§ 62.708. Economic Hardship.

Economic hardship, as discussed in Section 62.707(j) above, shall be determined in accordance with this Section: When a claim of extreme economic hardship is presented, the applicant shall prove he cannot realize a reasonable and beneficial use of or economic return from the property. If the property is residential and non-income producing or is an accessory structure, the owner shall not be required to prove economic hardship. In the case of a partial demolition of a structure where the principal facades remain intact, the owner shall not be required to prove economic hardship. The Historic Preservation Board shall make findings based on each of the following factors provided by the applicant:

(a)

Whether the applicant knew or should have known of the historic landmark designation or HP Overlay district designation at the time of acquisition and whether the structure or HP Overlay district was designated subsequent to acquisition.

(b)

With respect to economic return, the following shall be considered:

1.

Real estate taxes for the previous four (4) years and the assessed value of the land and improvements thereon according to the two (2) most recent assessed valuations.

2.

The amount paid for the property and the date of purchase of the property or other means of acquisition of title, such as a gift or inheritance, and the party from whom purchased or otherwise acquired.

3.

The fair market value of the property immediately prior to its designation as an historic landmark or designation of the HP Overlay district; and the fair market value of the property at the time the application for Certificate of Appropriateness is filed.

4.

Remaining balance on any mortgage or other financing secured by the property and the annual debt service, if any, for the previous two (2) years.

5.

All appraisals obtained within the previous two (2) years by the Property Owner/Applicant in connection with the purchase, financing or ownership of the property.

6.

Any state or federal income tax returns on or relating to the property for the past two (2) years.

7.

Form of ownership or operation of the property, whether sole proprietorship, for-profit or not-for-profit corporation, limited partnership, joint venture, or other.

8.

Annual gross income from the property for the previous two (2) years.

9.

Itemized operating and maintenance expenses for the previous two (2) years, (including proof that adequate and competent management procedures were followed).

10.

Depreciation deduction and annual cash flow, if any, for the previous two (2) years before and after debt service, if any during the same period.

11.

Proof that efforts have been made by the owner to obtain a reasonable return on his investment based on previous service.

12.

Any other information considered necessary by the Historic Preservation Board to a determination as to whether the property does yield or may yield a reasonable return to the owners.

(c)

The marketability or salability of the property, considered in relation to any listing of the property for sale or rent, price asked, and offers received, if any, within the previous two years, including testimony and relevant documents regarding:

1.

Any real estate broker or firm engaged to sell or lease the property.

2.

Reasonableness of the price or rent sought by the applicant.

3.

Any advertisements placed for the sale or rent of the property.

(d)

The feasibility of adaptive or alternative uses for the property that can earn a reasonable economic return for the property as considered in relation to the following:

1.

A report from a licensed engineer or architect with experience in rehabilitation, as to the structural soundness of any structures on the property and their suitability for rehabilitation.

2.

An estimate of the cost of construction, alteration, demolition, or removal, and estimate of any additional cost that would be incurred to comply with the recommendation and decision of the Historic Preservation Board concerning the appropriateness of proposed alterations.

3.

The estimated market value of the property in the current condition, after completion of the demolition, after completion of the proposed construction, and after renovation of the existing property for continued use.

4.

The testimony of an architect, developer, real estate consultant, appraiser, or other real estate professional experienced in rehabilitation as to the economic feasibility of rehabilitation or use of existing structures on the property.

5.

Proof of the financial ability to complete the replacement project.

6.

The current fair market value of the property, as determined by at least two independent appraisers certified by the State of Florida.

(e)

Any other information the applicant or the Historic Preservation Board feels is relevant to demonstrate extreme economic hardship or the lack thereof.

The applicant shall submit all necessary materials to the Historic Preservation Officer, as provided for in Section 64.471 of the Code, in order that staff may review and comment and consult on the case. Historic Preservation staff comments and any other comments shall be forwarded to the Historic Preservation Board for consideration and review and made available to the applicant for consideration prior to the hearing.

The Historic Preservation Board may require that an applicant furnish such additional information that is relevant to its determination of extreme economic hardship and may require that such additional information be furnished under oath. Staff may also furnish additional information as the Historic Preservation Board or staff believes is relevant and it shall be made available to the applicant and the Board for consideration prior to the hearing.

(Ord. of 9-16-1991, Doc. #25099; Ord. of 2-22-1993, Doc. #26392)