Benefits of having a Historic District
A quote we hear fairly often in the Main Street network states: “Historic Preservation is
Economic Development.” While Main Street programs put on events and make our
buildings and streets look nice with new paint and façades as well as benches, banners
and flowers, the bottom line of Main Street is economic development. We want the
historic buildings in our downtown to be alive with businesses that attract customers. We
think it is important to put our time, money and resources into keeping the heart of our
town alive and well. And, it all starts with the built environment.
According to Donovan Rypkema of Place Economics, every empty downtown building
means $250,000 in lost sales, $17,500 in lost sales tax revenues, $15,000 in lost rent,
$66,000 in lost bank loans and $24,750 in lost business profits. This is why Tunica Main
Street and 50 other Main Street programs in Mississippi make the Main Street approach
to downtown revitalization a very effective economic development tool in the state.
Partnering with the state historic preservation office, the Mississippi Department of
Archives and History, and the local preservation commission, enables the city and Main
Street to take full advantage of programs that help us both preserve and develop our
historic core and heart of the city.
Designating a local historic district is one more step in that direction. A local historic
district is a group of two or more structures linked by historical development. A local
historic district is created by a local government that passes an ordinance outlined in state
law. By creating a local historic district, the historic character of the community will
be better protected. When a historic building or district is also listed on the National
Register of Historic Places, it becomes eligible for significant federal and state
rehabilitation tax credits.
Many towns are taking advantage of their historic districts, such as Woodville, Miss. A
couple rehabilitated the former Woodville Hotel, an 11,000-square-foot building located
across the street from the Wilkinson County Courthouse on the Square. The $1.3 million
project resulted in six living spaces, a guest apartment, three storefront shops and a cafe.
Check out what they did at http://www.woodvillelofts.com/.
Another example is Water Valley, Miss. that acquired its National Register historic
district in 2012. Water Valley Main Street Association is currently working with building
owners who are renovating or considering renovating their commercial buildings, armed
with federal and state tax credits, available through the historic district designation. These
significant tax credits can have up to 45% renovation expenses—roof, plumbing, A/C,
wiring, interior work, windows and walls—back in your pocket. This is a significant
incentive for rehabbing commercial buildings and putting them back in service. Another
focus is adding upper floor apartments and using that mostly empty space downtown and
bringing it back to life with another source of cash flow. Plus, you get that magical effect
of downtown being “alive” 24/7.
The city of Tunica has a lot going for it. As a Certified Local Government (CLG), the
city has already adopted a preservation ordinance and established a preservation
commission that is eligible for CLG grants and assistance from the Mississippi
Department of Archives and History. Tunica Main Street is a program of the Mississippi
Main Street Association, which is a program of the Mississippi Development Authority
and partner of the Mississippi Department of Archives and History. A public-private
partnership is key to making downtown revitalization work, from the national and state
down to the local level. Designating a local historic district is one more piece in the
economic development puzzle and to safeguarding the future wellbeing of our
community.
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The findings of recent comparative studies of the effects of historic district designations
over time, conducted in many different regions of the U.S., converge on a few key
findings:
•Historic district designation typically increases residential property values by 5-35%
per decade over the values in similar, undesignated neighborhoods.
•Both nationally designated historic districts and locally designated historic districts
outperform similar, undesignated neighborhoods, but districts that carry both local
and national designation experience the highest relative increases in property values.
•The values of newer properties within designated historic districts increase along with
those of older properties.
•Local historic district designation decreases investor uncertainty and insulates property
values from wild swings in the housing market.
• Increasing property taxes due to rising property values in historic districts designated
at the national or state levels can be offset by state and federal tax reduction programs.
• The tax incentives also provide alternatives to demolition of historic homes, thereby
providing stability to the built environments of neighborhoods.
• Historic district designate on leads to increased levels of home ownership and longer
residence by both homeowners and renters.
• Designated historic districts tend to have higher rates of participation in neighborhood
associations and improvement projects, which protects shared spaces from decline.
• Proposed exterior renovations, demolitions, and new construction in locally
designated historic districts are reviewed by neighborhood advisory groups and
historical commissions, thereby ensuring community involvement in neighborhood
planning.
Source: Jonathan Mabry, Ph.D., “Benefits of Residential Historic District Designation for
Property Owners”
http://www.preservationnj.org/site/ExpEng/images/images/pdfs/Historic%20District%20
benefits_Mabry_%206-7-07.pdf