Charlotte-Mecklenburg Historic Landmarks Commission Request for $2,000,000 March 30, 2016

Request for $2,000,000 to be Added to Revolving Fund Together with existing funds, the additional amount will be used to fulfill a dynamic five- year plan to purchase and rehabilitate historic properties. Properties will then be sold with deed restrictions in place to assure their continued preservation.

HLC Plans to Spend $3,000,000 in Each of the Next Five Years with Main Focus on Four Areas: Structures associated with African American History: Sites related to County’s agricultural and textile past. Properties in areas where restoration could stabilize and/or encourage economic growth. Buildings that are threatened because of their location in or near Uptown Charlotte.

Examples of Designated Historic Landmarks for Potential Purchase Mount Carmel Baptist Church Pineville Mill Managers Houses, Cone Mill Village Hovis Funeral Home S.W. & C.S. Davis Company General Store William Grier House Atherton Cotton Mill House, Dilworth Biddleville

Preservation of historic properties has important benefits Gives a sense of place and unique identity: downtowns of Matthews and Pineville. Stabilizes communities and encourages economic development: North Davidson (NODA) and Beatties Ford Road Corridor. Increases the tax base: South End. Provides a strong component of heritage tourism: Davidson. Adds to quality of life which is important in attracting new businesses: Davidson. Other benefits: greater number of construction jobs and savings from “recycling” existing buildings.

HLC Recognizes Its Fiduciary Responsibility to Use the Funds Wisely Fund has been used to preserve 42 properties since Most properties have been sold and the Fund replenished (78.3% replenishment rate-past 15 years). Historic properties usually show a loss when sold due to high preservation costs that are not fully recovered. As it has gained more experience in preservation, the HLC has adopted policies and procedures to control spending and has an 88.5% target replenishment rate.

Example Properties Saved By The Revolving Fund Grier-Rea House Outen Pottery, Matthews N. S. Alexander House White Oak Funderburk-Plaxco House Dr. George E. Davis House, JCSU Phillips House, MatthewsDelburg House, Davidson Richard Wearn House

Impact on HLC Five-Year Plan Without Additional Funding Without an increase in funding, the Fund balance will be tight at the end of FY After planned expenditures, the projected balance will be $160,000. Allowing for an “Emergency Reserve” of $1,000,000, the deficit will be $(840,000). The HLC has a policy of maintaining an “Emergency Reserve” to cover unanticipated emergencies such as the need to buy a designated landmark threatened with demolition.

Impact on HLC Five-Year Plan Without Additional Funding (Continued) In FY 2018 – 2020, the Fund ending balance will show deficits ranging from $(354,000) to $(50,000) Allowing for the “Emergency Reserve”, the deficits will range from $(1,354,000) to $(1,050,000). If the requested $2,000,000 is included, the deficits after the “Emergency Reserve” are eliminated.

Chart 1 Projection FY 2017 – 2021– No Increase in Funds In $000sFY 2016FY 2017FY 2018FY 2019FY 2020FY 2021 Beg Revolver Availability4,9342,499160(220)(354)(50) Income (Sale of Property)571,6151,5113,6772,2053,494 Expenses (Property)2,4923,9541,9013,8011,901 Ending Revolver Availability2,499160(230)(354)(50)1,544 Emergency Reserve *1,000 Availability after Emer. Res.1,499(840)(1,230)(1,354)(1,050)544 * Emergency Reserve is amount that is available to cover unanticipated property purchases/expenses.

Chart 2 Projection FY 2017 – $2,000,000 Increase in Funds In $000sFY 2016FY 2017FY 2018FY 2019FY 2020FY 2021 Beg Revolver Availability6,9344,4992,1601,7701,6461,895 Income (Sale of Property)571,6151,5113,6772,2063,494 Expenses (Property)2,4923,9541,9013,8011,901 Ending Revolver Availability4,4992,1601,7701,6461,9503,453 Emergency Reserve *1,000 Availability after Emer. Res.3,4991, ,544 *Emergency Reserve is amount that is available to cover unanticipated property purchases/expenses.