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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/03/2000 - FIRST READING OF ORDINANCE NO. 137, 2000, REPEALIN AGENDA ITEM SUMMARY ITEM NUMBER: 19 FORT COLLINS CITY COUNCIL DATE: October 3, 2000 STAFF: Timothy Wilder SUBJECT: First Reading of Ordinance No. 137, 2000, Repealing Ordinance No. 24, 1996, and Amending 3 Chapter 14 of the City Code to Establish the Landmark Rehabilitation Loan Program. a ;RECOMMENDATION: Staff recommends adoption of the Ordinance on First Reading. The Landmark Preservation Commission recommended adoption of the Ordinance at a hearing on August 23, 2000. NNANCIAL IMPACT: Since 1995, the City of Fort Collins has allocated $20,000 for a grant program to fund the exterior rehabilitation of local historic landmarked properties. This program has funded dozens of residential and non-residential projects. A maximum of $2,500 was granted to residential projects and a maximum of $5,000 was granted to non-residential projects. Applicants were required to match grant awards with an equal or greater amount of their own funds. Applications were reviewed through a competitive, once-yearly process involving City staff and the Landmark Preservation Commission (LPC). XECUTIVE SUMMARY: This Ordinance involves replacing the Landmark Rehabilitation Grant Program with a new Landmark Rehabilitation Loan Program. Zero-interest loan amounts would be provided of up to 7 $5,000 per property. Loan repayments collected at the sale of a property would revolve back into the Program, providing additional rehabilitation funds over time. BACKGROUND: The 1999-2002 Major Projects Work Program included an investigation into converting the Landmark Rehabilitation Grant Program to a low- or no-interest loan program. This effort has closely involved the Landmark Preservation Commission (LPC). The Landmark Rehabilitation Grant Program was formed in 1994 as a result of an action item in the Historic Resources Preservation Program Plan. The Program was intended to provide an € incentive for preservation and rehabilitation of historic resources. In 1994, and again in 1995, $20,000 was allocated to the program by City Council. However, in 1996, City Council adopted Ordinance No. 24, 1996 establishing the Program as an ongoing project of the City and dedicating $20,000 annually to it. F DATEZ00 2 ITEM NUMBER: 19 landmarked properties or contributing structures in historic districts are eligible for grant can be applied only to exterior rehabilitation work, e.g., siding repair, porch to work with approved material, original decorative elements, etc. Grants of up to , sidential and $5,000 for non-residential are awarded through a competitive selection process held once a year. Successful applicants must match the amount of grant money received with an equal or greater amount of money. The grant program has been successful at attracting the designation of properties. Owners of 47 separate properties designated between 1994 and 2000 applied for a local landmark grant. Since 1995, the first year that applications were accepted, 102 applications had been received, 62 projects had been funded, 38 had been completed(12 of the 62 are still in progress), and 11 were rescinded. The completion rate was about 80% for all projects. The primary issue facing future grant applicants is the rising cost of rehabilitation. While the maximum grant amounts for projects have not changed, each year the grants provide a smaller share of a project's total cost. In addition, as more properties are designated as local landmarks, there will be increasing competition for the same amount of money. For these reasons grant funding will become less important as an incentive for encouraging landmark designations. While the grant program does not have the capability of recapturing the City's investment over the long-term, a loan program can provide a long-term source of funding for rehabilitation. Some of the benefits of a loan program include: 1. A revolving loan program has the potential of providing more money for rehabilitation work. Revolving loans are a long-term investment in historic rehabilitation,rather than a one-time incentive. 2. A historic revolving loan program is consistent with City policy. The Historic Resources Preservation Program Plan recommends a revolving loan fund as an incentive for historic resource protection and rehabilitation. 3. A historic loan program can be nearly as easy to administer as the grant program. There is precedent for City-administered loan programs including the Home Program and the Zilch program. As part of the analysis, staff collected information on successful and unsuccessful historic rehabilitation loan programs in other communities. All of the communities examined by staff which provide loan programs used low-interest loans. The success of these programs depended on the interest rates in the lending market. The City of Greeley provides a low-interest loan program for historic properties but it has attracted only a few landmark designations. However, many of the staff in other communities felt that no-interest loans could provide an excellent incentive for historic rehabilitation. The City of Fort Collins provides two other zero-interest loan programs: the Homebuyers Assistance Program and ZILCH loans. The Homebuyers Assistance Program lends up to $5,000 for purchase of a home to qualified buyers with repayment upon sale of the home. The ZILCH program provides up to $2,000 for energy improvements with repayment terms of between 24 and 60 months. DATE: cto er , 2000 3 ITEM NUMBER: 19 The components of the proposed Landmark Rehabilitation Loan Program include: • 1. Only exterior rehabilitation of designated landmarks, including residential and non- residential properties would be eligible for loans. 2. The same project elements as are funded under the grant program would be eligible (i.e., porches, roofs, siding trim, etc.). 3. Loans of up to $5,000 would be available for residential and non-residential properties. 4. Rehabilitation work ';would be required to be completed within one year, with the possibility of a one-year extension. 5. No interest would be charged on the loan. 6. Acceptance of rehabilitation funding would require a Promissory Note and a second j Deed of Trust on the property to secure the funds. This means that the City would hold a lien on the property until the debt is paid. 7. The loan would have to be repaid at the time the property is sold or transferred. :1 8. Loan amounts repaid to the City would recycle back into the Loan Program. 9. Properties could hold more than one outstanding loan. rr 10. The same yearly, competitive review process in place for the Landmark Rehabilitation "e Grant Program would be used for the Loan Program. The LPC reviewed the Landmark Rehabilitation Loan Program on July 26, 2000 and held a public hearing on the issue on August 23, 2000. Several public comments were received before and during the hearing. The participants stated that they liked the existing grant program. However, if a loan program was adopted, they preferred that the maximum amount for t= residential projects ($2,500) be raised. yr .1 t 'n • LANDMARK PRESERVATION COMMISSION Regular Meeting August 23, 2000 - Draft Minutes Council Liaison: Scott Mason (226-4824) Staff Liaison: Joe Frank (221-6376) Commission Chairperson: Per Hogestad (416-7285) (Note: These draft minutes have been modified to include only items relevant to the proposed Landmark Rehabilitation Loan Program for the City Council Hearing on September 19.) CALL TO ORDER AND ROLL CALL: Per Hogestad called the meeting to order at 5:36 p.m., at 281 North College Avenue. Commission members Angie Aguilera, Agnes Dix, Bud Frick, Angela Milewski, and Rande Pouppirt were present. Janet Ore was absent. Carol Tunner, Timothy Wilder and Joe Frank represented staff. GUESTS: Elizabeth and Bruce Berkowitz for 811 Peterson. David Alciatore and Kevin Murray for 626 S. Meldrum. David Lawser, Jim Joy, Michael Sherman, Alyson McGee, Ray Kramer, and Tom Fyffe for 4605 S. County Road 9, Preston Farm. Carolyn Knape, 641 Remington St, for Public Hearing. DISCUSSION ITEMS: Public Hearing on Converting the Landmark Rehabilitation Program to a Loan Program (Timothy Wilder, City Planner; Carolyn Knape, 641 Remington St.) Mr. Hogestad opened the Public Hearing. Mr. Wilder summarized the proposed ordinance 'Repealing and Reestablishing the Landmark Rehabilitation Loan Program as an Ongoing Project of the City of Fort Collins" and distributed and summarized a set questions/answers about the Grant to Loan Conversion. Mr. Wilder emphasized that the loan program would follow the current guidelines for the grant program, but would allow for an eventual recoup of funds by the city, with those funds returning to the loan program. He noted that he had received one phone comment, with the suggestion being that loan amounts be increased. Mr. Hogestad asked about the possibility of increased overall funding; Mr. Wilder said that the amount could be revisited each year to assess its adequacy. There was some discussion among Commission members about loan amounts, limits, and the possibility of increases in funding, with the sense being that there was support for offering larger amounts if possible. Mr. Pouppirt suggested that the total amount be set the same for individual or commercial projects, with the limit set at$5000 for each. Mr. Hogestad called for public input. • Landmark Preservation Commission August 9,2000 Meeting Minutes Page 2 Ms. Knape, 641 Remington, stated that while it was worth applying for a grant for as little as $2500, it would not be worth the effort for a loan of like value. She would favor having the same amount set for both commercial and individual projects. Ms. Milewski moved that the Commission recommends approval of the change from a grant to loan program as presented, except that Section 5 state that loans for rehabilitation be $5000 for both residential and commercial projects. Mr. Pouppirt seconded the motion, which passed unanimously (6-0). Mr. Hogestad closed the Public Hearing. The meeting was adjourned at 7:10 p.m. Submitted by Holley Lange, Secretary. • ORDINANCE NO. 137, 2000 OF THE COUNCIL OF THE CITY OF FORT COLLINS REPEALING ORDINANCE NO. 24, 1996, AND AMENDING CHAPTER 14 OF THE CODE OF THE CITY OF FORT COLLINS TO ESTABLISH THE LANDMARK REHABILITATION LOAN PROGRAM WHEREAS,the Community Goals section of City Plan,(the"Comprehensive Plan"),states that historic buildings and districts will be preserved and protected; and WHEREAS,on August 21, 1990,the City Council adopted Resolution 90-104,directing the Landmark Preservation Commission (the "LPC") and City staff to prepare for subsequent presentation to the City Council a process and criteria for evaluating historic buildings and a procedural mechanism for effecting the preservation of these structures; and WHEREAS, on November 16, 1993, the Council adopted Resolution 93-171 adopting for incorporation into the Comprehensive Plan an Historic Resources Preservation Plan (the "Plan"); and WHEREAS, the Council established a Landmark Rehabilitation Grant Program as an ongoing project of the City of Fort Collins pursuant to Ordinance No.24, 1996,which ordinance was subsequently amended by the Council pursuant to Ordinance No. 129, 1997; and • WHEREAS, upon recommendation of the LPC, the City Council has determined that it is in the best interests of the City to establish a revolving loan program to replace the grant program that was established pursuant to Ordinance No. 24, 1996, in order to enable the City to participate in increased numbers of rehabilitation projects by gaining the maximum return on investment through loans rather than grants; and WHEREAS, an important element of the Comprehensive Plan is the establishment of a Revolving Loan Fund, which would enable the City to offer financial support for the preservation of historic structures within the City; and WHEREAS,the City Council believes that the establishment of such aprogram,to be known as the "Landmark Rehabilitation Loan Program," would be in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Ordinance No. 24, 1996, as amended pursuant to Ordinance No. 129, 1997, be, and hereby is repealed. Section 2. That Chapter 14 of the Code of the City of Fort Collins be amended by the addition of a new Article V to read as follows: • ARTICLE V. LANDMARK REHABILITATION LOAN PROGRAM Sec. 14-81. Purpose. The City Council hereby establishes a landmark rehabilitation loan program and finds that the program promotes a valid public purpose of increasing the quality, integrity and permanence of the city's stock of historic landmarks for the enjoyment and benefit of present and future generations of citizens of the city by making available to the owners of locally designated landmarks or contributing structures in local landmark districts a source of funding for exterior rehabilitation of such structures. Sec. 14-82. Establishment; funding. The City Manager shall administer the program for awarding zero-interest loans for the rehabilitation of local landmark structures and/or contributing structures in local landmark districts. The City Manager may promulgate procedural rules and regulations for the efficient administration of the program. No such loan shall exceed the sum of five thousand dollars ($5,000.)unless the City Council, by ordinance or resolution, authorizes a larger loan. All loans shall be funded solely from those funds held by the city for financial support of the program in the General Fund, and all loans shall be expressly contingent upon the availability of sufficient funds to support the loan. Loan recipients shall,as a condition of obtaining the loan,agree to repay the loan in full upon sale or transfer of the property. All loan repayments shall be returned to the landmark rehabilitation loan program. Sec. 14-83. Criteria. No landmark rehabilitation loan shall be awarded unless the following criteria and requirements have been met: (1) The subject structure must have been designated as a local landmark or be a contributing structure in a local landmark district pursuant to this Chapter before the landmark rehabilitation loan can be awarded. (2) All loan recipients shall provide matching funds in an amount equal to or greater than the amount of the loan. (3) The matching funds provided by the loan recipient may be utilized only for exterior rehabilitation of the subject property and/or the stabilization of the structure, the rehabilitation of electrical, heating, or plumbing systems, and/or the rehabilitation or installation of fire sprinkling systems in commercial structures. Neither the loan nor the matching funds shall be used for the installation of nor rehabilitation of signage or interior rehabilitation or decoration,nor the installation of building additions or the addition of architectural or decorative elements which are not part of the landmarked structure. (4) Loan funds may be expended only for rehabilitation of the exterior of a locally designated landmark structure or contributing structure in a local landmark district. No interior improvements may be purchased utilizing city loan funds. (5) The standards and/or guidelines of the city and the United States Secretary of the Interior for the preservation, reconstruction, restoration or rehabilitation of historic resources then in effect shall serve as the standards by which all rehabilitation work must be performed. (6) No loan funds shall be disbursed until after the recipient has completed the work, the work has been physically inspected by the city and has been approved by the City Manager and the loan recipient has documented the cost of the work by submitting to the city copies of all bills,invoices,work orders and/or such other documentation showing,to the satisfaction of the city, that the funds requested are reasonable and are supported by actual proof of expense. (7) Loan recipients shall, as a condition of the loan,prominently place a sign upon the property being rehabilitated stating that such rehabilitation has been funded, in part, through the city's landmark rehabilitation loan program. (8) Property owners who have previously received loans shall be eligible for subsequentloans. (9) All rehabilitation work shall be completed within one(1)year from the date upon which the loan was awarded; provided, however, that upon application and a showing of good cause as to why the project cannot be timely completed,the Landmark Preservation Commission may authorize an extension of up to one (1) additional year for completion of the work. (10) No landmark rehabilitation loan shall be awarded unless the Landmark Preservation Commission (or in cases of loans exceeding the maximum amounts established herein, the City Council) first determines that: (a) The applicant has demonstrated an effort to return the structure to its original appearance; (b) It is in the best interests of the public welfare that the structure proposed to be rehabilitated be preserved for future generations;and (c) The amount proposed to be spent on exterior rehabilitation is reasonable under the circumstances. (11) No landmark rehabilitation loan shall be awarded unless the loan recipient has, as a condition of obtaining the loan, agreed to repay the loan in full upon sale or transfer of the property. Sec. 14-84. Application; awards. The City Manager shall establish the application deadline for each year that the program is administered, which deadline shall be not sooner than sixty (60) days from the date that it was established by the City Manager. Applications received after the application deadline will not be considered. Notification of loan awards shall be made by mail on or before the first day of March. Introduced, considered favorably on first reading, and ordered published this 3rd day of October, A.D. and to be presented for final passage on the 17th day of October, A.D. 2000. Mayor ATTEST: City Clerk Passed and adopted on final reading this 17th day of October, A.D. 2000. Mayor ATTEST: City Clerk