PAM Receives $15,000 Grant for Preservation Real Estate Study

FOR IMMEDIATE RELEASE

Contact: Will O’Keefe

e: wokeefe@mnpreservation.org

o: 651.293.9047 x2

c: 612.877.2380

 

PAM Receives $15,000 Grant for Preservation Real Estate Study

Study will assess the viability of a revolving fund for historic properties in Minnesota

(ST. PAUL, MINN. – February 13, 2012) Last Friday, the Preservation Alliance of Minnesota (PAM) received a $15,000 grant from the 1772 Foundation to complete a feasibility study on the establishment of a Minnesota revolving fund program. The study will evaluate the need for a real estate program focused on historic properties, and adds a new dimension to PAM’s existing development toolbox. That toolbox already includes a preservation façade easement program, real estate agent training course, website real estate listings, and some small equity investments.

The feasibility study funded by the 1772 Foundation grant will serve four core purposes: 1) identify the types and numbers of historic properties that are not being served by the existing real estate market; 2) establish the systemic or particular issues preventing the successful reuse of these properties; 3) identify how a revolving fund would bring about defined success; and, 4) lay out a framework for the way PAM can be successful at doing this work.

A “revolving fund” is more than the term would imply. A revolving fund is a term used across the country to describe a program focusing on historic property development. The program can include set-aside funds for revolving loans of acquisition, but is not limited to this one tool. Revolving funds can also include real estate tools like purchase options, facade easements, or a property listing service. Establishing a revolving fund may eventually allow PAM to purchase historic properties and resell them with easements, promoting adaptive reuse while ensuring notable aspects of the property are preserved.

PAM will issue a request for proposal (RFP) in the coming weeks for consultants to complete the study. The organization expects the study to take approximately six months. Please check PAM’s website (mnpreservation.org) for updates regarding the RFP posting.

As Minnesota’s historic preservation advocacy and education organization, PAM believes historic preservation and economic development work hand-in-hand; a notion reinforced through the PAM’ss accomplishments. The Minnesota Main Street Program, in just its first seven months, demonstrated a return of $15.73 to the local communities for every $1 spent running the program.  A total of 14 facades were rehabilitated, 42 jobs created, and over $5 million was invested in these downtowns.

Similarly, PAM’s effort to pass the Minnesota state historic preservation tax credit was focused on economic development and job creation.  In its first year, the program returned $9.20 to the State for every $1 invested, one of the best return on investment statistics in the nation for such programs.  The first 14 projects moving forward because of this incentive are expected to create nearly 3,000 direct, indirect, and induced jobs. Almost 30 projects are now in the development pipeline using the state historic tax credit.

PAM believes its revolving fund will have a similarly substantial economic development impact, especially in that no other entity has such a program focused on historic resources statewide.  The decision whether, and how, to move ahead with a revolving fund program will be based upon the feasibility study results. Thus, the 1772 Foundation’s grant is providing the key to a program that PAM believes will have significant local and statewide impact to create development opportunities, jobs in the construction sector, and preserved cultural and community assets.

About the 1772 Foundation:

Thanks to its original benefactor, the late Stewart B. Kean, the 1772 Foundation provides financial support for targeted restoration and agricultural projects throughout the United States.  Based in Connecticut, the 1772 Foundation makes grants nationwide in the areas of revolving funds for endangered properties, African-American history, agriculture and sustainable food systems, and for specific historic preservation efforts in New Jersey, Connecticut, and Rhode Island.

About the Preservation Alliance of Minnesota:

The Preservation Alliance of Minnesota (PAM) is the statewide, private, nonprofit organization advocating for the preservation of Minnesota’s historic resources. PAM was incorporated as a 501(c)(3) nonprofit in 1981 by Minnesota citizens concerned about the future of the state’s architectural and cultural landmarks. Since then, PAM has grown into a network representing thousands of voices across the state. Beyond our membership, PAM collaborates and partners with other organizations and agencies from the national to the local level.

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