Page 19 - Murfreesboro, TN Comprehensive Plan: Chapter 7, Economic Development

Economic Development 7.19

DRAFT 12.02.15

Building Improvement Incentive

Programs

Bad redesign and “dark” or underused upper floors cities offer financial assistance for substantial upper-
are common problems of many older downtowns. floor renovations intended to reactivate long dormant
Both conditions detract from the attractiveness and spaces above street level.
vitality of downtown districts and can pose a drag on These grants and loans are often funded in the same way
visitor and investor interest alike. Some fairly common as façade grants described above. However because
incentive programs can help impel property owners to of the high cost and often upside-down economics
maximize the value of their buildings while restoring of returning vacant space to active use (including
and revitalizing Downtown Murfreesboro in the process. Americans with Disabilities Act compliance, e.g.,
None should be used in-lieu of, but rather in addition to, elevators and Universal Design), funding needs to be
aggressive code enforcement. more liberal and tied to the estimated post renovation
value of the property.
FAÇADE GRANTS AND LOANS
Generally speaking, any grant that can be amortized
The most common form of building incentive is façade
grants and loans. These are typically small-dollar through incremental property tax revenues over a term
matching funds for the exterior repair and restoration of of five to eight years is probably a good candidate for
formerly historic buildings. this type of program. This can be discerned through a
before and after (estimated) appraisal of the property,
A typical transaction would involve the City putting and with a firm agreement from the property-owner
up a dollar-for-dollar match to return a highly visible, to pay any and all new taxes needed to replenish the
but inappropriately modernized historic building to program within the stated time frame. As with most
something closer to its original look. Funds are usually façade grants, the applicant should be required to front
set aside from the city’s general fund or from an existing at least 50 percent of the total cost of rehabilitation.
TIF district and design oversight is guided by historic Also, since the intent is to help enliven Downtown at
preservation guidelines promulgated by a city’s historic different times of the day and week, preference should
preservation commission, civic design commission or be given to residential units over offices.
Main Street board. Main Street organizations and staff
often provide technical and architectural assistance. City and/or Main Street staff should poll Downtown
property-owners about their interest in taking
UPPER-FLOOR OCCUPANCY GRANTS advantage of such programs before any time and effort
To help relieve the deadening effects of dark upper is spent establishing them.
floors in downtowns aspiring to be more lively, some