Economic Incentives for Historic Preservation in the Oak Cliff Gateway

OOCCL – October 13, 2014

Economic Incentives for Historic Properties - Purpose

!   Provide more economically feasible uses for historic buildings

!   Increase a property’s income potential and discourage demolition.

!   Promote preservation by increasing redevelopment options and increasing income potential.

!   Allow “underparked” historic buildings to attract tenants and compete with new construction.

!   Encourages continued neighborhood revitalization

!   Increases property values, tax base and sales tax receipts

!   Retain character defining historic structures throughout Oak Cliff

Types of Incentives

o Density Bonus

o Conditional Use

o Parking Reductions

Density Bonus !  A density bonus is an incentive-based tool that

permits developers to increase the maximum allowable development on a property in exchange for helping the community achieve particular public policy goals such as preserving open space, preserving low-income housing or historic preservation.

!  Relieves redevelopment pressure and provides a potential source of income for historic buildings through the sale of those rights to developers.

Examples

Example

!  San Francisco’s TDR program protects historic buildings by 1.) allowing the permanent transfer of the unused permitted floor area from a historic building to other development parcels and

!   2.) using the sale of those transferred rights as a source of funds to rehabilitate the historic structure. TDR allows projects to increase the permitted floor-area ratio...

!  Portland, Austin and Seattle have similar programs with varying degrees of success.

!  It’s unclear if this would work here because of the abundant area available for development and a very pro-developer climate.

Conditional Use

!  A use that is otherwise not allowed in a district but that can be allowed under the condition that it occur in a historic landmark

Examples

Spokane – B&B

!  Conditional Use. A bed and breakfast facility must be accessory to a residential household living use on a site. This means that the individual or family who operate the facility must occupy the house as their primary residence. The house must be on/in one of the following historic registers:

!  Spokane Register of Historic Places or District.

!  Washington Heritage Register; or

!  National Register of Historic Places.

Baton Rouge – B&B

!  Conditional Uses

!  Bed and breakfast home – Limited to four (4) guestrooms within National Register Historic Districts or Sites or homes listed on the National Register of Historic Places or within homes a minimum of fifty (50) years old.

Portland – Office, Retail and Others

!  Allows nonresidential uses, such as retail, office and others, in up to 100 percent of the floor area in a Landmark. Requires a land use review to minimize potential impacts on nearby residences. Increases development options and income potential.

San Francisco – Retail and Restaurant

!   Provide for flexibility in permitted uses, thus encouraging the adaptive reuse of local landmarks and landmark districts. Zoning flexibility is a common historic preservation strategy used in other local jurisdictions to encourage reuse of local landmarks.

!   Non‐Residential Use in Residential Districts For Article 10 Landmarks in Residential Districts, the Planning Code permits any ground floor use listed with Conditional Use Authorization from the Planning Commission. The Planning Commission must adopt findings that the proposed use would enhance the feasibility of preserving the landmark.

!   Example: Typically, retail or restaurant use is not permitted within a Residential District. With Conditional Use Authorization, retail or restaurant use would be permitted within an Article 10 Landmark. Any proposed work to character‐defining features or the installation of business signage would require review and approval by the HPC, or delegated to planning staff by the HPC, prior to the hearing before the Planning Commission.

San Mateo County – Regulation Example

!   Location of uses not allowed by the zoning district regulations but determined by the Planning Commission to be compatible in structures listed in the National Register of Historic Places, or County Historic Landmarks and/or Historic Districts.

!   1. The Historic Resources Advisory Board shall review all applications and report to the Planning Commission prior to its public hearing on the compatibility and appropriateness of the use in the historic landmark and/or historic district.

!   2. The Planning Commission shall make the following findings prior to approving any permit: !   The use will contribute to the preservation of the historic landmark. !   The use is compatible with the design of the structure and will not require

alterations which will destroy or alter its historic character. !   The use is compatible with surrounding land use and the character of the area.

!   It is demonstrated that the impacts of the use on the surrounding area, including noise and traffic, can be mitigated.

!   The use is not detrimental to the public health, safety, or welfare.

Parking Reductions

o Parking requirements are reduced for historic properties to allow landlocked structures more flexibility in attracting tenants and maintaining economic vitality

Examples

New Jefferson PD

•  The new Jefferson PD will allow for a 100% reduction in parking requirements for all uses in all buildings built before 1989 in Subareas 1 and 2. New structures and additions to old structures must comply with current parking requirements.

Bishop / Davis PD 830

!   LEGACY BUILDING AMENDMENTS.

!   If the director finds that all of the following standards apply to a building within this district, the director authorized to add the building to the legacy building list (Exhibit 830B): !   (1) the building was constructed before 1957 if fronting on

Davis Street, Tyler Street, Polk Street, or 7 Street east of Madison Avenue and before 1945 if fronting on Bishop Avenue;

!   (2) the primary street-facing facade of the building is within feet of the right-of-way line of Davis Street or within five feet of the 25-foot front yard setback line on Bishop Avenue;

!   3) the building’s main entrance faces Davis Street or Bishop Avenue;

!   (4) the building window and door openings total at least 20 percent of the facade area that faces Davis Street or Bishop Avenue; and

!   (5) off-street parking is not located in the required front yard

PD 830 Approved 8/11/10

!  Legacy building.

!  (A) For residential uses within a legacy building, off-street parking requirements may be reduced an additional 25 percent.

!  B) For retail-related uses and office uses within a legacy building, off- street parking is not required.

Examples

Bolsa – while the downstairs is a restaurant, the upstairs is office and does not require parking.

Brumley Gardens

Sherwin Williams

Oil and Cotton

Padillia Gallery

Chad West Attorney

Oak Cliff Coffee Roasters – while partially a restaurant, the structure also has

a retail component that does not require parking

Square Foot Tyler St. Properties

Lucky Dog Books

Cannon’s Village

Tyler / Davis

Bishop Arts CD 7 Parking Requirements

!   CD 7 Ordinance 25115 was amended and requirements were reduced on 11/12/02

Oak Cliff Gateway - Proposed

!  Period of significance – Structures built prior to 1957

Article XIII !  Vague – Possibly up to 50%. Structures

that are either eligible or on the National Register of Historic Places OR City of Dallas Landmarks retain delta credits

Current Recommendations - City Staff

!  25% for office/retail !  25% for residential !  0% for restaurant

Recommendations – Steering Committee

!  Previously – 50% Office/Retail

!  Currently !  Office/Retail – 25% !  Residential – 25% !  Restaurant – 0%

Current Recommendations - Kidd Springs, East Kessler, Lake

Cliff, Dallas Homeowner’s League and Old Oak Cliff

Conservation League

!  15% for office/retail

!  25% for residential

!  0% for restaurant

In Conclusion

!  The successes that are occurring along the Davis corridor since 2010 would not have been possible without significant parking reductions

!  Two of the 3 finalists for this year’s OOCCL Ruth Chenoweth Preservation Achievement Award would not have been possible without significant parking reductions

!  ALL the current proposed parking reductions that are being recommended for the Oak Cliff Gateway are marginal and insignificant and they will not result in the positive historic adaptive reuse we are now seeing on Davis.

!  The early 1900’s buildings OOCCL has singled out as At Risk and many others will not survive the proposed increased density without significant, tangible, monetary incentives. The heights are even greater in the Gateway. Deep parking reductions and conditional use permits should be added and the area increased beyond the listed streets.

!  NO current neighborhood problems are being caused by the Legacy Amendment, they are being caused by Bishop Arts parking requirement reductions for restaurants that passed in 2002.

!  Additionally the 2010 wet/dry vote has increased the number of “restaurants” open late serving alcohol. PD830 also increased the size of the Conservation District and did away with the residential/light use zoning sub-area and that has added to those problems. These are separate issues.

!  It is misleading and confusing for us to recognize and reward successes while simultaneously supporting insignificant reductions that would have made those same successes impossible.

!  These insignificant incentives are not serious about historic preservation.

!  Compared to 2010, there is more political will for more historic preservation incentives rather than less. Particularly after the election of Scott Griggs and the recent successes of new businesses in old buildings on Davis.

!  OOCCL has been very successful promoting historic preservation and the adaptive reuse of historic structures. OOCCL has had significant media exposure for these very reasons. The public has come to expect it of us. It would be counter-productive to do anything less now - particularly with such a huge density driven zoning case in some of the oldest areas of Dallas.

!  Recent demolitions downtown on Main St. have made people aware that our historic resources are threatened in this current business climate. It is more important than ever to make the old buildings worth more standing rather than torn down. They need all the incentives they can get.

Moving forward… !   Dis-incentivize tear downs and incentivize preservation and

adaptive reuse

!   Support generous incentives to retain our character defining structures

!   Advocate 100% reduction in parking requirements for retail/office uses in Legacy Structures

!   Advocate 50% reduction in parking requirements for residential uses in Legacy Structures

!   Advocate Conditional Use permits for restaurants, office and retail in any area of the Gateway in City of Dallas Landmarks.

!   Advocate Conditional Use permits in any area of the Gateway for Bed and Breakfasts in City of Dallas Landmarks of National Register properties.

!   Remove the Lancaster Commercial National Register Historic District from the Gateway or cap the height at 2-stories.