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MeasuringImpactsEconomic
of Historic Preservation
A Report to the Advisory Council on Historic Preservation
November 2011
Donovan Rypkema and Caroline Cheong
PlaceEconomics
Washington, DC
and
Randall Mason, PhD
University of Pennsylvania
School of Design, Historic Preservation Program
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Table of Contents
Executive Summary 1
Introduction 6
Interviews 9
Findings and Issues 9
Detailed Summary of Interviews 10
Symposium 15
Current Data,Methodologies,and Programs 15
Missing the Qualitative Side 16
Jobs and Household Income 16
Heritage Tourism 19
Property Values 22
Main Street/Downtown Revitalization 25
Historic Preservation, the Environment,and Sustainability 26
Effectiveness of State Historic Preservation Programs 28
Social Impacts of Historic Preservation 29
Recommendations on Metrics for Future Data and Methodologies 33
Metric 1—Jobs 33
Metric 2—Property Values 34
Metric 3—Heritage Tourism 36
Metric 4—Environmental Measurements 36
Metric 5—Downtown Revitalization/Main Street 37
Conclusions 39
Appendix A:Interviewees 42
Appendix B:Symposium Summary 43
Appendix C:RIMS II,IMPLAN,and PEIM 47
RIMS II 47
IMPLAN 49
PEIM 51
Appendix D:Qualitative Measurements 53
Appendix E:Tourism Measurements 56
Appendix F:Walk Score 61
Appendix G:Literature Review—Update 63
Appendix H:Data and Programs Included in Economic Impact Studies 89
1
Executive Summary
This study,commissioned by the Advisory Council on Historic Preservation,seeks to identify a finite
number of indicators that can be used to regularly,consistently, meaningfully,and credibly measure the
economic impact of historic preservation over time.
This interest in the economic aspects of historic preservation is a reflection of how the preservation
movement has evolved over time.The historic preservation movement began in the United States a
century and a half ago. Many of the philosophical and legal approaches to preservation in America were
taken from countries in Western Europe. But over the last 150 years American historic preservation has
responded to the particular American political and economic context.
Today historic preservation is a complex matrix of laws, incentives, policies and advocacy groups at the
national,state,and local level.There is active participation from the public, private and non-profit
sectors.This network of interests spans geographical, political,social and economic perspectives.
More importantly, however, historic preservation has become a fundamental tool for strengthening
American communities. It has proven to be an effective tool for a wide range of public goals including
small business incubation,affordable housing,sustainable development, neighborhood stabilization,
center city revitalization,job creation, promotion of the arts and culture,small town renewal, heritage
tourism, economic development,and others.
It was to better understand the economic roles and impact of historic preservation that this study was
commissioned.
In meeting the goals for this study five specific steps were taken:
1. An extensive literature review of the preservation/economics link was undertaken to
understand what has been measured, by whom, how,and what have been the general findings.
2. Interviews were conducted among knowledgeable parties in the public, private,and non-profit
sectors. Interviewees were selected based on two criteria:
a. their knowledge,expertise,and/or experience in historic preservation
b. the likelihood that they would be potential users of historic preservation economic data
if it were available.
3. An international symposium was held to better understand the current best practices in
preservation economics analysis and to receive recommendations from scholars and
practitioners in the field.
4. Interim briefings and updates were provided to the Advisory Council for Historic Preservation
for comments and suggestions.
5. The final report and two related documents—a brief"popular report" and a PowerPoint
presentation were prepared and delivered to the ACHP.
Based on the lessons learned from existing studies and publications, interviews,and a symposium
convened at the University of Pennsylvania School of Design in February 2011,seven conclusions were
reached:
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1. Various aspects of historic preservation have substantial economic benefits as well as economic
costs. While many may argue that the benefits to society, both financial and otherwise,
outweigh the costs,the relationship between preservation and the economy as well as overall
societal benefit remains imperfectly understood and only partially documented.
2. Research into the relationship between economics and historic preservation is critically needed.
3. There are multiple constituencies for this information, many of whom need the data and
information presented in different forms.
4. Information must be consistent and credible, and its collection and dissemination ongoing.
5. While the research and methodologies require scholarly robustness,the information needs to
be presented in non-academic terms.
6. While government needs to play an important role in data collection, analysis,and
dissemination, it will probably be necessary for a number of private as well as public institutions
to gather and evaluate the data.
7. However,there will need to be one entity that is responsible for annually releasing relevant
metrics on a predictable basis.
The table below summarizes the recommendations for what should be measured,why it should be
measured,suggested methodology,and, in brief,the reason that current approaches are inadequate.
These findings are discussed in greater detail in the report.