Title
Resolution in Support of Legislation Reinstating State Historic Preservation Tax Credits: Senate Bill 54 and House Bill 4100
Memorandum
This is a resolution in support of state legislation that would reinstate State Historic Preservation Tax Credits.
The MI Impact Coalition, an initiative led by the Michigan Historic Preservation Network, is seeking to restore Michigan’s historic preservation tax credits. They have provided the following information and the facts recited in the Whereas clauses of this resolution:
Unlike the federal historic tax credit, the state credit can be used on residential properties, which would help keep Ann Arbor’s historic neighborhoods intact and preserved for future generations. It could also help make renovations of dormant commercial properties possible.
Staff
Prepared by: Christopher Frost, Senior Assistant City Attorney
Body
Whereas, The historic buildings, neighborhoods and places in Michigan villages, towns and cities distinguish each community and provide character and a sense of place that contribute significantly to the quality of life and the economic benefits enjoyed in and by each community;
Whereas, The preservation and rehabilitation of historic buildings, places and neighborhoods contributes to the beauty, character, and economic vitality of Michigan communities;
Whereas, The labor-intensive nature of historic rehabilitation creates jobs and investment in local businesses and has been proven to generate more economic activity than equivalent investment in new construction;
Whereas, Demolition or destruction of historic buildings creates costs to Michigan and its communities by destroying the often-irreplaceable construction and ornamental materials of each structure and by adding significantly to landfills, whose makeup is estimated to be more than 40 percent building materials and waste;
Whereas, Development and redevelopment within established villages, townships and cities is encouraged by Governor Whitmer;
Whereas, Many public policies and financial and lending practices and policies create disincentives or barriers to the preservation, renovation and rehabilitation of historic buildings and resources and create a preferential financial environment for new construction;
Whereas, Michigan has measured the economic impacts of the former Michigan Historic Tax Credit programs between their enactment in 1999 and their elimination in 2011 and seen significant positive direct impacts on the revitalization of neighborhoods and communities, the preservation and creation of affordable and market-rate housing, the creation of skilled local jobs, and the subsequent private investment in areas surrounding tax-credit-driven revitalization projects;
Whereas, Each $1.00 of credit issued leverages $11.37 in direct economic impact, such that the former Michigan Historic Tax Credit programs during their twelve-year history have leveraged $251 million in Federal historic tax credits that otherwise would not have returned to Michigan, spurred $1.46 billion in direct rehabilitation activity, and created 36,000 jobs; and
Whereas, The Michigan Legislature is presently considering Senate Bill 54 and House Bill 4100 that would reinstate an up-to-25 percent investment tax credit for owners of historic residential and commercial properties who substantially rehabilitate their properties;
RESOLVED, That the City of Ann Arbor endorses and supports both Senate Bill 54 and House Bill 4100 and calls upon the Michigan Legislature to pass this important legislation and Governor Whitmer to sign it, in order to stimulate appropriate development and redevelopment and protect the historic character and quality of life of our communities; and
RESOLVED, That a copy of this resolution be forwarded to the Michigan Historic Preservation Network.
Sponsored by: Councilmembers Bannister, Ramlawi and Hayner