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Hans thank you very much and thank you all. I am so stunned
at the size of the audience that OU and the Institute
for Quality Communities
has garnered here so congratulations to all of you.
and uh... participants and you for coming
i'm gonna talk to my little niche of the world about economics and historic
preservation but that's not usually how we've thought about historic preservation
people
become preservation advocates for reasons for cultural reasons or
educational reasons are social reasons or aesthetic reasons and many other of the
values
that our historic resources have but in more recent years
and then an expectation that in fact
preservation has to demonstrate an economic value as well
What I'm going to give you this morning
is really how that takes place and some factoids from a dozen or so
studies around the country in different areas of economic impact of historic
preservation
and while there's lots of them the kind of big measurables are these
the jobs
household income created simply by the process of rehabilitating historic buildings
the impact of historic districts on property values
the incremental difference of heritage tourism over tourism in general
environmental impact-a new study area in historic preservation
the social impacts the role of historic preservation in downtown revitalization
and then this broad issue of economic competitiveness
I'll start with jobs
there is
has been in tax law in the u_s_ class it's a nineteen seventy six in all
consump
over the years since that but there's been a federal rehabilitation tax-credit
program
uh... reward for appropriately rehabilitating start buildings
and over that thirty-year period
bloomberg thirty-year period between nineteen seventy eight and two thousand
eleven
that has cost the taxpayers through what's called up
a tax expenditures cost about nineteen billion dollars in
in credits have been giving out uh... to people
who've done start preservation projects
those projects however have been responsible for the creation of two
point two million dollar jobs and if you take the first number in divided by the
second
cost per job
eighty-nine dollars
stimulus program had to have a republicans were wrong to sing we didn't
have it
democrats were wrong but they spend it on but using the
white house is numbers not make it builds on a mini bonds
eight hundred seventy eight billion dollars
so those of you who are in graduate school today he will be spending the
rest of your lifetime paying off the bales of that stimulus program right or
wrong
card jobs identified by the white house as having been saved or created three
point six million
cost per job
two hundred forty four thousand dollars
i want one of those jobs so where is the effective use of scarce resources
it's first
how did the list cannot rutgers university is done the analysis of this
over over time
and he starts out with that said already this cost the taxpayers nineteen point
two billion dollars to have people fiction uphold buildings
but that program generated
revenues backed into the federal government
of twenty four point four billion dollars
how many federal government programs in fact generate more revenue for the
federal government that cost the federal government
the answer to that question is damn few
and this is one of them
uh... reader study a couple years ago and in georgia
about how historic preservation activity in georgia has created jobs but also how
measures
uh... against other kinds of economic activity in the state of georgia
our georgia
friends and taxpayers in georgia just spend a few years ago a couple silly in
dollars
are tracking an automobile manufacturer
fine they can do it's their money
but a million dollars worth of automobile production in the state of
georgia creates three-and-a-half jobs in the city of georgia
air transportation in you'd had to fight through valente airport where the
disease in the world but a million dollars worth of
air transportation expenditures shows plane tickets
million dollars of those creates eight point seven jobs in the state of georgia
rehabilitate historic buildings in the state of georgia
for a million dollars what does that create eighteen point one
where is the real economic development
we heard uh... we heard about
property values immunity going to come back to that
but the second broad area of
preservation economic impact is the role of local historic districts on property
values and uh... dubuque ia three one of the cutting edge cds in terms of
comprehensive sustainable development
in america looked a few years ago a property values
historic rehabilitation property values have fifty one percent the proper
historic properties next door to those projects up and uh... nine and a half
percent
all the properties went up five percent
but they're not historic properties in downtown debut
pop three and a half percent
great study done by it
connected modeling firm again
a philadelphia
look at the properties in national register districts in the state of fill
in the city of philadelphia over thirty year period
and found that
properties with in national register of historic districts oak
value as a whole in twelve
at about fourteen point three percent
but for those few local districts
dorm regulated that has rules and regulations which the national restless
tricks do not
in fact man at the place premium of twenty two point five percent
i know some of you probly service staff or on members of local preservation
commissions and i hate to break your heart
people are not paying a premium for the right to go on here before you go she
roofie preservation commission
they're paying the premium
for the confidence that the lunatic across the street can't be doing
something to his house is going to have an adverse impact on your house
i'd also point out some great about and learned a lot in chris's piece intention
and and safely say these great to neighborhoods
on the carpet reading closely in neighborhoods one columbus one inventor
they're creating a price premium
he didn't mention possible for stored neighborhoods snot mexican that want to
talk about
walkable urban places
where that's already there in fact isn't historic neighborhoods
uh... one of the great statesman from fact another active norman a star john
build room with university of lovell
look at all of the neighborhoods in the city
in the uh... c_d_ of mobile
and look at
on linear regression basis so he's talking about all variables weather was
only one variable x
and that was was it u_n_ or was it not been in local historic district
and what he found his those that work in the local store districts all for a
premium
between fifty nine sixty seven thousand dollars
and were went up uh... appreciated twenty one percent more than the rest of
the market
again it's a little bit convert to add you might hear save alters more
regulations that's going to adversely affect property back
in fact
study after study after study in all places different methodologies all of
the country mechanistic other way around
is that create protection of the context
that's creating the economic premium
but of course it was our good economic fears what about boundaries we've been
in real estate economic chaos is two thousand seven
so student might at the end
look at comparable neighborhoods in the city of philadelphia
over a twelve-month period in the midst of this real estate
chiapas
took six historic districts if you look at comparable
neighborhoods usually side by side
but that were not local historic districts similar building stock
similar economics similar demographics and what did
what did she learned that in fact the foreclosure rate was half
in the local store to fix but it was in the comparable neighborhoods
now i'd like to say well ask his people live in stored neighborhoods are never
lose their jobs or get a divorce you get financial trouble that's not yet
issue is if i get in financial trouble
because the market is more stable i can get redo that house
before it goes into foreclosure well
you graduate students sometimes think that the professors of hearing teach you
a tape and i learned more from ice cubes and ever learn from each and i like this
methodology so much we did it
took at the connecticut
where we did a study of local story districts in four cities around
and found virtually the same answer
that in some of these are very rich places some of those are real struggling
places but that the rate of foreclosure in local historic districts was passed
of what it was in the rest the community
the third area
the role of
historic preservation in heritage tourism
now my goal in life disturb
break this automatic assumption of
if you're talking about historic preservation economic and must be
talking about heritage tourism
well there's lots of contributors on the net but it does have a had
visitors stay longer they visit more places and they spend more per day
caricatures and other kinds of tourists
uh... international visitors coming to the u_s_ two point six million more went
to a historic place in my cat disneyland kind of places
four times as many went to historic place and went to a casino fourteen
times more people which one is toward international visitors
what when story place to play golf
in georgia by the study that just eaten jordy huge tourism industry
but just because there are two jb abortion of the poorest of the hair of
the tourism industry in georgia
is a hundred seventeen thousand dot dot jobs
and two hundred four a million dollars in salaries and wages
civil war battlefields
founded talking people are going to battlefield not doing too much to spend
money on there
but they're having a huge impact
and those are local economies twenty one million state taxes and twelve million
in
in local revenues five dollars visitors
uh... per visitor goes to the state tax returns one we have state government
struggling on how to pay the bills
we had a look at what generates those in heritage tourism is one of those
then this newer area
ob gyn research of
that connection between historic buildings and the environment i think
there's a building in downtown hartford connecticut
locates nice building
for ken asylum street and a developer all of the building and he went and
applied for demolition permit and the cd turned him down
he said okay im gonna film i know that you are going to give the stupid
building away to somebody who's gonna create low-income housing
and see how you like and what to poor people in your
sorely needed
gave it to a enlightened non-profit low-income housing developer
they took in the we develop this uh... property
dot historically ability to tax credits also about low-income housing tax
credits also by the way dot leed certification
and uh... it is a hundred percent four it's about half market in half
low-income
undistinguished one units
uh... and both list have waiting lists but we said already
forget that
what if the city of said go ahead turn ons can't build
what would betterment well energy that's already into that building embodied
energy six hundred sixteen thousand gallons of gasoline
ten thousand dollar gallons of gasoline just the whole the crap away to the
landfill
toward distant debris from tearing down that one building would have been
equivalent the twenty one days of all the trash generated by all the people
who live in hartford connecticut
milo favorite factorial
we all say those aluminum com
kenyans because the environmentalists it's good for the environment to do it
the debris that bodied energy the for the weight of that one building
what had gone landfill impact on the last twenty one million of those
olympians at those good citizens of hartford
you sort of every friday
excellent studied by environmental when uh... investment analyst environmental
uh...
uh... economist in state in maryland look at them
relative
difference between infrastructure costs for the public sector
in terms of redeveloping historic buildings are building are at the age
fifty two eighty percent
out cheaper infrastructure cost
that tea party
and the sierra club
ought to be leading the historic preservation parade
how the u_s_ uh... national trust
has set up a marine lab to kind of look systematically on peer reviewed here
uh...
engineering basis at
is the environmental impact of using those historic buildings
but the fungus to put all the water list when it's a score panels who want to
on some new razzle-dazzle
gold star building but in fact he takes tend to eighty years
uh... energy cvs commit energy-efficient new building
to make up for the negative climate uh... i'll change impact
of the construction
as compared to keeping those uh... historic bill is a place in fact almost
every category a building reused
there's environmental savings
over razzle-dazzle new reduce more things
uh... mayor bloomberg in new york decided he really wanted to make a new
york in energy efficiency
and so they commissioned in on it and files of the buildings in new york
this is not a preservation initiative this was how do we say energy
in fact where when the buildings with the greatest energy efficiency there was
a some rows of as a new building infected with the buildings built
a prior to nineteen thirty
and then they use pata
new or bob metrics and energy star system office bill is the same results
the one in fact the highest scores were not the new razzle-dazzle stuff it was
the pre nineteen thirty buildings in new york
but by the way some of you think they think that this is a good idea in some
kind of absurd obsession of
density at all costs
saving four inches a breakfast one away the building like keepin' the halloween
mask and throwing away the person
assignments
it has a negative environmental impact it has a negative number economic
benefits i talk about his true in this
and not be mad
dictionary written by solv adored ollie on drugs
is this constitute historic preservation
social impact
sometimes we think about a story preservationists are you know sitting
next to bridge dead white guys in that's fine
but in fact the indian art rhode island under the state tax credit they're
creating they were creating low-income housing
uh... it historic buildings
when we look in connecticut
that ninety-five percent of the
uh... tax-credit projects weren't in the rich neighborhoods in suburban new york
connecticut in fact they were neighborhoods have been
dining for investment
sometimes for two and three generations in fact
ninety five percent appall of the
was in areas are very modest a household incomes
and then this issue about downtown revitalization
and of course many of you are from uh... hoping main street communities in
oklahoma has one of the great mainstream programs
in america
but on a national level over the last thirty one years in those main street
communities around the country
fifty six billion dollars invest in physical improvements
a hundred and ten thousand net new businesses four hundred seventy five
thousand net new jobs
two hundred thirty six building rebuilt asian projects
cost per job created
about twenty four hundred dollars
and the leverage nationally of that program
uh... hockey team to one
this is placed management place management was happening
uh... you need to be communities now for thirty years before anybody else decided
that was a different things
oklahoma state just a few years ago
about oklahoma main street programs created twenty four and a half hours in
jobs a one-and-a-half percent of the whole
old workforce non spotted workforce in the state is from those who don't
couple dozen
uh... downtown main street programs
in oklahoma
you know it's going to be a long time before *** oklahoma get two hundred
thirty thousand people support walkable living area
historic downtowns historic commercial districts historic neighborhoods art
walkable
denial just finishing a study in iowa by degree program they've had their main
street program for him
uh... since nineteen eighty six and they've been very diligent about keeping
our records
and what they find is that
just in that new businesses in those times not all the best fixed not the
whole town just the net new businesses in those main street communities
in fact last year generated forty three million dollars in state sales tax
for a program costs about eight hundred thousand dollars a year so fifty times
more revenue is coming from those new businesses in those main street
communities
this process take baths in taxpayers' money
added that in twenty five of them
twenty five slash twenty six years has been increase in net new jobs was part
of a farm crisis and three recessions over that time period
and every year they've added net new businesses
then this issue about economic competitors john o'brien was for years
director of the
a direct foreign investment solicitation for fire
and in spite of its option down to the recent ural crisis
uh... dublin has been extraordinary success story this is john's map of
these international high tech cutting-edge twenty-first century
knowledge work reprieve class
kinda businesses
that have migrated to
here's why john says it
what's he's not being start preservation but he said
first of all they came because of the workers we had the workers to jobs
follow the workers
but the jobs called the workers because the workers with their first and they
went their first because the quality of life that dublin providing
and that the historic context of dublin was a huge component about partylite
characteristic
uh... some of these great international high tech firms are even start building
summer cross the street some of the edge that matter they went there to get the
workers
and the what workers went their own exactly chris was talking about
about the quality that that place providing
uh... earlier this year
are at least late last year the world bank the world bank the world bank
uh... issued a new book called the economics of uniqueness recognizing the
role called historic preservation in creating economies and i don't know how
many of you watch the world bank over the years but when they have moved to
who appointed a where they say this is a center economic development strategy
lots and lots of happen
with that i'll shut up thank you all very much