building or structure will be preserved in perpetuity, but only provides an incentive for a willing property owner to preserve or restore a historic structure. Preservation Easement Preservation easements are conservation easements whose principal purpose is to protect a property with historic, architectural, or archaeological significance. A preservation easement is considered a "partial interest" in real property — the property Historic Preservation options PC Study Session 09 -07 -11 2 Study Session re: Bay Theatre Preservation Options Planning Commission Staff Report September 7, 2011 owner continues to own the property but transfers the specific set of rights represented by the easement to a qualified nonprofit organization or governmental entity. Typically, a preservation easement protects against changes to a property that would be inconsistent with the preservation of the property, such as demolition of historic buildings, inappropriate alterations, or subdivision of land. The easement may also protect against deterioration by imposing affirmative maintenance obligations. The restrictions of such an easement are generally incorporated into a recordable preservation easement deed that becomes part of the title ( "runs with the land ") and this title interest is binding on the present and future owners. Typically, preservation easements address five basic issues: 1.) What physical features of the property are covered by the easement; 2.) What activities by a property owner that could damage or destroy significant historic or architectural features are absolutely prohibited; 3.) What activities are allowed, subject to the approval of the easement - holding organization. Some prohibit additions or alterations; others permit them if they are compatible with the historic character of the building or structure. An easement is a relatively flexible tool. It can be crafted to meet the specific characteristics of the property, the interests of the easement - holding organization, and the property owner's interest in having a property that will continue to have a viable productive use. As with other forms of preservation, a Preservation Easement requires a willing property owner and a local government interested in the preservation of the subject resource. Historic Preservation Overlay Zone A Historic Preservation Overlay Zone (HPOZ) is generally established for the purpose of protecting a defined area or an individual property therein, that embodies important elements of a social, economic, cultural, political, archeological or architectural history of that area. Before an HPOZ can be established, it is important to understand what the reasons for preservation within a community are; what resources should be protected; how those resources should be protected; and how the ordinance should be administered and enforced. An HPOZ is generally used when the desire is to preserve a certain district or entire neighborhood, rather than one or a few individual buildings, but if it is properly drafted, administered, and enforced, it will not only help to preserve important resources for generations to come, but will also give the local government access to federal and state funding; inject an element of certainty into the local development regulatory process; and can help foster necessary and compatible economic development. Historic Preservation options PC Study Session 09 -07 -11 3 Study Session re: Bay Theatre Preservation Options Planning Commission Staff Report September 7, 2011 The process to establish an HPOZ is usually comprehensive and potentially lengthy, but is oftentimes the most effective method in preserving and maintaining the historic character of an area or neighborhood. California `Point of Historical Interest' designation California Points of Historical Interest are sites, buildings, features, or events that are of local (City or County) significance and have anthropological, cultural, military, political, architectural, economic, scientific or technical, religious, experimental, or other value. To be eligible for designation as a Point of Historical Interest, a resource must meet at least one of the following criteria: The first, last, only, or most significant of its type within the local geographic region (City or County) Associated with an individual or group having a profound influence on the history of the local area. A prototype of, or an outstanding example of, a period, style, architectural movement or construction, or is one of the more notable works or the best surviving work in the local region of a pioneer architect, designer, or master builder. If a property is granted a Point of Historical Interest designation, it may be granted certain limited protections and environmental review may be required under CEQA if the property or structures are threatened by a project. Additionally, with such a designation the property owner may enter into a Mills Act contract and the local Building Official must grant code alternatives provided under the State Historic Building Code. While property owner consent is required for nomination as a Point of Historical Interest, it would appear as though the Bay Theatre property meets at least one of the criteria for designation and this option may be the most expedient, least restrictive means for providing some form of protection for the property. il11GC 1 While Staff has provided brief information on several types of preservation mechanisms, the success of historic preservation ultimately depends on the willingness of local government to adopt and enforce preservation mechanisms and the consent and participation of private property owners who might ultimately be affected by such mechanisms. Each of the preceding programs and mechanisms described offer Historic Preservation options PC Study Session 09 -07 -11 4 Study Session re: Bay Theatre Preservation Options Planning Commission Staff Report September 7, 2011 varying degrees of protection and, in some cases, offer financial and other incentives to the local government and property owner. It is Staff's opinion that the `Point of Historical Interest' designation may be the most appropriate for the Bay Theatre property, as the property appears to meet the criteria for designation, could potentially provide a financial incentive to the property owner, and would provide some degree of protection from demolition and major redevelopment of the site. At this point, Staff is uncertain as to whether the current property owner would be amenable to any of the programs and mechanisms described herein, but if the Planning Commission, and ultimately the City Council, wishes to pursue preservation of the property, Staff can initiate the discussion with the property owner. RECOMMENDATION After review and discussion among the Commission, provide direction to Staff as to how to proceed regarding this matter. For: September 7, 2011 Y Jer melivera, AICP, Senior Planner ve�o ment Services Department Historic Preservation options PC Study Session 09 -07 -11 5