Historic commission leans to include contributing properties in tax-exemption options

The Denton Historic Landmark Commission spent the bulk of a meeting discussing whether the city’s historic tax-exemption program should be changed to include contributing properties within local districts, and directed staff to present options that do precisely that.

Staff reminded the commission that at a July 8, 2024 meeting the commission had directed staff not to expand eligibility to contributing properties and instead to focus on modifying the program for individually locally designated properties. Staff said it had since developed a list of district statistics: West Oak Area (78 contributing properties; staff had previously been directed to focus on 2 of those), Bell Avenue (29 contributing properties; focus on 2) and Oak Hickory (60 contributing properties; staff would focus on 20). Commissioners questioned whether limiting incentives only to locally designated properties created the right balance between encouraging designation and encouraging preservation.

Several commissioners argued the primary goal should be preservation — encouraging properly executed restoration and rehabilitation — while others emphasized designation as a separate policy goal that offers additional protections. Commissioners discussed a range of options that staff will bring back, including a tiered or sliding-scale incentive (for example, partial benefits for contributing properties and full benefits for locally designated properties), shorter or smaller entry-level incentives to attract lower-income owners or landlords, and targeted outreach or focus groups to build awareness. One commissioner summarized the preservation argument: "If the goal is preservation, then the more people that are incentivized to preserve, the better whether they're locally designated or not." The speaker was identified in the record as Commissioner Bishop.

Commissioners also raised implementation details and limits: the current tax-exemption program requires applicants to submit a certificate of appropriateness (COA) and/or building permit before applying for the exemption; staff noted the city does not have a dedicated code-enforcement officer for historic districts, which affects enforcement of standards when property owners perform work without prior approval. The commission noted existing restrictions already apply to contributing properties inside local historic districts even if a property is not receiving the separate tax exemption.

After extended discussion the commission chair and staff reported that the majority of commissioners present leaned toward asking staff to include contributing properties when preparing options on tax-exemption program changes. Staff said it would prepare a range of options for future meetings, including tiered incentives, shorter entry-level terms, and outreach plans; no formal ordinance or program change was adopted at the meeting.

Clarifying details: staff said the current program provides up to $10,000 every 10 years as an example of the existing incentive structure; staff also referenced the 2019 Historic Preservation Plan (recommendations 2.1 and 2.2) in framing the conversation. Staff will present policy options for further commission direction at a later meeting.