There's been a bit of disconcerting news on the historic planning/policy front recently concerning local landmarks.
For those who aren't familiar with this process, there are generally-speaking, two types of historic designation: national and local. We have both national historic districts and local historic districts in Durham; sometimes these are co-terminus. For instance, Watts-Hillandale is both a national and a local historic district. Trinity Park, which I chided earlier in the week for not being a local district, is a national historic district. Fayetteville St. is the only local district that isn't a national district.
What's the difference? Put simply, national districts are about money, and local districts are about zoning/land use. There are exceptions to this - but too much to go into here. The result is that most cities, including Durham, have more national districts than local.
National districts let you take a tax break for money you put into renovating your house. If you are renovating it for an income-producing purpose (such as a business or apartments) you can recoup 40% of your investment through your taxes (20% Federal, 20% State). If you are doing your owner-occupied home, you can recoup 30% (all state). It is purely an incentive designation - you can still tear down houses a-plenty to warm your tiny Grinch heart in a national district without impediment.
Local historic districts confer no monetary advantage. However, all new construction, many exterior modifications to a 'contributing' structure in the district, and all proposed demolitions must go before a special review board of citizens known as the Historic Preservation Commission (HPC). If they determine the change to be in keeping with the character of the district, you receive a Certificate of Appropriateness (COA) to do the work.
While I've referred to districts thus far (i.e. a quantity of houses/buildings,) individual properties can also be listed on the national register, and they can also receive individual HPC oversight if they are designated a Local Landmark.
Any individual listing - whether national or local - requires that the structure meet a higher bar for importance than a group of houses in a district. I.e. a little mill house could easily make it as part of a larger district, but would be unlikely to be listed/landmarked as an individual.
For the national register, individual listing is exactly the same as district listing - same tax advantages, no local enforcement. For local landmarks (in Durham), though, there is a substantive difference; local landmarks receive a 50% abatement of their property taxes.
That a pretty strong incentive, and it has been given out sparingly. But your major downtown projects all have it. Preservation Durham has at least a partial list here.
The process to become a local landmark is a bit odd; applications are accepted between January and April, the HPC sees applications in October, the apps (as a bunch, if there are a bunch) then go before City Council so they can decide which properties will be made local landmarks.
Funny thing, this year. Well, not really that funny.
This year, the applications went to the HPC on October 2nd. The historic preservation planner was to send them to the State Historic Preservation Office (SHPO) soon thereafter so that a staff person could review the applications and provide comments within thirty days of receipt (as is required in the state enabling legislation).
Apparently, the landmark applications were sent to the SHPO, but never arrived. This was not discovered by the historic preservation planner until earlier this month when a fragment of the envelope that contained the applications was returned to the City with a note from the postal service that the package had been eaten by some sort of machine. There were ten applications.
There was insufficient time to review the applications at that point, even hand-delivered by the preservation planner. The city council pulled the items from the agenda, and those cases will need to wait a year to be assessed.
Evidently, though, the city council used the opportunity to question the policy - why give any tax abatement? Can we designate landmarks without this? Should houses be eligible? Can we raise the bar even further? The majority of council, per hearsay, seemed to be leaning towards denying the applications anyway.
I think it would be short-sighted to do away with the property tax abatement. While it is true that projects such as American Tobacco and Liggett will theoretically produce less property tax revenue for the city than they could have, the success of those projects depends on incentives such as these. Revitalizing historic properties is not for the faint of heart, particularly on that scale, but also on a smaller scale.
In fact, I would advocate for policy to move in the opposite direction - provide some degree of property tax abatement for all contributing structures in a local district. It doesn't have to be 50%, but even 10% might change the minds of people hesitant to designate their neighborhoods as local districts because they are afraid they won't be able to, in theory, do some crazy stuff to the front of their house.
But even more salient is the concern some people have that historic districts promote 'gentrification' by requiring more costly repairs to houses, and promoting renovation. What better way to mitigate this possibility?
I'd urge the council to improve this process - the penalty to people/companies who put effort into this is pretty strong, through no fault of their own - in part because of this one-time-a-year-at-the-end-of-the-year thing. But more broadly, council should consider strengthening incentives for historic preservation at the local level, rather than diminishing them. We can certainly ill-afford disincentives to preservation in Durham.