Mansfield Downtown Property Owners Conference


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Mansfield Downtown Property Owners Conference

  1. 1. Property Owners Conference - May 13, 2009 Downtown Mansfield, Inc.
  2. 4. <ul><li>A quick introduction to Preservation Ohio </li></ul><ul><li>A look at historic preservation and downtown revitalization </li></ul><ul><li>A look at preservation-based downtown revitalization in Ohio </li></ul><ul><li>Financial incentives for revitalization </li></ul>
  3. 5. <ul><li>STATEWIDE PRESERVATION ORGANIZATIONS: </li></ul><ul><li>Education, Technical Services, Advocacy, Partnership </li></ul><ul><li>47 States have 1 such organization, leaving: </li></ul>About Preservation Ohio 0 0 2
  4. 6. <ul><li>Established in 1982; original Trustees include current Ohio Chief Justice Thomas Moyer. </li></ul><ul><li>First organization in Ohio to host statewide meetings on downtown revitalization, smart/sustainable growth, courthouse renovation. </li></ul><ul><li>Current Trustees from all over the state, including Toledo, Youngstown, Oxford and Cincinnati. </li></ul><ul><li>Staff and Board have unparalleled experience in Ohio-based downtown revitalization and in historic preservation/design review ordinance administration. </li></ul>About Preservation Ohio
  5. 7. <ul><li>Ohio’s largest statewide historic conservation easement program – Butler, Ottawa, Montgomery, Clark, Washington Counties – soon Summit and Franklin. </li></ul><ul><li>Leading statewide preservation organization nationally in use of online technology. </li></ul><ul><li>First and still most visited blog in the country on statewide preservation and downtown revitalization. </li></ul><ul><li>Since 1993, home of annual listing of Ohio’s Most Endangered Historic Sites. </li></ul>About Preservation Ohio
  6. 11. <ul><li>“ 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. </li></ul>Historic Preservation
  7. 12. <ul><li>“ 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. </li></ul>Historic Preservation
  8. 17. Madison, Indiana ~ Galesburg, Illinois ~ Hot Springs, South Dakota 1976 – Main Street Program Pilot Communities
  9. 18. <ul><li>By concentrating on the following four areas simultaneously and by seeking incremental change, communities can maximize their opportunities for downtown revitalization. </li></ul><ul><li>Design </li></ul><ul><li>Economic Restructuring </li></ul><ul><li>Promotion </li></ul><ul><li>Organization </li></ul>Four-Point Approach TM
  10. 19. <ul><li>“ The Economics of Historic Preservation: A Community Leader’s Guide” </li></ul><ul><li>~ Donovan D. Rypkema </li></ul>Preservation and Downtown
  11. 20. <ul><li>Downtown is the historic center of the community, and a healthy downtown is essential for civic well-being. </li></ul><ul><li>As downtown is the home of a city’s leadership, its appearance is perceived as a direct reflection on those leaders. </li></ul><ul><li>Downtown represents a huge investment public funds in infrastructure. </li></ul><ul><li>Historic downtowns provide a diversity of space and rent levels not found elsewhere in the community. </li></ul><ul><li>Older buildings provide excellent locations for start-up small businesses in growth industries. </li></ul>Preservation and Downtown
  12. 21. <ul><li>The appreciation rates for downtown historic buildings often outperform the market as a whole. </li></ul><ul><li>Preservation and design review ordinances create a stable market that in turns encourages private and public investment. </li></ul><ul><li>Historic preservation creates more jobs that the same amount of new construction. </li></ul><ul><li>Historic rehabilitation is counter-cyclical, providing stabilization of a local economy. </li></ul><ul><li>Quality of life is becoming THE critical ingredient in economic development, and preservation is an important part of the quality of life equation. </li></ul>Preservation and Downtown
  13. 22. <ul><li>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! </li></ul>Preservation and Revitalization
  14. 23. <ul><li>Differentiation. </li></ul><ul><li>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. </li></ul>Preservation and Revitalization
  15. 24. Downtown Revitalization in Ohio
  16. 25. <ul><li>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. </li></ul><ul><li>In the meantime, several Ohio communities began “self-initiated” programs – Mansfield, Galion, Wooster all did this in north-central Ohio. </li></ul><ul><li>Was housed with Downtown Ohio, Inc., then Downtown Ohio/Heritage Ohio, now known as Heritage Ohio. </li></ul><ul><li>First three official programs – Chagrin Falls, Salem and Galion; now has 38 active programs. </li></ul>Downtown Revitalization in Ohio
  17. 26. <ul><li>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: </li></ul><ul><li>Lorain, Fremont, Batavia, New Richmond, Mansfield, Marion, Findlay, New Bremen, New Philadelphia, Tiffin, Mechanicsburg </li></ul>Downtown Revitalization in Ohio
  18. 27. <ul><li>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: </li></ul><ul><li>Canal Fulton, Canfield, Dublin, Galion, Madison, Olmstead Falls, Oxford, Parma, Springboro, Steubenville, Waynesville, Salem, Willoughby, Zanesville, Mount Gilead </li></ul>Downtown Revitalization in Ohio
  19. 28. <ul><li>Tax credits – Federal (2 kinds), Ohio </li></ul><ul><li>Tax deductions </li></ul><ul><li>Grants </li></ul><ul><li>Stimulus/special funding opportunities </li></ul><ul><li>Other </li></ul>Financial Incentives for Preservation
  20. 29. <ul><li>20% tax credit for qualified rehabilitation expenditures on certified historic structures </li></ul><ul><li>Building must be individually listed on NRHP or certified as contributing to a NRHD – or in certified local district </li></ul><ul><li>Must be income-producing (depreciable) </li></ul><ul><li>“ Substantial rehab” – greater of $5000 or adjusted basis </li></ul><ul><li>Hard and soft costs qualify </li></ul><ul><li>Work must be certified by NPS (through OHPO), done according to Secretary of the Interior Standards </li></ul>20% Federal Tax Credit
  21. 30. <ul><li>Unlike Shelby, Bucyrus and Ashland, there is no NRHD in Downtown Mansfield </li></ul><ul><li>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 </li></ul><ul><li>Possible consideration might be given to certification of the Central Park Historic District </li></ul>20% Federal Tax Credit
  22. 31. <ul><li>Must be “non-historic,” i.e., cannot qualify for the 20% tax credit, and must have been constructed before 1936. </li></ul><ul><li>Like the 20% credit, the building must be depreciable and the renovation must be substantial ($5000/adjusted basis) </li></ul><ul><li>No set standards, but must meet “wall retention requirement” – 50% of external walls, 75% of internal walls </li></ul><ul><li>No review requirement </li></ul><ul><li>Mansfield – most downtown Mansfield buildings should qualify for this tax credit </li></ul>10% Federal Tax Credit
  23. 32. <ul><li>Historic conservation easements are interests in real property that govern the exterior (usually) of a property </li></ul><ul><li>Agreement entered into with non-profit organization (such as Preservation Ohio) that will monitor easement </li></ul><ul><li>Usually done in perpetuity (required for IRS) </li></ul><ul><li>Acts as a continuing watchdog on historic integrity; not susceptible to changes in local government, etc. </li></ul><ul><li>Donor receives charitable donation equal to appraised value (difference in fair market value, before/after). </li></ul><ul><li>Same buildings as tax credits quality for the donation. </li></ul>Easement Deduction
  24. 33. <ul><li>First announced – early 2007; original application deadline was July 1, 2007; first-come, first-serve. </li></ul><ul><li>25% tax credit of qualified rehabilitation expenditures toward following Ohio taxes: dealer in intangibles tax, corporate franchise tax, personal income tax. </li></ul><ul><li>There is no apparent limitation on the usage of the building; i.e., buildings can be both depreciable and non-depreciable (owner-occupied). </li></ul><ul><li>Rehabilitation governed by same standards as the 20% Federal Rehabilitation Tax Credit </li></ul><ul><li>Must show net tax benefit; must be factor in rehab </li></ul>Ohio Historic Preservation Tax Credit
  25. 34. Ohio Historic Preservation Tax Credit
  26. 35. <ul><li>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.” </li></ul><ul><li>Properties in the Central Park Historic District are therefore eligible. </li></ul><ul><li>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. </li></ul>Ohio Historic Preservation Tax Credit
  27. 36. Ohio Historic Preservation Tax Credit
  28. 37. <ul><li>STATSITICS OF APPROVED OHPTC APPLICATIONS 2007-11 </li></ul><ul><li>Total project costs – $1.104 billion </li></ul><ul><li>Total qualified rehab expenditures - $854 million </li></ul><ul><li>Total tax credit - $203 million </li></ul><ul><li>Leveraged investment ratio – 5.44 </li></ul><ul><li>PROBABLE CHANGES </li></ul><ul><li>Geographic diversity </li></ul><ul><li>Project size diversity </li></ul>Ohio Historic Preservation Tax Credit
  29. 38. <ul><li>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 </li></ul><ul><li>Capital Appropriations Bill </li></ul><ul><li>NTHP, including Community Investment Corporation </li></ul><ul><li>Preserve America, Save America’s Treasures </li></ul><ul><li>“ Macro grants” – CDBG, Small Downtown/ODOD, transportation enhancement funding </li></ul>Grants
  30. 39. <ul><li>Most stimulus funding reaching downtowns will come through increased CDBG or transportation enhancement funding </li></ul><ul><li>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) </li></ul><ul><li>$5 billion Weatherization program funded by stimulus – funds can be used for restoration/repair for residential structures (including multi-unit) </li></ul>Stimulus/Special Funding
  31. 40. <ul><li>Various Federal and State affordable housing rehab credits </li></ul><ul><li>Tax abatement, if available </li></ul><ul><li>Large projects – New Markets Tax Credits </li></ul><ul><li>Brownfield abatement funding </li></ul><ul><li>Special Improvement Districts (SID) – Lancaster, e.g. </li></ul><ul><li>Others – Preservation Ohio provides information on all available grants to individual members and Affiliate community residents </li></ul>Other
  32. 41. Property Owners Conference - May 13, 2009 Downtown Mansfield, Inc. Thomas Palmer, Executive Director E-Mail: [email_address] Phone: 614.437.8393 – Web: