Why historic preservation tax credits work so well

[Rocko]

And as a follow up, look what is posted at detroitnews.com today [[see below). Never mind that without HP tax credits, THIS project would NOT be happening. at all. period. the end.


April 18. 2011 2:52PM
Crews break ground on $53M Broderick Tower renovation

Louis Aguilar / The Detroit News

The long-awaited groundbreaking of the $53 million renovation of the Broderick Tower, the 34-story building in downtown Detroit's Grand Circus Park that's been empty since 1985, happened this morning.


Many Detroit Tigers fans know the Broderick Tower, designed by Louis Kamper, as the big blighted building that can be seen from the seats inside Comerica Park.


If things go as planned, apartment dwellers within Broderick will be able to take advantage of the building's commanding view of Comerica Park. Plans call for 127 apartment units, including two-story units that may fetch up to $2,700 a month in rent, according to Motown Construction Partners LLC, which owns the building.

The low end would be $600-a-month studios.

The ground floor is set to be a sports bar. A group called Invest Detroit will set up shop on the second and third floors.



laguilar@detnews.com

From The Detroit News: http://detnews.com/article/20110418/...#ixzz1JuKsOG8E

[swingline]

The Lansing City Pulse article had some spot on quotes from the Lansing EDC guy, Bob Trezise:

Trezise is one who disagrees. While he hasn’t completely given up hope on the Comfort Station project, Trezise said the governor’s plan to cut back on these types of tax credits is just a philosophical difference, particularly on how to redevelop cities.

“I don’t see how vacant buildings help cities,” he said. “My frustration [[with not granting the incentives) is that these historic and brownfield credits don’t cost taxpayers any money.”

Trezise said historic and brownfield credits are being viewed as the same thing as the film incentives.

“Our tools and incentives like these credits that help cities so much are tainted somewhat by incentives that really do give cash to businesses, i.e. film incentives,” he said. “We need to make sure each class of incentives are examined under the right category. I’m not sure that’s being done right now.”

* * * * * *

Trezise, who met with Snyder on incentives, said the governor argues that the market will determine where development happens.

“I argue that the free market has spoken loud and clear. The free market is urban sprawl and poor environmental policy,” he said. “I know what the free market did to cities. We don’t need to repeat history. These historic and brownfield credits at best even the playing field between contaminated sites and greenfield sites.”

The federal government and 30 states recognize that historic rehab credits work successfully to promote economic development, not to mention sound social practices for the built environment. Why should Michigan be any different? Our budget problems are no worse than most states. He could probably make retaining the credits revenue neutral in his budget proposal by making the new corporate tax rate 6.1% instead of 6%.