Embracing the Economics of Historic Preservation
Reusing and renovating already-constructed buildings can lead the way out of this recession
by James T. Kienle, FAIA
Summary: Headlines of unemployment rates, continued layoffs, acquisitions, and buy-outs are still prevalent, but are also being neighbored with articles on environmental responsibility and sustainable development. Though the recession is predicted to be over, many are not confident it has run its course. But there is one thing we do know: historic preservation, with its inherent greenness and economic value, is being seen as possibly leading the way during these challenging economic times. The current recession began with the collapse of the housing market, which had a domino effect into nearly all sectors of construction. With new construction waning, the economics of reusing existing structures becomes more inviting. Despite the tired cry of "that old building is too expensive to save," I have seen very few buildings in my nearly 40 years of practice that would fit that description. “That old building” may not only be the greenest on the block, as is often said of late, but it may also be the most cost-effective opportunity to revitalize our communities in this time of uncertainty.
Turning the old into something new
During the building boom, preservationists tried relentlessly to educate people
about the inherent sustainability and economic advantages of reusing structures
. . . often falling on deaf ears. The seductiveness of building new was too
great a temptation to overcome. Land was cheap as cities and towns sprawled
into precious farmland. The real estate tax structure favored new construction
over reinvestment in existing structures. The older structures in America's
downtowns, from urban centers to villages, sat vacant, often demolished by
neglect. It was easier to clear virgin land and build new – ever widening
the suburbs – than
to reclaim the old.
With new construction now lost to the depressive effects of the current recession, more people are beginning to take heed of the economic value, and inherent and environmental value, of older structures. Structures built before 1940 are particularly more sustainable because they considered natural heating and cooling with operable windows, greater thermal mass, more environmentally friendly materials, and natural orientation to the environment. Further, the energy to build them has already been spent. The U.S. Green Building Council (USGBC) has even adjusted its LEED® rating system to begin accounting for the value of older structures. Additionally, reusing existing structures usually results in reusing other existing infrastructure, employing the already built network of roads, utilities and community facilities, instead of stretching them to unaffordable levels.
Reusing existing structures is recycling at its best. Not only is the embodied energy preserved, but avoiding demolition also reduces the financial and environmental costs of hauling debris and waste materials off to a landfill. Energy and money are spent in rehabilitating structures, but seldom come close to the costs of a new building. As Richard Moe, president of the National Trust for Historic Preservation pointed out at the 2008 Greenbuild International Conference & Expo: "Demolishing a 500,000-square-foot building creates 40,000 tons of debris, enough to fill 250 railroad boxcars, a train two miles long, heading for the landfill. Constructing a new 500,000 foot building would release as much carbon into the atmosphere as driving a car 30 million miles. It takes 35-50 years for an energy efficient new home to recover the carbon expended to construct it."
The dollars and cents of preservation
The cost advantages
and environmental impact of new construction versus recycling older
structures are important to keep in mind as urban areas are revitalized.
Hopefully, these factors are enough to keep developers and planners
from making the same mistakes seen during the urban renewal period
of the 1950s, ‘60s and ‘70s, when whole blocks of historic
structures were wiped out to build new neighborhoods and commercial
areas. Reusing an older structure and creating appropriate in-fill
is a challenge, and requires significant vision from the architect.
It is often simply easier to wipe out the old and start with a clean
slate. But if you take into consideration the entire cost in dollars
and energy of this approach with demolition, landfills, creating
new infrastructure, and new construction, the challenge is one that
the architectural profession needs to embrace more ardently.
Further, not only is reusing an existing structure and infrastructure an appealing option for the cost and environmental advantages of recycling a building versus building new, but studies show that dollar for dollar, historic preservation is one of the highest job-generating economic development options, as illustrated in the 2005 presentation, "The Economics of Historic Preservation" by Don Rypkema:
- In Michigan, $1 million in building rehabilitation creates 12 more jobs than does manufacturing $1 million worth of cars
- In West Virginia, $1 million of rehabilitation creates 20 more jobs than mining $1 million worth of coal
- In Oklahoma, $1 million of rehabilitation creates 29 more jobs than pumping $1 million worth of oil
- In Oregon, $1 million of rehabilitation creates 22 more jobs than cutting $1 million worth of timber
- In Pennsylvania, $1 million of rehabilitation creates 12 more jobs than processing $1 million worth of steel
- In California, $1 million of rehabilitation creates five more jobs than manufacturing $1 million worth of electronic equipment
- In South Dakota, $1 million of rehabilitation creates 17 more jobs than growing $1 million worth of agricultural products
- In South Carolina, $1 million of rehabilitation creates eight more jobs than manufacturing $1 million worth of textiles.
The Advisory Council for Historic Preservation further observes that, "These are not just temporary construction jobs but also permanent jobs of various types, including continuing building repair and maintenance. As past studies have found, there are both direct and indirect economic effects from historic preservation, and there is an economic multiplier effect that ripples through the economy."
We need to inspire and maintain creative thinking about how to continue to pull ourselves out of the recession while also helping preserve our existing and natural resources. As historic preservation stimulates job creation, decreases pollutants, and allows for environmental and economical considerations, it is a viable and competitive option for architectural opportunities. |