Milwaukee's Ugliest Building: On the Path to Renewal

Join members of the Wisconsin Trust for Historic Preservation on Thursday, September 12 to learn more about the path to renewal for Milwaukee’s “Ugliest Building.”

The free event, co-hosted in partnership with the Historic Preservation Institute and MSOE, welcomes students and local preservation advocates for to an important discussion onsite.

 

Thursday, September 12
4:30 - 5:30 PM | Food, drinks, and socializing
5:30 - 6:00 PM | Presentation and building tours

Location: 324 N 15th St. Milwaukee, WI

Free to attend. No registration required

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Read the excerpt below for more on the building and the renewal effort:

A proposal to convert a long-vacant Menomonee Valley industrial building into apartments has received initial approval from city officials, but still faces an uphill battle.

The plan’s zoning change was approved on Monday, March 25 at a Milwaukee Plan Commission meeting, but the project faces several opponents including nearby businessowners and Milwaukee’s Department of City Development.

Building owner, Ken Breunig initially planned to convert the building into an office building, but at the commission hearing, he said the building’s structural issues prevent it from being able to handle heavy loads tied to office use.

Breunig instead wants to create around 45 apartments with monthly rents of $1,500 to $2,000. Marquette University students and staff would be the primary market, he said, along with people working in the valley and downtown.

The fire-damaged, vandalized building likely has three to five years before further deterioration makes it impossible to renovate, said Breunig, an engineer who’s redeveloped other historic buildings.

Read the full article: City panel gives initial approval to redevelopment of historic Menomonee Valley building

Saving Wisconsin's Sacred Places: Architectural Landmarks | Taliesin Workshop

You’re invited to join the WTHP at Taliesin for a compelling workshop on Wisconsin’s sacred places, held October 25-26.

Saving important Wisconsin architectural landmarks is a fundamental mission of the WTHP. Together with the HPI at UWM, the trust will be offering a two-day workshop on saving churches, temples, synagogues and other sacred places. Topics will be focused on the challenges of proper documentation along with strategies for retention and reuse of these landmark places in towns throughout Wisconsin.

AGENDA
The two-day workshop will include a combination of lectures and discussion groups. As a workshop, participants will engage in hands-on demonstrations of droning, building laser scanning, photogrammetry and object scanning. The Historic Tax Credit portion will include case studies of Wisconsin places that have effectively used tax credits for religious and nonprofit organizations.

The workshop will include an extensive exhibition of drawings and virtual reality devices for an advanced understanding of these landmarks. Site tours of local buildings and places will be included.

Review the full agenda and event information on the workshop homepage.

COSTS
This is intended to be a free workshop with drinks and some food provided. Participants can join for both days or only one with overnight accommodations independently.

The purpose of this workshop, like the other WTHP workshops, is to bring together a variety of preservation-minded people who can share knowledge and success stories with others and continue to make Wisconsin one of the best states for architectural heritage stewardship.

AUDIENCE
This workshop is intended to bring together a wide range of people involved in the art and business of saving architectural landmarks in small and mid-size towns. This year’s workshop will focus on great sacred places.

Local, state, and national organizations will come together to offer the very latest information on a variety of issues. All of them will be related to the struggles that owners, developers, architects, contractors, craftsmen, city officials, and others have with these important landmarks.

Review the full agenda and event information on the workshop homepage.

Historic Tax Credit Growth and Opportunity Act Now Introduced in Both the House and Senate

In April 2021, Representatives Earl Blumenauer (D-OR) and Darin LaHood (R-IL) introduced the Historic Tax Credit Growth and Opportunity Act (HTC-GO) in the House of Representatives (H.R. 2294), which has received nearly 60 bipartisan support.

In June, similar legislation was introduced in the Senate (S.2266) by Senators Ben Cardin (D-MD), Bill Cassidy (R-LA), Maria Cantwell (D-WA). and Susan Collins (R-ME). This is great news for Wisconsin property owners looking to restore their historic buildings. The Wisconsin Historic Preservation Tax Credit Program also provides additional 20% historic tax credits to owners as a Wisconsin income tax credit for rehabilitating historic income-producing buildings.

1610 N 2nd St, Milwaukee WI

Refresh: What is the HTC?

The Federal Historic Tax Credit (HTC) is a 20% credit applied to qualified rehabilitation expenses for certified historic structures distributed over 5 years (4% per year). It represents, by far, the largest federal investment in historic preservation.

Since its inception, the credit has contributed to the rehabilitation of over 45,000 historic buildings and the construction of over 172,000 low- and moderate-income affordable housing units. The HTC also plays a major role in revitalizing our communities and supporting our nation’s economy. It has attracted approximately $173 million private investment, generated $38.1 billion in federal tax revenue, and created nearly 3 million jobs.

 New HTC for Temporary Provisions

The new version of HTC-GO includes temporary provisions that will bring relief to projects impacted by the COVID-19 pandemic. Developers and building owners nationwide are now facing increasing challenges in rehabilitating historic properties as our economy slowly recovers. The HTC-GO legislation temporarily increases the rehabilitation credit (IRC § 47) from 20% to 30% thorough 2021 and phase down to 26% in 2025, 23% in 2026, and returns to 20% in 2021 and thereafter.

In addition, the HTC-GO includes permanent provisions that will bring more value to the HTC, improve access to the credit, and enhance investment opportunities for smaller rehabilitation projects. The bill would increase the credit from 20 to 30 percent for projects with rehabilitation expenses of less than $2.5 million. 

Taking Action to Grow the HTC

These provisions were included and passed in the House Infrastructure bill (HR 2) in July 2020. We urge you to ask your members of Congress to support HTC-GO and to include the bill provisions in a larger infrastructure package. There are several ways you can reach out to your Senators:

• Fill out this advocacy alert on SavingPlaces.org by the National Trust for Historic Preservation.

• Call Your Senators Directly: To locate the names, phone numbers and websites of your Senators via the Senate website or call the Capitol Switchboard at 202-225-3121 and asked to be connected to your or Senator’s DC office. Once connected ask to speak to the Member’s staff or staffer that handle tax issues.

• You can also communicate on the Member’s website. For Sen. Ron Johnson, please visit https://www.ronjohnson.senate.gov. For Sen. Tammy Baldwin, please visit https://www.baldwin.senate.gov. Send a message to your Senators through their website and select “tax” or “taxation” as the issue area.

Please share responses from Senate offices and acquire assistance with your advocacy by emailing: hongyan@wipreservation.org.

Learn more:

1. National Trust for Historic Preservation and Historic Tax Credit Coalition: HTC-GO Bill and Fact Sheet (April 2021)

2. Carl Wolf: On the Hill: Historic Tax Credit Growth and Opportunity Act (HTC-GO) Now Introduced in Both the House and Senate

Mid-Century Buildings Eligible for Historic Tax Credits

The following is excerpt from an article printed in the Milwaukee Journal Sentinel, April 1, 2021.

A recent article from the Milwaukee Journal Sentinel points out that buildings constructed in the 1950s and 60s are eligible for placement on the National Register of Historic Places. As these structures are over 50 years old they now meet one of the criteria for the registry. Recognition on the National Register makes a building eligible for state and federal historic preservation tax credits toward renovations.

Marshall & Ilsey Bank Building

Milwaukee, 770 N. Water Street

Mid-Century Becomes Historic

According to the article, of the “2,000 buildings listed by the [local] Milwaukee Historic Preservation Commission, only a handful were built in the 20th century’s second half.” It is more common to think of buildings built before World War II as historic, but the architectural value of structures considered “mid-century”, or from the 50s and 60s, is also significant.

A number of downtown Milwaukee buildings are currently in the process of seeking historic designation, including the former Marshall & Ilsey Bank Building at 770 N. Water Street and the former St. Catherine’s Residence for Young Women at 1032 E. Knapp Street.

Milwaukee Buildings Looking for Historic Status

Other buildings, in recent years, have applied for local historic designation and been denied by the Common Council. The Marcus Center was determined to be ineligible for a number of reasons, primarily 1990s replacements of original materials, which removed architectural integrity. In December of 2020, the Forest Home Library was rejected for historic designation after a vigorous debate.

It is expected that more mid-century buildings will be considered for preservation and historic status. Reaching historic status would make the Mitchell Park Domes eligible for state and federal historic tax credits and aid in the financing of needed repairs. The Milwaukee County War Memorial Center is another excellent example of the city’s history that may be deserving of historic designation. According to Jeff Joseph, interviewed for the article, “If we lose the history of modern buildings, we lose the history of our innovation.” This is a strong reminder to all working to preserve Places the Matter. 

Read the full article on JSOnline

Contact House Representatives to Strengthen Historic Tax Credits

Urge your House Representative to cosponsor Historic Tax Credit improvement legislation!

Reprinted from National Trust for Historic Preservation Newsletter | April 5, 2021

On April 1, Representatives Earl Blumenauer (D-OR) and Darin LaHood (R-IL) introduced a new version of the Historic Tax Credit Growth and Opportunity Act (HTC-GO) in the House of Representatives. The legislation includes temporary tax provisions to bring relief to projects impacted by the pandemic, and contains permanent provisions that add value to the federal Historic Tax Credit (HTC), improve access to the credit, and increase investment in smaller rehabilitation projects. The introduction of companion legislation in the Senate is expected soon.

The HTC is a proven tax incentive for both revitalizing historic community assets and supporting economic development and recovery. Please contact your House Representative and encourage them to cosponsor the HTC-GO.

What’s in the new version of the HTC-GO legislation?

Temporary Provisions

Developers and building owners are experiencing challenges in rehabbing historic buildings. The financial markets have slowed to a crawl, making it difficult for projects to access capital and stalling complex historic real estate developments. The increased volatility in the market and project risk is forcing banking institutions to decrease their loan frequency and the overall amount while tightening underwriting requirements. Increases in material and construction costs and an uncertain tenant market have further impacted potential developments. As a result, many projects have stalled or are no longer feasible.

The HTC-GO legislation temporarily increases the rehabilitation credit (IRC § 47) to address projects impacted by the pandemic. 

• This provision increases the HTC percentage from 20% to 30% for 2020 through 2024. 

• The credit percentage is phased down to 26% in 2025, 23% in 2026, and returns to 20% in 2027 and thereafter. 

Permanent Provisions

The following provisions would make important changes to the HTC to encourage more building reuse and redevelopment nationwide and would be particularly impactful for small, midsize, and rural communities. These provisions would not only make the credit easier to use and more historic properties eligible, but it would also enhance the value of the HTC and make the credit easier to use to create affordable housing. 

• Increases the credit from 20% to 30% for projects with less than $2.5 million in qualified rehabilitation expenses, making it easier to complete small rehabilitation projects. 

• Lowers the substantial rehabilitation threshold, making more buildings eligible to use the HTC.

• Eliminates the requirement that the value of the HTC must be deducted from a building’s basis (property’s value for tax purposes), increasing the value of the HTC and making it easier to pair with the federal Low-Income Housing Tax Credit.

• Makes the HTC easier to use by nonprofits for community health centers, local arts centers, affordable housing, homeless services, and others by eliminating IRS restrictions that make it challenging to partner with developers.

To get a fact sheet about HTC and HTC-GO, visit the Preservation Leadership Forum's Resource Library. 

Trust News: SHPO Historic Tax Credits Workshop

On March 26, the Wisconsin State Historic Preservation Office held a virtual workshop for Historic Tax Credits. The following announced were issued during the event:

• 2021 WAHPC Virtual Spring Conference will be held virtually via Zoom April 23-24. Registration and full agenda on the WAHPC website

• The US Congress is considering a temporary increase in the federal tax credit from 20% to 30%

• A new museum for the Wisconsin Historical Society is moving forward

Liz Petrella from the National Park Service presented information about preparing a successful Federal Historic Tax Credit Application, emphasizing that, for now, all documents must be submitted as hard copies in duplicate. However, the NPS is planning to transition to electronic submissions in the future. The National Archives will not be accepting hard copy submissions after December 31, 2022.

Marc Zettler, also a Wisconsin Trust for Historic Preservation Board Member, gave a detailed presentation on how to properly conduct a window survey for a historic property, including a brief history of window types and glazing in the United States, how to evaluate existing conditions, the importance of photographic documentation, and how to consider repairs versus replacement within the Secretary of Interior standards.

The Trust works in tandem with the Wisconsin State Historic Preservation Office (SHPO) and supports their efforts and events like this workshop. With a vast array of resources and supporting personnel, the SHPO is considered be the primary resource for preservation efforts in the state. Visit the SHPO online for more details.

The Annual Report on the Federal Historic Preservation Tax Incentives Program is here!

In March, the National Park Service released the Annual Report for Fiscal Year 2020 summarizing the year’s activity across the Federal Historic Preservation Tax Incentives Program. The 20% Federal tax credit, coupled with Wisconsin’s 20% State historic tax credit, helps property owners rehabilitate historic buildings.

Governor’s Mansion Inn and Café. Madison, WI

Photo: David Waugh

The report includes a summary of select projects across the nation, including a showcase of the revitalized Governor’s Mansion Inn and Café in Madison, Wisconsin.

According to the report, Wisconsin approved 34 new projects in 2020 (based on approved Part 1 applications) and 22 project completions worth over $220 million in Federal rehabilitation tax credits. Wisconsin is 13th in the nation in the value of tax credits since 2016, an impressive standing when considering the size of our state. In addition to preserving historic places, preservation generates jobs and economic activity throughout Wisconsin.

Download the report below to read the state-by-state project activity summary highlighting estimated qualified rehabilitation expenditures and five year cumulative totals..

The Federal Historic Preservation Tax Incentives Program, administered by the National Park Service in partnership with the State Historic Preservation Offices, is the nation’s most effective program to promote historic preservation and community revitalization through historic rehabilitation.

An Update: Historic Tax Credit Programs

(it's good news...)

Over the course of the past year preservationists have been working endlessly to defend and retain the Historic Preservation Tax Credit Programs.  Thanks to the work of many, both the federal and the state programs have survived the threats of the recent federal tax reform and a state budget line item veto* from Governor Walker (*so far!).

STATE OF WISCONSIN STATE CREDITS:

Below are links to last week's coverage of the Wisconsin State Legislature approval of the new $3.5 million per project cap.  This cap, while less than ideal, is a huge relief when compared to Governor Walker's $500,000 line item veto of the proposed $5,000,000 cap. The bill passed in the state Senate 29-3 and unanimously in the Assembly. It now heads back to Governor Walker to sign into law.  Fingers crossed that the figure will remain untouched.

LINKS TO WISCONSIN MEDIA COVERAGE:

Wisconsin Business Journal

Urban Milwaukee

STATE OF THE FEDERAL CREDITS:

The Federal Program was threatened in December when the House voted to abolish the decades old incentive program.  The final bill passed in late December kept the Historic Preservation Tax Credits however pushes the timing for receiving the funds from a project’s opening to over the course of the first five years of operation.  We plan on diving further into the potential consequences of this shift of timing of the receipt of the credits in another post.

Read more about the Federal Program status here:

Chicago Tribune

We can collectively say this news is a huge relief for Historic Preservation and economic development in the US.  If you're new to this topic or brushing up on the programs below are a few points to consider.  Here at the Trust we field many questions about the program and are outlining frequently asked questions below in an overview.

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WHAT ARE WISCONSIN'S HISTORIC PRESERVATION TAX CREDITS?

Historic Preservation Tax Credits are crucial to supporting economic development in Wisconsin.  These programs create new jobs, increase property tax revenues and grow communities across the entire state.

Despite the indisputable value of these programs there are still many people unaware of the programs or misinformed about the mechanics.  If you're like us you may face many questions about the basics of the tax credit programs.  When out in the field as a design professional or when interacting with family or friends it's surprising how many people are unaware of the existence of these valuable programs.  Many building owners are unsure if their projects would qualify or if it's worth the time to navigate the application process. Experienced developers as well as those just beginning to research how they will be able to create/recreate a historic project have questions.  Shoot us any you have and we'll continue to tackle the unknowns.

There is a range of people's exposure to the details of the programs.  We're going to sort the questions from people who've never heard of the program to the savvy project owner who has benefited from the programs on past projects.

WHAT ARE HISTORIC TAX CREDITS?

If you're planning work on a historic building you may be eligible for a tax credit issued from the government.  There are programs available for rehabilitation of historic properties from both the Federal Government as well as the State of Wisconsin.

For commercial projects presently the federal program returns 20 percent of the cost of rehabilitating historic buildings to owners as a federal income tax credit. While the State of Wisconsin program returns 20 percent of the cost of rehabilitating historic buildings to owners as a Wisconsin income tax credit (with an anticipated $3.5 million cap in effect starting in July).

DOES MY PROJECT QUALIFY?

Is your project currently listed on the National Register of Historic Places? If not you can pursue listing the building.  To qualify for the tax credits the historic listing can be either an individual property listing or its possible that your project will qualify if it's included within a historic district recognized by the National Register.  The National Register is maintained by the National Park Service under The Department of the Interior. Head over to their search engine if you're not sure about your building's present status.

Building Type: For eligibility under the current programs there are two types of listings that determine which tax credit program your building qualifies for - it'll be either categorized as a historic home or a historic commercial building..

We listed the commercial building benefits above as these projects are the majority of tax credit recipients. If you’re the owner of a historic home presently the historic homeowners' tax credit is a dollar-for-dollar reduction in what you owe in Wisconsin income taxes. The amount of the credit is 25 percent of your costs of carrying out eligible work. If your credit is larger than the amount that you owe in state income taxes, you can carry the unused balance into future tax years (up to 15 years into the future) until the credit is used up. The best resource to answers to your questions about the State's program is the Wisconsin Historical Society.  Here's a link to their site including a very informative FAQ section for both building types.

IS THIS PROGRAM A GOVERNMENT HAND OUT?

NO! It's essentially an incentive program to help offset the high initial costs of rehabilitating historic structures.  There are so many reasons rehabilitation makes environmental, cultural, social and economic sense.  Bottom line is the reuse of historic buildings strengthens our communities.  If you're interested in learning more about specific metrics about the quantifying of these aspects such as existing embodied energy or the increased quality of life studies we're planning a post to link to some of our favorite studies.  Until then one easily digestible read for you to understand the economic importance of these programs is this study conducted by Baker Tilly and UWM's School of Architecture and Urban Planning's Historic Preservation Institute.  It's a recent in-depth economic analysis of projects that received tax credits and very telling about the value of the state program.

We’ve pulled out a few highlights incase you're clicking over and feeling the TL;DRs.

Myths about the program we've heard over these years followed by excerpts invalidating these misunderstandings pulled from the study's Executive Summary:　

MYTH: ONLY SAVVY BIG CITY DEVELOPERS BENIFIT FROM THESE GOVERNMENT PROGRAMS

"The projects span across the state with an increasing emphasis on communities with populations of under 100,000 over time (69.4% in 2016)."

MYTH: THIS STATE OF WISCONSIN HANDOUT IS A HUGE DRAW ON THE STATE BUDGET

"Repayment of taxpayer funds in full by the beginning of 5 years of operations. Based solely on values subsequent to this repayment, the state receives 110% over its initial investment through year 10 of the projected assessment period based on a 3% annual trending rate."

MYTH: THIS PROGRAM IS DESIGNED TO ONLY HELP THE FEW

"During the construction period these projects are anticipated to generate over $683 million in direct economic output ($719 million overall).√√Direct new construction jobs of 9,882 based on 1,820 hours per job/year; (10,950 total).√√Total tax impact of $50.5 million in direct WI based construction activity - with overall tax impact of $92.4 million"

"Once placed in service the projects are projected to provide for roughly $149 million in direct economic output ($162 million overall). √√Direct permanent full-time equivalent (FTE) positions of 4,376 based on 1,820 hours per year; (4,700 total). √√Total tax impact of $25.9 million in direct operations activity with overall impact of $35.2 million annually."

"Cumulative increase in property tax payments of 633% post completion is anticipated ($19 million versus $3 million). √√Increases in school tax payments of $5.39 million or 592%. √Increases in WI Technical College receipts of roughly 532%."

WHY ARE TAX CREDITS IMPORTANT TO WISCONSIN?

These programs help create jobs both permanent and construction.  These projects add revenue to any community in which they reside with increased property tax revenues and income tax revenue.  The programs provide needed funds to encourage the retention of our historic places and are invaluable to Wisconsin’s economy. Below is a quote to another link to an opinion piece in the Journal Sentinel that is worth a read.

"What if I told you our state has an economic development tool that over a three-year period projects to generate more than $600 million in economic output, more than $90 million in new state tax revenue and more than 10,000 new jobs?" -Jim Villa via Journal Sentinel

ARE THE FEDERAL TAX CREDITS AT RISK UNDER THE CURRENT ADMINISTRATION?

If you’re new to the historic tax credit program take a few minutes to watch this video from the National Trust. Created by President Reagan's administration this program has been crucial to preservation across the country.

Thankfully while threatened under the recent rewriting of the tax code the advocacy of many has retained the Federal 20% tax credit.  There's a lot of great information from the National Trust here including talking points and examples of projects if you're interested in becoming more involved as an advocate yourself.  There's new uncertainty with the corporate tax rate cut from 35% to 21%.  That may lessen the appetite for jumping through the hoops of the program. "Under the existing system, developers use the credit to offset their federal corporate tax liability. Or they can transfer the credit to corporate investors in exchange for a share of the ownership." (Blair Kamin, Chicago Tribune)

IS THERE A NEW PER PROJECT CAP OR A NEW YEARLY COMPETITION TO EARN NEW CREDITS IN WISCONSIN?

Governor Walker indicated his interest in placing a per project cap on new projects beginning in 2018 by adding a $500,000 per project cap veto in his budget proposal.  The per project cap remains in the budget now passed by Wisconsin Legislator with the number raised to $3.5 million per project.  While a cap is not ideal, this solution is considered a victory to keep development moving forward in Wisconsin.  Many groups are thankful that the rumor of an introduction of a competition to determine which projects will receive funding in any given year did not become included with the changes.  Check out this article outlining why the program worked so well. 

HOW AM I ABLE TO HELP SUPPORT THE EFFORT TO KEEP THESE PROGRAMS IN PLACE BOTH HERE IN WISCONSIN AND NATIONALLY?

Attend local preservation group meetings, donate to organizations (like ours!!!) to help offset the costs of research supporting these dynamic programs that are currently scored statically and require lots of research footwork to keep in place, engage in conversations with your government representatives about the importance of these programs and keep in touch with activists fighting to increase public understanding. We’d also encourage you to be aware of and patronage businesses benefiting from the tax credit awards. We’ve created a map of past projects.  Click below to see if there's a project near you.  The program has been a catalyst for renewal in Main Streets across Wisconsin.

As always let us know your thoughts and other questions you may have! 

New State Law Tinkers with Local Historic Preservation Policies

The Pinkus-McBride commercial building anchors a corner of a six-pointed intersection in Madison, and provides a sense of the neighborhood's history while a new apartment building rises behind it.

A new state law in Wisconsin places new provisions on local historic preservation ordinances, but does not include proposed changes that would have disabled the ability of cities, towns and counties to provide long-term protection for important historic places. We wrote about the proposed Bill here. 

The new law requires Wisconsin municipalities (counties, cities, towns) to hold a public hearing on any proposed historic designation for an individual property or historic district, and to notify all property owners about the public hearing by paper mail. The law also provides for an appeal process, by which any property owner who is "affected by a decision of" a Historic Preservation Commission may appeal the decision to the County or Town Board or city Council, who may overturn the Commission's designation by a simple majority vote.

The law leaves intact the ability of counties and towns to designate landmarks and historic districts under powers of zoning that have been affirmed by the US Supreme Court in several cases. It does, however, require changes to some municipal preservation policies that currently require a 3/4 super-majority vote of the Board or Council to overturn a decision of the Commission. It leaves intact the ability to designate historic properties over the objection of the current owner. This was perhaps the most critical provision of the proposed bill. We argue in a previous post that historic preservation is a long game, and that allowing any owner, no matter how briefly they own the property, to opt out of local historic guidelines would lead to the rapid erosion of historic places in many Wisconsin communities.

The Wisconsin Trust for Historic Preservation lobbied, alongside the National Trust for Historic Preservation, the Milwaukee Preservation Alliance, other organizations, and several town mayors, for the wholesale removal of the section of the Bill dealing with local Historic Preservation laws. We were successful to the extent that the most dramatic provisions of the bill were amended before it became law.

AB-586 - Highlights from Committee Hearing on Bill That Would Devastate Local Preservation Ordinances in WI

The Assembly Committee on Housing and Real Estate held a public hearing Thursday on several bills, including AB-568 that would make local historic preservation ordinances in Wisconsin optional.

WTHP registered in opposition of the bill because it includes clauses that would require the consent of property owners before properties could be designated as historic places under local ordinances. They would also make design standards for historic properties and historic districts unenforceable.

The thread that ran through much of the testimony against AB-568 was that municipalities prefer to retain local control of their own territory, and that a statewide remedy for regulating cultural places is a blunt instrument that can not address the varying needs of Wisconsin communities to determine their own character. Testimony in favor of the bill came mostly from real estate and rental management organizations, and were focused on property rights and economic hardship arguments.

Jail Alley - Mineral Point

One of the bill's sponsors, Rep. Rob Brooks (R-Saukville) testified that the bill is not intended to be retroactive. He said the "owner consent" provision would apply only to historic designations going forward, but would not be applicable to properties already designated. The draft of the bill that was available on legis.wisconsin.gov prior to the hearing did not include a retroactivity clause. 

Rep. John Jagler (R-Watertown), Chair of the Committee, said he heard from representatives of Watertown in his 37th Assembly District, and also from the communities of Columbus and Waterloo that they have "grave concerns about this [owner consent] provision." They are concerned that "efforts to revitalize their downtowns would be greatly hampered by this if its voluntary." 

Curt Witynski, Assistant Director of the League of Wisconsin commented that the bill "strips municipal power in many ways," including the power to regulate historic and cultural resources that are important to community identity and character. 

Larry McDonald, Mayor of Bayfield testified that the "owner consent" provisions of AB-568 "particularly affects the city of Bayfield", which he called the "economic powerhouse of that corner of the state." "We have built a market," McDonald said, "to show ourselves off as a historic waterfront community," and that "the Chamber of Commerce and Visitors' Bureau promote the historic quality of our town." Bayfield uses a triple bottom-line model to measure their success and quality of life. It requires that residents are taken care of, businesses are profitable, and environment (including the cultural character) is well-protected. "Our community" he said "wants to be held accountable. We have a tremendous concern about what it would do to our economy, and we really believe it would really devalue the surrounding historic neighborhoods and buildings. We've got a brand, we've got a look, and we've got a community that's going to ask you to not impose any of the historic or aesthetic portions of this bill."

Shawn Reilly, Mayor of Waukesha testified against the provisions stating that "Waukesha has a very successful historic area. The downtown is pretty much all historic." Reilly articulated the adverse impact that the provisions would have on the state's Certified Local Government (CLG) program. 

Steve Cummings, Mayor of Oshkosh, testified that AB-568 usurps local control of quality-of-life issues. quality of life...sees local regulation of housing stock as "equity protection."  Healthy neighborhoods and economic development go hand-in-hand. "If you want companies to locate in your city, and bring their workers to your city, you have to have healthy neighborhoods. You have to have quality-of-life, and quality-of-life means healthy neighborhoods."

John Decker, Evansville attorney, and president of the Wisconsin Association of Historic Preservation Commissions, called the owner consent provisions "reverse spot zoning."  The provisions, he said "delegate local legislative authority to property owners simply on the basis that they don't consent. They can withhold their consent for a good reason, for a bad reason, or no reason at all." 

Brenda Wood representing the City of MKE said the bill "strikes at the heart of what local government does," including protecting the health, safety and welfare of its citizens, improving and maintaining neighborhood conditions, decreasing blight, increasing investments and economic vitality throughout the city. Protecting and preserving housing stock." she said, "is a benefit to stabilization, homeowner and taxpayer investment, and to overall health of city's tax base."

One point of disagreement articulated by Rep. Brooks was that his information on how the bill would affect the state's CLG program differed completely from what he heard from testimony.

According the the Wisconsin State Journal, Brooks said after the hearing that they would take input from the hearing and "go back to the drawing board."