SB2639 - Relating to the designation of a property as a historic landmark and the inclusion of a property in a historic district or similar preservation district by certain municipalities.

      By: Bettencourt, Kolkhorst S.B. No. 2639     A BILL TO BE ENTITLED   AN ACT   relating to the designation of a property as a historic landmark and   the inclusion of a property in a historic district or similar   preservation district by certain municipalities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 211.0165(a) and (d), Local Government   Code, are amended to read as follows:          (a)  Except as provided by Subsection (b) and subject to   Section 211.01651 , a municipality that has established a process   for designating places or areas of historical, cultural, or   architectural importance and significance through the adoption of   zoning regulations or zoning district boundaries may not designate   a property as a local historic landmark or include a property within   the boundaries of a local historic district unless:                (1)  the owner of the property consents to the   designation or inclusion; or                (2)  if the owner does not consent, the designation or   inclusion of the owner's property is approved by a three-fourths   vote of:                      (A)  the governing body of the municipality; and                      (B)  the zoning, planning, or historical   commission of the municipality, if any.          (d)  The historic designation impact statement must include   [ lists of the ]:                (1)   the regulations that may be applied to any   structure on the property after the designation;                (2)   the procedures for the designation;                (3)   the tax benefits that may be applied to the   property after the designation; [ and ]                (4)   the rehabilitation or repair programs that the   municipality offers for a property designated as historic ;                 (5)     the code violations that would need to be resolved   to bring the property into compliance if the property was   designated as historic or included in a local historic district;                 (6)     an estimate prepared by an independent appraiser,   adjuster, or construction expert of the cost to repair or restore   the property if designated as historic; and                 (7)     an appraisal prepared by an independent appraiser   of the value of the property:                       (A)     if the proposed historic designation or   inclusion in a local historic district is not applied to the   property; and                       (B)     if the property is designated as a local   historic landmark or included in a local historic district .          SECTION 2.  Subchapter A, Chapter 211, Local Government   Code, is amended by adding Section 211.01651 to read as follows:           Sec.   211.01651.     DESIGNATION OF HISTORIC LANDMARK OR   DISTRICT IN CERTAIN MUNICIPALITIES. (a)   This section applies only   to a property located in a municipality with a population of 950,000   or more.           (b)     A municipality may not designate a property as a local   historic landmark or include a property within the boundaries of a   local historic district without the consent of the owner of the   property unless the municipality complies with:                 (1)  Section 211.0165; and                 (2)     the procedures in this section for assessing   damages and determining compensation to the property owner.           (c)     If the governing body of a municipality approves the   designation of a property as a local historic landmark or inclusion   of the property within the boundaries of a local historic district   as provided by Section 211.0165(a) and the owner of the property   does not consent, the municipality must make a bona fide offer to   compensate the property owner for damages attributable to the   designation or inclusion.   A municipality has made a bona fide offer   if the municipality:                 (1)  provides to the property owner in writing:                       (A)     an initial offer of compensation for damages;   and                       (B)     a final offer of compensation for damages, on   or after the 30th day after the date the municipality makes a   written initial offer to the property owner; and                 (2)     provides the property owner with at least 14 days   to respond to the final offer and the property owner does not agree   to the terms of the final offer within that period.           (c-1)     An initial or final offer of compensation for damages   provided by a municipality under Subsection (c)(1) may not be less   than the greater of:                 (1)     the estimated cost to repair or restore the   property as determined under Section 211.0165(d)(6); or                 (2)     the appraised value of the property determined   under Section 211.0165(d)(7)(A) minus the appraised value of the   property determined under Section 211.0165(d)(7)(B).           (d)     If a municipality is unable to agree with a property   owner on the amount of damages under Subsection (c), the   municipality may bring an action to authorize the municipality to   designate a property as a local historic landmark or include a   property within the boundaries of a local historic district without   the consent of the property owner by filing in the proper court a   petition that includes:                 (1)  a description of the property;                 (2)     the name of the property owner if the owner is   known; and                 (3)  a statement:                       (A)     specifying the designation or inclusion that   the municipality seeks to authorize;                       (B)     that the municipality and the property owner   are unable to agree on the damages; and                       (C)     that the municipality made a bona fide offer   to compensate the property owner for damages as provided by   Subsection (c).           (e)     A municipality that files a petition under Subsection   (d) shall provide a copy of the petition to the property owner by   certified mail, return receipt requested, and first class mail.   If   the municipality has received written notice that the property   owner is represented by counsel, the municipality shall provide a   copy of the petition to the property owner's attorney by first class   mail, commercial delivery service, or e-mail.           (f)     The court in which a petition is filed under this   section not later than the 30th day after the date the petition is   filed shall appoint three special commissioners, as provided by   Section 21.014, Property Code, to assess the damages of the owner of   the property that the municipality seeks to designate as a local   historic landmark or include within the boundaries of a local   historic district.           (g)     The special commissioners appointed under Subsection   (f) shall:                 (1)     as soon as practicable but not later than the 20th   day after the date the special commissioners are appointed hold a   hearing to assess damages; and                 (2)     provide written notice of the hearing to the   municipality and the property owner as provided by Section 21.016,   Property Code.           (h)  A municipality or property owner may:                 (1)     appeal the findings from the special commissioners   as provided by Section 21.018, Property Code; or                 (2)     move to dismiss the proceedings in an action filed   under Subsection (d), as provided by Section 21.019, Property Code.           (i)     As the basis for assessing actual damages to a property   owner from a designation of a property as a local historic landmark   or inclusion of a property within the boundaries of a local historic   district, the special commissioners shall admit evidence on:                 (1)  the value of the property;                 (2)  the injury to the property owner;                 (3)  the benefit to the property owner's property;                 (4)     the use of the property for the purpose of the   designation or inclusion;                 (5)  the cost to repair the property; and                 (6)     any diminution in the value of the property due to   the designation or inclusion, including from restrictions on the   property owner's ability to demolish or develop the property.           (j)     The special commissioners shall assess damages in a   proceeding under this section according to the evidence presented   at the hearing and as provided by Section 21.042, Property Code, as   applicable.           (k)     The special commissioners in a proceeding under this   section shall adjudge the costs of the proceeding against a party as   follows:                 (1)     if the commissioners award greater damages than   the municipality offered to pay or a court on appeal awards greater   damages than the commissioners awarded, the municipality shall pay   all costs, including attorney's fees, other professional fees, and   court costs; or                 (2)     if the commissioners' award or the court's   determination of the damages is less than or equal to the amount the   municipality offered before proceedings began, the property owner   shall pay court costs.           (l)     A municipality shall pay the initial cost of serving a   property owner with notice of a condemnation proceeding. If the   property owner is ordered to pay court costs, the municipality may   recover the expense of notice from the property owner.           (m)     If a court hearing a suit under this section determines   that a municipality did not make a bona fide offer to compensate the   property owner for damages as required by Subsection (c), the court   shall abate the suit, order the municipality to make a bona fide   offer, and order the municipality to pay:                 (1)  all costs as provided by Subsection (k); and                 (2)     [Text truncated for display. Full text available on LegiScan.]