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Ohio Historic Preservation Tax Credit, 2015 Comprehensive Report, Ohio

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Ohio Historic Preservation Tax Credit, 2015 Comprehensive Report, Ohio 2015 Comprehensive Report Ohio Historic Preservation Tax Credit 2015 Comprehensive Report The rotunda of the Cleveland Trust Company building no longer spans a banking lobby but instead provides a one-of-a-kind destination grocery shopping experience to Heinen’s customers. Located near the epicenter of Downtown Cleveland (Cuyahoga County), the grocery is a highly- demanded amenity for downtown’s growing population. Table of Contents • Introduction Letter ................................................................................................................................. 3 • Program Overview ................................................................................................................................. 4 • Opportunity ............................................................................................................................................. 5 • Impact – Community .......................................................................................................................................... 6 – Business & Job Growth ..................................................................................................................... 8 – Tax Revenue ........................................................................................................................................ 10 – Tourism ................................................................................................................................................ 11 • Completed Projects – Before and After .............................................................................................. 13 • Appendix A – List of Approved Applications • Appendix B – Cleveland State University Economic Impact Study • Appendix C – First 100 Projects Report On the cover: The Cincinnati Color Building on Vine Street in Cincinnati (Hamilton County) retains its bold “Paint” sign while providing unique restaurant and office space to Over-the-Rhine. 2 December 1, 2015 Honorable Keith Faber, President, Ohio Senate Honorable Clifford Rosenberger, Speaker, Ohio House of Representatives Dear President Faber and Speaker Rosenberger: We are pleased to present this report of the Ohio Historic Preservation Tax Credit program. The Ohio Historic Preservation Tax Credit program is an economic development tool for communities around Ohio. The purpose of the program is to encourage private investment in the reuse of historic buildings. The rehabilitation of historic buildings creates construction and permanent jobs, provides unique spaces for residents and businesses, promotes heritage tourism, adds to state and local tax revenues and revitalizes communities. Since 2006, 109 projects across 28 communities in Ohio have been successfully completed. Each of these projects is detailed in this report, along with a before and after image of the visual transformation. Cumulatively, these 109 projects have created: 141 Buildings rehabilitated 3,515 Housing units 9.59 Million square feet rehabilitated $1.58 Billion Total Project Investment This report was compiled pursuant to Ohio Revised Code section 149.311 (F)(2). Also pursuant to that section, this report is supported by an economic impact study by Cleveland State University’s (CSU) Center for Economic Development. The Ohio Historic Preservation Tax Credit program is jointly administered by the Ohio Development Services Agency, the Ohio Department of Taxation and the Ohio History Connection’s State Historic Preservation Office. Sincerely, David Goodman Director, Ohio Development Services Agency Joseph W. Testa Ohio Tax Commissioner, Ohio Department of Taxation Ohio Historic Preservation Tax Credit 2015 Comprehensive Report Program Overview The Ohio Historic Preservation Tax Credit Program provides a tax credit to owners and long-term lessees of historic buildings to complete rehabilitation projects. The Ohio General Assembly enacted the program on December 13, 2006 in House Bill 149 and amended it on June 12, 2008 under the Ohio Bipartisan Job Stimulus Plan. The program was renewed on June 30, 2011 in House Bill 153. Ohio is one of more than 30 states nationwide to offer a historic preservation tax credit program. The program provides a tax credit not to exceed 25 percent of Qualified Rehabilitation Expenditures incurred as part of historic rehabilitation projects. Qualified Rehabilitation Expenditures include both hard and soft project costs, generally consisting of improvements made to the building structure, interior and mechanical systems (heating, cooling, plumbing, electrical), as well as design and engineering services. The program is designed to allow projects to leverage the Federal Historic Preservation Tax Credit, which provides a federal tax credit equal to 20 percent of Qualified Rehabilitation Expenditures. A building is eligible if it is individually listed on the National Register of Historic Places; contributes to a National Register Historic District, National Park Service Certified Historic District or Certified Local Government historic district; or is listed as a local landmark by a Certified Local Government. Rehabilitation work must meet the U.S. Secretary of the Interior’s Standards for Rehabilitation of Historic Properties, as reviewed by the State Historic Preservation Office. The program is highly competitive and receives applications twice a year. Applications are evaluated with an objective 100-point scoring system measuring a project’s economic impact, community benefit and return on investment to state and local governments. Each fiscal year, the program may not allocate more than $60 million in tax credits with a $5 million cap per project. Additionally, during each state fiscal biennium, one catalytic project can be awarded up to $25 million in tax credits, allocated over a five year period. Catalytic projects are large-scale rehabilitation projects that undergo additional review to ensure they will generate significant additional economic development. BEFORE AFTER The Templin Bradley Company Lofts in Cleveland (Cuyahoga County) was approved in Round 9 of the program and opened in 2015. A former seed company facility that sat in a decayed state for years, the building is now home to 30 lofts and live-work units. 4 Ohio Historic Preservation Tax Credit 2015 Comprehensive Report The Berwick Hotel in downtown Cambridge (Guernsey County) is located in the Wheeler Avenue National Register Historic District, making the property eligible for historic preservation tax credits. The former hotel was rehabilitated to provide accessible and affordable housing. Opportunity The State of Ohio has a rich history and the buildings that remain from our past help to tell our story and make Ohio a unique place to live and visit. From agricultural landscapes dotted with small towns, to big cities with eclectic neighborhoods, the state has a robust collection of historic properties. In fact, Ohio has the third largest number of listings on the National Register of Historic Places in the United States. On the National Register of Historic Places, approximately 4,000 Ohio listings include more than 50,000 historically significant buildings, sites and structures. These listings are found in all 88 counties and range from skyscrapers to farmsteads. This large and diverse portfolio of historically significant properties demonstrates the opportunity for historic preservation, as National Register listing is a major criterion for both Federal and Ohio Historic Preservation Tax Credit eligibility. Additionally, Ohio has 67 communities that are designated by the National Park Service as Certified Local Government (CLG) communities. This designation allows local city, village and township governments to designate properties as local landmarks. This local designation can also qualify properties for the Ohio Historic Preservation Tax Credit program. The State Historic Preservation Office has worked with 21 communities to achieve CLG designation since the start of the Ohio Historic Preservation Tax Credit program, often to help facilitate redevelopment of historic buildings. The Fort Piqua Hotel was listed on the National Register in 1974 and is the centerpiece of Downtown Piqua (Miami County). 5 Ohio Historic Preservation Tax Credit 2015 Comprehensive Report Washington High School in Washington Courthouse (Fayette County), now provides 42 units of senior housing. The wide school corridors provide abundant common space for residents to gather. Community The Ohio Historic Preservation Tax Credit has been used to preserve buildings in all corners of the state. The reuse of school buildings, grand bank lobbies, ornate churches and other landmarks helps connect us to our heritage and enrich the quality of life in both tangible and intangible ways. Often, community members recall the original use of a building and the story of its decline. When a property is rehabilitated, it allows the building’s story to be retold and the community story to grow in celebration of rebirth and revitalization. In Washington Court House, the historic Washington High School (Fayette County) was transformed into affordable senior housing through a unique partnership between the local school district and a private developer. Today, several past graduates of the school reside there and can share that heritage with their family and neighbors. Historic buildings are often located in downtowns or neighborhoods that suffer from high vacancy or disinvestment. Building-by-building, the Ohio Historic Preservation
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