You
have probably noticed the deluge of articles the last few weeks about New
Orleans, the aftermath and the recovery following Hurricane Katrina. It still
seems hard to fully comprehend the tragedy of it a decade later; so much
destruction of architecturally significant communities and, most
overwhelmingly, of the tapestry of people that called these history-rich
districts home.
I had
the opportunity to visit the area in December of 2005, just a few months after
the storm, to help families sort through the muck. As our volunteer group was
carefully clearing out kitchen cabinets - being vigilant of snakes or other
creepy crawlies that still lived in water-filled Tupperware, or taping
refrigerators shut to drag to the street with rotting shrimp inside that had
been ready for a family meal before the storm hit - one of the families we were
helping showed up and stood for a long time in the living spaces just taking it
all in. Slowly, they began digging through the muck in their bedrooms. (This
was the Lower Ninth Ward and the water line had almost reached the ceiling.)
Then came the shouts of joy as they found precious and irreplaceable family
pictures that were water damaged, but salvageable.
The
truth was, however, that this family had come to say goodbye to the home that
they had decided that they would never return to after that day. They weren’t
sure where they would end up, but it wouldn’t be the Ninth Ward and most likely
not New Orleans. Too much damage was done; emotionally and physically.
It is
that family I think about when I read the articles of the last few weeks and
take a look back at those images. The landscape of New Orleans is forever
changed; scarred in many ways, but stronger in others.
Building
rehabilitations have played a major role in the strength of the city over the
last decade. They are representative of the resourcefulness that is necessary
after destruction, and in the case of the GO Zone incentives, the importance of
public policy to help rebuild. Stories like those of the New Orleans Healing
Center are a testament to how the reinvention of a building can play a part in
healing a community.
~ Katherine Ferguson
Marketing Manager, MHA
One can’t think of New Orleans without conjuring
visions of shotgun houses or French Quarter balconies. Their architecture –
along with a great deal of diverse architecture in the city – reveals the
special kind of culture in the “Big Easy.” When Hurricane Katrina hit, it was
uncertain how much of this fabric could be retained, but most agreed that it
was important to rebuild.
For nearly 40 years, the federal historic
rehabilitation tax credit (HTC) program has incentivized preservation across
the country; from blighted to bustling communities. In the case of natural disasters
where there is widespread, catastrophic and costly damage, this type of
incentive is essential.
Katrina presented an overwhelming burden for
those looking to revitalize buildings of significance in New Orleans and
throughout the Gulf Coast. Swift action by Congress and President Bush
established the Gulf Opportunities Zone Act of 2005 (GO Zone), a bill that
among other things increased the federal historic rehabilitation tax credit to
26% from the normal 20% for Gulf Coast regions affected by Katrina as well as
Hurricanes Rita and Wilma that hit only a few months later.
Originally scheduled to sunset in 2008, the bill
was extended several times and eventually ended in 2011 when the rate reverted
to the regular 20%. Nearly 150 projects, with total development costs in excess
of $460 million, benefitted from the program in New Orleans and Baton Rouge
alone.
The GO Zone initiative was integral in these
projects, but also important was the robust Louisiana State Commercial TaxCredit. This 25% tax credit incentive was implemented in 2002 to benefit
income-producing historic buildings in Louisiana’s Downtown Development
Districts. In 2007, historic buildings in certified Cultural Districts were
made program-eligible.
Other Gulf Coast states have HTC programs, such
as Mississippi and Alabama, also offering the tax incentive at a rate of 25%,
but came after Katrina; Mississippi began their tax credit program in 2006 and
Alabama in 2013. Unfortunately, the Alabama Historic Rehabilitation Tax Credit
Program is set to sunset this year unless legislation can be passed to extend
it. Rounding out the Gulf Coast states, Texas implemented their 25% HTC in
2015, and Florida has yet to pass HTC legislation.
Katrina
Case Study: New Orleans Healing Center
The Universal Furniture Building at the corner of
St. Claude and St. Roch dates back to 1887. Its storied history includes time
as a bakery and a bargain furniture store. In 2005, the building survived
Hurricane Katrina relatively intact while the communities around it suffered.
The building is located in
the Faubourg Marigny National Register Historic District, but is a neighbor to
the St. Roche, St. Claude and Bywater Districts as well. Purchased by New
Orleans commercial developer, Pres Kabacoff, and his wife Sallie Ann Glassman,
the building found new life as the New Orleans Healing Center in the fall of
2011. The duo rehabilitated the building to house a grocery co-op, yoga studio,
coffee shop, performance areas, restaurant, and community meeting spaces.
The rehabilitation itself
included removing a non-historic aluminum screen and brick veneer on the St.
Claude and St. Roch elevations in order to restore original facades. With
MacRostie Historic Advisors help, the project generated $2.36 in federal GO
Zone HTCs, which was nearly doubled when coupled with the 25% Louisiana State
HTC. And for a community that was rebuilding, it provided much needed jobs.
Four years since opening its
doors, the Healing Center is growing in popularity and continuing to offerservices to the community.
Preparing for the next Katrina
Hurricane Katrina gets top
billing for natural disasters in the United State’s recent history, but FEMAreports over 600 major disaster declarations in U.S. territories since the
storm in 2005. These disasters include fire, flooding, earthquakes, tornadoes,
and more; none of which are discriminating in their destruction.
Steps are being taken by
Congress to provide relief to disaster areas declared from 2012 through 2015
with the introduction of the National Disaster Tax Relief Act of 2015 in July.
The bill largely follows the guidelines set forth by the GO Zone legislation,
increasing the federal HTC rate to 26% in affected areas. No doubt that similar
bills will be introduced in the future
to account for disasters yet to come.
The passing of legislation of
this nature signals confidence in our leaders that HTC programs are
instrumental in economic development, as well as an important tool to save our
historic resources for future generations. And when reflecting on the
devastation of Katrina and the brutal power of natural disasters on our built
and human landscape, we look to the places that are familiar to find home
again.
No comments:
Post a Comment