“A Little Learning…

December 29, 2023 Blog, Economics, Texas Comments (1) 112

is a dangerous thing” said Alexander Pope, and he recommended going whole hog (until Alps on Alps arise) or abstaining. Heritage conservation/Historic preservation is a specialized field, and like many specialized fields, the wider world has misapprehensions or misunderstandings about it. We can try to impart a little learning. There are pitfalls though, because misapprehension often rings truer than fact.

A case in point is the National Register of Historic Places. Its name is often misapprehended as “The National Registry” just because that sounds, well, classier. When a building, site, district or structure is listed on the National Register of Historic Places that means it can’t be torn down, right?

Wrong. Also, Wrong. And Wrong again. The list has been around since 1966 and provides no protection against demolition. It DOES provide a review process that MIGHT make demolition less likely, but that is only if it is literally a federal case. It is kept by the Secretary of the Interior, who will have no idea if anyone is going to tear it down unless a federal agency tells the Secretary they are going to. And they can still tear it down, but only after going through the process.

310 W Polk, Chicago, demolished 1991 by the Postal Service because they knew that the National Register doesn’t prevent demolition.

Now, you can explain that time and time again, but it won’t stick, because the misapprehension is so much more plausible. That’s what it SHOULD mean, right? What really amazes me is that people in high positions dealing with real estate and so forth not only don’t get this, but they suspect there is some weird detail of the National Register that is going to somehow – magically – thwart them. Because it is a specialized field. Fear is always based on lack of knowledge.

Even though the National Register can’t prevent anyone from tearing down anything (there I said it again, but you still don’t believe it, right?) it can provide – since 1976 – preservation tax incentives that can be used to restore the resource. Part of the reason we have so many buildings on the National Register is that real estate developers put them there in order to get a 20% investment tax credit. $2 million off your taxes for a $10 million rehab. Not bad.

But wait, there’s more! In Texas, you can get an additional 25% tax credit ON TOP of the federal one, so your $10 million rehab only costs you $5.5 million. Or, in the case of the St. Anthony above, more than $24 million in tax credits. So who wouldn’t want the National Register – it can finance your rehab or, you can ignore it and tear it down! No downside, right?

Another historic tax credit project, right across the street.

And another, across the street again. Not rocket science.

No downside unless you are a victim of misapprehension, or magical thinking. Case in point: the Conservation Society of San Antonio has nominated of the Texas Pavilion/Institute of Texan Cultures building (1968, Caudill, Rowlett & Scott) to the National Register of Historic Places. Its owner, the University of Texas at San Antonio, is going to oppose the nomination because they want to “monetize the site.”

Okay. Site. Money. Weren’t we just talking about a tax incentives worth 45% of rehab cost? That would be an attraction to someone buying it. BUT, they assume it will be torn down so Spurs Stadium IV (A New Hope) can be built on a smaller site than the Spurs II and III. So? You are the UT System, you can do what you want. In fact, the State and the UT system don’t even have to ask the city for a demolition permit like the rest of us.

As they proved with the Sutton Building in 2019.

So why would you oppose National Register listing if it adds potential incentives and doesn’t prevent demolition? How could you be so powerful and not understand your power? You don’t quite believe that truth because it doesn’t feel true – this is the National Registry (sic) after all!

Civilization and the current moment are saturated with people following courses of action that contradict their fiduciary responsibilities because they have a better storyline. This National Register thing has got to be a big green dragon – it can’t be as innocuous as they say, right?

Oh look, another historic tax credit project!

A good storyline beats the bottom line any day.

A little learning is a dangerous thing.

JANUARY UPDATE: We got a unanimous vote from the State Review Board so now it is up to the State Historic Preservation Office to forward the nomination to the Keeper of the National Register (or not). We had 9 speakers in favor at the hearing in Galveston and they also received 47 letters of support and many more online expressions of support. UTSA provided the sole opposition to the listing.

FEBRUARY UPDATE: University of Texas Board of Regents voted in secret to either lease or sell the ITC to the City for a new Spurs arena. No one is talking, though.

The Spurs probably have enough tax liability that they could use the historic preservation tax credits themselves, avoiding a syndication!

One Response to :
“A Little Learning…

  1. Betty Bueche says:

    Eric Walsh,

    Are you listening – it does not prevent demolition.

    Also, what an opportunity to repurpose a huge iconic structure in the bigger scheme of undergrounding IH 37 and reconnecting the east side with downtown at Hemisfair.

    The 200,000 sf in the building could be Spurs HQ, locker rooms, sports bars, Spurs shop, restaurants.

    The building assessment report says it is in good condition – it could become a really creative repurposed space that captivates the interest of the community and sports fans!

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