4.508 Designation as historic and cultural landmark ("HC")

  1. An individual structure or site may be designated as an historic and cultural landmark if it meets three or more of the criteria set out in Section 4.502D. An area which includes two or more structures or sites which satisfy three or more of such criteria may be designated as an historic and cultural landmarks district.
  2.  Eligibility for tax incentives.
    1. Property designated as historic and cultural landmark or considered to contribute to a historic and cultural landmark district shall be eligible for tax incentives under the provisions of this section.
    2. In order for property designated historic and cultural landmark or considered to contribute to a historic and cultural landmark district to be eligible for tax incentives, all work shall be performed in accordance with the provisions of this chapter and applicable city codes and ordinances.  The Historic and Cultural Landmarks Commission and the city council shall review and approve applications for the tax incentive at the commencement of the project and upon satisfactory completion of the project.
    3. Property designated as historic and cultural landmark or considered to contribute to a historic and cultural landmark district shall be eligible for rehabilitation incentives once every 20 years.
  3. Tax incentive for rehabilitation of a historic and cultural landmark.
    1. Description of Incentive. Any structure which is designated historic and cultural landmark or which is considered to contribute to an historic and cultural landmarks district and which is substantially rehabilitated in accordance with this chapter, and the land necessary for access to and use of the structure, shall be eligible for the following tax benefits (“Rehabilitation Incentives”) for a period of years as hereinafter set forth:
      1. A structure and land as described above shall have an assessed value for city tax valuation purposes equal to the assessed value of such structure and land for the tax year immediately prior to commencement of the rehabilitation. The term of the incentives is ten years commencing on the first day of the tax year following verification by the city council of completion of the rehabilitation pursuant to this section. Any increase in the value of the structure and the land necessary for access to and use of the structure in excess of the assessed value for the tax year immediately prior to commencement of the rehabilitation shall be exempt from city ad valorem taxes for such ten-year period. In the event that the structure or the land is assessed during such ten-year period at a lower value than the assessed value for the tax year immediately prior to commencement of the rehabilitation, the lower value will apply.
      2. "Substantial rehabilitation" shall consist of rehabilitation at a cost which equals or exceeds the greatest of 30 percent of the assessed value of the structure prior to rehabilitation or three thousand dollars ($3,000.00).
      3. Execution of commitment to repay. Upon satisfactory completion of the rehabilitation project, the owner shall record with the deed a document provided by the historic preservation officer as a notice of the historic site tax exemption and commitment to repay taxes in the event of default. The purpose of this document shall be to provide information on the terms of the tax incentive and penalties for negligently or willfully destroying a property during the period of exemption. The commitment shall be filed in the official property records of the county where the property is located, shall run with the land and shall bind the owner and any heirs and assigns. Any unpaid amount shall constitute a lien against the property. Failure to record such a document may result in the delay of receipt of incentives.
      4. Nothing in this article relieves the owner from the responsibility to submit an application for the exemption each year to the appraisal district for the county in which the property is located pursuant to the terms of the Texas Tax Code. The historic preservation officer shall assist the owner in filing for such exemption, at the request of the owner.
  4. Application submitted after the commencement of work for which a certificate of appropriateness is not required.
    1. The provisions of this paragraph shall apply only to work that meets the following conditions:
      1. the work is completed on a structure that is designated as a historic and cultural landmark or that is considered to contribute to a historic and cultural landmark district, including the land necessary for access to and use of said structure;
      2.  The work does not require a certificate of appropriateness; and
      3. An application for tax exemption is filed within five (5) years after the completion of the work.
    2. Such work shall be eligible for tax exemption following verification by the city council of the work performed, provided that the structure has been substantially rehabilitated in accordance with this chapter. The terms and requirements for the incentive shall be as described in this section.  The owner shall not be eligible for the tax incentive or be reimbursed for ad valorem taxes paid by the owner on the structure or land for any years prior to the submission of an application for a tax incentive and verification by the city council of the work performed.
    3. Execution of commitment to repay. Upon satisfactory completion of the rehabilitation project, the owner shall record with the deed a document provided by the historic preservation officer as a notice of the historic site tax exemption and commitment to repay taxes in the event of default. The purpose of this document shall be to provide information on the terms of the tax incentive and penalties for negligently or willfully destroying a property during the period of exemption. The commitment shall be filed in the official property records of the county where the property is located, shall run with the land and shall bind the owner and any heirs and assigns. Any unpaid amount shall constitute a lien against the property. Failure to record such a document may result in the delay of receipt of incentives.
    4. Nothing in this article relieves the owner from the responsibility to submit an application for the exemption each year to the appraisal district for the county in which the property is located pursuant to the terms of the Texas Tax Code. The historic preservation officer shall assist the owner in filing for such exemption, at the request of the owner.
  5. Application for incentives. Application for a city ad valorem tax exemption shall be filed with the historic preservation officer. The application may be processed concurrently with the application for any certificate of appropriateness which may be required under section 4.504. The application shall be signed and sworn to by the owner of the property and shall:
    1. State the legal description and the address of the property;
    2. Provide proof of title in the application to the property proposed for certification;
    3. Provide proof that taxes or other assessments are not delinquent on the property;
    4. Include a complete set of plans and/or documentation for the stabilization or rehabilitation, and verify compliance with established guidelines and city codes;
    5. Include a scope of work which includes a list of eligible costs;
    6. For rehabilitation projects, include a statement of costs reflecting that the costs equal or exceed the greater of 30 percent of the assessed value of the structure or three thousand dollars ($3000.00);
    7. Include a projection of the estimated construction time and predicted completion date;
    8. Authorize members of the Historic and Cultural Landmarks Commission and officers of the city to visit and inspect the property;
    9. Provide any additional information to the Historic and Cultural Landmarks Commission which is necessary in determining eligibility or which the owner deems relevant or useful;
    10. Contain a written agreement to maintain the site or structure in accordance with the Secretary of the Interior's Standards for Rehabilitation, applicable codes of the City of Fort Worth and design guidelines for the duration of the exemption; and
    11. Contain sufficient documentation supporting the information submitted therein.
  6. Consideration of application for tax incentives.
    1. Review by Historic and Cultural Landmarks Commission. Upon receipt of the application, the Historic and Cultural Landmarks Commission shall make an investigation of the property and shall certify facts relating to the project to the historic preservation officer during the next regular hearing, together with the Historic and Cultural Landmarks Commission's documentation and recommendation for approval or disapproval of the application for exemption.
    2. Review by City Council. Upon receipt of the application for city ad valorem tax exemption and the recommendation of the Historic and Cultural Landmarks Commission, the historic preservation officer shall forward the application to the city council no less than once per fiscal quarter. The city council shall approve the application, subject to compliance with all certificates of appropriateness requirements and verification of satisfactory completion of the project, provided that the owner is eligible for such incentive and has submitted all required information. Notice of approval or disapproval shall be provided to the applicant in writing.
  7. Expiration of application for tax incentives.
    1. An application for tax incentives shall expire after a period of 24 months from the date of review by the city council with a finding by the historic preservation officer that:
      1.  Work on the project has not commenced or has ceased substantial advancement;
      2. The applicant has failed to obtain the necessary permits for work
      3. Such permits for work have expired; or
      4. The project has been subject to outstanding citations for violations of applicable city codes or regulations.
    2. Where an applicant may provide evidence to contradict the findings for expiration, the historic preservation officer may recommend approval of the verification to the Historic and Cultural Landmarks Commission under the original application.
    3. Where an applicant is unable to provided such evidence a new application may be filed for tax incentives under the provisions of chapter and may be considered, where all requirements of section 4.508D have been met, for verification.
  8. Verification of completion of project.
    1. Submission of statement by applicant. Upon completion of a stabilization or rehabilitation project the applicant shall submit the following documents to the historic preservation officer:
      1. Sworn statement of completion of the project;
      2. Copies of all receipts for cost of project;
      3. Documentation that all required inspections of the project have been performed by the development department;
      4. In the case of stabilization projects, proof that costs are eligible;
      5. In the case of rehabilitation projects, proof that the cost of the rehabilitation equals or exceeds the greatest of 30 percent of the assessed value of the structure prior to rehabilitation or three thousand dollars ($3,000.00). Such costs may be determined according to the value of the permits issued by the development department and/or proof of actual expenditures; and
      6. Proof that a certificate of occupancy has been issued, if applicable.
    2. Verification by Historic and Cultural Landmarks Commission. The Historic and Cultural Landmarks Commission, upon receipt of the sworn statement of completion, shall make an investigation of the property and shall verify whether the stabilization or rehabilitation project has been completed at the next regular hearing. If verification of completion is unfavorable, the applicant shall be required to complete the project in order to secure the city ad valorem tax exemption provided herein. If the verification of completion is favorable, the Historic and Cultural Landmarks Commission shall submit the application for tax incentive to the city council for approval. A project shall be considered completed when all of the following requirements have been met:
      1. The applicant has submitted all information required under paragraph 1 above;
      2. Rehabilitation costs equal or exceed the required amount;
      3. The project has passed all required final inspections and has obtained a certificate of occupancy, if required; and
      4. All work has been performed in accordance with the certificate of appropriateness and the applicable guidelines and codes.
    3. Verification by City Council and notification of taxing authorities. No less than once per fiscal quarter, the City Council shall review and verify completion of projects for tax incentives. After verification of satisfactory completion of the stabilization or rehabilitation project, the city council shall declare the property to be entitled to the city ad valorem tax relief provided herein. Approval by the City Council of a project for rehabilitation of a structure designated historic and cultural landmark or considered to contribute to an historic and cultural landmarks district shall constitute a finding that the structure is a historically significant site in need of tax relief in accordance with section 11.24 of the Texas Tax Code.
      1. The historic preservation officer shall give written notice of approval of the tax incentive to the chief appraiser of the appraisal district for the county in which the property is located and the tax assessor-collector of the City of Fort Worth.
      2. Thereafter, the owner shall be entitled to the applicable tax incentive commencing on January 1 of the tax year immediately following approval by the city council.
      3. Nothing in this article relieves the owner from the responsibility to apply to the appraisal district for the county in which the property is located each year for the exemption pursuant to the terms of the Texas Tax Code. The historic preservation officer shall assist the owner in filing for such exemption, at the request of the owner.
    4. Execution of commitment to repay. Upon satisfactory completion of the rehabilitation project, the owner shall record with the deed a document provided by the historic preservation officer as a notice of the historic site tax exemption and commitment to repay taxes in the event of default. The purpose of this document shall be to provide information on the terms of the tax incentive and penalties for negligently or willfully destroying a property during the period of exemption. The commitment shall be filed in the official property records of the county where the property is located, shall run with the land and shall bind the owner and any heirs and assigns. Any unpaid amount shall constitute a lien against the property. Failure to record such a document may result in the delay of receipt of incentives.
  9. Alteration or destruction of structure or site.
    1. Willful or negligent alteration or destruction. In order to maintain eligibility for a tax exemption in accordance with this article, the owner and any representative shall not alter or totally or partially destroy the historically significant structure or site by willful act or negligence during the period of the exemption. In the event that the historically significant structure or site is altered or totally or partially destroyed by the willful act or negligence of the owner or a representative, the owner shall notify the historic preservation officer and the chief appraiser of the appraisal district for the county in which the property is located that he is no longer entitled to the exemption. In addition, if the Historic and Cultural Landmarks Commission has reason to believe that a structure or site benefiting from a tax exemption has been altered or totally or partially destroyed by the willful act or negligence of its owner or a representative during the period of the exemption, the Historic and Cultural Landmarks Commission shall request that the city manager immediately cause the matter to be scheduled for the earliest possible consideration by the City Council. If, after giving notice of a hearing to the owner, the city council determines that the structure or site has been totally or partially destroyed or altered by the willful act or negligence of the owner or a representative, the owner shall take corrective measures, if feasible, within the time specified by the City Council. If the owner fails to take such corrective measures or if corrective measures are not feasible, the owner shall immediately repay to the city all of the city tax revenues that were not paid because of the exemption plus interest calculated at an annual rate of ten percent, in accordance with the terms of the commitment to repay. The city's remedies pursuant to the commitment to repay shall be in addition to all rights and remedies pursuant to the Texas Tax Code.
    2. Alteration or destruction other than by willful act or negligence. Where a structure or site benefiting from a tax exemption described herein is totally or partially destroyed or altered by other than the willful act or negligence of the owner or a representative, the owner shall, within 30 days, apply for a certificate of appropriateness to authorize reconstruction of the structure or site in accordance with applicable construction codes of the City of Fort Worth and design guidelines. In the event that repair is not feasible, the owner shall, within 30 days, apply for a certificate of appropriateness to authorize demolition or relocation. For good cause shown by the property owner, the Historic and Cultural Landmarks Commission may extend the time for filing the application. The determination of whether repair is feasible or demolition should be allowed shall be made by the Historic and Cultural Landmarks Commission in accordance with the certificate of appropriateness criteria and procedures set forth in section 4.504. In cases where a certificate of appropriateness is issued for demolition or relocation because repair is not feasible, repayment of the tax revenues and interest is not required. 
    3. Public safety hazard. The provisions shall not limit the authority of the building official or the superintendent of the code compliance division to take action concerning structures or property which constitutes a public safety hazard.
  10. Monitoring system. The status of structures or sites benefiting from the tax exemptions described herein shall be monitored by the historic preservation officer during the period of the exemption to ensure continued compliance with applicable design guidelines for such structure. The historic preservation officer shall notify the owner of violations in writing and shall specify a deadline for correction of such violations. If satisfactory corrective measures are not undertaken within the time specified by the historic preservation officer, the Historic and Cultural Landmarks Commission shall initiate procedures to terminate the city tax exemption and require payment of the city taxes, plus interest calculated at the rate of ten percent per year, pursuant to the terms of the commitment to repay.
  11. Transferability of tax benefits. The benefits of this city ad valorem tax incentive program relating to structures designated highly significant endangered and historic and cultural landmark and structures considered to contribute to an historic and cultural landmarks district are transferable and run with the property.
  12. Removal of historic and cultural landmark designation.
    1. The historic and cultural landmark designation, whether relating to individual properties or to an historic and cultural landmarks district, may be removed for the following reasons:
      1. It is determined that the site, structure or area, as applicable, is no longer historically, culturally, architecturally or archaeologically significant under the criteria listed in section 4.502D; or
      2.  It is determined that such designation creates an unreasonable economic hardship upon the owner or owners in accordance with the provisions of section 4.506.
    2. The historic and cultural landmarks district designation may be removed only from a district as a whole. The designation shall not be removed from individual sites or structures located within a district.
    3. The historic preservation officer shall remove the historic and cultural landmark designation from the official zoning maps of the city and shall file a notice that the designation has been removed in the official property records of the county in which such property is located within ten days after approval by the city council of removal of the designation.