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PHLF News Publication Protecting the Places that Make Pittsburgh Home Pittsburgh History & Landmarks Foundation Nonprofit Org. 100 West Station Square Drive, Suite 450 U. S. Postage Pittsburgh, PA 15219-1134 PAID www.phlf.org Pittsburgh, PA Address Service Requested Permit No. 598 PHLF News Published for the members of the Pittsburgh History & Landmarks Foundation No. 164 June 2003 The New Markets Tax Credit Program and In this issue: 2 How It Applies to Historic Preservation Our Work: Recent Progress On April 15, 2003, Landmarks invited representatives of local community 6 organizations and lending institutions, Preservation Scene: Successes, architects, and developers to Manchester Alerts, and Losses Citizens Corporation headquarters to learn about the New Markets Tax Credit 10 program. The meeting, sponsored by The Homestead Area: Landmarks, was chaired by Stanley Lowe, serving in his dual roles as vice- Revitalization Efforts president of community revitalization of the National Trust for Historic 12 Preservation, and as Landmarks’ vice- The Challenge Facing Carnegie president for Preservation Services. The Libraries and Preservationists speakers were John Leith-Tetrault of the National Trust and Kevin McQueen, 20 a private consultant; Leith-Tetrault described the program and McQueen Events: June–October reviewed the application process. Penn Avenue in East Liberty: an area that could benefit from the New Markets Tax Credit program. NMTC helps revitalize urban main streets by stimulating new business development. Program Purpose, Allocations, and Certification In order to qualify for an allocation Allegheny Avenues, entrepreneur Jim The Northside Community The New Markets Tax Credit (NMTC) of tax credits under the NMTC Genstein is breathing new life into the Development Fund received a New program was created by Congress as program, organizations, developers, historic Buhl Optical building. Having Markets Tax Credit allocation in the part of the Community Renewal Tax and municipalities must first apply recently completed an office develop- first round to replenish its lending pool. Relief Act of 2000. The goal of the for certification by the Community ment on the South Side, Genstein sees The organization is now seeking a program is to encourage investment in Development Financial Institutions Fund the economic potential and beauty of sub-allocation of $3.2 million from the commercial enterprises in low-income of the Department of the Treasury as a the 1928 structure. Later this year National Trust and the Local Initiatives census tracts. Investor organizations Community Development Entity (CDE). Genstein’s company, NS Properties, will Support Corporation (a national non- that qualify under the program can Rather than apply directly in 2002, begin developing the property, along profit community development corpora- apply for dollar-for-dollar tax credits Landmarks assisted the National Trust with its parking area, into a 35,000 tion) to assist with the Buhl Tower that can be used to reduce the interest with its application. The Trust was allo- square-foot office complex. The tower renovations. These tax credits will on investment loans, increase the return cated $127 million and plans to make design features a roof deck, inside park- enable the project to decrease financing a lender can make on a loan, or increase loans to community organizations, ing, and a glass elevator that will offer a costs and offer unique office space the amount lending institutions set aside finance projects in conjunction with spectacular view of the city. The project within market rental rates. for low-income investments. federal or state historic tax credit is expected to bring 150 new jobs to The preservation community realized programs, and assist Main Street pro- the Northside. Continuing Assistance and that New Markets credits could be jects, among other programs. June 6 Symposium applied to help fund projects that One Pittsburgh community orga- Landmarks has received an allocation revitalize low-income communities nization, Northside Community of $20 million from the National Trust. and preserve historic places and neigh- Development Fund, applied for We will help local organizations and borhoods. The NMTC program could New Markets Tax Credits in 2002 and companies submit funding requests to also be combined with federal and state was allocated $500,000. Applications the National Trust or provide technical Historic Tax Credit programs to lever- for 2004 will be available this summer. assistance to those seeking CDE status. age additional funding. Landmarks and several community For more information contact Stanley Leith-Tetrault noted that Landmarks organizations have received non-profit Lowe (412-471-5808, ext. 519; had been the leader in preservation- CDE status and plan to apply directly [email protected]). based economic development in the for tax credit allocations in the second On Friday, June 6, Landmarks will USA, and that some thirty years later installment of the program. To date, address a pressing preservation issue such linkage was still fairly rare among one Pittsburgh bank, National City, and explore ways in which the NMTC preservation organizations. Recently, has pledged $5 million in loans to program can assist in its solution. Stanley Lowe was among the first to see projects that qualify for New Markets A stair tower and glass elevator tower Landmarks is one of the sponsors of a the applicability of NMTC to historic Tax Credits. will be added to the left side of the Buhl full-day conference, “Pittsburgh preservation. Optical building, seen here from Western Symposium on Abandoned Buildings In 2002, $3.5 billion in tax credits Avenue. Conceptual drawing courtesy of Local Initiatives and Vacant Land,” at the Soldiers and was allocated through the NMTC Lami Grubb Architects. Eve Picker, of no wall productions, a for- Sailors National Military Museum and program for commercial development profit Pittsburgh development company, Memorial in Oakland. The symposium in low-income census tracts. As planned, To finance the renovations, NS believes that NMTC will make it possi- will provide a forum for community and the NMTC program would have dis- Properties has teamed up with the ble to undertake commercial projects in neighborhood leaders, state and local pensed credits annually over a five-year Northside Community Development blighted neighborhoods by closing public officials, lenders, developers, period. Instead the first four years were Fund, which is certified as a Community the funding gap that often hinders the architects, urban planners, and preserva- compressed into two. The first alloca- Development Financial Institution revitalization of large buildings, such as tionists to assess the problems of vacant tions were made in 2002, the next allo- (CDFI) and as a CDE. Last year the East Liberty’s Highland Building (the buildings and empty lots. For more cations will be made in 2004, and the Northside Community Development last of D. H. Burnham & Company’s information and to register contact final allocations will be in 2005. Fund established two for-profit CDEs Pittsburgh buildings), which she hopes Cathy McCollom (412-471-5808, It is anticipated that the program will to engage in commercial lending and to renovate as a mixed-use property. ext. 516; [email protected]). leverage $15 million in private invest- At the corner of Western and commercial real estate. ment through 2012. Page 2 PHLF News • June 2003 MBJI, Inc. Helps Save Westmoreland OUR WORK: County Farm (8) When a title search turned up a potential environmental issue in regard to a historic farm Landmarks was attempt- ing to preserve, Michael Baker Jr., Inc. (MBJI) conducted a Phase-I Environmental Study in less than one month. Recent Progress The findings enabled Landmarks to purchase a preserva- tion easement with funds from its Richard King Mellon Foundation grant. Michael Baker’s generous in-kind PROVIDING TECHNICAL Highway Engineering Study Under Way assistance enabled Landmarks to save time and money for Route 28 (6) and successfully preserve the farm. A feature story on ASSISTANCE TO At the request of Landmarks and Preservation Pittsburgh, the farm will appear in the fall issue of PHLF News. PennDOT authorized Baker Engineering to study the Our thanks to the MBJI team, including Doug Smith HISTORIC PROPERTIES comparative costs involved in building a highway over (a trustee of Landmarks), Mara Pritchard, Ray Maginness, the railroad tracks along Route 28 so that St. Nicholas and Adam Gailey. Allegheny County Courthouse Paint Church and other buildings along Route 28 and on Troy Analysis (1, 2 & 3) Hill would not need to be demolished in a proposed WORKING WITH During a two-day visit to the Allegheny County widening of the highway. (See PHLF News 163, Courthouse on January 30 and 31, John Kraus and February 2003: 9.) NEIGHBORHOOD Frank Welsh of Welsh Color & Conservation, Inc. AND COMMUNITY (Bryn Mawr, PA) scraped through 100 years and at least a SAVING FARMLAND dozen layers of paint on corridor walls and ceilings to ORGANIZATIONS discover that five finish treatments were used originally. Oakdale Boy’s Home, South Fayette The paint analysis was funded through a grant from the Manchester Citizens Corporation (9) (7) Cynthia Woods Mitchell Fund for Historic Interiors, Township In response to a letter from the city saying that all vacant At the request of South Fayette Township, Landmarks is awarded to Landmarks by the National Trust for Historic properties in Manchester would be razed,
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