Upload
historic-macon
View
226
Download
1
Tags:
Embed Size (px)
DESCRIPTION
A presentation explaining revitalization strategies to save historic buildings in a real estate market where demand is low and prices are depressed. Given at the National Convening of Revolving Fund directors, sponsored by the 1772 Foundation, at the National Preservation Conference on 10/17/11 by Josh Rogers
Citation preview
A recent Historic Macon Foundation restoration
Revolving Fund Projects: “Cold” Market
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
“Cold” Market
•Huge proportion of community’s housing is sub-standard or vacant•Properties languish on market for long periods of time•Your community was cited nationally for low cost of housing•Housing prices range from $60-$80 per square foot for good quality housing•Most expensive house ever sold maybe $110 per square foot
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Soul of the Community
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Rehab and Sale
•Cold Markets require acquisition, rehab and sale
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Rehab and Sale
•Cold Markets require acquisition, rehab and sale
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Walkability
Friday, October 28, 11
Even the National Association of REALTORS says:•“Two-thirds of Americans now see being within easy walking distance of places in their community as an important factor in deciding where to live”•“The coming demographic convergence will push construction inward, accelerating the rehabilitation of cities...”
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
REALTORS
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Dog Park
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Second Sunday
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Second Sunday
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Mercer Village
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Beall’s Hill
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Control Development
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Huguenin Heights
• Four square blocks• Bounded by Interstate, two major collector roads and a public park• 16 projects completed over five year period
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Acquisition
1211 Ross St.Sold for $158,0001,900 sf=$83/sf
1295 Ross St.Possible Rehab project
1268 Ross St.Sold for $130,0001,500 sf=$87/sf
1525 Coleman Ave.Sold for $130,0001,510 sf=$86/sf
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Estimating Value
• Average of $83 per square foot among these three comparable recent sales• Our proposed project, 1295 Ross St., has 2,100 square feet• $83 per square foot x 2,100 square feet = $174,300• The maximum sales price for this project once complete will be $174,300
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Acquisition
Now think about acquisition:
•What are the costs to repair the home?•What is the cost of the money to be used for the repair?•How much developer’s fee do we need/want?•What will the Realtor’s fee cost?•How much will this cost to advertise?
Add up all those costs and subtract from $174,300
Now, what can you afford to pay for the house?
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
1295 Ross St.- Before
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
1295 Ross St.- After
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Acquisition
Creative acquisition strategies:• Donation from City instead of tear-down or condemnation• Speculative donation from City to increase property tax• Donation from city after delinquent taxes• Use “land bank” to aggregate property• Donation from developer if building is relocated• Bargain sale• Out-right donation• Donation after fire or other insurance pay-out• Estate gifts• Code enforcement calls• Others?
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Huguenin Heights
The reason you need a long time period and a concentrated impact is to increase the sales prices by a couple dollars per sale, so that the profits on projects sold at the end make up for losses taken in the beginning.
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Know your market
Who is buying?72% Younger singles and couples without kids17% Empty nesters and retirees
What are they buying?Highly finished detached homes between 400 and 2,000 square feet
How much house to their incomes support?An average of $125,000
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
980 Maple St.- Before
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
980 Maple St.- After
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
1035 Elm St.- Before
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
1035 Elm St.- After
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Interior- Before
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Interior- After
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Interior- Before
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Interior- After
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
New Construction
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
New Construction
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
New Construction
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
New Construction
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
New Construction
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Partnerships
•City of Macon benefits from reduced crime, reduced police responses, reduced fires•Rehabilitation eliminates need and cost of tear-downs•Increased property taxes•Increased sales taxes from construction materials purchased•Increased employment from construction workers•Elimination of slum and blight
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Partnerships
•Mercer University needs increased campus security•Fences and patrols cannot provide the same security as a safe neighborhood•Faculty and staff living near the campus do not require parking•Five year retention agreements limit recruiting costs and retain talented faculty
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Partnerships
•Area’s largest employer•Employs over 1,000 nurses•Nursing turnover averages 10% per year•Average cost to recruit a nurse tops $25,000•In addition, average parking space per employee costs $15,000 to construct plus land acquisition and maintenance•Medical Center can institute down payment assistance with five year retention agreement for employees who will buy a house within walking distance of work
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Partnerships
9%
9%
9%
26%
47%
Historic Macon Foundation Knight Foundation City of MaconMercer University Housing Authority
•$2 million total
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Format
$800,000 ($250,000 pending match)- Cash (Knight Foundation grants, previous grants released from restriction and restricted by Board)
$700,000- Loans against our endowment at 4.75% interest only
$500,000- Loans at $2/sf guaranteed developer’s fee(low-interest loans managed by College Hill Alliance and contributed by the City of Macon, Mercer University and the Macon Housing Authority)
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
In-Kind
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
In-Kind•Scana Energy, Gas plumbing for gas log fireplaces and stove, $1,000•Lafarge Concrete, pervious concrete, $2,500•Conditioned Air, 15 SEER heat pump upgrade, $3,000•Georgia Power, two heat pump water heaters, $3,000•Traditions in Tile, tile, $3,000•YSY Construction, free tile installation, $3,000•ICI Glidden Paints, free no VOC paint, inside and out, $7,500•L.E. Schwartz, 20% off roof materials and installation, $2,000•ZT3 Placemaker, landscape design, $1,000•Ferguson, low flow plumbing fixtures, $500•LCBwoodturning, custom hand-milled balusters and trim, $1,000•Noland, sinks and faucets, $1,000•Morris Appliances, 50% off kitchen appliances, $3,500•Midstate Countertops, 50% off countertops, $3,500•Tobesofkee Cabinets, 50% off cabinets, $5,000•Cox Communications, cable wiring, $500•BAP Security, partial donation of security system, $500
Total- $41,000 in in-kind donations
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Engage the public
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Engage the public
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Engage the public
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Engage the public
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Creative Contracting1. Fixed price construction manager hires hourly carpenters and manages sub contractors
2. Non-profit opens credit accounts at vendors
3. Non-profit finances draws for contractor
4. Commit to multiple projects at bid price without re-bid
5. Hire likely in-kind donors when the budget allows
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Marketing
•90% of buyers come from the web•All properties are listed in MLS with a Realtor•Pay for Google Ad Words•Register Google Blogger articles on each property•3’x5’ full color interpretive signs•Open houses and parties
Friday, October 28, 11
P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org
Incentives for homes
Georgia’s state income tax rate is 6%. A household with $50,000 in income pays about $3,000 in state income tax each year. Historic Macon
Foundation’s houses come with $30,000 in tax credits, meaning buyers with $50,000 in income would not pay taxes for ten years.
8.5 year property tax freeze at pre-rehabilitation value
25%-30% state tax credit ($100,000 max)
Homes in Macon are charged property tax every year. For a $135,000 home, that tax is nearly $2,260 a year ($188/month). Historic Macon homes have
values that are frozen, decreasing your property taxes drastically.
Friday, October 28, 11
CASE STUDY
Purchase a home with tax credits in place
Friday, October 28, 11
Restored homes from Historic Macon Foundation
include tax credits
This home at 980 Maple St. included frozen property taxes at $200 per year and $30,000 in state income tax
credits.
The net monthly cost to own this $130,000 home is
$500 per month
Homes
Friday, October 28, 11
HomesHistoric home
Any other home
House Price $135,000 $135,000
Down Payment $4,725 $4,725
You Get a Raise! $2,700/year $0
Reduced Property Tax $205 $2,260
Total Savings $44,480 $0
Total Monthly Cost $500 $1,160
Friday, October 28, 11
Down Payment Assistance
The City of Macon offers down payment assistance up to $25,000 for people of low
to moderate incomes
Mercer University offers $20,000 to all employees for
down payments
Georgia Dream can offer $5,000 to $7,500 to help with
down payment and closing costs
Friday, October 28, 11
HomesHistoric home
Any other home
House Price $135,000 $135,000
Down Payment -$45,000 $4,725
You Get a Raise! $2,700/year $0
Reduced Property Tax $205 $2,260
Total Savings $99,480 $0
Total Monthly Cost $400 $1,160
Friday, October 28, 11
Sales Sheets
Friday, October 28, 11
Josh Rogers, Executive [email protected]
phone 478-742-5084 • fax 478-742-2008email [email protected] • site www.historicmacon.org
Friday, October 28, 11