This document discusses the economic benefits of heritage conservation in Auckland, New Zealand. It notes that heritage conservation contributes directly and indirectly to the economy by creating jobs, increasing property values and tourism revenue. Historic rehabilitation creates more jobs per dollar invested than other industries like automobile manufacturing or construction. Heritage tourism generates billions annually for economies like those of Florida, Arkansas and Pennsylvania by attracting visitors who spend more than other tourists.

1. Heritage
Conserva.on and
the Economic
Benefits to
Auckland
Auckland,
New
Zealand
March
10,
2015
Donovan
Rypkema
Heritage
Strategies
InternaDonal

5. Economics
and
Heritage
Know
what
we’ve
got
Heritage
as
a
Public
Good
Heritage
Economic
Benefits
Heritage
and
Good
Urbanism
Heritage
Environmental
Benefits
Need
for
IncenDves
InternaDonal
CompeDDveness
InternaDonal
APenDon

6. Know
what
we’ve
got

7. IdenDfy
Research
Field
Surveys
Protect
Heritage
Districts
Individual
Landmarking
Enhance
IncenDves
Priority
for
Use

9. Field
Work
• Use
“Local
Data”
smartphone-­‐based
survey
system
• Gather
limited
informaDon
on
neighborhood
• Gather
limited
informaDon
on
individual
properDes

11.
Character
Quality
CondiDon

13. Heritage
as
a
Public
Good

14. Cultural
Value
AestheDc
Value
Social
Value
Symbolic
Value
Educa-­‐
Donal
Value
Environ-­‐
mental
Value
Heritage
has
mulDple
values

15. Beneficiaries
of
Heritage
ConservaDon

16. The owner/ developer/
investor in a heritage
building is (hopefully)
crea.ng economic
value for herself. But at
the same .me is
crea.ng a public value
for which she is not the
primary beneficiary.

17. Heritage
Economic
Benefits

18. Two Requirements to receive full
economic benefit of heritage…
1.
Thinking
beyond
the
monument
2.
Commitment
to
adapDve
reuse

19. Heritage conserva.on contributes to the economy
Directly
Indirectly
FuncDonally
By
providing
context

21. Jobs in Delaware
Per $1 Million of output

22. Household Income in Delaware
Per $1 Million of output

23. In
Georgia,
$1,000,000
in
output
from
Various
Industries
means……
Jobs
Salary
&
Wages
Automobile
Manufacturing
3.5
$245,000
Computer
Manufacturing
4.0
$255,000
Air
Transporta?on
8.7
$476,000
Poultry
Processing
10.4
$426,000
New
Construc?on
14.9
$616,000
Rehabilita?ng
Historic
Buildings
18.1
$750,000

25. House Price Appreciation Over Time
(Indexed, 1980 = 100)
Homes
in
both
local
and
na0onal
historic
districts
appreciated
in
value
at
a
higher
rate
than
houses
outside
historic
districts

26. Homes
in
local
historic
districts
enjoy
an
immediate
2
percent
increase
in
values
rela0ve
to
the
city
average,
once
local
designa0on
has
taken
place;
and
therea<er,
they
appreciate
at
an
annual
rate
that
is
1
percent
higher
than
the
city
average.

27. 0
20
40
60
80
100
120
Not
in
Historic
Distrcit
In
NaDonal
Register
District
In
Local
District
Base
Value
Historic
District
Premium
14.3%
22.5%

28. 0
50
100
150
200
250
300
350
400
Rest
of
Savannah
Cuyler-­‐Brownsville
Mid-­‐City
Savannah
HD
Victorian
Value
Change
1999
-­‐
2014
Savannah
Local
Historic
Districts
1999
2014

29. 0
50
100
150
200
250
300
350
400
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Real
Estate
Values
in
Up
Years
Historic
Districts
Rest
of
Savannah

30. 40
50
60
70
80
90
100
110
120
2008
2009
2010
2011
2012
2013
2014
Real
Estate
Values
in
Down
Years
Historic
Districts
Rest
of
Savannah

31. 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
City
of
Raleigh
Local
Historic
Districts
National
Register
Districts
Value
Change
2000
-­‐
2008

33. Single Family Foreclosures
Philadelphia

35. 0
1
2
3
4
5
6
7
8
Foreclosures
per
1000
Housing
Units
Historic
Districts
Comparable
Neighborhoods
Philadelphia
Analysis of:
Single Family Houses
6 Historic Districts
10 Comparable
Neighborhoods
10/09 – 9/10

37. 0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Salt
Lake
City
Provo
Logan
Ogden
Park
City
Single
Family
Foreclosure
Rates
2008-­‐2012
Foreclosure
Rate
for
City
Foreclosure
Rate
for
Historic
Districts

38. $0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
All
Price
Ranges
-­‐
Local
Historic
Districts
Salt
Lake
City
Average
Value
2012

39. $0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
All
Price
Ranges
-­‐
Na?onal
Register
Districts
Average
Value
2012

41. 58.1%
47.3%
41.9%
52.7%
OVERNIGHT VISITORS DAY VISITORS
Share of Heritage Visitors in San Antonio
Heritage Visitors Non-Heritage Visitors

42. $0
$10
$20
$30
$40
$50
$60
Lodging Transportation
within San
Antonio
Food & beverage Retail Recreation
Per Person Per Trip
Overnight Visitors to San Antonio
Heritage Visitors Other Visitors

43. 0
2000
4000
6000
8000
10000
12000
14000
16000
Lodging Transportation
within San
Antonio
Food & beverage Retail Recreation
Jobs from San Antonio Heritage Tourism
Direct Indirect/Induced

44. Heritage
tourism
in
the
Philadelphia
5-­‐county
area
contributes
over
$3
billion
in
total
output,
supporDng
over
45,000
jobs
and
$975
million
in
earnings,
within
the
Commonwealth
of
Pennsylvania
each
year.

45. 16%
of
Arkansas
Tourists
are
Heritage
Tourists
• But
they
spend
30%
more
than
other
visitors
• More
likely
to
be
out-­‐of-­‐state
visitors
Heritage
Tourism
generates
$891
Million/
year
• Supports
21,552
Jobs
• Adds
$319
Million
in
income
• Generates
$74
million
in
tax
revenues

46. .
Heritage
tourists
to
Florida
in
2007
spent
an
es0mated
$4.13
billion,
and
46.7%
of
all
U.S.
visitors
to
Florida
reported
visi0ng
an
historical
site
during
their
stay

47. Hotel Room Nights
Cultural
Tourists
Others

48. Cultural
Visitors
Other
Visitors
0%
10%
20%
30%
40%
50%
Visited 2 or More States
Cultural Visitors Other Visitors

49. Cultural
Visitors
Other
Visitors
$1,300
$1,400
$1,500
$1,600
$1,700
Per Visitor US Expenditure
Cultural Visitors Other Visitors

50. +470,000 Visitors

51. +785,000 Visitors

54. Less
than
7%
of
Heritage
Tourism
Dollars
are
spent
at
the
Heritage
Sites
that
aPracted
them.

55. Heritage
and
Good
Urbanism

56. 0 20 40 60 80 100
Main/Military Plaza
Alamo Plaza
Tobin Hill
Cattleman Square
Lavaca
King William
St. Paul Square
Fulton
Average of Historic
Dignowity Hill
Monte Vista
Monticello Park
Government Hill
Olmos Park Terrace
River Road
City of San Antonio
Mission
Walk Scores for San Antonio
Historic Districts

57.
Average
Walk
Score
Designa0on
Raleigh
29
Car-­‐dependent
Local
historic
districts
82
Very
walkable
NaDonal
Register
historic
districts
64
Somewhat
walkable
All
historic
districts
73
Very
walkable
Walkability

58. 0% 5% 10% 15% 20% 25% 30% 35% 40%
Historic Districts
San Antonio
Commute Time Less than 15 Minutes

59. 0
20
40
60
80
100
River
Road
St.
Paul
Square
Alamo
Plaza
Dignowity
Hill
Average
of
Historic
Monte
Vista
Fulton
Government
Hill
City
of
San
Antonio
Bike
Scores
in
San
Antonio
Historic
Districts

60. 0 5000 10000 15000 20000 25000
Keystone Park
Fulton
Main/Military Plaza
Cattleman Square
Tobin Hill
Olmos Park Terrace
Monticello Park
Lavaca
Monte Vista
Dignowity Hill
River Road
Government Hill
King William
City of San Antonio
Mission
Density
(Residents/Square Mile)

61. The
Tale
of
Two
Neighborhoods
Oakwood
Reedham
Oaks/
Wyndham
Popula?on
1664
507
Size
(acres)
114.5
114.0
Housing
Units
794
127
Average
Year
of
Construc?on
1925
1992
Average
Size
of
House
(square
feet)
2473
3515
Average
Value
$315,004
$524,077
Taxes
per
Unit
$2,887
$4,805
Popula?on
per
acre
14.5
4.4
Square
feet
of
Road
per
Unit
1045
2209
Taxes
per
acre
$22,022
$5,351
Water/Sewer
Line
Replacement
Cost
per
Unit
$8,811
$24,781
Annual
Property
Taxes
$2,292,539
$610,068

62. Rela0vely
high
intensity
development
can
be
achieved
within
constraints
posed
by
the
height,
form
and
texture
of
tradi0onal
communi0es
as
is
demonstrated
in
places
such
as
Georgetown
and
Alexandria.

63. Good
Urbanism
Heritage
ConservaDon
Affordable
Housing
Small
Business
IncubaDon
Density
Public
TransportaDon

64. Small Business Reali.es
• 97%
of
NZ
business
are
fewer
than
20
people
• 96%
of
them
are
independent
businesses
• They
account
for
28%
of
GDP
and
31%
of
jobs
• In
2012
they
were
responsible
for
41%
of
new
jobs
• 23%
of
them
are
exporDng
• You
cannot
build
new
and
rent
cheap
• For
most
small
businesses
the
share
of
revenue
that
goes
for
rent
and
that
goes
for
profit
are
about
the
same
number
• A
huge
contribuDon
of
older
and
historic
buildings
is
their
role
as
natural
incubators
of
small
business

65. Historic
Buildings
46%
Older
Buildings
22%
New
Construc?on
32%
Loca?on
of
New
Business
in
Downtown
Raleigh
-­‐
2013
Historic
Buildings
Older
Buildings
New
ConstrucDon

66. 0%
10%
20%
30%
40%
50%
60%
70%
Close
to
shops,
restaurants
&
offices
Shorter
commute
but
smaller
home
Available
public
transit
Mix
of
homes
Mix
of
incomes
Preferences
of
Those
Planning
to
Buy
within
5
years

67. Heritage
Environmental
Benefits

68. It
takes
10
to
80
years
of
an
energy
efficient
new
building
to
make
up
for
the
nega0ve
climate
change
impacts
of
construc0on
Building
reuse
almost
always
offers
environmental
savings
over
demoli0on
and
new
construc0on

69. Environmental
Impact
of
RehabilitaDng
50,000
s.f.
Warehouse
in
Maryland
20
–
40%
reducDon
in
Vehicle
Miles
Traveled
(VMTs)
ReducDon
of
travel
related
CO₂
Emissions
by
92
–
123
Metric
Tons
CO₂
“saved”
relaDve
to
suburban
construcDon
=
18,700
to
22,000
gallons
of
gasoline
Embodied
energy
retained
55,000
MBTU
Greenfield
land
preserved
5.2
acres
Less
construcDon
debris
in
landfills
2500
Tons
Infra-­‐
structure
invest-­‐
ment
“saved”
$500,000
to
$800,000

70. Preserva0on
projects
save
50
to
80
percent
in
infrastructure
costs
compared
to
new
suburban
development.

71. 0
50
100
150
200
250
300
Pre
1930
1931-­‐1950
1951-­‐1970
1971-­‐1990
Post
1990
Median
kBTU/sf

72. Material
Flows

73. Material
Flows
Rehabilita?on
47.3
Tons
Demoli?on
and
Infill
351.8
Tons
Suburban
Construc?on
182.4
Tons

74. You
cannot
truly
be
an
environmentalist
without
having
heritage
conservaDon
as
the
core
of
your
agenda.

75. Need
for
IncenDves

76. COST
VALUE
When
Value
Exceeds
Cost
Capital
will
flow
quickly
to
the
opportunity
The Cost/Value Relationship

77. Development
Incentives
COST
VALUE
GAP
The Cost/Value Relationship

78. Partial Payment
for Benefits of
Heritage that
accrue to the
public rather
than the
property owner
COST
VALUE
GAP
The Cost/Value Relationship

80. Grants
• Special
purpose
• Code
Compliance
• General
RehabilitaDon
Property
Tax
• Assessment
Freeze
• Seismic
Improvements
not
added
to
Assessment
• Tax
Freeze
• PreferenDal
Rate
Loans
• Low
Interest
• Deferred
Payment
• Loan
Guarantee
Income
Tax
• Federal
Credit
• State
Credit
• Easement
DeducDons
Policy/Regulatory
• AlternaDve
Building
Code
• Zoning
Requirement
Waivers
• Non-­‐conforming
waivers
Technical
Assistance
• Training
• Direct
Assistance
• Technical
Documents
Other
• Transferable
Development
Rights
• Public
Insurance
Pool
Examples of Incen.ves in US

81. Effect of Historic Tax Credit on Federal Treasury
Net
Gain
to
US
Treasury
of
$5.6
Billion
since
1981

82. InternaDonal
CompeDDveness

84. Does
Heritage
MaPer?
Research
collaboraDon
with
Erasmus
University
in
RoPerdam
1. If
today
jobs
are
following
people,
and
2. If
people
(especially
young,
knowledge
workers)
are
choosing
where
to
live
based
on
Quality
of
Life
factors,
and
3. If
heritage
is
a
significant
Quality
of
Life
indicator,
then
4. There
ought
to
be
more
examples
of
Foreign
Direct
Investment
in
strong
Heritage
CiDes

85. Research
Approach
1. IdenDfy
European
ciDes
that
are
a) World
Heritage
CiDes
b) Belong
to
the
OrganizaDon
of
World
Heritage
CiDes
(29)
2. IdenDfy
comparable
ciDes
accounDng
for
other
factors
–
size,
human
capital,
density,
etc.
(190)
3. Compare
instances
of
FDI
with
similar
non-­‐
heritage
ciDes

86. Between
2003
and
2013
Heritage
CiDes
typically
aPracted
41
more
instances
of
Direct
Foreign
Investment
than
the
non-­‐heritage
CiDes

87. Pioneer
Square,
SeaPle,
Washington,
USA

89. InternaDonal
APenDon

91. All
the
evidence
demonstrates
that
investment
in
heritage
is
an
inherently
sustainable,
long
term,
and
measurably
successful
soluDon
to
economic
recession.

92. Heritage:
The
Driver
of
Development
Value
the
Heritage!
Heritage
during
the
recession
–
luxury
or
necessity?

95. Donovan
D.
Rypkema
Heritage
Strategies
Interna0onal
www.HS-­‐Intl.com