Title
Heritage Review Committee- Review of Special Tax Valuation Application for the Evergreen Inn
Recommended Action
Move to recommend Heritage Commission approval to support Special Tax Valuation for the Evergreen Inn located at 2402 Lakeridge Way SW.
Report
Issue:
To evaluate if the Special Tax Valuation project for the Evergreen Inn meets the Secretary of Interior Standards and should be recommended for approval to the Olympia Heritage Commission and subsequently the Olympia City Council.
Staff Contact:
Brittany Gillia, Historic Preservation Officer, Community Development, 360.753.8427
Presenter(s):
Amie Gutierrez, Historic Tax Credits Manager, Ryan LLC
Background and Analysis:
The City of Olympia has received an application (Attachment 1) to request Special Tax Valuation for the property located at 2402 Lakeridge Way. The applicant is Amie Gutierrez with Ryan LLC, a tax firm hired by the property owner, Olympia 196 LLC, to pursue a listing on the local Heritage Register and a subsequent request for Special Tax Valuation with the City. The subject property has recently undergone an adaptive reuse to convert the 196-room conference hotel into 196 market-rate studio units and is requesting Special Valuation for the rehabilitation costs incurred as part of the project scope. The total dollar amount shown in Attachment 1 has been amended to include additional expenses that were found to be eligible. Before and after photos are available as Attachment 2, and the scope of work statement is included as Attachment 3.
This property is pursuing listing on the local Heritage Register concurrently and the granting of Special Valuation in this calendar year is contingent upon Heritage Register listing approval.
The purpose of the committee’s site visit is to review the completed improvements, determine if the work is consistent with the US Secretary of the Interior’s standards for Rehabilitation, and affirm that the rehabilitation upon which the application is based has not altered or in any way adversely affected those elements of the property which qualify it as historically significant.
The Historic Preservation Officer has confirmed that the subject property tentatively meets basic program eligibility criteria for Special Valuation:
• Historic property is currently in review for listing on the Olympia Heritage Register
• The submitted expenses were incurred within the 24-month window. The project scope extends beyond that, however, the applicant has rightfully omitted those earlier and non-eligible expenses; and
• Per applicant’s documentation (Attachment 4), expenditures total at least 25% of the assessed value of the property, exclusive of land value, prior to the rehabilitation and meet eligible expenses criteria.
o The assessed value of the structure prior to rehabilitation was: $4,971,100
o 25% of this is $1,242,775
o The approved rehabilitation costs are $10,528,995.07
o The costs were verified by receipts/invoices submitted by the applicant.
The Historic Preservation Officer has reviewed expenses and payment documentation with the property owner to verify the stated expenses and establish the exact total of qualified rehabilitation expenditures (TQRE).
Timeline for Special Valuation Review and Approval:
November 2 Heritage Review Committee evaluation and recommendation
November 12 Public Hearing to list property on Olympia Heritage Register
Heritage Commission Review of Tax Valuation w/ HRC recommendation
December 8 City Council Consideration (Pending OHC review)
December 31 Submit to Thurston County Assessor’s Office
If Heritage Commission review and approval is not complete prior to December 8, City Council review will be delayed and the Special Valuation will be applied in the following year.
Climate Analysis:
The greenest building is the one that is already built, and the project is an adaptive reuse which helps to reduce the waste associated with demolishing a building and with new construction. Following the NPS guidelines encourages repair of historic material as much as possible, which reduces the introduction of more waste to landfills.
Equity Analysis:
The Olympia Heritage Commission is dedicated to improving education and outreach. Every application for the Heritage Register and Special Valuation program are opportunities to engage underrepresented communities in the civic process which may lead to future involvement in the City’s historic preservation programming.
The project is an adaptive reuse of hotel units into housing units. Increasing the amount of available housing units helps to ease the pressure of rental market pricing and moves the City closer to our housing target growth rates.
Neighborhood/Community Interests (if known):
N/A
Options:
1. Move to recommend the Special Property Tax Valuation be approved by the Heritage Commission because the project work meets the Secretary of Interior’s Standards for Historic Preservation and Rehabilitation (“Standards”).
2. Only [certain listed work] meets the Standards, and project eligibility should be further evaluated.
3. Move to recommend the Special Property Tax Valuation be denied by the Heritage Commission because the completed work does not meet the applicable Standards.
Financial Impact:
N/A
Attachments:
• Signed and Amended STV Application
• Before and After Photos
• Owner Statement of Scope
• Summary of Expenses
• Special Valuation Eligible Expenses
• Special Valuation HRC Checklist
• Statutory Warranty Deed
• Receipts