PRESERVATION AND ECONOMIC IMPACT
HISTORIC PRESERVATION ….
Is Cost Effective • Major rehabilitations typically cost between 9% and 12% less than new construction; the lifespan for rehabilitated historic buildings is typically 100 years versus 30-40 years for new construction.
Creates Jobs • 60-70% of a rehabilitation project is labor, most of which is hired locally and spends locally; $1 million in building rehabilitation generates more jobs than most other key industries.
Enhances Property Values • A study of historic districts in Alabama indicates that the values of properties in locally designated historic districts rose between 29% and 60% faster than similar properties outside historic districts.
Revitalizes Main Street • Main Street programs nationally have generated a reinvestment ratio of 27:1 for each dollar of community money invested.
Attracts Investment •It is the differentiated product that commands a high premium; communities that capitalize on their historic resources become differentiated products that attract investment.
Attracts Visitors•78% of U .S. leisure travelers (118 million adults) participate in cultural and/or heritage activities w hen traveling;
§ heritage travelers spend, on average, $ 994 per trip compared to $ 611 for all U .S. travelers;
§ cultural/heritage travelers took an average of 5 trips in 2008-2009 compared with slightly less than 4 trips for non-cultural/heritage travelers;
§ travelers visiting historic sites in Alabama create 5,900 jobs, $96 million dollars in payroll each year, and $5.1 million dollars in state sales and income revenues
Prevents Sprawl • Saving historic buildings and keeping Alabama’s towns and cities healthy reduces the pressure to pave the countryside; reinvestment in older neighborhoods is reinvesting in inherently sustainable communities that are generally dense, walkable, transit-accessible, and functions with mixed-uses.
Creates Affordable Housing •In 2005, using the federal rehabilitation tax credits, 1,101 units of affordable housing were created in historic buildings; historic structures are often located close to services and public transportation, reducing transportation costs for residents.
Is Good Economic Development•In Alabama, the use of rehabilitation tax credits stimulates an average annual private sector investment of $17.4 million and creates
§ an average of 400 jobs and $14 million dollars in household income for the state economy;
§ six more jobs and $230,000 more in revenue from rehabilitation projects than $1 million dollars spent on new construction; and
§ 9 more jobs and $290,000 more in income than $1 million of manufacturing output.