December 1995....TABLE
of CONTENTS
New study shows striking preservation development link
By Joseph Tinker
Preservation of historic structures and sites in Virginia has generated billions of dollars for the state’s economy and has created thousands of jobs, according to a new study released by the Preservation Alliance of Virginia. The report outlines the major impact historic preservation has had on the state’s economy through tourism, increased property values, job creation, business formation, and income through rehabilitation projects.
Some of the evidence is striking. In Richmond, a city about the size of Buffalo, the Shockoe Slip historic district, an old industrial neighborhood changing to residential and commercial, assessments shot up 245% between 1980 and 1990 (Richmond as a whole saw an increase of 8.9%), while in the Franklin Street neighborhood the value of renovated historic property is $21 per square foot more than new office construction in the neighborhood.
Tourism numbers were also remarkable. The state tourism department surveyed out-of-state visitors to find out what they did while in Virginia. They found 20% of first time visitors went to beaches, while 13% went to theme parks. 32% dropped in at a shopping center, while 30% stopped at a discount center while in the state. A whopping 73% were ‘historic preservation visitors’ — defined as those visiting historic sites, monuments, and museums.
(The study, Virginia’s Economy and Historic Preservation: The Impact of Preservation on Jobs, Business, and Community, is available for $5 plus $2.50 postage and handling from Preservation Alliance of Virginia, P.O. Box 1407, Staunton, VA 24402-1407. Or call 540-886-4362.)
Some other findings:•Historic preservation visitors stayed longer, visited twice as many places, and spent 2.5 times more than nonpreservation visitors.
• Property values in the city of Staunton’s preservation districts (where fully computerized records allowed easy study) appreciated between 1.6% and 30% more than properties outside historic districts.
• Separating out commercial properties, non-historic commercial property in Staunton appreciated an average of 8.8% between 1987 and 1995, while properties in the historic districts rose from 25.2% to 256.4%
• Every $1 million spent on historic rehabilitation creates 3.4 more jobs than does the same amount spent on new construction.
• The 20 small communities participating in ‘Main Street’ historic rehabilitation programs [see Preservation Report, Aug./Sept. 1995] have gained more than 1,100 new businesses in the last 10 years.
An additional finding suggests another important argument for preservation over new construction: more than 100,000 households with incomes lower than $20,000 a year live in housing built more than 50 years ago. It would cost the state between $5 billion and $6 billion to replace that housing stock.
A key goal of the study was to ensure the data presented was credible and methodologically defensible in order to withstand challenge from so-called property rights proponents, who have sought to scale back or eliminate historic districts.
Even in Virginia, the birthplace of American preservation, some still question its economic value, seeing historic preservation is as a ‘cute’ luxury, but not central to the economy of the state. Hence, the Alliance — a grassroots advocacy group of some 150 member organizations — decided to address the preservation-economics issue.