Economic Benefits of Historic Preservation

Department of Archaeology and Historic Preservation, "The Economic Benefits of Historic Preservation in Washington State: Executive Summary,"http://www.dahp.wa.gov/pages/HistoricSites/documents/EconomicDevStudyExecuti
veSummary_000.pdf.

The Department of Archaeology and Historic Preservation from Washington analyzed the economic effects of historic preservation (which I assume means upkeep, repair and restoration) over a 4-year period and found that it was actually economically beneficial to the state. This runs contrary to a lot of common assumptions about historic preservation, which is that it detracts from new development which is supposedly more economically beneficial.
This Executive Summary of their much longer report highlights the findings of the study:
"Data compiled on Washington state projects taking advantage of federal and state historic building rehabilitation tax credit programs indicate that historic rehabilitation activities qualifying under these programs from 2000 to 2004 involved average spending of $83.5 million each year. These investments generate direct economic impacts through the purchase of goods and services. Expenditures also generate indirect and induced activity in other parts of the economy through related spending at local businesses by supporting industries and households."
"In Washington State, the initial annual investment of $83.5 million generated total sales of $221 million, supported 2,320 jobs in a variety of economic sectors, and paid $87 million in wages and salaries each year. This economic activity generated an estimated $8.9 million in state sales and Business and Occupation taxes, as well as local sales tax revenue (which are not included in this total)."
The report goes on to state that these totals underestimate the true value of historic preservation and rehabilitation because they only take into account projects that qualify under the federal and state tax credit programs and omit spending by governments, charitable organizations, and individuals on their own homes. The authors advocate the "Washington Main Street Program," which restores traditional main streets as some are hoping for in Berkeley, and believes that historic preservation leads to "cultural heritage tourism," which is defined as "traveling to experience the places, artifacts and activities that authentically represent the stories and people of the past and present."
The take-away point of this report is that perhaps historic preservation and economic development are not mutually exclusive, and that Downtown Berkeley might benefit from historic rehabilitation and preservation as much as it may from new building development. Both have the potential to lead to a revitalization of the neighborhood, but together their effects could be even greater.