Report: Preservation Adds Jobs, Spending to Local Economy
Preservation activities add millions of dollars and thousands of jobs to the local economy through building rehabilitation and heritage tourism as visitors flock to see historic places. That's according to a new report by the Washington State Department of Archaeology and Historic Preservation, which is expected to publish the document this month. The report examined several results of historic preservation, including a boost to heritage tourism.
After analyzing tourism spending, the study, "The Economic Benefits of Historic Preservation in Washington State," found that heritage tourists spent $630 million statewide in 2004, $307 million in King County alone. More than 20,000 jobs were tied to heritage tourism, including 8,472 in King County. Statewide, the workers earned more than $510 million; King County workers earned $209.5 million.
Heritage tourists typically visit historic buildings, districts, sites, and museums where they can experience the places that authentically represent a community's past and present. Many of these places are officially designated as historic by governments, which encourages owners to restore structures with tax incentives. The study examined the impact of theses incentives.
The study focused on two readily documented programs: the Federal Historic Tax Credit, a 20 percent credit for "substantial" rehabilitation of an historic structure; and the Washington Special Valuation Program [pdf], which allows owners to deduct rehabilitation costs from an historic building's assessed value once the rehab is complete. Because the study did not include the impact of all private, non-profit, and government spending, the findings can be considered conservative.
The study found that the incentives leveraged an average of $83.5 million a year in rehab spending statewide from 2000 to 2004. The spending supported 2,320 jobs, paying $87 million in wages each year. In King County alone, the incentives encouraged $51.8 million in spending a year, supporting 1,230 jobs paying $43.1 million in wages.
The report also reviewed the effects of the Washington State Downtown Revitalization/Main Street Program, which helps communities revive downtown areas. Statewide, the program generated $165.3 million in annual sales from 2000 to 2004, supporting 2,625 jobs. And the report looked at the impact of historic designation on property values, finding that designation likely increased property values faster than values in non-designated neighborhoods in two of four historic districts researched.
For more information and a copy of the report, contact Greg Griffith, 360-586-3073, greg.griffith@dahp.wa.gov.
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