Five non-historic reasons to save a historic building
When preservationists talk about the benefits of historic preservation, their arguments are often emotional, intangible and unquantifiable. While it is true that saving historic buildings can enhance our sense of community, preserve historic architecture, and commemorate significant events from the past, these reasons often don’t hold water in the face of the practical and financial obstacles that come with rehabilitating a historic building. Knowing this, preservationists have recently begun to explore the economic benefits of historic preservation. Study upon study has shown that historic preservation stimulates local economies and creates jobs. The Pennsylvania Historical and Museum Commission’s 2012 report, The Economic Benefits of Historic Preservation Activities in Pennsylvania, states that historic preservation projects have led to $17.1 billion in total economic impact in the state. But what benefit does this bring to the individual building owner? Rehabilitation of a historic building can lead to real, quantifiable benefits that are rarely covered in traditional preservation-speak.
Tax benefits – The most obvious financial benefit for owners of historic buildings is historic tax credits. Owners of eligible buildings can receive federal and state rehabilitation tax credits for their rehabilitation projects. These dollar for dollar credits offset the cost of rehabilitation and lower an owner’s tax liability. Preservation consultants can help determine if a building is eligible, and guide the owner through the tax credit application process.
Increased property values - Designated historic structures and buildings in historic districts have higher and more stable property values. Design and aesthetic regulation in historic districts increase investor confidence, while incentives like tax credits improve the overall economic climate of an area. Even buildings which are not historic or considered contributing to the historic district benefit.
Location – The higher cost of land in urban areas can necessitate that new construction take place outside of city limits. But historic buildings and districts are often located in well-established urban centers. These prime real estate locations offer increased visibility, pedestrian traffic, and proximity to public transportation and other services.
Building Life Span – Everyone has heard the expression “they don’t’ make em’ like they used to.” In recent decades, the life expectancy of buildings and building materials has decreased significantly. Historic buildings were built to last 100 years or more, with quality materials and craftsmanship that would be cost prohibitive today. A building that is considered historic has already survived for 50 years or more, while the life expectancy of new construction and materials is only 20-40 years.
Environmental Sustainability – The greenest building is one that already exists. Rehabilitation of a historic building uses fewer materials than new construction, conserves the embodied energy in a building, reduces sprawl and preserves open space. In the world of LEED, v4 now has specific points for historic preservation and adaptive reuse in the new Building Life-Cycle Reduction Impact credit. In addition, any building designated at the local, state, or national level automatically gets five LEED points.
At Zeller Preservation, we recognize both the tangible and intangible benefits of historic perseveration. Respect for a building’s history is the first steps in a successful project, but the practical benefits go a long way in keeping historic buildings alive.
