As reported by the Virginia Department of Historic Resources (
DHR), rehabilitation makes business sense. Between its beginning in 1997 through December, 2006, state tax credits have been awarded for 1,219 qualified projects. This workshop was also discussed at the May 5 Planning Commission meeting.
Used to spur private investment, nearly $1.5 billion has been focused on rehabilitation of buildings at least 50 years old. There is a specific criteria, yet most of us would be surprised at what types of projects become "more affordable" when qualifying for this type of incentive.
In the Blacksburg, Christiansburg, Radford metropolitan statistical area, $4.6 million in private investment has occurred, with another $1.1 million coming from tax credits, on nine projects.
None of these projects occurred in Christiansburg.
Beyond preservation of buildings, other program dividends include enhancing the quality of life, increasing the social capacity of communities, promoting heritage tourism, and providing educational opportunities to reclaim a community's legacy.
Other direct economic benefits include creating a larger inventory of affordable housing, urban revitalization, the preservation of open space, efficient development using existing infrastructure, reducing automobile dependence, and conserving resources.
Additionally,
historic preservation reduces pressure on landfills, enhances local revenues through increased property values, increases opportunities for business and retail activities in central business districts, boosts tourism and provides a catalyst effect for additional economic development.
The DHR reports that for every $1 million spent rehabilitating Virginia historic buildings, this translates into the creation of 5.1 jobs in the construction sector, 6.2 jobs in other sectors, and generates $467,000 in household earnings through wages and benefits.
Historic preservation and rehabilitation or re-use of existing buildings is a means for attracting new businesses, residents and visitors each year. A full report on the Economic Impact of Virginia's Historic Rehabilitation Tax Credit Program can be found at www.dhr.virgina.gov.
So, Christiansburg -- what are we waiting for?