Cassandra Walker - Preservation Planning in Post-Redevelopment CA 1
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1 POST REDEVLEOPMENT ISSUES THAT AFFECT PRESERVATON POLITICAL REALM City Council Successor Agency Oversight Board Planning Commission & Design Review Board Historic Preservation Commission Preservation Groups IMPLEMENTATION TOOLS Preservation using legal sticks and economic carrots ECONOMIC DEVELOPMENT APPROACH Economic Benefits of Preservation Working with Preservation Groups Working with Developers & Property Owners Educating the Public POLITICAL REALM IN POST REDEVELOPMENT City Council Elected by Citizens Successor Agency to the Former Redevelopment Agency Usually the City Council Oversight Board made up of City, County, School District and Largest Special District Planning Commission & Design Review Board Appointed by City Council Historic Preservation Commission Appointed by City Council Cassandra Walker - Preservation Planning in Post-Redevelopment CA 1
2 LEGAL TOOLS - STICKS Preservation Ordinance Outlines the structure for how a City implements preservation in a community. Establishes procedures, sets guidelines & standards Historic Building Code Special Section of the State Building Code that provides special standards for historic buildings Historic Surveys and Inventories Documents historic properties. Provides lists of National, State and Local Register Properties Historic Resources Reports Documents of a specific property usually to determine level and type of preservation work Conditions of Approval and Development Requirements Specific conditions or standards placed on the preservation of a property CEQA Limits use of Categorical Exemptions for historic resource projects ECONOMIC TOOLS - CARROTS Incentives Façade and Seismic Grants Mills Act Revocable Loans Pending New Legislation AB1999 Economic Development and State Historic Tax Credit Act Infrastructure Financing Districts to fund capital improvements ECONOMIC DEVELOPMENT APPROACH Economic Benefits of Preservation Preservation Groups as Early Advocates How preservation groups can get engaged early Working with Developers & Property Owners How to affect preservation projects early through the Long Range Property Management Plan process and other strategies Educating the Public City and Preservation groups responsibility for public outreach Cassandra Walker - Preservation Planning in Post-Redevelopment CA 2
3 ECONOMIC BENEFITS TO PRERVATION Preservation stimulates local economies rehabilitation of buildings a catalyst for additional investment Encourages property maintenance and additional rehabilitation in neighborhoods Revitalized downtown and historic districts often have the highest property values Restored areas can becomes a local/regional destination and advance heritage tourism Instills community pride PRESERVATION GROUPS EARLY ADVOCATES Stay informed Be an advocate and a watchdog Partner with City early Lend expertise Identify key properties What does the Preservation Ordinance say? Know the procedures and requirements and their real-world implications Does the City have a current historic inventory to document historic structures? Educate the public with workshops and tours WORKING WITH DEVELOPERS & PROPERTY OWNERS Successor Agency and Oversight Board must adopt a Long Range Property Management Plan (LRPMP) outlining properties to be sold Successor Agency City sells property with conditions to preserve and restore to certain standards or use through a Development Agreement. Developer has certain timeframes to comply with conditions Identify the key properties, engage Developer early to review project concepts, be able to articulate your ideas, understand the financial aspects of a project Cassandra Walker - Preservation Planning in Post-Redevelopment CA 3
4 EDUCATING THE PUBLIC Cassandra Walker - Preservation Planning in Post-Redevelopment CA 4
5 Preservation Planning in Post- Redevelopment California May 20, 2014 Laura Cole-Rowe, CMSM California Main Street Alliance CPF Economic Development Webinar The Main Street Four-Point Approach Simultaneous work in four broad areas: Organization Promotion Design Economic Restructuring Four Point Approach Organization Promotion Issues Design Economic Restructuring Laura Cole Rowe - Preservation Planning in Post-Redevelopment CA 1
6 National Trust Main Street Center Part of the National Trust for Historic Preservation the Main Street Center was established in 1980 is now a subsidiary of NTHP Network of more than 1,500 state, regional, and local programs, linked together through a preservation-based strategy for rebuilding the places and enterprises that make sustainable, vibrant, and unique communities More than 2,000 communities have used the approach National Main Street Program 1. Comprehensive 2. Incremental 3. Self-help 4. Partnerships The Eight Guiding Principals 5. Identifying and capitalizing on existing assets 6. Quality 7. Change 8. Implementation Laura Cole Rowe - Preservation Planning in Post-Redevelopment CA 2
7 California Main Street 27 Designated Communities 6 Aspiring Communities Founded in 1985 Housed in the State s Office of Historic Preservation Contracts with California Main Street Alliance (CAMSA), a nonprofit, for services Overview of the Design Point in Main Street Historic Preservation Education Architectural Assistance Building Improvements Public Spaces Design Regulation & Review What Design Committees Do Educates others about historic preservation, rehabilitation of buildings, appropriate new construction to blend in with existing buildings, historic tax credits, attractive window displays Makes recommendations or finds funding for pedestrian amenities such as planters, trees, benches, trash cans, public spaces, banners Gives guidance on façade and building improvements, signage, lighting, landscaping and trees Laura Cole Rowe - Preservation Planning in Post-Redevelopment CA 3
8 What Economic Restructuring Committees Do Gathers/develops data on economic conditions & opportunities Helps to strengthen existing businesses; recruits complimentary and compatible businesses for downtown Finds new uses for traditional downtown buildings, focusing on economic development with a preservation ethic Develops financial incentives and encourages capital investment in building rehabilitation and business development Monitors economic performance in downtown Main Street is Self-Help For the longest time, we all waited for a white knight to ride into town and fix the problem. But the Main Street people made us realize that the only way to get it done right was to do it ourselves." Russell Thomas, mayor of Americus, Georgia Main Street Revitalization Partners Coalitions & Partnerships with Business owners Property owners Government elected and appointed officials Residents Civic organizations Preservationists Economic & community development corporations Art and Theatre Organizations Financial Institutions Public Utilities Schools Social Service Agencies Religious institutions Media Regional Planners Laura Cole Rowe - Preservation Planning in Post-Redevelopment CA 4
9 Organizational Structure of a Typical Main Street Program Board of Directors Program Manager Financial Advocacy Policy Planning Personnel Executive (Officers) Organization Promotion Design Economic Restructuring Volunteer Development Communications/ Public Relations Fundraising Marketing Strategy Image Development Retail Promotions Special Events Public Spaces Building Improvements Design Education Enforcement Market Research Business Assistance Financial Assistance Property Development Pending & New Legislation AB-1999 Personal income and corporation taxes: credits: rehabilitation (pending) This bill would allow a tax credit beginning on January 1, 2015, and before January 1, 2021 for rehabilitation of certified historic structures. This bill would provide for a 25% credit, or 30% credit if the structure meets specified criteria, for rehabilitation of a certified historic structure within the state to be allocated by the Governor s Office of Business and Economic Development in an aggregate amount of $100,000,000 per calendar year, as specified. Pending & New Legislation AB-471 Local government: redevelopment: successor agencies to redevelopment agencies (signed by governor ) Previous law prohibited an Infrastructure Financing District (IFD) from including any portion of a redevelopment project area. AB 471 clarifies that an IFD can be created that overlaps with a former redevelopment project area, so long as the IFD debt is subordinate to the old redevelopment debt. Laura Cole Rowe - Preservation Planning in Post-Redevelopment CA 5
10 Contact Information California Main Street Alliance Laura Cole-Rowe, Executive Director (707) Facebook Group - Twitter - Laura Cole Rowe - Preservation Planning in Post-Redevelopment CA 6
11 Economic Development Tools ~ Or ~ Sadly There s No Silver Bullet Yet But Keep at It Tax Incentive Trending (NPS) Uses of Certified Rehab Projects (NPS) Alexa Smittle Preservation Planning in Post Redevelopment CA 1
12 2013 Statistics from NPS Reported 2013 Qualified Rehab Expenditures (NPS) CA $ 351,910,108 AZ $ 145,000 OR $ 2,400,000 TX $ 33,802,168 VA $ 200,053,578 IL $ 205,106,123 NY $ 238,146,223 MA $ 288,902,962 MO $ 363,054,054 Traditional General Fund Tools Underwriting strategy Ranked by priority Revolving loan program Partnered money options Infrastructure outlay program Work with utilities, Caltrans, others as well Land acquisition program Alexa Smittle Preservation Planning in Post Redevelopment CA 2
13 Traditional City Tools Streamlined permitting Administrative decision making Categorical CEQA exemptions Project liaisons / staff expertise Integration of trends and economic development strategy Traditional Economic Developer Tool Infrastructure Finance Districts Tax increment financing for infrastructure Capital improvement only, not maintenance Community wide significance Requirements Infrastructure plan Negotiations with other taxing agencies Excludes school entities Voter approval 2/3 Alexa Smittle Preservation Planning in Post Redevelopment CA 3
14 Governor s Proposal for IFDs Tax increment financing for infrastructure & other projects Capital improvement only, not maintenance Community wide significance Quality of life investment, e.g. affordable housing and infill development Requirements Infrastructure plan Negotiations with other taxing agencies Excludes school entities Voter approval 55% Community Development Financial Institutions (CDFI) Certified by Treasury Banks, credit unions, non profits, community development corporations, venture capital funds About 90 in CA 2013 $24 million in loans/investments in CA Offer Flexible and non traditional financing Expanding role as intermediary possible California s Organized Investment Network (COIN) Utilizes insurance industry capital to fund investments in CA Benefit low/moderate income and rural communities CDFI tax credit program AB 32 expanded tax credits available through COIN Prioritizes affordable housing, veterans Alexa Smittle Preservation Planning in Post Redevelopment CA 4
15 Industrial Development Bonds Approved by Tax exempt bond financing for up to $10M Manufacturing and processing facilities Must have public benefit primarily job creation Local entities are preferred issuer, but not required Contract Assessment District (CAD) AB 811 PACE legislation Financing for public improvements, generally related to energy efficiency and renewable energy Financing secured by lien on properties, costs paid by property tax assessment Only for those residents that qualify and choose to participate Ideal for solar panel installation, water conservation projects, etc. Business Improvement Districts Formed through city ordinance Assessment by business or property owner Assessment used to fund benefit specific to the district Private security Trash, street sweeping Marketing Events Alexa Smittle Preservation Planning in Post Redevelopment CA 5
16 Forbes Survey Asked 5,000 entrepreneurs what their biggest obstacle to starting their own company is. Answers: Financing (36%) Knowing where to begin (35%) Employees Per Business 50 to to to 19 Typical employment ranges 5 to 9 1 to 4 0% 20% 40% 60% Alexa Smittle Preservation Planning in Post Redevelopment CA 6
17 Alexa Smittle Preservation Planning in Post Redevelopment CA 7
18 Alexa Smittle Preservation Planning in Post Redevelopment CA 8
19 Get Outside the Box Santa Rosa focus on breweries 1 barrel of beer requires 3 7 barrels of water Wastewater hauling costs up to $1M per year for a mid sized brewery Laguna Wastewater Treatment Plant has four 1 million gallon anaerobic digesters Using ability to handle brewery wastewater as way to attract craft beer and tourism Alexa Smittle Preservation Planning in Post Redevelopment CA 9
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