2009 Timmy Awards Finalists Showcase Outstanding Historic Tax Credit Projects

By Caitlin Jones
November 16, 2009 13 min read

Tax Credit Advisor, November 2009:

A mixed-used development in Memphis, an independent senior living facility for seniors in New York, and a mixed-income apartment project created from a former chocolate factory in Massachusetts are just a few of the projects named finalists in the 2009 J. Timothy (“Timmy”) Awards for Excellence in Historic Preservation.

Started and administered by the National Housing & Rehabilitation Association (NH&RA), the Timmy Awards honor outstanding projects throughout the U.S. that involve the rehabilitation of older historic buildings, including through the use of the federal historic rehabilitation tax credit. The Timmy Awards are named after the late Boston architect and preservation advocate J. Timothy Anderson, a leader in the historic preservation field.

A panel of judges selected 23 finalists in the 2009 competition, which is co-sponsored by the National Trust Community Investment Corporation, a subsidiary of the National Trust for Historic Preservation. One winner in each of eight categories will be recognized at a November 3rd awards ceremony during NH&RA’s 2009 Fall Developers Forum conference in Boston, Mass.

The eight award categories and the finalists in each are:

Best Historic Rehabilitation Utilizing LIHTC – Large (Total Development Cost Above $5 Million)

Toward Independent Living & Learning (TILL) Building

Chelsea, Mass.

Toward Independent Living & Learning (TILL), a nonprofit agency that serves individuals with disabilities, renovated a handful of older, under-utilized buildings into a single-interconnected development to expand its community-based residential, vocational, and support services. The new TILL Building contains 23 affordable housing units and 11,000 square feet of ground-floor commercial space. The $6.5 million project was funded by equity generated by federal and state historic rehabilitation tax credits and federal low-income housing tax credits, federal HOME funds, and other resources.

Globe Mills

Sacramento, Calif.

This $38 million development by C.F.Y. Development, Inc. involved the renovation of an historic 1914 former mill building that had become blighted and ravaged by fire in 1995. The historic adaptive reuse of the structure produced a mixed-income, mixed-use development, located on a light rail line, which includes 112 affordable senior units in two new buildings, 31 moderate-rate lofts in the original 1914 building, and 2,800 square feet of neighborhood commercial space. The senior units are rented to seniors making between 30 and 60 percent of the area median income. Among the funding sources were low-income housing tax credit equity, tax increment financing, a HUD Section 108 loan, a bank loan, federal HOME dollars, and a city infrastructure grant.

Cornerstone Courtyard

Spokane, Wash.

Developed by the Spokane Housing Authority, dba Northeast Washington Housing Solutions, Cornerstone Courtyard involved the conversion of a vacant, 67,500-square-foot historic warehouse building constructed in 1905 and a 1928 addition into a modern residential property containing 50 one-, two-, and three-bedroom loft-type apartments. The design of the new apartments capitalized on the open floor plan, high ceilings, and large windows of the existing structure to provide loft-type units that are spacious, light, and airy. The majority of the large basement was used to provide optional on-site parking for residents, and the remainder converted into a community room, exercise room, laundry room, and rest rooms. The $11.4 million development, located in an historic downtown industrial neighborhood, offers housing affordable to low-wage workers in a location convenient to transit, basic services, recreational facilities, and other opportunities. Funding sources included federal housing and historic tax credit equity, state housing trust fund dollars, and federal HOME dollars monies.

Best Historic Rehabilitation Utilizing LIHTC – Small (Total Development Cost $5 Million or Less)

Fairbanks Flats Rowhomes

Beloit, Wisc.

This $3.2 million project involved the redevelopment of a local landmark property originally built as segregated company housing. Fairbank Flats was one of only two building sites in the U.S. ever constructed to house African American workers. In 1917, Fairbanks Morse, an engine manufacturer and the largest local largest employer, constructed four identical buildings housing two-story units that were occupied by African American workers at the plant. The property changed hands over the years and the buildings fell into disrepair before they became vacant by 1999. Developer Gorman & Company redeveloped the complex into 16 rent-to-own affordable townhouses for low- to moderate-income families and persons with disabilities. Funding sources included equity generated by federal and state historic tax credits and federal housing credits, a first mortgage, city loan, and deferred development fee.

Best Mixed-Income Residential

Baker Lofts

Dorchester, Mass.

Completed in October 2008 by WinnDevelopment, this $47.7 million mixed-income residential property featured the renovation and adaptive reuse of reuse of three historically significant abandoned industrial buildings into 60 apartments with high ceilings, exposed brick walls and beams, and other premium details. The development utilized buildings originally associated with the Walter Banker Chocolate Company, which began operations in the 1800s. Funding sources included federal and state historic tax credit equity, conventional debt, owner equity, deferred development fee, and proceeds from the sale of parking spaces.

Park Lane at Sea View

Staten Island, N.Y.

Federal housing and historic tax credit equity, soft loans, city tax abatement, and state energy efficiency grants were among the funding sources for this $29.7 million project by The Domain Companies. Park Lane at Sea View involved the conversion of two historic structures used by a series of hospitals since the mid-1800s, which were acquired through a 99-year subsidized lease. Placed in service in May 2009, the $29.7 million development provides 104 independent living units for seniors of different income levels, amenities, and services. Park Lane at Sea View is the first historic rehab project to utilize a New York state program that supports the development of green affordable housing.

Best Market-Rate Residential

German Bank Building

Dubuque, Iowa

A former historic bank building later used as a restaurant, which suffered structural damage and then was devastated by fire, was restored to productive use in a $1.8 million renovation project by Gronen Restoration, Inc. The project resulted in the re-opening of the restaurant and the construction of two apartments. Funding sources included equity generated by federal and state historic tax credits, tax-increment financing, and multiple grants and loans.

Market at Fifth

Pittsburgh, Pa.

This $4.5 million project involved the redevelopment of three deteriorated former commercial buildings acquired from the city, into seven custom-built, market-rate apartments. A green building project of the Pittsburgh History & Landmarks Foundation, this effort featured the rehabilitation of three buildings, including a 1908 structure once used by the Regan Shoe Company. Market at Fifth, located in the Market Square Historic District, is set to be one of the first projects in Pennsylvania and one of six projects in the U.S. to use federal historic rehabilitation tax credits while achieving LEED Gold certification. Funding sources included federal historic tax credit equity, multiple grants, and developer equity.

The Krauss Building aka 1201 Canal Apartments/Condominiums

New Orleans, La.

Developed by the KFK Group, this $59.6 million development was financed with equity generated by federal and state historic tax credits, with a bump-up in the federal historic credit rate due to the project’s location in the Gulf Opportunity Zone. The project involved the renovation and redevelopment of the Kraus Building, once New Orleans’ largest department store, into 122 luxury apartments, 107 for-sale condominiums, and 25,000-square-feet of ground-floor retail space. Located one block from the French Quarter, 1201 Canal was the first major residential project to get off the ground after Hurricane Katrina.

Most Innovative Adaptive Reuse

Charles H. Shaw Technology & Learning Center

Chicago, Ill.

Developed by the Homan Arthington Foundation, the Charles H. Shaw Technology and Learning Center represents a $45.7 million rehabilitation and adaptive reuse of the Power House, one of four main buildings that was the original headquarters complex for Sears, Roebuck and Company. The 1905 Power House building, which by 2004 was vacant and deteriorating, has been redeveloped for use by Power House High, a public charter school affiliated, and for community activities. Funding sources included equity generated by federal historic and new markets tax credits, charitable donations, and sponsor and foundation advances.

American Brewery “Brewhouse” Building

Baltimore, Md.

A variety of public and private funds were used to finance the renovation and conversion of the vacant and abandoned American Brewery Building into office and program space for the jobs and employment training programs of Humanim, a local nonprofit that redeveloped the property. The American Brewery Building, a five-story 30,000 square foot structure constructed in 1887, was originally one of two dozen buildings in the J.F. Wiessner & Sons brewery complex. The building was given to the city in 1977, was sold it to the developer in 2007 for $2,500. Among the funding sources for the $24 million project was equity generated by federal historic and new markets tax credits and state historic tax credits.

The Old Cotton Factory

Rock Hill, S.C.

The federal historic and new markets tax credits, and South Carolina’s state historic and mill tax credits, were key funding sources for this $14.4 million project by Barwick & Associates. The project involved the rehabilitation and conversion of the former Rock Hill Cotton Factory, a 90,000-square-foot textile mill built in 1881, into office and commercial space. The primary tenant is a local student loan collection firm, which has moved in all of its 200 employees. The site is at the head of the city’s designated Textile Corridor, a 250-acre redevelopment area characterized by abandoned textile mills and dilapidated mill villages that lies between the city’s historic downtown and the campus of Winthrop University.

The Krauss Building aka 1201 Canal Apartments/Condominiums

New Orleans, La.

(See previous description, under Best Market-Rate Residential)

Best Historic Rehabilitation Utilizing New Markets Tax Credits

Davis and Sargent Building

Lowell, Mass.

The Davis and Sargent Building, an empty and rundown former mill building located in the Lowell National Historic Park, was renovated into the headquarter offices for Nobis Engineering, a civil, environmental, and geotechnical engineering firm. The $5.3 million project, which has applied for LEED Gold certification, was developed by Overlook Associates, LLC. Funding sources included equity generated by federal historic and new markets tax credits and state historic tax credits, debt, tax increment financing, and national grid energy rebates.

Miller’s Court

Baltimore, Md.

Seawall Development Company renovated and transformed this historic industrial building, once used to manufacture tin cans, into a mixed-use complex that is public education oriented. The facility includes 40 mixed-income apartments offering a rent break to public school teachers, plus 30,000 square feet of office and commercial space targeted to nonprofits that work with and support the Baltimore City School system. Of the apartments, 25% are income-restricted. Among the funding sources for the $21.1 million development included federal historic and new markets tax credits, state historic tax credits, local historic incentives, and brownfield and enterprise zone tax incentives.

Court Square Center

Memphis, Tenn.

This $50.8 million modern mixed-use development, containing 59 apartments and commercial and retail space, was created from the rehabilitation of two historic commercial buildings and the construction of a third building, in a project that has spawned economic development and job opportunities for local residents. Co-developed by Telesis Corporation and CGI & Partners Court Square Center, LLC, the project involved the rehabilitation and adaptive re-use of the Columbian Mutual Life Assurance Society Building, a 22-story office skyscraper constructed in 1924, and of the Lowenstein Building, a 19th century former department store. A third, new building will replace the Court Annex Building, which was destroyed by first in 2006 while the project was underway. Funding sources included equity generated by federal historic and new markets tax credits, a HUD Section 108 loan, other loans, federal brownfield dollars, and developer equity.

Best Historic Rehabilitation Involving New Construction

The Westin Book Cadillac Hotel and Condominiums

Detroit, Mich.

The Westin Book Cadillac Hotel & Condominiums is the result of the $187 million restoration of a landmark former local hotel that had fallen on hard times, into a four-star hotel with 453 hotel rooms, 30,000 square feet of meeting space, and 64 luxury condominiums. The original 1,200-room Book Cadillac Hotel, built by the Book Brothers in 1924, was the tallest hotel in the world when it opened and the largest outside of New York City. It changed hands over the years, began to decline in the mid-1970s, and was abandoned in 1984. The redevelopment, undertaken by The Ferchill Group in partnership with Starwood Hotels & Resorts, utilized 22 funding sources, including equity, multiple tax credits, grants, and loans.

Whistler Crossing

Riverdale, Ill.

This $38.5 million project by Holsten Real Estate Development Corp. involved the historic rehabilitation and restoration of 80 townhouse units and the construction of two new mixed-use buildings into 106 affordable and 24 market-rate rental units. The original townhouses, when built in 1960 as part of the Pacesetter Garden District, signified a new era in suburban homebuilding. The new development features many green and energy efficiency features, including solar-generated power for the two new buildings. Funding sources included federal historic and housing tax credit equity, federal HOME funds, and state trust fund dollars.

Globe Mills

Sacramento, Calif.

(See previous description, under Best Historic Rehabilitation Utilizing LIHTC – Large)

Best Commercial/Retail/Non-Residential Project

The Fowler Building

Waterloo, Iowa

A conventional bank loan and owner’s equity financed this $2.1 million project by JSA Development. The project involved the renovation of an historic building into three market-rate apartments and office and commercial space. The owner kept the federal and state historic tax credits. Other funding included a Main Street Challenge grant and property tax abatement from the city. The three-story structure was originally built in 1884 and used by a variety of businesses over the years.

Charlottesville Hardware Company Building

Charlottesville, Va.

Three distinct businesses now occupy the Charlottesville Hardware Company Building following its $4.4 million historic rehabilitation by Octagon Partners. Funding sources for the project included equity generated by federal and state historic tax credits and other monies. The building was originally constructed in 1895 and rebuilt in 1909 after a fire. It served as the primary downtown hardware store for the Charlottesville community until the 1970s, when the hardware company moved to a more suburban location. From 1976 until 2006 a restaurant occupied the premises.