In 2001, the owner purchased the former Italian Embassy. After architects advised that the property was eligible for designation as an historic landmark, the owner apparently met with the Historic Preservation Officer, Maloney, to discuss plans to develop high-end condominiums. After September 11, 2001, the plans were put on hold. In 2004, the owner met with Maloney to discuss a new plan. Maloney expressed concern about the impact of a proposed 90-foot tower and about the amount of demolition proposed. In 2005, the owner obtained a permit to subdivide for sale as 79 condominium units, with the approval of the Historic Preservation Review Board (HPRB). The Department of Regulatory and Consumer Affairs (DRCA) issued permits for construction staging and sidewalk usage.
After the permits issued, the Historic Preservation Office (HPO) filed an application for designation as a historic landmark. The DCRA nonetheless issued permits for excavation, sheeting, shoring, and new construction. The HRPB designated the property and the HPO asked the DCRA to void the permits. The code requires historic preservation review prior to permit issuance, if a property has been designated. The owner appealed to the Mayor’s Agent, who voided the permits. The court affirmed.
The code does not bar the HPRB or the Mayor’s Agent from reviewing applications for permits that were pending at the time of designation and defines “historic landmark” as including a building for which an application for designation is pending. Rejecting arguments of laches and estoppel, the court noted that those doctrines are narrowly applied with respect to governmental actions and that the authority of the Mayor’s Agent is limited to reviewing designations under the standards of the code and does not extend to balancing interests or questioning the timing of the application. The demolition of a significant portion of a historic property is inconsistent with the goals of historic preservation and the project does not have “special merit,” so it was not entitled to exemption from the requirements of the law.
The court also rejected a claim that the decision resulted in unreasonable economic hardship that would amount to a taking, noting that there was no evidence that the property lost any economic use. The owner remains able to subdivide and need only propose a design that responds to concerns raised by the HPRB. The owner knew of the risks and did not have reasonable investment-backed expectations of developing the property in a way that would have a significant impact on its historic features.
Embassy Real Estate Holdings, LLC v. District of Columbia Mayor’s Agent for Historic Preservation, 2008 WL 728943(D.C. Ct. App. 3/20/2008).
The opinion can be accessed at: http://www.plol.org/Pages/Login.aspx?d=l0Dnsocku7nGuuiaJPc9ag%3d%3d&l=Cases
Thanks to Lora Lucero, Esq. editor of APA’s Planning and Environmental Law (PEL) for sharing this abstract. For more information on PEL see, http://www.planning.org/PEL/index.htm