SAVE OUR ISLAND Historic Preservation

PRESENTED DOCUMENTS FROM MAY 19, 2010 TO CITY COUNCIL

1st document:

 

2nd document:

 

3rd document:

 

4th document:

 

 

5/6/10

Mayor Margaret Doud
Mackinac Island City Council Members
7358 Market St.
P.O. Box 455
Mackinac Island, MI.  49757

Mayor Doud and City Council Members:

Mackinac Island has been a treasured tourist destination for Midwesterners since the late 19th century. As a National Historic Landmark, it has the prestigious designation of being one of the most nationally significant historic places designated by the Secretary of the Interior because it possesses exceptional value and quality in illustrating or interpreting the heritage of the United States. As the statewide preservation organization, we are very proud of Mackinac Island, and what it means as a cultural resource to Michigan and the nation. We are committed to help preserve it for future generations to enjoy.

The property owners and municipal leaders of Mackinac Island have encountered some difficult preservation decisions regarding the downtown buildings this past year. The pending demolition of one of the Island’s few remaining downtown historic cottages has created support to save it as well as to demolish it. Although the cottage’s fate has not yet been determined, it appears this strong public debate over its demise will continue until the Island residents decide how future preservation issues such as this will be handled. Will the demolitions and insensitive alterations be allowed to continue? Will there be a historic designation established that will help to protect these historic resources that can be used as a tool to manage future changes?

Michigan Historic Preservation Network and its partner, the National Trust for Historic Preservation, advocate and educate for Michigan’s historic places.  We offer educational presentations and workshops throughout the state on the protection and preservation of historic resources, the economic incentives, and hands-on rehabilitation techniques. We connect people with resources and information that help them preserve and rehabilitate their buildings, and assist nonprofits with planning grants.   

We would like to offer our assistance with this educational process to Mackinac Island leadership and property owners. By providing the community with this valuable information, and allowing them to evaluate and discern it, they will then be empowered to make well-informed decisions regarding future preservation issues. I have enclosed five suggested preservation strategies for your consideration.

We welcome the opportunity to talk with you further regarding these educational opportunities.

 

Sincerely,

Nan Taylor
Field Representative
Michigan Historic Preservation Network and the National Trust for Historic Preservation
107 E Grand River
Lansing, MI   48906
231-920-6901
taylor@mhpn.org

Michigan Historic Preservation Network is the statewide preservation organization for Michigan. It is a nonprofit, membership organization and the 2007 recipient of the National Trust for Historic Preservation Trustees Award for Organizational Excellence and 2007  State History Award from the Historical Society of Michigan. MHPN partners with the National Trust for Historic Preservation, the country’s largest private, nonprofit preservation organization. As partners, both organizations are dedicated to providing leadership, education, advocacy and resources to a network of people, organizations and local communities committed to saving places, connecting us to our history and collectively shaping the future of Michigan’s stories.

Attachment

CC:
Brian Conway, State Historic Preservation Office
Dena Sanford, National Park Service
Anthony Trayser, Save Our Island
Royce Yeater, National Trust for Historic Preservation, Midwest Office

 

5th document:

 

Five Historic Preservation Education and Planning Opportunities
For Mackinac Island

1st.

• Conduct an architectural survey of the downtown commercial buildings

An architectural survey provides the means by which a community can identify and document historic resources and evaluate their significance. The term describes both a process and a product.

Undertaking an architectural survey to identify historic resources acknowledges that these resources have value now and for future generations. Historic resources provide character, continuity and a sense of uniqueness to the community. An architectural survey is fundamental to historic preservation because it results in the identification of historic resources and helps determine which of those resources should be preserved. The purpose of completing a local architectural survey is to gather the information needed to plan for the wise use of a community's resources.  This architectural survey information could result in:

• The identification of historic resources in anticipation of projects that may involve building demolition and land disturbance
• Definition of areas to be designated as local historic districts under local ordinances, and preparation of historic district study committee reports
• Creation of an information base to be utilized by community action programs for either housing or commercial rehabilitation and neighborhood improvement
• Stimulation of interest in and increased public awareness of a community's historic resources

2nd.

• Apply  for Certified Local Government (CLG) status

The purpose of the CLG grant program is to help local communities develop or strengthen their historic preservation program. CLG grants can be used to identify, register, rehabilitate, and protect resources that are listed in or eligible for listing in the National Register of Historic Places. The grants can also be used for preservation planning and education. To become a CLG, a local unit of government must apply to the SHPO and be certified by the National Park Service. The local government must have in place a local historic district ordinance pursuant to Michigan’s Local Historic District Act, Public Act 169 of 1970, as amended, and a historic district commission with binding design review authority before it can be certified. A full description of the CLG program and how to apply for certification is found in The Certified Local Government Program in Michigan. This manual can be requested from the State Historic Preservation Office (SHPO) or obtained from their website at: www.michigan.gov/shpo

IMMEDIATE GRANT OPPORTUNITY
CLG grant applications are currently being accepted for education, identification, planning, and registration and rehabilitation activities. The grant deadline is July 1, 2010. Projects undertaken in association with one or more of the following priority programs will receive more points: resource identification and designation in support of economic development activities, revitalizing of traditional downtown, cultural heritage tourism, or community planning or educational activities that directly address crisis abatement in a National Historic Landmark.  For more information see attached letter or go to:
http://www.michigan.gov/documents/mshda/mshda_shpo_FY10_CLG_EIRP_Man_311283_7.pdf

3rd

• Provide public educational preservation workshops

Preservation workshops are designed to educate residential and commercial property owners, municipalities, and nonprofit organizations on how historic preservation can play an instrumental role in the community’s planning and development efforts. This education is essential to help the community determine its next steps. Workshops may include subjects such as historic designations, preservation financial incentives, conservation districts, heritage tourism economics, and practical rehabilitation techniques and methods. The State Historic Preservation Office, Michigan Historic Preservation Network and National Trust for Historic Preservation are willing to partner together to provide these workshops for the Mackinac Island community. 

4th

• Consider inviting Donovan Rypkema, a preservation economics expert,  to do a public presentation on the Island.

Donovan D. Rypkema is principal of PlaceEconomics, a Washington, D.C.-based real estate and economic development-consulting firm. The firm specializes in services to public and non-profit sector clients who are dealing with downtown and neighborhood commercial district revitalization and the reuse of historic structures. He is recognized as an industry leader in the economics of preserving historic structures, and has provided ongoing consulting services in 49 states and the District of Columbia. A recent email correspondence with Mr. Rypkema confirmed his interest in visiting Mackinac Island for a presentation and/or consulting services. For more information, including contact information, check his website: www.placeeconomics.com

5th

• Draft new design guidelines specifically for historic buildings

For a planning commission to make decisions on proposed projects based on design guidelines in the zoning ordinance, they are focusing on the use of the buildings, rather than the unique characteristics of the historic buildings.  Adopting design guidelines for historic buildings would be useful in guiding these everyday planning decisions.

                                     

Michigan Historic Preservation Network
517-371-8080   www.mhpn.org
Nan Taylor, 231-920-6901,  taylor@mhpn.org

 

6th document:

 

FEDERAL AND STATE REHABILITATION TAX CREDITS

 

FEDERAL
The federal rehabilitation tax credit program is available for income-producing properties. Rehabilitation work must meet the “substantial rehabilitation” test and comply with the Secretary of the Interior’s Standards for Rehabilitation. If approved, 20% of qualified rehabilitation expenditures can be credited against the federal income tax liability of the property owner. These credits can be carried forward 20 years.

Eligibility:

• Must be income producing property.
• Must be listed individually on the National Register of Historic Places or be a contributing resource in a National Register Historic District.
• Must meet a substantial investment requirement (generally $1 more than acquisition price of building only). Assessor’s office must break out cost of land vs. building.

Sample:
Purchase price $1,000,000
Land value        $     30,000
Must spend     $   970,001 in capital improvements to be eligible
Terms:

• Credits calculated based on capital investment and eligible soft costs.
• Cannot use federal grants for funding of work
• End use must be income-producing.
• Rehabilitation work must be pre-approved
• Rehabilitation work must conform to the Secretary of the Interior’s Standards for Rehabilitation

Application Process

• Part 1 – Verifies the resource is eligible to participate. The State Historic Preservation Office (SHPO) reviews the application and the National Park Services (NPS) makes the determination of eligibility. Part 1 is sometimes done in conjunction with a National Register of Historic Places application.
• Part 2 – Provides a description of the rehabilitation project including how and what will be done, including a submission of “before” pictures. SHPO and the NPS review Part 2 of the application and evaluate the project for conformance with the Secretary of the Interior’s Standards for Rehabilitation.

These first two parts may be done together and should be done and approved prior to beginning any rehabilitation work. It can take approximately 70 days for approval.  Work done in advance of written NPS approval of the Part 1 and 2 applications is done at the applicants’ own risk.

• Part 3 – Request for certification of completed work is submitted when work is complete.  The property owner has no timeline compulsion regarding this part of the application. Once approved by SHPO and NPS, the certified rehabilitation project is approved for purposes of the tax credit and both the applicant and the Internal Revenue Services are notified. Like Part 2, it can take approximately 70 days for approval of Part 3. The property owner may begin to claim the federal tax credits on the first filing after the Part 3 approval.

For more information about federal tax credits, please contact: Robb McKay, SHPO program administrator. His contact info is mckayr@michigan.gov, 517-335-2727, or SHPO Website: http://www.michigan.gov/hpcredit.

STATE
The Michigan state rehabilitation tax credit program is available for residential and income-producing properties. Rehabilitation work must comply with the Secretary of the Interior’s Standards for Rehabilitation. 25% of the rehabilitation expenditures can be credited to state income tax. These credits may be carried forward 10 years.

Eligibility:
Localities with populations less than 5,000:

• Property must be a contributing resource in a local historic district or be listed individually or as a contributing resource in a historic district listed on the State Register of Historic Sites or the National Register of Historic Places.

Localities with populations more than 5,000:

• Property must be a contributing resource in a local historic district

Historic preservation easement properties

• Properties subject to a historic preservation easement now qualify for state tax credits, regardless of whether or not the property is located in a historic district.

Terms:

• To participate in this program, rehabilitation expenditures must be at least 10% of the current state equalized value (SEV)  of the property.
• Project may be phased over five years.
• 25% of the rehabilitation costs can be credited to state income tax credit, and this credit may also be carried forward for ten years. 

Tax Refund
For projects in which the credit amount allowed is less than $250,000, a qualified taxpayer may receive a refund of the amount of the credit that exceeds the taxpayer’s tax liability. The amount of the tax refund (check) shall be equal to 90 percent of the amount of the credit that exceeds the qualified taxpayer’s tax liability.

Application process
Similar to the process outlined for the federal tax credit program. However, state only tax credit applicants will use the state tax credit application form. Part 3 will be submitted with photographs when work is complete.  It will take approximately 45 days to review an application.  The credit is only claimed in the year that Part 3 of the application is approved.
For more information about the state tax credit, contact: Bryan Lijewski, SHPO Program Administrator at  lijewskib@michigan.gov or 517-373-1631 or see the SHPO website at http://www.michigan.gov/hpcredit.

COMBINING FEDERAL AND STATE
For income-producing properties, eligible to participate in both the Federal and the State tax credit programs, the state law requires that a project make use of the Federal tax credit first. Projects that receive the 20% Federal credits and are eligible to participate in the State credit program will receive a State credit equal to 25% for the qualified expenditure less the amount of Federal credit received. In practice, this results in a 20% Federal credit and a 5% State credit for the same work. Recent changes in the Michigan Business Tax Act have added two additional State credit opportunities Enhanced and Special Consideration State tax credits.

Enhanced Credits - Those projects that qualify for the combined 20% Federal, 5% State credits now have the opportunity to apply for an Enhanced credit of up to an additional 15%.  The Enhanced credits are subject to an annual cap and awarded on a competitive basis. 

• All the review and eligibility requirements of both programs must be met
• Credits are awarded on a competitive basis
• All applicants may not receive the full15% additional credit
• Additional project information is collected via an expanded State application form
• 2010 cap of $9 million in Enhanced tax credits for the state – first come/first served. The cap increases by $1 million per year thereafter.

Special Consideration Credits – In 2010, two projects may receive up to an additional 15% State tax credits.  The Special Consideration Credit is out side of the cap placed on the Enhanced credits and is targeted at an high impact preservation project.  The SHPO Department Director, the President of the Michigan Strategic Fund and the State Treasurer, will determine the recipient of this credit. The Project must show that it will have a significant impact in the community, county and State.

• All the review and eligibility requirements of both programs must be met
• Credits are awarded on a competitive basis
• All applicants may not receive the full15% additional credit
• Additional project information is collected via an expanded State application form

SYNDICATION OF TAX CREDITS

• Can be done for both state and federal tax credits
• Must be done prior to the buildings return to service date
• Typically, the minimum credit threshold for syndication is $1 million in credits for federal tax credit syndication and $250,000 to $500,000 in credits for state tax credit syndication.

It is highly recommended that the property owner consult with a tax attorney or accountant prior to applying for tax credits to verify these credits will be financially advantageous. 

 Michigan Historic Preservation Network
107 E. Grand River,
Lansing, MI.  48906
517-371-8080  info@mhpn.org

 

 

7th document:

 

Historic Designations and Preservation Benefits in Michigan

 

Historic Designation       Provides Protection?      Eligible for Tax Credits?       Other Benefits?

National Register of Historic Places or National Historic Landmark* (Individual or District)	No, unless federal funds are used for a project. Otherwise, honorary only.	Yes. Federal tax credits available for income-producing properties only.	Nonprofit properties are eligible for preservation grant opportunities.
State Register/Marker	No. Honorary only.	Yes. State tax credits for properties in communities of 5,000 or less population.	Enhances community heritage tourism.
Local Historic Districts*	Yes.  Under PA 169 ordinance, Historic District Commission reviews all exterior work, including demolitions.	Yes. State tax credits available for income-producing and residential properties; with a Small Project Refund Option available	Tool for managing change in district. Increased property values over time.
Preservation Easement	Yes. Regulates all current and future changes to property, interior and exterior. Contract becomes part of chain of title.	Yes. State tax credits available for income-producing and residential properties that are designated at the federal, state, or local level.	Conveyance of property rights to nonprofit or govt. entity may qualify donor for charitable tax deduction.

*Property must be a contributing resource in historic district to be eligible for tax credits.

Small Town Advantage
Communities with populations of less than 5,000 - Properties listed on the National Register of Historic Places, individually or as a contributing resource in a district, are eligible for both federal and state rehabilitation tax credits; with Small Project Refund Option for state credits.
More Information
For information on local historic districts, National Register of Historic Places, and tax credit incentives check the State Historic Preservation Office website, www.michigan.gov/shpo. For more information on preservation easements, check the MHPN website: www.mhpn.org

  

Michigan Historic Preservation Network
107 E. Grand River, Lansing, MI.  48906
517-371-8080  www.mhpn.org

 

8th document:

The Certified Local Government Program Explained
The Benefits of Becoming a CLG
Becoming a CLG makes a community eligible to apply for subgrants available only to CLG communities. At least 10 percent of the annual Historic Preservation Fund grant made to Michigan under the National Historic Preservation Act must be distributed to the CLGs. Becoming a CLG ensures that historic preservation issues are understood and addressed at the local level and are integrated into the local planning and decision-making process at the earliest possible opportunity.
Becoming a CLG can expand a local unit's participation in the historic preservation program through the National Register nomination process and, with qualified staff, other programs such as review of federal undertakings for impact on historic resources under Section 106 of the National Historic Preservation Act.
Participation in the CLG Program promotes a positive image for the community by being a demonstration of commitment on the part of local officials to work with the state and federal government to preserve historic resources.
Obligations and Requirements
To qualify for certification, a local unit of government must have adopted a local historic preservation ordinance that complies with Michigan's Local Historic Districts Act, PA 169 of 1970, as amended, and meets the guidelines set forth in the CLG Manual.
Once certified, a CLG

• is required to maintain an ongoing system for the survey and inventory of historic resources;
• must develop four-year historic preservation goals for the community;
• is required to provide for adequate public participation in the local historic preservation program;
• may participate in the process of nominating historic properties to the National Register of Historic Places; and
• will be monitored every four years to ensure that all responsibilities are being met.

How to Become a Certified Local Government
Michigan's Certified Local Government Program: A Manual on How to Become Certified outlines the process for requesting certification. This manual is available for download on the publications page. Applications for certification may be submitted to the SHPO at any time during the year. The SHPO reviews the application and the National Park Service approves final certification.
For information about any of the programs described on this site, write the Michigan State Historic Preservation Office, 702 W. Kalamazoo St., P.O. Box 30740, Lansing, MI 48909-8240, or contact us at (517) 373-1630 or preservation@michigan.gov.

 

 

 

Grants for Certified Local Governments
Types of Funded Projects
Certified Local Government (CLG) grants are awarded annually on a competitive basis. All grants must be matched with local funds or donations and are available on a reimbursement basis only. Grant activities can include:

• Conducting a survey of historic resources;
• Preparing nominations to the National Register of Historic Places for buildings, sites, structures, objects and districts in the community;
• Developing design guidelines for local historic districts;
• Administering a local historic district ordinance;
• Preparing a local preservation plan for managing historic resources;
• Planning for the protection or the restoration of national register sites;
• Preparing a feasibility study for restoration of a historic structure;
• Restoration of national register-listed properties; or
• Educating the community on historic preservation through the publication of brochures, a speaker's bureau, or the development of a website.

Project activities must have measurable results. The State Historic Preservation Office welcomes innovative proposals that promote historic preservation. The intent of the CLG grant program is to augment rather than replace existing local financial commitment to historic preservation activities.
Grants are announced each May.  For more information on CLG funding, visit our grant manuals webpage.
For information about any of the programs described on this site, write the Michigan State Historic Preservation Office, 702 W. Kalamazoo St., P.O. Box 30740, Lansing, MI 48909-8240, or contact us at (517) 373-1630 or preservation@michigan.gov.
Copied from State Historic Preservation Office website, www.michigan.gov/shpo under “Local Historic Preservation.” Or:

http://www.michigan.gov/mshda/0,1607,7-141-54317_21884-57492--,00.html

 

9th document:

 

 

 

 

 

 

 

10th document:

(Correspondence which led to the extensiong of the deadline for grants for the island)

Hi Nan,
Extension to July 1st for grant application due date is approved. =
Thanks, Nan, we look forward to receiving an application for Mackinac =
Island.
Denise
=20
Denise J. Sachau, Grants Manager/Budget Analyst
Michigan State Housing Development Authority
Michigan State Historic Preservation Office
702 W. Kalamazoo Avenue, Box 30740
Lansing, MI 48909-8240
(517) 373-1904 - phone, (517) 335-0348 - fax
URL: www.michigan.gov/shpo

>>> "Nan Taylor" <taylor@mhpn.org> 3/22/2010 8:45 AM >>>
Hello Denise and Amy,

If you can extend the deadline until July 1st, it would be very helpful =
for
Mackinac Island. With so many of the property owners gone and not =
returning
until May, we have limited opportunity to begin the education process =
for
them, and assist them with the details of this grant opportunity.

There will be a presentation to the City Council on May 7th, and we =
intend
on addressing it to them at that time. Please let us know if this will =
be
acceptable.

Thank you,
Nan

Nan Taylor
Field Representative
Michigan Historic Preservation Network and the National Trust for =
Historic
Preservation
107 E Grand River
Lansing, MI 48906
231-920-6901
taylor@mhpn.org

MHPN is the recipient of the National Trust for Historic Preservation =
2007
Trustees Award for Organizational Excellence and the 2007 State History
Award, Historical Society of Michigan.

Save the Date!

MHPN=E2=80=99s 30th Annual Statewide Preservation Conference - =
=E2=80=9CCelebrating
Sustainable Communities=E2=80=9D - will take place May 13-15, 2010 at =
UM=E2=80=99s historic
Michigan League in Ann Arbor. Over 400 community advocates, =
professionals,
elected officials, and tradespeople are expected. Join us!=20

 

-----Original Message-----
From: Denise Sachau [mailto:sachaud1@michigan.gov]=20
Sent: Friday, March 19, 2010 11:01 AM
To: Nan Taylor
Cc: Amy Arnold
Subject: Re: National Landmark Grant opportunity

Hi Nan,
The grant opportunity for a NHL is not an established program, so this =
is a
one-time opportunity for threatened or endangered NHL's. However, we =
would
be willing to extend the grant application deadline until July 1, if =
that
would be helpful to Mackinac Island. Let Amy and me know if the revised
deadline would then allow Mackinac Island to apply for a grant. Thanks.
Denise

Denise J. Sachau, Grants Manager/Budget Analyst
Michigan State Housing Development Authority
Michigan State Historic Preservation Office
702 W. Kalamazoo Avenue, Box 30740
Lansing, MI 48909-8240
(517) 373-1904 - phone, (517) 335-0348 - fax
URL: www.michigan.gov/shpo

>>> "Nan Taylor" <taylor@mhpn.org> 3/18/2010 3:22 PM >>>
Hello Denise,

I am working with Mackinac Island on a number of preservation =
strategies,
and believe this SHPO grant opportunity would be very helpful to them. =
It
does not appear the City leaders are ready to apply for this grant, and =
meet
the March 31st deadline. I wondered if this was a one-shot opportunity =
or
if there may be other grants in the near future for National Landmarks?=20

 

Any help you can provide me with would be appreciated.

 

Thank you,

Nan

 

Nan Taylor

Field Representative

Michigan Historic Preservation Network and the National Trust for =
Historic
Preservation
107 E Grand River
Lansing, MI 48906
231-920-6901
<mailto:info@mhpn.org> taylor@mhpn.org=20

 

MHPN is the recipient of the National Trust for Historic Preservation =
2007
Trustees Award for Organizational Excellence and the 2007 State History
Award, Historical Society of Michigan.

 

Save the Date!

 

MHPN's 30th Annual Statewide Preservation Conference - "Celebrating
Sustainable Communities" - will take place May 13-15, 2010 at UM's =
historic
Michigan League in Ann Arbor. Over 400 community advocates, =
professionals,
elected officials, and tradespeople are expected. Join us!=20