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02-01-10 PCITEM 3_1 NORTHWEST ASSOCIATED CONSULTANTS, INC. 4800 Olson Memorial Highway, Suite 202, Golden Valley, MN 55422 Telephone: 763.231.2555 Facsimile: 763.231.2561 planners@nacplanning.com PLANNING REPORT TO: Otsego Mayor and City Council Planning Commission FROM: Daniel Licht, AICP RE: Otsego — Zoning Ordinance; Heritage Preservation REPORT DATE: 28 January 2010 NAC FILE: 176.08 BACKGROUND The City Council has initiated a review of the Heritage Preservation Commission to consider its future role and responsibilities. This review may result in changes to the advisory committee or possibly elimination of the Heritage Preservation Commission as a formal advisory body to the City Council. A public hearing has been scheduled for 1 February 2010 Planning Commission meeting to address the issue as an initial step in the review process. The public hearing is conducted by the Planning Commission as the Heritage Preservation Commission is established by the Zoning Ordinance and the Planning Commission has responsibility for making recommendations on all possible amendments to the Zoning Ordinance. Exhibits: A. Zoning Ordinance Section 96 ANALYSIS Statutory Basis. The Heritage Preservation Commission is established under the authority granted by Minnesota Statutes 471.193 which allows cities to engage in a comprehensive program to promote historic preservation of historic properties and places. A report is to be submitted to the State Historic Preservation Office (SHPO) each year documenting the activities of the Heritage Preservation Commission. Otsego is the only city in Wright County with a certified Heritage Preservation Commission according to SHPO. Elk River has a certified Heritage Preservation Commission, whereas Rogers and Dayton do not. There is a Wright County Historical Society serving a quasi -public role in historic preservation in the area. The main difference between the Wright County organization and the City's Heritage Preservation Commission is that the City's ordinance allows it to designate and then regulate preservation of significant sites and places at the local level. Zoning Ordinance. The Heritage Preservation Commission is established as by Section 20-96-3 of the Zoning Ordinance and currently has five members. The balance of Section 96 establishes the responsibilities for the Heritage Preservation Commission, the process for designating local heritage sites and administration of designated heritage sites. As outlined in Section 20-96-4.13 of the Zoning Ordinance, the Heritage Preservation Commission's duties are: To conduct a continuing survey of all areas, places, buildings, structures or similar objects in the City of Otsego which the commission, on the basis of information available or presented to it, has reason to believe are or will be eligible for designation as heritage preservation sites. 2. To work for the continuing education of the citizens of Otsego with respect to the historic and architectural heritage of the City. It shall keep current and public a register of designated heritage preservation sites and areas. 3. To accept the services on a permanent or part-time basis of technical experts and such other persons as may be required to perform its duties. 4. To solicit gifts and contributions to be made to the City and to assist in the preparation of applications for grant funds to be made to the City for the purpose of heritage preservation. 5. The Heritage Preservation Commission shall make no application to the National Register or to the Minnesota Historical Society for the designation of a historic site or district without the consent of the City Council. Meetings. The Heritage Preservation Commission is scheduled to meet on the fourth Thursday of every month. No minutes of the meetings have been provided to the City Clerk although attendance records have been reported. The need to hold meetings to undertake its duties or consistent attendance by a majority of the members needed to conduct commission business has been an on-going issue as shown below. If the Heritage Preservation Commission is to continue, changes to its established meeting schedule may be considered. The City of Elk River Heritage Preservation Commission bylaws require the committee to meet at least four times per year at a time and place determined by the members. Year Number of Members Number of Months with Meeting with Majority Number of Months with Meeting with Less than Majority Number of Months with No Meeting 2004 8 5 -- 7 2005 7 3 2 7 2006 6 3 3 4 2007 5 3 6 3 2008 5 6 1 5 2009 5 3 4 5 Potential Sites. In 2002, the Heritage Preservation Commission prepared a list of sites within the City that may have potential historical significance. These sites are as follows: ■ McDonald/Peavey House. (13620 95th Street NE) ■ Otsego Cemetery ■ Schumacher house (7364 McAllister Avenue NE) ■ District #112 School (11800 80th Street NE) ■ LeFebvre round barn (8585 Parrish Avenue NE) ■ Bouley house (6662 River Road) ■ Lahn farm (17672 County Road 36) ■ Becker farm (13580 70th Street NE) ■ Spencer/Talbot House (Nausha Avenue/96th Street) ■ Ingersoll house (12000 95th Street NE) ■ Smith house (8841 Mason Avenue NE) ■ Spencer/Mosman house (11088 95th Street NE) ■ Elk River Box Factory (10273 Parrish Avenue NE) The purpose of identifying these properties initially would be to organize the efforts of the Heritage Preservation Commission to further study and document these sites. The list also allows City staff to consider possible historic preservation issues as development proposals are brought forward and to include the Heritage Preservation 9 Commission in the review process if any of these properties are involved in proposed developments. Activities. The Heritage Preservation Commission has engaged in the following activities since being established in June 1994: ■ Books. Members of the Heritage Preservation Commission have written or contributed to the publication of nine books on the history of Otsego or people connected to Otsego. Historical Context Study. In 1998, the City received a grant from the State that partially funded a study to define historical context for Otsego. The document defines broad themes of Otsego's history rather than evaluation of specific sites. This document is intended to be used by the Heritage Preservation Commission in the identification, evaluation and recommendation of specific buildings, sites, features or areas of the City for preservation. Otsego Cemetery. The Otsego Cemetery was designated as a Heritage Preservation Site on 12 November 2002. In designating the site, it was intended that Heritage Preservation Commission work with the Otsego Cemetery Association to develop a program for preserving the Cemetery. Activities that were suggested to be included under such a program may include documentation of persons interned, measures to protect or restore grave markers, site improvements, distribution of information about the cemetery, possible pursuit of listing on the State or National Register of Historic Places, and events such as Memorial Day celebrations, etc. Implementation of the preservation program may include identifying funding sources such as grants, fundraisers, and contributions. Efforts by the Heritage Preservation Commission towards implementation of a preservation program have not been reported. Town Plat Site. The Heritage Preservation Commission initiated a preliminary study of the Town Plat site including the original City Hall / Public Works Building extending east to the McDonald/Peavy House. The purpose of the study was to establish a basis for designating these properties as Heritage Preservation Sites. The preliminary work of the Heritage Preservation Commission was used for further efforts specific to the McDonald/Peavy house. McDonald/Peavey house. The City commissioned a study in 2004 regarding the potential significance of the McDonald/Peavey house. Based on this study, the McDonald/Peavey house was designated as a Heritage Preservation Site on 12 October 2004. In 2008, the City commissioned an architectural study of the McDonald/Peavey house to evaluate potential restoration options. The study recommended a preservation plan involving relocation of the building adjacent to the old City Hall building as an element of a Heritage Park (although a location at Prairie Park was also suggested) and restoration of the structure to its appearance and condition during the life of Mr. John McDonald. Detailed cost estimates for the preservation plan have not been prepared. The Heritage Preservation Commission conducted a survey in 2009 regarding community Iv interest in preserving the McDonald/Peavey house. There were approximately 4,900 surveys sent in the Otsego View and only 37 returned. RECOMMENDATION The role of the Heritage Preservation Commission in the capacity of an advisory committee to the City Council is to be decided by the City Council. The Planning Commission has an interest in the role of the Heritage Preservation Commission as it relates to community identity and land use goals and therefore have a place in making a recommendation to the City Council on this issue. Factors to be considered in reviewing the role of the Historic Preservation Commission include the level of participation and interest on the part it's members, availability of resources required for the Historic Preservation Commission to be effective in its intended role or to carry out specific projects that they are recommending and overall community interest in preservation of the potential sites that have been identified. The Historic Preservation Commission has not been as effective in recent years at carrying out its duties to document and study potentially significant sites in Otsego. There has been inconsistent attendance by appointed members at meetings to allow for business to be conducted. Also, the focus on preservation of the McDonald/Peavey house has not provided sufficient information to convince the City Council to pursue a restoration effort. There also has not been significant community interest generated in the project. City staff has outlined the following actions that could be taken regarding the status of the Heritage Preservation Commission. POSSIBLE ACTIONS A. Motion to recommend the following action(s) regarding the Zoning Ordinance and/or Heritage Preservation Commission: Make no changes to the Zoning Ordinance and/or Heritage Preservation Commission; or, 2. Establish a year-to-year work program for the Heritage Preservation related to the duties outlined by the Zoning Ordinance with regular progress reports to the City Council of its activities; and/or, 3. Amend the Heritage Preservation Commission schedule to meet less often to encourage regular attendance by members and allow business to be conducted; or, 4. Repeal Section 96 of the Zoning Ordinance effectively eliminating the Heritage Preservation Commission: a. Historic preservation efforts would subsequently occur outside of the City's regulatory control through Wright County Historical Society, SHPO and the State or National Registers of Historic Places. b. The current Historic Preservation Commission members could continue their work as a group not directly affiliated with the City. C. The City could provide support to the Wright County Historical Society to aid in the identification and preservation of potentially significant sites in Otsego. B. Motion to make no recommendation regarding the Heritage Preservation Commission. C. Motion to table. C. Mike Robertson, City Administrator Tami Loff, City Clerk Andy MacArthur, City Attorney Ron Black, Heritage Preservation Commission 0 SECTION 96 8 HERITAGE PRESERVATION SITES Section: 20-96-1: Policy and Purpose 20-96-2: Authority 20-96-3: Establishment of Heritage Preservation Committee 20-96-4: Powers and Duties of the Heritage Preservation Commission 20-96-5: Designation of Historic Sites 20-96-6: Review of Permits 20-96-7: Emergency Repair 20-96-8: Repository for Documents 20-96-9: Recording of Heritage Preservation Sites 20-96-1: POLICY AND PURPOSE: The Otsego City Council finds that the historical, archaeological, engineering and cultural heritage of the City of Otsego is among its most important assets and that preservation, protection, perpetuation and use of areas, places, buildings, structures, and other objects that have historic, aesthetic or community interest or value, benefits the health, prosperity, education and welfare of the community. The purposes of this chapter are to: A. Safeguard the heritage of the City by preserving sites and structures which reflect elements of the City's cultural, social, economic, political, visual or architectural history; B. Promote the preservation and continued use of historic sites and structures for the education and general welfare of the people of the City; C. Foster civic pride in the beauty and notable accomplishments of the past; D. Stabilize and improve City property values. 20-96-2: AUTHORITY: This chapter is enacted pursuant to the authority granted by the provisions of Minnesota Statute 471.193. 20-96-3: ESTABLISHMENT OF HERITAGE PRESERVATION COMMISSION: The City Council shall appoint an advisory commission to be known as the Otsego Heritage Preservation Commission. Membership qualification, terms and bylaws of such Commission shall be established by City Council resolution. Commission members must be persons with demonstrated interest and expertise in historic preservation and must reside within the City of Otsego. The Heritage Preservation Commission shall include, if available, a member of the Wright County Historical Society. 96-1 20-96-4: POWERS AND DUTIES OF THE HERITAGE PRESERVATION COMMISSION: A. The Heritage Preservation Commission may recommend to the Council after review and recommendation by the City Planning Commission, that certain property eligible for designation as a Heritage Preservation site be acquired by gift, negotiation or by eminent domain as provided for in Chapter 117 of Minnesota Statutes. B. The Heritage Preservation Commission, upon approval by the City Council, shall have the following powers and duties: 1. To conduct a continuing survey of all areas, places, buildings, structures or similar objects in the City of Otsego which the commission, on the basis of information available or presented to it, has reason to believe are or will be eligible for designation as heritage preservation sites. 2. To work for the continuing education of the citizens of Otsego with respect to the historic and architectural heritage of the City. It shall keep current and public a register of designated heritage preservation sites and areas. 3. To accept the services on a permanent or part-time basis of technical experts and such other persons as may be required to perform its duties. 4. To solicit gifts and contributions to be made to the City and to assist in the preparation of applications for grant funds to be made to the City for the purpose of heritage preservation. 5. The Heritage Preservation Commission shall make no application to the National Register or to the Minnesota Historical Society for the designation of a historic site or district without the consent of the City Council. 20-96-5: DESIGNATION OF HISTORIC SITES: A. Site Application: Heritage preservation sites shall be applied to and superimposed upon all zoning districts contained herein as existing or amended by the zoning ordinance text and official zoning map. The regulations and requirements imposed by a heritage preservation site designation shall be in addition to those established for the base zoning districts which jointly apply. Under the joint application of standards, the most restrictive requirements shall apply. B. Reports: The City Council may direct the City staff to prepare studies which catalog buildings, land, areas, districts, or other objects to be considered for designation as a Heritage Preservation Site. The Zoning Administrator shall instruct the appropriate staff persons to prepare technical reports where applicable, and provide general assistance in preparing a recommendation on the action to the City Council. 96-2 C. Criteria: The Heritage Preservation Commission shall recommend to the Planning Commission that an area, building district, or object be designated a Heritage Preservation Site upon determining that such site meets one or more of the following criteria: 1. It has character, interest or value as part of the development heritage or cultural characteristics of the City of Otsego, State of Minnesota or the United States; 2. Its location as the site of a significant historic event; 3. It has yielded, or is likely to yield, information important in pre -history or history; 4. It is associated with a person or persons who significantly contributed to the culture and development of the City; 5. It embodies distinctive characteristics of an architectural style, period, form or treatment; 6. It represents the work of an architect or master builder whose individual work has influenced the development of the City of Otsego; 7. It embodies elements of architectural design, detail, materials, or craftsmanship which represent a significant architectural innovation; or 8. Its unique location or singular physical characteristics represents an established and familiar visual feature of a neighborhood, community, or the City of Otsego. D. Communications with Minnesota Historical Society: A copy of the Heritage Preservation Commission's proposed designation of a Heritage Preservation Site, including boundaries, and a program for the preservation of a Heritage Preservation Site shall be sent to the Minnesota Historical Society in accordance with Minnesota Statutes 471.193, Subd. 6. E. Findings and Recommendations: The Heritage Preservation Commission shall make findings as to whether a proposed Heritage Preservation Site is eligible for heritage preservation as determined by the criteria specified in Paragraph C of this subsection. If the Heritage Preservation Commission determines the site meets the criteria in Paragraph C, it shall forward its findings to the Planning Commission with its recommendation that the site be designated for Heritage Preservation and its proposed program for the preservation of the site. F. Planning Commission Recommendation: The Heritage Preservation Commission shall advise the Planning Commission of the proposed designation 96-3 of a Heritage Preservation Site, including boundaries, and a program for the preservation of a Heritage Preservation Site. The Planning Commission shall recommend approval, rejection or modification of the proposed designation to the City Council. Such recommendation shall be based upon, but not be limited to, the following factors: The provisions of Section 20-4-2.F of this Chapter. 2. Any other planning consideration which may be relevant to the proposed designation upon the surrounding neighborhood. 3. Any other planning consideration which may be relevant to the proposed designation. The Heritage Preservation Commission may take such modifications, changes, and alterations concern in the proposed designation as it deems necessary in consideration of the recommendation and opinion of the Planning Commission. G. Hearings: Prior to the Planning Commission recommending to the City Council any building, district, or object for designation as a Heritage Preservation Site, the Planning Commission shall hold a public hearing on the proposed designation. Prior to such hearing the Planning Commission shall cause to be published in a newspaper of general circulation notice of the hearing at least ten (10) days prior to the date of the hearing. Notice of the hearing shall be sent to all property owners within three hundred fifty (350) feet of the proposed Heritage Preservation Site in platted areas and shall be sent to all property owners within five hundred (500) feet of the proposed Heritage Preservation Site in non -platted areas. A copy of the notice and a list of the property owners and addresses to which the notice was sent shall be attested and made part of the records of the proceeding. H. City Council Designation: The City Council shall consider the Recommendation of the Heritage Preservation Commission and Planning Commission that a site be designated for Heritage Preservation, and may by ordinance designate a Heritage Preservation Site. If deemed necessary, the City Council shall have the authority to hold an additional public hearing when considering the designation of a Heritage Preservation Site. 20-96-6: REVIEW OF PERMITS: A. Heritage Preservation Site Alteration Permit: A Heritage Preservation Site Alteration Permit is required to do any of the following in, on, or to a Heritage Preservation Site in the City: Remodel, alter, repair in any kind or manner, including a change of color, that will alter the exterior appearance of a historic building, site, or landmark. 96-4 2. Erect a building or any structure. 3. Erect signs. 4. Move from or to any building. 5. Demolish any building in whole or in part. This does not apply to structures required to be demolished in accordance with Minnesota Statutes, Chapter 463. 6. Alter or remove a land form in whole or in part. The application for a Site Alteration Permit shall be accompanied by detailed plans including a site plan, building elevations and design details, and materials necessary to evaluate the request. The City Council shall make the determination whether to approve or disapprove the permit. B. Reports: The Zoning Administrator shall instruct the appropriate staff persons to prepare technical reports where applicable, and provide general assistance in preparing a recommendation on the action to the City Council. C. Heritage Preservation Commission Recommendation: The Heritage Preservation Commission shall review each application and make its recommendation to the City Council relative to the request for a Heritage Preservation Site Alteration Permit. D. Planning Commission Recommendation: If it is determined that the requested site alteration permit may have land use related implications, the permit application shall be subject to review and recommendation by the Planning Commission. In such case, the Planning Commission shall recommend approval, rejection or modification of the permit to the City Council. Such recommendation shall be based upon, but not limited to, the criteria specified in paragraph E of this subdivision. E. Criteria for Heritage Preservation Site Alteration Permit: The City Council shall approve, disapprove, and/or impose conditions on a Heritage Preservation Site alteration Permit after consideration of the Heritage Preservation Commission's program for preservation and the Secretary of the Interior's Standards for Rehabilitation, as revised and if applicable, the recommendation of the Planning Commission. F. Findings: The City Council shall make findings as to whether a site alteration permit application should be approved or disapproved, or conditions imposed, as determined by the criteria specified in Paragraph E of this subdivision. G. Hearings: Prior to the City Council making its decision regarding an application for a Site Alteration Permit for a Heritage Preservation Site, the City Council shall hold a public hearing on the application. Prior to such hearing the City Council shall cause to be published in a newspaper of general circulation notice of the hearing at least ten (10) days prior to the date of the hearing. Notice of the hearing shall be sent to all property owners within three hundred fifty (350) feet of the site of the proposed Heritage Preservation Alteration in platted areas and shall be sent to all property owners within five hundred (500) feet of the site of the proposed Heritage Preservation Alteration in non -platted areas. A copy of the notice and a list of the property owners and addresses to which the notice was sent shall be attested and made part of the records of the proceeding. H. Limitations: If within sixty (60) days from the filing of a Site Alteration Permit application the Heritage Preservation Commission has not made a recommendation of approval or disapproval to the City Council, the application shall be forwarded to the City Council for approval or disapproval of the permit without the Heritage Preservation Commission's recommendations. 20-96-7: EMERGENCY REPAIR: In emergency situations where immediate repair is needed to protect the safety of the structure and its inhabitants, the Building Official shall have the authority to enforce the Otsego Building Code, pursuant to Section 20-8-5 of this Chapter, may approve the repair without prior Heritage Preservation Commission or City Council action. 20-96-8: REPOSITORY FOR DOCUMENTS: The office of the City Clerk is designated as the repository for at least one copy of all studies, reports, recommendations and programs required under this Section. 20-96-9: RECORDING OF HERITAGE PRESERVATION SITES. The office of the City Clerk shall record the designation of buildings, lands or areas as Heritage Preservation Sites with the Wright County Recorder or the Wright County Registrar of Titles, unless the County Recorder or Registrar of titles refuses to record such designation, and shall transmit a copy of the recording document to the Building Department. MEMO Date: January 27, 2010 To: Mayor & Council Planning Commission From: City Administrator Mike Robertson Re: Historic Preservation Commission Status City Planner Dan Licht will provide a description of the rules and regulations governing the Historic Preservation Commission (HPC) and the various options for changing its status. I thought I would take an entirely different track and review my own perception of the HPC's effectiveness through the years I have worked for Otsego. I want to make it clear that my perceptions are those of an outsider. I attended very few meetings of the Commission over the years and was not intimately acquainted with how they worked. When I started as City Administrator for Otsego in November, 1997 I had not had any experience working with an HPC in the other cities that I had worked. I was very impressed with the work they did. I thought the books that had been done and the past history articles for the Otsego View were fantastic, and heard many comments from people who felt the same way. During this time I assumed that the work done on the books and articles involved everyone on the Commission, even though it was Elaine Norin's byline on the newsletter articles. After Elaine's death in 2002, it became apparent that she was the main person doing the work. The newsletter articles and the books stopped appearing. I did see some HPC members come in to City Hall occasionally to use the scanner the City bought to scan old photos. I assume that some of their work was reflected in the book Images of America -Otsego by Paulie Skaja-Bell and Chris Wilson, which is the only book to come out since Elaine Norin's death. In 2004 the materials were moved to the Old Towne Hall when room was needed at City Hall and I don't know what has been done with them since then. Since that time I have seen very little work done by the HPC. Those Councilmembers who have been appointed as Council liaisons to the HPC have said that the Commission frequently does not have a quorum for meetings, meaning that the Councilmember gives up their evening to open up City Hall for the meeting and hardly anyone shows up. In the last few years their principal topic of HPC discussion has been what to do with the McDonald -Peavey House, which is considered the first house built by a white settler in Wright County. While they have made several recommendations to the City Council, all of the recommendations would involve significant expenditures, which the Council has been reluctant to make. The Council did pay the cost of hiring a consultant to review the McDonald -Peavey House. The consultant did agree the property was historically significant as the first white residence in Wright County. In terms of restoring the property the consultant said that the house had been significantly modified over the years and that the City could choose between several different eras and/or house types if chose to restore it. Because of this, the consultant did not recommend restoring the house to any particular era. During the past few years, the HPC has asked Council 2 and staff for suggestions for projects to work on. Staff suggested coming up with a list of potential park names with historic significance along with historic background which could be put on a sign displayed at each park. Staff also suggested documenting the changeover of a farm into a housing subdivision, information that would be of interest in the future when Otsego is fully developed. There didn't seem to be much interest in either suggestion. The Council has also listed the Otsego Cemetery as a Heritage Preservation site in 2002, but there has been no activity to research, document or promote the history of the people buried there. Recently Otsego residents were surveyed about their interest in rehabbing the McDonald -Peavey House and their interest in paying for rehabilitation. This survey was included with the Otsego View and people were required to return it to City Hall. This meant that survey respondents were self selected rather than randomly selected. The City received 65 surveys back. This is a little more than one percent of the households in Otsego. The final votes were 16 for Save the Peavey House with Public Funds, 20 votes for Save the Peavey House with Private Funds, and 29 votes for Don't Save the Peavey House. At this point the reason the City Council is considering eliminating the HPC as a City commission is that there does not seem to be anything for them to do that fits the interest of the people willing to join the commission. 3