The historic preservation commission shall contact the property owner(s) within the area of the proposed historic overlay zone in order to inform them of the time, date and place of the historic overlay zone public hearing. Notice of the public hearing shall be given as follows:

Upon notification of the proposed rezoning to the property owners within a proposed historic overlay zone, no building permits will be issued nor will any use changes be granted until the town council approves or rejects the historic overlay zone designation proposal.

A quorum of the historic preservation commission shall conduct the hearing. All interested parties shall be given a reasonable opportunity to express their opinions regarding the proposed designation(s). The historic preservation commission may establish reasonable limits on the length of individual presentations. A record of the hearing shall be made. The historic preservation commission’s records shall include the name and address of each speaker; the organization or person represented, if any; whether or not the speaker is an owner or holder of some other interest in the affected property, or represents such owners or holder; and a summary of the relevant portions of each statement.

Within forty-five (45) days after the public hearing, the historic preservation commission shall act upon the proposed designation. The historic preservation commission may approve, reject or modify any proposal without instituting a new designation procedure. If the historic preservation commission fails to act within sixty (60) days, the designation shall be deemed to have been rejected.

If the historic preservation commission determines that the proposed historic overlay zone proposal warrants official designation, the proposal shall be transmitted to the town council. The town council may designate the recommended area as a historic overlay zone. If the town council fails to act on a proposal within ninety (90) days after receipt of the proposal, the designation procedure is terminated.

Upon approval of the designation of any area as a historic overlay zone, the zoning map shall be amended to show the historic overlay zone boundaries. The historic overlay zone designation shall be an overlay zone which overlaps the various zones established on the official zoning map.

Within fifteen (15) days after the recording of the historic overlay zone boundaries, all property owners within the overlay zone will be sent, by registered or certified mail, a letter explaining the reasons for the historic overlay zone designation, the historic overlay zone boundaries, and the design guidelines and development standards created by the designation.

The historic preservation commission shall recommend to the mayor and council, within forty-five (45) days after official designation of a historic overlay zone, design guidelines and development standards for reviewing changes in use, demolition, relocation and new construction, including preservation, reconstruction, rehabilitation and restoration, for a new historic overlay zone. In addition to the historic overlay zone design guidelines and development standards, the area within a historic overlay zone shall be subject to those requirements and regulations imposed by the existing zoning prior to historic overlay zone designation. Uses which may be permitted under the existing zoning determine what use or uses are inappropriate or inconsistent with the desired character of the historic overlay zone.

A historic overlay zone may be amended in the same manner as the original designation was made.