BrainWave supports Economic Development projects for conservation, restoration, preservation and adaptive re-use of commercial and residential structures:
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Cincinnati, Columbus, and Cleveland have all utilized Historic Tax credits to drive Economic Development Project in their cities. |
The combination of State and Federal Historic Preservation Tax Credits of 45% is a total game changer for mature communities, and jurisdictions with a high number of historic asets. Older properties can now be renovated for less bottom-line costs compared with new construction. These credits, combined with other incentives, place older communities in an advantageous position to attract new development. If they have set-up the facilitating Ohio Historic Preservation capability with Certified Local Government (CLG) status.
All Ohio Counties, Cities, Villages and Incorporated Communities may select to set-up Historic Preservation- Certified Local Government (CLG) Capabilities. These CLG capabilities create the authority to nominate NPS-National Historic Register qualified historic properties, which are then eligible for State and Federal Tax Credit Applications. The State facilitates a process by which communities can "grow" their own preservation expertise utilizing existing community staff and local volunteers, all guided by state and federal standards and resources. This opportunity has been extensively exploited by Cleveland, Columbus and Cincinnati communities, and has driven millions of redevelopment into these cities. But this capability is available to all Ohio communities who wish to benefit from this type of redevelopment.
Historic renovations create a high number of jobs relative to the total project cost. This is simply because new construction typically deploys factory pre-assembled components which are quickly assembled on sites. Restoration by contrast substitutes local restoration labor for these distant-factory made components. Restoration encourages skilled labor over unskilled assembly. And encourages local business growth. Check the CSU study link below.
The opportunity for a 45% Tax Credit on development projects absolutely changes the equation on the decision to "build new vs restore" decision process. Every eligible building has the potential to become an economic redevelopment target. Every mature community with an extensive inventory of eligible properties needs to explore this potential.
There is a persistant "urban legend" that restoration costs more than new construction. This is demonstrably not accurate. It is usually driven by a set of false requirements and specifications typically seen in modern Architectural Estimating Software packages. Sometimes wielded by organizations biased against historic preservation.
The fact is that preservation often requires cost-saving approaches to project components. And these approaches generate a 45% tax credit which the Architectural Estimating Packages seldom report.
When you calculate the infrastructure upgrade costs (HVAC-Electircal-Plumbing) and their attendant 45% Historic credit, the total cost of advantage of renovation over new construction become highly apparent. The bottom line in in a carefully constructred Historic Tax Credit renovation is difficult to beat.
with these links...
For more information about historic tax credits and opportunities for historic preservation please contact us. (Updated May 2016)
