By: Bill Fitzpatrick, Past Board Chair at Preservation SC
June 30, 2024
Historic properties where Preservation SC has easements in place: Wilkins House in Greenville, Hester General Store in Dacusville, and Rose Hotel in York.
The Ask an Expert series features Q + A’s with people who are experts in a particular field or who have a depth of knowledge around historic preservation. We ask experts a variety of short answer questions and ask for their advice to Black preservation projects and leaders.
Would you be willing to be featured as an expert? Send us an email here.
| Q: Introduce yourself! Tell us a little about you. |
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| In 2010, when my business partner and I sold our company, we had to sign four-year non-compete agreements. Knowing that he and I would return at some future date to start a new business, I decided with this time in hand to travel to and then photograph South Carolina’s collection of National Register landmarks. There are over 1,500 such places. Why? I love history, travel, writing, and photography. If you travel the backroads of South Carolina you will collect experiences. The one I am about to share is why I am on the board of Preservation South Carolina. One July day I drove from my Greenville home to the town of Pacolet to meet with Moose Littlejohn, the only caretaker of the long closed Mulberry Methodist Church. Built at the end of the Reconstruction Era, the church is dilapidated and near collapse. When it goes, it will take 150 years of Black history with it. The prospect of losing Mulberry Methodist bothered me that day and it bothers me today. |
| Q: What is a historic preservation revolving fund? How do they work/what is the process? What are a couple of revolving fund projects you’ve worked on? |
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| At Preservation South Carolina (PSC) we often speak with individuals wishing to preserve an historic structure. Before going into a discussion about Revolving Funds we spend a few minutes discussing three important preliminary milestones. It is important that the structure is “historic” as judged by an objective agency. For example, is the structure listed in the National Register of Historic Places? Is it part of an Historic District? If the answer is “no,” an excellent first step will be to document and establish its historic significance. Once the structure is restored, what is the vision/purpose for the building? Can the historic home be a bed and breakfast? Can the historic general store find new life as a bakery and coffee shop? On a proactive basis or through a call from the community, our organization will identify an historic structure that is worthy based on the answers to the above two points. In such cases, we will find the owner of the property and talk about mutual interests. Perhaps the owner wishes to rid herself of an abandoned property that represents a liability. Perhaps the owner now lives in another state and cannot manage this property he inherited. Perhaps the owner is historically preservation minded and wishes the property to be restored and repurposed. In such cases we can help. In summary, the Revolving Fund process is dependent on a motivated owner who wishes to see their historic property preserved for future generations. Now let us take a closer look at exactly how a Revolving Fund works. In the simplest of terms, revolving fund projects allow a preservation organization like PSC to buy a historic property, rehabilitate or restore it, and then sell the property with historic protections in place to an appropriate buyer. As needed, our Revolving Fund Committee will meet and review potential property acquisitions or options. Like any prudent business, we have to be good stewards of the funds we have in our Revolving Fund program. Will the owner donate the property to PSC? Is the owner willing to sell the property at a reduced cost to PSC? Might the owner consider the possibility of allowing us time, via an Option Agreement, to market the property for a period of time to determine the community interest in the structure? We then make a decision whether to acquire the property, or not. Once acquired, we often invest some amount of funds in stabilization. These funds come either from our Revolving Fund or from grants that we apply for and receive. When we have stabilized the property and made other baseline improvements, we then try to find a buyer willing to not just purchase the improved building, but to agree to a preservation Easement. An Easement is a legally binding agreement that requires ALL future owners of the property to maintain the structure in its essential historic condition. Once the property is sold, a high percentage of the funds are then “reinvested” in our Revolving Fund. Find out more about Revolving Funds through this pdf booklet from the National Trust for Historic Preservation. |
| Q: How does your work with revolving funds at Preservation SC intersect with preserving Black historic spaces? |
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| Since its 1990 inception, Preservation South Carolina has preserved a diverse collection of Black historic spaces, including homes, churches, and slave cabins. In many cases, our Revolving Fund program enabled us to acquire, improve, and then return the historic property to the community. But there are other reasons why, from Daufuskie to Anderson, Black communities have chosen our organization for the work. We are one of South Carolina’s only statewide non-profit preservation organizations. As such, we often work in areas not serviced by local groups, cities such as Union, Edgefield, and Cordesville. Our board of directors are recognized leaders in their respective and diverse fields. In addition to the nationally recognized preservationists who serve on our board, also in the mix are college professors, business leaders, media specialists, and land conservationists. Our Advisory Council provides yet more focused resources, as needed. Our institutional knowledge and corporate reputation bring credibility to even the most challenging project. Consider, for example, that within a year we received over $500K from outside granting organizations to stabilize Taveau, a now 50-year closed, dilapidated, pre-Civil War, Black Methodist church that is located in rural Berkeley County. As a 501(c)(3), we have the immediate ability to apply for and receive grants. Our mission is not to own historic properties. We wish them to be properly restored, with purpose, returned to the community, and to be protected in perpetuity. Our Revolving Fund is an important part of our portfolio. So are our intangible assets of knowledge, reputation, and shared mission. |
| Q: What do African American preservation projects and leaders need to know about revolving fund projects? How can revolving funds be used for Black preservation projects? |
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| It is critical to consider the economics of the property, prior to signing the dotted line. To consider the economics, a full understanding of what you wish to accomplish is needed from start to finish. For example, in my Introduction, I mentioned how deeply affected I was by my visit to Mulberry Methodist Church in rural Cherokee County. I still think of Moose Littlejohn, still think about the history that will be lost when the church does collapse. But even during my time as board chair of Preservation South Carolina, and even with our Revolving Fund, I knew there was little that could be done to preserve Mulberry. Instead, our organization turned full attention to Taveau, another shuttered Black Methodist Church in Berkeley County. Both are listed in the National Register. Why preserve one and not the other? Mulberry Methodist is a fifteen minute drive from Pacolet, which is in turn another twenty minute drive to Spartanburg. Moose is the only voice for Mulberry’s preservation. Once preserved, then what? Who is going to cut the grass, repair a board, and secure access, once Moose is no longer around? Who is going to even use the building that might take $1M to restore? Taveau is located near the Cooper River between Mepkin Abbey–the burial home to Henry Laurens, a Founding Father and slave trader–and Strawberry Chapel, a 1725 church built by Elias “Red Cap” Ball, whose much later ancestor, Edward Ball, would write a best-selling book about his family and this area called, “Slaves in the Family.” Taveau is the only landmark associated with Black history in Berkeley County and many, many people wish this project to succeed. Not every worthy building can or should be preserved. Unfortunately, we often need to focus on those historic buildings that offer a community, and a purpose. |
| Q: What first steps would you recommend for people who are not professionals or experts in preservation to take if they are interested in using a revolving fund for their project? |
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| As I noted in my own brief introduction, I had no background in historic preservation when asked to join the Preservation South Carolina board in 2019. Sure, I had a passion for building and history, but beyond that, no specific industry knowledge. Like those of you who might be considering a revolving fund project, I understand the challenges of “that first step.” Given the risks involved with an historic preservation undertaking, the best first step is to find your “preservation partners” before acquiring the property. Preservation partners might include a preservation organization such as PSC, or maybe a skilled consultant. A CPA and/or an historic tax consultant might be part of your team, as might companies that specialize in historic building restorations. Other partners could include bankers, real estate agents, historical societies and grant writers. *Toolkit Tip! Use our Experts Database Tool to find these experts! |
| Q: What is something many people may not realize about revolving funds (or your area of work)? (a helpful tip, rule, process, or insider knowledge that people new to this type of work might not realize?) |
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| We have discussed the basics of revolving funds and preservation easements. Not covered to date are two equally important topics, rehabilitation agreements and tax considerations. To best understand rehabilitation agreements it might be helpful to remember that most historic preservation organizations, such as PSC, are not general contractors. We are neither staffed nor funded to accept or purchase a dilapidated structure, and then in a year or two, place a perfectly restored historic building back on the market. In general, we will invest funds in stabilizing at-risk historic structures, bring them to a marketable condition, and then expect the buyer to complete the work in accordance with historic preservation standards. The legally binding document that binds both parties is called a rehabilitation agreement. During the rehabilitation agreement period, we inspect the work to ensure that it is being completed as described. Depending on the property, its purpose, and the interest of the buyer or seller, there are tax benefits that may apply to some portion of the historic preservation transaction. For example: The donation of a property may qualify as a tax deduction. The donation of a preservation easement may qualify as a tax deduction. For larger scale properties that may be repurposed for commercial use, there may be tax credits for abandoned properties. If any of the above apply, contact a CPA who is familiar with historic preservation tax deductions and credits. Also – If your goal is to make money (and every organization needs to make money), then you will seek out historic properties that are in reasonable shape, can be easily improved (new tin room, etc.), and then quickly sold for profit. But if your purpose is to perform public good on a building that might otherwise be lost, then you will seek out historic properties in need of much more work. This will take much time and money. During my team as board chair of Preservation South Carolina, we worked on both the “profit expected” opportunities, and the longer term work. In our case the first helped fund the second. Nothing is more meaningful to those of us in the preservation world than to bring life and vitality back to an historic building, such as the work we are doing with Taveau and the Pottersville House. |
| Q: If you had to give just one piece of advice to folks who are looking into revolving funds to help fund their preservation project, what would it be? |
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| Purpose! Before you begin a preservation project, consider this: What purpose will the restored landmark serve when restored? If you cannot answer that question you should probably not start the project. |
| Q: Do you have any other tips, thoughts, or insights for us? |
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| As South Carolina’s only statewide preservation organization, a designation we have held since 1990, we wish you and your project to be successful. Please take advantage of our knowledge and resources. Preservation SC. Find out more about Revolving Funds through this pdf booklet from the National Trust for Historic Preservation. |
| Q: Do you have any other tips, thoughts, or insights for us? |
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| As South Carolina’s only statewide preservation organization, a designation we have held since 1990, we wish you and your project to be successful. Please take advantage of our knowledge and resources. Preservation SC. Find out more about Revolving Funds through this pdf booklet from the National Trust for Historic Preservation. |