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August 1999
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August 1999
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mart turned to the Lommonwealth <br />ourt's decision in First Presbyteri- <br />rr. Church of York v. City Council <br />the Cite of York, 25 Pa. Cmwlth. <br />:. -4, ,360 A.2d 257 (1976) in analyz- <br />,ng Park Home's taking claim. The <br />-'()urt first restated the test set forth <br />:n �'ouk for determining whether a <br />.aktng has occurred. Under this <br />,cst, the court determined the key <br />Issue is "whether the refusal of the <br />,)crmit to demolish went so far as <br />to preclude the use of the Park <br />Home for any purpose for which it <br />was reasonably adapted." The court <br />then identified several factors con- <br />sidered in York for evaluating a <br />takings claim. These factors in- <br />clude: (1) whether the <br />sale of the property in <br />question is impractica- <br />ble; (2) whether com- <br />mercial rental could <br />provide a reasonable <br />return; and (3) whether <br />other potential uses of <br />the building were fore- <br />closed. <br />In applying these <br />factors to the case at <br />hand, the court determined that <br />Park Home had not met its burden <br />of proof. The court found that Park <br />Horne had not explored the option <br />of selling the building. In addition, <br />the court cited testimony by Park <br />Home's Board of Directors that the <br />organization was in "good financial <br />circumstances." While the court <br />observed that Park Home had em- <br />phasized "the poor structural condi- <br />tion of the building," it also noted <br />that all of the engineers and archi- <br />tects who toured the building had <br />found that it was "basically struc- <br />turally sound." The court also <br />1 found it significant that Park Home <br />had not indicated that it could not <br />continue its operation in the pres- <br />ent facility, despite the fact that <br />experts had found that reinforce- <br />ment beams and flooring were re- <br />quired to correct a sloping second <br />floor. <br />In describing the Board's testi- <br />mony, the court stated: <br />The Board's decision to demolish is <br />based on a "best use" theory. Quite <br />simply the Board believes that demo- <br />lition of the building is the most <br />economical, profitable choice for the <br />Park Home. It is apparent that little <br />consideration was given to the Park <br />Home's historical value when the <br />Board reviewed the options available <br />to it. Mr. Hoff admitted on cross- <br />examination that it was possible the <br />Park Home could carry <br />out its mandated purpose <br />(a home for aged people) <br />in another location and <br />market the Park Home <br />building, but this idea <br />was not explored by the <br />Board. <br />The court found <br />it significant <br />that Park Home <br />had not indicat- <br />ed that it could <br />not continue its <br />operation in the <br />present facility. <br />1 <br />The court sum- <br />marily rejected several <br />alternative arguments <br />that had been raised by <br />the Board in seeking to overturn <br />the City's decision to deny the <br />permit. The court determined that <br />the Pennsylvania statute and Wil- <br />liamsport ordinance were not void <br />for vagueness, finding that "the <br />statute and ordinance contain rea- <br />sonable standards to guide prospec- <br />tive conduct." The court also con- <br />cluded that the laws did not violate <br />a prohibition against retroactive <br />laws, observing that the historic <br />preservation laws did not prevent <br />Park Home from operating a home <br />for the aged, as mandated by its <br />corporate charter. <br />The court also readily dis- <br />missed the Board's claim that the <br />• <br />X_ <br />City Council's action in denying <br />the demolition permit was void for <br />failure of the HARB to comply with <br />specific procedural requirements. <br />Under the Williamsport ordinance, <br />if the Board decides to recommend <br />against granting a certificate of <br />appropriateness, it must identify <br />suggested changes that would he <br />consistent with the historical char- <br />acter of the district. If the owner <br />agrees to those changes, than the <br />Board must submit its advice in <br />writing to the Council. In the pres- <br />ent case, the HARB had merely <br />attached the minutes of its meeting <br />with the Board to its <br />recommendation to the <br />City Council. <br />The court rejected <br />the organization's pro- <br />cedural claim finding <br />that there had been <br />.,no harm or prejudice <br />to the applicant." The <br />court based its decision <br />on the fact that Park <br />Home had filed a Local <br />Agency Law Appeal <br />challenging the City <br />Council's denial of the <br />permit and did not ob- <br />ject to the procedures <br />employed by the HARB in making <br />its recommendation to the City <br />Council. <br />Lastly, the court found that the <br />City Council's action in denying <br />the demolition permit was not <br />"arbitrary and capricious" although <br />the City had permitted the demoli- <br />tion of other buildings within the <br />district. In rejecting Park Home's <br />argument on this issue, the court <br />stated: <br />Park Home's JR11 for a demolition <br />permit are individual to the Park <br />Home itself. The record does not <br />indicate the city acted in an arbitrary <br />or capricious manner in denying this <br />request. <br />Analysis. The court's ruling in <br />this case, upholding the denial of <br />an application for a demolition <br />permit by the City of Williamsport, <br />illustrates the significant burden of <br />proof that property owners must <br />meet in seeking to overturn a deci- <br />sion pursuant to a well -drafted <br />historic preservation ordinance. <br />Under Pennsylvania law, a property <br />owner seeking to char- <br />acterize such a deci- <br />sion as a taking must <br />establish that the <br />building may not be <br />used for any purpose <br />for which it was rea- <br />sonably adapted. Tes- <br />timony that demoli- <br />tion and new construc- <br />tion is preferable to <br />renovation is not suffi- <br />cient to support a tak- <br />ing claim where the <br />evidence establishes <br />that the building is <br />structurally sound, rehabilitation is <br />a feasible and economically viable <br />alternative, and no effort has been <br />made to sell the building. <br />It should also be noted that <br />United Artists Theater Circuit, Inc. <br />v. City of Philadelphia, at issue in <br />this case, has been reconsidered by <br />the Pennsylvania Supreme Court, <br />and a new decision issued. The <br />Pennsylvania Supreme Court ruled <br />unanimously on November 9, 1993, <br />that the designation of a building as <br />historic without the consent of the <br />property owner is not a "taking" <br />requiring just compensation. See <br />The decision <br />illustrates the <br />significant bur- <br />den of proof that <br />property owners <br />must meet in <br />seeking to over- <br />turn a decision <br />pursuant to a <br />well -drafted his- <br />toric preserva- <br />tion ordinance. <br />Obviously each circumstance is dif- <br />ferent and cannot be used as a stan- <br />dard. The reasons for denying the <br />
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