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Home My WebLink About05/27/2009 AGENDA m FILE <sDI'17 @(? ~~~~~OO CITY COUNCIL 345 6th Street, Suite 600, Bremerton, WA 98337 D Phone (360) 473-5280 MAY 27, :2009 CITY COUNCIL STUDY SESSION 5:00 PM - STUDY SESSION in COUNCIL CONFERENCE ROOM 603 The Study Session is open to the public but there will be no opportunities for input or participation; no action will be taken, and the content of these items is subject to change... A. NO DISCUSSION PLANNED - The following items are budgeted items or have been reviewed by the appropriate Council Committee; and will be placed on the next Council Meeting Agenda for action... 1. Proposed Resolution temporarily extending Cable Television System Franchise with Wave Division Holdings, LLC - Carol Etgen, City Clerk 2. Proposed Public Hearing and Ordinance on Annexation, and designating Zoning for territory in the South Kitsap Industrial Area Urban Growth Area known as "SYLVAN PRODUCTS, INC" - Lindsey Sehmel, Department of Community Development; and Will Maupin, Public Safety, Parks, & Planning Committee Chair 3. Proposed Public Hearing and Ordinance on Annexation, and designating Zoning for territory in the South Kitsap Industrial Area Urban Growth Area known as "PAIJE, PALMER, ALPINE, & ESSLINGER" - Lindsey Sehmel, Department of Community Development; and Will Maupin, Public Safety, Parks, & Planning Committee Chair 4. Proposed Ordinance revising and correcting the City Boundaries of streets, roads or highway rights- of-way located within the City by approving a new legal description of the boundary of the City of Bremerton - Michael Mecham, City Engineer; and Brad Gehring, Public Works Committee Chair B. FULL DISCUSSION ITEMS 5. Proposed Public Hearing and Resolution approving amendments to the 2008 and 2009 Community Development Block Grant (CDBG) Funding Recommendations - Marie Vila, CDBG Administrator; Phedra Elliott, CDBG Coordinator; and Will Maupin, Public Safety, Parks, & Planning Committee Chair 6. Proposed Public Hearing and Ordinance adopting the Manette Neighborhood Center Sub Area Plan; and amending Section 20.80 of the Bremerton Municipal Code (BMC) - Lindsey Sehmel, Department of Community Development; and Will Maupin, Public Safety, Parks, & Planning Committee Chair 7. Presentation on "Local Historic Preservation" - Megan Duvall, Certified Local Government Coordinator, Washington State Department of Archeology & Historic Preservation (Information Only... Approx. 30- minutes) 8. General Council Business (if necessary and as time allows) II Americans with Disabilities Act (ADA) accommodations provided upon request. Those requiring special accommodations should contact the City Clerk's Office at (360) 473-5323 by noon on the Monday preceding the Council meeting. Ii 6la. /o? - :c-+~W\ Wo. 7 Welcome! The Department of Arch~eology and Historic Preservation is Washington State's primary agency with knowledge and expertise in historic preservation. We advocate for the preservation of Washington's irreplaceable historic and cultural resources - significant buildings, structures, sites, objects, and districts - as assets for the future. Through education and information, we provide leadership for the protection of our shared heritage. Increasingly, preservation is recognized as a tool for economic development. It is the cultural and historic resources of a community that tells the story of its past, a past that makes any single community distinct from all other places. Preserving these physical reminders of our past creates a sense of place, the result being an environment that instills civ,c pride and community spirit. We are committed to assisting you in the identification, evaluation and protection of Washington's cultural heritage. Please feel free to contact us anytime with any question you may have. Certified Local Government & Survey Coordinator Megan Duvall email: Megan.DuvaRl@dahp.wa.gov (360) 586-3074 Certified Local Government Programs, Certified Local Government Grants, Historic Property Survey & . Inventory. ] I . ')':.-~-..-." ='"'<'1 ~-,:-;:1r'/:' (~~~^HRl~6~~g~ 8- ...... ~~T{)~<::!,_RESE!_\f/l.lION . . .. IIP/eCJ ~ ?(lii,Sf!~p~ ii!... '\iilIfe Archaeology I Historic Sites I Documents/forms I Environmental Review Local Government I About Us I Links I Home Department of Archaeology & liistoric Preservation 1063 South Capitol Way, Suite 106 Olympia WA 98501 Phone: 360-586-3065 Fax: 360-586-3067 Local Government: Overview Washington State's Certified Local Government (CLG) Program helps local governments to actively participate in preserving Washington's irreplaceable historic and cultural resources as assets for the future. This unique nationwide program of financial and technical assistance was established by the National Historic Preservation Act. In Washington, it is implemented and administered by the Department of Archaeology and Historic Preservation (DAHP). Local governments that establish a historic preservation program meeting federal and state standards are eligible to apply to the State Historic Preservation Officer (SHPO) and the National Park Service for certification. A local government that receives such certification is known as a "Certified Local Government" or "CLG." Please click here for a listing of Washington's CLGs. Responsibilities of a CLG include maintaining a historic preservation commission, surveying local historic properties, enforcing state or local preservation laws, reviewing National Register Nominations, and providing for public participation in historic preservation activities. Obtaining status as a CLG may help a local government encourage, develop, and maintain its local preservation efforts in coordination with its development plans. In addition, CLGs may apply for special grants from the SHPO; receive recognition for their preservation expertise by local, state, and federal agencies; obtain technical assistance and training from the SHPO; participate in the review of nominations to the National Register of Historic Places; participate in the national historic preservation assistance network; regularly exchange information with the SHPO; and participate in statewide preservation programs and planning. Certified Local Governments and DAHP share in the role as primary agencies with knowledge and expertise in historic preservation. Together, CLGs and DAHP advocate for the preservation of historically significant buildings, structures, sites, objects, and districts. Through education and information, these programs provide leadership for the protection of our shared heritage. For more information contact Megan Duvall, Certified Local Government Coordinator at (360) 586- 3074 or email: Megan.Duvall@dahp.wa.gov. The CLG Program's Purpose and Objectives: . Encourage historic preservation at the local level through local governmental sponsorship; . Encourage local governments to follow the Secretary of the Interior's Standards & Guidelines for Archaeology and Historic Preservation in their historic preservation programs; . Provide training and technical assistance through the State's historic preservation office; . Provide funding to underwrite various historic preservation activities. . Create a federal, state, and local governmental partnership in historic preservation . Each state's historic preservation office administers a Certified Local Government Program on behalf of the National Park Service. For more information about Washington's CLG Program, contact: Megan Duvall CLG Program Coordinator (360) 586-3074 or Megan.Duvall@dahp.wa.gov BENEFITS OF BECOMING A CERTIFIED LOCAL GOVERNMENT . Special grants from the State Historic Preservation Officer . Local historic preservation expertise recognized by state and Federal agencies . Technical assistance and training from the State Historic Preservation Office . Participation in nominations to the National Register of Historic Places . National historic preservation assistance network: publications, professional assisitance . Information exchange with the State Historic Preservation Office . Participation in statewide preservation programs and planning RESPONSIBILITIES OF A CERTIFIED LOCAL GOVERNMENT . Maintain a historic preservation commission . Survey local historic properties . Enforce state or local preservation laws . Provide for public participatio,n . Other functions delegated or required by the state WHAT IS.A CERTIFIED LOCAL GOVERNMENT? " The National Historic Preservation Act established a nationwide program of financial and technical assistance to preserve historic propertiesn buildings, structures, sites, neighborhoods, and other places of impor- tance in the historical and cultural life of the nation. A local government can participate directly in this program when the State Historic Pres- ervation Officer (SHPO) certifies that the local government has estab- lished its own historic preservation commission and a program meeting Federal and state standards. A local government that receives such certification is known as a "Certified Local Government" or "CLG". WHAT ARE THE BENEFITS OF BECOMING A CER- TIFIED LOCAL GOVERNMENT? . Certified Local Governments are eligible to apply for specially ear- marked grants from the SHPO. At least ten percent of the annual Historic Preservation Fund grant made to the State Historic Preserva- tion Office--Washirigton's Office of Archaeology and Historic Preserva- tion (OAHP) under the National Historic Preservation Act is distributed among CLGs. . Certified Local Governments are recognized by Federal and state agencies as having special ex- pertise in historic preservation. . Certified Local Governments receive technical assistance and training frorry OAHP. Such training and assistance can help a community pursue its preservation goals and its plans for development. WHY SHOULD A LOCAL GOVERNMENT PARTICIPATE IN 'THE CLG PROGRAM? Obtaining status as a CLG can help a local government encourage, develop, and maintain its local preservation efforts in coordination with its development plans. No one benefits as much from the preservation of local historic sites and buildings ,nor suffers as much by their destruction as the citizens of a community. It is they who live and work in historic homes and neighborhoods, who see the effects of rehabilitation projects every day, and who enjoy the economic and social benefits that rehabilitation of the community's historic properties bring. It is they who feel most personally the loss of a treasured local landmark. Each historic building and structure represents a community investment that should not be discarded lightly; maintaining and rehabilitating older buildings and neighborhoods can mean savings in time, money, and raw materials. The preservation ofa community's his- torical resources will enrich the lives of its inhabitants now and in the future. WHAT IS A CERTIFIED LOCAL GOVERNMENT REQUIRED TO DO? · Enforce state or local legislation for the designation and protection of historic properties, · Establish and maintain a qualified historic preservation commission, · Maintain a system for the survey and inventory of historic properties in coordination with the State Historic Preservation Office, · Provide for public participation in its activities, and · Satisfactorily perform the responsibilities delegated to it by the State Historic Preservation Office. The National Historic Preservation Act requires that a Certified Local Government: WHAT IS THE NATIONAL REGISTER OF HISTOR- IC PLACES, AND WHAT IS THE INVOLVEMENT OF CLGS IN THE PROCESS OF NOMINATING AND REVIEWING NOMINATIONS? The National Register is a working list of properties determined to be of national, state, or local significance and worthy of preservation and consideration in planning or development decisions. The .National Register is maintained by the National Park Service in Washington D.C. Properties are listed in the National Register primarily through nominations by State His- toric Preservation Officers (SHPOs). The significance of potential entries in the National Register are reviewed against established criteria. These criteria, established by the Na- tional Park Service, are worded in a flexible manner to provide for the diversity of resourc- es across the country. Sources of further information concerning the National Register are listed at the end of this booklet. Certified Local Governments participate in the National Register nomination process by reviewing all nominations of properties in their jurisdictions. Before a property within the jurisdiction of a Certified Local Government may be nominated by the SHPO for inclusion on the National Register, the SHPO must notify the local historic preservation commission, the chief elected official, and the owner of the property. After providing opportunity for public comment, the historic preservation commission can prepare a report as to whether or not, in its opinion, the property meets the criteria of the National Register. Subject to appeal, if both the chief elected official and the local historic preservation commission rec- ommend that the property not be nominated to the National Register, the SHPO can take no further action on its nomination. The property may, however, be formally determined eligible for the National Register, even though it may not be nominated, to ensure that Federal agencies will consider it if Federal assistance or a Federal license is involved in projects that will affect it. HOW DOES LISTING ON THE NATIONAL REGISTER BENEFIT eLGS? National Register listing can enrich local preservation efforts by publicly establishing that local properties are significant enough to merit national recognition. Federal tax law provides incentives for the preservation of properties listed on the National Register or included within registered historic districts. Investment tax credits are provided for the substantial rehabilitation of certified historic structures, and tax deductions are permitted for the contribution of easements on historic properties to qualified entities. Current informa- tion of Federal tax incentives as well as state incentives can be obtained from the State Historic Preservation Office. The National Register is central to a number of Federal programs that encourage protection and improvement of historic properties. National Register status, or a determination that a property is eligible for the National Register, identi- fies a property as one whose historical value must be considered in planning by Federal agencies and by communities using Community Development Block Grants and other forms of Federal assistance. These agencies and communities are required by the National Historic Preservation Act to obtain the comments of the State Historic Preservation Officer and the Advisory Council on Historic Preservation on the effects of their projects. PRESERVING YOUR COMMUNITY'S HERITAGE THROUGH THE CERTIFIED LOCAL GOVERNMENT PROGRAM The National Park Service The National Conference of State Historic Preservation Officers National Park Service, Heritage Preservation Services: Bryan Mitchell, Chief, Heritage Preservation Services Hampton Tucker, Certified Local Government Program Coordinator National Conference of State Historic Preservation Officers: Nancy Miller Schamu, Executive Director Prepared by Carole Zellie, Landscape Research, St. Paul, Minnesota Richard L. Kronick, editor Andrea Hill and Hampton Tucker, NPS 2004 web version Many Certified Local Government coordinators and other State Historic Preservation Office staff members, community planners, and consultants across the country contributed to the text and provided illustrations for this publication. Pratt Cassity and Nore Winter of the National Alliance of Preservation Commissions reviewed drafts of the text. All of the contributors' assistance, and that of Stephen Morris and NPS and NCSHPO staff, is greatly appreciated. U.S. Department of the Interior National Park Service NCSHPO National Conference of State Historic Preservation Officers Photo and illustration credits (where provided by contributors): Cover: Ray Stanyard (upper left), National Park Service (center, upper and lower righ); p. 3: Morganton, John W. Ervin, Jr.; Newp011, Jane Cassady; p. 4: Winona, Minnesota Historical Society; p. 5: Torrey, Mark Austin; p. 6: Walsh Co., (1967 drawing) HaITY B. Brehart; p. 7: Cleveland, Cleveland Museum of Natural History; p. 8: Bellefonte, Carole Zellie, Landscape Research; p. 10: Saco City Hall, Reed and Barba Architects, Portland, Maine; Brookline, David W. Torrey ALA, Claude Emanuel Menders, Architects Inc., Boston, Massachusetts; Kalamazoo, American Red Cross Restorations Inc.; p. 11: Lion Gardiner Windmill, Robert J. Hefner, East Hampton, New York; Newport, Jane Cassady; Key West, Les1ee F. Keys; p. 12: Omaha, Lynn Meyer; Charlottesville, Virginia Dept. of Historic Resources; Janesville, Rock County Historical Society; p. 13: SOCOITO, IjJ Bruce Berman, El Paso, Texas. Preserving Your Community's Heritage through the Certffzed Local Government Program has been financed with funds from the National Park Service, U.S. Department of the Interior. The U.S. Department of the Interior prohibits discrimination on the basis of race, color, national origin, age, gender or handicap in its federally assisted programs. If you believe you have been discriminated against in any program, activity or facility as described above or if you desire further infonnation, please write to: Office for Equal Opportunity, 1849 C Street NW, Room 1324, U.S. Department of the Interior, Washington, DC 20240. Printed on recycled paper. (i) PRESERVING YOUR COMMUNITY'S HERITAGE through the Certified Local Government Program The National Park 5 e17Jice The National C01!fcmzce ~l State HiJt017'C PreJe17Jation QfficerJ 2004 Edition ~ro~ ~T.I.7' <<y?:''-'~ <<i . I' ,. I' ! '~ . \ ,.,,/ t. .' '. \ / ),! ~ "" J.[ :'.:::-7 ~ _ ...:::'Z. _.:...I <:'":::'-_ . ~ The center cover photo is from the Tallahassee Design Guidelines Manual produced in 1991. This CLG- funded project resulted in one of the best sets of historic district design guidelines in Florida: richly illustrated, compre- hensive and user-friendly. Below and opposite, left to right: a variety ofCLG-supported projects and events. The Rhode Island Historical Preservation Commission's Preservation Librm)!, a collection of resources about restoring older houses and revitalizing historic neighborhoods; Pennsylvania's Ho llidays burg Historic District Homeowner's Manual; theHARB Bulletin (Celiified Local Government Newsletter) distributed to 1400 subscribers in Pennsylvania; results of the "Box City" cuniculum program utilized in Salem, Ohio; the Old Burke County Courthouse centerpiece from the Morganton, North Carolina brochure A Town With Tradition; projectile points illustrated in the Grove Park Archaeology Report completed for Wichita, Kansas; and a participant at Rehab- A - Rama, an annual event in Newport, Kentucky. llislorical Certified Local Architectural @ Government Review Board Nt'Vr'sletter HISTOnc Dl~rriLf . Homeowners'. Manual The Certified Local Governlnent Program A cross the nation, hundreds of diverse communities have taken action to preserve their unique historic character. The Certified Local Government (CLG) Program, . a cost-effective local, state and federal partnership, has been a major source of support and guidance. This national initiative provides valuable technical assistance and small grants to local governments seeking to keep for future generations what is important and significant from their past. Funds are appropriated annually by the U.S. Congress and distributed from the Historic Preservation Fund, which is administered by the National Park Service (NPS) and State Historic Preservation Offices (SHPOs) in each state. NPS establishes broad regulations and standards for participation in the CLG Program; however, states have wide latitude to tailor these to the special characteris- tics of their local governments. TheCLG Program responds to the needs of many different kinds of local communities throughout the nation and links them to the national historic preservation program established by the National Historic Preserva- tion Act. The CLG Program is much more than just a funding source. It has helped to institutionalize historic preservation by making it a part of loca/.govemment. To become certified under the program, a local government applies to its State Historic Preservatioq Office. After certi- fication, a local government is eligible to receive grants and technical assistance. Each SHPO is required to reserve at least ten percent of its federal allocation solely for distribution to CLGs. While many CLG grants are sniall, they often have been used as seed money to attract additional funds. SHPOs set eligibility requirements and select projects on an annual basis. Nationwide, over 1,230 local governments now participate in the program. 3 The CLG Program has achieved its primary goal of integrating local government and historic preservation. But the program is much more than just a funding source. It has helped to institutionalize historic preservation by making it a part of local govern- ment. And, because local planning office staff often play key roles in CLG projects, the thread of historic preservation becomes woven into the fabric of local land-use policy. Another benefit is a stronger partnership among the local, state, and national preservation networks. In the early years of the program, CLG grants typically were used for a variety of survey and planning studies. Today CLG grants support a wider range of projects, including building reuse and feasibility studies, design guidelines and conservation district ordinances, and many kinds of public education. This publication highlights more than thirty such innovative projects. Creating a Fralnework for Preservation 4 Winona, Minnesota Historic Resource Survey Winona, a Mississippi River community settled in the mid-1850s, was the subject of a three-year survey by consultants and the local historic preservation commission. Representative of many historic resource surveys funded each year by CLG grants, the survey documented over 1,000 proper- ties including the fannhouse (1900) above. Computer-generated maps were developed to show the distribution of architectural styles and building integrity. The project results are currently being used to draw historic district boundaries and to develop nominations to the National Register. N ewton, Massachusetts GIS Mapping of Historic Resources Newton's CLG-funded Geographic Infonna- tion System mapping project depicts over 5,000 inventoried and designated historic resources, including colonial homesteads and the Longwood Covered Tennis Comis (1913). The computer database will be useful in coordinating land-use planning with other local and state agencies. The GIS map also has been distributed to the public as an attractive poster inserted in a commu- nity newspaper; the poster highlighted numerous preservation projects undertaken by the Newton Housing Rehabilitation Fund. Partnerships with Local Government DESIGN GUIDELINES OPENINGS: STOREFRONTS New buildings should contain storeji"onts to cont.inue street-level activity. Manassas, Virginia Historic District Handbook The Manassas Handbook exemplifies the high quality of design review guidelines developed by CLGs in Virginia. Guidelines identify what is impOliant in each historic district and explain how significant features and resources should be treated. "The use of printed design guidelines has brought professionalism to the (design review) boards' work and results in decisions based on objective criteria rather than personal taste," notes Am1 Miller Andms of the Virginia Department of Historic Resources. 5 cro.~ (1<1...." lltA re . _.",-.en _1"'(1 IIlT_" rqI.ltUlI.""1i I- f YIrDClM.. I t!1~(D. / , / \ / \ \ , , Toney, Utah Meetinghouse Nomination and Restoration The Utah SHPO has encouraged broad involvement in the CLG program through flexible standards for local government participation. Historic Preservation Coordinator Roger Roper says "this allows beginner communities to pmiicipate, develop expertise, and advance to higher levels of effectiveness." Toney, with a pop~lation of 122, used a series of small CLG grants to nominate its log meeting- house to the National Register and to rehabilitate it. Such incremental efforts are effective and sometimes are the only feasible approach when funds are limited. The American Landscape 6 Maui County, Hawaii .Cultural Landscape Inventory Using a CLG grant, Maui County is working to establish regulations that will protect rural cultural landscapes. A compre- hensive inventOlY of the taro fam1ing area of Keanae- W ailuanui has recorded key properties as well as natural resources significant to the area's historical and cultural heritage. Many of the taro fields and terraces constructed by Native Hawai- ians over the last centuries are still intact and are fam1ed by descendants. Future county land-use management policies will find guidance in this study. The Red River Cart Design Taken From Original Carts at: Manitoba Museum at Winnipeg and National Historic Park at Lower Fort Garry By M.B. Brenaut 1967 Walsh County, North Dakota Ox Cart Trail Study The Walsh County CLG is involved in a multi-year project to identify, nominate and preserve ox cali trails in Walsh and Pembina Counties. These trails were used in the early 1800s by the Metis to move furs and trade goods from Winnipeg to St. Paul. (The Metis are descendants of Chippewa or Cree who intennarried with French, British, or Scottish immigrants.) The first two phases of the project, a literature search and an on-site survey, have been completed. Breaking New Ground Clackamas County, Oregon Barlow Road Management Plan In 1993, in preparation for the l50th mmiversmy celebration of the Oregon Trail, the Clackamas County CLG undertook what has been described as an "enom10US" project to identify and protect remnants and associated landscapes of the Barlow Road, one of the two principal routes that tenni- nated the trail. Over 500 sites were identi- fied. Following recommendations of the subsequent Management Plan, the county has been analyzing and landmarking eligible properties. 7 Highland Park, Illinois Highland Park Historic Landscape Survey The original plan for the Chicago suburb of Highland Park was prepared by landscape architects H.W.S. Cleveland and William M.R. French in 1869. In this CLG-funded study, 69 designed historic landscapes were identified including several designs by landscape architect Jens Jensen. The Preservation Commission recorded sites eligible for the National Register of Historic Places and local landmark designa~ tion and worked with propeliy owners to develop preservation plans for significant historic landscapes. Planning: Suburb, Village and Beyond 8 Mad River Valley, Venllont Rural Resource Protection Plan The scenic Mad River Valley CLG's 1988 study produced the Mad River Valley Rural Resource Protection Plan. The RRPP combined historic preservation, open-space protection, and recreation plamling strate- gies to preserve the rural character of the towns and the sun-ounding valley. The inclusion of historic and archaeological resources as pmi of the rural resource base has been a critical component of its success. Bellefonte, Pennsylvania Long-Range Planning This small Pennsylvania crossroads community is situated at the principal water gap leading to the Nittany Valley. CLG funds have played a role in many aspects of its long-range preservation plamling. A wareness of local issues was initially raised in newspaper advertisements paid for by CLG funds. The book, The Historic Gem That is Bell~lonte( I 992), summarizes the results of various surveys, the objectives of the local historic district and architectural review board, and also provides good practical historic building conservation advice. Alnerica' sHistoric Main Streets Covington, Louisiana Main Street Program Louisiana supports some projects related to its active Main Street Program with CLG funds. As this program helps communities develop comprehensive plans for their historic business districts, it also encourages cooperation between public and private interests. Since the town of Covington began its program in 1989, 22 buildings have been renovated, 24 businesses have been expanded or founded, and investment has totaled $2.3 million. 9 Dalton, Georgia Main Street Program For over ten years, Dalton-the carpet capital of the world-has successfully woven together its CLG participation and its Main Street Program. Initially,Dalton's Main Street was designated as a local and National Register historic district and architectural guidelines were developed. A series of CLG grants has supported the expansion of the district, development of a sign ordinance, and creation of tools and guidelines for education and marketing. New Life for Community Landmarks 10 Grafton, North Dakota Elm wood A CLG grant funded the restoration of the Queen Anne style porch of Elmwood, a National Register-listed property built in 1895 by C.A.M. Spencer, the state's second attorney general. The house, which is situated on 20 acres in an oxbow of the Park River, is used as a "hands-on" mu- seum. Above: the porch at Elmwood after restoration; right, a historic view. Kalamazoo, Michigan American Red Cross Restoration Project The Kalamazoo Chapter of the American Red Cross entered into a three-party agreement with the Michigan SHPO and the CLG-certified city of Kalamazoo to restore the Wood-Upjohn (above) and Gilmore Houses. The two buildings are used to provide Red Cross services in the community. A special feature of Michigan's grant program is the availability of restora- tion grants to CLGs only. Some of these funds have been granted in three-party agreements, allowing not-for-profit organizations like the Red Cross to partici- pate in the CLG partnership. Reinvestrnent Strfltegies and Innovative Planning Newport, Kentucky Economic Development Incentives , Situated on the Ohio River, NewP':)rt's historic district has experienced a c,ome- back due to two innovative and successful programs that merge historic preservation with economic development. SuppOlied in part by CLG grants, the first effOli was a loan pool providing low-interest loans up to $10,000 for single-family residential rehabilitation. The second phase, known as Rehab-A-Rama, provided each investor with a $10,000, no-interest loan, a five-year propeliy tax moratorium, and state sales tax redemptions on rehab materials. 11 Key West, Florida Historic Zoning Variance Study This study was initiated by the City of Key West to evaluate the effects of variances on development standards within the National Register Historic District during 1992-93. Protecting historic resources from Ullilecessary variances and providing a method for assess- ing the immediate and cumulative effect of these requests on the district were among study objectives. Over 3 1 2 cases were included in the sample, and numerous recommendations regarding density, setbacks, fences, parking lot coverage, and air conditioning were developed. Reaching the People 12 Charlottesville, Virginia Historic District Procedures Some publications are targeted primarily for property owners in historic districts. In Charlottesville, Virginia, for example, brochures explain the local preservation program, outline the responsibilities of property owners in historic districts, and demystify the process of going before the review board. Virginia's CLG grants have supported similar projects in Lynchburg and Petersburg. -" m****x ~:*****,t'H#***-r nH:H******* **h***Xx*~<>h\l(n nH'X+IUl*'!ofi Janesville, Wisconsin Historic District Guidebooks In 1986, the Janesville Historical Commis- sion began a guidebook se11es describing its historic districts. Six guidebooks, a heritage map, a design guidelines handbook and a 25-minute video on the development of the city have since been funded by CLG grants. The publications are distributed at locations such as the Municipal Building, the Rock County Historical Society, and local hotels. They have dovetailed well with other elements of the city's preserva- tion program and serve a wide audience of both visitors and residents. CLGs and Public Education Socorro, Texas Bilingual Design Guidelines A CLG grant funded design review guidelines for SOCOlTO, a small community outside El Paso that dates from 1680. The design review board uses the guidelines to review proposed changes in the Mission Trail Historic District. Guidelines address the conservation of the district's architec- tural heritage as well as the economic concerns of prope11y owners. The illus- trated handbooks are available in Spanish (Criterio de DiseFio Distrito Historico: Sendero La Mision de Socon~o) which is the principal language of Socorro residents, and in English. 13 Columbus, Ohio Lost Treasures Found Recognizing the lack of documentation for historic properties associated with African- Americans, the City of Columbus and the Columbus Landmarks Foundation surveyed the East Long Street and Mt. Vernon Avenue areas. The survey was one compo- nent of the Foundation's "Lost Treasures Found" project, an eff0l1 to foster interest and support for the preservation of places in African-American history in Columbus. One recorded property is shown above: the house of community leaders Hany B. and Lulu Hall Alexander. For Mor~ Information Requirements While the National Historic Preservation Act establishes a framework of minimum federal requirements for participation in the CLG program, Natjonal Park Servjce regulations encourage each State Historic Preservation Office to shape the program to the particular needs of the state. Under the Act, CLGs are required to: .Enforce appropriate legislation for the designation and protection of historic properties. · Establish and maintajn a qualified hjstoric preservation conmrissjon. · Maintain a system for jdentifYing hist0l1C properties. .Provjde for public particjpatjon in the local historic preservation program. · Perf 01111 other agreed upon functions delegated to jt by its State Hist0l1c Preservation Officer. Incorporahng and expandjng upon these mjnjmum federal requirements, each SHPO develops its own procedures (approved by the NPS) for cerhfying local governments. State procedures detail requjrements regardjng the following: the kinds of legjslahon that local governments seehng cerhficahon must enact and enforce (for example, a local hjstorjc preservatjon ordinance); the expertise and background of members to 14 serve on the local historjc preservahon commissjon; the frequency with whjch the commission meets; and, methods necessary to sahsfy the requirement for public participahon in the local preservation program. Upon approval of a CLG's applica- hon for certifjcation, the chief elected local offjcial (or hjs or her desjgnee) and the SHPO sjgn a certifjcation agreement that specifjes the responsjbilihes of each party. The SHPO generally requjres the CLG to submjt an annual report summarizjng its activjties and accomplishments. At least once every four years, the SHPO conducts an evaluahon of the CLG's performance of jts duties as outlined in the cerhfjcation agreement. Benefits A local government recejves many benefits from becomjng cerhfied in addjtjon to eligjbjlity to apply for CLG grants. The most signjfjcant benefjt js the close worhng relationship that certjflcation establishes between the local government and the SHPO. CLGs get to know the SHPO staff and call upon them for assistance. Simi- larly, SHPO staff become familiar with the strengths and needs of a CLG's preserva- tion program and can direct appropriate assistance to the local government. SHPOs are required to provide orientation and training to the CLGs; this often takes the form of an annual statewide CLG conference that allows local commission members and staff representatives to communicate. In addjtjon, CLGs often are called upon to offer their views on the SHPO's programs. They have a special responsibility to help the SHPO shape the statewide historjc preservation plan, which the National Historic Preservation Act requires of all SHPOs. For More Information In addition to the strong ties certification fosters between local governments and the SHPO, CLG status gives local governments additional authority and responsibility regarding nominations of local properties to the National Register of Historic Places. CLGs review the nominations and give an official opinion on the property's eligibility for National Register listing. Beyond this, joining the CLG program enables a local government and its historic preservation commission to become part of a statewide and national preservation network. CLGs receive statewide newsletters, National Park Service preservation publications and journals, as well as announcements and invitations to preservation conferences, workshops, and related events. Finally, in addition to these tangible benefits, many local governments view CLG status as an opportunity to enhance the image of their local preservation efforts. Certification by the SHPO with the concur- rence of the National Park Service is seen by many, including state and federal agencies, as recognition of a certain level of professionalism and expertise in the local preservation program. For further information about the CLG Program, contact your SHPO (see page 16 for addresses and phone numbers) or, the Certified Local Government Coordinator, 15 National Park Service (org. 2255), 1849 C Street, N.W., Washington, D.C. 20240. Questions and Answers about CLG Grants fi~om SHPOs: An introductory Guide, which contains detailed information about the process of applying for and receiving a CLG grant, is available from the SHPO or from NPS. More information is available on the NPS website at http:\\www2.cr.nps.gov. For More Information Contact the CLG Coordinator at your State Historic Presetvation Office (SHPO) for more information about the Certified Local Government Program and presetvation planning issues in your community. ALABAMA Alabama Historical Commission 468 South Perry Street Montgomery, AL 36130-0900 334-230-2666 ALASKA Alaska DNR Office of History & Archeology 550 West 7th Avenue, Suite 1310 Anchorage, AK 99501-3565 907-269-8908 ARIZONA Office of Historic Preservation Arizona State Parks 1300 West Washington Phoenix, AZ 85007 602-542-4174 ARKANSAS Historic Preservation Program 323 Center Street Tower Building, Suite 1500 Little Rock, AR 72201 501-324-9150 CALIFORNIA Office of Historic Preservation Department of Parks & Recreation P.O. Box 942896 Sacramento, CA 94296-0001 916-653-6624 COLORADO Colorado Historical Society 1300 Broadway Denver, CO 80203 303-866-3355 CONNECTICUT Connecticut Historical Commission 59 South Prospect Street Hartford, CT 06106 860-566-3005 DELAWARE Division of Historical & Cultural Affairs Tudor Industrial Park 604 Otis Drive Dover, DE 19901 302-739-5313 FLORIDA Division of Historical Resources Department of State 500 South Bronough Street, # 305 Tallahassee, FL 32399-0250 850-245-6300 GEORGIA Historic Preservation Division/DNR 47 Trinity Avenue, SW Suite 414-H Atlanta, GA 3 0334-9006 404-656-2840 HA WAIl State Historic Preservation Office PO Box 621 Honolulu, Hawai'i 96809 808-692-8015 IDAHO Idaho State Historical Society 1109 Main Street Suite 250 Boise, ID 83702-5642 208-334-2682 ILLINOIS Illinois Historic Preservation Agency 1 Old State Capitol Plaza Springfield, IL 62701-1512 217-785-4512 INDIANA Department of Natural Resources Historic Preservation & Archeology 402 West Washington, Room W274 Indianapolis, Indiana 46204 317-232-1646 IOWA State Historical Society of Iowa Capitol Complex East 6th and Locust Street Des Moines, IA 50319 515-281-8741 KANSAS Kansas State Historical Society Cultural Resources Division 6425 Southwest 6th Avenue Topeka, Kansas 66615 913-272-8681 KENTUCKY Kentucky Heritage Council 300 Washington Street Frankfort, KY 40601 502-564-7005 LOUISIANA Department of Culture, Recreation & Tourism P.O. Box 44247 Baton Rouge, LA 70804 225-342-8200 MAINE Maine Historic Preservation Commission 55 Capitol Street, Station 65 Augusta, ME 04333 207-287-2132 MARYLAND Maryland Historical Trust 100 Community Place 3rd Floor Crownsville, MD 21032-2023 410-514-7600 MASSACHUSETTS Massachusetts Historical Commission 220 Morrissey Boulevard Boston, Massachusetts 02125 617-727-8470 MICHIGAN State Historic Preservation Office Bureau of Michigan History Department of State 717 W. Allegan Lansing, Michigan 48918 517-373-163.0 MINNESOTA State Historic Preservation Office Minnesota Historical Society 345 Kellogg Blvd. W. St. Paul, Minnesota 55102 651-296-2747 MISSISSIPPI Mississippi Department of Archives & History P.O. Box 571 Jackson, MS 39205-0571 601-359-6850 For More. Information MISSOURI Historic Preservation Program Division of State Parks P.O. Box 176 Jefferson City, MO 65102 573-751-7858 MONTANA State Historic Preservation Office 1410 8th Avenue P.O. Box 201202 Helena, MT 59620-1202 406-444- 7717 NEBRASKA Nebraska State Historical Society P.O. Box 82554 1500 R Street Lincoln, NE 68501 402-471-4745 NEVADA Historic Preservation Office 100 North Stewart Street Capitol Complex Carson City, NV 89701-4285 775-684-3440 NEW HAMPSHIRE Division of Historical Resources 19 Pillsbury Street, 2nd Floor Concord, NH . 03301-3570 603-271-6435 NEW JERSEY NJ Historic Preservation Office 401 East State Street P.O. Box 402 Trenton, NJ 08625 609-292-2885 NEW MEXICO Historic Preservation Division Office of Cultural Affairs 228 East Palace Avenue Santa Fe, NM 87503 505-827-6320 NEW YORK Field Services Bureau NY State Parks, Recreation & Historic Preservation Peebles Island P.O. Box 189 Waterford, NY 12188-0189 518-237-8643 NORTH CAROLINA Division of Archives & History 4610 Mail Service Center Raleigh, NC 27699-4610 919-807 -7280 NORTH DAKOTA State Historical Society of North Dakota 612 East Boulevard Avenue Bismarck,ND 58505 701-328-2666 OHIO Ohio Historic Preservation Office Ohio HistoricaL Society 567 East Hudson Street Co1umbus;;OH 43211-1030 614-298-2000. OKLAHOMA Oklahoma Historical Society State Historic Preservation Office 2704 Villa Prom, Shepherd Mall Oklahoma City, OK 73107 405-522-4484 OREGON State Parks and Recreation Department 1115 Commercial Street N.E. Salem, Oregon 97310 503-378-4168 PENNSYLVANIA Pennsylvania Historical and Museum Commission 300 North Street Harrisburg, PA 17120 717-787-2891 RHODE ISLAND Rhode Island Historical Preservation & Heritage Commission Old State House 150 Benefit' Street Providence, RI 02903 401-222-2678 SOUTH CAROLINA Department of Archives & History 8301 Park1ane Road Columbia, SC 29223-4905 803-896-6100 SOUTH DAKOTA State Historical Society 900 Governors Drive Pierre, South Dakota 57501 605-773-3458 TENNESSEE Department of Environment & Conservation 4401 Church Street L & C Tower 21st Floor Nashville, TN 37243-0435 615-532-0109 TEXAS Texas Historical Commission P.O. Box 12276, Capital Station Austin, Texas 78711 512-463-5997 UTAH Utah State Historical Society 300 Rio Grande Salt Lake/City, UT 84101 801-533-3500 VERMONT Division for Historic Preservation . Agency of Commerce & Community Development National Life Building - Drawer 20 Montpelier, Vermont 05620-0501". 802-828-3042 VIRGINIA VA Dept. of Historic Resources Portmouth Regional Office o 612 Court Street, 3rd Floor Portsmouth, Virginia 23704 540-722-7535 WASHINGTON Office of Archeology & Historic Preservation Box 48343 Olympia, Washington 98504-8343 360-407-0767 WEST VIRGINIA Dept. of Culture and History Cultral Center -- Capitol Complex Charleston, West Virginia 25305 304-558-0220 WISCONSIN State Historical Society of Wisconsin Historic Preservation Division 816 State Street Madison, Wisconsin 53706 608-264-6501 WYOMING Department of Commerce Barrett Building 2301 Central Avenue Cheyenne, Wyoming 82002 307-777-6312 Special Valuation: A. Local Tax Incentive Program BACKGROUND During its 1985 session, the Washington State Legislature determined that as the state approached its centennial year, the preservation of a lasting legacy of historic resources was an important goal. In order. to reach this goal, the legislature. passed. a law which allows a "special' valuation" for certain historic properties within the.. state. The .primary benefit of the law is that during.the, ten,,,.year special valuation period; property taxes will not reflect substantial. improvements made to the property. Definition: "Specwl Valuation" is the revision of the assessed value of a historic property which subtracts, for up to ten years, such rehabilitation costs as are approved by a local review board. Prior to the passage of this law, owners restoring historic buildings were subject to increased property taxes once the improvements were made. This had the effect of discouraging some owners. from rehabilitating their historically' significant structures. The Legislature decided that restoration of these properties would be encouraged if tax relief were available. Property tax relief was selected as a tool which could provide the financial incentives necessary to promote rehabilitation ,of eligible historic properties. Since passage. of this' law, over thirty-five local governments have implemented programs which allow their constituents to take advantage of this tax relief. IMPLEMENT A TION Only local governments which implement the law are eligible to pass .?> on the tax relief to the public. The local government identifies the types of properties that are eligible for special valuation, and designates a local review board that will review applications. ELIGIBILITY To be classified as eligible for special valuation, a property must first meet the following criteria: 1. It must be listed in the National Register of Historic Places, individually, or certified as contributing to the significance of a National Register Historic District. In order to receive a statement that a property is certified as contributing to the significance of a National Register Historic District, a property owner should contact their local government, or the Department of Archaeology and Historic Preservation, OR 2. It must be listed in the Local Register of Historic Places established by a Certified Local Government, AND 3. It must be of a class of properties approved by the local government. Eligible properties which undergo substantial rehabilitation may receive special valuation if the rehabilitation work is approved by the local review board. The work must have been conducted within two years prior to application, and must be equal in cost to at least 25% of the assessed value of the structure priorto rehabilitation. REQUIREMENTS Protection oUhe Property Property owners who want to take advantage of special valuation must sign an agreement with the local review board that guarantees they will meet the following standards during the ten-year property tax exemption period: . The property must be maintained in good condition. . The owner must obtain approval from the local review board prior to making further improvements. . The property must be visible from a public right-of-way, or otherwise be made available for public view once every year. The penalty for violating the agreement or other program requirements is substantial. All back taxes which would otherwise have been owed, interest on back taxes, and a penalty equal to 12% of back taxes and interest may be due. (Continued on page 4 ) \ Ie " .'.11. ~--r' The One Pacific Building, 7th & Pacific, Tacoma, WA How the Application Process Works: .li APPLICANT: · Submits application to the assessor no later than 24 months after beginning date of the rehabilitation work to be con- sidered for Special Valuation. . Reviews application for completeness. ASSESSOR: . Verifies legal owner, legal description, etc. . Submits application to local review board within ten working days. LOCAL REVIEW · Reviews application and attachments. B" OARD .. · Determines approval or denial of application no later than December 31st of application year. . If application is approved, notifies applicant, assessor, and State Advisory Council within ten days. . Executes agreement with applicant; . Returns application to assessor. ASSESSOR: . Records agreement. . Files application, agreement and certification statement (if applicable) with the county recording authority. . Determines special valuation and enters in tax roles separately from the normal assessed value. . HOW ELIGffiLE PROPERTIES ARE DEFINED To be eligible for special valuation, a property must be: 1. Listed in the National Register of Historic Places, individually or certified as contributing to the significance of a National Register Historic District. OR 2. Listed in the Local Register of Historic Places established by a Certified Local Government (for more information about the Certified Local Government Program, contact the CLG Coordinator at 360-586-3074). AND 3. It must be of a class of historic properties approved by the local government. Note: The local government in each community determines which classes of historic properties are eligible for special valuation, and may elect to exclude some classes of property from the program. 2 Special Valuation: For the Applicant Applications for special valuation.will be reviewed, and approved or denied, by.a local review board designated by the local government. The board will make t~eir determination at a public meeting, during which the applicant may be present. It is advisable (and in some communities it is mandatory) for the applicant to consult with the local review board before beginning the rehabilitation work, to ensure that the 'project.will comply with the board's standards. RESPONSIBILITIES 1. WHILE CONDUCTING THE REHABILITATION, the applicant must: a. MONITOR rehabilitation work to ensure that it conforms with The Washington State AdvisoryCouncil.'s Standards for Rehabilitation b. MAINTAIN accurate records of project costs, and dates of project work 2. WHEN APPLYING FOR SPECIAL V ALUA TION, the applicant must FILE an application for special valuation with the assessor's office (on the Department of Revenue form) no later than two years after beginning the rehabilitation work considered for spe- cial valuation. The application must include as attachments: a. The legal description of the property b. Comprehensive exterior and interior photographs of the property before and after rehabilitation . c. Architectural plans or other legible drawings depicting the completed project d. A notarized affidavit attesting to the actual cost of rehabilita- tion work e. A statement from (the appropriate local official) indicating that the property is a certified historic structure if it is located in an historic district 3. IF A PROJECT IS APPROVED, the applicant must: a. SIGN an agreement with the local review board guaranteeing that during the lO-year period of special valuation he or she shall: - MAINTAIN the property in safe and sound condition and protect it from the elements, and repair deteriorated or . broken exterior features, in compliance with The Washing. ton State Advisory Council's Standards for Rehabilitation - OBTAIN written consent of the local review board prior to making further improvements or alterations to the prop- erty - MAKE the property accessible to. the public once each year if it is not normally visible from a-public right-of-way - OBTAIN written consent of the local review board prior to demolishing the property - NOTIFY the assessor within 30 days if the property be- . comes disqualified for special valuation, e.g. if the terms.of the agreement are violated b. PAY processing fees (and title search fees, if required) charged by the assessor's office 4. IF THE PROJECT IS DENIED, because the property is determined ineligible for special valuation. the applicant may APPEAL to the decision of the Local Review Board to Superior Court. or the County Board of Equalization. THE APPLICATION PROCESS Applicant. Submits application to assessor no lat~r than 24 tnonth.~ after beginning date of rehab work to be considered. for special valuation . Reviews application for completeness Assessor. Verifies Il-galowner and-legal description . Submits application to local review board within 10 working days Local Review Board . Reviews application and attachments Determines approval or denial of application no later than December 31 of application year If application is approved; notifies applicant, assessor, and State Advisory Council within ten days Executes agreement with applicant Returns application to assessor . . . . Assessor · Records agreement Files agreement and application with county recording authority Determines special valuation and enters in tax rolls (as a separate value from normal assessed value) . . 5. IF THE PROJECT IS LATER DISQUALIFIED for special valuation, or in the event of any dispute, the applicant may APPEAL to the County Board of Equalization. 6. IF THE PROPERTY IS SOLD, and the new owner desires continuation ofthe special valuation, her or she must$IGN an agreement with the local review board ensuring that the program requirements will be satisfied for the duration of the special valuation period. IMPORTANT DEADLINES . Application for special valuation must be made no later than 24 months after the beginning date of the rehabilitation work. . October 1 is the deadline for applications when special valuation is desired for the following year. NOTE: due to the lag in property tax payments. the tax reduction will appear one-year after special valuation designation, and it applies until the year following the end of the lO-year special valuation period. PHASED PROJECTS Properties which are rehabilitated in phases may receive special valuation-for each phase, provided that qualified rehabilitation expenditures for each phase exceed 25% of the assessed value of the property, exclusive of land value. at the time that phase began. Each phase is treated as though it were a separate project, and is subject to all requirements of the special valuation program. Special Valuation: For the Local Review Board It is helpful for the local review board to meet with ail applicant. for special valuation before the rehabilitation work begins, and to review their project to ensure that it complies with The Washington State Advisory Council's Standards for Rehabilitation, as well as any additional local standards. This preliminary meeting is mandatory in some communities, and is suggested as a first step in the special valuation process which may avoid conflicts later on. RESPONSIBILITIES 1. UPON RECEIPT OF AN APPLICATION from the assessor, the local review board must: a. SCHEDULE a public meeting at which the application will be approved or denied b. DETERMINE eligibility ofthe property for special value- tion based on the following criteria: - Is the property historic? -Is it included within a class of historic properties deter- mined eligible for special valuation by the local govern- ment? - Will the rehabilitation work comply with the State Advi- sory Council's Standards by not adversely affecting those elements qualifying the property as historically significant? c. REVIEW the applicant's documentation of qualified rehabilitation expenditures to assure that they were at least 25% of the assessed value of the property, exclusive of land value, prior to rehabilitation 2. IF THE PROPERTY IS DETERMINED ELIGIBLE for special valuation, the local review board must: a. PREPARE and enter into an agreement (on behalf of the lo- cal government) with the applicant. The agreement must guaran- tee that certain minimum standards (listed below) were met dur- ingthe lO-year period of special valuation b. APPROVE the application upon execution of the agreement with the applicant c. TRANSMIT copies of the application, agreement and certification statement (if applicable) to the assessor's office for recording d. NOTIFY the Washington State Advisory Council of the application approval e. MONITOR the property during the 10-year special valuation period to assure continued compliance with the requirements of the special valuation program 3. IF THE PROPERTY IS DETERMINED INELIGIBLE for special valuation, the local review board must: a. ADVISE the applicant of the reason(s) for denial b. EXPLAIN that the applicant may appeal the decision to Superior Court 4. IF AN APPROVED PROPERTY IS LATER DISQUALIFIED, due to either the owner's failure to comply with the terms of the agreement, OR to a loss of historic value due to alterations, the local review board must NOTIFY the owner, the assessor and the Washington State Advisory Council of the disqualification. MINIMUM STANDARDS FOR A SPECIAL V ALUA TION AGREEMENT During the lO-year period of special valuation, the property owner sha II : a. MAINTAIN the property in safe and sound condition and THE APPLICATION PROCESS Applicant. Submits application to assessor no tater than 24 months after beginning date of rehah work to be con.~idered for special valuation Assessor. Reviews application for completeness . Verifies legal owner and legal description . Submit~ application to local review board within 10 working days . Reviews application and attachments Determines approval or denial of application no later tban December 31 of application year If application is approved, notifies applicant, assessor, and State Advisory Council within ten days Executes agreement with applicant Returns application to assessor . Local Review Board . . . _ Assessor. Records agreement . Files agreement and application with county recording authority protect it from the elements, and repair deteriorated or broken exterior features, in compliance with The Washington State Advisory Council's Standards for Rehabilitation. b. OBTAIN written consent of the local review board prior to making further improvemen~ or alterations to the property c. MAKE the property accessible to the public once each year if it is not normally visible from a public right-of-way d. OBTAIN written consent of the local review board prior to demolishing the property e. NOTIFY the assessor within 30 days if the property be- comes disqualified for special valuation, e.g. if the terms of the agreement are violated IF THE PROPERTY IS SOLD If an approved property is sold, and the new owner desires continuation for the special valuation, he must SIGN an agreement with the local review board ensuring that program requirements will be satisfied for the duration of the special valuation period. The current owner is assessed no penalties for selling the property prior to the expiration of the special valuation. IMPORTANT DEADLINES . An application for special valuation must be approved or denied before December 31 of the year in which the application is made. . Within 10 days of approving an application for special valuation, the local review board must notify the applicant and the assessor of their decision and must transmit copies of the application and its attachments, and the agreement, to the assessor's office. PHASED PROJECTS Properties which are rehabilitated 'in phases may receive special valuation for each phase, provided that qualified rehab expenditures for each phase exceed 25% of the assessed value of the property, exclusive of land value, at the time that phase began. Each phase is treated as though it were a separate project, and is subject to all requirements of the special valuation program. Special Valuation: For the Local Government The action of the local government is the first step in implementing the special valuation program in each jurisdiction, thus allowing its constituents the potential to realize substantial tax savings. Since passage of the law, approximately thirty-five local governments have implemented the special valuation program. RESPONSIBILITIES WHEN ESTABLISHING THE SPECIAL VALUATION PROGRAM for the jurisdiction, the local government must: 1. IMPLEMENT the special valuation law through ordinance or administrative rule 2. IDENTIFY one or more classes of historic properties in the community which are eligible for special valuation 3. DESIGNATE a local review board to review application. and approve or deny properties for special valuation 4. APPOINT members to the local review board IMPORT ANT CONSIDERATIONS . Once the local government has identified a class of eligible historic properties, it may amend the criteria defming the class at any time. However, if the new criteria are more restrictive than the previous criteria, the new criteria may not take effect for a period of two years following October 1 of the year in which the change is . made. Amendments to the criteria will not disqualify properties already subject to special valuation. . The law permits multiple local governments within the same county to jointly designate, tinder an interlocal agreement, a single local review board to administrate the program. THE APPLICATION PROCESS Applicant · Assessor . Local Review Board Assessor Submits application to assessor no later than . 24 months after beginning date of rehab work to be con~idered for special valuation . Reviews application for completeness Verifies legal owner and legal description Submits application to local review board within 10 working days . . Reviews application and attachments Determines approval or denial of application no later than December 31 of application year If application is approved, notifies applicant, assessor, and State Advisory Council within ten days Executes agreement with applicant Returns application to assessor . . . . . Records agreement Files agreement and application with county remrdiDg autbority Determines special valuation and enters in tax rolls (as a sepanlte value from normal assessed value) . . Special Valuation: For the Assessor THE APPLICATION PROCESS The assessor's role in the special valuation program is limited to processing the application forms and maintaining records of special . valuation assessments for properties approved by the local review board. The assessor maintains two separate values on the tax rolls - the special valuation and the normal assessed value - for affected properties. RESPONSIBILITIES 1. UPON RECEIPT OF AN APPLICA TION, the assessor must: a. RECORD the date of receipt b. REVIEW the application for completeness: - Verify the legal owner -Verify the legal description - Verify the legal description and parcel or tax account number c. TRANSMIT the application and attachments to the local review board within 10 days ofreceipt 2. UPON RECEIPT OF AN APPROVED APPLICA TION and agreement from the local review board, the assessor must: a. RECORD the application, agreement, and certification statement (if applicable) b. TRANSMIT copies to the county recording authority c. DETERMINE the special valuation: - The total assessed value of the property (including improvements and land), minus the qualified rehabilitation expenditures, equals the special valuation. This special val- uation will change to reflect changes in the total assessed value, and will be in effect for 10 years. d. ENTER the determined special valuation on the tax rolls separately from the normal assessed value e. CHARGE processing fees to the applicant, as necessary, in addition to any fees associated with a title search (these fees shall be payable to the county auditor or county recorder) f. INDICATE the special valuation on the yearly tax statement g. RETAIN copies of all documents h. REVALUE propertieS on the regular revaluation cycle, deducting the cost therefrom to determine the taxable value 3. UPON TERMINATION of the 10-year special valuation period, the assessor must: a. REVALUE the property without consideration for special v~luation b. ENTER the new value on the tax roles 4. IF THE TERMS OF THE AGREEMENT are violated, OR the property ownership changes without indication that the new owner will sign an agreement to meet the program requirements for the dlU'ation of the special valuation period, OR the property is disqualified for special valuation, the assessor must: a. LEVY the back taxes (which otherwise would have been due) plus interest and penalty: - Rehabilitation costs times the levy rate for the elapsed portion of the year, - Plus interest (from April 30) normally charged on delinquent tax bills Applicant . Submits appllcaUon to assessor no later than 24 month.~ after beglnnlng date of rehab work to be considered for special valuation A ssesso r · . Reviews application for completeness Verifies legal owner and legal description Submits application to local review board within 10 working days . Reviews application and attachments Detennines approval or denlal of application no later than December 31 of application year If application is approved, notifies applicarit, assessor, and State Advisory Council within ten days . . Executes agreement with applicant. " Returns application to assessor. . . Local Review . Board . . Assessor. Records agreement . Files agreement and application with county recording authority - Plus an additional 12% penalty. (For additional information, see WAC 458-15,090) THE TIME LAG Due to the lag in property tax payments, special valuation status will precede, by one year, the reduction of taxes due on affected properties. Thus the reduced tax will apply until the year following the end of the 10-year special valuation period. IMPORTANT DEADLINES . Application for special valuation must be made no later than 24 months after the beginning date of the rehabilitation work. The project can begin prior to the 24 month period, however, only qualified rehabilitation work done within the 24 month period can be tallied. October 1 is the deadline for applications when special valuation is desired for the following year. . PHASED PROJECTS Properties which are rehabilitated in phases may receive special valuation for each phase, provided that qualified rehabilitation expenditures for each phase exceed 25% of the assessed value of the property, exclusive of land value, at the time that phase began. Each phase is treated as though it were a separate project. and is subject to all requirements of the special valuation program. III The Timetable III WITHIN 2 YEARS PRIOR TO · DATE OF APPLICATION: BEFORE OCTOBER 1 (IF SPECIAL VALUATION IS DESIRED FOR FOLLOWING YEAR): Rehabilitation work begun and completed. The rehabilitation does not necessarily have to have been started during the 24 month pe- riod, however, only costs incurred during the 24 months prior are eligible. . Applicant submits application. WITHIN 10 WORKING DAYS: · Assessor completes review and submits application to local review board. BEFORE DECEMBER 31: · Local Review Board approves (or denies) application and executes agreement. WITHIN 10 DAYS OF ISSUING . Local Review Board submits approved THEIR DECISION: application and agreement to assessor; assessor records documents. FIRST YEAR - JANUARY 1: · Special valuation effective. SECOND YEAR THROUGH ELEVENTH YEAR: · Taxes reflect special valuation. TENTH YEAR: . Special valuation ends. TWELFTH YEAR: . Taxes reflect revaluation of property following end of special valuation. DETERMINING SPECIAL VALUATION The amount of property tax you will pay is based on the special valuation of your property. Special valuation is simply a value, for property tax purposes, which is calculated by subtracting qualified rehabilitation expenditures from the total assessed value of the property. Your property tax may change from year to year because of changes in the assessed value, but the qualified rehabilitation expenditures will continue to be deducted from the new assessment for the full ten-year period of special valuation. 3 (Contll1uedfi'om page I) If the property is sold, the new owner may sign an agreement with the local review board ensuring that program requirements will continue to be satisfied for the duration of the special valuation period. However, if the new owner does not sign the agree- ment, the original property owner does not face penalties as a result, and the new owner will simply pay the fully assessed property tax. Qualified Rehabilitation Expenditures The total cost of the rehabilitation must be equal to at least 25% of the assessed value of the property, exclusive of land value, prior to rehabilitation. "Qualified rehabilitation expenditures" are expenses chargeable to the project and include improvements made to the building within its original perimeter, architectural and engineering fees, pennit and development fees, loan interest, state sales tax and other expenses incurred during the rehabilitation period. Not included are costs associated with acquisition of the property, or the enlargement of the building. The local review board in each jurisdiction detennines which expenditures are qualified. Qualified rehabilitation expenditures for special valuation are the same as those for the Federal Investment Tax Credits. (For a detailed explanation, see 26 CFR 1.48-12(c).) Rehabilitation Standards In order to be eligible for special valuation, properties must retain their historic character after rehabilitation. The standards used by the local review board in their review and approval of the rehabilitation work are The Washington State Advisory Council's Standards for Rehabilitation. The State Advisory Council adopted The Secretary of the Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings as their standards. THE APPLXCA TION PROCESS IMPORT ANT An interested property owner files an CONSIDERATIONS application with the assessor's office after. In order for a historic property to be the rehabilitation work is completed. The eligible for special valuation, it must assessor transmits the application to the have been substantially rehabilitated local review. board, which schedules a within 24 months prior to the date of public meeting to discuss the application. application. The board may detennine the. In order for a phased rehabilitation to approval or denial of the application at be eligible, each phase of the this meeting, or may request additional rehabilitation must cost at least 25% of infonnation. Once the board has made its the assessed value of the property, exclusive of land value, prior to detennination, the applicant and the commencing that phase of work. Work assessor will be notified within ten days. on each phase must have been If the application is filed with the completed within 24 months prior to assessor's office before October I and the date of application for special approved by the board, special valuation valuation for that phase. goes into effect the following year. · Improvements must be consistent with the historic character of the building. During the ten-year period of special valuation, additional improvements to the property are also subject to compliance with the Washington State Advisory Council's Standards for Rehabilitation. . The property must be maintained in good condition as long as the special valuation is in effect. . Special valuation may apply to a wide range of properties, at the discretion of the local government in each jurisdiction. . Applications may be submitted at any time, however the deadline is October I when special valuation is desired for the following year. Reduction in property taxes appears one year after special valuation designation and applies until the year following the end of the ten-year period of special valuation. . Property owners who receive special valuation for a rehabilitation project may also apply for the Federal Investment Tax Credits for the same project. DEADLINES TO REMEMBER Application for special valuation must be made no later than 24 months after the beginning of the rehabilitation work docu- mented for special valuation. October 1 is the deadline for applications when special valuation is desired for the following year. P ARTICIP A TING JURISDICTIONS At the time of this publication, the following cities and counties have implemented the special valuation program: Anacortes Auburn Bainbridge Island Bellingham Black Diamond Bothell Camas Carnation Centralia Chehalis Cheney Cle Elum Clark County Colfax Colville Dayton Edmonds Ellensburg Everett Gig Harbor Issaquah Kenmore Kennewick Kettle Falls King County Kirkland La Center Lacey Lakewood Langley Longview Marysville Mason County Newcastle North Bend Olympia Pierce County Pomeroy Port Townsend Pullman Puyallup Ritzville Roslyn Skykomish Snohomish Cty Snoqualmie Spokane City/Cty Steilacoom Tacoma Thurston County Tumwater Vancouver Walla Walla Wenatchee Woodinville Yakima Yelm FOR INFORMATION For further infonnation about special valuation program, contact: the Department of Archaeology and Historic Preservation 1063 S. Capitol Way, Suite 106 PO Box 48343 Olympia, Washington 98504-8343 360-586-3074 www.dahp.wa.gov Technical assistance in implementing the special valuation program is available to local governments from the Department of Archaeology and Historic Preservation. 4