Although the “Community Forum to Develop a Shared Vision for the Future of Historic Resources in Sierra City” scheduled for May was funded by the National Trust for Historic Preservation and is focused on historic preservation, one of the things we will discuss will be financial resources and incentives not only for historic preservation but for any type of project. The need to revitalize historic Sierra City drew these comments from a long-time local:
I've watched dozens of businesses come and go, mostly go. Gas stations, we used to have four gas pumps in town including a real gas station. There were three bars, the Buckhorn, the Buttes and the Zerloff . The Ore House was a pizza parlor open 7 days a week. There was Mini's I, which later became the Little Buck, then the Mountain Shadows and now the Red Moose. The Wells Fargo building was a restaurant for a while, an antique store, a coffee shop and an art gallery.
The schoolhouse was a tool rental, then a building material and hardware store, later an art gallery. We had two grocery stores, one where the County Store still is and the other was in the house next to the old gas station. Later the gas station and house became Tom's Chainsaw and Snowmobile shop. Doc and Edie's, the Sierra Buttes Inn, was a bar and dinner house. Even the Buckhorn was not just a bar but a restaurant too. Herrington's was open 7 or 8 months out of the year and was always busy serving dinners and filling up 22 cabins, it too had a gas pump. Kokanee Cabins at Loganville was open. The Sierra Chalet had rooms to rent and a gas pump. We had a pharmacy and pharmacist Charlie Ervin.
There was a small antique and pet store on Main Street just down from the Old Sierra City Hotel. The Yuba River Inn had cabins and served family style dinners to their guests and they had a pool. The Buttes Resort Motel has changed names and owners numerous times but has always been a clean and charming place. They too had a swimming pool.
Every month we had a potluck for the entire town at the Community Hall. We had a preschool at the community hall. I'm sure I'm missing some of the business that have come and gone. I'd love to see this town come alive again.
Heck, we even had a community orchestra and we performed for the public at the Community Hall.
Restoring older buildings is a wonderful goal, in addition a focus on getting properties cleaned up, yards, debris, trash, junk cars, would be a wonderful start to making town look better.
More than just cleaning and painting, we need more families and young people. I'm not sure what comes first, fixing up old buildings or finding a way and a reason for people to afford to live and raise their children here.
For buildings listed on the National Register of Historic Places or in a National Register Historic District as a contributing structure, 20% tax credits (both federal and state) are available for rehabilitation. For example, if you spend $100,000 on a rehabilitation, you can recover $20,000 in federal tax credits.
Sierra County is also in an area that qualifies for New Markets Tax Credits, which can be used to fund commercial and industrial developments, community facilities, operating businesses, and mixed-use projects – up to 39%.Historic Tax Credits can be paired with New Markets Tax Credits and Opportunity Zone incentives (https://www.novoco.com/periodicals/articles/pairing-opportunity-zones-incentive-and-historic-tax-credits). Examples of projects fundable with New Markets tax Credits include:
Healthcare & Community Facilities:Community health centers, dental clinics, behavioral health facilities, YMCA/YWCAs, and food banks.
Education: Charter school campuses, vocational training centers, and daycare/early childhood education facilities.
Manufacturing & Industrial: Food production facilities, breweries, metal fabrication shops, and high-tech manufacturing plants.
Commercial & Mixed-Use: Retail centers, supermarkets in food deserts, nonprofit headquarters, and boutique hotels.
Infrastructure & Development: Broadband expansion, solar energy projects, brownfield remediation, and for-sale single-family housing.
Tax credits can be used by nonprofit organizations by selling them to for-profit entities.
Finally, Sierra County is also in a Rural Opportunity Zone, part of the Trump Administration benefits to to stimulate investment in low--income areas, particularly in rural communities. These zones are designed to attract private capital to support local economic development, infrastructure improvements, and job creation. The recent legislative changes have enhanced the benefits associated with these zones. Making them more attractive for investors.
Key Benefits and Features of Opportunity Zones:
? Tax Incentives: The new tax law has introduced Qualified Rural Opportunity Funds (RQOFs), which provide significant tax benefits for investments in rural areas. These include a 30% basis step-up after five years and a reduced substantial improvement requirement from 100% to 50%making it easier for investors to meet the criteria for tax advantages.
? Investment Focus: RQOFs are aimed at various sectors, including affordable housing, infrastructure upgrades, and small business development. This focus is intended to address the unique challenges faced by rural communities and stimulate sustainable growth.
? Community Development: The Opportunity Zone program encourages investments that lead to long-term community benefits, such as improved local services, enhanced infrastructure, and increased employment opportunities. This is particularly crucial in rural areas where economic activity has historically lagged.
? Support for Local Initiatives: Various federal programs, such as the New Markets Tax Credit Program and the Community Facilities Grant Program, complement the Opportunity Zone initiative by providing additional resources and support for rural development projects.
All of these are available to attract investment and fund projects that can activate the community. They are all pretty sophisticated and typically require consultation with experts, but they are very real and worth millions of dollars,
Tom Butt, FAIA, LEED AP BD+C Principal Architect
ir Interactive Resources, Richmond, CA
