Historic improvement will get increase | Information

ABBEVILLE — Historic preservation got a big boost with passage of a bill to cut costs for development.

The Abbeville City Council took the first steps with passage of the Bailey Bill, a measure that provides tax incentives for developers interested in rehabilitating historic properties.

The bill is a special property tax incentive for rehabilitating historic buildings. If a property owner invests a minimum of 50% of their building’s assessed value back into the building, and the work is eligible and approved, then the assessed value of the property is frozen at the pre-rehabilitation value for the next 10 years.

It’s part of the area’s economic development program, said Mike Clary, the city’s community development director. Locally, grants are available, and developers can get state and federal tax credits.

“This is a really useful economic development tool, specifically for the downtown area and for any historic building in the city and county,” he said.

State law allows local governments to pass such laws and determine the percentage thresholds and tax abatement periods, he said. Abbeville County Council will consider a similar measure.

Structures that can qualify for the measure must be located in the historic district and/or be at least 50 years old and be listed on the National Register of Historic Places.

Developers would first meet with city staff to discuss their project; then apply for the bill and present their project before the local historic properties protection commission, Clary said. They also will have to follow Secretary of Interior’s standards for the treatment of historic properties.

Property owners don’t have to keep a building like it is a retail store from 100 years ago; the developer will only have to respect the historic fabric of a building whenever possible, he said.

Assuming a developer buys a large downtown historical building that needs work, Clary said. It might be assessed at $100,000. After the developer finishes work, the building might be valued at $500,000. Under the bill’s provisions, the developer would pay property taxes at the $100,000 assessed level for 10 years, assuming a final inspection determines all agreed upon improvements have been made.

The city won’t lose tax revenue, he said. The measure encourages developers to move into town.

“This is a very useful tool to help offset some of that required investment,” Clary said.

Developers reaching out to city officials about larger buildings downtown sparked conversation about ways the city can help people invest in the community, Clary said. City officials have fielded questions from developers about buildings on a frequent basis.

No one has taken advantage of it yet and there is no specific developer who prompted consideration of the bill.

It’s a desire to make the city as attractive as possible to outside investment and to preserve the local historic properties, Clary said.

City officials will meet with the local historic properties protection commission to discuss the measure on April 15.

The city’s historic district has 60-plus properties that could qualify for bill, he said.

Contact staff writer Robert Jordan at 864-943-5650.