Placemaking Conference: Economic Benefits of Preservation


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Historic preservation investments are revitalizing economies and adding jobs around the nation. Preservation expert Donovan Rypkema shares lots of data and his own thoughts about the role of preservation in boosting economic success.

Enjoy this lecture from the 2013 Placemaking Conference in Norman, Oklahoma, hosted by The University of Oklahoma Institute for Quality Communities on April 3, 2013.

Donovan Rypkema is a leading voice in historic preservation. He is Principal of PlaceEconomics, specializing in services for clients who are dealing with neighborhood revitalization and the reuse of historic structures.

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Placemaking Conference: Economic Benefits of Preservation

  1. 1. Placemaking and the Economicsof Historic PreservationInstitute for Quality CommunitiesUniversity of OklahomaApril 3,2013
  2. 2. The ValuesHistoric resources havecultural, educational, social,aesthetic and many othervalues.
  3. 3. The ValuesBut today historicpreservationists are beingasked to demonstrateeconomic value as well.
  4. 4. Areas of ImpactJobsProperty ValuesHeritage TourismEnvironmental ImpactSocial ImpactsDowntown RevitalizationEconomic Competitiveness
  5. 5. #1 - JobsFederal Historic Tax Credit (1978-2011)• Spent = $19.2 billion• Jobs created =2,216,000• Cost per job = $8,868Federal Stimulus Package (Feb. 2009-March2011)• 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)— (2011)
  6. 6. The Federal Tax Credit:A Self-Funding Incentive (1978-2011)$0.0$5.0$10.0$15.0$20.0$25.0Cost to FederalGovernmentTaxes to the FederalGovernmentInflation Adjusted Dollars (Billions)$24.4$19.2
  7. 7. #1 - Jobs3.5 48.710.414.918.1AutomobileManufacturingComputerManufacturingAirTransportationPoultryProcessingNewConstructionHistoricRehabilitationJobs created per $1 million of activityGeorgiaHistoric preservation creates more jobs per $1 million of economicactivity than does the same amount in other major industries.— Good News in Tough Times: Historic Preservation and the Georgia Economy (2011)
  8. 8. Dubuque, Iowa (2001-2006)Average annual growth rate for:• Historic rehabilitationproperty values = 51%• Value of neighboring historicproperties = 9.7%• All properties = 5%• Other properties indowntown Dubuque = 3.7%(2000-2007)– Iowa’s Historic Preservation and Cultural andEntertainment District Tax Credit ProgramEvaluation Study (2009)#2 – Property Values
  9. 9. #2 – Property ValuesPhiladelphia, Pennsylvania• Premium commanded by NationalRegister historic district houses =14.3%• Premium commanded by localhistoric district houses = 22.5%— The Economic Impact of Historic Preservation inPhiladelphia (2010)
  10. 10. Louisville, Kentucky• Properties in local historicdistricts were worth between$59,000 and $67,000 more thancomparable properties not inhistoric districts.• 2000-2007: Houses in localhistoric districts appreciated21% more than the rest of themarket.– Historic Preservation’s Impact on JobCreation, Property Values, and EnvironmentalSustainability (2009)#2 – Property Values
  11. 11. 012345678Foreclosures per 1000Housing UnitsHistoric DistrictsComparable NeighborhoodsPhiladelphiaAnalysis of:Single Family Houses6 Historic Districts10 Comparable Neighborhoods10/09 – 9/10
  12. 12. #3 – Heritage TourismInternational heritage visitors• Stay longer, visit more places, andspend more per day than other tourists.• 2.6 million more visited a historic placethan went to an amusement park.• 4.1 million more visited a historic placethan went to the beach.• 4x as many visited a historic place thanwent to a casino.• For every international visitor whoplayed golf, 14 visited a historic place.- Profile of Overseas Travelers to the United States (2010)- Heritage Tourism Guidebook (2007)
  13. 13. #3 – Heritage TourismGeorgiaHeritage tourism supports 117,000jobs and $203,850,000 in salariesand wages.– Good News in Tough Times: Historic Preservationand the Georgia Economy (2011)#3 – Heritage Tourism
  14. 14. #3 – Heritage TourismCivil War Battlefields Spending by visitors to 20 CivilWar battlefields generated:• $21 million in state taxes• $11.7 million in localgovernment revenues This amounts to:• $5.22 per visitor at the statelevel• $2.92 to pay for local services#3 – Heritage Tourism– Blue, Gray, and Green: A Battlefield Benefits Guidefor Community Leaders (2006)Photo from National Park Service
  15. 15. #4 – Environmental ImpactHartford, ConnecticutHad 410 Asylum been razed instead ofrehabilitated:• 615,777 gallons of gas in embodied energywould have been thrown away.• 9,986 gallons of gasoline would have beenexpended in demolition and hauling to thelandfill.• Its demolition would have generated wasteequal to 21 days of trash from the city ofHartford.• Debris would have filled 39 boxcars.• Landfill impact would have wiped out thebenefit of recycling 21,211,680 aluminumcans.- Investment in Connecticut: The Economic Benefits ofHistoric Preservation (2011)
  16. 16. #4 – Environmental ImpactPreservation projects save 50 to 80% in infrastructure costscompared 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)
  17. 17. It takes 10 to 80 years of an energy efficient newbuilding to make up for the negative climate changeimpacts of constructionBuilding reuse almost always offers environmentalsavings over demolition and new construction
  18. 18. Office buildings builtbefore 1930 use one thirdless energy per square footthan buildings built after1991
  19. 19. FacadomyNegative Economic ImpactNegative Environmental ImpactNot Historic Preservation
  20. 20. Rhode Island (2005)The state’s historicpreservation tax creditcreated 409 affordablehousing units.– Rhode Island Historic PreservationInvestment Tax Credit Economic andFiscal Impact Analysis (2005)#5 – Social Impacts
  21. 21. Connecticut95% of Federal Rehabilitation TaxCredit projects have taken place inneighborhoods with a concentrationof households with a modest annualincome.– Investment in Connecticut: The Economic Benefits ofHistoric Preservation (2011)#5 – Social Impacts
  22. 22. #5 – Social Impacts75%21%4%Median Household Income inCensus Tracts withFederal Historic Preservation Tax Incentive ProjectsLess than $25,000 $25,000 to $49,999 More than $50,000Connecticut
  23. 23. #6 – Downtown RevitalizationMain Street (National Trust forHistoric Preservation)Over the last 31 years the Main Streetcommunities have seen:• $55.7 Billion Invested in PhysicalImprovements• 109,664 Net New Businesses• 473,439 Net New Jobs• 236,201 Building RehabilitationProjects• $2,394 Cost per Job Created• $18 to $1.00 Leverage of PublicFunds— National Main Street Center of the NationalTrust for Historic Preservation
  24. 24. OklahomaMore than two decadesof Main Street activityhave created 24,437jobs, equal to roughly1.5% of the state’s entirenon-farm workforce.– Economic Impacts of HistoricPreservation in Oklahoma (2008)#6 – Downtown Revitalization
  25. 25. Iowa (1986-2012)– Net New Businessesgenerated $43 Million instate sales tax last year – 48times cost of state program– Added net new jobs 25 of26 years.– Added net new businesses26 out of 26 years– Job and business growthoutperformed both Iowaeconomy and US economy– Getting Results: Main StreetIowa, 1986-2012 (2013)#6 – Downtown Revitalization
  26. 26. #7 EconomicCompetitiveness
  27. 27. #7 EconomicCompetitiveness
  28. 28. Thank you!Donovan RypkemaPlaceEconomics1785 Massachusetts Avenue, NWWashington, DC