Staff Report PLANNING DIVISION DEPARTMENT of COMMUNITY and NEIGHBORHOODS To: Salt Lake City Mayor Jackie Biskupski From: Amy Thompson, [email protected] (801) 535-7281 Date: August 29, 2018 Re: PLNAPP2018-00507 - Appeal of Historic Landmark Commission Decision to deny a request for Economic Hardship of three contributing structures Appeal of Historic Landmark Commission Decision PROPERTY ADDRESS/PARCEL ID: 248 W Bishop Place Parcel ID 08-36-254-061 265/267 W Bishop Place (duplex) Parcel ID 08-36-254-022 & 08-36-254-022 432 N 300 West Parcel ID 08-36-254-009 ZONING DISTRICT: SR-3 Special Development Pattern Residential District, and H Historic Preservation Overlay District (Capitol Hill Local Historic District) ORDINANCE SECTIONS: Section 21A.34.020 (H Historic Preservation Overlay District) APPELLANT: Property owner Don Armstrong (International Real Estate Solutions (IRES)), represented by Bruce Baird APPEAL: On June 28, 2018, the Historic Landmark Commission reviewed economic hardship applications for nine structures on or near Bishop Place (approximately 432 N. 300 West). The Historic Landmark Commission made a decision that there is an economic hardship with six out of the nine buildings, and found there is not an economic hardship with three out of the nine buildings, therefore denying demolition of the three buildings that are the subject of this appeal. This appeal of decision is specific to the three structures where no economic hardship was found. APPEAL ISSUES: IRES, property owner, is appealing a decision of the Historic Landmark Commission to deny a request for Economic Hardship of three contributing structures on or near Bishop Place (approximately 432 N 300 West). The appeal is based on the following issues: 1. The Historic Landmark Commission’s selection for the Economic Review Panel, Mr. Lewis Francis, was unqualified to serve on the panel. 2. The Historic Landmark Commission’s selection for the Economic Review Panel, Mr. Lewis Francis, was biased. 3. The zoning ordinance process and standards for Economic Hardship are unintelligible and thus have to be construed in favor of IRES. SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 406 WWW.SLCGOV.COM PO BOX 145480 SALT LAKE CITY, UT 84114-5480 TEL 801-535-7757 FAX 801-535-6174 4. There was no evidence before the Historic Landmark Commission that contradicted the evidence submitted by IRES, and thus the Historic Landmark Commission decision to deny the request is not supported by “substantial evidence”. 5. The Historic Landmark Commission misapplied the law and the facts. 6. If the City does not approve demolition of the three subject buildings, the City will have taken the property of IRES for public purposes without any compensation for which the City will have to pay damages. Please see the City Attorney’s brief, Attachment 2 of this document, for a response to the issues identified in this appeal. STANDARDS OF REVIEW: As per the following City Code, the Appeal Hearing Officer’s decision must be based on the record available to the Historic Landmark Commission at the time the original decision was made: 21A.16.030.E. Standard of Review: 2. An appeal from a decision of the historic landmark commission or planning commission shall be based on the record made below. a. No new evidence shall be heard by the appeals hearing officer unless such evidence was improperly excluded from consideration below. b. The appeals hearing officer shall review the decision based upon applicable standards and shall determine its correctness. c. The appeals hearing officer shall uphold the decision unless it is not supported by substantial evidence in the record or it violates a law, statute, or ordinance in effect when the decision was made. Also, whereas this is an appeal of a Historic Landmark Commission decision, no public hearing will be held and no public testimony will be received. (Section 21A.16.030.D.2) BACKGROUND: The attached Staff Memo/Report of the Economic Hardship review panel provides the background on this request as well as a processing timeline (see Attachment 3). HISTORIC LANDMARK COMMISSION’S DECISION: On June 28, 2018, the Historic Landmark Commission made a decision consistent with the findings and conclusions in the Report of the Economic Hardship Review Panel and did not find an Economic Hardship with the three subject properties, therefore denying demolition of the three structures. 21A.34.020.K.3 Procedure for Determination of Economic Hardship: The Historic Landmark Commission shall establish a three person economic review panel. This panel shall be comprised of three real estate and redevelopment experts knowledgeable in real estate economics in general, and more specifically, in the economics of renovation, redevelopment and other aspects of rehabilitation. The panel shall consist of one person selected by the Historic Landmark Commission, one person selected by the applicant, and one person selected by the first two appointees. If the first two appointees cannot agree on a third person within 30 days of the date of the initial public hearing, the third appointee shall be selected by the mayor within five days after the expiration of the 30 day period. a. Review of Evidence: All of the evidence and documentation presented to the Historic Landmark Commission shall be made available to and reviewed by the economic review panel. The economic review panel shall convene a meeting complying with the open meetings act to review the evidence of economic hardship in relation to the standards set forth in subsection K2 of 21A.34.020. The economic review panel may, at its discretion, convene a public hearing to receive testimony by any interested party; provided, that notice for such public hearing shall be in accordance with chapter 21A.10 of this title. b. Report of Economic Review Panel: Within forty five (45) days after the economic review panel is established, the panel shall complete an evaluation of economic hardship, applying the standards set forth in subsection K2 of this section and shall forward a written report with its findings of fact and conclusions to the historic landmark commission. c. Historic Landmark Commission Determination of Economic Hardship: At the next regular historic landmark commission meeting following receipt of the report of the economic review panel, the historic landmark commission shall reconvene its public hearing to take final action on the application. (1) Finding of Economic Hardship: If after reviewing all of the evidence, the Historic Landmark Commission finds that the application of the standards set forth in subsection K2 of this section results in economic hardship, then the historic landmark commission shall issue a certificate of appropriateness for demolition. (2) Denial of Economic Hardship: If the commission finds that the application of the standards set forth in subsection K2 of section 21A.34.020 does not result in an economic hardship, then the Certificate of Appropriateness for demolition shall be denied. (3) Consistency with the Economic Review Panel Report: The Historic Landmark Commission’s decision must be consistent with the findings and conclusions presented in the Report of the Economic Hardship Panel, unless the commission finds, by a ¾ vote of a quorum, that the Economic Review Panel either acted arbitrarily or based its report on an erroneous finding of fact. NEXT STEPS: If the Appeals Hearing Officer upholds the Historic Landmark Commission decision, the Commission’s decision will stand that there is not an economic hardship with the three subject properties and therefore a Certificate of Appropriate for demolition will not be issued. If the Appeals Hearing Officer reverses the Historic Landmark Commission decision and finds there is an economic hardship with the three subject properties, the requirements listed in 21A.34.020.O and 21A.34.020.P of the Salt Lake City zoning ordinance must be met prior to the issuance of a Certificate of Appropriateness for demolition. A decision to uphold or reverse the Commission’s decision may be appealed to 3rd District Court. An appeal to District Court must be filed within 30 days of the Appeal Hearing Officer’s decision. ATTACHMENTS: 1. Appeal Application 2. Salt Lake City Attorney Response 3. Report of the Economic Hardship Review Panel 4. Historic Landmark Commission meeting minutes – June 28, 2018 5. Record of Decision Letter 6. Standards for Determination of Economic Hardship ATTACHMENT 1: APPEAL APPLICATION BRUCE R. BAIRD PLLC ATTORNEY AND COUNSELOR 2150 SOUTH 1300 EAST, FIFTH FLOOR SALT LAKE CITY, UTAH 84106 TELEPHONE (801) 328-1400 [email protected] July 2, 2018 VIA HAND DELIVERY Hon. Jackie Biskupski, Mayor Salt Lake City c/o Ms. Amy Thompson, Principal Planner Salt Lake City Planning Department Re: Bishop Place Appeal of HLC Approval of Portions of Economic Hardship Panel Report PLNHLC2017-00020 – 248 W Bishop Place PLNHLC2017-00029 – 265/67 W Bishop Place PLNHLC2017-00030 – 432 N 300 West Dear Mayor Biskupski: I am counsel for International Real Estate Solutions, Inc., (“IRES”) the owner of the various properties commonly referred to as “Bishop’s Place”. Please consider this letter to be a supplementation of the “Appeal of a Decision” form provided to me by the City’s Planning Director, Mr. Nick Norris. This letter deals only with the properties listed above. (One of the properties is a duplex which tends to cause some confusion; I will refer to the properties collectively as “the 3 buildings”.) On Thursday night, June 28, 2018, in an exercise of confusion that would have been humorous if it were not so expensive to IRES, the Historic Landmark Commission sustained the recommendation of an Economic Hardship Review Panel denying IRES the right to demolish the 3 buildings. First, let me provide some brief history which is taken largely from a report dated June 14, 2018 by the City’s Planning Division to the HLC and from the “Report of the Bishop Place Economic Hardship Review Panel” dated June 8, 2018.