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HomeMy WebLinkAbout20120206 - VIII-B-1 City Council Memorandum To: Mayor Hicks & City Councilmembers From: Justin Fortney, Associate Planner Date: February 6, 2011 Item: Authorize the HPC to prepare nomination of the Hudson property to the National Register of Historic Places Council Action Requested: The HPC seeks authorization to nominate the H.D. Hudson manufacturing property to the National Register of Historic Places Background Information: One of the duties the HPC (Heritage Preservation Commission) is charged with is to nominate properties to the National Register of Historic Places, with the consent of the City Council. The HPC has long recognized the Hudson building’s historical significance to Hastings, Minnesota, and the Nation. Hastings has very few if any historic structures comparable to the Hudson building. With redevelopment/reuse ideas being thought of, the HPC believes it is a good time for the property to be listed on the National Register. They believe doing so would highlight the building’s architectural and historical worth, which may lead to more interest in reusing the property, particular the historical structure. A listed structure may still be demolished, but it is less likely to be done after a community makes the effort to nominate it. In addition, the financial incentives that become available to listed properties will attract developers who specialize in adaptive reuse. The HPC believes the City’s commitment to preserve its historical and architectural heritage through designation of private properties should be matched by its commitment to likewise preserve its own buildings—particularly, the Hudson building, which is one of the most visible historic properties in the downtown area, and the sole undesignated property between two vital historic districts ~The East Second Street Historic District and the West Second Street Historic District. The HPC believes it would demonstrate a double standard if the city asks its citizens to preserve their historic properties for the benefit of the community, but not do the same with its own buildings. Failure to designate the Hudson building would undermine the credibility of the City’s commitment to its own preservation ordinances and to the mission of the HPC. In 2008 the HPC commissioned a study that ultimately focused on 18 properties that met criteria to be designated as local Heritage Preservation sites. One of these properties was Hudson, which the City Council elected not to designate at that time. Their reasoning was that HPC review of the property could make future redevelopment of the site more difficult. The City Council may still consider the property for this local designation. Owners of private property listed on the National Register are free to maintain, manage, or dispose of their property as they choose, provided that no federal monies are involved. In addition, the HPC would not be required or authorized to review proposed changes to a property listed that was not also locally designated. However, with the Hudson property being owned by HEDRA, the HPC would still review and comment on plans as an advisory board. Financial Impact: A 20% state and 20% federal income tax credit is available for reuse projects of listed properties along with Minnesota Historical and Cultural Grants program, funded by Minnesota’s Arts and Cultural Heritage Fund (commonly known as the “Legacy Amendment”). Advisory Commission Discussion: HEDRA discussed nomination at its January 12th meeting and approved the attached resolution asking the City Council to refrain from action that would lead to nomination of the Hudson building until a study is completed to determine the affects of the nomination on the reuse of the Hudson Building. It is not know if HEDRA has plans to studying possible affects. Owner consent is not required for public property to be listed on the National Register, although it is recommended that nominators of public property work closely with the public entity that owns the property. Since HEDRA owns the property, HPC staff asked HEDRA to provide comment prior to seeking authorization from the City Council to move forward with authorization. The HPC is moving forward with the proposal for the reasons listed previously and because they believe nomination should be used as more than just a tool for monetary assistance in the event that historic rehab is profitable. They see it as a way to assure that historic rehab is likely. The HPC came to this decision at its December 20th meeting and at its January 17th meeting it provided information regarding their position for this staff report (8-0). Council Committee Discussion: None Attachments: ! Sections of the December 2011 Hudson Reuse study related to listing the Hudson Building on the NR ! A letter between the Minnesota Historical Society and MnDOT urging preparation and submittal of a National Register Nomination for the Hudson Property ! Information regarding the National Register of Historic Places from the National Park service at: http://www.nps.gov/nr/faq.htm ! HEDRA resolution 2012-02 -Regarding Nomination Sections of the December 2011 Hudson Reuse study Designate Although determined eligible for listing in the National Register of Historic Places, the Hudson Building has not been formally listed. Listing in the National Register qualifies the building for many of the incentives that would appeal to potential developers and to the City, including federal and state tax credits and eligibility for Minnesota Historical and Cultural Grants. This can be pursued by the City as an interim action as the private market approach develops greater interest and demand. HISTORIC DESIGNATION Constructed in phases between 1914 and 1974, the Hudson Building has been determined eligible for listing in the National Register of Historic Places through the historic resource identification and evaluation process undertaken for the bridge replacement project. Although not listed in the National Register, determination of eligibility protects the historic building from adverse effects resulting from federal undertakings, as defined in Section 106 of the National Historic Preservation Act of 1966. The building is not locally designated as a historic property by the Hastings Heritage Preservation Commission, although a designation form has been prepared and the Commission has sought designation[In 2008]. Under the determination of eligibility finding, the period of significance of the property spans from 1914 to 1927. It should be noted that the entire building is the subject of the determination of eligibility. In the case of the Hudson Building however, there are wings and additions that fall outside the period of significance. Even if historical review were to be applied to rehabilitation of the property (for instance, use of historic preservation tax credits), there would likely be greater flexibility granted to remodeling or even removing portions of the building that were constructed outside the period of significance. Historic Designation Advantages ! Designation at the national or local level would serve to raise awareness of the the property’s historic significance within the community, increasing the appreciation of the site’s unique and historic qualities. ! Listing the property on the National Register opens opportunities for funding and financing. Funding through the Minnesota Arts and Cultural Heritage Fund might be accessed by the City for additional studies, mothballing or site preparation related to the historic property. Historic preservation tax credits offer 20 percent of qualified rehabilitation costs and are available at both the federal and state levels. ! Other preservation and tax reduction tools, such as preservation easements, are available for properties listed in the National Register. ! If design review is the result of any historic designations, it would help to assure that historically and architecturally appropriate measures are undertaken during rehabilitation. ! Historic designation, especially at the local level, would help to discourage demolition and assure that out-of-scale or otherwise inappropriate new construction would not be built on the site. ! Regulations stemming from historic designation could result in limited design options and uses that could deter or delay redevelopment, but likely result in a higher quality outcome. Historic Designation Disadvantages ! Local designation by the Heritage Preservation Commission would require additional design reviews for rehabilitation by that Commission. These types of reviews may be negatively perceived by a potential developer. {Local designation is not being proposed at this time} ! National Register or local designation may be considered a liability by potential developers and financiers. Even if historic preservation tax credits were to be explored as a financing tool for rehabilitation, it may be desirable to delay the designation process until a developer is selected. ! If the Secretary of the Interior’s Standards and Guidelines for Rehabilitation are implemented as the result of historic designation, the cost of rehabilitation would likely be higher. {this would be a result of using federal money including grants and tax credits} ! Regulations stemming from historic designation could result in limited design options and uses that could deter or delay redevelopment, leaving the site unused for a longer period of time. {this would be a result of local designation or using federal money including grants and tax credits with listing on the NR} A letter between the Minnesota Historical Society and MnDOT urging preparation and submittal of a National Register Nomination for the Hudson Property Information regarding the National Register of Historic Places from the National Park service at: http://www.nps.gov/nr/faq.htm What is the National Register of Historic Places? The National Park Service administers the National Register of Historic Places. The National Register is the official Federal list of districts, sites, buildings, structures, and objects significant in American history, architecture, archeology, engineering, and culture. National Register properties have significance to the history of their community state, or the nation. Nominations for listing historic properties come from State Historic Preservation Officers, from Federal Preservation Officers for properties owned or controlled by the United States Government, and from Tribal Historic Preservation Officers for properties on Tribal lands. Private individuals and organizations, local governments, and American Indian tribes often initiate this process and prepare the necessary documentation. A professional review board in each state state considers each property proposed for listing and makes a recommendation on its eligibility. National Historic Landmarks are a separate designation, but upon designation, NHLs are listed in the National Register of Historic Places if not already listed. What are the results of listing? In addition to honorific recognition, listing in the National Register has the following results for historic properties: ! Consideration in planning for Federal, Federally licensed, and Federally assisted projects: --Section 106 of the National Historic Preservation Act of 1966 requires that Federal agencies allow the Advisory Council on Historic Preservation an opportunity to comment on all projects affecting historic properties either listed in or determined eligible for listing in the National Register. The Advisory Council oversees and ensures the consideration of historic properties in the Federal Planning process. ! Eligibility for certain tax provisions --Owners of properties listed in the National Register may be eligible for a 20% investment tax credit for the certified rehabilitation of income-producing certified historic structures such as commercial, industrial, or rental residential buildings. This credit can be combined with a straight-line depreciation period of 27.5 years for residential property and 31.5 years for nonresidential property for the depreciable basis of the rehabilitated building reduced by the amount of the tax credit claimed. Federal tax deductions are also available for charitable contributions for conservation purposes of partial interests in historically important land areas or structures. ! Consideration of historic values in the decision to issue a surface mining permit where coal is located in accordance with the Surface Mining Control Act of 1977; and ! Qualification for Federal grants for historic preservation, when funds are available. Owners of private property listed in the National Register are free to maintain, manage, or dispose of their property as they choose provided that no no Federal monies are involved. What are the restrictions, rules, regulations for historic property owners? From the Federal perspective (the National Register of Historic Places is part of the National Park Service), a property owner can do whatever they want with their property as long as there are no Federal monies attached to the property. Can I modify, remodel, or renovate, my historic house? From the Federal perspective (the National Register of Historic Places is part of the National Park Service), a property owner can do whatever they want with their property as long as there are no Federal monies attached to the property.