December 1, 2017 Historic Preservation Fund — original pdf

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1 MEMORANDUM TO: Budget Office FROM: Liana Kallivoka, PhD, PE, Assistant Director Austin Parks and Recreation Department (PARD) DATE: September 8, 2017 SUBJECT: PARD Historic Properties Eligible for HOT Funding The Budget Office requested a list of PARD historic properties that may be eligible for funding through Hotel Occupancy Tax (HOT) under Chapter 351 of the Texas Tax Code. This code allows funding to be allocated for “historical restoration and preservation projects or activities or advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums.” This provision allows for expenditures on historic sites “at or in the immediate vicinity of convention center facilities or visitor information centers; or located elsewhere in the municipality or its vicinity that would be frequented by tourists and convention delegates.” PARD has identified potential historic preservation projects, personnel, and general fund expenditures that may be allowable expenditures under Chapter 351 of the Texas Tax Code. More detail about the proposed capital expenditures is provided in this document, but PARD wishes to emphasize that all municipal capital projects take time to mobilize due to contracting and procurement. Additionally, project timelines may allow for community engagement. As a result, capital projects may span multiple fiscal years from inception to completion. Following is a summary of PARD historic preservation projects and allocations that could be addressed in 2017-2018. Expenditure Proposed HOT funding amount General Fund expenditures related to temporary staffing at historic sites $279,070 2 1/2 Temporary FTEs (project coordinator, program coordinator and marketing representative) to implement historic preservation capital projects and market historic sites to visitors and conventioneers. $211,730 HOT-eligible Historic Preservation Projects $8,500,000 TOTAL $8,990,800  2 Explanation for expenditures 1. General Fund expenditures— PARD was asked to determine general fund expenditures that could be offset with HOT. Given the extremely tight timeline for this determination and the need for extensive legal guidance, PARD is putting forward a) the temporary staffing needs associated with operating museums in the immediate convention center area and downtown area ($104,070); and b) estimated maintenance expenses directly associated with maintenance of a select number of historic sites located in the immediate convention center area and elsewhere that are visited by tourists and convention delegates ($175,000). While PARD is an important partner in supporting the tourism infrastructure of our city, the department will need more guidance and time to extrapolate the costs associated with attracting, documenting, hosting, and accommodating out of town visitors at the other facilities managed by PARD. Site Temporary Staffing and Maintenance Costs Temp employees—Old Bakery Museum and Emporium $45,497 Temp employees—O. Henry Museum $31,872 Temp employees—Dickinson Museum $26,701 General maintenance expenses—Old Bakery, O. Henry, Dickinson, Mayfield, Oakwood $175,000 TOTAL $279,070 2. Personnel for implementation of historic preservation and restoration projects—PARD’s historic resources are certainly in need of investment. In order to implement these capital projects, PARD is requesting two and a half additional temporary staff members to implement HOT-eligible historic preservation projects. Funding a temporary project coordinator ($94,190) and program coordinator ($72,650) will allow PARD to implement the projects in a timely manner and not divert staff resources away from PARD’s resident and community focused park projects. Given that these projects will be in development and under construction for a term longer than 2017-18, it is the department’s expectation that the funding for these positions would extend a minimum of two years. In addition, funding a part-time temporary marketing representative ($44,890) will enable PARD to actively market the historic sites to visitors and conventioneers. 3. HOT-eligible Historic Preservation Projects— Should HOT funding be provided to PARD, the department will formalize a spending plan for the capital expenditures. The development of a spending plan allows for the department to evaluate the readiness of projects, confer with partner organizations, ensure legal compliance with state and local statues, and strive for an equitable distribution of resources. As previously noted, all municipal capital projects take time to mobilize due to contracting and procurement. Additionally, project timelines may allow for community engagement. As a result, capital projects may span multiple fiscal years from inception to completion. The locations of the proposed sites are indicated as follows: • IV or Immediate Vicinity: Located in the immediate vicinity of convention center facilities or visitor information centers • TC or Tourist and Conventioneers: Located elsewhere in the municipality or its vicinity that would be frequented by tourists and convention delegates 3 Project or expenditure HOT funding proposed Estimated project cost Historic designation and visitor justification Status Note Barton Springs Bathhouse Rehabilitation *location TC $1,500,000 $5,000,000 Historic Designation: State Antiquities Landmark, National Register of Historic Places, City of Austin Historic Landmark Visitor justification: More than 80,000 out-of-town visitors were documented through point-of-sale data in 2016 Design process to begin Fall, 2017 Full rehabilitation of historic bathhouse. Barton Springs Conservancy is fundraising for a portion of funding, but additional funding is required. O. Henry Museum at Brush Square Restoration Phase II *location IV $750,000 $940,000 Historic Designation: National Register of Historic Places, City of Austin Historic Landmark Visitor justification: More than 8,500 visitors with non-residents as nearly 70% of total visitors. The O. Henry Museum and the Brush Square Museums marketed in Visit Austin guide. Design and Phase I restoration of $190,000 beginning Fall, 2017 Initial design phase to begin Fall, 2017 and be followed by Phase I implementation; Phase II is currently unfunded, but could be rolled into Phase I should funding be provided.  4 Project or expenditure HOT funding proposed Estimated project cost Historic designation and visitor justification Status Note Oakwood Cemetery and Annex Historic Gate Restoration and Fencing Improvements *location TC $500,000 $500,000 Historic Designation: National Register of Historic Places, City of Austin Historic Landmark Visitor Justification: Oakwood Cemetery is the city’s oldest municipal cemetery; Close proximity to the Texas Capitol, Bob Bullock Texas State History Museum, Blanton Art Museum, and the UT campus. Recommended by Travel Channel, Trip Advisor, Texas Highways among many other tourism and travel-related websites. Further, the Oakwood Cemetery hosts numerous visitor and conference tours. Pending funding, could be completed by Summer, 2018 Includes historic entry gate restoration and replacement of approximately 9,300 linear feet of chain link with historically appropriate fencing. Fulfills goal of Historic Cemetery Master Plan. Downs Field Grandstands Restoration and associated improvements *location TC $550,000 $550,000 Historic Designation: Recorded Texas Historic Landmark Visitor justification: Historic baseball field and grandstands are major historic athletic attraction for role as home for Negro League baseball. Significant players and visitors include Jackie Robinson, Willie Wells, Satchell Paige, Toni Rice. Pending funding, could be completed by Winter 2018 Includes electrical upgrades, roof replacement, rotten wood replacement, ADA and code upgrades, expanded press box. Six Square and Rosewood NA are major non-profit partners.  5 Project or expenditure HOT funding proposed Estimated project cost Historic designation and visitor justification Status Note Elisabet Ney mechanical replacement, climate control improvements and new mechanical room *location TC $1,250,000 $1,250,000 Historic Designation: State Antiquities Landmark, National Register Historic Places, City of Austin Historic Landmark Visitor Justification: Of the more than 22,810 visitors to the Ney Museum in 2016, out-of-town visitors comprise 43% based on sign-in logs, visitor sampling and questionnaires. In the last 15-month period, records indicate that visitors came from 162 distinct zip codes outside of the Austin area, including 18 countries. Staff reports that 50% of advance-booked site tours are from out of town visitors. Project could possibly be incorporated into current restoration phase, which is scheduled to be completed by Spring, 2019 The museum requires a new mechanical system, which would provide stable interior climate control for the collection and would allow for the removal of the visible rooftop unit, which negatively impacts the front façade. The project cost includes the constructing a mechanical space in the basement. Norwood Historic Estate Restoration *location TC $750,000 $6-7 M Historic Designation: City of Austin Historic Landmark Visitor Justification: Upon completion of restoration, the Norwood House will become a premier destination and event facility. Overlooking downtown and Lady Bird Lake, the historic estate is along Riverside Drive, a major entry corridor from ABIA and I-35. Design; Construction drawing are expected to be finalized in 2018. The project will include private funding and will likely not begin before FY 2020-21 at the earliest. PARD is supporting efforts of Norwood Park Conservancy. Project includes rehabilitation of 1800 sq. ft. historic house, terracing, restored gardens; new accessory structures to support operations as a historic civic and visitor asset.  6 Project or expenditure HOT funding proposed Estimated project cost Historic designation and visitor justification Status Note Seaholm Intake Building— Design Phase and Phase I *location IV $2,750,000 $9-12 M; Full cost to be determined Historic Designation: National Register of Historic Places Visitor Justification: Upon completion, the historic Seaholm Intake Building will become a premier destination and hub for visitors with food concessions and programming. The building is sited at the southern end of the Seaholm District, along the north shore of Lady Bird Lake and along the Town Lake Hike and Bike Trail. Design Phase would result in construction documents and Phase I improvements to bring utilities and infrastructure to building and restore building envelope. Historic industrial waterfront building will be transformed into civic asset and visitor attraction. Planning is currently underway in partnership with The Trail Foundation and the Austin Parks Foundation. Zilker Clubhouse—Design Phase *location TC $250,000 Full cost to be determined Historic designation: National Register of Historic Places Visitor Justification: The 1934 historic clubhouse hosts innumerable events throughout the year that bring visitors to the city for events such as weddings, family gatherings and small organizational events. The terrace provides one of the most iconic views of Austin’s Skyline. Design Phase would result in construction drawings with full cost estimates for restoration and rehabilitation. Historic building requires full restoration, including new MEP systems, ADA upgrades and interpretive signage.  7 Project or expenditure HOT funding proposed Estimated project cost Historic designation and visitor justification Status Note Fiesta Gardens— Design Phase *location TC $200,000 Full cost to be determined Historic designation: The 1966 site is more than 50 years old and is being reviewed for eligibility for listing in the National Register of Historic Places. Visitor Justification: Designed and constructed as a major tourism attraction along the south shore of Lady Bird Lake, Fiesta Gardens hosts events that draw out of town visitors including family friendly festivals, weddings, and family gatherings. Examples of festivals at Fiesta Gardens that host more than 1,000 attendees include the Texas Craft Brewers Festival, Texas Veg Fest, Hot Sauce Festival, Austin Pride Festival, and Ice Cream Festival. Design Phase would result in construction drawings with full cost estimates for restoration and rehabilitation. Fiesta Gardens is in need of full renovation as supported in the Holly Shores Master Plan. The 1960s complex has recently become eligible for review as a designated historic resource. The complex hosts numerous festivals each year and plays a strong role in the tourism infrastructure of our city. TOTAL $8,500,000