Historic Tax Credit program vital to downtown progress

Wuth May being Historic Preservation Month, there is much to celebrate within downtown Shreveport. Last month, Lt. Governor Jay Dardenne and the Office of Culture, Recreation and Tourism awarded the Ogilvie Hardware Lofts project in downtown Shreveport the 2013 HERITAGE Award for preservation.

The statewide award is given to a program or site that has successfully leveraged assets to provide greater cultural value to its region within the state.

Also nominated for the award were the Shreveport Regional Arts Council’s new home, Central ARTSTATION, and the George T. Bishop Building.

Ogilvie was also awarded a Leadership in Energy and Environmental Design for Home Gold designation, the first mid-rise in the country to achieve this honor.

Making projects such as this possible has been the state’s Historic Tax Credit program. Established in 2002, Louisiana fostered the HTC program, making it one of 31 states to offer the incentive.

Through state income taxes, the HTC program works to encourage business developers and investors to rehabilitate unused historic buildings in exchange for a 25 percent tax credit.

In a report compiled by Louisiana State University professor, Dr. Timothy P. Ryan, titled “The Economic Impact of Louisiana’s Historic Tax Credit Program,” he noted that from the induction of the HTC in 2002 through 2011, more than a half a billion dollars was created over new spending in the state’s economy.

Annually, the projects created $147.29 million in income for Louisiana residents and supported a total of 5,711 permanent jobs in the Louisiana economy.

The 117 historic renovations made possible by 2011 had stimulated $651.13 million in new investment in rehabilitating historic properties that cost the state $140.59 million in tax credits for the investment.

“Most U.S. cities in the 1950s gutted their downtowns, got rid of old buildings and built new things, but Shreveport didn’t,” historian William Lane Callaway said.

“A lot in downtown is still intact.” Callaway said that by the year 2020, Shreveport will have more buildings that will be 100-years-old than any other place in Louisiana, outside of New Orleans.

Liz Swaine, executive director of the Downtown Development Authority, has been on the frontlines of the fight to improve downtown Shreveport for residents, businesses and tourists.

In recent years, residential housing, companies and tourist attractions have opened downtown with many more projects in the works. Many of the projects have incorporated historic buildings.

Swaine said the HTC encourages business developers to consider these old buildings downtown for rehabilitation, as it serves as a safety net.

The HTC has made many plans possible for businesses in Shreveport- Bossier: Central ARTSTATION, artspace, Shreveport Municipal Memorial Auditorium, Robinson Film Center, Ogilvie Hardware Lofts, Prevot Design Services and more.

“Without the HTC, we would not have been able to develop the Ogilvie Hardware Lofts project,” said Matt Harris, managing director of multifamily development for Provident Realty Advisors Inc. “The HTC provided a substantial amount of equity funds. Without the HTC, there would be no sources of funding to rehabilitate the building and convert it to apartments. The HTC is critical.”

The Ogilvie Hardware Lofts, located at 217 Jones St., opened last year in the Ogilvie Hardware warehouse, which was built in 1926 and had sat vacant since 1999.

Prevot Design Services, APAC, opened in 1921 in the vacant George T. Bishop antique car dealership and event space.

Now, Mark Prevot, president of Prevot Design Services, and his 11 staff members occupy a portion of the building with their architecture offices.

Prevot’s wife, Paula Prevot, owns and runs the attached event space as a separate event planning business.

Harris and Prevot saw Louisiana and, more specifically, Shreveport as an ideal location for their companies because of the ample opportunities.

“Downtown Shreveport has a good employment base and a demand for high-quality living,” Harris said.

Both businessmen said that without the HTC, their venture is not possible.

“The state tax credit program combined with the federal tax credit program got our attention,” Prevot said. “Feasibility, from a financial perspective, would not be here for this type of project because of the expense it takes to rehabilitate a building like this.”

Callaway said tax dollars are made from the companies who employ local residents, contract local companies for construction jobs and bring people into the area to work from other states.

Since Texas does not have a HTC program, many developers are crossing the state line to do business, Swaine said. Tourists are also coming from afar as a part of a phenomenon called heritage tourism. This growing trend brings people across the country into areas that have a large historic base.

“The HTC is the single most important economic development tool we have downtown, bar nothing,” Swaine said. “If we have it, we’re competitive. If we don’t, we are not. It’s as simple as that.”

The appeal for historic buildings lies deeper than the credits. Swaine said the renovation of buildings and sites will generate a long-lasting effect for Shreveport.

The HTC is the single most important economic development tool we have downtown, bar nothing. If we have it, we’re competitive. If we don’t, we are not. It’s as simple as that.

For one reason, it eliminates vacant buildings.

“In downtown Shreveport, two-thirds of the buildings that have been redone with the HTC were vacant before they were rehabilitated,” Swaine said.

“Vacant buildings are havens for things you don’t want to happen. Vacant buildings are vandalized and have to be boarded up. They are not creating a tax base, opportunities or jobs.”

Restoring an existing site also preserves a sentiment for residents and creates character for the city.

Prevot’s re-opening of the event hall was due to the high demand from Shreveport-Bossier residents.

“A lot of people approached us and asked if we were going to re-open the event space,” Prevot said.

“So many people loved the space and really cherished the place. It opened up our eyes that we had something that is a part of the fabric and history of this town.”

Prevot said they preserved the unique character of the old lobby, and through the event company 601 Spring Street, the building will once again hold weddings, Christmas parties, corporate events and more.

“We are bringing commerce downtown that hasn’t been in play for several years,” he said. “We’re bringing back spending money in downtown Shreveport.”

– Tiana Kennell