Showing posts with label tax credits. Show all posts
Showing posts with label tax credits. Show all posts

Monday, December 5, 2011

Shop Local, Shop Unique

In our area of Southwest Virginia, we have been hit hard by losses to manufacturing and population, an unhealthy obsession with chain stores, and minimal appreciation of historic buildings. All of that has combined to kill off downtown areas that were once thriving, leaving many empty storefronts. Many of our communities are beginning work to reverse that trend with the help of federal and state programs like transportation funding for downtown revitalization, CDBG funds, historic tax credits for building restoration, and tourism initiatives like 'Round the Mountain and the Crooked Road that highlight our local heritage artisans and musicians.  Many of our communities are still a long way from being destinations for tourists, but there are some specialty shops and restaurants that are drawing visitors for an afternoon.  


We're trying this holiday season to shop locally where possible to help encourage more local businesses in our area and put more money back into our local economy.  It might cost a little more, but the gifts we're buying are unique and better quality than those we find at the big boxes and the atmosphere is much more jolly, which is definitely worth the extra investment to us.  Here's our shopping plan:
  1.  Shop Locally-Owned.  Shop the unique shops.  We visited an alpaca farm, an Amish store, and an old and newly restored mercantile this weekend.  We met the owners of each of those businesses who were more than happy to chat with us, find out where we were from, and answer any questions we had.  We know exactly where (and to whom) our money went.  Can't really say that about the big box store, can you?
  2. Shop Hand-Made.  How about a gift with a little imagination?  Go hand-made!  In our area, 'Round the Mountain provides lots of options to find beautiful, unique, and well-made gifts from local artisans.  Don't feel like leaving home to shop?  Look around on the Etsy website to find all kinds of hand-made items that you've never even thought of, but that might be the perfect gift for that hard-to-buy-for friend.  And while you may purchase something at Etsy from an artist or crafter in California or France, it's still the same principle: you're shopping a small, locally-owned business so you know exactly where your money is going.
  3. Shop Made In USA.  And when we find ourselves at the big box store with just a day left until Christmas?  We'll look for the "Made in USA" label.  And vow to shop earlier next year.





Monday, April 18, 2011

How National Register Listing Can Attract Business

Our small town was once a bustling metropolis.  Okay, not really, it's always been a small town, but all of the empty buildings downtown used to be full of stores, restaurants, and other businesses.  Today, we have a few businesses and some traffic, but nothing like the photos of 50 years ago.  What happened?  The main road bypassed town.  Fortunes changed as employment at the chemical plant dropped to less than a quarter of its peak.  Reliable cars and improved roads made it easier to drive farther for supplies.  So today, we're left with a downtown full of empty storefronts.

In the last several years, a renaissance of sorts has begun with the old hotel reopening.  The owner has helped restore several other buildings so we now have a cafe/coffee shop to complement the well-known locally-owned home style restaurant and an artisan's shop to complement the art gallery that has been here for years.  These are wonderful businesses for a county that has embraced tourism as one of its future economic drivers.

The town has outgrown its old office building just off of Main Street and needs to either build new or rehabilitate an existing downtown building.  This is not a rich town so all expenditures undergo extensive scrutiny.  A local developer has offered to purchase the empty old furniture store on Main Street, rehab it, and rent it to the town with the option to buy in the future.  The idea is that this could bring a viable entity to downtown that could entice others to rehab other buildings and make downtown a vibrant place once again without costing the town as much as it would if they were to pay for the construction themselves.

So what is the sticking point?  The developer won't begin the project unless the downtown area is listed on the National Register of Historic Places.  This makes perfect business sense.  If the building is listed or in a district that is listed, then the developer will be able to take advantage of federal and state tax credits to reduce the cost of the rehabilitation by up to 45%.  Furthermore, National Register listing can help attract other investment downtown because other developers can take advantage of tax credits as well.   

There is some concern among residents that having a National Register Historic District will limit the town in some way.  This couldn't be further from the truth.  Unless the town creates a local historic district with local zoning ordinances, building owners are able to do as they please with their National Register buildings.  Being registered encourages owners to be good stewards of the buildings, but there is no legal means of making sure that happens.  Registered buildings are eligible for state and federal rehabilitation tax credits of up to 45% and technical assistance from the Virginia Department of Historic Resources for such projects.  

A small investment of $10,000 for a consultant to prepare the National Register nomination will help us to get a new town office building, and potentially attract businesses, and their accompanying tax dollars to downtown.  The town can help its residents embrace the future through the county's tourism initiative and other local business so the next generation will live in a bustling metropolis and the empty buildings will be but a memory.