Answer to comments from 7/30/2007

From Amy 7/30/2007: What is the purpose of the panel discussion being held 8/2/2007 at the Solarium Community Center?
From Anonymous 7/30/2007: The real question is why the nominating committee for the historic district REFUSE to participate. What do they want to hide?

The two questions posed here are interrelated. We have received this question from several other residents and therefore decided to answer the questions in a new post.

First, the panel discussion being held 8/2/2007 is sponsored by One Oakhurst. As stated in the July 2007 Oakhurst Leaflet this group opposes the proposed local historic district. The article also stated that this group will be compiling the questions for the first half of the meeting.

Similarly, in an e-mail from a representative of One Oakhurst regarding our participation in the panel we received the following response; “this panel is the culmination of efforts by Oakhurst:One Community. We have specific ideas and goals for this panel and have worked very hard to this point. We do not intend to have those efforts undermined or hijacked.” We will be happy to provide anyone interested with the full e-mail regarding the invitation so they will understand the context of this quote.

There is nothing wrong with an opposing group sponsoring a panel discussion, but it was obvious in our discussions with the One Oakhurst that the panel discussion would be directed toward one view. Additionally, the structure of the panel discussion, including who would sit on the panel and how the discussion and questions would be conducted, was very fluid even a week before the event. With consideration to all of these factors we decided it was best for us not to participate.

We have been invited to provide some literature at the meeting and will be in the audience to answer any questions that may arise concerning the application. We encourage residents to attend and hear One Oakhurst’s questions answered by the panel they selected. There will be valuable information presented. However, as always we encourage you to listen critically and do your own research. This is the same advice we have given at other community meetings and on this blog. We will be happy to discuss any question you may have regarding the information presented at the panel discussion.

Things to consider when looking at empirical studies

Historic Property Values and Property Tax Payments
This paper is Chapter 8 of a larger study. http://www.njht.org/dca/njht/publ/chap8.pdf

In the paper it discusses the contextual consideration for historic designation and it’s possible effects on property value. One of the economic considerations not generally carved out is “current use” versus “highest and best use”. “Current use is the existing utilization of a property; highest and best use is the most profitable use incorporating those uses that are legally permissible, physically possible, and financially or economically feasible (Kinnard 1971,39)” So when considering study results you must consider is the study comparing properties that are being used for their highest use. This would be the case in most single family neighborhoods because the highest and best use is R-60 or R-85 or other residential designation where there is no higher underlying zoning use such as commercial or high density residential that you may see with town homes or in very urban environments.

Another factor to consider is whether the area under protection is sufficiently large enough to “achieve the spatial critical mass necessary to encourage rehabilitation by the property owner, financial institution investment, community organization activity, and other spin-offs, which ultimately may translate into enhanced property values.” You can see this in action in Chicago where there is a large, highly-regulated local historic district, surrounded by less stringent districts and then further surrounded by voluntary programs that work because of the critical mass.

Property type is another consideration. Residential property owners are more likely to pay a premium for assurance that desirable neighborhood features will be retained and property values protected. Commercial districts benefit from similar ambiance and perceived image, but it limits what industries are willing to pay a premium.

Other considerations are the difficulty or intricacy of a façade and alteration potential in the property. To put this in terms related to the Oakhurst proposed district; we have less ornate architecture and the majority of the homes have the ability to expand under current zoning. Therefore the impact of local historic designation would be less intrusive.

“The literature on the subject of historic designation’s influence on property value generally points to a positive, or sometimes neutral, effect from designation. Only a handful of studies that specifically consider the costs of alteration and demolition come to a negative impact conclusion” There is a listing in the article of studies from 1974- 1994 that are empirical studies showing considerable benefit to property values from local historic district. It is pointed out that empirical studies do not have the property context to compare to an individual neighborhood. When considering the theoretical considerations/complications mentioned at the beginning of the article one could conclude that it is likely to improve the property values within the proposed local historic district and the surrounding areas.

Historic Designation and Property Values in Memphis July 2004

Link to another study regarding historic designation and property values
http://www.blackwell-synergy.com/doi/pdf/10.1111/j.1540-6229.2005.00127.x?cookieSet=1

Conclusions:

The literature on the effect of historic designation of neighborhoods has sharpened over the years. It started in the mid-1970s with comparison of average aggregate neighborhood property values, and since the early 1990s, it has elevated to address individual property values. In this article, we believe we take the analysis one step further by analyzing the change in property values, rather than by simple differences in assessed property values, across comparative designated and undesignated neighborhoods.We believe this nullifies some of the
objections of using assessed values in such an analysis, while at the same time mitigating some of the bias that may be inherent in the differences between designated and undesignated neighborhoods that are otherwise deemed to be similar.

Our analysis used a rather unique set of appraisal data for the years 1998 nd 2002 obtained from Memphis’s Landmarks Commission. As in several prior studies, our data set contained relatively equal numbers of properties in designated and undesignated districts. It also contained a single historic neighborhood with no undesignated companion that had a large swath of historic structures replaced by new construction during the past few decades.
After controlling for numerous variables that mostly pertain to differences in architectural style, functional features and housing quantity, we find across these Memphis neighborhoods that when properties were in neighborhoods zoned historical by the authority of the City of Memphis, it significantly raised property values at rates above those in other similar neighborhoods, that is, 14–23% higher. Given that local designation is a more important determinant
than national designation, it is possible to view this result as arising from the stricter guidelines embodied in local designation (which may be manifested in more assiduous upkeep, for example) rather than the cachet effect of designation, although this is a tentative conclusion.

A Little Bit of History

History Finds It’s Way to Our Doorstep

In August 2002 my husband and I bought our first home, 244 Third Avenue. We were drawn to the slight curve of the tree lined street and row of classic bungalows. We knew this was home.

It took four months to renovate but it was so worth it. We felt it important to maintain the original feel of the home. We restored some layers and peeled away others. Vintage toys were found in far corners of the dirt basement, marbles and long lost jewelry in the A/C ducts. When we pulled out the vanity in the bathroom we discovered discarded razor blades from the 1940’s. Stuck in a kitchen pantry wall we found a William Randolph Hurst Newspaper from the early 1920's. At times I thought I smelled smoke or freshly sprayed perfume in the back hallway. Everything we discovered about our home's history made us more connected to it.

By Christmas we were living in our home. We married in the spring of 2003 merging his family from the northern England and mine from southern United States. Our son Kai was born July, 2004. He took his first steps and said his first words here. As I walk around my home I often think of the families that were here before us. Some got married, some had children, they gathered for Holidays and Sunday dinners. We now share similar memories.

One day three women were at the foot of my driveway chatting and taking pictures of my home. As I stepped out to greet them they scurried up, delighted to tell me that their Grandmother, Harriett Ferry Williamson, lived in this home for over 40 years. Kathy du Plesses, Marty Beth Lytal and Susan Wyman- three cousins were about to take a walk down memory lane.

As we walked up the front steps they paused wondering if the yellow glider could possibly be the same one they enjoyed as children. They and nine other cousins spent the summers sleeping out on the front screened-in porch together. Throughout our tour they shared laughter, tears and a remembrance of a home that was so much more than walls, doors, windows and floors.

Their piano sat in the dining room. Grandmother’s room was in the back with a vanity right where mine is now. She took great pleasure sitting at the vanity for a smoke and absolutely loved to spray perfume in the hall as she walked through the mist. The family who lived in back had chickens. The well known Dr. Smoot lived next door. A peeping Tom from Feld would sometimes peer from the front steps into the window of the front bedroom where Harriett Ferry and her two daughters shared a room; so many stories to share.

On Mother's Day weekend of this year, ten members of the Williamson family visited. It was Harriett Williams’ 80th birthday and a treasured moment for their family and ours.

Great-Grandmother Harriett Maudsley Ferry’s son Lou bought this house for her and his older sister, Winifred in 1924 for $7000.00! The three lived here from 1925-1935. In 1935 the home was shared by Harriett Ferry Williamson and her daughters, Harriett and Dorothy, “Aunt Dot” who shared the front room/parlor, two brothers Dick and Russell shared the middle bedroom and Great-Grandmother Harriett Maudsley Ferry and her daughter Winifred “Aunt Fred” shared the back bedroom. Yes, seven people, three of which were named Harriett, shared one tiny bathroom! They could see Stone Mountain from the top of the house. Produce peddlers used to sell their wares up and down the street shouting “yo peaches and yo apples”. Honeysuckle and fruit trees were scattered throughout the yards. On Sunday mornings the neighborhood pianist, Ruby Alexander could be heard across the street singing and playing her heart out. From our front porch you could also hear the congregation at Oakhurst Baptist Church singing hymns.

The family members graciously sent us stories and photos of their home from almost every decade: Young Harriett's 1936 communion picture in front of the peach tree in the back yard. Great-Grandmother Harriett Ferry in 1948 standing in front of her prized climbing roses. Son-in-laws, Ted Williams and Bill Mahon (football player for Georgia Tech) smiling mischievously in the front yard as Mother Harriett Williamson looks on in the background. Twelve cousins piled on the glider on the front porch in the summer of 1960. They are a wonderfully close family. We are fortunate to be able to share their memories.

I now realize that the day we signed the mortgage we were not just buying a home, we were now a part of the history this home, of Oakhurst, and a continuation of the cycle of family, memories, welcoming neighbors, trees and life.

Letter to residents regarding the local historic district

There was an article in the July 2007 issue of Atlanta Magazine that state the following: "While the City of Atlanta has gained new residents at a rate we haven't seen since the seventies, it seems that middle-class homebuyers are leaving the region as builders raze older homes and replace them with zillion-dollar condo developments or gigantic infill houses."

It reminded me a bit about discussions in Oakhurst not too long ago. In early 2005 there was a lot of discussion in Oakhurst about in-fill. There were many concerns because as land values were rising developers had to build bigger and bigger homes to make the profits they desired. There were many problems associated with the bigger (and in our case taller) homes; (1) they dwarfed the surrounding houses taking away from the historic and quaint character of the neighborhood (2) the median price for new homes at that time was $550,000 or nearly twice the price of a renovated home (3) by maxing out the impervious and floor ratio percentages for a lot we were maxing out our infrastructure capabilities and creating an environmental problem.

It is safe to say that Decatur residents want flexibility in the ordinances to allow continued value gains in existing homes and to encourage development. At the same time we are all concerned about the problem described in the Atlanta Magazine article, that we are rapidly losing housing that is affordable for not only our poor but our middle class. In just two years the average home price has increased by approximately $150,000.

The proposed local historic district has sought to resolve the three issues mentioned above. By adding an additional overlay over the existing zoning laws - and possibly over the more aggressive proposed zoning laws - we hope this can be accomplished. First, the zoning laws allow new homes to be built and existing homes to be renovated to an average of 2,200 square feet. This is based on the average lot size and floor area ratios under the current in-fill zoning. The local historic district overlay attempts to keep the massing of a home of this size on our small lots that does not loom large over surrounding homes. This will help to retain the historic and quaint character, while allowing expansion and development. Second, such an overlay encourages a wide range of housing sizes which means there will be homes priced from $200,000 - $700,000 throughout the district. This means that we can continue to provide housing for middle class residents that want to live in Decatur. Third, this also means that more renovation will be encouraged versus new construction. This eliminates the amount of debris headed for the landfill. In most cases, it also creates less impervious surface which has significant environment impact and provides relief for our infrastructure.

The necessary changes to “fix” the current in-fill zoning laws to have the same impact as the local historic district overlay in addressing these three concerns would be dramatic and possibly harmful to those living throughout Decatur. The flexibility under the overlay allows communities to protect their unique character without impacting another community with different concerns.

It is true that the local historic district overlay adds another layer of government oversight. But the alternatives are (1) to add greater restrictions to the current in-fill zoning laws that may hurt continued development or (2) leave zoning alone and continue to destroy the unique character of our neighborhood and continue to drive away the socio-economic and cultural diversity of our neighborhood. I hope that you will support this additional government oversight in an effort to address the three main concerns regarding in-fill, continue to encourage growth and development and protect our unique historic character.

Sincerely,

Your neighbors that support the proposed local historic district


Seek more information:
Oakhursthistoricdistrict.blogspot.com
preserveoakhurst@gmail.com

Boundaries of the proposed local historic district

There was a question sent to our e-mail address asking how the boundaries of the local historic district where determined.

Town of Oakhurst was formed in 1910. The Decatur Resource Manual states that the main streets of residential development for the town of Oakhurst were Park Place, Viola (Madison), College Avenue, Mead’s Road (Mead Road) and Winter Avenue. Subdivisions included Lenox Place (1910) Madison Subdivision (1910), Winters Subdivision (1910), East Lake Land Development Co., (1910), Feld Realty (1910), John Ridley (1910). Lenox Place was not included within the boundaries because the community felt they no longer had an identity linked to Oakhurst. An annexation map shows that the area within the boundaries was annexed into Decatur at the same time, which was later than Greenwood Place, Greenwood Avenue, Olympic Avenue, Jefferson Place, W. Benson and W. Hill. The streets included have a consistency in architecture and represent a cohesive representation of a particular time and provide a sense of place. The architecture and development draw a clear picture of life in one of the earliest subdivisions in Decatur and a community transitioning from rail to trolley to automobile. The very early history of this community was used to determine boundaries. But there are layers of history contained in these streets that is indicative of the neighborhood and Decatur as a whole. More to come.

It is true that there are older and grander homes scattered throughout Oakhurst. It has been said by many that the entire area could qualify for historic preservation protection. However, when gathering information and comments related to the local historic district the area within the boundaries stood out as a concise time in history with a consistent architecture that was mostly intact with strong community interest in seeking protection.

Comparative Property Values Analysis

There is a study performed by Timothy McLendon & JoAnn Klein for the Center for Governmental Responsibility at the University of Florida Levin College of Law. The study is Comparative Property Values Analysis Use of GIS Mapping to Review Property Appraisal Data. Here is a link to the study: http://www.law.ufl.edu/cgr/pdf/Tech-Chapter7.PDF

Here is the conclusion of the study:

This initial comparative study reviews the effects of historic preservation on specific neighborhoods in the selected cities, which form a fair sample of large and medium-sized communities in the Florida peninsula. This review of assessed values was broad, examining more than 28,000 parcels of residential property. To this extent, the findings of this study do reflect the relative success of historic preservation in the selected communities.


One important conclusion is clear: in no case reviewed here do historic preservation programs so “burden” property as to decrease property values. Indeed, in the vast majority of cases, designated residential properties performed as well as or better than comparable undesignated properties. This was especially the case for single family residential property, but also true for small-scale multi- family residential property (see tables in Appendix B). This study shows that
local neighborhood historic preservation efforts may justly be considered as “value-added.” Such a conclusion is especially significant given the legal implications of government land use regulations, which are often alleged to “burden” the use of real property or impose some “inordinate economic burden” on the landowner. 19 If local governments are able to demonstrate that any incidental “burdens” associated with the protection of historic resources are
accompanied by an accompanying “benefit” in the form of increased property values, this may form a valuable insulation both against Fifth Amendment Takings challenges and against challenges brought under Florida’s Private Property Rights Protection Act.20

QUESTION regarding comparison to Druid Hills Historic District

Bob posted the following question under another post:

"The Druid Hills neighborhood, which contains some of the oldest homes in the city, only requires historical accuracy on the front of the home. Why is it that we are considering stricter standards than one of the oldest neighborhoods in Atlanta, a neighborhood that contans homes designed by and lived in by some of the most well known people of the city, and of the world? Requiring only the front of the home to meet historical standards seems that it would achieve any goals considered by a preservationist point of view while allowing people to actually create a home that meets the needs of a modern way of life. "

We are not experts on the Druid Hill Historic District, but this is what we know...
In 1966 the National Historic Preservation Act Passed
In 1975 Druid Hills Parks & Parkways were listed on the National Register of Historic Places
In 1979 Druid Hills community was listed on the National Register of Historic Places
In 1982 Druid Hills was designated a Historic & Cultural Conservation area
In 1989 Protection was heightened to a Landmark District
In 1994 DeKalb County designated it as a Historic District

The design guidelines read as follows:

The primary goal for the community is to preserve the historic and visual integrity so they continue to convey a sense of time and place associated with periods of historic development. The historic relationships of buildings to each other, their sites, lot layouts, and landscapes are important.

The primary goal for individual historic resources is to preserve the integrity of each surviving historic structure, lot layout pattern, and site. Design guidelines for alterations should focus on appropriate rehabilitation procedures that will retain those character-defining features that distinguish the historic resource while allowing for appropriate development. These guidelines should be congruent with the Secretary of the Interior's Standards and Guidelines for Rehabilitation of Historic Buildings.

Design Review Objective - When making a material change to a structure that is in view from a public right-of-way, a higher standard is required to ensure that design changes are compatible with the architectural style of the structure and retain character-defining features. When a proposed material change to a structure is not in view from the public-right-way, the Preservation Commission may review the project with a less strict standard so as to allow the owner more flexibility. Such changes, however, shall not have a substantial adverse effect on the overall architectural character of the structure.

The standard for design review appears to be as viewed from the right-of-way and does not preclude review for the rest of the home. The "viewed from the right-of-way" standard is actually the proposed standard for the Oakhurst design guidelines without application to that which is not viewed from the right-of-way. That would indicate that our proposed standard is actually less than Druid Hills and more in keeping with your suggestion that the front of the home be used as the standard.

Neither Druid Hills or the proposed Oakhurst guidelines state that a home must meet historic accuracy. On the contrary the goal is historic integrity. The purpose is to allow homes to change and expand and even use modern materials.

As for the ability to expand a home the local historic district does not regulate the size of your home. The City of Decatur in-fill zoning laws make that determination. There are examples of significant additions to homes in the MAK district that illustrate what level of expansion can be done in a local historic district with design review for all four sides of a home. Photographs and addresses for such will be posted as a separate post.

Design guideline input has been provided to the Historic Preservation Commission. We anticipate they will have a draft ordinance and design guidelines available for the community in late August.

Why pursue a local historic district designation?

To answer this question we refer you to a previously referenced article: "What are Historic Districts Good for Anyway?" published by the New Hampshire Division of Historical Resources.

http://www.nh.gov/oep/programs/MRPA/conferences/documents/WhatAreHDsGoodFor-logo.doc.

The New Hampshire legislature sums up the reasons for pursuing a local historic district when they extended the right to create them to their municipalities:

“The preservation of structures and places of historic and architectural value is hereby declared to be a public purpose. The heritage of the municipality will be safeguarded by:
I. Preserving a district in the municipality which reflects elements of its cultural, social, economic, political and architectural history;
II. Conserving property values in such district;
III. Fostering civic beauty;
IV. Strengthening the local economy; and
V. Promoting the use of a historic district for the education, pleasure, and welfare of the citizens of the municipality.”[RSA 31:89-a (1963), now RSA 674:45]

The law was later revised to emphasize the importance of cultural resources and community history.

What does it mean to preserve community history?

There once was a City called Oakhurst. The history of the existence of that City has been erased by the development of MARTA. We have no sense of place in regard to how that City once looked. Therefore, many of the stories of the people who formed that City are also lost. What we do have is the first church established in that community and a sense of the community that formed that City.

What does it mean to have a sense of history?

If you stand in Harmony Park and look toward the intersection of Oakview and East Lake you can visualize the five point intersection that once existed. You can see the path of the trolley lines and if you use your imagination you can hear the trolley bells. We have one of just a handful of such places. Most intersections have been altered beyond the recognition of their history. We are not advocating that every intersection be frozen in time. We are not advocating that transportation improvement not be made. We are not advocating that the community stop growing or stop building. We are advocating preservation of a bit of the history that remains in our community so we can preserve the stories of those who once lived here and those who live here now.

There are many more layers of history to preserve beyond the initial development of the community. Check back and we will share that history with you.

Rome Georgia Case Study

Case study on Rome, Georgia on the impact of historic preservation on local economies in Georgia - http://www.athensclarkecounty.com/~planningdept/hpecon2.html

Here is the conclusion:

“As a preservation advocate and practitioner, the City of Rome demonstrates that historic preservation does have a quantifiable economic and fiscal impact upon local communities. Measurable benefits in areas such as real estate activity, construction activity, and commercial activity are definable through use of the National Trust for Historic Preservation's model. Initial statistics indicate that historic preservation activities contribute financially, as well as aesthetically, to the community. Real estate data, such as property assessment values, support the conclusion that local designation does have a significant impact upon historic property values. Construction activities, such as rehabilitation projects and revitalization programs, contribute to the local economy through job creation, local sales tax revenues, and a strengthened tax base. Though yet to be fully measured, commercial activities such as tourism also contribute to the local economy. As the adoption of preservation strategies spreads, historic preservation serves to reinforce the economic position of Georgia's communities.”

Question regarding economic value of local historic district

We received the following question from Colleen regarding the economic impact of the local historic district on property values. Colleen also sent an e-mail referring to a published study by Peter V. Schaeffer and Cecily Ahern Meillerick. This study is protected by copyright and can not be printed on this blog. While this study is referenced in articles refuting the positive economic impact of local historic district on property values it actually concludes that historic district has a positive impact on property values overall. It states that some specific streets or homes may actually be negatively impacted. This study was later refuted by another well know public policy expert in a February 2007 report (16 years later) and the finding are actually refuted in the many studies quoted on this blog.

Here is Colleen's question:
You have a lot of information on this site regarding the improved property values within a local historic district. One-Oakhurst Community has delivered a flyer to my home that states "studies show that small and/or unremodeled LHD property values stagnate or decline because buyers fear difficulty and additional expense of remodeling". Have you come across such studies in your research?

Given the many studies listed on this blog and the first paragraph of this post you may be surprised that we think that the impact of local historic district on property values in Oakhurst is unknown. There are too many economic factors to consider when determining such an impact. However, we will note that the local historic districts in Decatur, Georgia have exceeded the national average for property value increases. Similarly, they have matched or exceeded the increases for the City of Decatur's best performing increases. You question is difficult to directly answer and is why we advocate a 24 month "reconsideration period". We recommend that the ordinance allow reconsideration of the historic designation after 24 months.

Virginia Study on Economic Impact of Historic Preservation

Virginia’s Economy and Historic Preservation: The Impact of Preservation on Jobs, Business and Community (‘95) - prepared for Alliance Virginia by Donovan D. Rypkema

“Certainly not every historic district in every community can expect values to climb at these rates. But the claim that historic designation somehow reduces property values is simply a claim with no basis in fact whatsoever.”

Building big is not necessarily building better

Article from Charlotte, NC's Creative Loafing: "McMansions are Us" http://charlotte.creativeloafing.com/gyrobase/Content?oid=oid%3A6590

The article should be read in full. Using a definition of McMansion typical of the urban Atlanta area and Decatur of a home built to the maximum of the allowed lot coverage that is oversized and massed to have the appearance of looking much larger than the surrounding homes.

Some quotes from the article that I find interesting are as follows:

"But environmentalists and smart-growth proponents say McMansions could have dire implications for Charlotte. The natural resources needed to maintain larger houses and the traffic created by McMansion sprawl should have everyone concerned, from millionaires to paupers, they say."

"McMansions "tend to kind of create their own world." Gone is the simple master bedroom, he says. It's been replaced with a "master resort" complete with juice bar and exercise room. Gone is the den or TV room. It's been replaced with the home theater. And gone is the kitchen or breakfast nook. It's now a café. "They're actually creating the town hall, the café and the theater all within their house," Low says. "The communities don't deliver all of this. A classic suburban subdivision delivers exclusiveness and privacy, which is what suburbia is all about. What it doesn't deliver is community; basically, the McMansion is a substitute for community life."
McMansions have environmental groups increasingly worried about the impact large homes have on communities."

"Meizhu Lui, executive director of United for a Fair Economy, a liberal advocacy group based in Boston, said the demand for larger homes is driving less affluent people out of the home buying market as developers look to high-end homes for a bigger buck.
"Even though people need smaller houses that are affordable, the market is not as hot for those, Lui says. "They've really reduced affordable housing.""

"Some observers predict a retreat from McMansions. Low, the architect, says the Baby Boomers who buy huge homes are retiring. Faced with the prospect of walking up so many stairs and maintaining such a large house, they're looking for something smaller in walkable, mixed-use neighborhoods, he says. And the "young, hip creative class" will continue migrating downtown. "What's going to start happening is there'll be this gradual decanting from McMansion life, because it's boring," he says. "They could be our future slums," he says. "

The majority of Decatur residents are retired, semi-retired and professional couples without children. Are you willing to give up the unique historic character of your neighborhood to attract the mythical "modern family" portrayed by developers? We are not advocating restricting renovation and new construction, but rather smart development that promotes growth while retaining the very important historic character of our neighborhood.

Assessing the Impact of Local Historic Districts

Assessing the Impact of Local Historic Districts on Property Values in Greensboro, North Carolina (‘96) – prepared for Preservation Greensboro by Jo Ramsey Leimenstoll, University of North Carolina at Greensboro

“The study revealed that property values after designation increased more in the designated historic districts than in the non-designated comparison neighborhoods. While each pairing represented a different scenario, a statistically significant increase in property values over the comparison neighborhood during the post-designation periods was found across the board.”

Controlling height and mass via zoning is expensive

Ask the City of Austin -http://sanjose.bizjournals.com/pacific/othercities/austin/stories/2007/07/16/story11.html?b=1184558400%5E1490177

The City of Austin, Texas responded to it's citizen's outcry over houses being built out of scale with neighborhing houses through new zoning laws. Because this zoning must be applied uniformly across the entire City it had a negative impact. Using zoning to protect the unique character of a neighborhood and provide affordable housing is like using a chainsaw to slice a pie. Such zoning is hard to manage both for the City employees, architects, and builders.

The local use of historic district designation means that the City can have zoning regulations that are flexible and simple to follow. The additional overlay allows a community to protect their historic resources and diversity of their community without impacting the entire City. It also means that the neighborhood gets greater flexibility to renovate and rebuild while still protecting the property values of smaller houses and protecting the historic nature of the neighborhood. A win-win.

Smaller Homes Could Lose Value as Out of Scale Homes are Built

Here is an excerpt from CNN’s Open House aired 3/31/2007
As Atlanta City Councilwoman Norwood points out the oversized house can literally cause the smaller house to lose value because it is only worth the land. It becomes a tear-down. Norwood tried to pass new regulations that would limit the size of houses to help maintain the character and look of Atlanta's signature neighborhoods.

Local historic district works in a similar fashion. It protects the unique historic character of an area while still allowing additions, new construction, growth and development. It takes a little more work, but the results can be phenomenal.

The entire transcript can be found at
http://transcripts.cnn.com/TRANSCRIPTS/0703/31/oh.01.html
Here is the entire piece regarding McMansions
WILLIS: McMansions, those oversized homes that seem to be popping up all over the country. Well, they're not always popular. In fact, some neighbors are downright determined to keep those ginormous (ph) houses out of their town. That's what's going on right now in Atlanta.

(BEGIN VIDEOTAPE)WILLIS (voice over): Drive through Atlanta's older neighborhoods, and they're hard to miss -- new houses, most of them big, and some the subject of controversy.

DORIS BETZ, ATLANTA RESIDENT: If you go down the streets and you see these out-of-scale, out-of-proportion homes to the craftsmen bungalows around it, it just looks like it doesn't belong. It's just not keeping with the integrity, the historic integrity.

DAVIS: Atlanta City Councilwoman Mary Norwood is leading the fight against so-called McMansions.

MARY NORWOOD, ATLANTA CITY COUNCILWOMAN: If you are the egregious example and you are three to four times the size of the house next door, that house can literally lose value because it is only worth the land. It becomes a tear-down.

WILLIS: Norwood is trying to pass new regulations that would limit the size of houses, and she hopes would help maintain the character and look of Atlanta's signature neighborhoods. But critics say the regulations won't work.

DAVID GREEN, ATLANTA ARCHITECT: If they make the changes that are proposed, it's going to become an incredibly complicated, complex process, that ultimately really won't have any effect on the way that we see the houses from the street. [zoning laws changes make it more complex]

WILLIS: The proposed regulations are complex, but they boil down to restricting the square footage and height of a new home, based on the size and elevation of the lot.

COOPER PIERCE, ATLANTA ARCHITECT: I think we have come up with recommendations that will limit that bulk, but still allow people, if they want to build a 3,000-square foot home or a 5,000-square foot home in an existing neighborhood. [recommendation are similar to the local historic district design guidelines]

WILLIS: But opponents say the regulations won't allow even modest two-story homes to be built on some lots. And some folks here say in order to bring families into established communities, larger houses are a necessity. [local historic district allow the community to create specific guidelines that protect their specific resources]

CINDY DAVIS, ATLANTA HOMEOWNER: People don't want to live in a small house anymore. People want to have a larger house, especially if it's more than one person living there, you know. This neighborhood traditionally had been a lot of single people, a lot of younger people, and that's changing. And the housing stock is changing with that. [actually the neighborhood is only 15% single, 15% retired, 25% married/committed no kids, rest are families - scare tactic from the neighbor]

WILLIS: Changes that could have a major impact on the look and feel of Atlanta's neighborhoods. (END VIDEOTAPE)

WILLIS: Those proposed regulations are still being debated in Atlanta. The earliest they could go into effect, May of this year.

The Economic Benefits of Historic Designation

The Economic Benefits of Historic Designation, Knoxville, Tennessee (‘96) – prepared for the Knoxville – Knox County Metropolitan Commission, Knoxville Tennessee by Ann Bennett

“All of the neighborhoods have experienced an increase in average sales price per square foot. Old Knoxville North, with a 157% increase from 1990 through 1994, has seen the most dramatic rise in value, with the other two study areas also experiencing an increase that far exceeds the average for Knox County as a whole. The greatest increases were in the two historic areas.”

Is Decatur in danger of losing its middle class?

There was an article in the July 2007 Atlanta Magazine (http//www.atlantamagazine.com/article.php?id=332)
Here is an excerpt: "While the City of Atlanta has gained new residents at a rate we haven't seen since the seventies, it seems that middle-class homebuyers are leaving the region as builders raze older homes and replace them with zillion-dollar condo developments or gigantic infill houses."

It reminded me a bit about discussions in Oakhurst not too long ago. In early 2005 there was a lot of discussion in Oakhurst about in-fill. There were many concerns because as land values were rising developers had to build bigger and bigger homes to make the profits they desired. There were many problems associated with the bigger (and in our case taller) homes; (1) they dwarfed the surrounding houses taking away from the historic and quaint character of the neighborhood (2) the median price for new homes at that time was $550,000 or nearly twice the price of a renovated home (3) by maxing out the impervious and floor ratio percentages for a lot we were maxing out our infrastructure capabilities and creating an environmental problem.

It is safe to say that Decatur residents want flexibility in the ordinances to allow continued value gains in existing homes and to encourage development. At the same time we are all concerned about the problem described in the Atlanta Magazine article, that we are rapidly losing housing that is affordable for not only our poor but our middle class. In just two years the average home price has increased by approximately $150,000.

The proposed local historic district has sought to meet the three issues mentioned above. By adding an additional overlay over the existing zoning laws - and possibly over the more aggressive proposed zoning laws - we hope this can be accomplished. The zoning laws allow new homes to be built and existing homes to be renovated to an average of 2,200 square feet. This is based on the average lot size and floor area ratios under the current in-fill zoning. The local historic district overlay attempts to keep the massing of a home of this size on our small lots that does not loom large over surrounding homes. This will help to retain the historic and quaint character, while allowing expansion and development. Such an overlay encourages a wide range of housing sizes which means there will be homes priced from $200,000 - $700,000 throughout the district. This means that we can continue to provide housing for middle class residents that want to live in Decatur. This also means that more renovation will be encouraged versus new construction. This eliminates the amount of debris headed for the landfill. In most cases, it also creates less impervious surface which has significant environment impact and provides relief for our infrastructure. In sum it addresses all three concerns.

The necessary changes to current in-fill zoning laws to have the same impact as the local historic district overlay in addressing these three concerns would be dramatic and possibly harmful to those living throughout Decatur. The flexibility under the local historic district overlay allows communities to protect their unique character without impacting another community with different concerns.

It is true that the local historic district overlay adds another layer of government oversight. But the alternatives are either to add greater restrictions to the current in-fill zoning laws that may hurt continued development or to leave zoning alone and continue to destroy the unique character of our neighborhood and continue to drive away the socio-economic and cultural diversity of our neighborhood. I hope you will support the additional government oversight as a way of addressing all of the concerns regarding in-fill for our communitywhile still supporting growth and development.

Preservation & Property Values in Indiana

Preservation & Property Values in Indiana (Sept. ‘97) - prepared for Historic Landmarks Foundation of Indianapolis, Indiana by Donovan D. Rypkema

“Historic Landmarks Foundation decided property values provided one concrete measure of the effect of local historic districts. To quantify the impact of local districts on property values, we commissioned Donovan Rypkema, a Washington, DC real estate expert. We collaboratively selected representative districts in Anderson, Elkhart, Evansville, Indianapolis, and Vincennes for the study. Rypkema’s study methodology, detailed on the next page, centered on Multiple Listing Service and U.S. census data. I’m pleased to report that our instincts are solidly verified by the numbers. As this study shows, property values rise with local historic district designation, equaling if not outpacing similar, undesignated areas and often the performance of the city
as a whole.”

Historic Preservation at Work for the Texas Economy

Historic Preservation at Work for the Texas Economy (‘99) - based on a report by The Center for Urban Policy Research at Rutgers University, Texas Perspectives and The LBJ School of Public Affairs at the University of Texas at Austin
“The study examined nine Texas cities. In all nine, historical designations stabilized property values. Seven of these showed significantly higher property values within designated historic districts when compared with similar but nondesignated areas. In some cases, as much as a 20 percent difference existed between a designated area and a non-designated area. The remaining two cities could not establish a quantifiable increase or decrease in property values.”

The Impact of Historic Districts on Residential Property Values

The Impact of Historic Districts on Residential Property Values (Sept. ‘03) - prepared for the New York City Council by the New York City Independent Budget Office

“Conclusion:
IBO found clear evidence that after controlling for property and neighborhood characteristics, market values of properties in historic districts were higher than those outside historic districts for every year in our study. Although the results for price appreciation during particular sub-periods are mixed, for the entire 1975 through 2002 period properties in historic districts increased in price at a slightly greater rate than properties not in districts. Finally, there is not sufficient evidence to conclude that districting itself causes higher prices or greater appreciation.”

Historic Designation and Property Value

Historic Designation and Property Value – A Study of the Des Moines Local Historic Districts: Owl’s Head and Sherman Hill (‘99) - prepared for the State Historical Society of Iowa by Charles Masterson

“This study concludes that historic designation has a positive effect on property values in both Owl’s Head and Sherman Hill.”

Profiting from the Past

Profiting from the Past: The Economic Impact of Historic Preservation in Georgia
(‘99) – Prepared for Athens – Clarke County Unified Government and Historic
Preservation Division of the Georgia Department of Natural Resources by Joni Lettle and Patrick Tigue

“Historic preservation activity enhances property values. Studies undertaken in various communities throughout the state show the positive net impact of preservation. Recent studies in four cities—Tifton, Rome, Athens, and Savannah—confirm that historic preservation enhances property values.”

Historic Districts Are Good for Your Pocketbook

Historic Districts Are Good for Your Pocketbook: The Impact of Local Historic
Districts on House Prices in South Carolina (Jan. ‘00) - prepared for the South Carolina Department of Archives and History by John Kilpatrick of the University of South Carolina’s College of Business.

“A repeat sales methodology was used to measure the effect of local districts on house prices over time. The results show that local historic district designation had a definite positive impact. House prices increased faster in the protected neighborhoods than in the market as a whole. The annualized rate of return for houses in the two local districts was 7.3%, while for the entire Columbia market it was 5.8%. Therefore, the average homeowner in one of the local historic districts enjoyed a per year gain in house value 26% greater than homeowners outside the
districts.”

The Economic Benefits of Historic Preservation in Colorado

The Economic Benefits of Historic Preservation in Colorado (Jan. ‘02) - prepared for the Colorado Historical Foundation by Clarion Associates of Colorado, BBC Research and Consulting and Place Economics

“Summary: Property Values
Historic designation does not decrease property values. Property values in the designated areas experienced value increases that were either higher than, or the same as, nearby, undesignated areas.”

The Economic Benefits of Historic Preservation in Michigan

The Economic Benefits of Historic Preservation in Michigan, Technical Report (Oct.‘02) - prepared for the Michigan Historic Preservation Network
“Summary of Findings”
The property values debate—‘What effect does local historic district designation
really have on property values?’—is a complex issue involving multiple variables
that change widely by community. Our Michigan research supports the
conclusion that local historic district designation does not decrease property
values. This effect was not observed in any of the case studies researched for this
study or in any similar national studies. On the contrary, property values in the
designated areas experienced value increases that were either higher than, or
similar to, nearby, non-designated areas.”

Local Historic District is a zoning overlay

A local historic district is a zoning overlay and does place additional restrictions on property owners. We will not know what the restrictions are until the final design guidelines have been developed.

Here is a quote from a study performed in South Carolina - http://www.state.sc.us/scdah/propval.pdf“Historic district designation provides protection from negative externalities. The economic value of this protection far out weighs the negative value of any use, maintenance, or other restrictions placed by the ordinances. We know that the protection far outweighs the restrictions because the value jump is both economically and statistically significant”

Case Study on Athens Georgia

Athens Georgia Study
Case study on Athens, Georgia regarding the impact of historic preservation on local economies in Georgia – http://www.athensclarkecounty.com/~planningdept/hpecon.html
“Athens' history of preservation efforts made it an ideal location to study the economic impact of National Register and local designation on the community. The National Trust model provides for the analysis of real estate, construction, and commercial activity to quantify preservation's economic contributions. Through analysis of such data, collected in Athens, the study brought these benefits to light. In the sampled study areas, property assessment values show that designated districts, especially locally designated, have increased in value faster than their non-designated comparison areas. Downtown Athens has shown especially strong results. Both the Main Street Program and national designation have contributed greatly to this success. Construction data shows comparatively high levels of financial investment in designated areas. Additionally, the rehabilitation of these properties have contributed more temporary jobs, permit revenue and tax dollars to the community than have non-designated neighborhoods. Once again, the downtown has outperformed all other study areas. Numbers for tourism, in general indicate growth in Athens, and as a host city for the Olympics, the 1996 numbers are sure to increase. Thus, data gathered in accordance with the Trust methodology shows the significant fiscal impact of preservation on Georgia communities. Historic preservation is good business.”

Sprawl

Sprawl

OK. Sprawl really has nothing to do with the local historic designation and most living in the City of Decatur are aware of the things mentioned in this article, but I thought it was interesting anyway.

http://www.smartgrowth.org/library/Richard_Moe.html

Case study on Tifton, Georgia on the impact of historic preservation on local economies in Georgia –
http://www.athensclarkecounty.com/~planningdept/hpecon3.html

Here is the conclusion:
“The citizens of Tifton have made a strong commitment to preserving their community's historic character. Programs such as Main Street have helped to revitalize the downtown area, while local residents take pride in their historic neighborhoods. The information compiled using the National Trust methodology reflects this outlook.
Tourism, construction, and real estate activities analyzed in this study were shown to have a positive impact on the Tifton community. Statistics indicate that tourism is a growing industry in the region. Construction data shows that designated residential neighborhoods contributed double the jobs and twice as many dollars to the local economy when compared to non-designated areas. Analysis of real estate figures confirms preservation's contributions. The property tax values in designated areas were shown to increase at the same rate as those in non-designated neighborhoods. Since obtaining local designation in 1988, property values in the downtown area have appreciated at a rate greater than the other areas. Overall, the data supports the designation of historic areas as a means of maintaining economic viability. The success of the Myon Complex renovation represents the community's confidence in preservation as a form of progress.”

What are historic districts good for anyway?

Interesting article on historic districts:

www.nh.gov/oep/programs/MRPA/conferences/documents/WhatAreHDsGoodFor-logo.doc

“Daniel Webster once said that a person who doesn’t respect the past isn’t performing his [or her] duty to the future. “

“Historic districts have the paradoxical twin virtues of stability and flexibility. They encourage continuity and the care of existing properties, while respecting changes over time ‑‑ layers of life ‑‑ that add architectural richness and visual variety to townscapes. But they do not prevent new construction, nor should they prohibit contemporary design that is respectful of existing resources.”

“What about the reasons NOT to have a local historic district? Whenever the idea of historic districting comes up locally, “historic district horror stories” are sure to follow. Most of them are either misinterpretations, or misunderstandings, or just plain wrong “

A few statistics from GAPC

Here are a couple of state wide statistics taken from the Georgia Alliance of Preservation Commissions (GAPC) regarding local historic districts:
http://www.uga.edu/gapc/

*Of the estimated 114 communities with a historic preservation ordinance, 71 participate in the Certified Local Government Program.
*92% of applications for a Certificate of Appropriateness (COA) are approved, on average.

Article on Buying a Home in a Historic District

Here is a link to an article on buying a home in a historic district. http://www.bobvila.com/HowTo_Library/Buying_a_Home_in_an_Historic_District-Home_Buying-A1541.html

The purchase of a home is the single largest investment for the majority of Oakhurst residents. We do get taxed more (by law) if the value of our homes increase. I do not know many who would want the alternative of their property values decreasing to avoid tax increases.

Here is a quote from the article:
“Some historic district commissions may require replacement of damaged materials in kind, that is, with material or design features original to the building. While the alteration of an historic home may require specific or expensive materials or craftsmanship, it will be balanced with the likelihood that the investment will hold. Additionally, your neighbor's protected property is also less likely to be altered in a manner that might reduce your property value.”

MORE on Economics, Sustainability and Historic Preservation

This is more from the link referred to on the previous post. It is a must read for anyone considering their position on local historic district. http://www.nationaltrust.org/advocacy/case/Rypkema_Speech_on_Sustainability_in_Portland.pdf
This is the "new community design" that the National Governors Association put together for promoting continued stable and sustainable growth in their states. What is missing here is the fact that local historic districts do this by preserving what was designed under the principles 50+ years ago. It costs less, conserves more energy, and creates more community spirit. That is what we want to preserve.

National Governors Association, they call it New Community Design. In their publication –
New Community Design to the Rescue – they establish a set of principles, and they are these:
• Mixed use
• Community interaction
• Transportation/walkability
• Tree lined streets
• Open space
• Efficient use of infrastructure
• Houses close to the street
• Diverse housing
• High density
• Reduced land consumption
• Links to adjacent communities
• Enhances surrounding communities
• Pedestrian friendly

Great list. Building cities in that fashion would certainly advance the sustainable
development agenda. But you know what? We don’t need new community design to rescue
us. That list of principles is exactly what our historic neighborhoods are providing right
now. We just need to make sure they are protected. Oh, and by the way, the number of times
the phrase “historic preservation” appears in their publication? Exactly zero.

Economics, Sustainability and Historic Preservation

http://www.nationaltrust.org/advocacy/case/Rypkema_Speech_on_Sustainability_in_Portland.pdf
I recommend reading the this article by Donovan Rykema. It is an interesting argument on the environmental issue on local historic district. Here are some of the highlights. Sorry for the length.

From an environmental perspective:
1. The vast majority of heat loss in homes is through the attic or uninsulated walls, not windows.
2. Adding just 3 1/2 inches of fiberglass insulation in the attic has three times the R
factor impact as replacing a single pane window with no storm window with the most energy efficient window.
3. Properly repaired historic windows have an R factor nearly indistinguishable from new, so-called, “weatherized” windows.
4. Regardless of the manufacturers’ “lifetime warranties”, thirty percent of the windows being replaced each year are less than 10 years old.
5. One Indiana study showed that the payback period through energy savings by replacing historic wood windows is 400 years.
6. The Boulder [preserved house in the article]house was built over a hundred years ago, meaning those windows were built from hardwood timber from old growth forests. Environmentalists go nuts about cutting trees in old growth forests, but what’s the difference?
Destroying those windows represents the destruction of the same scarce resource.
7. Finally, the diesel fuel to power the bulldozer consumed more fossil fuel that
would be saved over the lifetime of the replacement windows.