Edward Sanderson is the executive director of the R.I. Historical Preservation & Heritage Commission charged with protecting the state’s historic buildings, districts, structures and archaeological sites. He recently spoke with Providence Business News about some projects and the effect of the economy on historic preservation.
PBN: Has today’s tough economy had any impact on the interest of property owners to undertake historic preservation projects?
SANDERSON: The bad economy has definitely impacted historic preservation development, and I’ve heard about some projects that we have approved for tax credits but that haven’t gotten started. For example, in Providence, The Foundry has done an excellent job on their historic mills facing Promenade Street, but the 1896 Holden Street building doesn’t have a tenant yet. Several projects have gone through bankruptcy or are being reorganized but look like they will be completed eventually. Occupancy rates in historic projects seem to be better than in the new development downtown.
My sense is that it’s very hard to do large projects right now, but that there are opportunities for smaller projects if the state tax credit is brought back. Overall, the state tax credits have resulted in more than $1 billion in private investment that would not have happened otherwise, and created a lot of jobs. Personally, I think Rhode Island’s economy needs the kind of stimulus historic preservation projects create.
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PBN: It has been almost two years since the state stopped offering historic preservation tax credits. What impact has this had on historic preservation?
SANDERSON: Since early 2008 when Rhode Island’s historic preservation investment tax credit was closed to new applications, very few historic rehab projects have been started. About 100 projects and phases of projects were already in the development pipeline, and last year 15 were completed, representing private investment of $109 million in historic rehabilitation expenditures.
Two of the larger projects were the renovation of the 1904 Greystone Mill in North Providence into 150 apartments and the renovation of the 1858 to 1928 Rumford Chemical Works in East Providence into a mixed-use development with stores, office space and apartments. Some of the other rehabs completed were phase 1 of the Elizabeth Webbing Mill in Central Falls, Slater Cotton Mill in Pawtucket, former Hotel Belvedere in Bristol, Rhode Island Tool Company in Providence and Patton-Macguyer Building in Providence.
PBN: What role did the commission play in the Hampton Inn project in Providence?
SANDERSON: We worked for two years with the owners and architects on the Hampton Inn project on Weybosset Street in Providence. The building was constructed in 1927 for the Old Colony Cooperative Bank and is a good example of Colonial Revival architecture applied to a commercial building. I remember getting my first mortgage there back in 1976, but later the bank moved out, and the building went through other uses. The renovation for Hampton Inn was assisted by state and federal historic preservation tax credits. Along with restoration of historic features, we also approved the new addition on the historic building. We think it’s a good example of compatible design.
PBN: Can you tell us a little bit about the historic preservation aspect of the Steeple Street building project in Providence?
SANDERSON: This structure is the oldest industrial building in Providence. It was built in 1793 for Joseph Congdon, a hardware merchant who sold iron-stock to blacksmiths, tools, firearms, maritime equipment and farming implements. Operating under the name of Congdon & Carpenter, the business thrived during industrial expansion stimulated by the Civil War. The building is a picturesque reminder of Providence’s early 19th-century working waterfront. The current rehabilitation work is being reviewed by RIHPHC architects. The exterior work is being guided by historic photographs. On the interior, many alterations had been made over the years, and extensive repairs and life-safety code upgrades are needed. The project will receive federal historic preservation tax credits but no state credits.
PBN: Can you offer any general advice to people looking to restore historic buildings?
SANDERSON: Rhode Island has more historic buildings in relation to its size than any other state, so there are many opportunities for anyone looking for a historic preservation investment. Especially right now, historic buildings offer some advantages for development.
Even without the state tax credit, there is still a federal historic preservation tax credit that we administer. It’s worth 20 percent of the approved historic rehabilitation costs.
The fact that many historic buildings are part of a larger historic district can be a plus because it means that each time a building is rehabbed it reinforces the value and attractiveness of the district as a whole. Nationally, property values in a historic district have been shown to be stronger than real estate in general.
Some of the recently completed historic mill projects have created new interest in other historic buildings nearby. You can see this on Valley Street in Providence and in parts of Pawtucket. So historic preservation projects can have positive ripple effects that make opportunities for more projects.
Finally, historic preservation investment is a specialized activity.
Fortunately, here in Rhode Island we have really outstanding preservation architects and contractors, and there are historical consultants, attorneys and CPAs who are experts in historic preservation deals. I would advise anyone looking to invest in rehabilitation of historic buildings to assemble of good team. I also think the RIHPHC staff do a terrific job guiding these projects through the state and federal requirements.
