Tax Reform and Downtown Rehabilitation

From South Boston to Winchester, St. Paul to Norfolk, many of our Virginia communities have seen significant revitalization as a result of the Federal Historic Tax Credits (HTC). In many cases, if not most cases, rehabilitation of historic structures counts on this funding to make those projects work – and the credits are slated for elimination in the Tax Reform proposal under consideration.

Masonic Theatre, Clifton Forge, VA

The rehabilitation, re-use, and preservation of Virginia’s historic buildings is good for the commonwealth’s economy, according to a recent study conducted by Virginia Commonwealth University.  During a 17-year period, nearly $1 billion in tax credits leveraged almost $3 billion in private investment, resulting in the reuse of 2,375 buildings, ranging from warehouses, hotels, and theaters.

Where do you go for more, so you can put this economic development tool to good use?  Let me introduce you to your partners:

Here are your administrative partners.  While the National Park Service ultimately approves the federal Historic Tax Credit, the Virginia Department of Historic Resources (DHR) acts as the “gatekeeper”, administering both the federal and state tax credit programs. All applications go through DHR first and they also provide technical assistance.

Here are your advocacy partners. The National Trust for Historic Preservation and its subsidiary the National Main Street Center, a proven leader of preservation-based economic development, both work to educate national and local community leaders about its value. Your local preservation advocacy partner, Preservation Virginia, promotes this development tool, too.

Rehabilitated Masonic Theatre, Clifton Forge, VA

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VMS Commercial District Affiliate Grants Now Available!

Virginia Main Street has opened the application process for our first ever Commercial District Affiliate Grants! Affiliate Grants are designed to assist organizations and communities in achieving their downtown revitalization goals and be used for projects or planning purposes.

The maximum grant amount is $7,000 and can be used for…

  • non-profit organizational development;
  • vision/mission development;
  • work plan and budget development;
  • market studies;
  • downtown organization website development;
  • design projects;
  • entrepreneur support projects;
  • wayfinding system development;
  • economic vitality projects; or
  • other consultant services that will contribute to the historic downtown and for which other funds are not available.

Affiliate grants are available to registered DHCD Commercial District Affiliates and Virginia Downtowns. DHCD invites projects that hold the potential for positive impact on the downtown neighborhood’s long-term goals.

Applications for Affiliate Grants will be due on December 1, 2017, and the projects associated with the applications should be completed in our CAMS system by June 1, 2018. Our grant manual is available here!

Local Incentives Drive Community Development

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Manassas Ribbon Cutting

One of the most important ways that a municipality can support it’s small business community is through targeted financial incentives. A recent Potomac Local article touted the expansion of the city of Manassas’ business incentive programs, including Façade Improvement Grants and Landscape Improvement Grants. These incentives will assist with the exterior renovations and landscaping of existing commercial or industrial properties.  The new initiatives are designed to encourage business owners to reinvest in properties throughout the City and serve as a redevelopment tool intended to bring new life to older structures.  Each pilot program has been allocated $50,000 and property owners must agree to invest $2 for every $1 the City invests.

Incentives like these are used alone or as part of a package to retain and attract business to a Main Street district or generally catalyze projects.  They are often in the form of a grant or a zero- to low-interest loan to promote improvements and appropriate design.  Seed funding sources can come from Tax Increment Financing (TIF), bank partnerships, Community Development Block Grants (CDBG), municipal/county targeted funds, or private loans and grants.  Incentives can mean the difference between vacant storefronts and a vibrant downtown neighborhood.

Congratulations to Manassas!

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