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Mansfield Downtown Property Owners Conference


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  • 1. Property Owners Conference - May 13, 2009 Downtown Mansfield, Inc.
  • 2.  
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  • 4.
    • A quick introduction to Preservation Ohio
    • A look at historic preservation and downtown revitalization
    • A look at preservation-based downtown revitalization in Ohio
    • Financial incentives for revitalization
  • 5.
    • Education, Technical Services, Advocacy, Partnership
    • 47 States have 1 such organization, leaving:
    About Preservation Ohio 0 0 2
  • 6.
    • Established in 1982; original Trustees include current Ohio Chief Justice Thomas Moyer.
    • First organization in Ohio to host statewide meetings on downtown revitalization, smart/sustainable growth, courthouse renovation.
    • Current Trustees from all over the state, including Toledo, Youngstown, Oxford and Cincinnati.
    • Staff and Board have unparalleled experience in Ohio-based downtown revitalization and in historic preservation/design review ordinance administration.
    About Preservation Ohio
  • 7.
    • Ohio’s largest statewide historic conservation easement program – Butler, Ottawa, Montgomery, Clark, Washington Counties – soon Summit and Franklin.
    • Leading statewide preservation organization nationally in use of online technology.
    • First and still most visited blog in the country on statewide preservation and downtown revitalization.
    • Since 1993, home of annual listing of Ohio’s Most Endangered Historic Sites.
    About Preservation Ohio
  • 8.  
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  • 11.
    • “ Historic preservation” refers to a decision-making process. Simply put, it means taking the full value of a particular piece of property into consideration when making choices about its future – not only including its ability to generate an income, but also its connection to its neighboring properties and to the community as a whole.
    Historic Preservation
  • 12.
    • “ Historic preservation” does not usually mean attempting to save every element of the past. Such an effort would not only be impossible, it would likely prove counter-productive. It does mean using this decision-making process as owners and as communities to maximize opportunities for economic development and a high quality of life.
    Historic Preservation
  • 13.  
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  • 17. Madison, Indiana ~ Galesburg, Illinois ~ Hot Springs, South Dakota 1976 – Main Street Program Pilot Communities
  • 18.
    • By concentrating on the following four areas simultaneously and by seeking incremental change, communities can maximize their opportunities for downtown revitalization.
    • Design
    • Economic Restructuring
    • Promotion
    • Organization
    Four-Point Approach TM
  • 19.
    • “ The Economics of Historic Preservation: A Community Leader’s Guide”
    • ~ Donovan D. Rypkema
    Preservation and Downtown
  • 20.
    • Downtown is the historic center of the community, and a healthy downtown is essential for civic well-being.
    • As downtown is the home of a city’s leadership, its appearance is perceived as a direct reflection on those leaders.
    • Downtown represents a huge investment public funds in infrastructure.
    • Historic downtowns provide a diversity of space and rent levels not found elsewhere in the community.
    • Older buildings provide excellent locations for start-up small businesses in growth industries.
    Preservation and Downtown
  • 21.
    • The appreciation rates for downtown historic buildings often outperform the market as a whole.
    • Preservation and design review ordinances create a stable market that in turns encourages private and public investment.
    • Historic preservation creates more jobs that the same amount of new construction.
    • Historic rehabilitation is counter-cyclical, providing stabilization of a local economy.
    • Quality of life is becoming THE critical ingredient in economic development, and preservation is an important part of the quality of life equation.
    Preservation and Downtown
  • 22.
    • President Obama's $780 billion stimulus package seeks to create 3.5 million jobs, at a cost of $223,000 per job. But the existing 20 percent federal tax credit for historic preservation can spur economic development at a cost of only $6,873 per job!
    Preservation and Revitalization
  • 23.
    • Differentiation.
    • It is what makes an object unique that also makes it marketable. A community therefore becomes marketable for investment when it is unique – and downtown represents any community’s largest unique attribute.
    Preservation and Revitalization
  • 24. Downtown Revitalization in Ohio
  • 25.
    • Despite being a location for one of the first Main Street Program meetings and having a pilot program finalist (Tiffin), Ohio did not gain a statewide coordinating program until 1998.
    • In the meantime, several Ohio communities began “self-initiated” programs – Mansfield, Galion, Wooster all did this in north-central Ohio.
    • Was housed with Downtown Ohio, Inc., then Downtown Ohio/Heritage Ohio, now known as Heritage Ohio.
    • First three official programs – Chagrin Falls, Salem and Galion; now has 38 active programs.
    Downtown Revitalization in Ohio
  • 26.
    • Many more Ohio communities use preservation as a basis for downtown revitalization, including former Main Street communities, and others which have never been a part of the program. These include:
    • Lorain, Fremont, Batavia, New Richmond, Mansfield, Marion, Findlay, New Bremen, New Philadelphia, Tiffin, Mechanicsburg
    Downtown Revitalization in Ohio
  • 27.
    • There are also several other communities that have historic preservation or design/architectural review districts in their downtown areas, several of which are Certified Local Governments. These include:
    • Canal Fulton, Canfield, Dublin, Galion, Madison, Olmstead Falls, Oxford, Parma, Springboro, Steubenville, Waynesville, Salem, Willoughby, Zanesville, Mount Gilead
    Downtown Revitalization in Ohio
  • 28.
    • Tax credits – Federal (2 kinds), Ohio
    • Tax deductions
    • Grants
    • Stimulus/special funding opportunities
    • Other
    Financial Incentives for Preservation
  • 29.
    • 20% tax credit for qualified rehabilitation expenditures on certified historic structures
    • Building must be individually listed on NRHP or certified as contributing to a NRHD – or in certified local district
    • Must be income-producing (depreciable)
    • “ Substantial rehab” – greater of $5000 or adjusted basis
    • Hard and soft costs qualify
    • Work must be certified by NPS (through OHPO), done according to Secretary of the Interior Standards
    20% Federal Tax Credit
  • 30.
    • Unlike Shelby, Bucyrus and Ashland, there is no NRHD in Downtown Mansfield
    • Individual properties – Bissman Block, City Mills, The Colonial, Hancock & Dow Building, Mansfield Savings Bank, May Building, Mechanics Building & Loan, Ohio Theatre, Richland Trust Building, Soldiers & Sailors Memorial Building, Voegele Building, several others along Park Avenue West
    • Possible consideration might be given to certification of the Central Park Historic District
    20% Federal Tax Credit
  • 31.
    • Must be “non-historic,” i.e., cannot qualify for the 20% tax credit, and must have been constructed before 1936.
    • Like the 20% credit, the building must be depreciable and the renovation must be substantial ($5000/adjusted basis)
    • No set standards, but must meet “wall retention requirement” – 50% of external walls, 75% of internal walls
    • No review requirement
    • Mansfield – most downtown Mansfield buildings should qualify for this tax credit
    10% Federal Tax Credit
  • 32.
    • Historic conservation easements are interests in real property that govern the exterior (usually) of a property
    • Agreement entered into with non-profit organization (such as Preservation Ohio) that will monitor easement
    • Usually done in perpetuity (required for IRS)
    • Acts as a continuing watchdog on historic integrity; not susceptible to changes in local government, etc.
    • Donor receives charitable donation equal to appraised value (difference in fair market value, before/after).
    • Same buildings as tax credits quality for the donation.
    Easement Deduction
  • 33.
    • First announced – early 2007; original application deadline was July 1, 2007; first-come, first-serve.
    • 25% tax credit of qualified rehabilitation expenditures toward following Ohio taxes: dealer in intangibles tax, corporate franchise tax, personal income tax.
    • There is no apparent limitation on the usage of the building; i.e., buildings can be both depreciable and non-depreciable (owner-occupied).
    • Rehabilitation governed by same standards as the 20% Federal Rehabilitation Tax Credit
    • Must show net tax benefit; must be factor in rehab
    Ohio Historic Preservation Tax Credit
  • 34. Ohio Historic Preservation Tax Credit
  • 35.
    • What buildings are eligible? Listed individually on the NRHP, certified as contributing to a NRHD, certified as contributing to a historic district under a Certified Local Government, or “…individually listed as a local landmark by a Certified Local Government.”
    • Properties in the Central Park Historic District are therefore eligible.
    • The City of Mansfield can also individual list a building under its ordinance outside of a district, thereby creating eligibility for use of the credit.
    Ohio Historic Preservation Tax Credit
  • 36. Ohio Historic Preservation Tax Credit
  • 37.
    • Total project costs – $1.104 billion
    • Total qualified rehab expenditures - $854 million
    • Total tax credit - $203 million
    • Leveraged investment ratio – 5.44
    • Geographic diversity
    • Project size diversity
    Ohio Historic Preservation Tax Credit
  • 38.
    • Certified Local Government grants – Mansfield is eligible – 70/30 available for 2009; can include acquisition and development of properties listed on the NRHP, as well as planning, survey work, staff work for preservation ordinances, public education, “pre-development” work
    • Capital Appropriations Bill
    • NTHP, including Community Investment Corporation
    • Preserve America, Save America’s Treasures
    • “ Macro grants” – CDBG, Small Downtown/ODOD, transportation enhancement funding
  • 39.
    • Most stimulus funding reaching downtowns will come through increased CDBG or transportation enhancement funding
    • Ohio Department of Development made funds available for brownfield remediation, with priority given for asbestos removal in “historic buildings” (deadline for submission was March 30, may have future rounds)
    • $5 billion Weatherization program funded by stimulus – funds can be used for restoration/repair for residential structures (including multi-unit)
    Stimulus/Special Funding
  • 40.
    • Various Federal and State affordable housing rehab credits
    • Tax abatement, if available
    • Large projects – New Markets Tax Credits
    • Brownfield abatement funding
    • Special Improvement Districts (SID) – Lancaster, e.g.
    • Others – Preservation Ohio provides information on all available grants to individual members and Affiliate community residents
  • 41. Property Owners Conference - May 13, 2009 Downtown Mansfield, Inc. Thomas Palmer, Executive Director E-Mail: [email_address] Phone: 614.437.8393 – Web: