Historic Preservation Commission Agenda and Packet 2017 05 15

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Historic Preservation Commission Meeting Minutes April 17, 2017 Page 7 of 14 A recent example of an appropriately designed building addition to a historic property is the project at 945 Front Street. This project included a commercial additional to an existing historic building. This addition resulting in a single structure that is considered a single premises for the purpose of water and sewer tap fees. The HPC and City Council reviewed and approved the design through an Alteration Certificate and Planned Unit Development review process. The cost of a water and sewer tap varies depending on factors such as if the property is a residential or commercial use, the size of the water line, annual water demand for commercial uses, and area irrigated for separate irrigation taps. Attached for reference is the City's Tap Fee calculation form. As an example, a combined water and sewer tap for a new commercial building with a 3/4 inch water tap and 0-22 gallons per minute (gpm) instantaneous demand is $35,100. Under the City's Historic Preservation Grant Program, up to $75,000 could be available for new construction grants. This category of grants could cover the cost of new water and sewer taps and provide additional money for other portions of the new construction. One of the purposes of the grant program is to subsidize and incentivize historic preservation when the cost is financially burdensome or the project may not be financially feasible without incentives, such as when a water and sewer tap is required for new construction. In conclusion, historic properties can either landmark and take advantage of new construction grants to cover the possible costs of water and sewer taps or construct appropriately designed additions to create one premises with or without landmarking, and thus avoid the requirement for new tap fees. Except for the current concerns raised, staff is not aware of any other properties where the City's water and sewer tap fee structure was of concern or resulted in a disincentive for preservation of other significant historic properties. Alternatively, if the HPC believes the water and sewer tap fee structure could create a disincentive to historic preservation that design alternative or the current grant program do not adequately addressed, the HPC could make a recommendation further study of this issue to the City Council. Any change to fee structure will need to consider the impact on how other non -historic properties development throughout the City and the City's need to obtain the funds needed to properly maintain its water and sewer systems. Commission Questions of Staff:: Dickinson says after reading this memo, I understand that Staff saw an issue but feels it is solved with our current system. It can be expensive but that expense can be mitigated by our current process and current grant application process. It is not necessarily prohibitive. There are ways around it and if not, there is a way to get grant funding. Zuccaro says that is a good summary. The water and sewer tap fee structure is complex but for a smaller project, you might expect of fee of $35,000 for a new tap for a separate building. We noted in the background discussion that through the Historic Preservation Fund, a commercial property can be eligible for up to $75,000 in grant, so that could cover part of that cost. The purpose of the grant is that when projects are financially burdensome or unfeasible, the fund can help projects. There are different ways to design around the tap fee requirement by making an addition to a building. If there are two separate buildings on one parcel, under our current tap fee regulations and policy, they are two separate tap fees. An addition to an existing building can use the one tap. If the fee is an issue and causing a disincentive, there are some design options and funds available. Dickinson says my understanding is that the complaint/concern was that we want to preserve the front and build something new in the back. Now, the applicant incurs a second tap fee. The applicant then considers demolishing the front building. 931 Main Street presented this evening is an example of connecting the two spaces so that it is continuous. Zuccaro says connection is key to this discussion. We are looking at additions to buildings. Connection can mean a lot of things. Our Public Works department administers what is a single premises or two premises. You can't literally connect two buildings and call it one premises. It