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The Impacts of Historic Preservation in Arkansas Prepared by Placeeconomics INTRODUCTION History of the AHPP Contentsapproach to This Report

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The Impacts of Historic Preservation in Arkansas Prepared by Placeeconomics INTRODUCTION History of the AHPP Contentsapproach to This Report Building on the Past for a PROSPEROUS FUTURE The Impacts of Historic Preservation in Arkansas Prepared by PlaceEconomics INTRODUCTION History of the AHPP CONTENTSApproach to this Report HISTORIC TAX CREDITS Use of the Federal Historic Tax Credit Investment Housing Production Use of the Arkansas State Historic Tax Credit Number and Location of Projects Investment Jobs and Income 1 6 Piggybacking Credits AHPP GRANTS PROGRAMS Grants by Location Grants by Type 16Grants by Use MAIN STREET ARKANSAS Facade Renovations Building Investment Public Improvements Businesses Jobs 24 Volunteer Hours CASE STUDY TOWNS Batesville Conway El Dorado Fort Smith Helena Hot Springs Little Rock 42 North Little Rock CONCLUSION Acknowledgments About PlaceEconomics92 Letter from Asa Hutchinson Governor, State of Arkansas Arkansans are proud of our heritage. It’s not so much nostalgia for a lost past, but rather a recognition that what we as a State are today is built upon the work, the commitment, and the values of our predecessors. That history and those values are incorporated in our historic towns and cities – not as relics of the past, but as buildings and sites created in the 19th and 20th centuries serving the needs of 21st century Arkansas. A priority in our state is economic development. What we have known all along, but is documented in this study, is the important role that our historic preservation programs play as engines of economic growth. For 35 years Arkansas has had a Main Street program. Main Street is economic development in the context of historic preservation and its success has been remarkable. Over the life of the program Main Street communities have seen more than $230 million invested in building rehabilitation, 95% of which came from the private sector. These same communities have seen the opening of 1400 net new businesses employing more than 3900 people – that’s real economic development. Another 800 Main Street businesses have expanded adding nearly 1000 workers to their payrolls. But some measures go beyond dollars. More than 70% of survey respondents saw Main Street as particularly effective in increasing community pride and support for local businesses. For decades, Arkansas has had a unique funding source for historic preservation activities – a share of the real estate transfer tax goes to help preserve our history. This has been supplemented by funds provided by the National Park Service. The funds – often modest in size, but indispensable for local projects – have been used throughout the State, with 170 communities in 74 of our 75 counties receiving assistance. One of the most important and visible of these has been the Courthouse Grant program. Sixty-four of these local landmarks have received funding to maintain and restore these local symbols of democracy. Other historic preservation financial assistance has been used for repairs and stabilization of historic buildings, accessibility investments, public improvements, educational programs and others. Another historic preservation tool firmly in the economic development category is the tax credit for the rehabilitation of historic buildings. In the decade since Arkansas enacted our State historic tax credit, 324 projects representing private sector investment of more than $223 million have been completed. This has done more than just put historic buildings back into productive use. Over the last decade these projects have generated an average of 175 jobs per year directly and another 133 jobs indirectly. These jobs generate paychecks averaging a total of nearly $12 million each year, putting money into the pockets of Arkansans. While the big, multi-million-dollar projects are important and get the headlines, seventy-five percent of projects had investment of $500,000 or less. This is an economic development tool that is used by large developers but also small property owners and businesses on Main Streets throughout Arkansas. When asked about the biggest impact of these projects, the most frequent response was, “It spurred additional private investment”. The common denominator of Main Street, the preservation grants programs, and the state historic tax credit, is that each uses a modest amount of public money to leverage millions in private investment. That’s the appropriate role for government. Through these programs we are spurring the economy of Arkansas today, and utilizing assets built by our grandparents while being good stewards for our grandchildren. That’s an Arkansas value. Sincerely, Asa Hutchinson 500 Woodlane Street, Suite 250 | Little Rock, AR 72201 (501) 682 - 2345 www.governor.arkansas.gov Batesville Executive Summary Building Blocks for a Prosperous Future | iii Historic preservation in Arkansas in general, and the programs of the Arkansas Historic Preservation Program in particular, are revitalizing communities across the state. The pages that follow demonstrate the contributions that The use of the Arkansas Historic Rehabilitation historic preservation, specifically the work undertaken Income Tax Credit has: through the Arkansas Historic Tax Credit, Arkansas • Granted $21.5 million in state historic tax Historic Preservation grant programs, and the Main Street credits total which attracted nearly $224 million in Arkansas program, make to the economic, physical, and private investment social life in Arkansas. Through quantitative analysis and • Resulted in the rehabilitation of 342 buildings in 24 qualitative story gathering, it is clear that preservation in cities Arkansas is focused on protecting and celebrating not • Seen the state historic tax credit used in conjunction only a community’s buildings, but also the community with the federal historic tax credit in nearly 44% of itself. projects • Created an average of more than 175 direct jobs The numbers below reflect the activity in three separate, and another 133 indirect jobs each year for the last but mutually reinforcing, preservation-based programs: decade Arkansas Historic Rehabilitation Income Tax Credit, • Generated more than $11.8 million household income the Arkansas Historic Preservation Program’s grant for Arkansas workers in the last ten years programs, and Main Street Arkansas. While there is some overlap in activities (a Main Street community may have Since 1971, the Arkansas Historic Preservation received a historic tax credit and an AHPP grant for one Program grants have: or more projects) the numbers themselves are largely • Given out nearly 2,400 grants in 170 cities in 74 of independent and, for the most part, are measured using Arkansas’ 75 counties distinct metrics and sets of reporting data. These three • Awarded nearly $55.5 million in total, nearly 45% of programs and their corresponding data are therefore which was used for the rehabilitation, repair, and independent of each other and speak to each program’s stabilization of historic resources individual success. • Helped keep courthouses in 64 counties in working order, with an average award of $51,000. The Courthouse Grant has been AHPP’s most widely distributed grant Main Street Arkansas communities have: • Invested over $377 million in the buildings, infrastructure, and public improvements on their Main Street districts, 78% of which has come from the private sector • Created over 3,900 net new jobs in Main Street districts • Established 1,181 net new businesses • Opened more new businesses than they closed, even through the Great Recession, far outperforming the pattern of both the state and national average Building Blocks for a Prosperous Future | iv Justin Simmons, Fort Smith Introduction | 1 Introduction Historic preservation, as Arkansans well know, is important work because it is work done together. Arkansas is a state with rich cultural and natural This report was commissioned by the Arkansas Historic resources, but perhaps more importantly, it is rich Preservation Program to measure the economic with passionate advocates who work every day to impacts of historic preservation in Arkansas. As the protect, enhance, and celebrate the places that are pages that follow will demonstrate, the contributions meaningful to their communities. Historic preservation, of preservation to the state’s economy are many as Arkansans well know, is important work because and impressive. But the impact of this work goes it is work done together. Through that work, strong far beyond that. The stories told within this report ties are formed to both the place and to one another. detail the sense of pride that Arkansans feel for their Whether that is the work of sustaining a vibrant Main heritage, demonstrating the contributions that historic Street, creating a public space where community preservation has made to the social and cultural members can gather, supporting a new business, or health of residents. bringing an important community symbol back to life, historic preservation is an activity that strengthens a community. The Division of Arkansas Heritage has played no small role in this work. The programs and services administered by the Arkansas Historic Preservation Program, a division of the Division of Arkansas Heritage, reach every corner of the state, supporting small businesses and promoting quality of life for residents in cities of all sizes. Within the AHPP grants program alone, funding has been provided to 170 cities and towns across the state, representing important investments in local symbols of community pride. Building Blocks for a Prosperous Future | 2 History of the Arkansas Historic Preservation Program
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