Historic Districts

Historic Districts


Background

The first historic district in the United States was established in Charleston, South Carolina in 1931, and was encouraged by Frederick Law Olmsted, the well-known park and landscape planner. To establish the initial district, much work was put into documenting a large number of older structures in Charleston. Although the group of buildings initially surveyed was much larger, the final proposal, which took many years and was finally completed in 1944, included 572 historic buildings. The second historic district in the U.S. was established in 1936 in the Vieux Carre (Old French quarter) section of New Orleans, Louisiana. In both instances, early preservation efforts helped keep those areas intact.

Nevertheless, the regulatory powers available to an agency administering a historic district were quite limited in that early period. Controls could not be put on properties on the basis only of aesthetics; to keep the historic appearance of the district was desirable, but not legally enforceable. Any controls had to rely on the concept of "aesthetics plus,:" or the concept that there must be an additional reason beyond historic character (aesthetics) to justify regulatory control (e.g., building codes).

In 1954 the Supreme Court changed this in its Berman v. Parker decision, which established the right of local government to "tear down an old building to improve a neighborhood." The original purpose of this ruling, ironically, was to allow for the demolition of older housing for urban renewal. The initial application of this ruling led to the excesses of urban renewal in the 1950s and '60s, with city planners arguing that the demolition of older, run-down neighborhoods improved the appearance of the city. However, this ruling established the concept that aesthetics was enough of a reason by itself. Preservationists reinterpreted this ruling to their own cause, stating that historic district ordinances could be established to protect older neighborhoods based solely on the area's visual importance to the historic fabric of the city. This became the more persuasive and pervasive argument, and the aesthetic importance of historic structures was established by the courts.


Lower Pontalba Building: New Orleans, Louisiana, 1850-51
Vieux Carre historic district
First buildings to incorporate cast iron galleries

Reasons to Establish a Historic District

Communities establish historic districts for a variety of reasons. Some create them simply as a way to protect significant historic properties. Some establish historic districts as a way to protect against a specific threat of development, while others use them to encourage development in an older area. Some communities use historic districts as a tool for maintaining property values, and some see historic districts as contributing to an improved image of their community at large. The following case studies describe each of these motives in presenting why different communities established historic districts.

Protection of Historic Properties:

Charleston, South Carolina
As described previously, Charleston, South Carolina designated the first historic district in the United States. Its purpose was to protect a substantial section of the historic area from further demolition. It was a very successful effort, and as a result Charleston has one of the most beautiful historic districts in any American city.

Control New Development:

Pioneer Square: Seattle, Washington

The Pioneer Square area of Seattle, Washington was the original "Skid Row," given its name for the inclined street where logs were skidded down to the waterside for transport to other parts of the U.S. By the 1950s and '60s the area had become a transient neighborhood, full of pawn shops and single room occupancy hotels. As a result of concern over the problems of this depressed area, in 1963 the city supported a plan to revitalize the area through the construction of new office buildings and parking structures, and demolishing most of the older buildings in the Square.

Some citizens, however, saw beyond the deterioration of the existing buildings and recognized the historic integrity inherent in this district. They began an effort to save the structures by establishing a recognized historic district. They were successful both in preventing demolition and in establishing a historic district, but they also expressed concern about preserving this as an area of the city that would continue to service the needs of the city's transient population. In a most unusual coalition, the city responded by developing provisions in the city codes to encourage the single room occupancy usage to be retained, and also in establishing social service agency offices in the area.


Pioneer Square in Seattle

Meanwhile, a few entrepreneurs purchased and began improving the deteriorating buildings, and this spurred other development through preservation in the area. The older buildings became desireable properties, and as a result the building valuations in the Pioneer Square area increased 600% in less than a decade. The district has become a very successful example of urban mixed used development.

Serve As a Development Incentive:

Manchester neighborhood: Pittsburgh, Pa.
In the 1960s the Manchester neighborhood in the city of Pittsburgh, Pennsylvania exhibited many of the signs of a dying residential area. Most of the housing had deteriorated, many homes were abandoned, and the area was slated for demolition under the guise of urban renewal. Beneath the deterioration and neglect, however, was a neighborhood with a good stock of well-built structures, many with distinctive design features, in an area of the city that could be a prime residential area due to its proximity to the downtown.


Manchester neighborhood: Pittsburgh

Arthur Ziegler, an English teacher, and James Van Trump, a local architectural historian, recognized Manchester's potential and decided to take action to save it. In 1964 they established the Pittsburgh History and Landmarks Foundation to encourage others to participate in their efforts. Through the Foundation an innovative program was established for the Manchester neighborhood to encourage its preservation and rehabilitation. Through discussions with the city the Foundation convinced the city's Urban Renewal agency to become a partner in the effort, rather than an opponent. Thus able to tap the city's resources, a program was established to sell abandoned houses to qualified buyers for $100 to $9,000. The program established the following conditions for their purchase.

  • The city would restore the facade if the owner agreed to maintain the restored facade for twenty years. The owner could also claim an easement valued at 10% of the appraised value of the restored house.
  • The city offered free plans and specifications for the rehabilitation work, as well as assistance with bidding and construction supervision.
  • The city made available 3% loans to owners. If the ownerŐs income was low enough, the city offered an outright grant for the rehabilitation work.
  • The Foundation had convinced the city of the need for strong financial support, but the city's unusual commitment to the neighborhood through this program was surprising. Also surprising was the immediate success of the program. Fifty houses were sold in three days. In the next few years, the city invested just under $500,000 in the program, out of which more than $3 million was generated in private rehabilitation funds. But perhaps most impressive of all was the amazing change in the appearance and vitality of the neighborhood that resulted. While keeping its share of rehabilitated housing available for low income families, the neighborhood also attracted substantial numbers of more affluent residents who appreciated the historic character of the buildings and the intown location which made it possible for them to walk to work.

    Station Square: Pittsburgh, Pennsylvania
    Under Arthur ZieglerŐs continued leadership, in the mid-1970s the Pittsburgh History and Landmarks Foundation tackled a much bigger project; Station Square. The 1901 Pittsburgh and Lake Erie Railroad had an unused station building with an intact, lavishly ornamented Edwardian interior surrounded by forty acres of underutilized commercial buildings. The complex was across the river from downtown, and although it was a short walk most investors saw the area as having little potential. But Ziegler envisioned the adaptive reuse of the structures into an upscale shopping area, with shops and restaurants which traded on the historic theme and the marvelous interior spaces. He noted that "Pittsburgh's nearest fashionable shopping district was in Manhattan, and Pittsburgh's last tourist came in 1946."


    Station Square development (foreground): Pittsburgh

    Although scoffed at by leery potential investors, the development known as Station Square moved ahead with a $5 million grant from the Allegheny Foundation and $2 million from Chuck Muer, a restauranteur who established a 500 seat restaurant in the station's grand concourse. The project's success was immediate. Although the "experts" had projected a maximum gross of $300,000 per year, the project instead earned $3 million in the first year, and became a very successful draw for both tourists and Pittsburgh residents.

    How has this preservation/development project benefited the community? Station Square has turned into a genuinely reinvigorating project for Pittsburgh and an important catalyst for similar rejuvenation schemes. As sole developer, PHLF will convert the profits into an endowment for its revolving fund to underwrite local housing restoration for low and moderate income families, educational programs and other preservation projects. Station Square, furthermore, although developed by a not-for-profit organization, is paying full taxes.

    Stabilize Property Values:

    Washington, D.C.
    Does the establishment of a historic district inflate property values and taxes, based on the added prestige of such designation? Or do property values drop, under the threat of increased regulations and a loss of property rights? A number of research studies have looked at the impact of historic districts on property values. Most of these studies have found that the primary impact has been neither a rapid increase in property values nor a decline. Rather, such districts have tended to stabilize property values. Dennis Gale, a professor of urban and regional planning, looked more deeply at the question of whether historic district status tended to price moderate income owners out of neighborhoods, and found "little support for the argument that official recognition of the historic and architectural merits of residential neighborhoods leads to accelerating property values." Three historic districts in Washington, D.C. were studied, comparing tax assessments before and after designation. Gale found the growth rates in tax assessments were actually less after designation. He surmised this may have occurred because "...fear of limits on property use, property changes and demolition permissions may have shifted investment activity to other neighborhoods..." A leader of the neighborhood association feels there are benefits, however, with historic designation, such as the right to oppose demolitions and protect an area against unwarranted and unnecessary clearance activities.

    Public Relations and Promotion:

    Lowell, Massachusetts
    In the 19th century Lowell, Massachusetts was one of a number of cities that formed the focus of New EnglandŐs textile industry. When the textile industry moved to the lower-costing, nonunion South in the 1920s, these cities became largely abandoned. Large, well-built mill buildings remained, but most were vacant, and they lined the rivers as ghosts of former times. Lowell was one of the largest of the textile towns, and as such was hard hit by the changed economy.


    Lowell, Massachusetts

    Recently, preservation has been used as a tool for renewal, and Lowell now represents an important success story. In 1978 the city's town center was designated as a 137 acre preservation district under a National Historical Parks program. Since then, many of the textile buildings have been restored as apartments for the elderly, a museum and tourist center were added in an old mill building, and Lowell has traded on the history of the textile industry as its primary historical and tourist attraction. Its historic district is not so much an attempt to preserve a grouping of buildings as it is an attempt to preserve the elements of an earlier local industry of tremendous national significance. As a spin-off from this base, Lowell's downtown has been revitalized, with many new shops and continuing renovation. The unemployment rate, which had been 13% in 1975, is now down to a low 4%. As a result of these changes, a new industrial base has been attracted to the city, boosting the local economy.


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