HomeMy WebLinkAbout08272014 Historic Preservation Laydown - WA Economic Benefits iiii
, .
fr.a
�,.
� c ,, is JllJ::;"� . • ~Lt.', I ' .` ' . - -' '
r ;.F ir!, *0*11
..,, .
._____:.
Ff 21/i/
, ot- ** '- , '
1.,,,,
4.,
ThP Erxnmir Kenetits of
A
H i s t o r i c Preservation
-...apri
„ door -
Ir WosHqto Statc ...
. .
.. .,,„
. ,,....: '2 `,
6.� .� ,,
•
tt y
...
1 1♦
t i I _
R t °1 ' iii ll I . i. ' I ! l a in
4
, RIC °RA,IO EXEi: HTIVE SU MMARY
T onomic Benefits of Hr •
-
, = �' EXECUTIVE
TI ► f- Economic 3enefits of Historic
Hrsrvoton in Wnshngton tntP
Introducti.
The cultural and historic resources of a community tell the rehabilitation activities qualifying under these programs
story of its past and make any single community distinct from 2000 to 2004 involved average spending of$83.5
from other places. These resources provide tangible million each year. These investments generate direct
connections to the people and events that have shaped economic impacts through the purchases of goods And
our surroundings and our collective histories. Preserving services.Expenditures also generate indirect and induced
the physical reminders of our past creates a sense of activity in other parts of the economy through relnrrcl
place and community pride. Historic preservation also spending at local businesses by supporting industries and
generates a wide range of economic benefits including households.
those associated with the rehabilitation and adaptive reuse In Washington State,the initial annual investment of$83.5
of historic buildings and with heritage tourism,as well as million generated total sales of$221 million, supported
the impacts that historic designation has on neighborhood 2,320 jobs in a variety of economic sectors, and paid$87
character and property values. Other benefits include the million in wages and salaries each year. This econc,mi:
key role that historic preservation plays in local economic activity generated an estimated $8.9 million in state sales
development and downtown revitalization efforts. and Business and Occupation(B&O)taxes,as well as local
Historic Rehabilitation .ales tax revenues(which are not included in this total).
The U.S. Secretary of the Interior defines historic Much of this initial investment took place in King,
rehabilitation as:"the process of returning a property to a and Spokane counties and was concentrated in the largest
state of utility, through repair or alteration, which makes city in each county (Seattle,Tacoma, and Spokane).
possible an efficient contemporary use while preserving concentration of rehabilitation activity is largely because
those portions and features of the property which are the federal and state tax credit programs are currently
significant to its historic,architectural,and cultural values:' most active in these areas, and a reflection of the number
Data compiled on Washington state projects taking of designated historic buildings within these jurisdictions.
advantage of federal and state historic building The majority of these expenditures (about 70 percent)
rehabilitation tax credit programs indicate that historic involved commercial buildings. Historic rehabilitation
activities in King County generated total sales of$105.6
Annual Average Historic Rehabilitation Spending, million. Furthermore, this work supported 1,230 jobs,
2000 to 2004($ millinnl aid generated $43.1 million in wages and salaries g.^.rh
rear. Looking at the state's other major metropolitan
Spokane areas, historic rehabilitation generated total sales of$28.7
County million and$34.0 million in Pierce and Spokane counties,
1Sa
espectively. In turn, rehabilitation work supported 325
CEngY jobs and paid$11.1 million in wages and salaries in Pierce
.81 8 :ounty,and supported 400 jobs and paid$13.7 million n,
'vaQes and salaries in Spokane County.
Washington Total = S83.5
ric Preservation _ f •,er
SUMMARY M A R Y \ ; r:
These totals underestimate the true extent of investments Heritaae Tourism
in historic rehabilitation because they are based only The National Trust for Historic Preservation deianc:.
on projects that qualify under the federal and state 'cultural heritage tourism" as traveling to experience the
tax credit programs. These programs do not capture places, artifacts and activities that authentically represent
historic rehabilitation spending by governments and tax- the stories and people of the past and present. Heritage
exempt organizations, or the money spent by individuals tourism sites in Washington range from historic house
restoring their historic homes without benefiting from museums staffed by volunteers, such as the Keller House
state tax incentives. Examples of recent government in Colville, to publicly owned historic sites such as Fort
historic rehabilitation projects include improvements to Simcoe State Park near Yakima and Seattle's Klondike Gold
city and county administration buildings,schools,libraries, Rush National Historical Park.Local historic districts and
and parks. ,lowntown areas also serve as important heritage tourism
.'ttractions.Examples where this occurs include downtown
Washington Main Street Program
Ellensburg and Snohomish. Heritage and other form^ of
The Washington Main Street Program helps communities
tourism generate economic benefits for local economies
revitalize traditional downtown and neighborhood
because visitors to the area spend money on entrance fees,
commercial districts. Revitalization typically involves
food and drink, transportation, gas, and lodging, among
investment in existing buildings and also involves attracting other things. These direct expenditures represent new
and supporting new and existing businesses that are
money for the area and support local jobs and income, as
often locally owned. Profits generated by locally owned
well as generating additional employment and income as
businesses typically circulate numerous times within
the community, thereby keeping those dollars"at home:' that money circulates through the local economy.
Building renovations and new business activity within Heritage tourists spent an estimated 8.7 million visitor
the nine designated Main Street program communities days in Washington state in 2004, spending an average
in Washington state averaged $165 million in sales each of$72.40 per day. This resulted in total annual spending
year from 2000 through 2004, supported 2,625 jobs, and statewide of about$630 million,with much of this spending
generated $67 million in labor income. These activities concentrated in the lodging,eating and drinking,and retail
generated about$8.8 million in state sales and B&O taxes sectors. These expenditures generated total sales of$1.3
each year,as well as local sales tax revenues(which are not billion, supported 20,000 jobs in a variety of econoi ii.
included in this total). c.ectors, and paid $510 million in wages and salaries each
year.This economic activity generated an estimated$FF 5
The economic benefits of using the Main Street Four-
million in state sales and B&O taxes,as well as local sales
Point Approach-extend far beyond the reported numbers.
tax revenues(which are not included in this total).
By focusing on a comprehensive downtown revitalization
strategy,a community can enhance its traditional commer- Heritage Tourism Spending by Economic Sector,NU
rinl district's overall vitality in a number of ways: i$ million)
,estored historic commercial district serves as
Recreation/
:: tourist destination; downtown festivals and Entertainment
$25.3 dgl?idging
events attract outside people and dollars; and Lo
t downtown housing can be a tremendous draw in Transportati. .
RErD keeping a local labor force. A revitalized down- $82.2
P 8 E.,ti.,-
f,rmc _ town also serves as a centerpiece of community Retail Drinking
$139.2 "1'r
SHOES lil•-:a place to shop,invest,recreate,and live.
4. Washington Total = '63U
Q I_ The Economic Benefits of Historic Preservation
:� I
Almost half (48.5 percent) of all visitor spending higher job creation impacts than is the case in the ovet.:II
in Washington was in King County in 2004, with construction industry.
about 6.2 percent in Pierce County and 5.9 percent in
Spokane County. Heritage tourism spending generated Historic Designation and Property Value
approximately$514 million in total sales in King County, The study conducted for Washington state evaluated the
supported approximately 8,470 jobs, and generated about effects of historic district designation on single-family
$210 million in labor income.Heritage tourism generated residential neighborhoods in four Washington cities:
total sales of$67.0 million and$62.4 million in Pierce and Bellingham, Ellensburg, Spokane, and Tacoma. Average
Spokane counties, respectively, supported 1,100 jobs and sale values for homes in Bellingham's Eldridge Avr ntt�
paid$26.8 million in wages and salaries in Pierce Count Historic District and Tacoma's North Slope Historic
y,
and supported 1,050 jobs and paid$25.5 million in wages District increased at a faster rate than they did for similar
I tomes located in comparable neighborhoods that do 11. :
and salaries in Spokane County. I Lave a historic designation.
Comparison with Other Economic Sectors The graph below compares average sale values(adjusted lot
Economic Sector Jobs Labor Income
(per$1 million ($per$ inflation and expressed in average price per square foot)for
(-f SrliPs) of Sales) Bellingham's Eldridge Avenue Historic District with sale
Retail Trades 33.87 $0.962 values for homes in the Lettered Streets Neighborhood,
Heritage Tourism 31.66 0.807 which shares many characteristics with the Eldridge
Avenue Historic District, but does not have a historic
Historic IleilclbilitatiUrl 17.50 1.026 designation at this rime.The graph also compares sales in
Construction 26.45 0.908 these two neighborhoods with sales in the city as a whole.
Wood Products Manufacturing 26.39 0.920 Data for home sale values in Ellensburg's First Railroad
Food Products Manufacturing 21.72 0.705 Addition Historic District and Spokane's Corbin
Park Historic District were more difficult to interpret
Historic rehabilitation and heritage tourism have relatively because small sample sizes made it difficult to establish
high levels of job creation per dollar of spending. The trends.However,the data that was collected suggest that
ratios of jobs per $1 million spent are higher in these property values for homes in these two historic districts
industries than those in many other key economic sectors have increased at rates generally comparable to siniil.tt
in Washington state, including wood products and food homes sold in similar neighborhoods that do not hay:. .t
manufacturing. In addition,rehabilitation activities have historic designation.
Bellingham Historic District Comparison,home sale values
E
■
a
=11 - - _ 7 S
- _ lir 11 :I....::
1
O• cT U O 0O g P O p V er O P P U N P • n �:--llingham Average Eldridge Avenue Historic District Average L-tiered Streets Neighborhood Aver(r;•• I 1 , i
•
A Vd H"UUr I� h "'B'1L11...AI1-17N
111.1
M� i
Fix Theater, Scokcne
In May 2000, more than 1,300 concerned citizens helped raise $1.2 The Fox Theater organization estimates that rehabilitation construction
million to purchase the Fox Theater in Spokane and rescue it from will last from 15 to 18 months.Studies conducted for the organization
demolition.Built in 1931,the Fox Theater is one of the best-preserved estimate that during construction,expenditures will support 150 to 200
Art Deco movie theaters in the western United States and is listed in jobs in the Spokane area and generate more than $40 million in total
the National Register of Historic Places,the Spokane Register and the sales.Once work is completed,the theater is expected to support 9 to 12
Washington Heritage Register.Key intact interior features include one- full-rime employees and generate$16 million in total sales each year.
of-a-kind murals that cover the theater walls and the auditorium ceiling. In addition to these economic impacts,rehabilitation of the Fox Theater
The building, an important part of Spokane's social life through the is an important element of Spokane's"Downtown Renaissance,which
1970's,has a special connection with many in the Spokane area as the includes the revitalization of numerous historic and architecturally
site of first dates,marriage proposals,concerts by nationally renowned significant buildings.Encompassing the Fox Theater,the Davenport Arts
artists,and favorite movies. I ,istrict was established by the City to help realize this goal.Named for
The Fox Theater non-profit organization, formed in 2000, has been the renowned and historic Davenport Hotel,the arts district has already
working to transform the facility into a regional performing arts center started to awaken this once neglected end of downtown into an active
and home to the Spokane Symphony,which played in the theater from "24-hour" neighborhood of art galleries, theaters, restaurants, hotels,
1968 to 1974.The proposed rehabilitation of the Fox Theater includes shops,and housing.
an operating endowment of$6 million that will enable the organization
to waive user fees for local and regional non-profit groups.
OP oak CASE STUDY : HERITAGE TOURISM•
Vcncouver \ationul Historic Reserve
Established in 1825,Fort Vancouver was the administrative headquarters Northwest's premier historic visitor destination. The Fort Vancouver
and main supply depot for the Hudson's Bay Company's fur trading NHS serves as the centerpiece of the Reserve's visitor attractions with its
operations across western North America. In 1849,the United States reconstructed 19th century buildings and stockade wall.Throughout the
government assumed control of the land, and with establishment of year,a long list of special events attracts visitors from across the region to
Vancouver Barracks,began a long military presence in the city. enjoy historic re-enactments,performances,and the spectacular July 4th
Owned and managed by the National Park Service,Fort Vancouver was fireworks display.The popular Pearson Air Museum is the other major
established as a National Monument in 1948,then later enlarged and visitor draw to the Vancouver National Historic Reserve with its displays
re designated as a National Historic Site (NHS) in 1961.Today,the of historic aircraft and exhibits along with its own series of special ev*nrc
209 acre NHS is located in Vancouver's Central Park neighborhood and offering aviation themed activities.
part of the 366 acre Vancouver National Historic Reserve,established Fort Vancouver NHS received about 800,000 visits in 2005. Studies
by Congress in 1996 to protect the reconstructed fort site and adjacent conducted for the National Park Service estimate that 75 percent of
historic resources. Properties in the Reserve include Officer's Row, annual visits are daytrips, with the remaining 25 percent involving
Vancouver Barracks,the General O.O.Howard House and Pearson Field, visitors staying overnight in the local area. Spending by visitors to the
now known as Pearson Air Museum.Together,the Reserve comprises a site supports an estimated 880 jobs in Washington State and about$15
unique civic complex offering residents and visitors alike an unparalleled million in wages and salaries.
opportunity to learn about,and experience,Northwest history. Fort Vancouver had an operating budget of$1.4 million in 2005.This
Located adjacent to Interstate 5,north of Portland International Airport, budget included salaries for 17 hill-time employees, as well as other
and in the midst of the growing Portland Metropolitan Area, the operating expenditures, with much of that money spent locally. In
Vancouver National Historic Reserve is well positioned to become the addition,more than 200 people volunteer at the site each year.
r
Abb S I U RI—STREET PROGRAM
- - -. , !IimL
It1 G\iKt.8117h-
Iir-Y,
Downtown wenctchee a ---p Wt
""
business activity in the downtown core of this Central Washington Hollywoods blockbuster him offerings had Liberty owners 1'hil
community has witnessed resurgence in recent decades.Once vacant and Linda Lassila thinking about leaving downtown and building a
storefronts now host vibrant shops and restaurants.Works of art and multi-screen cinema elsewhere.Through the efforts of the WDA,the
street trees grace the retail core. Visitors and residents alike enjoy Lassilas chose to stay downtown and expand the number of screens
special events at an expanded conference and performing arts center. into adjacent historic buildings.As a result, the owners spent$1.6
million to rehabilitate a neighboring historic hotel/commercial space
Wenatchee's thriving downtown marks a dramatic turnaround
after years of decline. Beginning in the 1960s, new retail centers and expand theater offerings with three additional movie screens,a
followed residential and industrial growth into outlying areas. snack bar,and restrooms.
Downtown stores and businesses followed suit,abandoning the city Key to the Lassila's decision to implement this expansion was the
center for malls and automobile oriented retail strips. In response, availability of the Special Valuation for Historic Properties tax
surviving downtown businesses organized to form the Park and incentive program. By working closely with Wenatchee Historic
Shop Association and eventually joined forces with the chamber Preservation Officer Kris Bassett throughout the project. :'i t
of commerce. By 1983, the Downtown Business Association came innovative new use has been found for this historic downtown
into being and adopted the Main Street Four-Point Approach model building,joining other downtown building owners who have taken
to downtown revitalization,a model developed in the 1970s by the advantage of these preservation programs.
National Trust for Historic Preservation. The impact of the Liberty Theater owner's decision to stay ii,
The organization matured during the 1980's having achieved several downtown Wenatchee has been substantial. Not only did it bring
important milestones, and then transformed into the Wenatchee back life to a neglected space,it has spurred on a destination theater
Downtown Association (WDA). WDA embarked on achieving district. The block-long project offers the benefits of a 10-screen
a priority list including completion of a $1.8 million streetscape multi-plex within the downtown core.While it may have been easier
project,a market analysis and building inventory,and began offering for the Lassila's to build a new theater elsewhere,they chose to do the
Ia low-interest loan program for building facade rehabilitations. By right thing for Wenatchee and stay in the heart of the community.
1992, the WDA qualified to participate in the Washington Main "An added benefit is the increased'after hours'foot traffic,which has
Street program. brought new energy and vibrancy to the area: said Kathy Allon.
By adhering to the Main Street Four Point Approach the WDA Executive Director of the WDA.
has seen street level vacancies decrease to nine percent and a total 141 —W.hatehe. Ave., Wenatchee, Washington.
of $38 million in public and private dollars invested downtown. 1
This investment includes the award-winning Columbia Station ,rezyrrt,
transit center and an expanded Convention Center hosting 100,000 .- I I 't ' . ck- `
delegates annually.Noteworthy is the conversion of more than 50,000 t i - — . Tr
square feet of historic Columbia Street warehouses into"loft-living" i 1` •,,,,•�-'• - "x .L.,,......;..: l
and mixed-use commercial space,plus transformation of the striking — w I",. ;•' ^'~i '� ,
Art Moderne-style former Coca Cola Bottling Plant into the North ,1 a1� " ,
Central Washington Regional Library. '�� _?
A recent success story for downtown Wenatchee is the decision by ,
owners of the historic Liberty Theater to not only remain downtown 1 >o� • �'t`
but also to expand its offerings.The Liberty had been showing movies '
in Wenatchee since the silent film era.However,the recent boom in '' - �"
ARTMFNTUF TI Imo' Economic Benefits of Historic Preservatioi 1
KA oiocr a
tUSiURK:PRESERVATION For more information, please contact the Washington State Department of Archaeology
and Historic Preservation, 360-586-3065 or visit our website at www.dahp.wa.gov
Photographs and Images courtesy of Cascade Rail Foundation,DAHP,Downtown Wallo Walla Foundation,Fox Theater-Spokane,Historic Seattle Photo Archive,Timothy Bishop,
Vancouver National Historic Reserve Trust,Washington State Tourism,Wenatchee Downtown Association,Wenatchee Valley Museum and Cultural Center Archives.