17.97.060 Review and monitoring of properties for special property tax valuation.
Special valuation for historic properties makes available to property owners a special tax valuation for rehabilitation of historic properties under which the assessed value of an eligible historic property is determined at a rate that excludes, for up to 10 years, the actual cost of the rehabilitation (Chapter 84.26 RCW).
A. Eligible Properties for Special Property Tax Valuation. Class of properties eligible to apply for special valuation in Gig Harbor means all properties listed in the National Register of Historic Places including but not limited to properties certified as contributing to a National Register Historic District which have been substantially rehabilitated at a cost and within a time period which meet the requirements set forth in Chapter 84.26 RCW and all properties listed on the local register of historic places including but not limited to properties certified as contributing to a local register historic district which have been substantially rehabilitated at a cost and within a time period which meet the requirements set forth in Chapter 84.26 RCW.
B. Application for Special Property Tax Valuation. Application for special valuation is made at the Pierce County assessor’s office. The assessor then forwards applications to the city for review and a decision by the historic preservation commission (HPC).
C. Contents of a Complete Application. A complete application for special valuation shall consist of the following documentation:
1. All information required by the Pierce County assessor’s office for a complete application;
2. A legal description of the historic property;
3. Comprehensive exterior and interior photographs of the historic property before and after rehabilitation;
4. Architectural plans or other legible drawings depicting the completed rehabilitation work; and
5. A notarized affidavit attesting to the actual cost of the rehabilitation work completed prior to the date of application and the period of time during which the work was performed and documentation of both to be made available to the HPC upon request.
D. Time Frame for Processing Applications for Special Property Tax Valuation.
1. Applications for special property tax valuation forwarded to the city by the Pierce County assessor shall be reviewed by the HPC before December 31st of the calendar year in which the application is made, provided the application is submitted in time to be reviewed by the HPC before the end of the calendar year.
2. HPC decisions regarding the applications shall be filed with the assessor within 10 calendar days of issuance.
E. Application Review Procedures. Applications for special property tax valuation shall be processed as follows:
1. The assessor forwards the application to the city planning division, which determines if the application is complete.
2. The HPC reviews the application(s) and determines if the properties meet the criteria set forth in subsection (C)(1) of this section.
a. If the HPC finds the properties meet the criteria for approval, then, on behalf of the city, it enters into an historic preservation special valuation agreement, set forth in subsection G of this section, with the owner. Upon execution of the agreement between the owner and HPC, the HPC approves the application(s).
b. If the HPC determines the properties do not meet all the criteria, then it shall deny the application(s).
3. The HPC provides its decisions in writing and states the facts upon which the approvals or denials are based. The planning division then files copies of the decision with the Pierce County assessor.
4. For approved applications, the planning division:
a. Forwards copies of the agreements, applications and supporting documentation (as required by WAC 254-20-090(4) and identified in subsection C of this section) to the Pierce County assessor.
b. Notifies the State Review Board that the properties have been approved for special valuation.
5. For approved applications, the HPC:
a. Monitors the properties for continued compliance with the terms of the special valuation agreement with the property owner.
b. Determines whether or not properties are disqualified from special valuation either because of:
i. The owner’s failure to comply with the terms of the agreement; or
ii. A loss of historic value resulting from physical changes to the building or site.
6. For disqualified properties, in the event that the HPC concludes that a property is no longer qualified for special valuation, the HPC shall notify the owner, assessor and State Review Board in writing and state the facts supporting its findings.
F. Property Review Criteria. In its review the HPC shall determine if the properties meet all the following criteria:
1. The property is historic property;
2. The property is included within a class of historic property determined eligible for special valuation by the city under GHMC 17.97.040;
3. The property has been rehabilitated at a cost which meets the definition set forth in RCW 84.26.020(2) (and identified in GHMC 17.97.020(I)) within 24 months prior to the date of application;
4. The property has not been altered in any way which adversely affects those elements which qualify it as historically significant as determined by applying the standards for the rehabilitation and maintenance of historic properties listed in GHMC 17.97.050(C)(4);
5. Rehabilitation work done after the property was placed on the national or local register and within the past 24 months received or is eligible to receive a certificate of appropriateness as required in GHMC 17.97.050;
6. Rehabilitation and Maintenance Criteria. The Washington State Advisory Council’s Standards for the Rehabilitation and Maintenance of Historic Properties in WAC 254-20-100 shall be used by the HPC as minimum requirements for determining whether or not an historic property is eligible for special valuation and whether or not the property continues to be eligible for special valuation once it has been so classified.
G. Agreement. The following historic preservation special valuation agreement shall be used by the HPC as the agreement necessary to comply with the requirements of RCW 84.26.050(2):
This Historic Preservation Agreement is entered into on this ___ day of ____, 20__ by and between __________________ (hereinafter referred to as APPLICANT) and the Historic Preservation Commission (HPC) (hereinafter referred to as LOCAL REVIEW BOARD).
WHEREAS APPLICANT is the owner of record of the historic property commonly known as _________________________, located at ________________________, State of Washington, as more fully described in Exhibit A, attached hereto and incorporated herein by this reference (hereinafter referred to as PROPERTY); and
WHEREAS APPLICANT has requested special valuation of the PROPERTY pursuant to chapter 84.26 RCW; and
WHEREAS the LOCAL REVIEW BOARD has determined that the property has been substantially rehabilitated within the two year period preceding the date of application and the actual cost of said rehabilitation equals or exceeds twenty-five percent of the assessed valuation of the PROPERTY prior to the improvements; and
WHEREAS the LOCAL REVIEW BOARD has verified that the PROPERTY is historic property that falls within a class of property determined eligible for special valuation by local ordinance or administrative rule; and
WHEREAS the LOCAL REVIEW BOARD finds that the rehabilitation work has not altered the PROPERTY in any way which adversely affects those elements which qualify it as historically significant;
NOW THEREFORE, in recognition of the foregoing, the APPLICANT enters into this AGREEMENT with the LOCAL REVIEW BOARD and agrees to adhere to the following terms and conditions for the ten-year period of the special valuation classification:
1. APPLICANT agrees to comply with the Washington State Advisory Council’s Standards for the Maintenance and Rehabilitation of Historic Property as set forth in Exhibit B, which is attached hereto and by this reference incorporated herein.
2. APPLICANT agrees the property shall not be altered without the prior written consent of the LOCAL REVIEW BOARD signed by a duly authorized representative thereof. No construction, alteration or remodeling or any other action shall be undertaken or permitted to be undertaken which would affect the historic character of the PROPERTY which classifies it as eligible for special valuation, or which would affect the appearance of the PROPERTY as depicted in the photographs attached hereto and incorporated herein by this reference as Exhibits ____ through ____, or which would adversely affect the structural soundness of the PROPERTY; provided, however, that the reconstruction, repair, repainting, or refinished of presently existing parts or elements of the PROPERTY subject to this Agreement, damage to which has resulted from casualty loss, deterioration or wear and tear, shall be permitted without the prior approval of the LOCAL REVIEW BOARD, provided that such reconstruction, repair, repainting, or refinishing is performed in a manner which will not alter the appearance of those elements of the PROPERTY subject to this AGREEMENT as they are as of this date. Exterior changes which shall require the consent of the LOCAL REVIEW BOARD shall include, but not be limited to, any substantial structural change or any change in design, color or materials.
3. APPLICANT agrees the PROPERTY shall not be demolished without prior written consent of the local review board.
4. APPLICANT agrees to make historic aspects of the PROPERTY accessible to the public one day each year if the PROPERTY is not visible from a public right of way.
5. APPLICANT agrees to monitor the PROPERTY for its continued qualification for special valuation and notify the Pierce County Assessor within 30 days if the PROPERTY becomes disqualified because of
a. a loss of historic integrity,
b. sale or transfer to new ownership exempt from taxation, or
c. sale or transfer to new ownership which does not intend to agree to the terms of this Agreement nor file a notice of compliance form with the Pierce County Assessor.
6. The APPLICANT and LOCAL REVIEW BOARD both agree that there shall be no changes in standards of maintenance, public access, alteration, or report requirements, or any other provision of this Agreement, during the period of the classification without the approval of all parties to this Agreement.
Term of the Agreement. This Agreement shall take effect immediately upon signature and remain in effect until the property is no longer eligible for special valuation either through disqualification under RCW 84.26.080 or upon expiration of the ten-year period of special valuation commencing January 1, 20___, and ending December 31, 20___.
Hold Harmless. The APPLICANT or its successors or assigns shall hold the State and the LOCAL REVIEW BOARD harmless from any and all liability and claims which may be asserted against the State and the LOCAL REVIEW BOARD as result of this Historic Preservation Special Valuation Agreement or the participation by the APPLICANT in the Special Valuation Program.
Governing Law. The terms of this Agreement shall be construed in accordance with the laws of the State of Washington.
H. Enforcement. As the sole remedy for the applicant’s breach of the historic preservation special valuation agreement the historic preservation commission may notify the Pierce County assessor to inform the assessor that the property has become disqualified and removed from the city’s historic inventory.
I. Appeals. Any decision of the HPC acting on an application for special property tax valuation, or any disqualifications of historic properties eligible for special valuation, may be appealed to the county board of equalization. (Ord. 1513 § 3 (Exh. C), 2023; Ord. 1375 § 4, 2017; Ord. 992 § 1, 2005).