Historic preservation workshop presentation


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Historic preservation workshop presentation

  1. 1. Ohio Urban Development Division
  2. 2. Agenda Ohio’s Urban Opportunity A Success Story Tools That Can Help: • Clean Ohio Fund • Brownfield Revolving Loan Fund • New Market Tax Credits • Historic Preservation Tax Credits
  3. 3. Urban Development DivisionRemoving obstacles to the sustainable revitalization of Ohio’s urban places & buildings with: - Innovative Financing - Critical Resources - Redevelopment Expertise
  4. 4. Ohio’s Urban OpportunityDemographic and market demand are shifting towards urban living
  5. 5. Ohio’s Urban Opportunity Demographic shifts• Currently, the two largest demographic groups are 20-29 and 45-55• US population is projected to grow by 100 million in 40 years• By 2030, every five-year age group younger than 75 will be roughly equal size
  6. 6. Ohio’s Urban Opportunity Market Demand shifts Market Demand for housing shifting to higher density o National Association of Realtors study shows nearly 2/3rds of demand for housing in the next generation will be higher density Housing close to transit o By 2025, more than 15 million will demand housing close to transit New and replacement housing will dominate o By 2030 over half of all existing development will have been built after 2000.
  7. 7. Ohio’s Urban OpportunityOhio is well positioned to take advantage ofthese shifting demands: Dense Cities with Focused Infrastructure and Institutions Great Historic Assets Statewide Tools and Resources
  8. 8. Dense Cities with Focused Infrastructure and Institutions
  9. 9. Ohio’s Urban OpportunityOhio’s Downtowns and Urban Areas have: 19 of the 27 Fortune 500 companies from Ohio • Ohio ranks 5th nationally amongst states on the Fortune 500 Many universities and colleges • Columbus has the second highest per capita student population in the US All 7 of Ohio’s professional sports teams Ohio’s nationally recognized Arts and Cultural Institutions
  10. 10. Phoenix vs. Cleveland Phoenix Cleveland1950 Population: 106,818 1950 Population: 914,808Population Rank: 99 Population Rank: 71950 Population Density: 6,247 1950 Population Density: 12,1971950 Land Area: 17.1 sq. miles 1950 Land Area: 75.0 sq. miles2000 Population: 1,321,045 2000 Population: 478,4032000 Population Density: 2,781.9 2000 Population Density: 6,166.52000 Land Area: 474.86 sq. miles 2000 Land Area: 77.58 sq. miles
  11. 11. Phoenix
  12. 12. Cleveland
  13. 13. Blythe, California City in Eastern California Population:12,155 Population Density: 501.5/sq mi
  14. 14. Marietta, Ohio Population: 14,515Population Density:1,747.0/sq mi
  15. 15. Historic Assets
  16. 16. Ohio’s Urban OpportunityState National Register of Historic Places Entries1. New York 4,9952. Massachusetts 4,0743. Ohio 3,7824. Virginia 3,6345. Pennsylvania 3,2356. Texas 3,0587. North Carolina 2,6308. California 2,4169. Georgia 1,97410. Michigan 1,707
  17. 17. The Short North, Columbus
  18. 18. Downtown Toledo
  19. 19. Mansfield
  20. 20. Statewide Tools and Resources
  21. 21. The Urban Development DivisionHelps take blighted properties from vacancy to redevelopment through:• Grants • Clean Ohio Fund• Tax Credits • Historic Preservation Tax Credits • New Market Tax Credits• Loans • Brownfield Revitalization Fund
  22. 22. Problem: Environmentally Contaminated Site
  23. 23. Tools: Environmentally Contaminated Site• Grants • Clean Ohio Revitalization Fund: Up to $3 million • Clean Ohio Assistance Fund: Up to $750,000• Loans • Brownfield Revolving Loan Fund: Up to $1 million
  24. 24. Clean Ohio Revitalization Fund Known End User Track Redevelopment Ready•Max $3 million grant Track •Max $2 million grant•Acquisition •Environmental Cleanup•Environmental Cleanup •Demolition•Demolition•Infrastructure – minimumneeded
  25. 25. Clean Ohio Assistance Fund• Focused on Priority Investment Areas• Assessment Focused• Ongoing approvals• Grant amounts  $300,000 Assessment grants  $750,000 Cleanup grants
  26. 26. Brownfield Revolving Loan Fund• Eligible property – includes residential, institutional, schools• Loans of up to $1 million• Below market rates• Non-competitive program• Loans made to property owner
  27. 27. Types of Brownfield Projects
  28. 28. Problem: Financing Gap
  29. 29. Tool: Ohio New Market Tax Credits•New Program, $10 million peryear•Up to $1 million in state taxcredits per project•Provides tax credits toinvestors to create belowmarket rate investments forOhio businessesCF Ware Coffee Building, Dayton•Gives Ohio a competitiveadvantage nationally
  30. 30. Federal New Market Tax Credits•Began in 2000•Awarded $21 billion in tax credits nationally•Created to enhance investments inbusinesses and real estate projects in low-income communities throughout the country
  31. 31. Problem: Historic Expenses Terminal Tower, Cleveland
  32. 32. Overview of the Program Provides tax credits for the rehabilitation of historic buildings Program administered by the Dept. of Development, Ohio Historical Society and Dept. of Taxation Approved $200 million in tax credits to 89 applicants in 23 different cities Additional tax credits are available:  $17.5 million for FY 2010 (July 1, 2009)  $24.2 million for FY 2011 (January 1, 2010)
  33. 33. Akron Approved Applicants Marietta Canton PeeblesChillicothe PiquaCincinnati Port ClintonCleveland SanduskyColumbus Springfield Dayton St. Clairsville Elyria TiffinHamilton Toledo Lebanon Urbana Lima Youngstown Marion
  34. 34. Eligibility Requirements1. Applicant is the owner of the building and non- governmental entity2. The property is a historic building3. Work is consistent with the U.S. Secretary of the Interior’s Standards for Rehabilitation4. Tax credit is a major factor in rehabilitating the building or increased level of investment
  35. 35. What is Rehabilitation? Protects and maintains historic building materials and character defining features Allows for a compatible new use of the building Can involve replacement of extensively damaged features Ability to construct additions onto the structure
  36. 36. Eligible Expenses Subsidizes 25% of Qualified Rehabilitation Expenditures (QRE) up to a project cap of $5 million. QRE can include:  Hard construction costs (HVAC, plumbing, electrical, windows)  Some soft costs (design, engineering, site surveys, legal fees, developer fees)
  37. 37. Restoring Historic Streets: Euclid Ave, Cleveland  11 approved applications along historic Euclid Avenue  Strategic priority area for Cleveland  New $200 million bus rapid transit system along Euclid Ave connects:  Two largest employment centers (Public Square and Cleveland Clinic)  Universities (Cleveland State, Case Western Reserve and Cleveland Institute of Art)  Cultural Attractions (Severance Hall and Terminal Tower, Cleveland Playhouse Square)
  38. 38. Restoring Historic Neighborhoods: Over-the-Rhine, Cincinnati  13 approved applications in Over-the-Rhine  Decades of disinvestment  Largest collection of Italianate architecture in US  Strategic link between downtown and University of CincinnatiOver-the-Rhine, Cincinnati Terminal Tower, Cleveland
  39. 39. Restoring Historic Downtowns: Piqua, Ohio  17 approved applications in historic downtowns of small Ohio cities  Spurs local reinvestment in downtown area’s  Fort Piqua Hotel was vacant and deteriorating  Public library, coffee shop and restaurant now occupy the buildingOver-the-Rhine, Cincinnati Terminal Tower, Cleveland Fort Piqua Hotel
  40. 40. Round 3o Application Deadline was September 30th, 2009o 55 applications were received from 13 different citieso $XXXX million in total project investmento $XXXX million in tax credits were requestedo Application Approval Announcement: December 31, 2009
  41. 41. Round 4 Round 4  $24.2 million will be available  Application Deadline: March 31, 2010  Application Approval Announcement: June 30, 2010 Projects will be evaluated on potential economic impact and regional distributive balance
  42. 42. Regional Distributive Balance – 20%  Economic Development Region  Jurisdictional Balance  County Per Capita Balance
  43. 43. Potential Economic Impact – 80% Financing and Speed of Development  Financing Secured, Leveraged Investment, Jobs Created, Timeliness to Completion Quality of Property  Physical Scope, End Use, Vacant Property, Green Building Quality of Place  Strategic Plan in Place, Benefit to Low Income, Economic Development Innovation Zone
  44. 44. Other Historic Preservation Tax Credit Use Examples• Theatre (Hanna Theatre)• Hotel (Shawnee Place)• Steam Plant (Dayton Power and Light Building)• School (Old Ohio Deaf School)• Department Store (Higbee Dept Store)
  45. 45. Before: The Fort Piqua Hotel•Built in 1891,NationalRegister of HistoricPlaces•Several redevelopmentefforts stalled due tofunding difficulties•Vacant and blighted•Presence of asbestosand other hazardouscontaminants
  46. 46. Before
  47. 47. After
  48. 48. Success Story: The Fort Piqua Hotel• $20 million dollarrehabilitation for a20,000 personcommunity• Fully occupied by alibrary, restaurant,coffee shop andbanquet facility• A community focalpoint
  49. 49. Fort Piqua Hotel: Clean Ohio Revitalization Fund•$1,358,546 grantfrom the Clean OhioRevitalization Fund•Used grant forasbestos removal,removal of otherhazardous chemicals
  50. 50. Fort Piqua Hotel: New Market Tax Credit• $5.8 Million Federal New Market Tax Credits
  51. 51. Fort Piqua Hotel: Historic Preservation Tax Credits•Total Tax Credit:$3.6 million•Type of Tax CreditReceived: State andFederal
  52. 52. Why was it successful?• Library (Long-Term Lease)• Compatible Uses (Coffee Shop and Library integration)• Community and Private Support Up Front• Infrastructure Already in Place
  53. 53. The Lesson: You Can Do It Too!!
  54. 54. Urban Development Divisionhttp://development.ohio.gov/UD/OHPTC/Urban Development DivisionWilliam Murdock, DirectorMark Lundine, Ohio Historic Tax Credit CoordinatorPhone: 614-995-2292E-mail: historic@development.ohio.gov