Board backs exploring transfer-development rights, lower permit fees and tax incentives for historic properties

The Historic Preservation Board discussed multiple financial incentives designed to make preservation economically viable, including transfer-development-rights (TDR), reduced permit fees and state-authorized tax-exemption mechanics. Staff framed TDRs as a way for owners to monetize unused FAR by selling buildable rights to receiving properties in commercial corridors, subject to deed restrictions and caps.

"So I'm not going to build that 2,000 square feet here, but I'm going to transfer it to a receiving property," staff explained when outlining how a TDR transaction might operate. Board members questioned market mechanics, caps, and whether owners would be willing to encumber development rights long-term. Members asked for guardrails so the program would not allow uncontrolled increases of commercial development in receiving areas.

Staff also proposed reducing permit fees by one-third for historically designated properties and noted state limits on tax-exemption programs (including an existing local code requirement that a property be open 40 hours a week to qualify for certain incentives). Members supported testing incentives with clear deed restrictions and suggested bringing more fleshed-out financial modeling and legal review to the commission for consideration.