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Historic Tax Credits News Briefs - November 2023

The National Park Service (NPS) issued updated guidance Oct. 5 on the use of substitute materials in rehabilitating buildings while using the federal historic tax credit (HTC). The guidance, Preservation Brief 16: The Use of Substitute Materials on Historic Building Exteriors, is revised to include when substitute materials may be appropriate and provide a decision-making path. The guidance includes an expanded and updated list of building features and substitute materials that may be used as replacement materials. The NPS said webinars on the new guidance would be scheduled in the coming weeks.

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The Historical Tax Credit Coalition (HTCC) in September issued a report that indicates that more than two-thirds of respondents think one of the most pressing issues facing HTC developers today is the conservative interpretation of the Secretary of the Interior’s standards. Most respondents, 69%, indicated it as the top challenge in the HTCC’s “Addressing Challenges of the 21st Century” report. Holds or requests for more information, inconsistent review between projects and increased level of documentation were other challenges reported.

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The Missouri Department of Economic Development proposed amendments in September to the state HTC, clarifying stages when an application may be submitted, altering the order in which credits are allocated from a set-aside in qualified census tracts, clarifying which applications require a level of economic stress evaluation and more. The Missouri HTC is for 25% of qualified rehabilitation expenditures for commercial or residential properties.

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Financing for the $82 million redevelopment of The Chemical Building in St. Louis into a Marriott Hotel includes equity from HTCs. Campo Architecture & Interior Design, Beechwood Pinnacle Hotels and InterMountain Management plan to convert the 127-year-old brick building into a 240-room hotel. The developers plan to begin work late this year with an eye toward opening in 2025. A previous attempt to redevelop the site under a different developer targeted the locale for micro apartments.

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Redesign Inc. is redeveloping the Coliseum Building on East Lake Street in Minneapolis into a mixed-use property. Built in 1917 as Freeman’s Department Store, the building was partially burned in 2020 during civil uprising in the aftermath of the murder of George Floyd. At the time of the fire, the site hosted restaurants and other businesses. The redevelopment includes HTC equity in a $29 million capital stack.

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Wolfe Investments and Bluelofts Inc. closed in August on $28 million in federal and state HTC equity for the redevelopment of the Grant Building in Atlanta. Developers plan to remake the site, built in 1898, into a mixed-used site with market-rate rental apartments as well as commercial and retail space. Monarch Private Capital provided the HTC equity.

Journal Category:

Historic Tax Credits

Authors:

Novogradac

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