In Palm Beach, the home buyer who chooses a historic house gets a piece of the past - and sometimes a tax break, too

This 1926 home designed by architect John Volk and restored by Smith Architectural Group was landmarked in 1991. Photo/Stephen B. Leek, courtesy of Presevation Society of Palm Beach

Picture a Palm Beach soiree of an era past - where hosts entertained al fresco on beautifully decorated loggias with guests spilling out into a stunning courtyard. It's likely there was a saltwater pool amid bubbling fountains and lush landscaping. The picture is not so very different today, as so many of Palm Beach's grand historic mansions are a physical testament to gracious living. And people today, especially those who love history, are attracted to houses with a past - and to what a house designed in the 1920's by, say, society architect Addison Mizner or Marion Sims Wyeth represents, says Palm Beach's Linda Olsson of Linda Olsson Inc., Realtor. "They apprentice the fine quality of building materials and workmanship of the past," says Olsson. "Often, they come to Palm Beach and already know they want a Mizner-designed or Wyeth house."

Attraction to historical houses not related to age or gender. Olsson - echoing other real estate professionals on the island - does find one common denominator, however. "Those clients appreciate the finer things in life and know that these old homes are irreplaceable," Olsson says. "It gives them peace of mind to know they are keeping a property intact for the next owners who will also appreciate the house. They feel they are the keepers for the moment and are maintaining a piece of art."

Olsson's listing, Casa Soleada - "House of the Sun" - at 840 S. Ocean Blvd., was designed by Wyeth. The Mediterranean-style house was landmarked by the Town of Palm Beach in 1996, sensitively renovated by Smith Architectural Group of Palm Beach in 2002 and was a stop on a walking tour sponsored this year by the Preservation Foundation of Palm Beach. "You don't really own it," homeowner Veronica Furlo said earlier this year about Casa Soleada. "You're just taking care of it for the next people when they move in. You're a steward, in a sense."

Carole Ruhlman of Sothebys International Realty's Palm Beach brokerage agrees with Olsson about the type of people who like historic homes. "There are people who have an appreciation for historic properties and 'Old World' details," Ruhlman says. : Ruhlman points to one of her former listing, a 1926 Wyeth-designed house at 120 Jungle Road, as an example of fine renovation. "It was built for the Pierpont Morgan family. It was not ladmarked, because it's been changed over the years," she says. But it has wonderful high pecky cypress ceilings and coffered and vaulted ceilings. The people who renovated it had a real appreciation for the bones of the house and its details. You can see that they enjoyed restoring it and brought it back the way it should be.

'Timeless Atmosphere'
In the same vein, Tara Pearl of Palm Beach Real Estate, Inc., sold an older home this year at 235 Dunbar Road. Its owner, Jill Curcio, had carried out a series of careful renovations. "One of the most difficult questions when buying historical property is how much can be altered to make comfortable for 21st century life without destroying charm and timeless atmosphere of its historical architecture," Pearl says.

When Curcio had purchased the home, it was in process of being gutted and renovated. Inspired by the vision of how the home could incorporate convenience without losing its historical appeal, Curcio shifted the direction of the developer's renovation goals, keeping home's elegant Mediterranean appeal while emphasizing architectural charms of Mediterranean-style colon: stately fireplaces and vaulted ceilings, Pearl explains. Whereas these three properties have been magnificently restored or appropriately renovated, others are waiting their turn. For example, Realtor Pamela Hoffpauer, president of Martha A. Gottfried, Inc., had listed a historical via Peruvian, designed by Howard Brougham Major. The house has not been landmarked and was in need of a loving hand when it was recently sold. "It has a beautiful courtyard and fireplaces," Hoffpauer says. "It's not a big home, but it will be interesting restored."

'Owners Must balance History, Livability'
Hoffpauer, like Olsson, finds that historic homes have a particular kind of allure.

"Some of these historic homes could never be replaced," Hoffpauer points out. "Fortunately, lots of people appreciate the beauty, details and quality of building materials such as pecky cypress and beautiful old tile. Others simply appreciate the history."

Tax Incentives: Realtors agree that potential buyers don't have to be history buffs to find historic properties attractive. Such properties can also look good from the investor's point of view. Not all older properties have been designated historic landmarks by the Town of Palm Beach. But there can be distinct financial advantages to owners who restore a property that has been certified by the Palm Beach Landmarks Commission. The goal of the town is to encourage homeowners to preserve their historic residences for future generations to enjoy.

"We are interested in the town being preserved," says Tim Frank, project coordinator for the Landmarks Commission." For that reason, we entice people to protect these structures" through municipal tax-abatement programs. So far, more than 240 Palm Beach properties, sites and vistas have been designated as landmarks. To be considered for landmark status, a home must meet conditions established by the U.S. Department of Interior's Parks Division. "Is it a historic site or has something historic happened there?" explains Tim Frank, project coordinator for the Landmarks Commission. "Is it associated with a person who has contributed historically on the local, state or national level? Or is it a specimen designed by an architect who influenced his age? Or is the design unique or use indigenous local materials that make it stand out?" The Landmarks Commission maintains a listing of noteworthy buildings, but a homeowner is not required to landmark his or her property, even if it's on the list. Last year, two properties applied for tax - abatement through the landmark program. Once designated, a property is afforded some legal protections, but that doesn't mean it can't be demolished, Frank says. "The owner must get permission from the commission and prove hardship, or maybe the reason to landmark no longer exists. Demolition is not prohibited, but it's not a right. You have to get a 'certificate of appropriateness' for that action." If an owner wants to landmark the property, he or she can go in two directions. Jane Day, preservation consultant for the Town of Palm Beach and president of Research Atlantica, a historic preservation consulting firm, explains that all homes - including those that have been renovated and those that are built anew - must go through the town's architectural review process. Property owners who want to carry out a renovation for landmarking must also get approval from the Landmarks Commission. "Review for landmarked properties is a two-tier process - one for those (buyers) going for tax abatement and one for those who are not," Day explains. "For tax abatement, there are higher standards. Normally, the commission just looks at the exterior, but if the owner announces that the renovation is a tax-abatement project, the commission must look at the interior as well. According to local ordinances, approval for tax abatement requires that the renovations (meet) the Department of Interior standards." There are real financial rewards to pursue landmark status for tax abatement, she says, but each case is different. "It depends on the property appraiser who reevaluates the property after the renovation completed," Day says.

She offers a general example not related to actual real estate prices on the island: "For example, if I have a $100,000 house and I put in $50,000 to renovate my property; its value could be raised to $150,000. That $50,000 could be abated for 10 years," she says, adding that the Palm Beach County School Board's portion of the taxes is not included in the abatement. There's another point for consideration related to the Federal Emergency Management Administration's flood-plain designation: "If a structure is below FEMA's (7-and-a-half-foot) flood level, no more than 50 percent of the market value of the structure may be spent on the renovations in a five year period," Realtor Olsson says. "If you want to do more than 50 percent, you have to bring the whole property up to code. She adds: "That's why people tear down and build new homes. But, if you choose to renovate a landmarked home, the town would disregard the fact that it's below flood level. You could do your full renovation." That's because the town wants to keep the flavor of Palm Beach so "it welcomes people who will not knock down a historic home," Olsson says. "Palm Beach does not want to become the new Boca.

"Controversies Arise: Sometimes, though, the process can get complicated. Consider the problems and public outcry that arose this summer over the unannounced demolition of Four Winds, a 1937 home at 1768 S. Ocean Blvd. in Palm Beach. The house was -built by Maurice Fatio for E.F. Hutton. Stephen Schwarzman of New York bought the landmarked house in June 2003 for $20.5 million. The Landmarks Preservation Commission approved the Four Winds application for restoration and expansion in March. But the plans were revised when the owners and architectural team determined the original structure was not strong enough to support a planned second-floor addition. Their solution was to demolish the original house and then rebuild it with modern materials - while keeping its exterior appearance the same as before. Even though those plans were approved by the town's building department in June and permits issued, the landmarks commission later complained that it had not been consulted. The house was demolished July 12, and the commission learned of the demolition July 21.

A special panel - called by the Town Council to investigate -did not hold Schwarzman, the town's staff or the commission at fault. However, the internal processes associated with renovating landmarked houses are being carefully reviewed. In a similar controversial case this summer, the School Board of Palm Beach County received the town's permission to demolish two 1923 Palm Beach Public School buildings and rebuild them to resemble the originals. They board argued that the buildings were not structurally sound and the Town Council reluctantly agreed. The buildings were demolished earlier this month. Whatever the controversies surrounding historic properties and their preservation or demolition, one thing seems clear: Many Palm Beach residents prize the island's architectural past and hope that enough buyers will be found who want to preserve historic homes rather than raze them to make way for new homes. "I think tax abatement is important," says Day, "but preserving the character of the town of Palm Beach which is why people want to buy in Palm Beach - that's just as important."

By Christine Davis, Marketing Writer

Friday, December 31, 2004 - Advertising Supplement to the Palm Beach Daily News

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