In preservation market, if you restore it, they will come

Walking the line between modern functionality and 19th-century charm, Charleston has become a national model for the historic preservation industry.

Many attribute Charleston’s preservation efforts to local and state government interest. But why would government entities want to preserve the past? According to those familiar with the preservation industry, historic districts are more economically viable than their non-historic counterparts.

“The city’s current vitality, thriving hospitality and real estate industries and fundamental livability are in no small measure a tribute to the success of the historic-preservation movement,” said Charleston Mayor Joseph P. Riley Jr.

Local, state and federal government agencies are invested in preserving historic buildings and districts with the direct incentive to keep the economy robust, according to Perrin Lawson, deputy director of the Charleston Area Convention and Visitors Bureau.

“The Restoration Economy,” a book by Storm Cunningham, claims the national restoration economy is a $2 trillion-a-year industry. As historic preservation has become linked to the economy, local and state governments have recognized the benefit of keeping a historic district. South Carolina is one of 20 states offering tax credits for rehabilitating historic buildings.

“Smiling Faces Historic Places,” a 2003 report by Miley & Associates Inc., studied the economic impact of the preservation market in South Carolina. Findings for the industry showed preservation creating 400 jobs annually in the state, mostly in construction and architectural services, and another 369 jobs created indirectly in related industries. Historic preservation increases property values, creates faster property appreciation and helps retain property value, the publication claims.

According to Miley & Associates, historic preservation results in $325.6 million annually in direct spending in South Carolina, with the direct creation of 9,097 jobs and another 2,300 jobs created indirectly in related industries.

In October, Charleston celebrated the 75th anniversary of the city’s first effective preservation ordinance. The Board of Architecture Review sprung from the 1931 ordinance and currently regulates downtown historic buildings. Owners can renovate or restore historic buildings in that area only if it does not affect the historical integrity of the building. This rule is applicable to every aspect of the building visible to the public right-of-way.

“Charleston’s historic preservation ordinance was the nation’s first and has served as the model for countless others around the world,” Riley said.

If a homeowner attempts to get around the ordinance by letting the building fall into a dilapidated state beyond repair, the city has a “Demolition by Neglect” provision. The provision forces building owners to maintain the property, not for minor repairs but to ensure that any damage does not affect the historical integrity of the building, said Eddie Bello, Urban Design and Preservation architect for the City of Charleston.

The board ensures that restorations and renovations retain “as much of the historic fabric as possible,” Bello said, adding that restrictions on building codes are “part of us living in an old city.”

Preservation includes the renovation and restoration process of historic buildings. Renovation updates a building, such as the owner of a 19th century home replacing damaged windows with modern double-pane glass.

“People don’t want to live in 1910,” said Robert Russell, director of the College of Charleston’s Historic Preservation and Community Planning program. He added that no completely original buildings exist downtown because of modern updates such as plumbing and electricity. Bello agrees that historic buildings must be altered to afford modern conveniences.

Restorations “restore” the historic fabric of a building. When restoring a home, the owner would replace hurricane-proof glass with window panes similar to those from the time period when the house was built.

Renovations and restorations in the city must maintain the balance between a museum-like preservation and modern functionality.

With so many visitors coming to see Charleston’s historic district, it has become economically sensible to conserve the historic buildings downtown. Cultural heritage is one of the fastest growing markets in the tourism industry, and the historical ambiance of Charleston is a top reason for visitors coming to the city, Lawson said.

Historic districts are especially attractive to baby boomers and 53% of South Carolina tourists visit with the primary purpose of seeing historic sites, said Jan Schach, dean of Clemson’s College of Architecture, Arts & Humanities.

In October, the College of Charleston released a report on the likes and dislikes of visitors to Charleston. At the top of the positive list was the city’s history and charm.

“Tourism has been beneficial for historic preservation and vice versa,” Lawson said.

Well-preserved historic districts also attract the “creative class,” which is comprised of college-educated individuals with disposable income. Creative class individuals help drive the economy through real estate and tourism, Schach said.

But tourism and real estate aren’t the only industries affected by historic preservation. How building owners maintain and preserve the historic integrity is often up to the private sector.

Construction expenses often cost more for historic buildings in comparison to new buildings, said Tom Magee, executive vice president and partner of NBM Construction.

To offset those higher costs, the state implemented historic-building tax incentives, Lawson said.

For every $1 million spent on a renovation project, 17 construction jobs are created in direct employment impact, according to Harry Miley of Miley Gallo & Associates.

“(You don’t need) a contractor, but a craftsman,” Bello said. “You’ve got to really know what you’re doing with these
older buildings.”

With newer buildings, contractors can run down to Lowe’s for replacement parts, said Bello. With older buildings, everything is unique, from the trim to the molding. While historic buildings must be maintained more frequently, Bello said most of them are better built than newer ones.

“Historic preservation is the foundation of Charleston’s remarkably successful tourism and hospitality industry, but is also a primary reason for the city’s great reputation for livability,” Riley said.