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Historic Preservation, Economic
 Development and Community
    Revitalization Programs
          Luis Nieves-Ruiz, AICP
      Orange County Planning Division
Research and Intergovernmental Coordination
              October 22, 2010
HISTORIC
PRESERVATION
Significant Historic Preservation Dates
Antiquities Act                        1906

Colonial Williamsburg                  1926

Charleston, “Old Historic District”    1931

New Orleans Vieux Carre                1936

Old Georgetown Act                     1950

Berman vs. Parker                      1954

National Register of Historic Places   1966

Penn Central vs. NYC                   1978
Antiquities Act of 1906
• First major historic preservation legislation.

• Stemmed from concern over the destruction
  of pre-historic remains in the southwest.
  Specifically, the Mesa Verde site in Colorado.

• Allowed areas in the public domain that
  contained historic structures/objects to be
  designated national monuments.

• Federal crime to collect or destroy any
  historic or prehistoric object or building on
  federally owned land.
Colonial Williamsburg, 1926

• 18th Century Capital of
  colonial Virginia.

• Private efforts (led by
  the Rev. Dr. W.A.R
  Goodwin and John D.
  Rockefeller) resulted
  in the restoration of
  Colonial Williamsburg
  as a museum village.
Charleston, SC 1931


• First historic
  preservation district
  in the United States.

• Approximately 3
  square miles.

• Prohibited specific
  uses on Broad St.,
  which contained the
  heaviest
  concentration of
  historic buildings.
New Orleans, 1936
          • Second Historic
            District in United
            States.

          • Established a
            historic
            preservation
            ordinance in 1936
            to protect the
            Old French
            Quarter (Vieux
            Carre).
Old Georgetown Act, 1950


          • First federal law for
            historic preservation.

          • Properties fall under the
            authority of the Historic
            Preservation Review
            Board and the
            Commission of Fine Arts.
Berman v. Parker, 1954
• Supreme Court established the concept
  that aesthetics alone sufficiently justified
  government regulation.

• Gave Washington D.C the right to “tear
  down old blighted buildings to improve a
  neighborhood.”

• Predecessor to Kelo v. City of New London.

• However, provided preservationists with a
  legal precedence to justify protective
  historic ordinances.
National Historic Preservation
           Act, 1966

• Created the Department of the Interior
  National Register of Historic Places.

• The report recommending the passage of
  the NHPA was called With Heritage So Rich.


• It has been amended 22 times since
  approval.
Penn Central v. NYC, 1978
• First Supreme Court decision dealing directly with
  historic preservation.
• Rights of owners to develop property vs. rights of
  cities to review and regulate the development of a
  historic property.
• Owner applied to construct a 55 story addition
  over Grand Central station, a historic landmark
  structure.
• Owner claimed the city’s denial of their request
  was a “taking” but court disagreed.
• The landmark decision upheld the legitimacy of
  historic ordinances, and formed the legal basis for
  the right to establish controls to which the owners
  of historic properties would be subject.
National – Historic Preservation

• National Register of
  Historic Places
   • National Park Service,
     U.S. Dept of the
     Interior
   • State Historic
     Preservation Officer
   • Advisory Council on
     Historic Preservation
Tax Incentives for Preservation

Tax Reform Act of 1976 - Allowed tax breaks for
historic buildings listed on either a local register or
the National Register.


Economic Recovery Tax Act of 1981 - Gave a 25%
tax credit for rehab costs of historic buildings.
National Register Criteria

• Types:           • Significance:
   • Districts        • American History
   • Sites            • Architecture
   • Buildings        • Archeology
   • Structures       • Engineering
   • Objects          • Culture
What is a Historic District?
• Geographical area that has a
  significant architectural enclave of
  historic buildings.


Why Establish a Historic District?
•   Protect historic properties
•   Control new development
•   Serve as development incentive
•   Maintain property values
•   Public relations/promotion
•   Economic Development
Historic Resources/ Landmarks

• A structure that is 50 years old or older and
  possesses:
   • Aesthetic
   • Architectural, or
   • Historic Value
Preservation Ordinance
             Requirements
• Should achieve a public purpose
• Should leave some or all value to the property
• Should meet legal test
• Should be tailored to the specific area or for a
  specific purpose
• May include specific architectural requirements
  to ensure that property renovations blend with
  the rest of the district
• May include measures to protect historic
  structures
Certificate of Appropriateness
• Must be obtained to modify the outside
  appearance of a structure that has been
  designated a historic resource/landmark




   Current Preservation Numbers

• There are over 80,000 listings on the National
  Register
Economic Development
  and Revitalization
Spatial Economic Theories

• Von Thunen

• Central Place

• Economic Base

• Cluster

• Creative Class

• Mega Region
Von Thunen Model
• The use of a
  piece of land is
  put to is a
  function of the
  cost of transport
  to market and
  the land rent a
  farmer can
  afford to pay.
• Von Thunen
  Concentric
  Circles.
Central Place Theory
• Developed by Walter
  Christaller.
• Laws determine the
  number, size and
  distribution of towns.
• People would travel
  farther to get high order
  services.
• It is becoming less useful
  for studying metropolitan
  areas.
• Predecessor of the World
  Systems Theory.
Economic Base Theory
• Divides regional industries into Basic
  (export sectors) and Non Basic (local
  sectors).
• Assumes that export industries drive
  regional economic growth.
• Basic industries have a multiplier effect on
  the regional economy.

Base Multiplier =     Total Employment Year i
                      Basic Employment Year i
Economic Clusters
• Develop by Michael Porter.

• A cluster is a geographic
  concentration of
  competitive firms in related
  industries that do business
  with each other.

• Cluster includes companies
  selling primarily outside the
  region, as well as support
  firms supplying raw
  materials.

• Clusters provide synergy,
  and that leads to
  competitive advantage and
  economic specialization.
Creative Class Theory

• Developed by Richard Florida.

• Recognized shift from manufacturing economy
  to an economy based on knowledge.

• Successful regions have the three T’s: talent,
  tolerance, and technology.

• Place making is an important part of economic
  development because it helps to attract talent
  and industry.
Mega-Regions/Megapolitan Areas

• Areas of the world that generate a
  disproportionate share of global economic
  activity including trade, transport, innovation
  and scientific discovery.

• They often stretch across multiple
  jurisdictions and even national borders.

• Examples of national mega regions include the
  following corridors: Boston-Washington D.C.,
  Chicago-Pittsburgh, and Charlotte-Atlanta.
Economic Measuring Tools

• Location Quotient

• Shift Share Analysis

• Input/output Models

• Land Market Monitoring

• Econometric Models
North American Industry
    Classification System (NAICS)
• Industry classification system
• Twenty industrial sectors
• Several digit levels of complexity

NAICS 11 Agriculture
NAICS 112 Animal Production
NAICS 1121 Cattle Ranching
Location Quotient

• Ratio between the local economy and reference
  economy.
• It measures economic specialization of a region.


                  Local Employment i
                Total Local Employment
       LQ i
                 National Employment i
               Total National Employment
Location Quotient
LQ = 1   Regional employment proportion in
         industry i is same as national
         proportion.

LQ < 1    Regional employment proportion in
          industry i is less than national
          proportion.


         Regional employment proportion in
LQ > 1
         industry i is greater than national
         proportion.
Location Quotient
NAICS 7131 Amusements, Parks and
             Arcades

             47,281
             612, 434
 LQ 7131
             154,677
           112,718, 858

 LQ 7131 56.26
High Location Quotients
                                                         Orange
                  Industry                     Florida   County

NAICS 5615 Travel arrangement & reservation
                                                 2.17      7.71
NAICS 4855 Charter bus industry                  0.96       5.9

NAICS 3333 Commercial & serv. industry mach.
                                                 1.21      5.54

NAICS 7211 Traveler accommodation                  1.4      4.2

NAICS 6115 Technical and trade schools
                                                 1.34      3.33

NAICS 5321 Automotive equipment rental
                                                 1.43      2.93

NAICS 1114 Greenhouse and nursery prod.
                                                   2.3     2.89
NAICS 2372 Land subdivision                      3.31      2.09

NAICS 4859 Other ground passenger transp.
                                                 1.04       1.9
Shift Share Analysis

• Technique to analyze sources of change in a
  regional economy.

• Total Employment Change = National Growth
  Share + Industrial Mix share + Regional Shift
   – National Growth Share: growth attributed to
     national changes in the economy
   – Industrial Mix Share: employment on particular
     industries
   – Regional Shift: examines unique local factors that
     affect regional competitiveness
Input/output Analysis
• Input/output Models
  use multipliers to     Purchasing
  estimate the           Industry       Ag.         Transp.   Mfg.

  economic impact of     Selling
                         Industry
  specific sectors.
• Determine linkages     Agriculture          .65      0.22      0.13
  between industries     Transportati
                         on               0.19          .62      0.16
  in the local
                         Manufacturi
  economy.               ng               0.16         0.16          .71
• Calculate direct,
  indirect and induced   Total Output     1.00         1.00      1.00

  effects.
Practice Sources
• LOCATION QUOTIENT:

http://data.bls.gov/LOCATION_QUOTIENT/servl
  et/lqc.ControllerServlet

• SHIFT SHARE:
http://www.georgiastats.uga.edu/sshare1.html
Land Market Monitoring
• Focus on monitoring the
  availability of buildable land
  available and the rate it is
  being consumed for urban
  development.
• Looks at the supply of land
  zoned for residential,
  commercial, and industrial
  uses.
• Uses a variety of tools
  including GIS and
  land/employment
  multipliers.
Econometric Models

• Combines economic theories with statistics
  to analyze and test economic relationships.

• Examples of models includes regression
  analysis.

• Uses copious amount of data.
Community Revitalization Strategies

• Create Special Districts/Programs
• Write a Master/Strategic Plan
• Provide Tax Incentives
• Create/Increase Tax Base
• Infrastructure and Beautification Improvements
Economic Revitalization Programs

•    Enterprise Zones/Empowerment Zones

• Business Improvement District

• Brownfield Programs

• Community Development Block Grant Program

• Main Street Program

• Business Development Programs

• Special Tax Districts
Enterprise Zone/Empowerment Zones

•  Participating block
  groups must have more
  than 20% poverty rate.
• Both Federal and State
  Programs.
• Offer a variety of
  incentives to attract new
  businesses to the area
  including:
   • Job Tax Credit
   • Property Tax Credits
   • Sales Tax Refunds
Business Improvement District

• Public-Private partnership that contributes
  to the maintenance, development and
  marketing of the commercial district.
• Overseen by a board of directors.
• Funded through special assessments (TIF)
  collected from the property owners in the
  defined boundaries of the district.
• Similar to Community Redevelopment Areas
  (CRA).
Brownfield Programs
       • Site whose redevelopment
         or reuse may be
         complicated by the
         potential or real presence
         hazardous pollutants.
       • Managed by Environmental
         Protection Agency
       • Provides direct funding for
         brownfields assessment,
         cleanup, revolving loans,
         and environmental job
         training.
Community Development Block
     Grant Program (CDBG)

• Federal Block Grant Program that helps to
  improve the living conditions of low and
  moderate income residents.

• Entitlement communities must have at least
  50,000 residents.

• These funds are used for a variety of
  programs including housing rehabilitation and
  infrastructure improvement.
Main Street Program
         • Sponsored by National
           Trust for Historic
           Preservation.

         • Public-Private partnership
           allowing merchants to be
           involved and responsible
           in revitalization efforts.

         • Combines historic
           preservation with
           economic development.

         • Used to revitalize old
           commercial corridors and
           downtown areas.
Business Development
• This is also known as “economic gardening”.
• Incubation Programs that provide management
  training, counseling, consulting, marketing,
  and research.
• Programs targeting of specific industries to
  locate in the community.
• Business retention programs to keep and grow
  existing businesses.
• Workforce Education and Training Programs
  tailored to firm’s needs.
Special Tax Districts
• Property owners within these districts pay
  a special assessment to cover specific
  services or infrastructure improvements.

• These districts are being established all
  over Florida.

• Some examples of these are Community
  Development Districts (CDDs) and
  Municipal Services Taxing Units (MSTU).
Questions?


     Good luck on the
               exam!

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AICP study course

  • 1. Historic Preservation, Economic Development and Community Revitalization Programs Luis Nieves-Ruiz, AICP Orange County Planning Division Research and Intergovernmental Coordination October 22, 2010
  • 3. Significant Historic Preservation Dates Antiquities Act 1906 Colonial Williamsburg 1926 Charleston, “Old Historic District” 1931 New Orleans Vieux Carre 1936 Old Georgetown Act 1950 Berman vs. Parker 1954 National Register of Historic Places 1966 Penn Central vs. NYC 1978
  • 4. Antiquities Act of 1906 • First major historic preservation legislation. • Stemmed from concern over the destruction of pre-historic remains in the southwest. Specifically, the Mesa Verde site in Colorado. • Allowed areas in the public domain that contained historic structures/objects to be designated national monuments. • Federal crime to collect or destroy any historic or prehistoric object or building on federally owned land.
  • 5. Colonial Williamsburg, 1926 • 18th Century Capital of colonial Virginia. • Private efforts (led by the Rev. Dr. W.A.R Goodwin and John D. Rockefeller) resulted in the restoration of Colonial Williamsburg as a museum village.
  • 6. Charleston, SC 1931 • First historic preservation district in the United States. • Approximately 3 square miles. • Prohibited specific uses on Broad St., which contained the heaviest concentration of historic buildings.
  • 7. New Orleans, 1936 • Second Historic District in United States. • Established a historic preservation ordinance in 1936 to protect the Old French Quarter (Vieux Carre).
  • 8. Old Georgetown Act, 1950 • First federal law for historic preservation. • Properties fall under the authority of the Historic Preservation Review Board and the Commission of Fine Arts.
  • 9. Berman v. Parker, 1954 • Supreme Court established the concept that aesthetics alone sufficiently justified government regulation. • Gave Washington D.C the right to “tear down old blighted buildings to improve a neighborhood.” • Predecessor to Kelo v. City of New London. • However, provided preservationists with a legal precedence to justify protective historic ordinances.
  • 10. National Historic Preservation Act, 1966 • Created the Department of the Interior National Register of Historic Places. • The report recommending the passage of the NHPA was called With Heritage So Rich. • It has been amended 22 times since approval.
  • 11. Penn Central v. NYC, 1978 • First Supreme Court decision dealing directly with historic preservation. • Rights of owners to develop property vs. rights of cities to review and regulate the development of a historic property. • Owner applied to construct a 55 story addition over Grand Central station, a historic landmark structure. • Owner claimed the city’s denial of their request was a “taking” but court disagreed. • The landmark decision upheld the legitimacy of historic ordinances, and formed the legal basis for the right to establish controls to which the owners of historic properties would be subject.
  • 12. National – Historic Preservation • National Register of Historic Places • National Park Service, U.S. Dept of the Interior • State Historic Preservation Officer • Advisory Council on Historic Preservation
  • 13. Tax Incentives for Preservation Tax Reform Act of 1976 - Allowed tax breaks for historic buildings listed on either a local register or the National Register. Economic Recovery Tax Act of 1981 - Gave a 25% tax credit for rehab costs of historic buildings.
  • 14. National Register Criteria • Types: • Significance: • Districts • American History • Sites • Architecture • Buildings • Archeology • Structures • Engineering • Objects • Culture
  • 15. What is a Historic District? • Geographical area that has a significant architectural enclave of historic buildings. Why Establish a Historic District? • Protect historic properties • Control new development • Serve as development incentive • Maintain property values • Public relations/promotion • Economic Development
  • 16. Historic Resources/ Landmarks • A structure that is 50 years old or older and possesses: • Aesthetic • Architectural, or • Historic Value
  • 17. Preservation Ordinance Requirements • Should achieve a public purpose • Should leave some or all value to the property • Should meet legal test • Should be tailored to the specific area or for a specific purpose • May include specific architectural requirements to ensure that property renovations blend with the rest of the district • May include measures to protect historic structures
  • 18. Certificate of Appropriateness • Must be obtained to modify the outside appearance of a structure that has been designated a historic resource/landmark Current Preservation Numbers • There are over 80,000 listings on the National Register
  • 19. Economic Development and Revitalization
  • 20. Spatial Economic Theories • Von Thunen • Central Place • Economic Base • Cluster • Creative Class • Mega Region
  • 21. Von Thunen Model • The use of a piece of land is put to is a function of the cost of transport to market and the land rent a farmer can afford to pay. • Von Thunen Concentric Circles.
  • 22. Central Place Theory • Developed by Walter Christaller. • Laws determine the number, size and distribution of towns. • People would travel farther to get high order services. • It is becoming less useful for studying metropolitan areas. • Predecessor of the World Systems Theory.
  • 23. Economic Base Theory • Divides regional industries into Basic (export sectors) and Non Basic (local sectors). • Assumes that export industries drive regional economic growth. • Basic industries have a multiplier effect on the regional economy. Base Multiplier = Total Employment Year i Basic Employment Year i
  • 24. Economic Clusters • Develop by Michael Porter. • A cluster is a geographic concentration of competitive firms in related industries that do business with each other. • Cluster includes companies selling primarily outside the region, as well as support firms supplying raw materials. • Clusters provide synergy, and that leads to competitive advantage and economic specialization.
  • 25. Creative Class Theory • Developed by Richard Florida. • Recognized shift from manufacturing economy to an economy based on knowledge. • Successful regions have the three T’s: talent, tolerance, and technology. • Place making is an important part of economic development because it helps to attract talent and industry.
  • 26. Mega-Regions/Megapolitan Areas • Areas of the world that generate a disproportionate share of global economic activity including trade, transport, innovation and scientific discovery. • They often stretch across multiple jurisdictions and even national borders. • Examples of national mega regions include the following corridors: Boston-Washington D.C., Chicago-Pittsburgh, and Charlotte-Atlanta.
  • 27. Economic Measuring Tools • Location Quotient • Shift Share Analysis • Input/output Models • Land Market Monitoring • Econometric Models
  • 28. North American Industry Classification System (NAICS) • Industry classification system • Twenty industrial sectors • Several digit levels of complexity NAICS 11 Agriculture NAICS 112 Animal Production NAICS 1121 Cattle Ranching
  • 29. Location Quotient • Ratio between the local economy and reference economy. • It measures economic specialization of a region. Local Employment i Total Local Employment LQ i National Employment i Total National Employment
  • 30. Location Quotient LQ = 1 Regional employment proportion in industry i is same as national proportion. LQ < 1 Regional employment proportion in industry i is less than national proportion. Regional employment proportion in LQ > 1 industry i is greater than national proportion.
  • 31. Location Quotient NAICS 7131 Amusements, Parks and Arcades 47,281 612, 434 LQ 7131 154,677 112,718, 858 LQ 7131 56.26
  • 32. High Location Quotients Orange Industry Florida County NAICS 5615 Travel arrangement & reservation 2.17 7.71 NAICS 4855 Charter bus industry 0.96 5.9 NAICS 3333 Commercial & serv. industry mach. 1.21 5.54 NAICS 7211 Traveler accommodation 1.4 4.2 NAICS 6115 Technical and trade schools 1.34 3.33 NAICS 5321 Automotive equipment rental 1.43 2.93 NAICS 1114 Greenhouse and nursery prod. 2.3 2.89 NAICS 2372 Land subdivision 3.31 2.09 NAICS 4859 Other ground passenger transp. 1.04 1.9
  • 33. Shift Share Analysis • Technique to analyze sources of change in a regional economy. • Total Employment Change = National Growth Share + Industrial Mix share + Regional Shift – National Growth Share: growth attributed to national changes in the economy – Industrial Mix Share: employment on particular industries – Regional Shift: examines unique local factors that affect regional competitiveness
  • 34. Input/output Analysis • Input/output Models use multipliers to Purchasing estimate the Industry Ag. Transp. Mfg. economic impact of Selling Industry specific sectors. • Determine linkages Agriculture .65 0.22 0.13 between industries Transportati on 0.19 .62 0.16 in the local Manufacturi economy. ng 0.16 0.16 .71 • Calculate direct, indirect and induced Total Output 1.00 1.00 1.00 effects.
  • 35. Practice Sources • LOCATION QUOTIENT: http://data.bls.gov/LOCATION_QUOTIENT/servl et/lqc.ControllerServlet • SHIFT SHARE: http://www.georgiastats.uga.edu/sshare1.html
  • 36. Land Market Monitoring • Focus on monitoring the availability of buildable land available and the rate it is being consumed for urban development. • Looks at the supply of land zoned for residential, commercial, and industrial uses. • Uses a variety of tools including GIS and land/employment multipliers.
  • 37. Econometric Models • Combines economic theories with statistics to analyze and test economic relationships. • Examples of models includes regression analysis. • Uses copious amount of data.
  • 38. Community Revitalization Strategies • Create Special Districts/Programs • Write a Master/Strategic Plan • Provide Tax Incentives • Create/Increase Tax Base • Infrastructure and Beautification Improvements
  • 39. Economic Revitalization Programs • Enterprise Zones/Empowerment Zones • Business Improvement District • Brownfield Programs • Community Development Block Grant Program • Main Street Program • Business Development Programs • Special Tax Districts
  • 40. Enterprise Zone/Empowerment Zones • Participating block groups must have more than 20% poverty rate. • Both Federal and State Programs. • Offer a variety of incentives to attract new businesses to the area including: • Job Tax Credit • Property Tax Credits • Sales Tax Refunds
  • 41. Business Improvement District • Public-Private partnership that contributes to the maintenance, development and marketing of the commercial district. • Overseen by a board of directors. • Funded through special assessments (TIF) collected from the property owners in the defined boundaries of the district. • Similar to Community Redevelopment Areas (CRA).
  • 42. Brownfield Programs • Site whose redevelopment or reuse may be complicated by the potential or real presence hazardous pollutants. • Managed by Environmental Protection Agency • Provides direct funding for brownfields assessment, cleanup, revolving loans, and environmental job training.
  • 43. Community Development Block Grant Program (CDBG) • Federal Block Grant Program that helps to improve the living conditions of low and moderate income residents. • Entitlement communities must have at least 50,000 residents. • These funds are used for a variety of programs including housing rehabilitation and infrastructure improvement.
  • 44. Main Street Program • Sponsored by National Trust for Historic Preservation. • Public-Private partnership allowing merchants to be involved and responsible in revitalization efforts. • Combines historic preservation with economic development. • Used to revitalize old commercial corridors and downtown areas.
  • 45. Business Development • This is also known as “economic gardening”. • Incubation Programs that provide management training, counseling, consulting, marketing, and research. • Programs targeting of specific industries to locate in the community. • Business retention programs to keep and grow existing businesses. • Workforce Education and Training Programs tailored to firm’s needs.
  • 46. Special Tax Districts • Property owners within these districts pay a special assessment to cover specific services or infrastructure improvements. • These districts are being established all over Florida. • Some examples of these are Community Development Districts (CDDs) and Municipal Services Taxing Units (MSTU).
  • 47. Questions? Good luck on the exam!