Michael McLaughlin wrote:

Let's take the building owner at 13th and Harmon where
Hi-Fi Sound and other businesses are located as a for
instance.  The building is a smaller, one-story
building with limited off-street parking.  According
to Hennepin County property records, the property is
assessed at $420,000 in land value and $250,000 in
building value.  The land is more valuable than the 
building in large part because it has downtown zoning.
 With the historic district, demolishing his building
- which one could reasonable argue does not really
architectually contribute to the historic auto
district - is, for all intents and purposes,
impossible.  The city has just effectively wiped out
60% of this guy's investment in his property.  How
many homeowners would like the city to do that to
them?
snip
I believe we should all take a hard look at the
process for historic designation because the process
leading up to the district designation was so
tremendously stacked against these property owners, 
it's frightening.  

David Piehl writes:

This is an interesting twist on zoning.  On the one
hand, you've admitted that the current zoning is the
source of the "excess" value of the land, on the other
hand, you bemoan the more recent zoning (which is
basically what historic designation amounts to, a
zoning restriction) which does not allow demolition of
the building.  

Is zoning to be judged good or bad based only on the
incremental value it adds?  Or, are there other less
tangible things to consider?

As far as the city "doing" this to homeowners, every
time the zoning changes something is "done" to
homeowners.  In the last major re-zoning effort, many
areas were down-zoned from allowing multiple units to
single family.  This has an affect on the value for
owners, because multiple units will have greater
value.  If you live in a single dwelling, you may feel
cheated because you cannot convert to a triplex;
alternatively you may be happy about the long term
reduction of density.  These things are done in
accordance with what is assumed to be prudent planning
and public good at the time it is done.  Preserving
historic buildings is not very different.

David Piehl
Central
Owner of a home lucky enough to receive historic
designation during my ownership of it.

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