07.130 Determination of Economic Hardship

The determination of economic hardship shall require the applicant to prove the existence of a condition of unreasonable economic return. A. Application for Determination of Economic Hardship. An Application for a Determination of Economic Hardship shall be made on a form available from the Planning Department and shall be submitted to the Zoning Administrator. The application must include information necessary to make findings on the Standards for Determination of Economic Hardship. B. Standards for Determination of Economic Hardship. The Historic Preservation Commission shall make findings on the following standards in order to make such determination: 1. the applicant’s knowledge of the landmark designation at the time of acquisition or whether the property was designated subsequent to acquisition; 2. the current level of economic return on the property as considered in relation to the following: (a) the amount paid for the property, the date of purchase, and party from whom purchased, including a description of the relationship, if any, between the owner of record or applicant and the person from whom the property was purchased; (b) the annual gross and net income, if any, from the property for the previous three years, itemized operating and maintenance expenses for the previous three years, and depreciation deduction from annual cash flow before and after debt service, if any, for the previous three years; (c) remaining balance on any mortgage or other financing secured by the property and annual debt service, if any, during the previous three years; (d) real estate taxes for the previous three years and assessed value of the property according to the two most recent assessed valuations; (e) all appraisals obtained within the previous two years by the owner or applicant in connection with the purchase, financing, or ownership of the property; (f) the fair market value of the property; (g) form of ownership or operation of the property; i.e., sole proprietorship, for-profit corporation or not-for-profit corporation, limited partnership, joint venture, etc.; and (h) any state or federal income tax returns on or relating to the property for the previous two years. 3. the marketability of the property for sale or lease considered in relation to any listing of the property for sale or lease and price asked and offers received, if any, within the previous two years. This determination can include testimony and relevant documents regarding: (a) any real estate broker or firm engaged to sell or lease the property; (b) reasonableness of the price or rent sought by the applicant; and (c) any advertisements placed for the sale or rent of the property. 4. the infeasibility of alternative uses that can earn a reasonable economic return for the property as considered in relation to the following: (a) a report from a licensed architect with experience in rehabilitation as to the structural soundness of any structures on the property and their suitability for rehabilitation; (b) estimate of the cost of the proposed construction, alteration, demolition, or removal and an estimate of any additional cost that would be incurred to comply with the decision of the Historic Preservation Commission concerning the appropriateness of proposed alterations; (c) estimated market value of the property in the current condition after completion of the demolition and proposed new construction and after renovation of the existing property for continued use; and (d) the testimony of an architect, appraiser, or other professional experienced in rehabilitation as to the economic feasibility of rehabilitation or reuse of the existing structure on the property. 5. economic incentives and funding available to the applicant through federal, state, city, or private programs.