AGENDA ITEM #4
July 16,2013
Action
July 12, 2013
MEMORANDUM
TO:
FROM:
SUBJECT:
County Council
Jeffrey L. z y o l lgislative Attorney
Action:
Expedited
Bill
14-13, Historic Preservation
Tax Credit
Government Operations and Fiscal Policy Committee
met on July 8, to discuss
Bill
14-13.
The Committee Chair recommended approval of the bill as introduced and
Councilmember Reimer abstained.
Councilmember Ervin was absent however also
recommended approval of the bill as introduced after the conclusion of the meeting.
Background
Under Chapter 24A of the Montgomery County Code, the Council designates individual sites or
districts as historic by including the area in the Master Plan for Historic Preservation. Although
the public gets the benefit of retaining its history, the historic property owner has additional
burdens compared to other property owners. Once designated, the owners of historic property
must seek a historic area work permit before making changes to the exterior of their property.
The review is intended to ensure that the historic integrity of the site is maintained.
The cost for improvements to historic property is higher than it is for non-historic property. The
material and labor necessary to adhere to historic preservation standards make improvements
more expensive. The additional historic area preservation permit processing can also add costs
in terms of time or dollars.
In recognition of the additional burden on historic property owners, the State and County have
allowed tax credits for qualified historic preservation improvements. Currently, the County's
historic preservation tax credit is the maximum allowed by state law
(l
0%). As of July I, 2013,
State law (Chapter 189 of the 2013 Laws of Maryland) allows a 25% tax credit.
Bill 14-13, Historic Preservation - Tax Credit, sponsored by Councilmembers Rice, Floreen,
EIrich, and Ervin was introduced on June
II,
2013. The sponsors of the
Bill
wish to maximize
the tax credit for qualified historic preservation improvements.
Bill
14-13 would amend the law
related to the percentage of improvement costs on a historic property that is eligible for a
property tax credit. The sponsors have submitted Bill 14-13 as an expedited
Bill
to allow owners
of historic properties to receive the benefit of the increased tax credit as soon as possible.
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Public Testimony
A public hearing was held on June 25 at 1:30 p.m. The Bill was supported by the Montgomery
County Historic Preservation Commission, The City of Rockville, the Gaithersburg Historic
District Commission, Chevy Chase Village, the Town of Washington Grove's Historic
Preservation Commission, Historic Takoma, Montgomery Preservation Inc, the Silver Spring
Historical Society, Peerless Rockville, Heritage Building and Renovation, Inc., and Eileen
McGuckian. There was no testimony opposing the Bill.
Issue
Should the allowable tax credit for qualified historic preservation projects be increased?
The Office of Management and Budget estimated that in FYIl the current historic preservation
tax credit. "cost" the County $234,850 in foregone revenue. Increasing the tax credit would cost
an additional $345,000. The number of tax credit applications varies year to year. In FYIl there
were 141 applications. Historic preservation staff estimates that the number of credits sought
may increase with the additional tax credit by 25 applications a year.
The likely effect of Bill 14-13 is that it encourages renovations by making the work less costly to
the property owner. Testimony cited economic studies on the positive local effects of renovation
projects. Dollars spent on renovation help County businesses. Those businesses thereafter
support other parts of the economy. In short, dollars spent on property renovation have a greater
positive multiplier effect in the economy than many other expenditures.
Staff recommends approval of Bill 14-13.
This packet contains:
Expedited Bill 14-13
Legislative Request Report
Fiscal and Economic Impact Statement
Laws of Maryland Chapter 189
Selected Public Testimony
Circle
#
1
3
4
10
11
F:\LA W\B1LLS\1314 Historic Pres Tax Credit\Action Memo For Council July \6.Doc
2
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Expedited Bill No. _----'.1...!.4-.....!1..::c3--:-_--==__
Concerning: Historic Preservation
Tax
Credit
Revised: May 13, 2013 Draft No.
Introduced:
June 11 2013
Expires:
December 11, 2014
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date:
---'-'==<--_ _ _ _ __
Ch, _ _. Laws of Mont. Co. _ _ __
J
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council members Rice, Floreen, Eirich, and Ervin
AN
EXPEDITED ACT
to:
(1)
(2)
amend the law related to the percentage of improvement costs on a historic property
that are eligible for a property tax credit; and
generally amend the laws governing a tax credit for qualified improvement to
historic properties.
By amending
Montgomery County Code
Chapter 52, Taxation
Section 52-43
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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EXPEDITED BILL
No. 14-13
Sec. 1. Section 52-43 is amended as follows:
2
52-43. Use of tax credit.
3
4
5
(a)
The tax credit is [10]
under Section 52-42.
percent of the taxpayer's qualified expenses
(b)
The tax credit applies to the next tax year after the year in which the
work or any part is completed. Any unused tax credit may be carried
forward to as many as 5 subsequent tax years. However, if the property
is removed as an historic site or excluded from an historic district on the
applicable County or municipal master plan or zoning map, any unused
tax credit must lapse.
6
7
8
9
10
11
12
Sec. 2.
Expedited Effective Date.
The Council declares that this legislation is necessary for the immediate
protection of the public interest. This Act takes effect on the date on which it
becomes law.
Approved:
13
14
15
16
17
Nancy Navarro, President, County Council
Date
18
Approved:
19
Isiah Leggett, County Executive
Date
20
This is a correct copy ofCouncil action.
21
Linda M. Lauer, Clerk of the Council
Date
8f.\ISw\billS\1314
historic pres tax credit\expedited bill 14-13 corrected post ervin addi
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LEGISLATIVE REQUEST REPORT
Expedited Bill 14-13
Historic Preservation Tax Credit
DESCRIPTION:
The Expedited Bill would amend Charter 42 to allow an increased tax
credit for qualified improvements to a historic property. As
introduced, the
tax
credit would be increased from 10 percent to 25
percent.
The designation of a property as historic makes improvements
subject to an additional regulatory review. To offset this burden,
Maryland law allows a tax credit for a percentage of the
improvement. The law governing the allowable
tax
credit for
improvements to historic property was changed in 2013 (Chapter 189
of the 2013 Laws of Maryland). In the absence of amending the
Code, the allowable tax credit would be less than the state allows.
The state law becomes effective on July 1,2013.
It
is the goal of this Bill to allow the maximum allowable tax credit
for improvements to historic property.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
Historic Preservation Commission and Planning Department
To be requested.
To be requested.
To be requested.
To be researched.
Jeffrey
L.
Zyontz, 240-777-7896
To be researched.
None.
\\ccl-f01\data\dept\centraLstaff\zyontz\historic pres tax credt bill\legislative
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ROCKVILLE,
MARYLAND
MEMORANDUM
June 18,2013
Nancy Navarro, President, County Council
TO:
FROM:
Jose~&a~h,
Director, Department
ofFina~
B
iI1
14-13, Historic Preservation
Tax Credit
JennifM~gheS,
Director, Office of Management and Budget
SUBJECT:
Please find attached the fiscal and economic impact statements for the above-referenced
legislation.
JAH:jtb:nm
c: Kathleen Boucher, Assistant Chief Administrative Officer
Lisa Austin, Offices of the County Executive
Joy Nurmi, Special Assistant to the County Executive
Patrick Lacefield, Director, Public Information Office
Joseph F. Beach, Director, Department of Finance
Michael Coveyou, Department of Finance
Robert Hagedoom, Department of Finance
David Platt, Department ofFinance
Alex Espinosa, Office of Management and Budget
Erika Lopez-Finn, Office of Management and Budget
Naeem Mia, Office of Management and Budget
Henri Apollon, Office of Management and Budget
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Fiscal Impact Statement
Council Bill 14-13
&
Historic Preservation - Tax Credit
1. Legislative Summary.
Bill 14-13 would amend the law related to the percentage of improvement costs on a historic
property that is eligible for a property tax credit. Currently, the historic preservation tax credit is
the maximum allowed by state law (10%). On July 1, 2013, state law will allow for a 25% tax
credit.
BiIll4-13 will modify the percentage ofthe credit to 25% (up from the current 10%) of the
amount expended by the taxpayer for the restoration or preservation of a historic property, up
to the amount of County real property taxes due (credit is not refundable).
The credit shall be allowed for the
tax
year immediately following the work or any portion
thereof is completed, and any unused portion ofthis tax credit may be carried forward for up
to 5
tax
years after which the credit lapses.
2.
An
estimate of changes in County revenues and expenditures regardless of whether the
revenues or expenditures are assumed in the recommended or approved budget.
The Bill does not affect County expenditures.
Based on data from the Department of Finance's Tax Expenditure report (June 2012), the
County has foregone the following amounts due to the historic preservation tax credit over
the last five years:
~
Year
2011
2010
2009
2008
2007
Foregone Revenue at 10%
credit level
$234,850
$232,556
$138,447
$221,996
$191,006
Number of
Reci]2ients
141
115
65
111
96
Average Tax Credit Per
ReciQient
$1,665
$2,022
$2,129
$2,000
$1,989
I
Based on the last two years' costs of approximately $230,000 per annum, Finance estimates
an annual fiscal impact of $345,000 in tax revenue losses under the proposed bill.
l
Based on
an average of 128
reci~iel1ts,
the average tax credit per recipient is estimated at
approximately $2,700.
$345,000
=
$230,000 x
1.5
(2.5 - 1.0) (tax credit increased by 150%)
2
Since historic preservation activities are limited in scope to specific properties, the vast majority of homeowners
are ineligible for the credit; therefore, the number of recipients is unlikely to increase (beyond a 2-year average of
128 recipients as based on 2010·2011 data) and the annnal expenditnres are unlikely to increase beyond $345,000.
1
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3. Revenue and expenditure estimates covering at least the next 6 fiscal years.
Based on annual expenditures of $345,000, the total6-year cost is estimated at $2,070,000.
4. An actuarial analysis through the entire amortization period for each bill that would
affect retiree pension or group insurance costs.
Not applicable.
5. Later actions that may affect future revenue and expenditures
if
the bill authorizes
future spending.
Not applicable. The bill does not
au~orize
future spending.
6. An estimate of the staff time needed to implement the bill.
Implementation costs are minimal- Department of Finance staff currently administers the
tax credit program at the 10% scenario and expects no additional staff time to implement the
program at 25% level.
M-NCPPC staff estimates an addition of25 applications per year due to the greater
tax
credit
incentives under this bilL M-NCPPC staff states the total increase in staff time to process
these applications is 12 hours.
7. An explanation of how the addition of new staff responsibilities would affect other
duties.
Department of Finance and M-NCPPC do not expect any impact on other duties under the
proposed bill.
Applications for historic preservation status are administered by jurisdiction at the
appropriate historic preservation commission
in
an applicant's district (City of Gaithersburg,
City of Rockville, or Maryland-National Capital Park
&
Planning Commission (for all other
properties).
8. An estimate of costs when an additional appropriation is needed.
Not applicable - additional appropriations are not needed.
9. A description of any variable that could affect revenue and cost estimates.
The number of
tax
credit applicants/recipients is a variable that affects
tax
revenue estimates.
Another variable that affects expenditure estimates is the amount of the
tax
bill that a County
taxpayer receives.
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10. Ranges of revenue or expenditures that are uncertain or difficult to project.
The number of tax credit applicants/recipients is difficult to proj ect - an increase in the
tax
credit percent amount may increase the number of applicants. However, since historic
preservation activities are limited in scope to specific properties, the vast majority of
homeowners are likely ineligible for the credit and the total number oftax credit
applicants/recipients is not likely to increase beyond the two-year average of 128.
11.
If
a bill is likely to have no fIScal impact, why that is the
case.
Not applicable.
12. Other fiscal impacts or comments.
Taxpayers are eligible for the credit in the tax year after the work is completed. There may be
some taxpayers who will not receive the full amount oftheir credits.
If
a
tax
credit is not
fully used in a single year, the remaining amount can be carried forward for an additional
five years. For example, if there is $250,000 in approved preservation costs, that would yield
$62,500 in credits (using 25%).
If
the annual County tax bill is $5,000, the taxpayer can
apply a total of $30,000 (current year plus an additiona15 years), leaving $32,500 in unused
tax credits that will lapse.
Funds can also lapse ifthe property is removed as a historic site or excluded from a historic
district.
13. The following contributed to and concurred with this analysis:
Robert Hagedoom, Department of Finance
Erika Lopez-Finn, Office ofManagement and Budget
Amy Wilson, Office of Management and Budget
Jenn~'A:HUS,
Director
Office of Management and Budget
Date
la(lCJfl3
J
J
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Economic Impact Statement
Expedited Bill 14-13, Historic Preservation - Tax Credit
Background:
Bill 14-13 would amend the law related to the percentage of improvement costs on a historic
property that is eligible for a property tax credit. Currently, the historic preservation tax credit is
the maximum allowed by state law (10%). On July 1, 2013, state law will allow a 25% tax credit
and this bill would adopt the same 25% tax credit for qualified historic preservation
improvements.
This tax credit may be granted against the County real property tax, based upon the amount
expended by a taxpayer for restoration or preservation of a historic property. A property must be
a historic site designated on the master plan for historic preservation, or within a historic district
designated on the master plan for historic preservation.
A
tax credit will be allowed only for
work which is the subject of an approved historic area work permit; or for ordinary maintenance
expenses, when the amount expended exceeds $1,000.00.
A
credit will be approved for exterior work only, and no credit shall be granted for new
construction. Under the proposed legislation, the amount of the credit would be equal to 250 of
the amount expended by the taxpayer for the restoration or preservation of a historic property, up
to the amount of County real property taxes. The credit shall be allowed for the tax year
immediately following the work or any portion thereof is completed, and any unused portion of
this tax credit, may be carried forward for up to 5 tax years, after which the credit lapses.
The impact of the credit based on prior year tax collections is below:
Levy Year
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
Amount
234,850
232,556
138,447
221,996
191,006
170,407
213,712
203,335
224,513
181,268
115,669
104,993
118,954
73,821
Recipients
141
115
65
111
96
107
107
117
115
114
98
79
99
73
1.
The sources of information, assumptions, and methodologies used.
Page 1 of2
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Economic Impact Statement
Expedited Bill 14-13, Historic Preservation - Tax Credit
This bill has no economic impact as it serves only to increase the rate of the historic
preservation
tax
credit for those who receive the
tax
credit.
2. A description of any variable that could affect the economic impaet estimates.
This bill should not have an economic impact as it serves only to increase the rate of the
historic preservation
tax
credit for those who receive the tax credit. It is assumed that the
credit will not incentivize increased historic preservation related expenditures because only
those that are necessary should be incurred.
Provided the County Council approves real property
tax
levies at the level pemritted under
Section 310 of the County Charter, there should not be an impact on property
tax
collections
though it will reduce the applicable real property tax bill for eligible applicants.
3. The Bill's positive or negative effect,
if
any on employment, spending, saving,
investment, incomes, and property values in the County.
The bill has no economic impact as it serves only to increase the rate ofthe historic
preservation
tax
credit for those who receive the tax credit.
4.
If
a Bill is lil{e1y to have no economic impact, why is that the case?
The bill has no economic impact as it serves only to increase the rate ofthe historic
preservation tax credit for those who receive the tax credit.
5. The following contributed to and concurred with this analysis:
David Platt and Mike
Coveyou, Finance.
Department of Finance
JO~~
Page 2 of2
(j)
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MARTIN O'MALLEY, Governor
Ch.189
Chapter 189
(Senate Bill 144)
AN ACT concerning
Property Tax Credit - Historically and Architecturally
Valuable
Property
FOR the purpose of altering the amount of certain restoration and preservation
expenses for certain historic structures that the governing body of a county or
municipal corporation may ·authorize to be claimed by certain taxpayers as a
property tax credit against the county or municipal property tax; providing for
the application of this Act; and generally relating to a property tax credit for
certain restoration and preservation expenses.
BY repealing and reenacting, with amendments,
Article Tax - Property
Section 9-204(b)
Annotated Code of Maryland
(2012 Replacement Volume)
SECTION
1.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article - Tax - Property
9-204.
(b)
A property tax credit of up to [10%]
25%
of the properly documented
expenses of a private owner taxpayer for the restoration and preservation of a
structure that the Mayor and City Council of Baltimore City or the governing body of a
county or of a municipal corporation determines has historic or architectural value
may be granted, by law, by the Mayor and City Council of Baltimore City or the
governing body against the county or municipal corporation property tax imposed.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
June 1, 2013, and shall be applicable to all taxable years beginning after June 30,
2013.
Approved by the Governor, May 2, 2013.
-1­
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June 19, 2013
City
of Rockville
III Maryland Avenue
Rockville, Maryland
20850·2364
www.rockvUlemd.gov
240-314-5000
'ITY 240·314-8137
The Honorable Nancy Navarro
President, Montgomery County Council
100
Maryland Avenue
Rockville, Maryland 20850
Re:
Bill 14-13. Historic Preservation - Tax Credit
Dear Ms. Navarro:
On behalf of the
City
of Rockville, we write in support of efforts to strengthen the Historic
Preservation Tax Credit opportunity for our residents. The City of Rockville participates
on a yearly basis in this county program and we see the results with increased property
maintenance at historic properties.
We are pleased with the rapid response of the County Council. following the recent
authorization by the State legislature in 2013 (HB0263/SB0144), to introduce legislation'
that increases this local preservation tax credit from 10% to 25% of approved
expenditures. County Council adoption oHhe legislation will be an excellent step in
support of property owners' efforts to preserve our city and county's history.
The Mayor and Council of Rockville supports this legislation and requests that the
County Council adopt it. For many years, the historic preservation tax credit has
positively impacted our community. Bill 14-13
will
provide residents with an additional
incentive to maintain and improve their historic properties. This will stimUlate further
beautification of the community and increased investment in the local economy.
Please contact Robin Ziek, Historic Preservation Planner, at 240 314 8236, if we can be
of any help to you.
w
w
Sincerely,
MAYOR
Phyllis
Ma.reucdo
COUNCIL
Joh,,!'. H..u.lo
TomMo()[~
Bridget Donnell New!;>"
Mali<
Plerzchalfl
c£n MANACER
!lArbar~
Il. Matthews
The Mayor and Council of Rockville
CITYCLllRI<
DougS.rbl!(
cln AITORNEY
Cc: Montgomery County Council
D<lbra Yerg: Daniel
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HISTORIC PRESERVATION COMMISSION
TESTIMONY TO THE MONTGOMERY COUNTY COUNCIL
BILL 14-13 PUBLIC HEARING
June 25, 2013
Good afternoon, I am William Kirwan, Chair of the Historic Preservation Commission. I am here on
behalf of the Historic Preservation Commission to formally offer the Commission's unanimous support
for Bill 14-13. I also want to thank Councilmember Rice for introducing this important bill, and
Councilmembers Floreen, Eirich, and Berliner for joining as co-sponsors. The Commission urges the
Council's adoption of Bill 14-13.
Historic preservation tax credits are widely recognized as a powerful incentive to rehabilitate historic
properties. By acting on newly adopted state authorization to increase the County's credit from 10 to
25 percent, this bill will strengthen this preservation incentive and benefit property owners who work so
hard to maintain historic resources in their stewardship.
less widely understood, but equally important, is the role historic preservation tax credits playas an
economic generator. It may not be intuitive, but preservation credits are actually beneficial for local
economies because they stimulate both job creation and tClX revenues. On June 14, the National Park
Service announced that the federal rehabilitation tax credit program has added $66 billion dollars to the
economy and generated 2.4 million jobs over the 35 year lifespan of the program. Studies in nearly
every state have found similar results. In 2010 Governor O'Maney reported that in Maryland $8.50 of
economic output is generated on every $1 of state rehab credits invested. Economist Donovan Rypkema
suggests that more of these dollars invested in rehabilitation projects stay in the local economy than
dollars spent on new construction. A Rutgers study found that fully 75 percent of the economic Impact
of historic preservation projects stays local as dollars are recycled through the economy when local
contractors purchase buildings materials, pay taxes on their wages, buy lunch or coffee, and pay their
mortgage or rent.
In summary, the Commission urges adoption of Bill 14-13 for the positive impact increased rehabilitation
tax credits
will
have on the preservation of historic resources, as a benefit to the owners of historic
properties, and for the constructive effect the credits have on the local economy.
Thank you for this opportunity to present this testimony.
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County Council
Testimony
in
favor of Bill 14-13, Historic Preservation Tax Credit
June 25, 2013
Good afternoon, I am Mary van Balgooy representing the nonprofit organization,
Peerless Rockville Historic Preservation, Ltd. Peerless Rockville has for nearly 40 years
urged the private sector to invest in preserving historic properties and provided
encouraging infonnation on regulations, on incentives, on contractors and crafts persons
who specialized in restoration.
In the early 1970s, few economic incentives for preservation existed. Property owners of
means preserved homes. America's Bicentennial elicited a wave of pride and increased
sense of history and community. In Rockville, we "Urban Renewed" our commercial
center and came within hairs of losing other local landmarks before we became one of
Maryland's first jurisdictions to establish a local program of historic districts. Even so,
the major appeal was to the owner's good feeling when taking a derelict building and
fixing it up and finding a new use for it.
But it was not until later, when State and County economic incentives became available
and private owners realized that there was a
carrot
to accompany the stick of a historic
property. For while pride is a significant motivation, economics is the driving force.
Increasing the allowable property tax credit from the current 10% to 25% will help
property owners of historic properties close the gap between what cash they have and
what they need to spend to improve their properties. Peerless' 350+ members rely on the
county's tax credit and by increasing it, they will be encouraged to do more with their
homes.
Studies, including recent ones, show that historic preservation makes good economic
sense for the State and County - by adding jobs, by stimulating tourism that is one of our
top industries, by adding to the tax base, by stabilizing neighborhoods of all types, and
now by sustaining the environment.
Studies also show historic preservation provides people with a sense of history and place
- a tangible link to our history. Educators who have incorporated heritage education,
which grew out of historic preservation, into their existing curriculum have come to
realize not only the importance ofteaching students about their past but also the ways in
which local and community history - that tangible link - helps students better to
understand state and national history, mathematical and scientific concepts, art, music,
and the humanities.
Increasing the tax credit for historic preservation is a good thing. Peerless Rockville
encourages you to support
it.
Thank you.
PO Box. 4262, Rockville, MD 20849-4262
J
301.762.0096
I
PeerlessRock.ville.org
@)
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\?Ill..
L.
\4 - I;)
Marin, Sandra
From:
Sent:
To:
Eileen McGuckian [phileen3@verizon,net]
Monday, June 24, 2013 8:17 AM
Montgomery County Council
Page 1 of 1
,")"2..
073025
Subject: Expedited Bill 14-13, Historic Preservation Tax Credit -- testimony for the public record
To the Montgomery County Council,
Please record me as in enthusiastic support of Expedited Bill 14-13, Historic Preservation Tax Credit.
This legislation will enhance an in-place incentive for owners of designated Montgomery County
historic sites by increasing the allowable tax credit for qualified expenses from 10 to 25 percent.
This updated compliance with the State law is a good thing, and I applaud the Council and Executive
for supporting this bill.
Thank you,
Eileen McGuckian
11807 Dinwiddie Drive
Rockville, MD 20852
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June 13,2013
Honorable Nancy Navarro
Council President
Montgomery County Council
100 Maryland Avenue
Rockville, MD 20850
RE:
Expedited Bill 14-13
Dear Ms. Navarro:
On behalf of the Chevy Chase Village Board of Managers, we would like to express our support
of the above-referenced Expedited Bill, which would increase the tax credit for qualified
improvements on historic properties from 10% to 25%.
The Chevy Chase Village Historic District was established in 1998 and consists of 331
properties, including our Village Hall, within the Village's nO-home community. Many ofour
residents currently take advantage ofthe 10% tax credit for eligible improvements projects.
Many ofthese projects require regulatory review by the Historic Preservation Commission in
addition to the County's Department of Permitting Services and the Village's local permitting
review office. The State legislature's adoption of Senate Bill 144 and House Bill 263, which
increases that 10% tax credit to 25%, acknowledges the additional regulatory burden placed upon
homeowners when making improvements to these properties.
We understand that a local amendment to county law is required to effect this change within
Montgomery County, which the residents ofthe Chevy Chase Village Historic District greatly
support. We encourage the County Council to approve Expedited Bill 14-13.
Sincerely,
~~jJ.~~
Patricia S. Baptiste
Chair, Board ofManagers
cc:
Montgomery County Council
Chevy Chase Village Board of Managers
CHEVY CHASE VILLAGE
5906
ConnectiCllt
Avenue
Chevy Chase, MaryJand 20815
Phone (301) 654-7300
Fa:< (301)
9Q'7-972.1
BOARD OF MANAGERS
Chait
Ylt~
PATRICIA S. BAPT!STE
MICHAEL
L
DENGER
(/fller
GARY CROCKETI
ROBERT C. CooDW!N, JR.
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VILLAGE MANAGER
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www.chevychaseviUagemd.gov
RICHARD M.
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LEGAL COUNSEL
SUEl.LEN M.
FERGUSON
ELISSA A. LEONARD
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PO Box 216, Washington Grove, MD 20880-0216
Th~T~W~rWaShington
Grove
June 17,2013
The Honorable Nancy Navarro
100 Maryland AVE
Rockville, MD 20850
Dear Council Member Nancy Navarro:
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Historic Preservation
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Tel: (301) 926-2256 - Fax: (301) 926-0111
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Preservation Maryland announced in April that the Town of Washington Grove has been'identified Wone
often historic sites placed on the 2013 Endangered Maryland watch list. The list is composed of ''the
state's most threatened fiistoric and cultural sites." This is the first time that an entire town has been
singled out for inclusion.
The threats identified are the direct result of both public and private development adjacent to its borders.
Cumulative impacts mount from construction of the Inter-County Connector, relocation ofthe roadway
service portions of the County Service facility to a site within 50 feet of historic cottages, construction to
enable the expansion of the freight railroad traffic between state's ports and parts west, and private
residential projects at increasingly urban densities without comprehensive integration into area
infrastructure. These various undertakings by separate entities proceed despite a lack of specific
examination of the impacts on the historic integrity ofthe National Register Resource. This is the result of
there being little specific obligation to adjudicate impacts betweenjurisdictions. The Town is not
recognized as a historic resource at the County level. Thus planning decisions by the County and private
development pressures are subject only to the momentary good will or farsighted vision of those charged
with providing proper regulation. As is clear from the view from aerial views, Washington Grove's
development trajectory differs markedly from that of the County managed areas surrounding
it.
As described in its 1980 National Register of Historic Places nomination "Washington Grove is an
incomparable town ... " Founded
in
1874 as a Methodist camp meeting ground, evolving into a
Chautauqua Assembly, and then secular incorporated town in 1937, Washington Grove succeeded in
preserving its historic fabric well into the late twentieth century, even as the surrounding towns and farms
were swallowed by sub urbanization. Present day Washington Grove---its structures, street layout, open
spaces, and forest preserves--can be characterized as a Historic Vemacular Landscape. In common with
other NRHP-listed former camp meeting grounds-Wesleyan Grove (Massachusetts) and the Chautauqua
Institution (New York), Washington Grove shares such elements as a radial-concentric street plan,
Gothic-Revival cottages, and the allocation of the majority of its terrain towards woodlands and parks
rather than developed property. This uniqueness is recognized in an M-NCPPC HPC historic context ,
report that states: "Camp meetings are a significant trend in the history and built environment of
Montgomery County and the State of Maryland." Indeed, Washington Grove retains its origins as a place
created "with a different spiritual intention from the outer world." For this reason, its entire landscape
conveys a sense of other-worldliness. The boundaries of Washington Grove remain so clearly defined that
entering this "Town within a Forest" brings with it the feeling of entering another world and another time.
The absence of any through-traffic, the restrictive speed limits, and the Town's many grassy and gravel
walkways have created a successful pedestrian-centric community that served as an example for the
developers
Of
the Kentlands, the iconic first smart growth community in the County. Both its uniqueness
and its typology are long tenn assets that enrich the County:
@
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Town of Washington Grove Historic Preservation Commission (continued)
We would like to invite you to visit the Grove to experience and the strengths and vulnerabilities of this
unique community firsthand.
In
fact, please feel free to bring your family to our
4th
of July celebration
beginning <at 11 :00 a.m. with costume judging and the parade at
12
noon in Woodward Park., park your
car and walk with us on our many green avenues< We hope this awareness will be a key component of
your ongoing decisions regarding our mutual destinies. .
.
Yours in working together,
Robert Booher
Chair, Historic Preservation Commission
Annual
Report to
the
Town
2012
Page
2/3
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Page l'of 1
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Sent:
Friday, June 21, 2013 6:49 AM
073007
To:
Montgomery County Council
Subject: Preservation Tax Credit Bill 14 - 13
We support an increase in the Preservation Tax Credit; Bill 14-13, to keep our many historic districts,
the pride of Montgomery County, in great shape and good repair. Please approve the increase of this
credit to 25% as embodied in the bill.
Sincerely, Jerry McCoy, President and Founder, Silver Spring Historical Society
P.O. Box 1160, Silver Spring, Md. 20912, sshistorv@yahoo.com, 301-537-1253
George French, Silver Spring Historical Society Member
510 Albany Ave, takoma Park, MD 20912,301-585-3817
Marcie Stickle, Silver Spring Historical Society Advocacy Chair
8515 Greenwood Ave. #8, Takoma Park, MD 20912,301-585-3817
Marin, Sandra
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6/21/2013
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073048
Councilmember Nancy Navarro
100 Maryland Avenue
6
th
Floor
Rockville, MD 20850
Dear Councilmember Navarro,
We would like to let.You know of our full support for Bill #14-13 proposing an increase
in the historic preservation
tax
credit from 10% to 25%.
Heritage Building and Renovation works almost exclusively on older and historic
properties. Our residential and light commercial restoration work in historic areas of
lower Montgomery County would be positively affected by such an increase.
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to sharing the good new,; with our clients.
June 21, 2013
Rick Leonard, CR
President, Heritage Building and Renovation, Inc.
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7334 Carroll Avenue • Takoma Park, MD 20912.301.270,4799. Fax; 301.270.0166
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Page 1 of 1
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Guthrie. Lynn
From:
Sent:
To:
Cc:
Subject:
Matt Bowling [MBowling@gaithersburgmd.gov]
Monday, July 08,201312:47 PM
Montgomery County Council
Zyontz, Jeffrey; Monica Sanchez; John Schlichting; Scott.Whipple@montgomeryplanning.org
Letter of Support - Gaithersburg HOC
073174
Attachments: HPTC - Support Letter.pdf
Dear Montgomery County Council members,
Thank you so much for taking the time to consider raising the Montgomery County Historic
Preservation Tax Credit.
We, respectfully, wanted to make sure that you had the attached letter of support from the City
of Gaithersburg Historic District Commission as you prepare for today's worksession.
Should you have any questions please do not hesitate to contact me via emair'af
mbowling@gaithersburgmd.gov or via telephone at 301.258.6330 x2121.
"
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Very Respectfully,
'. oj :
Matthew T. Bowling, M.A., M.H.P.
City Planner II and Liaison to the Historic District Commission
mbowling@gaithersburgmd.gov
301.258.6330 x2121
"To enhance the quality of life in the City by promoting excellence in development, public safety, health,
and welfare for all."
The opinions expressed in this message are not necessarily those of the City of Gaithersburg Staff,
Mayor, or Council.
7/8/2013
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Page 1 of 1
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Guthrie, Lynn
From:
Sent:
To:
Subject:
C-L.
Imoh, Inemesit
Tuesday, July 02, 201310:39 AM
Montgomery County Council
FW: Bill 14-13
073125
Attachments:
tax creidt letter 14-13.doc
From:
diana@takoma.com [mailto:diana@takoma.com]
Sent:
Tuesday! July 02,2013 3:10 AM
To:
Navarro's Office, Councilmember
Subject:
Bill 14-13
Please include the following testimony in the public record (text below and attached).
Historic Takoma
7328 Carroll Avenue
Takoma Park MD 20912
July 1,2013
Councilmember Nancy Navarro
Montgomery County Council
100 Maryland Avenue
Rockville MD 20850
Re: Historic Preservation Tax Credit, Bill 14-13
Dear Councilmember Navarro:
I am writing on behalf of Historic Takoma in support of Bill 14-13 which raises the historic preservation
tax credit from 10% to 25% in keeping with recent state action increasing the rate.
We applaud the Council's prompt action to allow Montgomery County residents and businesses to claim
the maximum
tax
credit allowed under state law. This tax credit is a significant incentive for
homeowners and businesses alike to encourage renovation and improvements of their historic properties
and is a key element ensuring the long term maintenance of these properties. In addition, many of these
projects are undertaken by local contractors, thus further enhancing the economic benefits of this bill.
Historic Takoma urges the speedy adoption of Bill 14-13 to align with the state law that takes effect on
July 1,2013.
Sincerely,
DianaKohn
President
7/2/2013
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Post Office Box 4661
Rockville, MD 20849-4661
Web: www.montgomerypreservation.org
Email: mpi@montgomerypreservation.org
Montgomery Preservation Inc.
Promoting the Preservation, Protection and Enjoyment of Montgomery County's historic structures and landscapes
June 30,2013
To:
From:
Re:
The Montgomery County Council
Montgomery Preservation, Inc.
Expedited Bill 14-13 -- Historic Preservation Tax Credit -- for the public record
Dear President Navarro and Members of the Council;
Montgomery Preservation is in favor of the proposed increase in the percentage and
effectiveness of the Historic Preservation Tax Credit for improvement of properties
designated on the Montgomery County Master Plan for Historic Preservation.
Over many years, the tax credit has proved to be the most tangible way for the public to
enable historic rehabilitation and well as to let owners know how much we appreciate
living and working around local landmark buildings and historic districts. Such a boost to
the property owners who conduct large and small historic rehabilitation projects is a
sound public investment that will produce a sound return in the long run.
The preservation community concurs with the text of this bill that historic preservation
laws "protect the public interest."
With appreciation to the bill sponsors and to the full council for passing this bill,
Lorraine J. Pearsall, President
Montgomery Preservation, Inc.
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