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Commission reviews legal limits, models for a historic preservation grant or rebate program
Summary
Commission staff warned the Arizona Constitution's gift clause limits use of town funds for private-property improvements; commissioners discussed pursuing external grants or a small rebate program modeled on a Coldwater, Michigan example and asked staff to contact SHPO for program options.
At the meeting the commission discussed whether a local preservation grant or rebate program could be used to encourage preservation work on private properties.
Ruth, the town staff member, told commissioners the Arizona Constitution's gift clause restricts spending town money on private property unless there is a proportional public benefit. "If you've been on planning commission or watched any of the meetings, we can't spend public dollars on private property unless there is a proportional public benefit," Ruth said, adding that grant funds from outside sources would be treated differently.
Staff described potential external funding sources, including a small-town-oriented grant program often associated with the National Trust (referenced in the meeting as the Paul Bruhn grant) and other SHPO-led programs. Ruth said the town can apply for some programs only if multiple communities participate or if the funding source supports multi-community projects; she committed to contacting SHPO to check the status of programs and for a list of communities with similar programs.
Ruth also described a rebate model from Coldwater, Michigan, in which property owners received a 10% rebate on approved facade improvements after meeting town standards and submitting receipts. "Once you're complete and we've approved it, then you submit your expenses, and we will rebate you 10%." She said similar rebate programs can be structured to require town approval of plans and to limit the program's scope in order to meet the proportional-benefit requirement under state rules.
Commissioners asked whether rebates or grants would apply to private business owners; staff said they could be structured for private property and business owners but legal constraints mean the town must design programs to provide a clear public benefit. Staff will reach out to SHPO and report back on which programs might fit Clarkdale's size and priorities.
