Richard F. Friedman
Neal & Leroy, LLC
Chicago, Illinois
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Historic significance
 Existing structure
 Site of. . .
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Architectural significance
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Masterwork
Crown Hall on IIT Campus – Ludwig Mies van der Rohe 1956
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Historic Site
Site of Mrs. O’Leary’s barn
Old Chicago Water Tower
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Ensemble
Royal Street, French Quarter, New Orleans
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Identify common heritage
Honor
 Innovation
 Beauty
 Accomplishment
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Tangible example of past
Environmental
Tourism
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International—UNESCO World Heritage Site
National—National Historic Landmark or
listed on National Register of Historic Places
State—listed or designated
Local—Locally designated landmark
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International—none.
National—limited: “take into account”
State—not used
Local—protection against change or
destruction
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It’s my property to do with as I please.
You’ve taken my property without just
compensation.
 Fifth Amendment takings clause
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It’s all subjective.
 Fifth and Fourteen Amendment due process
clauses
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It’s unfair because the burden falls on me.
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Elimination or reduction of economic
exploitation
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Elimination or reduction of economic
exploitation
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Additional governmental involvement in
private property
 Designation
 Review and permit process
 Must be open to the public (not!)
Madlener House
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No objective standard for designation or
review of demolition or modification
application.
Prentiss Women’s Hospital, Bertrand Goldberg, 1975
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No mutuality of benefit/burden.
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Mount Vernon—private purchase
U.S. v Gettysburg Ry. Co. U.S. (1896)—public use
Euclid v. Ambler, 272 U.S. 365 (1926)—zoning
French Quarter and other historic districts
National Hist. Pres. Act of 1966, 16 USC 461 et
seq.
 Illinois enabling act (65 ILCS 11-48.2-1 et seq.)
and Home Rule
 Penn Central Transp. Co. v. City of New York, 438
U.S. 104 (1978)
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Early days – private preservation
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George Washington’s estate, Mount Vernon, Virginia, purchased in 1858
by the Mount Vernon Ladies’ Association
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19th and early 20th Centuries – governmental
Civil War veterans return to Gettysburg battlefield
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Zoning – Euclid v. Ambler—U.S. Sup. Ct. 1926
Historic district protection—1930’s
▪ Constitutional amendment—Louisiana
▪ Legislation – Santa Fe, NM
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Urban renewal - -“With Heritage So Rich”
National Historic Preservation Act of 1966
1960’s – local preservation laws
Schiller (Garrick)
Theater
Dankmar Adler &
Louis Sullivan
1893-1960
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Landmarking is a proper gov. activity
Landmarking by itself is not a taking
Designation standards may be promulgated
Constitution does not guarantee max. return
No taking unless all benefit or return elim.
Taking is measured by what remains
Property may have value in use even if it does
not create income
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Constitution
State enabling act
Home Rule
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Local control: Enabling Act 65 ILCS 5/11-48.2-1 or
home rule
Commission is advisory only—corporate authorities
retain the power to designate landmarks or grant
permits or certificates of economic hardship
Members appointed
Full-time staff
Functions
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hearings
regulations
Enforcement
education
investigation
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Mayor
Council
Commission
Staff
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Building/demolition permits are reviewed by
landmark commission
Inconsistent remodeling is not permitted
Designation does not include interiors
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Private landmarks are not open to the public
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Certificate of appropriateness
Certificate of economic hardship
 Owner must prove no economic benefit or return
 Penn Central standard
 It is insufficient to show a mere reduction in value
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SHPO (State Historic Preservation Officer)
Recommends National Register listing
Certifies rehabilitation as historic
20 ILCS 3405/1 et seq.
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The quality of significance in American history, architecture, archeology,
engineering, and culture is present in districts, sites, buildings,
structures, and objects that possess integrity of location, design, setting,
materials, workmanship, feeling, and association and
 (a) that are associated with emade a significant contribution to the
broad patterns of our history; or events that have
 (b) that are associated with the lives of persons significant in our past;
or
 (c) that embody the distinctive characteristics of a type, period, or
method of construction, or that represent the work of a master, or
that possess high artistic values, or that represent a significant and
distinguishable entity whose components may lack individual
distinction; or
 (d) that have yielded, or may be likely to yield, information important
in prehistory or history.
[more than 50 years old unless of extraordinary importance]
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Applies only to federal “undertaking”
Protects properties listed and eligible for
listing on the National Register
Comment by ACHP and interested parties
Head of agency must take impact of federal
project into account—then may proceed
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The Secretary may approve a transportation
program or project . . .requiring the use of. . .
land of an historic site of national, State, or local
significance (as determined by Federal, State, or
local officials having jurisdiction over the park,
area, refuge, or site) only if—
 (1) there is no prudent and feasible alternative to using
that land; and
 (2) the program or project includes all possible
planning to minimize harm to the . . .historic site
resulting from the use.
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Certificate of appropriateness
Certificate of economic hardship
Challenge to original designation standards
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Deductible as charitable donation
Transfer of right to modify or demolish
protected element—permanent restriction
 National Register or local landmark district
 Real Property Conservation Rights Act, 765 ILCS
120/0.01 et seq.
 Appraisal and other substantiation required
 Measured by loss of development potential or
market value
 Code Sec. 170(h) and Reg. Sec. 1.170A-14
 NPSbrochurehttp://www.cr.nps.gov/hps/tps/tax/
download/easements_2010.pdf
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National Register or local historic district
Tax credit = 20% of rehab costs
Rehab must be certified as historic
Credits may sold to provide immediate funds
Commercial, industrial or residential rehab
Must be for-profit
Minimum investment of 100% of adjusted basis
in improvement
 Code Sec. 47 and Regs.
 Brochure:http://www.nps.gov/history/hps/tps/ta
x/download/HPTI_brochure.pdf
 Limited state analog (not yet Illinois)
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Not a landmark or listed on National Register
Tax credit = 10% of rehab costs
Rehab need not be certified as historic but
must retain historic walls
Credits may sold to provide immediate funds
Residential rehab not eligible
Pre-1936 buildings only
Minimum investment of 100% of adjusted
basis in improvement
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Single-family up to 6-unit (owner-occupied)
National Register/local designation or district
Eight-year assessment freeze with four-year
kick up
Certified rehab
Must invest 25%
of market value
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Class L
Available to Class 3, 4, or 5a or 5b
(commercial)
Nat. Reg. property or local dist.
Approved by City Council
Tax rate reduced 60% for 10 years
Rehab must be certified by IHPA
Investment = 50% of assessed
value of improvement
Chicago Board of Trade
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Fee waivers
Grants
Advice
Zoning bonus—Adopt-a-Landmark
TIF and other development assistance
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Richard F. Friedman
attorney at law
203 N. LaSalle St. Suite 2300
Chicago, IL 60601
312 641-7144
Chicago Landmark Commission
33 N. LaSalle St.
Chicago, IL 60602
312 744-3200
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