Post on 17-Jan-2016
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Historic Preservation as an Economic Development
ToolDr. Mary Ann Heidemann, Director
Graduate Program in Historic PreservationBall State University
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Preservation and Economic Development? Are you
Kidding?• Those preservationists
want to stop all new development, right?
• Those are the folks who stand in front of the bulldozer, right?
• Purpose of my ED Talk:• Dump your Historic
Notions Preservationist?
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Preservation is Actually aDevelopment Tool Kit
• Revitalize downtowns• Support entrepreneurs• Attract creative talent• Increase real estate
investment and profits• Create jobs • Incentivize
development
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PRESERVATION TOOL #1: THE MAIN STREET PROGRAM
Started by the National Trust for Historic Preservation in 1977
TOOLS OF THE TRADE
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Main Street Program In Indiana• Madison IN original pilot
community in 1977• IN one of largest Main
Street programs in US • 106 communities
enrolled• 19 nationally accredited• Had funding problems
during the meltdown, but• Still the most successful
downtown revitalization tool available to date
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Main Street is Built on Four Pillars• Organization
– Paid Manager– Committee Structure
• Promotion & Marketing– Positive Image
• Design– Improve physical space
• Economic Restructuring– Analyze business market– Suit today’s consumers
Wait, doesn’t that sound like an Economic Developer’s Job?
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Main Street Success to 2012• Dollars Reinvested: $55.7 Billion• Net gain in businesses: 109,664 • Net gain in jobs: 473,439 • Number of bldg. rehabs: 236,201 • Reinvestment Ratio: $18 to $1
Indiana Results in 2012• Private investment: $38.5 Million• Public investment: $16.6 Million• Businesses added: 161• Jobs created: 775• Building rehabs: 248
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PRESERVATION TOOL #2:SUPPORT ENTREPRENEURS
Small business is key to community economic health
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New Findings from the Trust’s
Preservation Green Lab
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Why do Entrepreneurs Benefit from Older, Smaller
Buildings?“Analysis of data from three major Americancities shows that areas with a mix of older,smaller buildings perform better than districts with larger, newer structureswhen tested against a range of economic,social, and environmental outcome measures.” – Green Lab, Older, Smaller, Better, 2014
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Study Findings onAdvantages of Older &
Smaller • 37% more jobs per
building sq. ft.• 2X women & minority
business owners• More local businesses
compared to chains• Lower median age• Day and night activity• More foot traffic
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PRESERVATION TOOL #3:ATTRACT CREATIVE TALENT
What does your local talent pool look like?
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Creative Trends In San Francisco:
Young tech-savvy professionals do not want to live in the outskirts near big suburban tech parks
They want the vitality of the older, more diverse center city neighborhoods
So Google busses them to work in a modern version of reverse commuting Artist’s Rendition of a Google Bus &
Protester Armed with a Fly Swatter
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Creative Class Trends HereOur businesses follow creative talentTalent is attracted to places with character
• Live/Work space• Mixed uses• Business incubators• Work from home• Active street life• Walkability• Diversity of
residents
Indy’s own Fountain Square Historic District
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PRESERVATION TOOL #4:INCENTIVIZING REAL ESTATE INVESTMENTS
What do you know about historic rehabilitation tax credits?
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Historic Rehab Tax Credits• Historic rehab tax credits
have been around for 35 yrs.• They can cover up to 20% of
eligible rehabilitation costs• Note: rehab creates more jobs
than new construction• Owners can increase their real
estate profit potential• Rehab activates vacant &
underutilized properties• Combine with other incentives
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PRESERVATION TOOL #5:WE DON’T WASTE A NICKEL
Preservation is applied, practical Green Development
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Preservation Captures Both Up Front and Operational
Savings• Lower purchase costs• Infrastructure savings• Transit in place• Existing neighborhood
services & amenities• Materials recycling• LEED energy retrofits• Community-based ROI
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Bottom Line:If you aren’t using preservation tools, you are leaving client and
community cash on the table
Sources of Assistance:
Indiana LandmarksIndiana Main Street Program
DNR Division of Historic PreservationBall State Historic Preservation Program
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Thanks for your Good Work!
Send questions or comments to:maheidemann@bsu.edu