Agenda Date: 11/06/2018
Subject:
Title
A resolution authorizing the city, through the Historical Preservation Board, to act as a reviewing entity for the State Historic Preservation Income Tax Credit Program for qualifying rehabilitation projects under Colorado House Bill 90-103 (C.R.S. §39-22-514, AS AMENDED)
Body
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Presented By: |
Andrea Mimnaugh, Historic Preservation Planner |
REQUESTED COUNCIL ACTION:
Does city council support the city continuing to be a reviewing entity of the State Historic Preservation Income Tax Credit Program for qualifying rehabilitation projects pursuant to C.R.S. §39-22-514.5, as amended?
BACKGROUND:
On May 14, 2018, the Governor signed into law House Bill 4-1311 (C.R.S. §39-22-514.5, as amended), titled The Colorado Job Creation and Main Street Revitalization Act, extending the historic preservation income tax credit for the rehabilitation of qualified historic properties in Colorado.
The State Historic Preservation Income Tax Credit Program for rehabilitation of designated historic structures provides tax credits of 20 or 25 percent of qualified projects. This is a dollar-for-dollar reduction in tax owed to the state of Colorado. Under the Act, local governments may opt to review tax credit applications for projects within their jurisdiction. The City of Littleton has reviewed the applications since 1995.
In May, 2018, the state extended the tax credit program. In order for the city to continue to review applications at the local level, city council must pass a resolution stating the city will act as the reviewing entity for applications within its jurisdiction, in place of the State Historic Preservation Office.
PROGRAM OVERVIEW:
Eligible Properties
Eligible properties must be at least 50 years old and meet one of the following:
• Designated as an individual Littleton landmark
• Located in a Littleton historic district and designated as “contributing” to the historic district
• Located in Littleton and listed on the National Register of Historic Places or the State Register of Historic Properties
• Located in Littleton and determined to be “contributing” to a historic district listed on the National Register of Historic Places
Qualified Projects
Qualified rehabilitation projects can be for interior and/or exterior work, provided the total cost of the project is at least $5,000. The project must be consistent with the Secretary of Interior’s Standards for Rehabilitation. Additionally, any work performed on the exterior of a building must obtain a certificate of historic appropriateness from the city.
Fees
The Act allows the reviewing entity to charge a “reasonable application fee” for the review of projects, but does not specify an amount. Per the Act, all fees collected by the reviewing entity must be set aside for historic preservation uses. Typically, fees collected in Littleton have been used to purchase landmark plaques. Littleton’s current fees are:
• Projects less than $5,000: not eligible for the tax credit
• Projects between $5,000 and $15,000: no fee
• Projects over $15,000: $500 fee
Staff will be reevaluating application fees in the future.
STAFF ANALYSIS:
The state historic preservation tax credit provides a significant economic benefit to owners and leasees of designated historic properties in the city. The community also benefits as preservation of historic structures helps ensure these vital assets remain a part of the city’s community character.
For reference, staff typically reviews between three and ten tax credit applications annually.
FISCAL IMPACTS:
For each tax credit application for a rehabilitation project of $15,000 or greater, the city will collect a fee of $500, which must be set aside for historic preservation uses.
STAFF RECOMMENDATION:
Staff recommends city council approve Resolution 66-2018 authorizing the city to continue to act as a reviewing entity for the State Historic Preservation Income Tax Credit Program for qualifying rehabilitation projects pursuant to C.R.S. §39-22-514.5, as amended.
OPTIONS/ALTERNATIVES:
The city council may take the following actions on the resolution:
1. Approve Resolution 66-2018, which establishes the city as a reviewing entity of the State Historic Preservation Income Tax Credit Program for qualifying rehabilitation projects pursuant to CRS. §39-22-514.5, as amended.
2. Deny Resolution 66-2018, which will require owners and lessees of qualified historic properties to apply to the State Historic Preservation Office to have their tax credit applications reviewed.
SUGGESTED MOTION:
I move to approve the resolution authorizing the city, through the Historical Preservation Board, to act as a reviewing entity for the State Historic Preservation Income Tax Credit Program for qualifying rehabilitation projects pursuant to C.R.S. §39-22-514.5, as amended.