BUSINESS OF THE CITY COUNCIL CITY OF MERCER ISLAND, WA AB 4473 October 19, 2009 Regular Business HISTORIC LANDMARKS POTENTIAL INTERLOCAL AGREEMENT WITH KING COUNTY Proposed Council Action: Briefing only. Review information and provide guidance to staff regarding further research, if desired. DEPARTMENT OF COUNCIL LIAISON EXHIBITS Development Services Group (Steve Lancaster) n/a 1. Sample Ordinance 2. Chapter 20.62 King County Code 3. Description of The Secretary of the Interior's Standards for Rehabilitation APPROVED BY CITY MANAGER AMOUNT OF EXPENDITURE $ AMOUNT BUDGETED $ 0 APPROPRIATION REQUIRED $ SUMMARY ISSUE Should the City of Mercer Island pursue an interlocal agreement with King County to provide landmark designation, protection and enhancement services to the community? BACKGROUND The Mercer Island City Council requested a briefing on the potential for an historic building designation interlocal with King County as part of its adopted Work Plan for 2009. CURRENT SITUATION Chapter 16.01 of the Mercer Island City Code (MICC) provides for the designation and protection of historic buildings, structures and sites meeting specified criteria. Nominations of private properties may be made only by the property owner. The Mercer Island Historical Society may nominate public properties for historic designation. Designation decisions are made by the City Council. Once designated, a property becomes eligible for development incentives (in the form of regulatory flexibility provided by a development agreement approved by the City Council). Designated properties may also be eligible for temporary (10 year) property tax relief related to the value of eligible building restoration improvements. Chapter 16.01 also requires that any alteration of a designated building or structure be done Page 1
in compliance with the Secretary of the Interior s Standards for Rehabilitation of Historic Structures (36 CFR Section 67.7). Two buildings have been designated as historic buildings under Chapter 16.01. The Parks and Recreation Administration Building at Luther Burbank Park was designated under Resolution No. 1310 in December, 2002. The VFW building at 1836 72 nd Ave SE was designated under Resolution No. 1340 in September, 2004. POTENTIAL INTERLOCAL AGREEMENT The King County Historic Preservation Program currently provides landmarking, historic survey and inventory, and other historic preservation services to 14 suburban cities, through adoption of an interlocal agreement based on model legislation (See Exhibit 1). Participation in the King County program provides cities and property owners with access to technical assistance as well as eligibility for King County landmark rehabilitation financial assistance and property tax relief. It also places some restrictions on the use and modification of historic properties once they are formally designated. Incentives Landmark Rehabilitation Program. The LRP funds the stabilization, rehabilitation, and restoration of designated King County and participating city landmark properties. This is a competitive application small grant program. Applications are reviewed by a 5-member citizen s panel. Fourteen projects were funded in 2008 with awards ranging from $1,200 to $12,000 (total of $96,600 available countywide). Landmark Challenge Grants. The LCG program assists "bricks and mortar" projects involving highly significant designated historic properties on a competitive basis. There is $5,000 minimum request, and a dollar-for-dollar cash match is required. Applications are reviewed by a 5-member citizen s panel. Nine projects were funded countywide in 2008 with awards ranging from $10,000 to $25,000 (total of $150,000). Landmark Loan Fund. Low-interest loans are available for landmark restoration and rehabilitation through programs administered jointly by King County and participating local banks. The King County Landmarks Commission reviews loan requests for compliance with restoration and rehabilitation standards, while participating banks review the proposal for financial eligibility. Property Tax Benefits. The cost of eligible renovation and restoration work for designated properties may be subtracted from the value of real property for the purposes of property tax assessment for up to ten years. To qualify, the cost of renovation/rehabilitation must be equal to at least 25% of the assessed value of improvements to eligible structures. (This benefit would not apply to either of the existing Mercer Island designated properties since they are currently tax property tax exempt.) Additional incentives may be available to designated properties through state, federal and private programs. The King County Historic Preservation Office provides technical assistance to property owners in participating cities for evaluating and accessing such programs. Program Requirements Participation in the King County Historic Preservation Program would require negotiation of an interlocal agreement between the City and County. Terms of adoption of a city ordinance implementing participation in the Program would be spelled out in the agreement. Exhibit 1 is a copy of a Sample Ordinance provided by King County. The Sample Ordinance would adopt by reference much of Chapter 20.62 of the King County Code dealing with landmark preservation (). Some key provisions include: Page 2
Landmarks Commission. The King County Landmarks Commission would be designated and empowered to act as the City of Mercer Island Landmark Commission. Mercer Island would appoint one special member to the Commission who would be a voting member only for the purpose of deciding the designation of landmarks on Mercer Island. Landmark Nomination. Any person may nominate a property for landmark designation with the decision to be made by the Landmarks Commission following a public hearing. Hearing notice is provided to the person nominating the property, the property owner and other interested parties of record. Concurrence of the property owner is not required for the designation to be approved. However, King County staff has indicated the County might be willing to discuss a pre-screening process under which City Council concurrence would be required for landmark designation. Certificate of Appropriateness. Once a property is designated (or during pendency of a landmark nomination) modifications to the property may only be undertaken after obtaining a Certificate of Appropriateness from King County (most ordinary repairs, maintenance and utility system replacement are exempt). Proposed modifications are reviewed for consistency with the US Secretary of the Interior s Standards for Rehabilitation (see Exhibit 3). Participation in the King County program would also require the preparation of a Historic and Cultural Resources Inventory. A King County Historic Sites Survey undertaken in 1978 includes 36 properties on Mercer Island potentially eligible for landmark designation. The King County Historic Preservation Office could provide technical assistance in updating this information and may be able to assist in securing funding for the work. ALTERNATIVES Among the alternative courses of action the City Council may choose are: No Action. Continue implementation of the existing program established under Chapter 16.01 MICC (described above). Pursue Interlocal Agreement. Direct staff to initiate discussions/negotiations with King County toward possible Council consideration of an interlocal agreement. Provide direction on key elements of the Council s desired outcome. Pursue Certified Local Government Status. The City of Mercer Island could theoretically provide many of the benefits available under the King County program by becoming certified by Washington State. This would be a time consuming and possibly costly endeavor and is not recommended. RECOMMENDATION Steve Lancaster MOVE TO: No motion required. Page 3
SAMPLE ORDINANCE CITY OF BLANK, WASHINGTON ORDINANCE NO. 0- AN ORDINANCE OF THE CITY OF BLANK, WASHINGTON, ADDING A NEW CHAPTER TO THE BLANK MUNICIPAL CODE RELATING TO THE PROTECTION AND PRESERVATION OF LANDMARKS, ESTABLISHING PROCEDURES FOR DESIGNATION AND PROTECTION OF LANDMARKS; PROVIDING PENALTIES FOR VIOLATIONS OF CHAPTER 20.62.080; PROVIDING FOR APPEALS OF THE LANDMARKS COMMISSION; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, historic preservation fosters civic pride in the beauty and accomplishments of the past and improves the economic vitality of our communities; and WHEREAS, the City of BLANK desires to designate, protect, and enhance those sites, buildings, districts, structures and objects that reflect significant elements of its cultural, aesthetic, social, economic, political, architectural, ethnic, archaeological, engineering, and other history; and WHEREAS, King County is able to provide landmark designation and protection services to the City; and WHEREAS, the City has elected to contract with King County to provide such services; and WHEREAS, it is in the public interest that the jurisdictions cooperate to provide efficient and cost effective landmark designation and protection; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BLANK, WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION 1. Landmarks Commission Created-Membership and Organization. A. The King County Landmarks Commission ( Commission ), established pursuant to King County Code (K.C.C.), Chapter 20.62, is hereby designated and empowered to act as the Landmarks Commission for the City of BLANK pursuant to the provisions of this ordinance. B. The Special Member of the Commission, provided for in Section 20.62.030 of the King County Code, shall be appointed by the City Council. Such special member shall have a demonstrated interest and competence in historic preservation. Such appointment shall be made for a three-year term. Such special member shall serve until his or her successor is duly appointed and confirmed. In the event of a vacancy, an appointment shall be made to fill the vacancy in the same manner and with the same qualifications as if at the beginning of the term, and the person appointed to fill the vacancy shall hold the position for the remainder of the unexpired term. Such special member may be reappointed, but may not serve more than two consecutive, three-year terms. Such special member shall be deemed to have served one full term if such special member resigns at any time after appointment or if AB 4473 Exhibit 1 Page 4
SAMPLE ORDINANCE such special member serves more than two years of an unexpired term. The special member of the Commission shall serve without compensation. C. The Commission shall file its rules and regulations, including procedures consistent with this ordinance, with the City Clerk. SECTION 2. King County Code Chapter 20.62 adopted: A. K.C.C. 20.62.020 Definitions, except as follows: 1. Paragraph H. is changed to read Director is the responsible official who approves building permits for the city. 2. Add paragraph: Q. Council is the City of BLANK City Council. B. K.C.C. 20.62.040 - Designation Criteria, except all references to "King County" are changed to read City of BLANK. C. K.C.C. 20.62.050 - Nomination Procedure. D. K.C.C. 20.62.070 - Designation Procedure, except all references to "King County" are changed to read City of BLANK. E. K.C.C. 20.62.080 - Certificate of Appropriateness Procedure, except the last sentence of paragraph A thereof. F. K.C.C. 20.62.100 - Evaluation of Economic Impact. G. K.C.C. 20.62.110 - Appeal Procedure. H. K.C.C. 20.62.130 - Penalty for Violation of Section 20.62.080 (Paragraph E. above). I. K.C.C. 20.62.140 - Special Valuation for Historic Properties J. Permit applications for changes to landmark properties shall not be considered complete unless accompanied by a certificate of appropriateness pursuant to Section 2.E. above. Upon receipt of an application for a development proposal which affects a King County landmark or an historic resource that has received a preliminary determination of significance as defined in Section 2.A. above, the application circulated to the King County historic preservation officer shall be deemed an application for a certificate of appropriateness pursuant to Section 2.E. above if accompanied by the additional information required to apply for such certificate. SECTION 3. Redesignation of Existing Landmarks. AB 4473 Exhibit 1 Page 5
SAMPLE ORDINANCE All King County landmarks designated pursuant to the provisions of K.C.C. 20.62 that are located within the boundaries of the City shall be subject to the provisions of this ordinance and considered City of BLANK landmarks. SECTION 4. Severability. If any provision of this ordinance or its application to any person or circumstance is held invalid, the remainder of the ordinance or the application of the provision to other persons or circumstances is not affected. SECTION 5. Effective Date. This ordinance shall be published in the official newspaper of the City, and shall take effect and be in full force five (5) days after the date of publication. ADOPTED BY THE CITY COUNCIL AT A REGULAR MEETING THEREOF ON THE DAY OF, 2004. CITY OF BLANK ATTEST/AUTHENTICATED: XXXX, Mayor XXX, City Clerk Approved as to form: XXX, City Attorney Date of Publication: Effective Date: AB 4473 Exhibit 1 Page 6
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The Secretary of the Interior's Standards for Rehabilitation Introduction to the Standards The Secretary of the Interior is responsible for establishing standards for all programs under Departmental authority and for advising Federal agencies on the preservation of historic properties listed in or eligible for listing in the National Register of Historic Places. The Standards for Rehabilitation (codified in 36 CFR 67 for use in the Federal Historic Preservation Tax Incentives program) address the most prevalent treatment. "Rehabilitation" is defined as "the process of returning a property to a state of utility, through repair or alteration, which makes possible an efficient contemporary use while preserving those portions and features of the property which are significant to its historic, architectural, and cultural values." "Rehabilitation" is defined as "the process of returning a property to a state of utility, through repair or alteration, which makes possible an efficient contemporary use while preserving those portions and features of the property which are significant to its historic, architectural, and cultural values." Initially developed by the Secretary of the Interior to determine the appropriateness of proposed project work on registered properties within the Historic Preservation Fund grant-in-aid program, the Standards for Rehabilitation have been widely used over the years--particularly to determine if a rehabilitation qualifies as a Certified Rehabilitation for Federal tax purposes. In addition, the Standards have guided Federal agencies in carrying out their historic preservation responsibilities for properties in Federal ownership or control; and State and local officials in reviewing both Federal and nonfederal rehabilitation proposals. They have also been adopted by historic district and planning commissions across the country. The intent of the Standards is to assist the long-term preservation of a property's significance through the preservation of historic materials and features. The Standards pertain to historic buildings of all materials, construction types, sizes, and occupancy and encompass the exterior and interior of the buildings. They also encompass related landscape features and the building's site and environment, as well as attached, adjacent, or related new construction. To be certified for Federal tax purposes, a rehabilitation project must be determined by the Secretary to be consistent with the historic character of the structure(s), and where applicable, the district in which it is located. As stated in the definition, the treatment "rehabilitation" assumes that at least some repair or alteration of the historic building will be needed in order to provide for an efficient contemporary use; however, these repairs and AB 4473 Exhibit 3 Page 18
alterations must not damage or destroy materials, features or finishes that are important in defining the building's historic character. For example, certain treatments--if improperly applied--may cause or accelerate physical deterioration of the historic building. This can include using improper repointing or exterior masonry cleaning techniques, or introducing insulation that damages historic fabric. In almost all of these situations, use of these materials and treatments will result in a project that does not meet the Standards. Similarly, exterior additions that duplicate the form, material, and detailing of the structure to the extent that they compromise the historic character of the structure will fail to meet the Standards. The Secretary of the Interior's Standards for Rehabilitation The Standards (Department of Interior regulations, 36 CFR 67) pertain to historic buildings of all materials, construction types, sizes, and occupancy and encompass the exterior and the interior, related landscape features and the building's site and environment as well as attached, adjacent, or related new construction. The Standards are to be applied to specific rehabilitation projects in a reasonable manner, taking into consideration economic and technical feasibility. 1. A property shall be used for its historic purpose or be placed in a new use that requires minimal change to the defining characteristics of the building and its site and environment. 2. The historic character of a property shall be retained and preserved. The removal of historic materials or alteration of features and spaces that characterize a property shall be avoided. 3. Each property shall be recognized as a physical record of its time, place, and use. Changes that create a false sense of historical development, such as adding conjectural features or architectural elements from other buildings, shall not be undertaken. The Standards are to be applied to specific rehabilitation projects in a reasonable manner, taking into consideration economic and technical feasibility. 4. Most properties change over time; those changes that have acquired historic significance in their own right shall be retained and preserved. 5. Distinctive features, finishes, and construction techniques or examples of craftsmanship that characterize a property shall be preserved. 6. Deteriorated historic features shall be repaired rather than replaced. Where the severity of deterioration requires replacement of a distinctive feature, the new feature shall match the old in design, color, texture, and other visual qualities and, where possible, materials. Replacement of missing features shall be substantiated by documentary, physical, or pictorial evidence. AB 4473 Exhibit 3 Page 19
7. Chemical or physical treatments, such as sandblasting, that cause damage to historic materials shall not be used. The surface cleaning of structures, if appropriate, shall be undertaken using the gentlest means possible. 8. Significant archeological resources affected by a project shall be protected and preserved. If such resources must be disturbed, mitigation measures shall be undertaken. 9. New additions, exterior alterations, or related new construction shall not destroy historic materials that characterize the property. The new work shall be differentiated from the old and shall be compatible with the massing, size, scale, and architectural features to protect the historic integrity of the property and its environment. 10. New additions and adjacent or related new construction shall be undertaken in such a manner that if removed in the future, the essential form and integrity of the historic property and its environment would be unimpaired. AB 4473 Exhibit 3 Page 20