NJ Heritage Development Coalition

News from Colorado Preservation, Inc. (www.coloradopreservation.org)

Colorado State Rehabilitation Tax Credit Renewed!

On June 5, 2008, Governor Ritter signed HB 1033, reauthorizing Colorado’s state historic preservation tax credit.

This year, the Colorado legislature passed HB08-1033 which reauthorizes the historic preservation tax credit for 10 more years. The tax credit for historic preservation was first established in 1990 and it serves as an important incentive to encourage the rehabilitation and preservation of historic buildings throughout the state. By restoring buildings statewide, local companies can become involved in the preservation process which helps the state’s economy. The credit can be taken for up to 20% of qualified rehabilitation costs up to a maximum of a $50,000 credit per qualified property.

Since 1991, over 500 Colorado property owners have taken advantage of the tax credit, with over 90% of these being single family homeowners. The credit has been an incentive for both owner-initiated designation of historic properties and sensitive rehabilitations. Throughout the legislative process of renewing this tax credit, the preservation community worked together by making phone calls, testifying on the bill, and working with various legislators. Colorado Preservation Inc. and its members worked with State Representative Claire Levy (D-Boulder) and State Senator Paula Sandoval (D-Denver) to run legislation in the 2008 session to reauthorize the State’s Income Tax Credit for Historic Preservation projects.

Maine Preservation News reports that the Maine legislature passed Rep. Ted Koffman’s Tax Credit for Rehabilitation of Historic Properties, which had been included in Gov. Baldacci’s State of the State Address. The bill fundamentally changes the existing state tax credit. Among the changes is the creation of a small projects provision for taxpayers who do not claim the federal tax credit but who could claim the state credit, and the inclusion of an added incentive for the creation of affordable housing.

Speaker of the House Glenn Cunningham’s Chief of Staff had hosted a weekly conference call of an unprecedented coalition of bi-partisan elected officials, non-profit organizations, construction professionals, environmental organizations and community leaders from across the state to strategize for the bill’s passage. Even after it passed, members asked to vote on the bill separately, reportedly so that some who had voted against the budget could go on record as supporting the tax credit!

Coalition members included numerous developers: Niemann Capital, Saco Island LLC, Lockwood Mills, Housing Initiatives of New England, Mattson, Eagle Point Companies, Monks & O’Neil Development, Paul Boghossian and Roger Pomerleau. Regional and statewide nonprofit organizations joining the coalition included: Avesta Housing, Friends of Midcoast Maine, Greater Portland Landmarks, GrowSmart Maine (which chaired the coalition), Maine Archives and Museum Assoc., Maine Center for Economic Policy, Maine Community Foundation, Maine Merchants Assoc., Natural Resources Council of Maine, Southern Maine Regional Planning Commission and more. Contractors, architects and planners were also a part of the coalition.

Administration opposition and the excuse of a poor budget climate caused the long-awaited NJ historic rehabilitation tax credit bill – HPRA, A791, S468 – to stall in the legislature without any committee hearings, as of the summer recess. While the Governor and legislature struggled with controversial legislation, promoted by the real estate development industry, that was billed as “smart growth” solutions to the state’s economic woes, the tool proven in 29 states to be one of the best and greenest economic development and community revitalization instruments was completely ignored.

In a recent column, Neil Peirce quotes civic leaders in St. Louis regarding the amazing comeback of that city’s downtown, almost entirely spurred by Missouri’s historic tax credit: “As Richard C.D. Fleming, president of the St. Louis Regional Chamber and Growth Association and a leader in getting the Missouri Legislature to pass the credit explains: “The total new investment in downtown is almost $5 billion. And close to 90 percent of it is historic preservation — great old structures rehabilitated for offices, condos and more — not just a bunch of new megastructures.”

Great historic buildings in New Jersey towns and cities, large and small, go unrestored and languish. And state and local governments continue to sponsor wholesale teardowns in Camden and elsewhere – a failed urban revitalization strategy in city after city across the country.

It’s time for legislators and the Governor to start learning from places that are succeeding at community and economic revitalization, like St. Louis, Baltimore and Providence! MORE INFO on the Historic Properties Revitalization Act