Issuu on Google+

A recent Historic Macon Foundation restoration

Raising funds through properties work September 28, 2012

Wednesday, October 10, 12


Today’s talk 1. History of Historic Macon’s revolving funds 1.1. Saving mansions 1.2. Vernacular houses 1.3. Neighborhood revitalization 1.3.1. Huguenin Heights 1.3.2. Beall’s Hill 1.3.2.1. Partnerships 1.3.2.2. Results 1.4. Spot Properties 2. Case studies 3. Risks 4. Ideas 5. Summary P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Motivation

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Motivation

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


First property

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


First property

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Vernacular buildings

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Vernacular buildings

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Small area

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Small area

Relative size of Huguenin Heights compared to Pleasant Hill P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Vernacular buildings

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Vernacular buildings

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Economic Development

Homes sold

Home Ownership P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12

Crime


Economic Development

Homes sold

Home Ownership P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12

Crime


Economic Development

10% Homes sold

Home Ownership P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12

Crime


Economic Development 100%

66%

10% Homes sold

Home Ownership P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12

Crime


Economic Development 100%

100%

66%

10% Homes sold

Home Ownership P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12

15% Crime


Economic Development 100%

100%

66%

10% Homes sold

Home Ownership P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12

15% Crime


Obsolete housing demolished

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Revitalization Partners

!

Each partner pays $75,000 in dues/ year into a revolving fund

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Days on Market Days on Market

150

113

75

38

0

Historic Macon

National Average

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Economic Development

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Economic Development

$40,000/ year Property Tax P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Economic Development

$40,000/ year

$60,000

Property Tax

Sales Tax P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Economic Development

$40,000/ year

$60,000

56 Jobs

Property Tax

Sales Tax

Jobs

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Recent Beall’s Hill Projects

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Recent Beall’s Hill Projects

! P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Current management

•Executive Director identifies projects, drafts pro formas •ED negotiates and signs contracts for acquisition •Full-time interior designer drafts rehab proposal •Before acquired, Preservation Committee and Board approve acquisition, rehab and sale •ED either hires a General Contractor or Construction Manager not-at-risk (usually the latter for rehab) •Next report to the Board is net performance after sale P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


306 Orange St.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


306 Orange St.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


306 Orange St.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


306 Orange St.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


306 Orange St.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


306 Orange St.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


923 Washington Ave.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


923 Washington Ave.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


923 Washington Ave.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


923 Washington Ave.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


923 Washington Ave.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


923 Washington Ave.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


923 Washington Ave.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


923 Washington Ave.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


923 Washington Ave.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


923 Washington Ave.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


1212 Ross St.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


1212 Ross St.

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Spot Properties

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Spot Properties

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Revolving Funds Preservation Fund Peyton Anderson Fund

Knight Fund Facade Funds

Hills and Heights Fund

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Revolving Funds Preservation Fund Peyton Anderson Fund

Knight Fund Facade Funds

Hills and Heights Fund

$800,000

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Revolving Funds Preservation Fund Peyton Anderson Fund

Knight Fund Facade Funds

Hills and Heights Fund

$800,000

$300,000

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Revolving Funds Preservation Fund Peyton Anderson Fund

Knight Fund Facade Funds

Hills and Heights Fund

$800,000

$600,000

$300,000

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Revolving Funds Preservation Fund Peyton Anderson Fund

Knight Fund Facade Funds

Hills and Heights Fund

$800,000

$550,000

$600,000

$300,000

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Revolving Funds Preservation Fund Peyton Anderson Fund

Knight Fund Facade Funds

Hills and Heights Fund

$200,000 $800,000

$550,000

$600,000

$300,000

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Revolving Funds Preservation Fund Peyton Anderson Fund

Knight Fund Facade Funds

Hills and Heights Fund

$200,000 $800,000

$550,000

•$2.4 million total

$600,000

$300,000

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Risks Management

•Staff

Real Estate challenges

specializing in Real estate is expensive •Even if you outsource construction, you need more staff • Board and staff relationships can strain •Have to be a market expert to acquire and sell property • Very hard to produce enough operating income to cover additional staff, much less help with existing operations

• Preservation and profit compete • Resource intensive • Without doing an entire

neighborhood, you don’t control comps, infrastructure • Risks multiply with environmental concerns, market fluctuations • Some properties are worth less than $0 • Every neighborhood has a different target buyer, and you don’t have the marketing money to reach them

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Ideas

• $1 million in endowment yields 5% • Same funds used in revolving fund •Turn twice a year (6 month projects) • Take a 6% developer’s fee/ project • Net a 12% return instead of 5%

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Ideas

• $1 million in endowment yields 5% • Same funds used in revolving fund •Turn twice a year (6 month projects) • Take a 6% developer’s fee/ project • Net a 12% return instead of 5%

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Ideas

• $1 million in endowment yields 5% • Same funds used in revolving fund •Turn twice a year (6 month projects) • Take a 6% developer’s fee/ project • Net a 12% return instead of 5%

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Ideas

• $1 million in endowment yields 5% • Same funds used in revolving fund •Turn twice a year (6 month projects) • Take a 6% developer’s fee/ project • Net a 12% return instead of 5%

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Ideas

•In kind donations have never been a source of savings •Prefer to pay for work and products and have vendors

make donations-- cleaner for taxes and benefits operating •Allow us to develop new expertise •Having rehab experience makes it easier to deal with the private market •Sometimes you can use real estate know-how to get a private developer to save a property instead of you! •Also builds relationships with new donors P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Before & Afters

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Before & Afters

P.O. Box 13358 Macon, GA 31208 Ph: 478.742.5084 Fax:478.742.2008 www.historicmacon.org

Wednesday, October 10, 12


Josh Rogers, Executive Director jrogers@historicmacon.org phone 478-742-5084 • fax 478-742-2008 email info@historicmacon.org • site www.historicmacon.org

Wednesday, October 10, 12


CASE STUDY Purchase a home with tax credits in place

Wednesday, October 10, 12


Homes

Wednesday, October 10, 12


Homes

Wednesday, October 10, 12


Homes Restored homes from Historic Macon Foundation include tax credits

Wednesday, October 10, 12


Homes Restored homes from Historic Macon Foundation include tax credits

Wednesday, October 10, 12


Homes Restored homes from Historic Macon Foundation include tax credits This home at 980 Maple St. included frozen property taxes at $200 per year and $30,000 in state income tax credits.

Wednesday, October 10, 12


Homes Restored homes from Historic Macon Foundation include tax credits This home at 980 Maple St. included frozen property taxes at $200 per year and $30,000 in state income tax credits.

Wednesday, October 10, 12


Homes Restored homes from Historic Macon Foundation include tax credits This home at 980 Maple St. included frozen property taxes at $200 per year and $30,000 in state income tax credits. The net monthly cost to own this $130,000 home is $500 per month

Wednesday, October 10, 12


Homes

Wednesday, October 10, 12

Historic home

Any other home

House Price

$135,000

$135,000

Down Payment

$4,725

$4,725

You Get a Raise!

$2,700/year

$0

Reduced Property Tax

$205

$2,260

Total Savings

$44,480

$0

Total Monthly Cost

$500

$1,160


Homes

Wednesday, October 10, 12

Historic home

Any other home

House Price

$135,000

$135,000

Down Payment

$4,725

$4,725

You Get a Raise!

$2,700/year

$0

Reduced Property Tax

$205

$2,260

Total Savings

$44,480

$0

Total Monthly Cost

$500

$1,160


Down Payment Assistance

Wednesday, October 10, 12


Down Payment Assistance The City of Macon offers down payment assistance up to $25,000 for people of low to moderate incomes

Wednesday, October 10, 12


Down Payment Assistance The City of Macon offers down payment assistance up to $25,000 for people of low to moderate incomes Mercer University offers $20,000 to all employees for down payments

Wednesday, October 10, 12


Down Payment Assistance The City of Macon offers down payment assistance up to $25,000 for people of low to moderate incomes Mercer University offers $20,000 to all employees for down payments Georgia Dream can offer $5,000 to $7,500 to help with down payment and closing costs

Wednesday, October 10, 12


Sales Sheets

Wednesday, October 10, 12


L'Enfant Trust Revolving Fund