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.

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.

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.

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.

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.

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.