Missourians have a diverse cultural inheritance of which we are justifiably proud. From ourbeautiful State Capitol building to Main Street in St. Charles to scenic rural vistas of Highway79 to the skyscrapers of Kansas City and St. Louis, we take pleasure in our inheritance ofhistoric places, places that help to tell the history of us.

Missourians are now learning that our historic built environment is of even more importance toour state than we first believed. Although culture and aesthetics is of vital importance to ourstate’s well-being, the preservation of those heritage properties we all enjoy also has aneconomic benefit that directly improves the quality of life for all of our citizens.

Missouri has recently completed a comprehensive economic study documenting the positiveeffects of historic preservation on the state’s economy. Using statistics from historic rehabilitationexpenses, the Missouri Historic Tax Credit Program, the Missouri Main Street economic revital-ization program and heritage tourism, the study demonstrates how the preservation of historicproperties boosts the state’s economy by approximately $1 billion annually.

Historic preservation, once considered by some to be an unnecessary concern, has now comeinto its own throughout the United States as a tool for economic well-being. And, althoughmuch remains to be done in Missouri, we now know that our history is the key to our progress.Historic preservation is no longer a luxury; it is an opportunity we can’t afford to waste.

To order copies of the 200-page study ofthe Economic Impacts of HistoricPreservation In Missouri contact:

Missouri Department of Natural ResourcesOutreach and Assistance CenterState Historic Preservation OfficeP.O. Box 176Jefferson City, MO 65102

Phone: 1-800-361-4827 or (573) 751-7858

December 2002

This Summary Report has been prepared by

The Missouri Department of Natural ResourcesOutreach and Assistance CenterState Historic Preservation Office

Research Funding and Oversight

Missouri Downtown AssociationSt. Louis, MO

Missouri Department of Natural Resources,Outreach and Assistance CenterState Historic Preservation Office

Jefferson City, MO

Research Organizations

Center for Urban Policy ResearchRutgers, The State University of New Jersey

New Brunswick, New Jersey

Principal Investigators

David ListokinMike L. Lahr

Kevin St. Martin

and

Nomel FranciscoMichele B. McGlyn

The study of the Economic Impacts of Historic Preservation in Missouri has been financed withfederal funds administered by the State Historic Preservation Office, Outreach and AssistanceCenter, Missouri Department of Natural Resources, and the National Park Service, U. S. Departmentof the Interior. However, the contents and opinions do not necessarily reflect the views or policies ofthe National Park Service or the Missouri Department of Natural Resources, nor does the mention oftrade names or commercial products constitute an endorsement or recommendation.

FRONT COVER PHOTO: Missouri/Sedalia Trust Company Building, Sedalia, also known as the Koppen TrustCompany, was listed on the National Register of Historic Places in 1983.Photo by Gerald Lee Gilleard

BACK COVER PHOTO: Helping Hand Institute Building, Kansas City, was listed on the National Register ofHistoric Places in 2000. Built in 1915 as a refuge offering social services to the underprivileged, the building hasundergone a $4.2 million rehabilitation with assistance from historic preservation tax credits. It now providesmodern loft apartments only a few blocks from the heart of downtown Kansas City.

Economic Impacts of

Historic Preservationin Missouri

NevadaNevada was chosen in 1989 as one of Missouri’s firstfive official Main Street communities. The Main StreetNevada organization works to promote, preserveand enhance downtown Nevada through econom-ic development and historic preservation.

West PlainsThe W.J. and Ed Smith Building and the OldWest Plains Bank Building in West Plains,Howell County’s first sites to be listed on theNational Register of Historic Places, areamong three local buildings recently rehabil-itated with the help of historic preservationtax credits. The project gave the local econ-omy an immediate boost, increasing useablecommercial space by 9,000 square feet andincreasing the number of people employedin the buildings from 2 to 25. The propertyowner,West Plains native Toney Aid, estimatesthat the additional commercial space willgenerate five times as much sales tax asbefore rehabilitation and that four times asmuch property tax revenue will go to thecounty from the three rehabilitated buildings.Photo by Becky Snider

Historic Preservation Works for Missouri

(Left) Before rehabilitation, 600 block of East Cherry St. inNevada; (Above) After rehabilitation, 600 block of East CherrySt. in Nevada’s historic East End.Photo by Jo Ann Radetic

Springfield

The Wise Feed Co. building (c. 1920) is Springfield’s only remainingsmall retail feed store. With the completion of its historic rehabilita-tion by Jericho Development Co. in 2002, the property made avail-able more than 6,000 sq. ft. of mixed commercial space, with thethree second floor upscale lofts fully pre-leased. The Wise Feed Co.project is part of a broader revitalization effort at downtownSpringfield’s Southwest Gateway, which also includes four historictax credit projects in the Campbell Avenue Historic District, three inthe West Walnut Street Commercial Historic District (listed on theNational Register of Historic Places in 2002) and rehabilitation ofthe Palace Hotel (also listed on the National Register of HistoricPlaces in 2002). Once a red light district, the Southwest Gateway isnow the green light district for Springfield downtown revitalization.Photo by Richard L. Burton

Because of the Missouri Historic PreservationTax Credit (MHPTC), downtown St. Louis hasseveral fewer parking lots.

What it has instead is nearly a half dozennew hotels, one more under construction,an estimated 500 new jobs and an estimat-ed 1,900 hotel rooms.

The passage of the bill creating this 25-per-cent tax credit in 1997 literally halted thedemolition of the International FurExchange Building in downtown St. Louis.Located across from the Gateway Arch, theFur Exchange’s conversion into a Drury Hotelsparked a continuing boom in the rehab ofbuildings in St. Louis’ historic downtown intohotels. Since that time, five other downtownhistoric warehouses or hotels have beenrehabilitated for use as hotels.

In several cases, the buildings that under-went rehabilitation had been slated fordemolition and use as parking lots, whichadd very little to the economic vitality of thearea. Instead, they are now active employ-ers meeting payrolls and contributing to thetax base.

More importantly, the steadily increasingnumber of hotel rooms has not reduced theoccupancy rate. St. Louis ranked fourthamong the top 25 markets in the UnitedStates in January through June 2002occupancy rates. For that period, hoteloccupancy in St. Louis reached 59.9 per-cent, surpassing the national figure of 59.5percent and running ahead of such cities asChicago, Dallas, Denver, Detroit,Minneapolis, Nashville, San Francisco andSeattle.

Summary Historic Preservation Tax Credits – focus

Total Economic Impacts of the CumulativeMHPTC-Supported Heritage Tourism ($112 Million)

Missourians take great pride in our his-tory, whether it is the general role thestate played in the westward expan-sion or the specific authors, artists andleaders we have seen off to the worldstage. Preservation of the buildings,neighborhoods and institutions thatkeep that history alive has always beenrecognized as a contribution to thestate’s cultural wealth and collectiveidentity.

Now, the impact such efforts have onthe state’s economic wealth is alsoknown. Historic preservation in Missouricontributes slightly more than $1 billionannually to the gross state product andgenerates nearly 28,000 jobs, accord-ing to a study completed by theCenter for Urban Policy Research,Rutgers University. The study, entitled“Economic Impacts of HistoricPreservation in Missouri,” looked at fouraspects of preservation: Building reha-bilitation; heritage tourism; “MainStreet” programs, and historic preserva-tion tax credits.

Summary of the Annual Economic Impacts of Historic Preservation in Missouri

“From small town tometropolis, from Main Street

to the suburbs, the StateHistoric Rehab Tax Credit

has far exceeded thepromise anticipated by itsstatewide sponsors. It has

generated sustainableeconomic development,

increased housingopportunities, enhanced ourdaily environment, attracted

favorable media attentionand encouraged cultural

tourism. To extend thisremarkable program to evenmore communities and rural

areas should be a priority forall Missourians.”

– Carolyn ToftLandmarks Association

of St. Louis, Inc.

Saline County Courthouse, Marshall, was listed on theNational Register of Historic Places in 1977.

International Fur Exchange Building/Drury Plaza Hotel,Downtown, St. Louis.

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While the economic impact is a small portion ofMissouri’s larger overall economy, at the locallevel, and certainly for financially distressed com-munities, the economic contribution of historicpreservation is much more noticeable.Preservation activities undertaken as part of theMain Street and similar programs frequentlyserve as the catalyst for renewed economicinvigoration in small town retail districts. Further,there is positive support that historic rehabilita-tion lends to other construction activity in a com-munity. When buildings in a historic neighbor-hood are rehabilitated, this encourages furtherrehabilitation in the city.What often makes urbanareas distinctive is their place in history, so thepreservation of these places fosters furtherrounds of renovation as well as added tourismand other benefits.

During the course of the study, impact was meas-ured in four general ways: jobs, income, wealthand taxes. Jobs, with impacts weighted different-ly depending on the sector of the economy inwhich the jobs are created, are counted in job-years. Thus, several part-time or temporary jobsare combined to make one job year. For the pur-pose of the study, income is defined generally aswages and salaries and does not include bene-fits, pensions or insurance. The study equates wealth with thegross state product. Finally, the study calculates the totalincrease in tax revenue at the federal, state and local levelsattributable to preservation activities.

The report was funded by a federal Historic Preservation Fundgrant of $50,000 from the Missouri Department of NaturalResources’ State Historic Preservation Office. The grant wasawarded to the Missouri Downtown Association, which servedas the administrative agent for the project.

In many cases, the difference between aconstruction line and demolition line is thebottom line. Since its inception in 1998 theMissouri Historic Preservation Tax CreditProgram has brought the bottom line ofmany projects within reach by offering a 25percent state tax credit on the rehabilita-tion costs of qualified projects.

When the economic activity and the ensu-ing tax payments fostered by the historicpreservation tax credit program are consid-ered, there is little net cost to Missouri tax-payers. Moreover, significantly more incomeand wealth is generated to the benefit ofMissourians. Between 1998, when activitystimulated by the program started, andAugust 2001, $295 million of historic rehabili-tation has cumulatively been effectedunder this program. Historic preservation taxcredits amounting to $74 million encour-aged this investment. From the cumulativetax credit rehabilitation investment of $295million, the state of Missouri garnered 6,871jobs; $121 million in income; $283 million ingross state product; $60 million in total taxes(including $25 million in Missouri state andlocal taxes) and $249 million in in-statewealth.

This $295 million investment in tax credit sup-ported historic rehabilitation will realize her-itage tourism gains to the state over twodecades. Those benefits include 3,407 jobs;$55 million in income; $97 million in grossstate product, and $25 million in taxes(including $13 million in state and localtaxes).

Historic Preservation Tax Credits Summary

Total Economic Impacts of the CumulativeMHPTC-Supported Historic Rehabilitation ($295 Million)

Missouri Historic Preservation Tax CreditProjects Completed By County

Number Completed ProjectsJanuary 1998 to August 2001

Kevin St. Martin, CUPR, Rutgers University, October 2001

Contractor Bill Burton repairs trim onArrow Rock’s I.O.O.F Lodge Hall, builtc. 1868.

Hotel Phillips, Kansas City, waslisted on the National Registerof Historic Places in 1979. Builtin 1931, the hotel has under-gone a $20 million rehabilita-tion. The magnificently restoredhistoric hotel attracts overnightbusiness and leisure travelers aswell as local guests in its foodand beverage venues.

“Historic preservation has keptArrow Rock alive. It is exciting

when visitors, our economiclifeblood, ‘discover’ our historic

town and return again and againto savor the 19th century in a living

21st century community.”

– Sue E. StubbsPresident

Friends of Arrow Rock, Inc.Arrow Rock resident

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“At the heart of our Webster Groves businessdistricts are historically preserved buildings.These lovely, old, and charming structureshouse attractive and successful shops,restaurants, and offices. Doing business in historic buildings complements our historichomes and neighborhoods to enrich WebsterGroves’ reputation as a community that valuesits past as the key to the future.”

– Gerry WelchMayor

Webster Groves, Missouri

Throughout its history,Sedalia has beenmany things - from as rough and dirtyas the cattle drives that ended thereto the sophistication of the ragtimemusic that was born there. A railroadtown on the edge of the prairie, itplayed host to brothels as well as thestate’s first Carnegie Library.

Turning that history into profit becamethe goal of Main Street Sedalia, one of12 programs recognized by theMissouri Main Street Program. Workingwith local agencies as well as stateand national preservation programs,Main Street Sedalia has overseen arejuvenation of the downtown busi-ness district that conjures up memoriesof the good old days.

From its inception in 1996, the program has seen noticeabledowntown improvement in several categories, including:façade renovations, building rehabilitation, new businesses,buildings sold, public improvements and promotions.

Between 1996 and 2001 Main Street Sedalia used slightlymore than $171,000 in matching funds and incentives to spurdowntown investments totaling more than $9.78 million.Thoseincluded the renovation of 31 building facades,ten completebuilding rehabilitations and numerous other projects.

As a result, the community has seen downtown first floorvacancy rates fall from 25 percent in the 1980s to an estimat-ed 2 percent in 2001.The results are also seen in the start of 47new businesses and a net increase of more than 100 jobs inthe downtown area since 1996.

Among the projects seen during the period include therehabilitation of both the Missouri Pacific Railroad andMissouri-Kansas-Texas (MKT or “Katy”) depots. In addition tobeing the local Amtrak lobby, the former also serves as theoffices of Main Street Sedalia, Organized AlternativeTransportation Services (OATS), Habitat for Humanity and theSedalia Visual Arts Association. The latter, with its locationalong the Katy Trail State Park,serves as the Sedalia Chamberof Commerce headquarters and gift shop and the MKTmuseum.

Such improvements have also set the stage for increased his-toric tourism opportunities and the growth of existing events,including the annual Scott Joplin Ragtime Festival, which cel-ebrates the works of the ragtime music pioneer, and DepotDays, which recalls the city’s railroad past.

Whether it is the home of a famousMissourian or a local church that hostedtown hall meetings during the founding of acommunity, historic buildings represent thephysical locations where much of our histo-ry took place.These buildings – both modestand grand – play an important role in theappreciation and interpretation of the his-tory that occurred within their walls.

An estimated $346 million is spent annuallyon the rehabilitation of historic buildingsand structures - defined as older buildingsthat might be eligible for the NationalRegister of Historic Places. This work results inthe creation of an estimated 8,060 in-statejobs annually, including 3,590 jobs in theconstruction industry, 1,291 service jobs and1,062 retail jobs.

Historic building rehabilitation generates$249 million in income for Missouri residentsand produces a gain of $292 million in in-state wealth. Total tax revenues of $70 mil-lion are generated by Missouri’s annual his-toric rehabilitation activity, including $30 mil-lion in state and local tax revenues.

Main Street Program – focusHistoric Building/Structure Rehabilitation

Total Economic Impacts of the Annual MissouriHistoric Building Rehabilitation ($346 Million)

(Above) The Continental Building, 3615Olive Street, St. Louis, is a contributingbuilding in the Mid-Town NationalRegister Historic District. Designed byWilliam B. Ittner and built in 1930, thebuilding is one of the city’s finest exam-ples of the Art Deco style. It stands outas the tallest building in the district andis visible for several miles in any direc-tion. After more than 20 years of disuseand vandalism, the 23-story skyscraperwas rescued through the assistance ofMissouri’s historic preservation tax cred-it program combined with federalrehabilitation tax credits. (Inset) Terracotta detail of the Continental Building.

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(Above) Hotel Bothwell, Sedalia, waslisted on the National Register ofHistoric Places in 1989. Often referredto as the crown jewel of downtownSedalia, the historic hotel has beenrestored to its former glory containingapartments, offices and retail space.(Inset) Downtown Sedalia.

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The residents of Trenton’sPlaza Hotel are likely to haveseen the hotel’s glory days -twice.

The hotel, built in the late1920s, closed in the 1980s andhad deteriorated into a “slow-ly crumbling, pigeon-infestedconcrete shell.” Seeing thebuilding as an opportunity, apartnership of the North MissouriRural Housing Coalition, theTrenton Downtown ImprovementAssociation and the City ofTrenton spearheaded a reno-vation project to return thebuilding to a contributor tothe city’s downtown economy.

The project, which was completed inDecember 2001, transformed the PlazaHotel from an eyesore to a facility con-taining 23 new apartments serving eco-nomically disadvantaged senior citizens.The project has also spurred interest inencouraging downtown services to meetthe needs of its new residents.

Because of its success in saving a historicbuilding and providing housing for low-income senior citizens, the project earnedMissouri Preservation’s 2002 Preserve MissouriAward for Residential Rehabilitation.

Historic Building/Structure Rehabilitation – focus In the American mindset, the idea of “MainStreet” conjures up memories of community-based economies - locally owned shops wherestoreowners and customers know each other ona first-name basis. In most cases, Main Street rep-resented not only the economic center of acommunity, but its social center as well.

The Missouri Main Street Program focuses onimproving downtown business districts, primarilythrough preservation of historic resources. Theprogram attempts to spur revitalization by capi-talizing on the unique character of the down-town coupled with development of progressivemarketing and management techniques.

Main Street programs are initiated by concernedcitizens, property and business owners, and civicand government officials. Programs are locallydriven and funded. Technical assistance andadvice are available from the State of Missouriand the National Main Street Center.

The specific mission of the Missouri Main StreetProgram is to assist communities with a popula-tion of less than 50,000 to economically andphysically revitalize their downtowns. Most of theprogram’s efforts are directed toward 12 officiallyrecognized towns, but the program is also avail-able to assist other small towns. Missouri has 45active downtown revitalization groups at work insmall towns, independent of the Missouri MainStreet Program.

The net annual direct economic gain from theMissouri Main Street Program is estimated at $5.4 mil-lion, plus 270 net jobs.* The economic impact analy-sis used data for the fiscal year 1999 which, when thestudy commenced, was the last annual period forwhich Missouri Main Street Program information wasfully available.

Main Street Program

Estimated Total Rehabilitationand Historic Building Rehabilitation in Missouri (2000)

*Figure is adjusted to avoid double counting employment associated with Heritage Tourism.

The Plaza Hotel, Trenton, was transformed from a buildingin jeopardy (inset) to new housing for economicallydisadvantaged senior citizens (above).

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(Above) Johnson County Courthouse,Warrensburg,was listed on the National Register of Historic Placesin 1970. On the Courthouse lawn is a memorial toOld Drum, the inspiration for the popular phrase,“Aman’s best friend is his dog.”(Inset) Clarksville is one of severalMissouri towns to benefit fromthe Main Street program. Inaddition to Warrensburg andClarksville, the Missouri MainStreet Program currently recog-nizes Cape Girardeau, Fayette,Mountain Grove, Branson, Lee’sSummit, Sedalia, Carthage,Clinton, Nevada andWashington as official MissouriMain Street communities.

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Total Economic Impacts of the Annual Net Missouri Main Street Investment

Some come to walk thesame streets that inspiredMark Twain. Others cometo taste the cultural andculinary fare of their immi-grant ancestors. Theystroll through neighbor-hoods that precededstatehood, or follow thetrail of Lewis and Clark orearly pioneers. They areheritage tourists,and theyare an important part ofa large portion of thestate’s economy.

As an industry, tourism isone of Missouri’s topthree revenue producersand is one of the fastestgrowing elements of the

state’s economy. Counting only the spendingattributable to the heritage portion of theirtravels, expenditures of Missouri heritage trav-elers amount to $660 million annually.This $660million in annual Missouri heritage travelspending translates into annual economicbenefits to the state equaling 20,077 jobs,$325 million in income, $574 million in grossstate product, $79 million in state and localtaxes and annual in-state wealth creation of$506 million.

The economic benefits of Missouri heritagetourism are enjoyed throughout the state’seconomy. For instance, of the $574 million ingross state product, the retail trade, servicesand transportation industries garnered $196million,$195 million and $34 million respectively.

Designed as a community intended to pre-serve the customs and traditions of itsGerman immigrant founders, it should be nosurprise that Hermann, benefits mightily fromheritage tourism.

Settled in the 1830s by members of theGerman Settlement Society of Philadelphia,founders envisioned that Hermann wouldgrow to become a major city where theGerman culture would be preserved andpromoted.While Hermann never became ametropolitan center, it still maintains its origi-nal cultural flavor. Located on the MissouriRiver, Hermann is the cultural center of anarea frequently referred to as the “MissouriRhineland” because it reminded immigrantsof the Rhine River region in Germany.

Anchored by annual spring Maifest and fallOctoberfest celebrations, which draw thou-sands to this community of nearly 2,800,Hermann benefits significantly from her-itage tourism. In addition to the majorevents, Hermann hosts a variety of othersmaller events throughout the year andnearly every weekend during the summer. Italso benefits from its proximity to the KatyTrail State Park, which is a short detour forbicyclists riding the trail. Making use of thesespecial events, award-winning wineries,numerous bed and breakfast establish-ments, restaurants and specialty shops,Hermann has developed the tourism ele-ment of its economy to the point that itaccounts for an estimated 700 jobs andmore than $9 million in local income.

More than 40 years ago, Hermann residentsrecognized the importance of continuingto preserve the character of their historiccommunity. From the sturdy 19th centurybrick buildings nestled close to the sidewalkto the vast wine cellars throughout thearea, residents have built a thriving econo-my by capitalizing on the preservation ofthe town's architecture and culture.

Heritage Tourism – focusHeritage Tourism

Total Economic Impacts of the Annual MissouriHeritage Tourism Spending ($660 Million spent)

“We may not always agreeon specific preservationissues, but we do agreepreservation has saved ourpast and secured our future.”

– Kathleen M. WaltzMayor

City of Ste. Genevieve

(Above) Les Petits Chauteurs perform during ChristmasWalk and other community celebrations in Ste. Genevieve.Bolduc-LeMeilleur Museum House in background is ownedand operated by the National Society of The ColonialDames of America in the State of Missouri. (Inset) The 18thand Vine Museums celebrate African-American heritage,Negro Leagues Baseball and the contribution of KansasCity-style jazz to our music heritage. The 18th and VineHistoric District was listed on the National Register ofHistoric Places in 1991.

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(Above) Contestants in the Great Stone HillGrape Stomp celebrate the wine making her-itage of Hermann. (Inset) Sausage lovers cele-brate Hermann’s German heritage with theRhineland Wurstjaeger Dancers.

Some come to walk thesame streets that inspiredMark Twain. Others cometo taste the cultural andculinary fare of their immi-grant ancestors. Theystroll through neighbor-hoods that precededstatehood, or follow thetrail of Lewis and Clark orearly pioneers. They areheritage tourists,and theyare an important part ofa large portion of thestate’s economy.

As an industry, tourism isone of Missouri’s topthree revenue producersand is one of the fastestgrowing elements of the

state’s economy. Counting only the spendingattributable to the heritage portion of theirtravels, expenditures of Missouri heritage trav-elers amount to $660 million annually.This $660million in annual Missouri heritage travelspending translates into annual economicbenefits to the state equaling 20,077 jobs,$325 million in income, $574 million in grossstate product, $79 million in state and localtaxes and annual in-state wealth creation of$506 million.

The economic benefits of Missouri heritagetourism are enjoyed throughout the state’seconomy. For instance, of the $574 million ingross state product, the retail trade, servicesand transportation industries garnered $196million,$195 million and $34 million respectively.

Designed as a community intended to pre-serve the customs and traditions of itsGerman immigrant founders, it should be nosurprise that Hermann, benefits mightily fromheritage tourism.

Settled in the 1830s by members of theGerman Settlement Society of Philadelphia,founders envisioned that Hermann wouldgrow to become a major city where theGerman culture would be preserved andpromoted.While Hermann never became ametropolitan center, it still maintains its origi-nal cultural flavor. Located on the MissouriRiver, Hermann is the cultural center of anarea frequently referred to as the “MissouriRhineland” because it reminded immigrantsof the Rhine River region in Germany.

Anchored by annual spring Maifest and fallOctoberfest celebrations, which draw thou-sands to this community of nearly 2,800,Hermann benefits significantly from her-itage tourism. In addition to the majorevents, Hermann hosts a variety of othersmaller events throughout the year andnearly every weekend during the summer. Italso benefits from its proximity to the KatyTrail State Park, which is a short detour forbicyclists riding the trail. Making use of thesespecial events, award-winning wineries,numerous bed and breakfast establish-ments, restaurants and specialty shops,Hermann has developed the tourism ele-ment of its economy to the point that itaccounts for an estimated 700 jobs andmore than $9 million in local income.

More than 40 years ago, Hermann residentsrecognized the importance of continuingto preserve the character of their historiccommunity. From the sturdy 19th centurybrick buildings nestled close to the sidewalkto the vast wine cellars throughout thearea, residents have built a thriving econo-my by capitalizing on the preservation ofthe town's architecture and culture.

Heritage Tourism – focusHeritage Tourism

Total Economic Impacts of the Annual MissouriHeritage Tourism Spending ($660 Million spent)

“We may not always agreeon specific preservationissues, but we do agreepreservation has saved ourpast and secured our future.”

– Kathleen M. WaltzMayor

City of Ste. Genevieve

(Above) Les Petits Chauteurs perform during ChristmasWalk and other community celebrations in Ste. Genevieve.Bolduc-LeMeilleur Museum House in background is ownedand operated by the National Society of The ColonialDames of America in the State of Missouri. (Inset) The 18thand Vine Museums celebrate African-American heritage,Negro Leagues Baseball and the contribution of KansasCity-style jazz to our music heritage. The 18th and VineHistoric District was listed on the National Register ofHistoric Places in 1991.

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(Above) Contestants in the Great Stone HillGrape Stomp celebrate the wine making her-itage of Hermann. (Inset) Sausage lovers cele-brate Hermann’s German heritage with theRhineland Wurstjaeger Dancers.

The residents of Trenton’sPlaza Hotel are likely to haveseen the hotel’s glory days -twice.

The hotel, built in the late1920s, closed in the 1980s andhad deteriorated into a “slow-ly crumbling, pigeon-infestedconcrete shell.” Seeing thebuilding as an opportunity, apartnership of the North MissouriRural Housing Coalition, theTrenton Downtown ImprovementAssociation and the City ofTrenton spearheaded a reno-vation project to return thebuilding to a contributor tothe city’s downtown economy.

The project, which was completed inDecember 2001, transformed the PlazaHotel from an eyesore to a facility con-taining 23 new apartments serving eco-nomically disadvantaged senior citizens.The project has also spurred interest inencouraging downtown services to meetthe needs of its new residents.

Because of its success in saving a historicbuilding and providing housing for low-income senior citizens, the project earnedMissouri Preservation’s 2002 Preserve MissouriAward for Residential Rehabilitation.

Historic Building/Structure Rehabilitation – focus In the American mindset, the idea of “MainStreet” conjures up memories of community-based economies - locally owned shops wherestoreowners and customers know each other ona first-name basis. In most cases, Main Street rep-resented not only the economic center of acommunity, but its social center as well.

The Missouri Main Street Program focuses onimproving downtown business districts, primarilythrough preservation of historic resources. Theprogram attempts to spur revitalization by capi-talizing on the unique character of the down-town coupled with development of progressivemarketing and management techniques.

Main Street programs are initiated by concernedcitizens, property and business owners, and civicand government officials. Programs are locallydriven and funded. Technical assistance andadvice are available from the State of Missouriand the National Main Street Center.

The specific mission of the Missouri Main StreetProgram is to assist communities with a popula-tion of less than 50,000 to economically andphysically revitalize their downtowns. Most of theprogram’s efforts are directed toward 12 officiallyrecognized towns, but the program is also avail-able to assist other small towns. Missouri has 45active downtown revitalization groups at work insmall towns, independent of the Missouri MainStreet Program.

The net annual direct economic gain from theMissouri Main Street Program is estimated at $5.4 mil-lion, plus 270 net jobs.* The economic impact analy-sis used data for the fiscal year 1999 which, when thestudy commenced, was the last annual period forwhich Missouri Main Street Program information wasfully available.

Main Street Program

Estimated Total Rehabilitationand Historic Building Rehabilitation in Missouri (2000)

*Figure is adjusted to avoid double counting employment associated with Heritage Tourism.

The Plaza Hotel, Trenton, was transformed from a buildingin jeopardy (inset) to new housing for economicallydisadvantaged senior citizens (above).

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(Above) Johnson County Courthouse,Warrensburg,was listed on the National Register of Historic Placesin 1994. On the Courthouse lawn is a memorial toOld Drum, the inspiration for the popular phrase,“Aman’s best friend is his dog.”(Inset) Clarksville is one of severalMissouri towns to benefit fromthe Main Street program. Inaddition to Warrensburg andClarksville, the Missouri MainStreet Program currently recog-nizes Cape Girardeau, Fayette,Mountain Grove, Branson, Lee’sSummit, Sedalia, Carthage,Clinton, Nevada andWashington as official MissouriMain Street communities.

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Total Economic Impacts of the Annual Net Missouri Main Street Investment

Throughout its history,Sedalia has beenmany things - from as rough and dirtyas the cattle drives that ended thereto the sophistication of the ragtimemusic that was born there. A railroadtown on the edge of the prairie, itplayed host to brothels as well as thestate’s first Carnegie Library.

Turning that history into profit becamethe goal of Main Street Sedalia, one of12 programs recognized by theMissouri Main Street Program. Workingwith local agencies as well as stateand national preservation programs,Main Street Sedalia has overseen arejuvenation of the downtown busi-ness district that conjures up memoriesof the good old days.

From its inception in 1996, the program has seen noticeabledowntown improvement in several categories, including:façade renovations, building rehabilitation, new businesses,buildings sold, public improvements and promotions.

Between 1996 and 2001 Main Street Sedalia used slightlymore than $171,000 in matching funds and incentives to spurdowntown investments totaling more than $9.78 million.Thoseincluded the renovation of 31 building facades,ten completebuilding rehabilitations and numerous other projects.

As a result, the community has seen downtown first floorvacancy rates fall from 25 percent in the 1980s to an estimat-ed 2 percent in 2001.The results are also seen in the start of 47new businesses and a net increase of more than 100 jobs inthe downtown area since 1996.

Among the projects seen during the period include therehabilitation of both the Missouri Pacific Railroad andMissouri-Kansas-Texas (MKT or “Katy”) depots. In addition tobeing the local Amtrak lobby, the former also serves as theoffices of Main Street Sedalia, Organized AlternativeTransportation Services (OATS), Habitat for Humanity and theSedalia Visual Arts Association. The latter, with its locationalong the Katy Trail State Park,serves as the Sedalia Chamberof Commerce headquarters and gift shop and the MKTmuseum.

Such improvements have also set the stage for increased his-toric tourism opportunities and the growth of existing events,including the annual Scott Joplin Ragtime Festival, which cel-ebrates the works of the ragtime music pioneer, and DepotDays, which recalls the city’s railroad past.

Whether it is the home of a famousMissourian or a local church that hostedtown hall meetings during the founding of acommunity, historic buildings represent thephysical locations where much of our histo-ry took place.These buildings – both modestand grand – play an important role in theappreciation and interpretation of the his-tory that occurred within their walls.

An estimated $346 million is spent annuallyon the rehabilitation of historic buildingsand structures - defined as older buildingsthat might be eligible for the NationalRegister of Historic Places. This work results inthe creation of an estimated 8,060 in-statejobs annually, including 3,590 jobs in theconstruction industry, 1,291 service jobs and1,062 retail jobs.

Historic building rehabilitation generates$249 million in income for Missouri residentsand produces a gain of $292 million in in-state wealth. Total tax revenues of $70 mil-lion are generated by Missouri’s annual his-toric rehabilitation activity, including $30 mil-lion in state and local tax revenues.

Main Street Program – focusHistoric Building/Structure Rehabilitation

Total Economic Impacts of the Annual MissouriHistoric Building Rehabilitation ($346 Million)

(Above) The Continental Building, 3615Olive Street, St. Louis, is a contributingbuilding in the Mid-Town NationalRegister Historic District. Designed byWilliam B. Ittner and built in 1930, thebuilding is one of the city’s finest exam-ples of the Art Deco style. It stands outas the tallest building in the district andis visible for several miles in any direc-tion. After more than 20 years of disuseand vandalism, the 23-story skyscraperwas rescued through the assistance ofMissouri’s historic preservation tax cred-it program combined with federalrehabilitation tax credits. (Inset) Terracotta detail of the Continental Building.

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(Above) Hotel Bothwell, Sedalia, waslisted on the National Register ofHistoric Places in 1989. Often referredto as the crown jewel of downtownSedalia, the historic hotel has beenrestored to its former glory containingapartments, offices and retail space.(Inset) Downtown Sedalia.

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While the economic impact is a small portion ofMissouri’s larger overall economy, at the locallevel, and certainly for financially distressed com-munities, the economic contribution of historicpreservation is much more noticeable.Preservation activities undertaken as part of theMain Street and similar programs frequentlyserve as the catalyst for renewed economicinvigoration in small town retail districts. Further,there is positive support that historic rehabilita-tion lends to other construction activity in a com-munity. When buildings in a historic neighbor-hood are rehabilitated, this encourages furtherrehabilitation in the city.What often makes urbanareas distinctive is their place in history, so thepreservation of these places fosters furtherrounds of renovation as well as added tourismand other benefits.

During the course of the study, impact was meas-ured in four general ways: jobs, income, wealthand taxes. Jobs, with impacts weighted different-ly depending on the sector of the economy inwhich the jobs are created, are counted in job-years. Thus, several part-time or temporary jobsare combined to make one job year. For the pur-pose of the study, income is defined generally aswages and salaries and does not include bene-fits, pensions or insurance. The study equates wealth with thegross state product. Finally, the study calculates the totalincrease in tax revenue at the federal, state and local levelsattributable to preservation activities.

The report was funded by a federal Historic Preservation Fundgrant of $50,000 from the Missouri Department of NaturalResources’ State Historic Preservation Office. The grant wasawarded to the Missouri Downtown Association, which servedas the administrative agent for the project.

In many cases, the difference between aconstruction line and demolition line is thebottom line. Since its inception in 1998 theMissouri Historic Preservation Tax CreditProgram has brought the bottom line ofmany projects within reach by offering a 25percent state tax credit on the rehabilita-tion costs of qualified projects.

When the economic activity and the ensu-ing tax payments fostered by the historicpreservation tax credit program are consid-ered, there is little net cost to Missouri tax-payers. Moreover, significantly more incomeand wealth is generated to the benefit ofMissourians. Between 1998, when activitystimulated by the program started, andAugust 2001, $295 million of historic rehabili-tation has cumulatively been effectedunder this program. Historic preservation taxcredits amounting to $74 million encour-aged this investment. From the cumulativetax credit rehabilitation investment of $295million, the state of Missouri garnered 6,871jobs; $121 million in income; $283 million ingross state product; $60 million in total taxes(including $25 million in Missouri state andlocal taxes) and $249 million in in-statewealth.

This $295 million investment in tax credit sup-ported historic rehabilitation will realize her-itage tourism gains to the state over twodecades. Those benefits include 3,407 jobs;$55 million in income; $97 million in grossstate product, and $25 million in taxes(including $13 million in state and localtaxes).

Historic Preservation Tax Credits Summary

Total Economic Impacts of the CumulativeMHPTC-Supported Historic Rehabilitation ($295 Million)

Missouri Historic Preservation Tax CreditProjects Completed By County

Number Completed ProjectsJanuary 1998 to August 2001

Kevin St. Martin, CUPR, Rutgers University, October 2001

Contractor Bill Burton repairs trim onArrow Rock’s I.O.O.F Lodge Hall, builtc. 1868.

Hotel Phillips, Kansas City, waslisted on the National Registerof Historic Places in 1979. Builtin 1931, the hotel has under-gone a $20 million rehabilita-tion. The magnificently restoredhistoric hotel attracts overnightbusiness and leisure travelers aswell as local guests in its foodand beverage venues.

“Historic preservation has keptArrow Rock alive. It is exciting

when visitors, our economiclifeblood, ‘discover’ our historic

town and return again and againto savor the 19th century in a living

21st century community.”

– Sue E. StubbsPresident

Friends of Arrow Rock, Inc.Arrow Rock resident

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“At the heart of our Webster Groves businessdistricts are historically preserved buildings.These lovely, old, and charming structureshouse attractive and successful shops,restaurants, and offices. Doing business in historic buildings complements our historichomes and neighborhoods to enrich WebsterGroves’ reputation as a community that valuesits past as the key to the future.”

– Gerry WelchMayor

Webster Groves, Missouri

Because of the Missouri Historic PreservationTax Credit (MHPTC), downtown St. Louis hasseveral fewer parking lots.

What it has instead is nearly a half dozennew hotels, one more under construction,an estimated 500 new jobs and an estimat-ed 1,900 hotel rooms.

The passage of the bill creating this 25-per-cent tax credit in 1997 literally halted thedemolition of the International FurExchange Building in downtown St. Louis.Located across from the Gateway Arch, theFur Exchange’s conversion into a Drury Hotelsparked a continuing boom in the rehab ofbuildings in St. Louis’ historic downtown intohotels. Since that time, five other downtownhistoric warehouses or hotels have beenrehabilitated for use as hotels.

In several cases, the buildings that under-went rehabilitation had been slated fordemolition and use as parking lots, whichadd very little to the economic vitality of thearea. Instead, they are now active employ-ers meeting payrolls and contributing to thetax base.

More importantly, the steadily increasingnumber of hotel rooms has not reduced theoccupancy rate. St. Louis ranked fourthamong the top 25 markets in the UnitedStates in January through June 2002occupancy rates. For that period, hoteloccupancy in St. Louis reached 59.9 per-cent, surpassing the national figure of 59.5percent and running ahead of such cities asChicago, Dallas, Denver, Detroit,Minneapolis, Nashville, San Francisco andSeattle.

Summary Historic Preservation Tax Credits – focus

Total Economic Impacts of the CumulativeMHPTC-Supported Heritage Tourism ($112 Million)

Missourians take great pride in our his-tory, whether it is the general role thestate played in the westward expan-sion or the specific authors, artists andleaders we have seen off to the worldstage. Preservation of the buildings,neighborhoods and institutions thatkeep that history alive has always beenrecognized as a contribution to thestate’s cultural wealth and collectiveidentity.

Now, the impact such efforts have onthe state’s economic wealth is alsoknown. Historic preservation in Missouricontributes slightly more than $1 billionannually to the gross state product andgenerates nearly 28,000 jobs, accord-ing to a study completed by theCenter for Urban Policy Research,Rutgers University. The study, entitled“Economic Impacts of HistoricPreservation in Missouri,” looked at fouraspects of preservation: Building reha-bilitation; heritage tourism; “MainStreet” programs, and historic preserva-tion tax credits.

Summary of the Annual Economic Impacts of Historic Preservation in Missouri

“From small town tometropolis, from Main Street

to the suburbs, the StateHistoric Rehab Tax Credit

has far exceeded thepromise anticipated by itsstatewide sponsors. It has

generated sustainableeconomic development,

increased housingopportunities, enhanced ourdaily environment, attracted

favorable media attentionand encouraged cultural

tourism. To extend thisremarkable program to evenmore communities and rural

areas should be a priority forall Missourians.”

– Carolyn ToftLandmarks Association

of St. Louis, Inc.

Saline County Courthouse, Marshall, was listed on theNational Register of Historic Places in 1977.

International Fur Exchange Building/Drury Plaza Hotel,Downtown, St. Louis.

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This Summary Report has been prepared by

The Missouri Department of Natural ResourcesOutreach and Assistance CenterState Historic Preservation Office

Research Funding and Oversight

Missouri Downtown AssociationSt. Louis, MO

Missouri Department of Natural Resources,Outreach and Assistance CenterState Historic Preservation Office

Jefferson City, MO

Research Organizations

Center for Urban Policy ResearchRutgers, The State University of New Jersey

New Brunswick, New Jersey

Principal Investigators

David ListokinMike L. Lahr

Kevin St. Martin

and

Nomel FranciscoMichele B. McGlyn

The study of the Economic Impacts of Historic Preservation in Missouri has been financed withfederal funds administered by the State Historic Preservation Office, Outreach and AssistanceCenter, Missouri Department of Natural Resources, and the National Park Service, U. S. Departmentof the Interior. However, the contents and opinions do not necessarily reflect the views or policies ofthe National Park Service or the Missouri Department of Natural Resources, nor does the mention oftrade names or commercial products constitute an endorsement or recommendation.

FRONT COVER PHOTO: Missouri/Sedalia Trust Company Building, Sedalia, also known as the Koppen TrustCompany, was listed on the National Register of Historic Places in 1983.Photo by Gerald Lee Gilleard

BACK COVER PHOTO: Helping Hand Institute Building, Kansas City, was listed on the National Register ofHistoric Places in 2000. Built in 1915 as a refuge offering social services to the underprivileged, the building hasundergone a $4.2 million rehabilitation with assistance from historic preservation tax credits. It now providesmodern loft apartments only a few blocks from the heart of downtown Kansas City.

Economic Impacts of

Historic Preservationin Missouri

NevadaNevada was chosen in 1989 as one of Missouri’s firstfive official Main Street communities. The Main StreetNevada organization works to promote, preserveand enhance downtown Nevada through econom-ic development and historic preservation.

West PlainsThe W.J. and Ed Smith Building and the OldWest Plains Bank Building in West Plains,Howell County’s first sites to be listed on theNational Register of Historic Places, areamong three local buildings recently rehabil-itated with the help of historic preservationtax credits. The project gave the local econ-omy an immediate boost, increasing useablecommercial space by 9,000 square feet andincreasing the number of people employedin the buildings from 2 to 25. The propertyowner,West Plains native Toney Aid, estimatesthat the additional commercial space willgenerate five times as much sales tax asbefore rehabilitation and that four times asmuch property tax revenue will go to thecounty from the three rehabilitated buildings.Photo by Becky Snider

Historic Preservation Works for Missouri

(Left) Before rehabilitation, 600 block of East Cherry St. inNevada; (Above) After rehabilitation, 600 block of East CherrySt. in Nevada’s historic East End.Photo by Jo Ann Radetic

Springfield

The Wise Feed Co. building (c. 1920) is Springfield’s only remainingsmall retail feed store. With the completion of its historic rehabilita-tion by Jericho Development Co. in 2002, the property made avail-able more than 6,000 sq. ft. of mixed commercial space, with thethree second floor upscale lofts fully pre-leased. The Wise Feed Co.project is part of a broader revitalization effort at downtownSpringfield’s Southwest Gateway, which also includes four historictax credit projects in the Campbell Avenue Historic District, three inthe West Walnut Street Commercial Historic District (listed on theNational Register of Historic Places in 2002) and rehabilitation ofthe Palace Hotel (also listed on the National Register of HistoricPlaces in 2002). Once a red light district, the Southwest Gateway isnow the green light district for Springfield downtown revitalization.Photo by Richard L. Burton

Missourians have a diverse cultural inheritance of which we are justifiably proud. From ourbeautiful State Capitol building to Main Street in St. Charles to scenic rural vistas of Highway79 to the skyscrapers of Kansas City and St. Louis, we take pleasure in our inheritance ofhistoric places, places that help to tell the history of us.

Missourians are now learning that our historic built environment is of even more importance toour state than we first believed. Although culture and aesthetics is of vital importance to ourstate’s well-being, the preservation of those heritage properties we all enjoy also has aneconomic benefit that directly improves the quality of life for all of our citizens.

Missouri has recently completed a comprehensive economic study documenting the positiveeffects of historic preservation on the state’s economy. Using statistics from historic rehabilitationexpenses, the Missouri Historic Tax Credit Program, the Missouri Main Street economic revital-ization program and heritage tourism, the study demonstrates how the preservation of historicproperties boosts the state’s economy by approximately $1 billion annually.

Historic preservation, once considered by some to be an unnecessary concern, has now comeinto its own throughout the United States as a tool for economic well-being. And, althoughmuch remains to be done in Missouri, we now know that our history is the key to our progress.Historic preservation is no longer a luxury; it is an opportunity we can’t afford to waste.

To order copies of the 200-page study ofthe Economic Impacts of HistoricPreservation In Missouri contact:

Missouri Department of Natural ResourcesOutreach and Assistance CenterState Historic Preservation OfficeP.O. Box 176Jefferson City, MO 65102

Phone: 1-800-361-4827 or (573) 751-7858

December 2002