Following an exploration of historic Lewisburg, WV, where we visited stores, investigated historic sites, and met with the Visitors Bureau staff…
…we changed into our conference clothes, readied ourselves for the beautiful Greenbrier, and prepared ourselves for a different type of learning.
The Rest is History: Historic Preservation Tax Credits and Economic Development
by Chrissy Biello
Our favorite session was titled Historic Preservation Tax Credits and Economic Development, an appropriate topic inasmuch as three of us had completed internships with the Economic Development Department for the City of Huntsville. For this session, The speakers included Eric Nelson, a West Virginia State Senator; Danielle Waltz, Partner at Dinsmore & Shol LLP; and Shaw Sprague, VP of Government Relations at the National Trust for Historic Preservation.
The speakers provided a comprehensive overview of the federal Historic Tax Credit (HTC) program. Initiated in 1978 with a 10% credit and made permanent in 1986, the program now offers a 20% credit based on qualified expenditures. This federal credit is available only for commercial properties and is distributed over five years at a rate of 4% annually. This detailed explanation was enlightening, as it clarified how federal policies are structured to support long-term preservation efforts.
They further discussed how transferable credits can significantly impact financing for preservation projects. Transferable credits are valuable because they allow property owners with limited tax liability to sell their credits to other taxpayers, thereby facilitating the financing of historic renovations. This concept is crucial for cities seeking to revitalize older areas without relying solely on their own financial resources.
The speakers also covered how states can optimize various tax sources to support these programs. For instance, Texas, which lacks an income tax, leverages business or insurance taxes to fund preservation efforts. This strategy was particularly interesting to me because it showcases how states can creatively utilize available resources to achieve their preservation goals.
An illustrative example from West Virginia was the Wesbanco Building, a 17-story office building built in 1972. Despite its initial drawbacks, such as not having a sprinkler system and being abandoned, a developer acquired it for only $5 million and utilized HTCs to renovate the property! This truly demonstrates how historic tax credits can transform underperforming assets into valuable community resources.
Another example shared was from Fayetteville, West Virginia, where old schools are being repurposed into community assets. Ms. Waltz explained how an elementary school is being converted into a 20-24 unit apartment building, with additional townhomes planned. This project, supported by HTCs, has created 30 construction jobs and will provide 25 permanent jobs upon completion.
The speakers effectively offered a new perspective (to us) on the complexities and benefits of preserving historic buildings and towns, making it another great session at the Southern Legislative Conference.
To make the experience even better, we had the opportunity to speak with Senator Nelson and Mr. Sprague following the event. Senator Nelson, showing the kind of constituent service that has helped him win reelection since 2010 in West Virginia, helped us with our plans in Charleston, WV for the following day.
Many thanks to all the speakers and, especially, Senator Eric Nelson.
Family Night for the LEAP Family
Following a day full of learning, we had an evening full of activities–some for everyone. We began by taking the scenic route to The Greenbrier, which involved going to the Herns Mill Covered Bridge, one of many such historic structures in West Virginia.
To divert ourselves for a bit, we sent Chrissy into the one-lane bridge. We figured if a car came from the other direction, we could see how fast Chrissy was capable of running in high heels. Just our luck, though, no car came through.
Consequently, we had to take her to The Greenbrier, where the SLC, in creating Family Night, had something on tap for everyone.
For Chrissy, we had smores.
Cinthia, meanwhile, summoned her inner Lizzie Borden, and she ventured into axe-throwing for the first time.
This proved to be a popular sport among the group, and Professor Yawn noted, with some concern, that we could be pretty accurate when motivated.
Olivia proved to be the marksman with a bow and arrow. She managed kill shots in two of the three targets, earning her the moniker, “Killer in High Heels.”
She displayed greater fear, however, when confronted with a live animal.
Michelle, on the other hand, was the Dr. Doolittle of the group…
…and the falconry proved popular, being the only activity every member of the group engaged in.
Cinthia, however, seemed to have the most fun with it.
When we weren’t fiddling around with animals or weapons, we took advantage of the opportunity to see expert fiddler and West Virginia native Philip Bowen, who has earned praise from NPR and other national media for his authentic sound and bow virtuosity.
And what would a Southern Legislative Conference be without hearing from a legislator? This year, we again heard from West Virginia Speaker Roger Hanshaw…
…who welcomed everyone to the conference, spoke of things to come, and helped us feel at home–in a very nice home.
And, reflecting on a day that saw us go to Carnegie Hall, rub shoulders with legislators, throw axes, serve as a perch to a falcon, shoot arrows, and enjoy smores, we headed back to our hotel (a Holiday Inn) to find some rest before another busy day.
Center for Law, Engagement, and Politics 