Archive of Prominent Section 106 Cases:
October 1999
New Jersey: Rehabilitation of the Congress Hall Hotel (Cape May)
(Latest update)
Agency: City of Cape May (recipient of Department of Housing and Urban Development funds)
Criteria for Council Involvement:
- Rehabilitation of the Congress Hall Hotel and construction of a new addition could result in adverse effects to the Cape May National Historic Landmark District (Criterion 1).
- There is widespread public interest within the community, centering on disputes among the developer, adjacent property owners, and local preservationists (Criterion 3).
Recent Developments
In August 1999, the consulting parties met in Cape May to discuss the draft Programmatic Agreement (PA) developed by the city for the rehabilitation of the Congress Hall Hotel. Subsequent comments have raised both procedural and substantive issues. Opponents of the project question the propriety of executing a PA that provides for later review of design plans for the proposed addition.
The National Historic Landmark Initiative of the National Park Service (NPS) expressed a number of concerns, notably regarding specific rehabilitation treatments that are proposed, possible encroachment on the lawn by increased parking, and increased traffic within the National Historic Landmark (NHL) District. NPS also indicated that implementation of the undertaking could diminish the integrity of Congress Hall and the district.
The Council believes a PA is appropriate since investment in this major property within the historic district is critical, the conceptual design plans appear generally acceptable, and delays could jeopardize project funding. The Council is currently working to revise the PA provisions to ensure that all rehabilitation and new construction activities adhere to The Secretary of Interior’s Standards for Rehabilitation and that parking is properly handled on the site.
Background
In fall 1998, Cape May received grant and loan funds from the U.S. Department of Housing and Urban Development to assist with the rehabilitation of Congress Hall Hotel and its annex, contributing buildings within the Cape May NHL District. The proposed rehabilitation would occur in two phases: rehabilitation of the hotel and grounds, followed by construction of an addition to the existing annex for use as a conference hall. The estimated cost of the undertaking, which includes the use of Federal historic preservation tax credits, is $20 million.
The City of Cape May in its entirety was listed in the National Register of Historic Places in 1970. The Secretary of the Interior designated it an NHL in 1976. Congress Hall, originally constructed in the mid-19th century, was reconstructed at the turn of the century following a fire. The hotel is a key contributing building within the NHL district because of its historic associations, siting, imposing scale, and relationship to the shoreline.
In order to qualify for the Federal tax credits, the rehabilitation must be carried out in conformance with the approaches recommended in the Secretary’s Standards. Under the Council’s regulations, consistency with the Secretary's Standards means that the rehabilitation will not have an adverse effect, and the city determined that this would be the case for the first phase of this project.
However, the adjacent property owners and the Friends of Congress Hall, an organization created to fight this project, are vehemently opposed to the developer’s plans to accommodate hotel and retail parking, fearing encroachment on the property’s lawn. There are also local concerns that the proposed conference center addition will alter the character of the hotel and the landmark district.
Under Section 106, the Council cannot segment its review and must consider the project in its entirety. Since aspects of the rehabilitation project and the proposed addition could diminish the integrity of the hotel and surrounding area, the Council determined that the project has the potential to adversely affect the landmark district.
Policy Highlights
The integrity of the Cape May Historic District, like many other historic districts, is in fragile balance. Rehabilitation and economic stability struggle against deterioration and disinvestment. While this project has the potential to be a very positive influence on the health of the district, Section 106 consultation will have to carefully consider the project’s immediate and long-term effects to make sure that it will not compromise the district’s integrity.
Staff contact: Charlene Dwin Vaughn
July 1999 report on this case
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