The Economic Benefits of Preservation: A National Perspective

1. The Economic Benefits of Preservation: A National Perspective

2. Fredericksburg (1991) Galveston (1991) Virginia (1995) Indiana (1997) Kentucky (1997) New Jersey (1998) North Carolina (1998) Philadelphia (1998) Maryland (1998) Georgia (1999) Texas (1999) Maryland (1999) South Carolina (2000) Colorado (2002) Missouri (2002) Michigan (2002) Florida (2002) Massachusetts (2002) South Carolina (2002) Recent Preservation Economic Impact Studies

3. Basic Kinds of Studies • Property Value Studies • Sector/Institution Studies • Economic Impact Studies • Statewide • Citywide

4. Levels of Analysis • Academic & Technical Professionals • Practitioners • Graduate Students • “Do it Yourself”

5. The 5 Major Measusrables of the Economic Impact of Preservation • Job Creation and Household Income from the Building Rehabilitation Process • Heritage Tourism • Success of Preservation-Based Economic Development Strategies • Impact on Property Values of Local Historic Districts • Impact of Museums/Institutions

6. Jobs and Household Income

7. The Measurement of Impacts – RIMS II* 527 Industry Categories Jobs Direct & Indirect Output in $ Impact on Other Industries Household Income Direct & Indirect *Regional Input-Output Modeling System

8. Labor Intensity in Historic Preservation New Construction Rehabilitation Labor Materials

9. Job Creation in North Carolina Building Rehabilitation vs. Textile Manufacturing (per $1 Million in Output) Textile 11.3 22.0 Manufacturing Building 19.3 22.1 Rehabilitation 0 5 10 15 20 25 30 35 40 45 Jobs Created Direct Jobs Indirect Jobs

10. Household Income in North Carolina Building Rehabilitation vs. Textile Manufacturing Per $1 Million of Output Textile $482,300 $226,600 Manufacturing Building $431,900 $369,600 Rehabilitation $0 $200,000 $400,000 $600,000 $800,000 Household Income Household Income -- Direct Household Income - Indirect

11. Job Creation in North Carolina Building Rehabilitation vs. New Construction Per $1 Million in Output New Construction 14.7 21.2 Building 22.1 19.3 Rehabilitation 0 5 10 15 20 25 30 35 40 45 Indirect Jobs Direct Jobs

12. Impact of Various Economic ActivitiesPer $1 Million in Expenditures Highway Construction 33.6 $1,197,000 $101,000 $85,000 New Construction Buildings 36.1 $1,223,000 $103,000 $86,000 Rehabilitation of Historic Buildings 38.3 $1,302,000 $110,000 $92,000 Jobs Household Income State Taxes Local Taxes

13. Jobs Manufacturing 28.8 New Construction 36.1 Rehabilitation 40.0 Household Income Manufacturing $603,800 New Construction $764,200 Rehabilitation $826,600 Jobs & Household Income in Tennessee(per $1 Million of Output)

14. Heritage Tourism

15. What Visitors to Virginia Come to See 80% 70% 60% 50% 40% 30% 20% 10% 0% Historic Discount Shopping Beaches Theme Parks Golf Courses Preservation Centers Centers First Time Visitors Repeat Visitors

16. Preservation Visitors in Virginia 5 4.5 4.7 4 4.2 3.5 Preservation Visitors 3 2.5 Other Visitors 2 3.3 2.1 1.5 1 Preservation Visitors 0.5 0 Other Visitors Sites Visited Days Spent

17. Preservation Visitors in Virginia • Stay Longer • Visit Twice as many Places • Spend 2 ½ Times as much Money as Other Visitors

20. Preservation Based Economic Development Strategies Main Street

21. Preservation Based Economic DevelopmentMain Street Over the past 20 years in Main Street Communities • $16.1 Billion invested in • Physical Improvements • 56,300 Net New Businesses • 226,900 Net New Jobs • 88,700 Building Rehabilitation & Construction Projects • Cost per Job Created -- $2,504 • Leverage of Public Funds -- $39.96 to $1.00

22. Impact of Local Historic Districts on Property Values

23. Property Value Appreciation Rates Six Historic Districts in Maryland 30.0% 26.8% 26.0% 25.0% 24.4% 20.0% 17.9% 16.4% 16.8% 15.0% 15.4% 15.1% 11.7% 11.0% 10.0% 7.4% 5.0% 6.0% 0.0% Annapolis Berlin Chestertown Frederick Laurel Mt.Vernon -- Baltimore Historic District City Overall

24. Change in Property Values Staunton, Virginia 1987 -- 1995 70.0% 60.0% Non-Historic District 50.0% 51.9% 54.2% 51.1% 62.8% 66.0% Newtown Historic District 40.0% Beverley Historic District 30.0% Gospel Hill Historic District 20.0% 10.0% Stuart Historic District 0.0%

26. When Local Historic Districts Have the Greatest Positive Impact on Property Values • Staffed • Clear, written, illustrated guidelines • Firm but consistent decisions • Educational outreach

27. Impact of Museums/Institutions

28. The Economic Impact of Biltmore • $215,000,000 to the • Economy of North • Carolina • 760 Employees • $5,000,000 in Taxes • $9,500,000 in Direct Payroll • $8,400,000 Indirect Payroll Impact • Every $1 spent adds $12.31 to the Regional Economy

29. The Accidental Findings

41. Other Measures of Impact • Movie Industry • Small Business Incubation • Arts & Crafts • Ethnic Diversity • Downtown Revitalization • Affordable Housing • Neighborhood Stabilization • State Tax Credit as Investment Catalyst • Major Tax Generator • Anti-Sprawl Tool

42. Other Impacts Are Emerging:Economics One Step Removed • Smart Growth • Workforce Housing Research into Policy

43. Smart Growth

44. Historic Preservation is Smart Growth Public Infrastructure

45. Historic Preservation is Smart Growth Vacant Buildings Don’t Produce Needed Revenue

46. Historic Preservation is Smart Growth Enhance Viability of Public Transportation

47. Historic Preservation is Smart Growth Pedestrian Orientation

48. Historic Preservation is Smart Growth Mixed Use

49. Historic Preservation is Smart Growth Reinvestment in Historic Neighborhoods is Smart Growth not No Growth

50. Historic Preservation is Smart Growth “Back to the City”