PART 3 PRESERVATION MONTH 2020 SERIES

LAST WEEK WE PRESENTED PART 2 on How to Preserve a Building. Part 3 of this series focuses on the economic benefits of preservation. If you’re reading this, you likely already know the qualitative benefits of preservation for communities – aesthetic appeal, educational opportunities, sustainability, and revitalization – but there are also proven quantitative benefits, including economic ones. Although Jane Jacobs – the innovative urbanist and activist – made statements that were not initially supported by factual data, many of her observations have since been corroborated since she first made them in the mid-twentieth century. Specifically, in her ground-breaking book The Death and Life of Great American Cities, Jacobs stated regarding old houses: 

“Old ideas can sometimes use new buildings. New ideas must use old buildings.”

Most writers who’ve analyzed her work and this quote agree that her point was that we rely on the past to build the future, and must refine what worked before in order to meet new needs. In another way, this idea also refers to the reality that businesses (especially newly-launching start-ups) or homeowners need older buildings for their often lower price-points and economic benefits, compared to newer (often more expensive) construction. So, the benefits of old buildings for “new ideas” is both conceptual and practical. Read on to learn more about the economic benefits of preservation.


Photo by Brandon Jean on Unsplash

 

QUANTITATIVE BENEFITS OF PRESERVATION:

The following categories are small a selection of some of the most commonly examined areas of benefit, although many other representative areas of value have been studied and described, including those listed here.

  • Real estate value. Historic designation is a ubiquitous component of preservation in cities and neighborhoods, and one of the most common means of preserving multiple dwellings or buildings. However, common negative assumptions about formally-designated historic districts abound; fear of restriction and violation of property owners’ rights – including untenable regulations and decreased property value – are concerns typically voiced by those opposed to preservation and historic designation. While many preservationist and urban experts agree that more rigorous study must continually be done to examine these concerns, valuable information has been gleaned from existing data analyses that reveals the economic benefits of preservation, and some of the findings do contradict these negative assumptions and arguments against preservation/designation. Community historic preservation has been shown to increase real estate value. Place Economics noted that repeated studies over the past 30 years refute the aforementioned arguments against historic designation and preservation in terms of impact on property value.  While they agree it is often true that increased property value equates in increased property taxes (which can be challenging for some homeowners), simultaneously, they found that the “cash flow problem is offset 40 to 67 times by the increased wealth.” Based on a 2012 study in Pennsylvania specifically, an analysis of 3 separate Pennsylvania historic districts revealed significant property value increases. Homes in designated historic districts realized greater value than homes in non-designated areas, had immediate 2% value increases compared to other homes, and appreciated at an annual rate of 1% higher than other homes. This positive effect spread to homes near the designated district, with those prices increasing 1.6% with each mile closer to the district. 

 

  • Local business promotion/New jobs. Place Economics discussed not only how small businesses are a boon to cities, but also focused on the advantages of small and local businesses housed in historic districts and historic buildings. Among those old-building benefits they point to attractive, small spaces, and competitive rent prices. They cite various cities where a large percentage of small or local businesses are located in historic districts. In some cases, those same districts account for a larger percentage of female and minority ownership. Many of these historically-located businesses are start-ups, which in and of themselves typically account for a significant percentage of new job creation in many cities. David J. Brown of the National Trust for Historic Preservation also noted the power of preservation itself for creating new jobs, including those that cannot be outsourced.

 

  • Neighborhood diversity/Affordable housing. While many still assume historically-designated neighborhoods are made up of upper-class, mostly Caucasian people – and while that is still the case in some places –  there are increasing exceptions. Place Economics shared several illustrative cases of diverse historic neighborhoods, in terms of racial, ethnic, and economic heterogeneity. A related point is that this diversity allows for more affordability in some of these districts, another contradiction to the stereotypical view of over-priced historic homes, and are credited with being part of the solution to lack of affordable housing in cities. Donovan Rypkema discusses old buildings and affordable housing in-depth.

 

  • Sustainability. We’ve discussed the sustainability benefits of preservation numerous times over the years, and recently were fortunate to discuss these things more directly during a podcast interview with Amalia Leifeste and Barry Stiefel, authors of Sustainable Heritage: Merging Environmental Conservation and Historic Preservation. Place Economics also cited several pieces of literature on the topic, in addition to Leifeste and Stiefel’s book. A summation of their cited findings indicates that compared to new construction and development (even when new construction uses allegedly “Green” or sustainable new products), historic buildings not only contribute less to pollution, waste, and use of resources including energy, they have saved hundreds of thousands of dollars. 

 

  • Heritage tourism. Place Economics reports that “Consistent findings in both the US and internationally indicate that heritage visitors stay longer, visit more places, and spend more per day than do tourists with no interest in historic resources.” Heritage tourism as an industry contributes significantly to jobs for locals as well as revenue for the local economy, as the services these tourists consume extend beyond the heritage tourism services alone. These other services include local lodging, food and beverages, local transportation, retail purchases, and entertainment. PHMC’s economic report for Pennsylvania also examined heritage tourism, and included a review of 3 sets of locations which collectively accounted for 32 million visitors annually, as of 2011. An estimation of local expenditures from heritage tourism visitors in 2010 indicated visitor spending accounted for $1 billion annually for Pennsylvania, in the previously-mentioned service categories. 

 

This is by no means an exhaustive guide, but we hope this general overview will give you a sense of some of the most pertinent economic benefits of preservation, historic designation and adaptive reuse. We also hope it will encourage you to explore the topic further on your own. For more in-depth study, you may refer to some of the following resources:

 

Next week: PART 4 OF THIS SERIES focuses on the Substitute Materials.

PART 2 PRESERVATION MONTH 2020 SERIES

LAST WEEK WE PRESENTED PART 1 on Why Preservation Matters. Part 2 of this series focuses on preserving or saving a building. It’s one thing to read and learn about preservation, and it’s a whole other thing to actively do it. While there may be limitations as to what one can accomplish, there is also so much that grassroots efforts can achieve. As the often-repeated quote attributed to Margaret Mead goes:

“Never doubt that a small group of thoughtful, committed, citizens can change the world. Indeed, it is the only thing that ever has.”

Let’s assume you’ve noticed a building that needs an intervention, or someone has announced plans to develop land a historic farmhouse sits on … all is not lost. Read on to explore steps you can take to preserve a building.

Denn House, prior to restoration.

 

GUIDELINES FOR SAVING A BUILDING:

  • Manage your mindset. It’s important to note that saving a building is not easy and not always successful; therefore it is best to know this and the intensity of the process going into it so as not to set yourself up for disappointment if your attempts to save a building are ultimately unsuccessful. First, consider why the place matters to you and why it matters to others; The National Trust for Historic Preservation includes information on the philosophy of why old places matter, and tips on managing your expectations. Determining the practical reasons to save a building can strengthen your own resolve and provide practical arguments when presenting the plan to others.

 

  • Be a history detective and know the threats. It is also essential to know the history of the building, its significance, and anything that poses a threat to its preservation. That National Trust discusses steps to researching, and Wolfe House and Building Movers Guide for Saving a Historic Building also provides suggestions to determine a building’s significance and discern types of threats.

 

  • Determine the building’s future/ongoing purpose. If you have the power to help decide a building’s future or ongoing purpose, or simply want to share reasons the building could benefit the community so that others can see why it’s worth saving, Wolfe House and Building Movers’ Guide recommends determining its possible uses and proposing a plan. The previously-mentioned guide from the National Trust can assist here as well. It is likely much easier to determine the building’s purpose if you are the owner, but even if you do not own it, you can help provide suggestions. It’s also important to decide how to save the building. Wolfe’s Guide also includes information on methods for saving a building.

 

  • Be an advocate and find help. The National Trust first recommends seeking help and support and getting the word out at the grassroots level before taking it to community and government leaders. They also share other ways to spread the word, including the This Place Matters campaign. Gathering community support strengthens the stance that the building is worth something to the community, and therefore carries more weight when you finally do present the project to leadership. Once grassroots support is established, the National Trust and Wolfe’s Guide both share information on sources of assistance, including agencies and governmental organizations at the local, state, and federal levels. The National Trust also includes a list of resources for preservation. Finally, sharing past successes, such as sharing videos of other successful preservation projects, as offered here by the Pennsylvania State Historic Preservation Office, is another way to support your stance on preserving a building.

 

  • Secure funding. The National Trust and Wolfe’s Guide also both include information on how to secure funding or raise money to finance a preservation project. 

 

  • Apply for historic designation AND/OR seek to establish a preservation easement. If you determine that historic designation is an option in the case of your building, the National Trust provides information on many benefits of historic designation at local, state, and federal levels such as protection, funding, and tax credits, as well as suggestions on how to go through the process. If you have the power to do so – usually if you are the owner of the building – seek establishment of a preservation easement as well. The National Park Service discusses easements in detail, and the National Trust indicates that these can be in place in addition/act as a supplement to designations, as they use private legal rights of property owners unlike designations that act at the level of government. Easements – if designated as perpetual – are the only guarantee that the building cannot be demolished or altered significantly in the future. These terms go beyond the protections that a designation can provide. 

 

  • Amplify your reach. Preservation is local. It is also best done as part of a group of like-minded individuals, in a way that works with systems that are already in place.  If you want to ensure that buildings are saved, getting involved with your local preservation group and/or local government is the best way to make certain there is a review process before demolition is allowed to proceed.  You can check your local municipality’s zoning ordinances to  see if historic structures are addressed.

 

 

 

Next week: PART 3 OF THIS SERIES focuses on the Economic Benefits of Preservation.