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HomeMy WebLinkAboutOrdinance - 2003-O0063 - Ordinance To Be Known As "Centennial Historical Preservation Initiative" Chpt 26 - 05/22/2003First Reading May 22, 2003 Item No. 70 Second Reading August 6, 2003 Item No. 32 ORDINA!\'CE NO. 2003-00063 AN ORDINANCE TO BE KNOWN AS THE "CENTEl\°NIAL HISTORICAL PRESERVATION INITIATIVE," AMENDING CHAPTER 26, "TAXATION" OF THE LUBBOCK CODE OF ORDINANCES BY ADDING "ARTICLE III. TAX INCENTIVES FOR HISTORIC PRESERVATION" PROVIDING FOR A PARTIAL TAX EXEMPTION FOR RESTORATION OF HISTORIC STRUCTURES ZONED DESIGI\ HISTORIC; PROVIDING FOR ENFORCEMENT THEREOF; PROVfDTNG A PENAL TY; PROVIDING A SAVINGS CLAUSE AND PROVIDl!\'G FOR PUBLICATION. WHEREAS, the City Council recognizes the importance of historically, architecturally and culturally significant sites and structures in the City of Lubbock; and WHEREAS, the City Council has previously established an ordinance fo r zoning of historical sites and structures and designation as Lubbock Historic Landmarks; and WHEREAS, Section 11.24 of the Texas Tax Code enables the City to exempt certain historical sites from ad valorem taxation to encourage their preservation; and WHEREAS, the City Council recognizes the economic benefits of the stabilization, rehabilitation and renovation of properties designated as historic landmarks; and WHEREAS. the Urban Design and Historic Preservation Commission has recommended approval of the historic landmark tax incentives contained in this Ordinance; and WHEREAS, the City Council finds that pm1ial tax exemptions are an incentive to encourage the safeguarding of the City's historic and cultural heritage as embodied and reflected in significant historical structures and sites, NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. THAT this ordinance shall be known as the ''Centennial Historical Preservation Initiative." SECTION 2. THAT Chapter 26, TAXATION, of the Code of Ordinances of the City of Lubbock be amended to add Article Ill. Tax Incentives for Historic Preservation, to read as follows: Ccnlcnnial Historical l'rc~crvalion lni1ia1ivc Page I "ARTICLE III. TAX INCENTIVES FOR HISTORICAL PRESERVATION Sec. 26-31. Purpose. The purpose of this aiticlc is to encourage historic preservation by providing tax incentives for the stabilization, rehabilitation and renovation of properties designated as historic landmarks. Sec. 26-32. Definitions (a) E!igihle pr<~ject costs. Exterior improvements to the structure and to those interior elements determined by the Urban Design and Historic Preservation Commission to be necessary to maintain the historic and structural integrity of the structure. (h) I fistoric landmark. Any building, structure, site, area, or land of architectural, landscape architectural, historical archeological or cultural importance or value, as may be individually designated for preservation by the City Council under Sec. 29-25 of the Lubbock Code of Ordinances. (c) Substantial relwhilitation. Rehabilitation of a structure designated as a historic landmark at a cost that equals or exceeds the lesser of five thousand dollars ($5000.00) or five percent (5%) of the assessed value of the structure. Sec. 26-33. General Provisions (a) Properties individually designated as Lubbock Historic Landmarks that have been substantially rehabilitated may be eligible for partial tax exemption as described in Section 26-34. (b) Any partial tax exemption under this article shall not exceed the total City of Lubbock tax liability due for the property during the period of eligibility. (c) As an incentive for property owners interested in having their property individually designated as a Lubbock Historic Landmark, during the months of September and October, 2003, and the months of January and February of each year beginning in 2004. the zone case fee for designation shall be waived. ( d) Only properties that have been individually designated as a Lubbock Historic Landmark are eligible for partial tax exemption under this article. (e) Property subject to the partial tax exemptions shall include the designated structure and only the land necessary for reasonable access to the structure. Determination of the amount of land necessary for reasonable access to a structure shall be determined by the Lubbock Central Appraisal District as allowed by Section 11.24 of the Texas Tax Code. (f) In order to receive the annual tax reduction, property owners must comply with all applicable City of Lubbock codes, regulations and Centennial Historical Preservation Initiative Page 2 ordinances. These include, but are not limited to, complying with the standards and procedures of the Historical Preservation and Urban Design District portion of Section 29-25; the Propetty Maintenance Code adopted in Section 13-1: and the Zoning Code in Chapter 29 of the Code of Ordinances. (g) Properties located in a Tax Increment Finance Reinvestment (TIF) Zone must be approved by the responsible TIF Board of Directors before a tax exemption may be granted. (h) Current and delinquent taxes, as well as municipal assessments, must be paid in full in order to receive any tax reduction. Sec. 26-34. Partial Property Tax Exemption for Substantial Rehabilitation of Certain Properties Zoned Design Historic. (a) Eligibility. A structure individually designated as a historical landmark, which is substantially rehabilitated in accordance with this section, shall be eligible for an exemption from real property ad valorem taxes levied by the city to the extent of the tax on fifty percent (50%) of the total approved project costs for rehabilitation of the designated historic site. The exemption shall begin the tax year after the project is completed and extend for a period not to exceed 5 years or an amount in excess of the total eligible project cost. (b) Projects. Eligible projects shall be limited to the exterior of the structure and to those interior elements determined by the Urban Design and Historic Preservation Commission to be necessary to maintain the historic and structural integrity of the structure. "Total approved project costs" for use in calculation of the tax exemption in Section 25-34 (a) shall be determined by the Commission upon completion of each project. (c) Retroactivity. This program is not retroactive for previously completed projects. Only projects approved by the Commission after the effective date of this ordinance shall be eligible for tax exemption under this section. (d) Insurance. Projects initiated as a result of destruction or alteration of the structure or site by natural causes ( eg. fire, tornado, water damage, etc.) will only be eligible for that po1tion of the cost that is in excess of any insurance settlement. (e) Application and approval process. Upon application to receive the rehabilitation tax exemption, the Urban Design and Historic Preservation Commission shall review the project for approval under Sections 29-25(j) and (I) of the Historical Preservation and Urban Design District section of the Zoning Ordinance, the ordinance designating the property as a Lubbock Historic Centennial Historical Preservation lni1iati1·e Page 3 Landmark, and the Secretary of Interior's Standards for Rehabilitation (36 CFR Part 67). Approval by the Commission shall be forwarded as a recommendation to the City Council for final action granting the tax exemption. Denial of the application by the Commission may be appealed by the owner to the City Council with notice to the City Manager within ten days of receipt of the Commission's written order. (f) Appraisal District Requirements. Nothing in this article relieves the owner from the responsibility to submit an application for the exemption each year to the Lubbock Central Appraisal District pursuant to Section l l .43(b) of the Texas Tax Code. By filing said application, property owner grants the Urban Design and Historic Preservation Commission the right to make an annual inspection of the property as detailed in Section 26-35. Sec. 26-35. Verification Process. (a) The Urban Design and Historic Preservation Commission shall review annually all those prope11ies that have been granted tax exemptions under this ordinance. (b) If, in the opinion of the Commission, a property that has been granted an exemption is no longer being maintained in an acceptable state of repair, the Commission shall contact the owners of the property and discuss the Commission's concerns with them. (c) Following this discussion, the Commission shall report to the City Council either recommending that the tax exemption for that property be terminated on the last day of the tax year or outlining the steps the owner must take to bring the property into compliance. ( d) City Council, upon receipt of the report of the Commission, and after such notice as may be required by law, may remove the tax exemption if it deems such action appropriate. Sec. 26-36. Transferability of tax benefits. The benefits of these city ad valorem tax incentive programs relating to structures designated as Lubbock Historic Landmarks are transferable and run with the property. Sec. 26-37. Recapture of taxes. (a) In order to maintain eligibility for a tax exemption in accordance with this article, the owner and any representative shall not alter or totally or partially destroy the historically significant structure or site by willful act or negligence during the period of the exemption. Maintenance of historic landmarks is required by Section 29-25(111) of the Lubbock Zoning Code. (b) In the event that the owner has requested and been granted removal of the designation as a Lubbock historic landmark, or if the landmark or the site is altered or totally or partially destroyed, the C'cnlennial Historical l'rcserrntion lnitialive l'age 4 owner shall notify the Planning Depa11ment of the City of Lubbock and the chief appraiser of the Lubbock Central Appraisal District that he is no longer entitled to the exemption. (c) If the Urban Design and Historic Preservation Commission has reason to believe that a structure or site benefiting from a tax exemption has been altered or totally or pai1ially destroyed by the willful act or negligence of its owner or a representative during the period of the exemption, the Commission shall request that the city manager immediately cause the matter to be scheduled for the earliest possible consideration by the City Council. ( d) If, after giving notice of a hearing to the owner, the City Council determines that the structure or site has been totally or partially destroyed or altered by the willful act or negligence of the owner or a representative, the owner shall take corrective measures, if feasible, within the time specified by the city council. If the owner fails to take such corrective measures or if corrective measures are not feasible, the owner shall immediately repay to the city all of the city tax revenues that were not paid because of the exemption plus interest calculated at an annual rate of ten percent. This penalty shall be in addition to any fines levied under the Zoning Code for failure to insure the structural soundness of a landmark property. (e) If the Design Historic zoning designation is removed either by the City Council or at the property owner's request, property owner shall immediately repay to the City all of the city tax revenues that were not paid because of this exemption for the previous five years." SECTION 3. TI-IAT the City Council of the City of Lubbock will review this Ordinance at the end of five years from the date of its passage. SECTION 4. THAT should any paragraph, sentence, clause, phrase or word of this Ordinance be declared unconstitutional or invalid for any reason, the remainder of this Ordinance shall not be affected thereby. SECTION 5. Tl IA T the City Secretary is hereby authorized to cause publication of the descriptive caption of this Ordinance as an alternative method provided by law. Centennial Historical Preservation lnitiati\'c Page 5 AND rT IS SO ORDERED. Passed by the City Council on first reading this 22nd Passed by the City Council on second reading this 6t:h day of May, 2003 day f August, ~3. ATTEST: Q .. , Y"' ~ 1 -t:: ,,., • ✓ ✓--.../ c-,_~-:::::,,,-(;- RebJcca Garza, City Secretary Craig Farm r, naging Director of Planning and Transportation LC:/Cityatt'Lin<la1His1oric Landmark Tax Abatement Orel. August 20. 2003 Centennial Historical i'rescT\ a lion Initiative I/ APPROVED AS TO FORM: / --✓: ( ,.''.,/.-/ .. ,:.,,;.,:, t_'-<:"-...:.---- Linda L. Chamales, Supervising Attorney, Office Practice Page 6