Living on Main Street - National Trust for Historic Preservation


Living on Main Street - National Trust for Historic Preservation
Living on Main Street:
New Strategies from
Connecticut & Iowa
National Main Streets Conference
March 31, 2015
 Moderator - John Simone, President & CEO
 CT Main Street Center
 Diane Smith, Program
Development Officer
 CT Housing Finance Authority
 Susan Westa, Community Engagement Director
 CT Main Street Center
 Michael Wagler, State Coordinator
 Main Street Iowa
Learning Objectives
 Learn about regulatory tools and creative incentives
that can encourage downtown redevelopment
 Understand the impediments small property owners
face & the technical assistance they need to take the
next steps toward redevelopment
 Learn about innovative financing tools to close the
 See how Main Street organizations can play a role &
why it takes a “village” to redevelop a downtown
How it all began in CT
Market Opportunity
 CHFA’s lending products
• Residential mortgages to 1st time homebuyers
• Construction & permanent financing to
affordable multifamily rental
• Low-Income Housing Tax Credits
 Identified need
• Rental opportunities at community scale
• Technical assistance
• Financing options
Market Opportunity
 Over 116,000 units of housing are in structures
with 5 – 19 units with or without commercial
 Existing Buildings
• Blighted, underutilized or vacant
• Historic in nature
• Privately owned
• Urban, suburban and downtown
Partnerships: Suburban
& Rural Communities
 Administered on behalf of CHFA by the
Local Initiatives Support Corp. &
Connecticut Housing Coalition
 Supports affordable housing development in
Connecticut’s Suburban & Rural
Communities by Providing
• Outreach
• Technical assistance
- Organizational Development
- Planning & Policy Assistance
- Project Technical Assistance
• Education & Training
• To support affordable housing development in
Connecticut’s suburban & rural communities
• Creation of 261 new
affordable units
• An additional 502
units in planning or
development stages
• Directly leveraged
over $43 million in
total development
Partnerships: Suburban
& Rural Communities
Northfield Firehouse 2 units – Litchfield, CT
Stuart Farms 5 units – Kent, CT
Ferry Crossing 16 units – Old Saybrook, CT
Mixed Use &
Mixed Income Opportunities
 Naturally affordable markets
• Low-income geographies
• Historic central business districts and downtowns
• Aging neighborhoods
 Public/Private planning and investment
• Privately owned properties
• Municipal economic interests
• Public/Private financing partnerships
 Public policy goals
• Transit Oriented Development
• Expansion of Housing Affordability
Downtown Neighborhoods
Sources of Funds
State Historic Tax Credits
Financing (Debt)
First Mortgage Loan
Seller Financing
Additional Funds Needed
Total Sources
Development Costs
Construction Hard Costs
Site Acquisition
Financing & Interim Costs
Fees & Expenses
Total Costs
Partnership for Success
Connecticut Main Street Center
Connecticut Housing Finance Authority
The Problem
Connecticut’s downtown properties
are needlessly under-utilized and under-valued.
Asheville Big Box vs. Downtown Mixed-Use Development
The Opportunity
N.Y. Times, 10/20/14
Where Young College Graduates Are Choosing to Live
“…The number college-educated people age 25-34
living within city centers has surged…even places like
Buffalo & Cleveland.
…. (these) cities have a chance to be the economic
powerhouses of the future.”
The Challenge
has become very complex
Mixed-Use Real Estate Planning
A Pilot Program
Consultant Team
Crosskey Architects
Local Initiatives Support Corp.
Pilot Communities
New Britain
Community Engagement
Community Liaisons
Advisory Team
Community Meetings
What’s right for your town?
 Downtown Development Audit
 Recommendations for regulatory changes,
parking requirements, marketing and
financial incentives
 Model Building Analysis
 Redevelopment Plans
 Assistance to Property Owners
 Downtown Management Assistance
Lessons Learned
 Small, mixed-use developments are some of the
hardest real estate deals to accomplish because:
 Older building gut rehabilitation (most costly)
 In complex downtown settings
 It requires well-integrated public-private
 Market and affordable rental rates are often the
same, making market rate apartment financing
Lessons Learned
 Many state and federal resources are only available
to projects larger than a typical downtown
 Community meetings supported the assumption
that there is a growing interest in living downtown
 Education & technical assistance programs are
needed to prepare property owners for
redevelopment & property management
Addressing the “Gap”
 Federal & State historic tax credits
• May work but many downtown projects are too small
 Tax Increment Financing (TIF)
• Recently introduced legislation to expand CT program
 Commercial Property Assessed Clean Energy (C-PACE)
• Financing for energy upgrades
 Tax abatement
• Potential to expand local programs
 Incentives for city workers to live downtown
• Live Where You Work
Overall Findings
Land use regulations promote redevelopment
Parking is always an issue
Downtown property owners are not developers or
even landlords
The financial gap for redevelopment is significant
A mechanism is not available to address the gap
Model Building
 Owner: The Amato Family
• Across the street from the
owners’ long-established shop,
Amato’s Toy and Hobby
 Redevelopment Plan: 6 units
• 4 large loft-style apartments &
2 smaller apartments in back
 Too small to take advantage
of historic tax credits & other
housing programs
Lessons Learned
Model Building
Owner: Torrington Downtown Partners
Location: 11-21 Main Street
Redevelopment Plan: 16 units from 8 units
Assistance to Property Owners
 Torrington Downtown Partners
A unique partnership of local businessmen - with
construction experience but not developers
Purchased 9 downtown buildings
Invited residents and stakeholders to participate
Years 2 & 3
 New Britain getting ready to move forward
 Property owner is a developer
 Looking for assistance with Historic Tax Credits
 High hopes for Meriden & Norwich
 Meriden owner is a contractor & time is right
 Norwich owned by City & NCDC
 New Model
 Must happen soon or will loose building
The Challenge
It takes a “village” to successfully redevelop
under-utilized downtown properties
It’s a risk with great rewards for the entire
community and therefore worth the community’s
investment of time and resources
Living on Main Street: Iowa
Foundation for Support
 Upper Floor: Creative Solutions and
Lessons Learned
 Getting Results: The Economic
Impact of Main Street Iowa
 Iowa Upper Story Housing
Feasibility Study
 Facilitated Market Analysis
 Property Tax Analysis Tool
Case Studies to Tell Stories
Upper Floor: Creative Solutions and Lessons Learned
In-depth Look at Main Street
Getting Results: The Economic Impact of Main Street Iowa
Local Impacts
Using the information to spur local development and support
State Impacts
Continued funding for Challenge Grant program
7 Federal Appropriations:
$4M bricks and mortar
83 project awards
$36M leveraged
2 State Appropriations:
$2M bricks and mortar
27 project awards
$5.5M leveraged
1/3 of awards for upper floor projects creating or updating nearly 200 units.
State Impacts
Shifting priorities of recovery funding
By the #s…
State Leadership Takes Notice
Iowa Upper Story Housing Feasibility Study
Local Information Drives Priorities
Locally Facilitated Market Analysis
Consumer Surveys Upstairs
Downtown Summary:
12.3% Yes
22.3% Maybe
New Customized Perspective
Property Tax Analysis Tool
*Value per acre
Woodbine Mt. Pleasant Cedar Falls
Big Box Retailer $302,450
Downtown - Unoccupied $157,147
Downtown - Occupied $2,533,104
Other Incentives
State & Federal Historic Tax Credits
Main Street Iowa Loan Program
Local Bank Partner Loan Pools
Locally Developed Tools:
TIF, Tax Abatement, Incentives
Project Case Study:
Jo-Lynn Shoe Shoppe, Fort Madison, IA (11,051)
Project Case Study:
Brimhall Building, State Center, IA (1,468)
Project Case Study:
I.O.O.F. Building, Woodbine, IA (1,459)
Lessons Learned
Creativity / No Project is the Same:
Funding, Design, Challenges, Resources
Lessons Learned
Funding, Design, Challenges, Resources
Lessons Learned
Urban Pioneers/Leaders/Mentors
In community, Regionally, Not just at the beginning
Lessons Learned
Promotion and Marketing of Projects
Role/partnership opportunity for local Main Street program
Lessons Learned
Creditability of Local Main Street program
assists success of sustainable upper floor development
Contact Information
John Simone
[email protected]
Susan Westa
[email protected]
Diane Smith
Michael Wagler
[email protected] [email protected]
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