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To introduce Cynthia, as I said, I don't give a lot of bio information but I did
just learn something very interesting. She is a graduate of the University of Virginia
and in fact, from the Architectural History Program, and I learned last night that that
program wouldn't have existed if it wouldn't be for our speaker tomorrow, who was the first
graduate of that program, right Brown? He will tell you he graduated first in his class.
He was the only graduate.
Cynthia came to Philadelphia in 2008 and she hit the ground running. There is absolutely
no doubt that programs that were already partially underway were going to get completed. Some
of them that were controversial got completed. We had the President's house, which we will
see and talk about tomorrow was completed. One interesting project that I was very interested
in, the Germantown White House, the Deshler-Morris House. Back a little over thirty-five years
ago we restored that building and it needed restoring again, not because we didn't do
it well, but I hope it's a lesson that preservation is not a onetime fix at all. Preservation
is in fact, an ongoing process and we have to realize that.
But the Carpenter's Company always has been fortunate. Since Charley Peterson was on the
other side of the fence, when Charley Peterson was with the National Park Service, he negotiated
a rather unique agreement between the Carpenter's Company, the oldest extant trade guild in
America, a privately held institution, maintaining Carpenter's Hall, but they would remain a
privately held institution while the National Park would take over all the landing ground
around it. An incredible relationship I sometimes quip, and I told Peter Jennings this when
he was down to research a book he unfortunately was never able to finish, I made the snide
comment that, "Well we sometimes feel like we're the epitome of free enterprise in America,
we're privately held but surrounded by the federal government." But the truth of it is
what an incredible relationship we have and how fortunate we are with Cynthia and her
entire staff. In my opinion the working together and helping each other is something that is
a vital lesson for us in America today. Government can help and be a vital partner with all of
us. We just have to find the right way to do that.
Now, Cynthia's going to talk to us about the past, present, and hopefully the future of
tax possibilities but I want to suggest that Cynthia, in having worked with her on these
programs, Cynthia is the epitome of how we can work together, government and private
enterprise. So Cynthia, thank you.
Well, good morning. I feel like I'm in great company and Charley you really are too much
with your introductions. When we were talking about this Preserving America Program we thought,
and it wasn't even my idea, but needed to talk about the tax incentive program because
it's had a huge impact, individual initiative, all the wonderful projects that have gone
on since Pamela Cunningham first worked on Mount Vernon in 1859, have preserved much
of America. But it got a huge ramp up in the late seventies with the tax incentive program.
Since the program began in 1977, over 58 billion dollars has been invested in 37,300 projects.
I actually thought it was more than that. I worked in the Tax Incentive Program from
1980 to 1990 and it seemed like I did that many myself, and I have colleagues in the
room, I know, who worked on this program, it was fast and furious, wasn't it? Both at
the state level and at the federal level. It's been a huge boon for housing units, particularly
in major cities and particularly in underappreciated neighborhoods I would say.
It made historic preservation people have said more than a historic house or monument
concern, it's been dubbed the democratization of the movement, and I must say that not everyone
thinks that the results are 100% positive. Because they are rehabilitations, as John
was saying, there are all these different kinds of preservation projects from restoration
to rehabilitation and even that word adaptive use. The charge is that the building must
be an historic building, the rehabilitation must preserve the historic character of the
building but that leaves a lot of room for judgment. So private sector investment has
been steered toward historic structures. I think that's a very important point and here
in Philadelphia, of course that was too late for buildings like the Gimbels Department
Store building. I never saw that but I mourn the loss of it and the empty space on Market
Street. But it was in time for the Lit Brothers building that was struggling, struggling to
find economic viability. It was in time for the Wannamaker building and a host of others
big and small in Philadelphia.
So I'm going to show you a range of buildings with new uses. In some ways it's almost a
stealth program as I was looking at various examples. There are lots of buildings in Philadelphia
that you would never know received the benefit of this 20% tax credit and it being a credit
is a big deal for lots of investors. We all know we drive social policy with our tax code.
The mortgage is a deduction right, the interest on your mortgage is a deduction so that it's
a tax credit is substantial amounts of money. It's driven substantial investment.
This is Fort Baker, which is actually part of the Golden Gate National Recreation Area
in Sausalito. It was an historic army port near the Marin Headlands, wonderful real estate,
always owned by the federal government. There was a partnership that was set up. This is
actually a great example of integration of historic preservation, modern amenities and
green performance. Forty million dollars of private investment here. The 20% credit can
be syndicated through partnerships or long term lessees and that's why you'll see actually
some churches or some government owned buildings have been subject to these rehab projects.
Combined with state incentives in many instances, a phenomenally successful program. It saves
buildings, it increase property values, promotes investment, creates jobs. It created a job
for me. It stimulates other rehabilitation projects. Success does breed success. Revitalized
smaller towns and Main Street communities.
Here's a project in New York, 2.1 million dollar rehab costs. Somebody got a credit
of $420,000 that you can carry backward or forward if you can't take it all in one year.
It's really very friendly credit.
Sears Roebuck & Company Powerhouse in Chicago. Again, this is a redundant twentieth century
building, 55 acre site. The latest part of the project involves converting the powerhouse
into a technology and learning center, part of a charter high school. It's in an economically
disadvantaged neighborhood but this is literally a beacon for reinvestment and renewed life.
It's a 31 million dollar project. They were careful to keep the open spaces inside there.
Closer to home, we've got the Federal Building here in Old City, it's an important building
and example of Greek Revival commercial style architecture you may have never seen before.
We've got a lot of these but that's what I mean by the democratization of the preservation
movement. It was built in 1925 as a warehouse with some retail and was depicted in a panorama
from 1860. I don't know if you can see that or not. The owners used the federal tax credits
in 2009 to convert it to an apartment building with retail on the ground floor. It's got
that cool opening through to the back that was preserved. I would say that was a character
defining feature that needed to be preserved.
The main branch of the post office here in Philadelphia, 231 million dollar investment.
That's a staggering number. Just recently completed and you all may have remembered
seeing it in the news. Character defining features retained, particularly the postal
service lobby and it currently houses the IRS.
Hotel Palomar. Again, I'm sure you all, those of you architecturally connected in Philadelphia
recognize this as having been the Architects Building in Philadelphia. Twenty-four story
art deco office tower from 1931. Kimpton Hotels purchased it and converted it into a boutique
hotel with 230 rooms with an investment of over 50 million dollars. It was completed
in 2009.
Then on the other coast, Ford Motor Company assembly plant has been rehabilitated respecting
the original passive solar design. The owner's successfully and this one again, integrated
contemporary applications of green performance and sustainability.
I just thought I'd show you some random details that do get preserved, even restored in these
tax incentive projects. As I said, some of the rehabilitations have been controversial.
I know I've heard that said about the Wannamaker Building in Philadelphia and some other ones
that it was too bad that so much had to be compromised, but in many cases we have seen
wonderful restoration work.
PSFS, I think we might hear some more about this later on in Philadelphia was a bank,
now is a hotel. Again, I've heard some people regret some of the changes there, but the
building is still there as a landmark for all of us.
Entire historic districts are benefiting. This is nearby in Salem, New Jersey. These
buildings were in really deplorable condition and are now back in service. Contributing
to the statement that the tax incentive program is the most effective federal program to promote
community revitalization in some of the most down trodden and disinvested neighborhoods.
Here's another one from Springfield, Massachusetts. And you've all driven through cities. You
know these buildings are everywhere and really thanks to the tax incentive program, they
have been put into healthy conditions and put in continued use.
Kentucky, Baltimore, Maryland, and I think we've gotten more sophisticated about defining
historic character and knowing what is possible in these buildings and the quality of rehabilitation
projects has improved from sometime in the nineties, eighties when they may not have
been as careful to preserve everything that we might be able to.
Repair rather than replace, the cardinal rule of the Secretary's Standards. Window trim
and plaster, in this case, character defining features, nice restoration work. They may
have dropped ceilings in another part of the building but they were careful in the parlor
to do a good job. Retain historic materials and features, retain the historic character.
The open plan was very important for this office. Previously a printing plant but able
to be adapted as an office.
Compatible treatments. Windows, this is just one of any number of pictures of windows.
They are probably the most frequently troublesome issue. The industry response has been to provide
products that better meet insulation needs and retain the historic character of the building.
I thought I'd conclude with a slide about Pennsylvania, ranked eleventh in the nation,
with twenty-one approved Part Two applications for last fiscal year, ranked fourth in the
nation, 220 million dollars approved for the tax credit program just in 2010. Well I think
it got the big boost from the post office building. So this is Countrywide, 3.42 billion
invested and then the number of housing units is very significant with over thirteen thousand.
So public policy does drive behavior. I think this has overall been a fantastic investment
that the private sector has made and it really has helped preserve the
[ ? ] of many parts of our country. Thanks.