New Jersey: Rehabilitation of the Congress Hall Hotel, Cape May
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
On October 29, 1999, a Programmatic Agreement (PA) for the Congress Hall rehabilitation project was executed between the City of Cape May, the New Jersey State Historic Preservation Office, Congress Hall Partners (the project developer), and the Council.
Despite the ongoing opposition by adjacent property owners and local preservationists, the Council signed the PA after concluding that the proposed project is critical to the continued preservation of this prominent building and is a major component in stabilization of the Cape May National Historic Landmark (NHL) Historic District.
The PA requires the developer to implement both phases of the undertaking—rehabilitation and new construction—in accordance with The Secretary of Interior’s Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings (Standards). Design criteria are outlined to assist in the development of preliminary plans for the Convention/Conference Center addition.
In addition, the mitigation plan requires the developer to operate with a reduced number of parking spaces once the new addition is completed. Since parking was a contentious issue during consultation, the PA includes provisions to minimize visual and audible impacts to adjacent properties and address long-term parking problems within the NHL District. A preservation architect will be employed by the developer to oversee construction activities, and ensure that the undertaking adheres to the Standards.
In December 1999, opponents of the project filed a lawsuit against the signatories to the PA. The suit alleges that the Council erred procedurally by executing a PA rather than an Memorandum of Agreement since plans for the new addition were available for review. The suit also maintains that the PA presumed parking requirements that exceed what is legally authorized. The Council is consulting with the Assistant U.S. Attorney’s office to file an answer to this complaint.
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 Standards. Under the Council’s regulations, consistency with the 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 as a whole. 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. In August 1999, the consulting parties initiated discussions on a draft PA developed by the city to address the adverse effects.
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 improve the health of the district,
Section 106 consultation had to carefully consider the project’s immediate and long-term effects to make sure that it would not compromise the district’s integrity.
Staff contact: Charlene Vaughn
October 1999 report on this case
Return to top of page
