HomeMy WebLinkAboutIR 24-1881INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 24-1881 1
D'ATE4 To the Mayor and Members of the City Council August 20, 2024
V. Page 1 of 1
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Yn SUBJECT: HISTORIC PRESERVATION INCENTIVES TO SUPPORT SMALL
BUSINESSES
The purpose of this Informal Report is to provide information on various historic preservation financial
incentives available to support small local businesses in Fort Worth.
There are several historic preservation financial incentives on the local, state, and federal level to help
support small businesses with maintenance and rehabilitation of cultural resources, and in some cases
support business operations for historic small businesses. On the local level, the City of Fort Worth offers a
Historic Site Tax Exemption (HSTE) to encourage substantial rehabilitation of locally designated historic
properties, which freezes assessed property valuations at the pre -renovation values for ten (10 years) for
the purpose of assessing City taxes. Development Services supports local small business through
development process facilitation. The Economic Development department also helps support local small
businesses by offering one-on-one consultations at the Business Assistance Center, which holds regular
workshops for aspiring small business owners for financial and accounting literature and training, business
plan writing, marketing, and other business prep topics. Economic Development partners with Community
Development Financial Institutions (CDFIs) and other local financial partners to assist small businesses with
low -interest loans and/or grants. During times of need, the Economic Development Department has initiated
short-term grant assistance programs, such as during the COVID-19 pandemic and most recently for the
Sandman Hotel explosion that impacted several small businesses.
Development Services staff coordinates with other departments such as Economic Development as grants
become available to share those opportunities with community partners. In addition, Development Services
staff provides technical assistance in preparation of historic preservation grant applications as needed by
community partners, such as recent grant applications for Pioneers Rest Cemetery that received a grant
award from the Texas Preservation Trust Fund.
On the state level, the Texas Historical Commission (THC) has several financial tools to assist historic small
businesses in Fort Worth. These tools include state historic preservation credits (eligible projects can receive
up to 25% of rehabilitation costs back via tax credits), grant opportunities through the State's Certified Local
Government (CLG) program, and the Texas Preservation Trust Fund. A full list of State preservation financial
incentives can be found online: https://thc.texas.gov/preserve/grants-tax-credits-and-funding
Lastly, there are significant preservation financial incentives available at the federal level to support historic
small businesses. The National Park Service (NPS) offers a 20% tax credit for rehabilitation costs, which
can be paired with the State preservation tax credit to rebate small businesses up to 45% of rehabilitation
costs for eligible projects. The NPS also has several grant opportunities through the Historic Preservation
Fund (HPF). The National Trust for Historic Preservation is another important source of preservation
financial incentives at the federal level. The National Trust has several grant programs to assist small
businesses. One successful National Trust grant is the Backing Historic Small Restaurants program, which
awards funds to help historic small restaurants rejuvenate, innovate, and expand their businesses, ensuring
their cherished legacies endure.
For more information on historic preservation financial incentives that can support local small businesses or
other rehabilitation projects, please contact Justin Newhart, Planning Manager, Development Services, at
817-392-8037.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS