
The New Ohio Historic Preservation Tax Credit and Ohio's Downtowns
by
Staff
on Sat 01 Sep 2007 07:46 PM EDT
Editor's Note -- As a new feature, on a monthly basis MyHometownOhio InDepth will take a more involved look at an issue or opportunity facing the state's preservation and revitalization community. This month we take a look at Ohio's new historic preservation tax credit, and the impact it may have - or not have - on Ohio downtowns.
The new Ohio Historic Preservation Tax Credit is a great addition to the state’s reinvestment financial incentives. Because of the unique characteristics of preservation development – it produces greater local financial impact than new construction, enhances local quality of life, and sets the stage for economic development – it will assist in transforming entire downtowns, neighborhoods and cities.
However, some Ohio communities are well-positioned to take advantage of the new credit, while others are not – particularly in their downtown areas. The key difference is in building eligibility. To qualify for the new credit, a property must be:
• Individually listed on the National Register of Historic Places
• A contributing property in a National Register Historic District
• A contributing property in a local historic district in a Certified Local Government (CLG) community, or
• A contributing property in a local historic district where the district and ordinance have been certified by the National Park Service
Over the last few decades, large National Register Historic Districts have been designated in many communities. In Marietta, approximately 2,300 buildings are included in such areas. Over 40 Ohio cities are now Certified Local Governments, and several dozen more have local design review or historic preservation ordinances that might qualify locally-designated districts for National Park Service certification.
Some communities, however, are not as fortunate – even mid-sized communities such as Canton and Springfield - when it comes the potential of using the credit to spur downtown revitalization. In Canton, a few downtown buildings are listed individually on the National Register – however Canton has no National Register District, it is not a CLG, and the local design review ordinance covers only landmarks, not districts, with landmarks being confined to properties listed individually on the National Register. Other downtown buildings that provide context but which might only qualify for the credit as part of a district are apparently ineligible.
A similar situation exists in Springfield. A handful of buildings downtown, including the Tecumseh Building, the Bushnell Building, the Shawnee Hotel and the Heritage Center, are individually listed. There is no downtown National Register District, however, Springfield is not a CLG, and there is no designated downtown historic district. The majority of older downtown buildings, therefore, are likely ineligible for the tax credit.
There are many more smaller Ohio communities where there are almost no eligible structures whatsoever, despite having otherwise deserving historic buildings. In Napoleon, for instance, the only apparently eligible downtown buildings are the Henry County Courthouse, the adjacent Sheriff’s Office, and two churches. In Ironton, only the Marting Hotel and the local railroad depot are currently eligible, which has led city leaders to work to place two additional buildings on the Register. In Dover, a community of 12,000, apparently only the Reeves House Museum so qualifies. In most rural communities with a population of 10,000 or less, there are few if any qualifying properties, commercial or residential.
This situation highlights the importance of preservation planning. The tax credit is designed to “put good money after good” – that is, to invest in communities where that investment is protected through local legislation or action. Let’s hope that the availability of the new tax credit prompts more Ohio communities to see the value in working to inventory and safeguard their past as a means toward revitalization.