Cape Historic Preservation Commission lobbies against tax credit changes in Missouri

The Cape Girardeau Historic Preservation Commission will add its voice to the protests against proposed limits on and the possible demise of Missouri's historic preservation tax credit program.

Missouri lawmakers are debating whether and how to impose restrictions on a multitude of economic development tax credits as growth in state revenue lags at the same time tax credit claims are growing rapidly.

The historic preservation credit is one of the state's largest. There is no limit on the amount of credits that can be awarded for qualifying work on recognized historic buildings; $140.1 million worth of the credits were redeemed in the fiscal year that ended June 30.

During a discussion of the credit program Wednesday, the city commission heard from preservationist Terri Foley that limits on the program would cripple a successful economic development effort. By combining the state credit with a federal credit, owners of commercial buildings can defray 45 percent of qualified expenses.

"If this bill gets passed, the rehabbing you are seeing will stop," Foley said.

Missouri's unlimited state credits are cited by preservationists as the reason that Missouri building owners claimed more federal preservation credits than any other state. Even when an investor in a tax-credit supported project loses money, as Prost Builders of Jefferson City did when it saw the Marquette Building sold in a foreclosure sale, the investment is worth it, Foley said.

The tax credits meant the Marquette, which was on the verge of being demolished, was preserved, she said. "They were on a very strict budget," Foley said of Prost. "When they didn't get everything leased, that hurt them."

Commission chairman Bill Eddleman said he needs firm information about the tax credit programs to make his case. During a workshop last week, preservation consultant Karen Bode Baxter presented figures she said support arguments the credits have a strong economic return of up to $2.50 for every dollar invested.

"If it is indeed generating that much money for every dollar spent, that is a winner," Eddleman said.

The commission also approved an application to place the buildings at 1105 and 1107 Broadway in Cape Girardeau on the National Register of Historic Places. The two buildings, which are in the streamline modern style, were built in 1958 by Eddie Erlbacher. The buildings house Courtesy Cleaners and Rhea Optical. The commission was required for the application to the national register to move ahead.

rkeller@semissourian.com

388-3642

Pertinent addresses:

401 Independence, Cape Girardeau, Mo.

1105 Broadway, Cape Girardeau, Mo.

1107 Broadway, Cape Girardeau, Mo.