Historic Preservation, Economic

Development and Community

Revitalization Programs

Luis Nieves-Ruiz, AICP

Orange County Planning Division

Research and Intergovernmental Coordination

October 22, 2010

HISTORIC

PRESERVATION

Antiquities Act 1906

Colonial Williamsburg 1926

Charleston, “Old Historic District” 1931

New Orleans Vieux Carre 1936

Old Georgetown Act 1950

Berman vs. Parker 1954

National Register of Historic Places 1966

Penn Central vs. NYC 1978

Significant Historic Preservation Dates

Antiquities Act of 1906

• First major historic preservation legislation.

• Stemmed from concern over the destruction of pre-historic remains in the southwest. Specifically, the Mesa Verde site in Colorado.

• Allowed areas in the public domain that contained historic structures/objects to be designated national monuments.

• Federal crime to collect or destroy any historic or prehistoric object or building on federally owned land.

Colonial Williamsburg, 1926

• 18th Century Capital of colonial Virginia.

• Private efforts (led by the Rev. Dr. W.A.R Goodwin and John D. Rockefeller) resulted in the restoration of Colonial Williamsburg as a museum village.

Charleston, SC 1931

• First historic preservation district in the United States.

• Approximately 3 square miles.

• Prohibited specific uses on Broad St., which contained the heaviest concentration of historic buildings.

New Orleans, 1936

• Second Historic District in United States.

• Established a historic preservation ordinance in 1936 to protect the Old French Quarter (Vieux Carre).

Old Georgetown Act, 1950

• First federal law for

historic preservation.

• Properties fall under the

authority of the Historic

Preservation Review

Board and the

Commission of Fine Arts.

Berman v. Parker, 1954

• Supreme Court established the concept that aesthetics alone sufficiently justified government regulation.

• Gave Washington D.C the right to “tear down old blighted buildings to improve a neighborhood.”

• Predecessor to Kelo v. City of New London.

• However, provided preservationists with a legal precedence to justify protective historic ordinances.

National Historic Preservation

Act, 1966

• Created the Department of the Interior

National Register of Historic Places.

• The report recommending the passage of

the NHPA was called With Heritage So Rich.

• It has been amended 22 times since

approval.

Penn Central v. NYC, 1978

• First Supreme Court decision dealing directly with

historic preservation.

• Rights of owners to develop property vs. rights of

cities to review and regulate the development of a

historic property.

• Owner applied to construct a 55 story addition

over Grand Central station, a historic landmark

structure.

• Owner claimed the city’s denial of their request

was a “taking” but court disagreed.

• The landmark decision upheld the legitimacy of

historic ordinances, and formed the legal basis for

the right to establish controls to which the owners

of historic properties would be subject.

National – Historic Preservation

• National Register of Historic Places

• National Park Service, U.S. Dept of the Interior

• State Historic Preservation Officer

• Advisory Council on Historic Preservation

Tax Reform Act of 1976 - Allowed tax breaks for

historic buildings listed on either a local register or

the National Register.

Economic Recovery Tax Act of 1981 - Gave a 25%

tax credit for rehab costs of historic buildings.

Tax Incentives for Preservation

National Register Criteria

• Types:

• Districts

• Sites

• Buildings

• Structures

• Objects

• Significance:

• American History

• Architecture

• Archeology

• Engineering

• Culture

What is a Historic District?

• Geographical area that has a significant architectural enclave of historic buildings.

Why Establish a Historic District?

• Protect historic properties

• Control new development

• Serve as development incentive

• Maintain property values

• Public relations/promotion

• Economic Development

Historic Resources/ Landmarks

• A structure that is 50 years old or older and possesses:

• Aesthetic

• Architectural, or

• Historic Value

Preservation Ordinance

Requirements

• Should achieve a public purpose

• Should leave some or all value to the property

• Should meet legal test

• Should be tailored to the specific area or for a specific purpose

• May include specific architectural requirements to ensure that property renovations blend with the rest of the district

• May include measures to protect historic structures

Certificate of Appropriateness

• Must be obtained to modify the outside appearance of a structure that has been designated a historic resource/landmark

Current Preservation Numbers

• There are over 80,000 listings on the National Register

Economic Development

and Revitalization

Spatial Economic Theories

• Von Thunen

• Central Place

• Economic Base

• Cluster

• Creative Class

• Mega Region

Von Thunen Model

• The use of a

piece of land is

put to is a

function of the

cost of transport

to market and

the land rent a

farmer can

afford to pay.

• Von Thunen

Concentric

Circles.

Central Place Theory

• Developed by Walter Christaller.

• Laws determine the number, size and distribution of towns.

• People would travel farther to get high order services.

• It is becoming less useful for studying metropolitan areas.

• Predecessor of the World Systems Theory.

Economic Base Theory

• Divides regional industries into Basic

(export sectors) and Non Basic (local

sectors).

• Assumes that export industries drive

regional economic growth.

• Basic industries have a multiplier effect on

the regional economy.

Base Multiplier = Total Employment Year i

Basic Employment Year i

Economic Clusters

• Develop by Michael Porter.

• A cluster is a geographic concentration of competitive firms in related industries that do business with each other.

• Cluster includes companies selling primarily outside the region, as well as support firms supplying raw materials.

• Clusters provide synergy, and that leads to competitive advantage and economic specialization.

Creative Class Theory

• Developed by Richard Florida.

• Recognized shift from manufacturing economy

to an economy based on knowledge.

• Successful regions have the three T’s: talent,

tolerance, and technology.

• Place making is an important part of economic

development because it helps to attract talent

and industry.

Mega-Regions/Megapolitan Areas

• Areas of the world that generate a

disproportionate share of global economic

activity including trade, transport, innovation

and scientific discovery.

• They often stretch across multiple

jurisdictions and even national borders.

• Examples of national mega regions include the

following corridors: Boston-Washington D.C.,

Chicago-Pittsburgh, and Charlotte-Atlanta.

Economic Measuring Tools

• Location Quotient

• Shift Share Analysis

• Input/output Models

• Land Market Monitoring

• Econometric Models

North American Industry

Classification System (NAICS)

• Industry classification system

• Twenty industrial sectors

• Several digit levels of complexity

NAICS 11 Agriculture

NAICS 112 Animal Production

NAICS 1121 Cattle Ranching

Location Quotient

• Ratio between the local economy and reference

economy.

• It measures economic specialization of a region.

Employment National Total

Employment National

Employment Local Total

Employment Local

LQi

i

i

Location Quotient

LQ = 1

LQ < 1

LQ > 1

Regional employment proportion in

industry i is same as national

proportion.

Regional employment proportion in

industry i is less than national

proportion.

Regional employment proportion in

industry i is greater than national

proportion.

Location Quotient

NAICS 7131 Amusements, Parks and

Arcades

858 112,718,

677,154

434 612,

281,47

LQ 7131

26.56 LQ 7131

High Location Quotients

Industry Florida

Orange

County

NAICS 5615 Travel arrangement & reservation 2.17 7.71

NAICS 4855 Charter bus industry 0.96 5.9

NAICS 3333 Commercial & serv. industry mach. 1.21 5.54

NAICS 7211 Traveler accommodation 1.4 4.2

NAICS 6115 Technical and trade schools 1.34 3.33

NAICS 5321 Automotive equipment rental 1.43 2.93

NAICS 1114 Greenhouse and nursery prod. 2.3 2.89

NAICS 2372 Land subdivision 3.31 2.09

NAICS 4859 Other ground passenger transp. 1.04 1.9

Shift Share Analysis

• Technique to analyze sources of change in a

regional economy.

• Total Employment Change = National Growth

Share + Industrial Mix share + Regional Shift

– National Growth Share: growth attributed to

national changes in the economy

– Industrial Mix Share: employment on particular

industries

– Regional Shift: examines unique local factors that

affect regional competitiveness

Input/output Analysis

• Input/output Models

use multipliers to

estimate the

economic impact of

specific sectors.

• Determine linkages

between industries

in the local

economy.

• Calculate direct,

indirect and induced

effects.

Purchasing

Industry Ag. Transp. Mfg.

Selling

Industry

Agriculture .65 0.22 0.13

Transportati

on 0.19 .62 0.16

Manufacturi

ng 0.16 0.16 .71

Total Output 1.00 1.00 1.00

Practice Sources

• LOCATION QUOTIENT:

http://data.bls.gov/LOCATION_QUOTIENT/servl

et/lqc.ControllerServlet

• SHIFT SHARE:

http://www.georgiastats.uga.edu/sshare1.html

Land Market Monitoring

• Focus on monitoring the availability of buildable land available and the rate it is being consumed for urban development.

• Looks at the supply of land zoned for residential, commercial, and industrial uses.

• Uses a variety of tools including GIS and land/employment multipliers.

Econometric Models

• Combines economic theories with statistics

to analyze and test economic relationships.

• Examples of models includes regression

analysis.

• Uses copious amount of data.

Community Revitalization Strategies

• Create Special Districts/Programs

• Write a Master/Strategic Plan

• Provide Tax Incentives

• Create/Increase Tax Base

• Infrastructure and Beautification Improvements

• Enterprise Zones/Empowerment Zones

• Business Improvement District

• Brownfield Programs

• Community Development Block Grant Program

• Main Street Program

• Business Development Programs

• Special Tax Districts

Economic Revitalization Programs

Enterprise Zone/Empowerment Zones

• Participating block groups must have more than 20% poverty rate.

• Both Federal and State Programs.

• Offer a variety of incentives to attract new businesses to the area including:

• Job Tax Credit

• Property Tax Credits

• Sales Tax Refunds

Business Improvement District

• Public-Private partnership that contributes

to the maintenance, development and

marketing of the commercial district.

• Overseen by a board of directors.

• Funded through special assessments (TIF)

collected from the property owners in the

defined boundaries of the district.

• Similar to Community Redevelopment Areas

(CRA).

Brownfield Programs

• Site whose redevelopment

or reuse may be

complicated by the

potential or real presence

hazardous pollutants.

• Managed by Environmental

Protection Agency

• Provides direct funding for

brownfields assessment,

cleanup, revolving loans,

and environmental job

training.

Community Development Block

Grant Program (CDBG)

• Federal Block Grant Program that helps to

improve the living conditions of low and

moderate income residents.

• Entitlement communities must have at least

50,000 residents.

• These funds are used for a variety of

programs including housing rehabilitation and

infrastructure improvement.

Main Street Program

• Sponsored by National Trust for Historic Preservation.

• Public-Private partnership allowing merchants to be involved and responsible in revitalization efforts.

• Combines historic preservation with economic development.

• Used to revitalize old commercial corridors and downtown areas.

Business Development

• This is also known as “economic gardening”.

• Incubation Programs that provide management

training, counseling, consulting, marketing,

and research.

• Programs targeting of specific industries to

locate in the community.

• Business retention programs to keep and grow

existing businesses.

• Workforce Education and Training Programs

tailored to firm’s needs.

Special Tax Districts

• Property owners within these districts pay

a special assessment to cover specific

services or infrastructure improvements.

• These districts are being established all

over Florida.

• Some examples of these are Community

Development Districts (CDDs) and

Municipal Services Taxing Units (MSTU).

Questions?

Good luck on the

exam!