Tax Credits: The financial help afforded by tax credits helps developers, both small and large, reduce out-of-pocket development costs. While many of these credits come with extensive expectations and restrictive timelines, they are often the difference between completing and shelving a project. Most of these programs are government funded and therefore have a very specific goal.
The desire to help preserve historic buildings while recognizing the added expense in the process led to the Historic Preservation Tax Credits. The goal was to encourage developers to rehabilitate and re-use historical buildings in a way that maintained their historical integrity while giving them new life. The result was a number of developers considered buildings that otherwise would have been ignored or torn down. One example is the American Society of Metals building in Cleveland, Ohio (see video above). The renovation of the building included a 103 foot geodesic dome designed by R. Buckminster Fuller. The history of the building inspired not only the physical structure, but the interior decor as well. Rehabilitation Tax Credits also help with the renovation, restoration and rehabilitation of historic buildings.
New Market Tax Credits were established in 2000 to spur new business in low-income areas (see video above). The nationally funded credit allowed investors to receive a tax credit for making donation to CDEs (Community Development Entities) in hopes of revitalizing under developed or blighted areas. These funds were distributed through October 2011. The Low Income Housing Credits are a dollar for dollar tax credit given to developers to encourage the development of low income housing. While the LIHTC is not limited to redvelopment projects, many developers combined these credits when including residential units in their projects.
Other Financing Options:Tax Increment Financing districts are a means to improve a specific area. Tax dollars are used for anything from schools with in the area to improving infrastructure needed for redevelopment. The goal is to help revitalize areas that are under-developed or suffering from blight. Developers benefit from these funds because they help provide financing for some of the additional development costs of a project such as street repair, lighting, even sewer updating. The benefit to the area is that it experiences renewed development and revitalization.
Oriented Developments: A growing trend in development is to orient it, often through mixed use, to the major type of transportation of an area. The two most common oriented developments are Transit Oriented Developments and Pedestrian Oriented Developments. A transit Oriented Development seeks to maximize access to public transportation available for residents to live, work, and play. It centers around transit stations and often becomes a determining factor in placement of stations and businesses. A Pedestrian Oriented Development focuses on the walkability of an area. This might include wider sidewalks or actual pedestrian streets. This type of development capitalizes on the lifestyle of residents and attracts residential, retail, business and entertainment venues that want to serve this growing population.
Oriented Developments: A growing trend in development is to orient it, often through mixed use, to the major type of transportation of an area. The two most common oriented developments are Transit Oriented Developments and Pedestrian Oriented Developments. A transit Oriented Development seeks to maximize access to public transportation available for residents to live, work, and play. It centers around transit stations and often becomes a determining factor in placement of stations and businesses. A Pedestrian Oriented Development focuses on the walkability of an area. This might include wider sidewalks or actual pedestrian streets. This type of development capitalizes on the lifestyle of residents and attracts residential, retail, business and entertainment venues that want to serve this growing population.