Taking a neglected building and making it into a respectable (and profitable) property can require a healthy amount of money. In select situations, Federal Historic Preservation Tax Incentives can help to ease the burden. The government issues two types of such credits: a 20 percent tax credit for the certified rehab of certified historic structures and a 10 percent tax credit for the rehab of non-historic, non-residential buildings built before 1936.
The Hotel Northland in Green Bay, Wisc., is one such property looking to take advantage of credits like these. The governor recently lifted a temporary moratorium on the state’s historic preservation tax credit after it was put on hold due to cost concerns.
With that green light and after a thorough budgeting and design process to ensure the restoration of the 90-year-old property into a boutique hotel maintains the historic integrity of the building, the developers continue the application process with the National Park Service.
“The cost of historic restoration is significant, far exceeding the room revenue that can be achieved in a tertiary market like Green Bay,” a hotel rep stated. “Therefore, economic development incentives are necessary to complete the project and create jobs and a significant increase in the tax base.”
