Measuring the Economic Benefits of Historic Preservation€¦ · Measuring the Economic Benefits of Historic Preservation 11:20 a.m.—12:30 p.m. Friday, April 22, 2005 Sturm College

Measuring the Economic Benefits of Historic Preservation

11:20 a.m.—12:30 p.m. Friday, April 22, 2005 Sturm College of Law

Moderator: Matt Goebel, Esq., AICP Vice President Clarion Associates Denver, Colorado Panelists: Kathleen Brooker President Historic Denver Denver, Colorado Nancy Kramer Executive Director Steamboat Springs Art Council Steamboat Springs, Colorado

THE ROCKY MOUNTAIN LAND USE INSTITUTE

CONCURRENT SESSION

1

Making the Economic Case for Historic Preservation:

Lessons from Denver and Steamboat Springs/ Routt County

C L A R I O NC L A R I O N

• Matt GoebelVice President, Clarion Associates

• Kathleen BrookerPresident, Historic Denver

• Nancy KramerExecutive Director, Steamboat Springs Arts Council

Speakers

Historic preservation adds value to the lives of all Colorado

residents.

Historic preservation also yields significant economic benefits.


• State Officials‒ Need to be convinced of the merits of existing and

potential policies and programs.

• Local Officials‒ Need a simple economic development model that

can be applied in their communities.‒ Need preservation examples as they face major

economic development challenges.

• Owners of Historic Properties‒ Need to be encouraged to invest in historic

structures, instead of demolish.

Who Needs to Hear the Message?


2001 Colorado Study

• THEME 1: Preservation supports economic development across Colorado‒ Rehabilitation of historic

properties‒ Heritage tourism

• THEME 2: Preservation benefits the owners and users of historic properties‒ Property values‒ Affordable housing


What’s New in 2005?

• Updated data on heritage tourism and building rehabilitation

• A property values case study in a commercial historic district (Fort Collins)

• Economic achievements of the new Colorado Main Street program

2


Rehabilitation of Historic Resources

• Incentives for Rehabilitation‒ State Historical Fund‒ Federal Rehabilitation Tax Credit‒ State Rehabilitation Tax Credit


Federal Tax Credit 1981-2004: $493.8MState Tax Credit 1991-2004: $ 48.9M SHF A&D projects and matching dollars 1993-2004: $611.5M

DIRECT IMPACT: $1,154.2M

(reduced for projects that used multiple incentives) $918.4M

INDIRECT IMPACT: $1,175.5 M

TOTAL IMPACT: $2,093.9M

Also included in this total are 28,966 jobsand $709.9 million in household earnings!

Summary of Economic Impacts from Rehabilitation Projects


Heritage Tourism


In 2003, heritage tourists in Colorado spent $1.5 billion in five major categories:

Trans-portation

17%

Eating & Drinking

23%

Recreation8%

Retail24%

Lodging28%

This $1.5 billion generated an additional $1.9 billion in related expenditures for a total of $3.4 billion.

Heritage Tourism


Heritage Tourism

• Heritage tourists are different than other Colorado tourists

‒ Spend more ($58 vs. $55)‒ Stay longer (5.3 nights vs. 5.1 nights) ‒ More likely to visit National and/or

State parks, to watch birds and wildlife, and to visit a museum

‒ Usually older and more likely to be retired

‒ 30% have incomes over $75,000 per year


Does local historic designation affect property values?

Property Values

3


Property Values

• 2001 Case Studies‒ 4 locally designated districts examined‒ 3 in Denver, 1 in Durango‒ All historic, single-family detached dwellings


Property Values

New Fort Collins Case Study


Property Values


Property Values

Key Findings in All Districts:

Local historic designation does not decrease property values.

Property values in the designated areas increased in value either more than, or the

same as, nearby undesignated areas.


Colorado Main Street

• Linking historic preservation and downtown economic development in smaller communities across Colorado.

ArvadaBerthoud

BrushCanon CityCentral City

CortezGreeley

GunnisonLake CityMontrose



• The Main Street Approach™:‒ Design‒ Organization‒ Promotion‒ Economic

Restructuring

4



• From 2001 to 2003: ‒ $570,806 for 52

façade rehabilitations

‒ $11,470,434 for 208 rehabilitation and new construction projects

‒ $9,509,956 for the purchase of 43 buildings




Conclusion

Historic preservation

makes Colorado a better

– and richer –place to live, work,

play, and visit!


• Matt GoebelVice President, Clarion Associates

• Kathleen BrookerPresident, Historic Denver

• Nancy KramerExecutive Director, Steamboat Springs Arts Council

Speakers

Building A Better Tool Box

Kathleen Brooker, PresidentHistoric Denver Inc.


The Downtown Threat: Demolition

5


The Opportunity: Reinvestment with Protection


The Approach

C L A R I O NC L A R I O N C L A R I O NC L A R I O N


The Results: A Chocolate Chip District


The Neighborhood Threat

Under Designated and Over Zoned

6

C L A R I O NC L A R I O NLogan Street Streetcar

Broadway & Colorado Ave, 1890

Platt Park: A Denver Story


Summary of Platt Park Characteristics

•• PrePre--WWII neighborhoodWWII neighborhood•• Diverse housing types and stylesDiverse housing types and styles•• Brick construction and front porchesBrick construction and front porches•• Detached garagesDetached garages•• Spacious back yardsSpacious back yards•• Mature trees, especially along Mature trees, especially along

streetsstreets


Styles: Grand to Modest


Front Yards


Detached GaragesDetached Garages


Historic Block Development Pattern

2525--30 ft30 ft

7


Breaking the Pattern

C L A R I O NC L A R I O NBroadwayBroadway

DowningDowning

LoganLogan

PearlPearl

II--2525

WashingtonWashington

Where Are Teardowns Occurring?

RR--2 Zone2 Zone

RR--1 Zone1 Zone


What Is Driving New Development?

••Proximity to downtown, light rail, IProximity to downtown, light rail, I--2525••Neighborhood amenities, characterNeighborhood amenities, character••Mature landscapingMature landscaping••Changing housing preferencesChanging housing preferences••RR--2 Zoning2 Zoning••Maximizing square footage allowedMaximizing square footage allowed••SpeculationSpeculation


What is Inhibiting Preservation?•Fear of Landmark Control

•Limited Access to State Historic Fund

•Over Zoning Relative to Neighborhood Identity


A Regulatory Tool: Quick Wins II

•• Establishes front and rear Establishes front and rear buildablebuildable zoneszones

•• Increases required open space from Increases required open space from 50% to 62.5%50% to 62.5%

•• Requires 60% of Open Space to be Requires 60% of Open Space to be in rear zonein rear zone

•• Tightens definitions of Open SpaceTightens definitions of Open Space•• Provides incentives for detached Provides incentives for detached

garages and front porchesgarages and front porches


What Quick Wins II Does Not Do:•• Address architectural characterAddress architectural character

‒‒ Orientation of front doorOrientation of front door‒‒ Front porchesFront porches‒‒ Building materialsBuilding materials‒‒ RooflinesRooflines‒‒ Massing and design qualityMassing and design quality

•• Protect trees in side and rearProtect trees in side and rear•• Change side setbacksChange side setbacks•• Stop negative impacts on Stop negative impacts on

infrastructureinfrastructure•• Change RChange R--2 use by right2 use by right

8


An Educational Tool:Historic Denver’s Urban Living Program

•Technical assistance

•Referral of preservation professionals

•Certified Historic Denver Home plaque program

•Educational programs and events


A Financial Tool: Historic Denver’s Easement Program

•Targets individual owners of National Register Properties

•Provides charitable deductions from IRS

•Protects historic buildings in perpetuity

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Documents

Measuring the Economic Benefits of Historic Preservation€¦ · Measuring the Economic Benefits of Historic Preservation 11:20 a.m.—12:30 p.m. Friday, April 22, 2005 Sturm College