Using preservation-based

downtown revitalization

for economic

development

MYTHS

Historic preservation OR progress • Historic buildings don’t have broad economic value

• Neglected buildings have no future

• Preservation protections are impediments

Downtown OR the mall/supercenter

Mom-and-pop business OR substantial

economic development • Shoppers want convenience; won’t support small

business

Downtown’s lasting value

What is Main Street?

Program development and evolution

Post-war exodus

Societal changes Employment trends, Suburbia

Transportation National highway system

‘Community’ development Urban renewal

Abandonment, neglect, modification.

•Merchant competitiveness. No ‘group mentality’.

•Economic value of ‘everyday’ commercial

structures. Lack of understanding.

•No concentrated field for commercial

revitalization.

•No centralized or organized efforts.

•No widespread interest to do anything.

Change would require….

Impression of value & perception of whole-

community benefit Preservation-based downtown revitalization for economic and community value

Broad buy-in Community, Business, Government

Would have to be results Visual, economic

Shift in thinking Localized

Trademarked, recognized brand

National movement

Signifies community prioritization

Proven results used today to

address new issues

Today

Texas: 89 designated programs Under 5,000

25 cities

5,001 – 20,000

26 cities

Mid-size cities to

50,000

22 cities

50,000+ urban

population

16 cities Entering 2017: Buda and Linden

Lufkin, 32 years

22 years 20 years

Corsicana,

30 years

New Braunfels,

25 years

Elgin, 25

years

Grapevine,

22 years

La

Grange,

20 years

San Marcos,

30 years Denison,

27 years

What is Main Street?

Historic preservation as economic

development

Economic Impact of Historic Preservation in Texas The state agency for historic preservation

Key conclusions:

Tourism: $2.26 billion in annual visitor spending & supports 79,000 Texas

jobs. (2013)

Texas Historic Courthouse Preservation Program. 63 restored,

9,600 jobs created. Positive impact on downtown revitalization.

Texas Main Street $3.4 billion

in economic impact

Reinvestment. $1,

federal/state incentive = $4–$5

of private sector investment

POLICY TOOLS USED FOR

MAIN STREET REVITALIZATION

2015 Incentives Survey / 75 reporting

Preservation ordinance - 48

Design guidelines - 47

Downtown TIF/TIRZ – 13

Downtown overlay - 35

Downtown Master Plan - 37

Local and/or National Register Commercial

Historic District - 50

FUNDING TOOLS USED FOR

MAIN STREET REVITALIZATION

2015 Incentives Survey / 75 reporting

Range of grant incentives value: $2,000 to $210,000

Type A economic development - 13

Type B economic development - 29

HOT - 44

Sales tax rebates/380 agreements -20

Tax abatement/freeze - 34 Revolving Loan Fund/low interest loan pools - 60 available sources (local banks,

EDC microenterprise projects, USDA/RBDG, EDA)

Façade, sign, paint grants - 98

Fee waivers/rate reductions -13

Loan guarantees (SBA)

Targeted programs: rent subsidies, roll-offs, roofs, structural,

interiors

Economic development and funding tools in the

Texas Historical Commission

http://www.thc.texas.gov/preserve/projects-and-programs/preservation-tax-

incentives/about-preservation-tax-incentives

Federal Historic Preservation Tax Incentives program: 20% income tax credit for the rehabilitation of historic, income-producing

buildings and a 10% income tax credit for rehabilitation of non-historic

buildings.

State Historic tax incentives: 25 percent of eligible rehabilitation costs, can be combined with federal, transferred. • State sales tax exemption on labor available for work to buildings listed in the

National Register of Historic Places.

Certified Local Government: assists communities in developing standards of preservation. Annual grants.

Texas Preservation Trust Fund: Created by the Legislature in 1989. Local incentives. County and local taxing authorities may grant property tax exemptions for buildings with state or local historical designations.

EXTERNAL TOOLS FOR MAIN STREET REVITALIZATION

Texas Capital Fund (non-entitlement)

Texas Department of Agriculture https://texasagriculture.gov/GrantsServices/RuralEconomicDevelopment/TexasCapital

Fund.aspx

Main Street and Downtown Revitalization Program (Oct. 1 deadline)

Infrastructure & Real Estate Development (monthly)

US Department of Agriculture (USDA) Rural Development

Programs (non-entitlement)

Sustainable rural downtowns

Stronger Economies Together

Rural Jobs and Innovation Accelerator Challenge

Rural Community Development Initiative Grants

Rural Business Enterprise Grant Program (RBEG)

U.S Environment Protection Agency (EPA) Brownfields

programs https://www.epa.gov/brownfields/types-brownfields-grant-funding

Low-Income Housing Tax Credits. Texas Department of Housing and

Community Affairs.

U.S Economic Development Administration. COG funding.

Tax credits National Register of Historic Places:

Individual property or district. Provides national

recognition of a property's historical or architectural significance and

denotes that it is worthy of preservation. Imposes no restrictions on

property owners.

Recorded Texas Historic Landmark (RTHL)

Can be topical, site- or property-specific

Main Street

National Register

downtowns:

Mineola (2013),

Denison (1983)

and Elgin (1996).

RTHL: 1905

Farmers State

Bank

Georgetown

Waxahachie Main Street Program 10 year study of private return on investment in response to local

government’s prioritization of downtown.

2002-2012: First 10 years, more than $100 million reinvested downtown.

Almost 79 percent was public investment: infrastructure upgrades,

construction of county buildings, public parking garage, and depot restoration.

2013: publicly funded projects completed. Private sector responding. Public

spending was minimal; private investment was more than $1.6 million.

2014: public sector reinvestment is dwarfed by the private sector. $3.3 million

private investment. $100,000 of publicly funded projects.

Through leadership demonstration of belief in downtown & by making

revitalization a policy priority in the early years, local government improved

market capacity and spurred private interest.

www.thc.texas.gov

downtowntx.org

Programs of the Texas Historical Commission

www.thc.texas.gov

Texas Main Street city designated in January 2015

http://ennistx.com/downtown-incentives

Ennis’ full approach to downtown revitalization

• TIRZ #1:

Downtown.

To fund

catalyst

projects

• Downtown

Master Plan

• Project

Downtown

Infrastructure

• Downtown

Development

Guidelines

Main Street

Rockwall Main Street community since 2009

$8.6 million citizen-approved bond project in 2012 to

strengthen the Historic Downtown Core. Completed 2015.

Connectivity, parking, accessibility, sidewalk enhancements,

lighting, landscaping

Case Study

Case Study

Case Study

MAIN STREET

REVITALIZATION

Array of strategic tools based on…

• true market understanding

• individual community realities

• possibilities and potential

• assets

• capability for measurable

outcome

• available resources (or

restructuring thereof)

• areas of need

• team centered approach

National Pilot

Façade

Improvement

Project

The

Main Street

Four Point Approach™

Identity,

pride,

recognition -

Promotion

Visual appeal,

physical

improvement-

Design /

planning

Achieving

economic &

quality of life

goals -Economic

Vitality

Leadership & influence

through organizational

structure

A preservation-

based economic

development

program

Entrepreneurship

Small and

independent

businesses in the

historic

marketplace

the environment (lighting,

walkability, traffic flow,

benches….)

preserve historic character

(design guidelines,

preservation ordinances…)

property stewardship and/or

enforcement (property owner

education, relationships,

codes)

beautification and aesthetic

enhancement (landscaping,

public art etc.)

Making downtown lively…

Retail Independent business

Heritage Celebrating history

Special & Signature events Bringing people downtown

Image building, branding Downtown’s cultivated image

Staffed, leadership-

driven local Main

Street organizations

with

volunteer activity

Policies, tools in

place

Sustainability

Measured

Returns Currently active Main Street communities

$2.6 billion overall

$897 million public investment spurred $1.7 billion private

25,000 jobs created

6,500 small businesses created

1.3 million volunteer hours

Build interest

Build belief

Create buzz - energy

Gain knowledge

Private + Public

Find a champion(s)

Organize

See the big picture without losing the details

Never say never.

Don’t start with ‘where’s the money’?

Understand property stewardship

Closing gaps

Growing an entrepreneurial community

Access resources

Downtown is a ‘historical site’

Downtown is a multi-faceted experience

Diversifies the economy

Shop Local occurs downtown

Walkable

‘Palette’ for tourism, arts, culture,

commerce marketing/advertising

Downtown can be connected with

promotion of specific visitor sites outside

of downtown to create a multi-

dimensional experience

S U

R

V

E

Y

R

E

S

U

L

T

S

Top

responses

The historic

nature of

downtown

I purchased

(30.3%) or

leased

(27.3%) a

property well

suited to my

business

needs

What is important for opening a downtown

business? 93 responses

S U

R

V

E

Y

R

E

S

U

L

T

S

To be in a community with an organization

focused on downtown (69%) To have reasonable financial expectations and

projections (62%) To have a business plan (55%) To be in a downtown with a well-defined “brand” that

attracts customers (55%) To have a point of contact within the city who can help me work

through the city processes (39%) The availability of financial incentives (38%)

‘Themes’ of the study:

An organization dedicated to

downtown is important

The historic nature of downtown is the

BRAND and the recruitment tool

Efforts to build business capacity is

needed

S U

R

V

E

Y

R

E

S

U

L

T

S

Main

Street

builds

upon

every

town’s

story

Grapevine, 33 years

Clifton, 21 years

San Marcos, 30 years

Collective Wisdom We’re better when we work together