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
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Study Session re: Bay Theatre Preservation Options
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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
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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.
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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.
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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
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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
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