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Placemaking and the Economics of Historic Preservation Institute for Quality Communities University of Oklahoma April 3,2013
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Placemaking and the Economics of Historic Preservation
Institute for Quality CommunitiesUniversity of Oklahoma
April 3,2013
The Values
Historic resources have cultural, educational, social, aesthetic and many other values.
The Values
But today historic preservationists are being asked to demonstrate economic value as well.
Areas of ImpactJobs
Property Values
Heritage Tourism
Environmental Impact
Social Impacts
Downtown Revitalization
Economic Competitiveness
#1 - Jobs
Federal Historic Tax Credit (1978-2011)• Spent = $19.2 billion • Jobs created =2,216,000• Cost per job = $8,868
Federal Stimulus Package (Feb. 2009-March 2011)
• Spent = $878 billion• Jobs created or saved = 3.6 million • Cost per job = $244,000
— Third Annual Report on the Economic Impact of the Federal Historic Credit (2012) — www.recovery.gov (2011)
The Federal Tax Credit:A Self-Funding Incentive (1978-2011)
Cost to Federal Government
Taxes to the Federal Government
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
Inflation Adjusted Dollars (Billions)
$24.4$19.2
#1 - Jobs
Automobile M
anufac
turing
Computer M
anufac
turing
Air Tran
sporta
tion
Poultry P
rocessi
ng
New Constr
uction
Historic
Rehab
ilitati
on
3.5 4
8.7 10.414.9
18.1Jobs created per $1 million of activity
GeorgiaHistoric preservation creates more jobs per $1 million of economic activity than does the same amount in other major industries.
— Good News in Tough Times: Historic Preservation and the Georgia Economy (2011)
Dubuque, Iowa (2001-2006)
Average annual growth rate for:
• Historic rehabilitation property values = 51%
• Value of neighboring historic properties = 9.7%
• All properties = 5%• Other properties in downtown
Dubuque = 3.7% (2000-2007)
– Iowa’s Historic Preservation and Cultural and Entertainment District Tax Credit Program Evaluation Study (2009)
#2 – Property Values
#2 – Property Values
Philadelphia, Pennsylvania
• Premium commanded by National Register historic district houses = 14.3%
• Premium commanded by local historic district houses = 22.5%
— The Economic Impact of Historic Preservation in Philadelphia (2010)
Louisville, Kentucky
• Properties in local historic districts were worth between $59,000 and $67,000 more than comparable properties not in historic districts.
• 2000-2007: Houses in local historic districts appreciated 21% more than the rest of the market.
– Historic Preservation’s Impact on Job Creation, Property Values, and Environmental Sustainability (2009)
#2 – Property Values
0
1
2
3
4
5
6
7
8
Foreclosures per 1000 Housing Units
Series1
Philadelphia
Analysis of:
Single Family Houses6 Historic Districts
10 Comparable Neighborhoods10/09 – 9/10
#3 – Heritage Tourism
International heritage visitors
• Stay longer, visit more places, and spend more per day than other tourists.
• 2.6 million more visited a historic place than went to an amusement park.
• 4.1 million more visited a historic place than went to the beach.
• 4x as many visited a historic place than went to a casino.
• For every international visitor who played golf, 14 visited a historic place.
- Profile of Overseas Travelers to the United States (2010)- Heritage Tourism Guidebook (2007)
#3 – Heritage Tourism
Georgia
Heritage tourism supports 117,000 jobs and $203,850,000 in salaries and wages.
– Good News in Tough Times: Historic Preservation and the Georgia Economy (2011)
#3 – Heritage Tourism
#3 – Heritage TourismCivil War Battlefields
Spending by visitors to 20 Civil War battlefields generated:• $21 million in state taxes • $11.7 million in local
government revenues
This amounts to: • $5.22 per visitor at the state
level • $2.92 to pay for local services
#3 – Heritage Tourism
– Blue, Gray, and Green: A Battlefield Benefits Guide for Community Leaders (2006)
Photo from National Park Service
#4 – Environmental ImpactHartford, Connecticut
Had 410 Asylum been razed instead of rehabilitated:• 615,777 gallons of gas in embodied energy
would have been thrown away.• 9,986 gallons of gasoline would have been
expended in demolition and hauling to the landfill.
• Its demolition would have generated waste equal to 21 days of trash from the city of Hartford.
• Debris would have filled 39 boxcars.• Landfill impact would have wiped out the
benefit of recycling 21,211,680 aluminum cans.
- Investment in Connecticut: The Economic Benefits of Historic Preservation (2011)
#4 – Environmental Impact
Preservation projects save 50 to 80% in infrastructure costs compared to new suburban development.— “Heritage Tax Credits: Maryland’s Own Stimulus to Renovate Buildings for Productive Use and Create Jobs, an $8.53 Return on Every State Dollar Invested”, The Abell Report (March 2009)
It takes 10 to 80 years of an energy efficient new building to make up for the negative climate change impacts of
construction
Building reuse almost always offers environmental savings over demolition and new construction
Office buildings built before 1930 use one third less energy per square foot than buildings built after 1991
Facadomy
Negative Economic ImpactNegative Environmental ImpactNot Historic Preservation
Rhode Island (2005)
The state’s historic preservation tax credit created 409 affordable housing units.
– Rhode Island Historic Preservation Investment Tax Credit Economic and Fiscal Impact Analysis (2005)
#5 – Social Impacts
Connecticut
95% of Federal Rehabilitation Tax Credit projects have taken place in neighborhoods with a concentration of households with a modest annual income.
– Investment in Connecticut: The Economic Benefits of Historic Preservation (2011)
#5 – Social Impacts
#5 – Social Impacts
75%
21% 4%
Median Household Income in Census Tracts with
Federal Historic Preservation Tax Incentive Projects
Less than $25,000 $25,000 to $49,999 More than $50,000
Connecticut
#6 – Downtown Revitalization
Main Street (National Trust for Historic Preservation)
Over the last 31 years the Main Street communities have seen:
• $55.7 Billion Invested in Physical Improvements
• 109,664 Net New Businesses• 473,439 Net New Jobs• 236,201 Building Rehabilitation
Projects• $2,394 Cost per Job Created• $18 to $1.00 Leverage of Public
Funds— National Main Street Center of the National Trust for Historic Preservation
Oklahoma
More than two decades of Main Street activity have created 24,437 jobs, equal to roughly 1.5% of the state’s entire non-farm workforce.
– Economic Impacts of Historic Preservation in Oklahoma (2008)
#6 – Downtown Revitalization
Iowa (1986-2012)
– Net New Businesses generated $43 Million in state sales tax last year – 48 times cost of state program
– Added net new jobs 25 of 26 years.
– Added net new businesses 26 out of 26 years
– Job and business growth outperformed both Iowa economy and US economy
– Getting Results: Main Street Iowa, 1986-2012 (2013)
#6 – Downtown Revitalization
#7 Economic Competitiveness
#7 Economic Competitiveness
Thank you!
Donovan RypkemaPlaceEconomics
1785 Massachusetts Avenue, NWWashington, DC 20036
