Historic Preservation - Midterm

Clemson University CRP 8730 Economic Development Planning Midterm

Historic Preservation Act of 1966

A comprehensive Federal historic preservation legislation was passed and is the foundation for all preservation efforts today.

Gained recommendations from The National Trust for Historic Preservation

Historic Preservation Act of 1966 established

National Register of Historic Places, Advisory Council on Historic Preservation (ACHP), and funding for State Historic Preservation Offices (SHPO)

Factors that led to the Historic Preservation Act of 1966

Nationwide ongoing urban renewal efforts and the demolition of Penn Station in NYC despite protests

Biggest Crime in American Architecture

demolition of Penn Station

Penn Station

McKim, Mead, and White Beaux Arts design
The air rights were sold to build Madison Square Garden and create subterranean station

Action Group for Better Architecture in NY

group of protestors for Penn Station demolition created by Philip Johnson, Jane Jacobs and Eleanor Roosevelt

Demolition of Penn Station led to

the passage of the National Historic Preservation Act and the Landmarks law in NYC, which prevented the demolition of Grand Central Station

Advisory Council on Historic Preservation

council of both public and private sector members to advise the Pres/Congress on issues relating to HP, and developed national preservation policies

ACHP make up

23 members; 8 appointed by the President, 4 general members, 4 HP experts

ACHP national preservation policies

preservation initiatives (public/private partnerships, national incentive programs), outreach and education, federal agency programs (Section 106)

State Historic Preservation Office (SHPO) responsibilities

first point of contact

provides forms and regulations, maintains complete records of buildings/districts, processes nominations for the NRHP, assist with Section 106 process, administers Federal HP grants, advise local agencies, reviews applications for HP tax credits

National Park Service

Established in 1916 under the DOI
manages and maintains all Federally owned parks/landmarks/ sites;
reviews applications for conformance to The Secretary of the Interior's Standards for Rehabilitation;
Issues all written certification decisions for the NR and tax incentive/grant programs and transmits copies to IRS;
Develops and publishes program regulations and information on rehabilitation treatments

Section 106 Review Process

Required for all Federally funded projects that will impact properties that are listed on or eligible to be listed on the National Register of Historic Places

Section 106 Review Process asses

no effect, no adverse effect, an adverse effect

Section 106 review process assessment of an adverse effect

SHPO will consult to mitigate the impact; process does not have the power to stop work if the project has an adverse impact but funding can be withdrawn

National Register of Historic Places

a list of stock recognizing historic structures that were reviewed and approved by SHPO

National Register of Historic Places nomination process

nominated by anyone for districts, sites, buildings, structures, and objects that are significant to American history in terms of their architectural/ engineering, archeological, or cultural value

Eligibility for NR designation

Property must show both significance and integrity

significance

determined through four criterion, must fall into one but can be multiple

significance criterion A

events that have made significant contribution to the broad patterns of our history

significance criterion B

association with the lives of persons significant in our past

significance criterion C

- Embodies distinctive characteristics of a type, period
- a method of construction
- represents the work of a master
- possesses high artistic values
- represents significant and distinguishable entity whose components may lack individual distinction

significance criterion D

may or already have yielded information important to prehistory or history

integrity

determined based on 7 physical aspects that will convey its significance

a property cannot be consider significant if

it does not also have integrity

Aspects of Integrity

Location, Design, Setting, Materials, Workmanship, Feeling, Association

Types of Historic Designation

District, Site, building, object, structure

district

concentration, linkage, or continuity of sites, buildings, structures, or objects united historically or aesthetically by plan or physical development

site

location of a significant event, a prehistoric or historic occupation or activity, or a building or structure, whether standing, ruined, or vanished, where the location itself possesses historic, cultural, or archeological value regardless of the value of any existing structure

building

a building created principally to shelter any form of human activity

object

constructions that are primarily artistic in nature or relatively small in scale and simply constructed

structure

functional constructions made usually for purposes other than creating human shelter

three levels of historic designation

national, state, local

national designation

property has a historical significance to the entire nation.

Protection measures are limited to national/state projects.

state designation

property is significant to the history of the state/region, but not national significance.

Generally no protection, but it varies by state. (some have protection against adverse effects of state projects)

local designation

properties are historically important at the local level only.

Protection of these properties is provided by local ordinances/guidelines.

NR steps in Historic Designation registering process

National Register Nomination form submitted to SHPO;
SHPO begins public participation process;
Proposed nominations are reviewed by SHPO and State National Register Review Board;

Completed nominations are submitted to National Park Service for final review

NR DOES for Historic designation

The property is identified by its type,
assessment impact from Section 106 (only federally funded projects),
eligibility for federal grant funding,
eligible for tax incentive programs for income-producing properties,
and consideration is taken into account with agencies for development

NR DOES NOT do for Historic designation

place restrictions on private property rights,
automatically lead to landmark designation,
review for local, state, or privately funded projects,
guarantee grant funding

Common challenges in establishing and administering historic preservation ordinances

regulatory takings, procedural due process (5th amendment), equal protection (14th amendment), free speech (1st amendment)

regulatory takings

cites violations under the 5th and 14th amendment; provides protection against government action that is overly burdensome or confiscatory; issues of eminent domain

eminent domain

taking private property for public use; condemnation; just compensation

procedural due process

cites violations of 5th and 14th amendment; provides protection against government action that is arbitrary or capricious

Berman v. Parker (1954)

Berman owned a department store in a blighted area of DC slated for redevelopment under an urban renewal plan; seized the property under eminent domain for aesthetics; claimed it was a taking and violated the 5th amendment

Supreme Court held with DC

Significance of Berman v Parker

Challenged the idea of "aesthetics plus";
became precedent for demolition of blighted structures;
preservationists reinterpreted this ruling to save historic buildings, their aesthetics were reason enough to preserve

Penn Central Transportation Co. v. City of New York (1978)

Comp owned Grand Central terminal and proposed to build a 50+ story office on top of terminal; Grand Central was under NYC landmark law in 1965 so alterations go through NYC landmarks preservation commission; Commission denied proposal; Comp sued for loss of profit and limitations of economic viability of the property

Supreme Court held with NYC

Significance of Penn Central v City of New York

First Supreme Court ruling relating to preservation law, provided legal basis for enabling legislation for communities to establish regulatory controls over historic preservation, owners of historic properties were subject to these regulations

St. Bartholomew's v. Landmarks Commission (1990)

designated landmark in 1967 which was opposed by the church; in 1981 to bolster funds the proposed to replace community house with speculative high-rise building; landmarks commission denied; church sued for exemption under 1st amendment

held with NYC Commission

Significance of St. Bathrolomew's v Landmarks Commission

religious organizations were not exempt to historic preservation ordinances;
regulation of religious organizations is not a violation of 1st amendment

Eminent Domain and Blight

(Kelo v City of New London)
The interpretation of public use to include economic development in New London resulted in a handful of states (SC including) to prohibit eminent domain except to eliminate blight

Viollet Le Duc believed

important monuments and buildings should be rebuilt not necessarily as they originally were but as they should have been (ex. Santa Barbara)

Viollet Le Duc

a leading figure behind the French heritage approach in the 19th century, by reimagining a building by adding/ removing architectural elements.

Viollet Le Duc pinnacle design

his design for the missing spire and re-carved statues on the
west front at Notre- Dame

John Ruskin believed

older buildings should not be restored but remain untouched (ex. Seven Lamps of Architecture)

Mt. Vernon Ladies Association of the Union

led by Ann Pamela Cunningham was the first national preservation group that petitioned Congress to save Mt. Vernon; petition failed but group raised funds to acquire the property

Ann Pamela Cunningham

SC native that is credited with founding the organized preservation movement in America

Antiquities Act of 1906

established harsh penalties for destroying federally owned sites, such as parks and monuments
also gives President the authority to designate historic landmarks

America's First Five Military Parks

Chickamauga/Chattanooga;
Gettysburg;
Antietam;
Shiloh;
Vicksburg

Charleston

first city to establish a historic district with regulatory control

because of a proposed gas station

Historic American Building Survey

First federally funded program to document historic structures through FDR's New Deal

Historic Sites Act

Established the National Historic Landmarks program siting preservation was a governmental duty

leading principles of urban revitalization from Webster and Kinahan

- The New American City
- Place matters in economic and community development
- Anchor institutions
-Legacy Cities

The New American City

A paradigm shift for downtowns

Downtowns are now vibrant, dense, and walkable, accommodating a reduced version of land uses, targeting planning and revitalization efforts on entertainment, green space, and housing

Place matters in economic and community development

place-based practices

Unique built environments should attract the creative class through urban amenities, livable neighborhoods, and a strong sense of place (the idea that place matters)

anchor insitutions

long-standing ties to the urban core with a physical infrastructure firmly rooted in place which sets up potential partnerships or conflicts

legacy cities

places that after decades of industrial decline are experiencing entrenched population loss, low residential demand, high abandonment, and extreme poverty and unemployment

Williamsburg Buildings key players

Dr. William Goodwin, John Rockefeller

Williamsburg buildings significance

preservation of an entire community;
interdisciplinary efforts and required skills of multiple groups;
led to the professionalization of preservation practice

National Trust for Historic Preservation (1949)

quasi-governmental organization to acquire and administer historic sites

launched programs such as Main Street, Most Endangered Places, and National Treasures

Research and Documentation of Historic Properties entities

former owners, original architect, city directories, building permits, Sanborn Fire Insurance Maps, title searches

Types of intervention

preservation, restoration, reconstruction, adaptive use, conservation

preservation

maintenance of property without significant alteration to its existing condition

restoration

returning a building to its condition at a specific time period

reconstruction

rebuilding a structure, usually done for contextual reasons

rehabilitation

repairs, alters, or adds to preserve the structures historical, cultural, or architectural values

The gospel for appropriate rehabilitation practices

The secretary of interior's standards for the treatment of historic properties

adaptive use

same as rehabilitation but assigns a new use to the property

conservation

specific materials and the management of cultural property for the future; requires research and education for treatment and preventative care

Tax credit

lowers the actual amount of taxes owed

tax deduction

lowers the amount of income subject to taxation

Federal rehabilitation tax credit

federal income tax credit equal to 20% of the cost of certified historic structures that are income producing
can stack with AB, Textile, SC rehab; bailey bill available

expenditures qualifying for rehabilitation tax credit

(capital in nature and depreciable as real property)
renovation cost of existing building, redevelopment costs of existing building, demolition costs, environmental remediation, site improvements, expenses that double the square footage

expenditures not included in the rehabilitation tax credit

acquisition cost, financing fees, surveying cost, landscaping and pavement, non-attached accessories, marketing, new construction, furniture, and appliances
demolition expenses for buildings on NR, expenses incurred prior to NOT to rehab site, expenses that more than double the existing square footage

utilization period of the Federal rehabilitation tax credit

Owner owns the building for five years after the rehabilitation or must pay back credit

certified historic structures

listed individually in the National Register of places or in a registered historic district and certified by the Park Service as a historical significant district

registered historic district

listed in the National Register or local district that is certified as substantially meeting all the NR requirements

who can use federal tax credits

Individuals with substantial passive income from pass through entities;
individuals in the real estate profession with active income;
C-corporations that are not closely held or personal service corps

Secondary Market for Tax Credits

large institutions will purchase tax credits directly from developers/owners but generally on large projects where credits are a min of $2 million

Pricing Federal Historic Tax Credits

between $.88 to $1.04 for $1 of tax credit depending upon size of project, adaptive use, and developers record and location

Guarantees and Special Provisions Required of Developer for sale of tax credits

preferred return to purchaser is typically 3% on investment; personal guarantee is required; may require annual audit fees

SC Historic Rehabilitation Incentives Act

Taxpayers who qualify for the 20% federal income tax credit may also qualify for a state income tax credit of 25% of their rehabilitation costs --
up to $4 million Qualified Rehabilitation Expense or 10% unlimited
can combine with textile and abandoned credits

Pricing State Historic Tax Credits

between $.55 to $.58 per $1 of tax credit, typically discounted bc of the impact on corporations federal tax returns (state taxes are deductible with federal returns)

SC Textile Communities Revitalization Act

properties associated with textile industry (textile mill site);
25% unlimited credit to property tax credit (rehab cost) or income tax/ license fee credit;
80% closed continuously for at least 1 year, or non-operational as textile facility;
may be subdivided with separate developers;
includes only areas within the boundaries of the manufacturing/dying/finishing operation;
unless the property was acquired pre-2008, 1,000 feet excludes ancillary services areas

distressed areas the ACOG follows

tracts designated by the US Economic Development Administration, Appalachian Regional Commission, or Opportunity Zones by the State Governor; tracts eligible for New Market Tax Credits; Appeals are available

Exception to the textile footprint rule

if the textile site lies in distressed area, designated by COG, then footprint rule does not apply

SC Abandoned Buildings Revitalization Act

State of SC tax credit for 25% that can be applied against state income taxes and license fees or property taxes; 500k max per site (can be multi-sited); final rehab costs must be greater than 80% and capped at 125% of amount in Notice of Intent

Notice of Intent states

building site, unit, or parcel location; new construction; acreage in site; square footage of existing buildings; estimated expenses (QREs)

abandoned building

66% (2/3) or more of the space has been vacant continuously for 5 years

takeaways from Josh Workman

projects may qualify for multiple types of credits;
timing of NOI is extremely important (textile & AB credits);
Qualified Rehabilitation Expenses differ among acts;
risk of demo before checking into tax credits;
Tax Credit Marketplace Fund credits are sold locally, investors savings are spent locally

recent SC legislation

technical correction to the new footprint rule;
fee for certifying historic rehab tax credit;
extend the provisions of the SC AB rules until 12/31/25, railway easement;
pass through trade and business income;
comprehensive tax cut act of 2022