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Recycling Surplus Public Properties

Ruminations: 30 Years of Recycling Surplus Properties

In 1979, at the behest of then-Attorney General Rufus Edmisten, a modest bill was passed by the North Carolina General Assembly to allow local governments to sell surplus historic properties to nonprofit preservation organizations at a negotiated price. This little bill has had a mighty impact.

Typically, local governments must dispose of publicly owned property through a cumbersome bid process. When historic property is placed on the auction block without protective covenants, it runs the risk of being sold to a buyer who doesn’t respect its value and integrity. If the price goes too high, then demolition may be inevitable.

Preservation North Carolina’s work to save a pair of twin historic houses in Goldsboro led to the legislation. The Weil Houses, a pair of Victorian houses owned by a prominent Jewish family, had been acquired by the county for demolition to make way for parking lots for struggling downtown Goldsboro (as if more parking would save downtown!). Bowing to political pressure from a group of young activists, the county commissioners gave PNC six months to find a buyer for one of the houses, the Henry Weil House. When, to their surprise, we found a buyer, the county commissioners by a 4–3 vote rescinded their agreement to sell.

The commissioners who opposed the sale justified their change of heart by noting that the sale of property would still have to go through a public bidding process. Authorizing the sale of the Henry Weil House wouldn’t necessarily guarantee that PNC would end up as its owner. In the bidding process the house might be purchased by a third party for demolition. So we went to work to get legislation permitting a negotiated price without bid, so long as the properties are placed under preservation covenants. The legislation helped save the Henry Weil House and, three years later, the neighboring Solomon Weil House. Both Weil Houses have been lovingly restored, and downtown Goldsboro and the surrounding neighborhood are experiencing a revival under the aegis of the Downtown Goldsboro Development Corporation, a Main Street program.

The legislation has been used over and over by PNC and other local preservation organizations to acquire unused publicly owned historic properties. Sympathetic buyers have been found for important historic buildings, such as old schools, city halls, libraries, hospitals, and even homes in public ownership. Local governments have sometimes been so happy to get rid of the properties— and the problems they represent—that they have sold important properties to PNC for as little as one dollar. These sales have taken place in full public view, and the local governments have ultimately benefited significantly from the increases in tax base.

The City of Sanford sold PNC its former city hall, sitting vacant and pigeon-infested, for $1. After two years with no buyer, we wondered whether we had been given a “white elephant.” Then, Progressive Contracting Company, a Maryland-based company specializing in historic rehabilitation, entered the picture. Progressive was looking for a place to expand into North Carolina, and the old city hall suited its needs beautifully. The result is a classic economic development coup. Progressive Contracting undertook a signature renovation and brought its specialty business to Sanford. Progressive also bought the neighboring historic buildings and renovated them for expansion. Financially the City of Sanford has done very well with its $1 sale, and so has PNC.

Over the last thirty years, at least thirty unneeded (and often unwanted) historic public properties have been purchased and resold by PNC under this legislation, resulting in more than $50 million in historic rehabilitation!

Vacant schools have been converted into affordable housing, arts facilities, and even a charter school. A town hall has been adapted into an elegant single-family home. Originally destined for demolition, a deteriorated early home donated to a local library has been renovated as a bed-and-breakfast. Rosenwald schools have been renovated as community centers.

Are there historic surplus public properties languishing in your community? If so, please let the regional director in your area know—or contact me. (See Page 2 for contact information.) This modest legislation has ended up making a huge difference for North Carolina. But then, that’s par for the course in preservation!


Myrick Howard is President of Preservation North Carolina

 
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