Jefferson City residents, city staff and council members discussed the potential local historic district for the East McCarty and School streets area Wednesday night.
The Central East Side Neighborhood Plan, adopted by the city in 2006, suggests city officials turn the area bordered by East McCarty, Lafayette, East Miller and Marshall streets into a green space along Wears Creek and in the 100-year floodplain. Several residents, however, have since moved into homes in that area and are trying to fix them up.
Residents and activists are working toward creating a local historic district to protect this area from demolition, as well as encourage revitalization in the floodplain area.
The local historic district application encompasses 27 houses, including structures in the 600 block of East McCarty Street, all of School Street, 400 block of Lafayette Street, three houses on the east side of Lafayette Street and 500 Lafayette St.
Jefferson City does not currently have a local historic district.
If the homes within the area were deemed historic, FEMA would loosen some of its floodplain regulations involving residences in floodplains, local historian Jane Beetem said.
One of the main regulations it would lift is FEMA's substantial improvement rule, she said. Under this rule, property owners can't make improvements greater than 50 percent of the building's value.
Property owners could also receive subsidized flood insurance, Beetem added. After FEMA redrew the floodplain lines in 2012, it stopped subsidizing flood insurance. Beetem said if homes in floodplains are declared historic, property owners could receive subsidized flood insurance.
City officials told the News Tribune last month professional planners discourage redeveloping homes in a floodplain.
Part of the local historic district application includes design guidelines for the buildings located in the district. The proposed guidelines focus on maintaining the historic atmosphere of the buildings.
"One of the important things property owners need to realize is that it is placing a restriction on the property in the form of these design requirements," Jefferson City Senior Planner Eric Barron said.
He added if property owners applied for building permits within that district, the Jefferson City Historic Preservation Commission would have to review the permits before they could be issued.
"So, there is a fairly high-level of restriction in terms of regulations being placed on the property," he said.
Tony Smith, who lives on East McCarty Street, said while residents may think the design guidelines are restrictive, they will help preserve the historic character of the neighborhood.
"If you don't have a sense of history, if you don't maintain it it's just hard to have character," he said. "The history behind the city is what makes it different. If we take all the historic parts of Jefferson City out you're going to lose a lot of the history of this town and character and why people appreciate coming here."
Beetem said property owners would be required to minimize flooding risks like moving certain appliances above the flood base level.
To create a local historic district, Beetem needs 75 percent of signatures from property owners in the potential district. She said she thought it was "achievable but would take a lot of work."
One problem residents face is getting notarized signatures from the city and Jefferson City Parks, Recreation and Forestry Department. The city owns 408 Lafayette St., while the Parks department owns 410 Lafayette St., 602 and 606 E. McCarty St. and 623 School St., according to Jayme Abbott, city neighborhood services manager.
Jenny Smith, who lives on East McCarty Street, said she was told the city would not sign for the local historic district. When residents asked who from the Parks department would sign for the department's properties, city staff said they needed to talk to the city's legal department.
The house at 408 Lafayette St. was destined for demolition, but the City Council approved a demolition moratorium for the East McCarty, Lafayette and School streets area in March. The council extended the moratorium in June and again in September.
The extension deadline is Nov. 17.
The city invested almost $80,000 to rehabilitate 408 Lafayette St. after it purchased the property in 2009 with federal funds from the Neighborhood Stabilization Program.
The property was not in a floodplain when the city purchased it and began rehabbing it. The city invested $78,000-80,000 in the property, said Sonny Sanders, director of the Jefferson City Department of Planning and Protective Services.
After FEMA redrew the floodplain lines in 2012, the property was placed in the 100-year floodplain. The city can't use federal funds on properties in the floodplain, Sanders said last month.
Last year, the state and HUD announced they were shutting down the Neighborhood Stabilization Program and entities had to close out the projects or remove federal ties. The city planned to demolish 408 Lafayette St. to finish the project.
Abbott anticipates receiving final instructions on terminating Neighborhood Stabilization Program projects this month.
If the city doesn't close out the project, it could have to pay back the federal funds.
The city could sell the property, but currently the house would have to follow FEMA's 50-percent threshold substantial improvement rule because it is not deemed historic. City staff estimated the cost to rehabilitate 408 Lafayette St. would exceed that threshold.
Smith said she would still like the city and Parks department to sell the five properties, because residents may want to rehabilitate the homes.
Beetem will give the City Council an update on the local historic district Nov. 20 and may request another moratorium extension if she needs more time to collect notarized signatures.
If the council allows Beetem to continue with the designation, the application would go to the Historic Preservation Commission for approval. The council would have the final say.
Abbott said since this would be the first local historic district, the commission could take several meetings to review the application.
If the local historic district is denied and the city proceeds with demolition, the Smiths and Beetem said they are worried the vacant lots will deter possible homeowners.
"We're worried there will be a toothless appearance - two houses, then a lot; two houses, then a lot," Beetem said. "It's going to discourage revitalization."
Sanders said last month the city would not force property owners out of their homes if demolition did proceed.
Beetem said while creating a local historic district is a long, difficult process, residents believe it is worth it.
"This is a little new to all of us," Beetem said. "We're kind of feeling our way through it. It's not an easy process and it's not one really anyone has done, but we believe it will accomplish all the goals for that neighborhood, which is why we're putting in the effort."