New look gives building new life

Birmingham Business Journal

December 15

In a matter of weeks, Vazda Studios will be moving into its new home at the old Rogers Trading Co. building in downtown Birmingham.

And in a matter of months, developers Corporate Realty Associates Inc. and Intermark Group Inc. will find out if they will receive a tax credit from the National Park Service for renovations to the building.

If granted, the developers stand to gain a 20 percent credit on their federal income tax from any renovations done to the building.

But, as with anything, it's always easier said than done. Strict guidelines and requirements set forth by the National Park Service, a part of the U.S. Department of Interior, had to be met.

According to Linda Nelson, the historic preservation consultant on the project, developers did everything in their power to make sure every requirement was fulfilled.

Geoff Golden, president of general contractor Golden & Associates Construction LLC, said his company had worked on several residential loft projects planned for the Rogers building and quickly realized the difficulty of building residential in the wide-open square space, originally built in 1928 for Crawford's Auto Shop.

"This was clear to me, it needed to be an office building," he said. "The historic nature of the building was an auto dealer and allowed for wide open space."

Golden said older warehouses with such spaces, which Birmingham has an abundance of, provide a flexible pallet when working with the tax credit because there is often very little to restore on the inside.

After failed residential plans by other developers, Corporate Realty and Intermark then came on board and decided to invest approximately $6 million to renovate the building into offices and try for the tax credit. Corporate Realty has received the credit on several other projects in Birmingham.

The Garrison Barrett Group Inc. was brought on as the architect for the project.

One of the first orders from NPS was to retain a concrete ramp, which was an original feature of the building and presented a problem of wasted space.

Golden said it turned out Vazda needed a place to house its mobile production studio van and equipment, and the ramp provided an ideal solution.

"In order for historic reuse projects to work, you have to have a tenant that can deal with the flexibility issues you have to deal with," he said.

Another requirement was that the building had to retain its original metal industrial windows. Golden was able to salvage a large majority of the windows by sandblasting and sanding them, and replacing the glass.

Another original feature of the building NPS asked to be restored were the two bay doors on one corner of the building, which were visible in early photos. Originally opened up for tire repair, the bay doors were eventually bricked up.

Developers complied with windows resembling bay doors which stretch nearly the entire height of the first floor, making it distinguishable from the rest of the building.

Golden said all the extra work put in the building is definitely worth the tax credit. He said the NPS was responsive on this project, but the extra efforts did lengthen the schedule because of having to wait for certain approvals.

Nelson said the application process can be lengthy, but in the end what you have is a building that is respectful of its original use, which is a mission of the National Park Service.

The Alabama Historical Commission (AHC) reviews the entire process in stages and then reports on it to the NPS in Washington.

According to the AHC, 33 properties have been certified by the NPS in the historic downtown Birmingham district in the last 10 years.

With an estimated $96 million of investment in historic buildings in downtown, $19.2 million were earned in tax credits during that period.

The first step, Nelson said, is to establish the appearance of the building and have the park service deem it eligible for the credit.

The second step is to provide a detailed plan of what exactly would be done to the building, both inside and out.

During this phase, Golden said, developers and the NPS can go back and forth regarding certain features until everything is agreed upon.

Nelson said by law the state and federal government have 30 days each to respond to any proposals, changes or additions.

The final step is a presentation to the NPS by the developers. Nelson believes the building will pass inspection because "the developers bent over backward" making sure every requirement was met.

Nelson warns potential developers to wait on construction until everything is finalized with the NPS or they run the risk of either losing the tax credit or having to redo something.

The flip side of not using the credit, obviously, is money, Nelson said, and having the freedom to build exactly what the developer wants or needs.

Chloe Mercer, tax credit coordinator at the AHC, said there is only one incentive the state offers for historic properties. Income producing properties can be assessed at a residential rate, rather than a commercial rate, she said.

Mercer said she believes that not many people know about the available tax credits, both at the state and federal levels, including many people in small communities that might not have the resources to keep track of what historical properties thy have.

But, she said, "In large cities, like Birmingham, preservation is an agenda."