Grant requirements for historic building demolition advanced

Lawmakers gave first-round approval Feb. 19 to a bill intended to preserve Nebraska’s historic buildings without hindering economic development.

Omaha Sen. Bob Andersen, sponsor of LB883, said he introduced the measure at the request of the Nebraska State Historical Society, which conducts historic preservation reviews for two state grant programs.

Currently, Andersen said, if a property is historic, it cannot be demolished with state funds even if it threatens public health and safety.

Although the demolition of a historic building still would be the “last resort” in most cases, he said, LB883 would allow certain grant funds to be used for that purpose as long as a city or village also provides a public benefit by documenting the property, erecting a historical marker or using other methods that commemorate the lost resource.

“LB883 seeks to protect historic property but ensures communities can continue to develop,” Andersen said.

The bill would allow the state Department of Economic Development to provide grants to assist in the demolition of historic buildings or districts under the Civic and Community Center Financing Act. Grant applications would have to document that the applicant and the State Historic Preservation Officer have agreed to preservation-based mitigation strategies.

LB883 also would update requirements for demolition grants to cities and villages under the Revitalize Rural Nebraska Grant Program, which is administered by the state Department of Water, Energy and Environment.

If the State Historic Preservation Officer has determined that a property to be demolished is listed or eligible to be listed on the National Register of Historic Places, an applicant would have to demonstrate that:

• the property has been deemed a substandard and abandoned commercial property by a certified building professional with the approval of the State Historic Preservation Officer; or
• the applicant and the State Historic Preservation Officer have agreed to preservation-based mitigation strategies.

Finally, LB883 would allow the rural grant program’s fund to be used to pay the costs incurred by the State Historic Preservation Officer in carrying out their duties under the new requirement.

The bill advanced to select file on a vote of 28-0.