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Request for Refund of Demolition Fine 130 Massol Avetos e�t�s DATE: TO: FROM: SUBJECT: MEETING DATE: 04/07/15 ITEM NO: I COUNCIL AGENDA REPORT MARCH 30, 2015 MAYOR AND TOWN COUNCIL LES WHITE, INTERIM TOWN MA — REQUEST FOR REFUND OF DE LITION FINE. APN 510 -18 -045. PROJECT LOCATION: 130 MASSOL AVENUE. PROPERTY OWNER: DIETER SCHMIDT. RECOMMENDATION: Staff recommends that the Town Council deny the request for a refund of fines. BACKGROUND: On May 7, 2001, the Council adopted Ordinance 2083 amending sections of the Town Code (Attachment 1). The staff reports describing the ordinance, its purpose, and expected outcomes are contained in Attachments 2, 3, and 4. This ordinance included provisions to add penalties for unlawful demolition of historic structures and an appeal process regarding penalties for unlawful demolition of historic structures. In 2010, the owner of 130 Massol Avenue was fined pursuant to the Town Code and is requesting a refund of the fine plus interest and other costs (Attachment 5). ANALYSIS: A. History of the request In May 2009, the Town approved the relocation and addition for a contributing historic structure at 130 Massol Avenue. (Further chronology of events is included in Attachment 6). During the building permit process, the Town requested a demolition affidavit which requires all parties of the project to review the Town's demolition Code requirements (page three of Attachment 5). PREPARED BY: LAUREL R. PREVETTI Assistant Town Manager/C mmunity Developrector Reviewed by: N/A Assistant Town Manager Town Attorney Finance N:MEV\TC REP0RTS\2015VNasso1130.dxx Reformatted: 5 /30/02 PAGE MAYOR AND TOWN COUNCIL SUBJECT: 130 MASSOL AVENUE March 30, 2015 ANALYSIS (cont'd): The demolition affidavit is contained in Attachment 8. All parties must sign that they have read and understand the demolition Code requirements. Questions regarding the demolition affidavit are often answered over the counter and phone. Town Code requires the demolition affidavit when the proposed project would result in demolition of more than 40% of the existing exterior walls. Even for projects with less than 40% demolition, staff requests the demolition affidavit to be signed to ensure, in the event additional demolition may be required beyond what is shown on the plans, all parties understand the demolition Code requirements. Staff recalls the contractor for the 130 Massol Avenue project referencing the demolition requirement of 40% demolition and, because the project plans showed 39.6% demolition, declining to sign the affidavit. The Town stamps a notice in red ink on the building permit plans that the work includes demolition. On July 2, 2010, the Town was made aware of work beyond the approved plans and the Town placed a stop work on the project. The work resulted in demolition of the contributing historic structure (photographs are included as Attachment 9). Pursuant to Town Code, the Town required an Architecture and Site application and payment of fines prior to continuing construction. In order to spread the fine over time as opposed to a lump sum payment, the Town agreed to a payment schedule for the fines (Attachment 10). The property owner did not appeal the fines pursuant to Town Code. In July 2013, he requested that the Town Manager refund the fines. Subsequently, the Town Manager and other staff have communicated and met with the property owner on several occasions. Staff explained that only the Council had the ability to refund fines. There was no assurance or expectation that the Town Council would approve a refund. Upon the request of Mr. Schmidt, Town staff scheduled a review of the Town's demolition penalties by the Historic Preservation Committee (HPC) on February 25, 2015. This review is intended to consider the broader question of the effectiveness of the Town's penalty requirement. The matter was continued to the HPC meeting on March 25, 2015 and continued again to its meeting in April. On March 4, 2015, Mr. Schmidt submitted the same information as contained in Attachment 5 for the Committee's review, along with a new cover letter (Attachment 11). B. Penalty Refund Request Pursuant to the Town Code, the property owner who has unlawfully demolished a structure shall file the required applications, including the application fees, and be subject to fines. The penalty requirement was adopted by the Town as a result of several unlawful demolitions of historic structures in the early 2000's. PAGE MAYOR AND TOWN COUNCIL SUBJECT: 130 MASSOL AVENUE March 30, 2015 C. Staff Recommendation Due to the precedent setting nature of the request, staff recommends that the Council deny the refund request. ALTERNATIVES: If Council disagrees with the staff recommendation, the Council may grant the request for the refund. FISCAL IMPACT: If the Council approves the refund plus interest and other costs, the total fiscal impact is unknown because we lack information regarding the requested interest rate. Without consideration of interest, the amount of fines, Building Permit fees, and other costs are over $88,480. The funding source for the refund would be the Town's General Fund. COORDINATION: The preparation of this report was coordinated with the Town Attorney and Finance Director. Attachments: 1. Ordinance 2083 2. February 20, 2001 Town Council Agenda Report 3. April 2, 2001 Town Council Agenda Report 4. April 16, 2001 Town Council Agenda Report 5. Applicant's Background and Request received February 25, 2015 (39 pages) 6. Chronology 7. Plan Check Comments (10 pages) 8. Demolition Affidavit 9. Photographs from Town Records (two pages) 10. Penalty Agreement (three pages) 11. Letter to Historic Preservation Committee THIS PAGE INTENTIONALLY LEFT BLANK