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I represent the accredited Main Street America organization in Harrisonburg, Va., working to revitalize our historic downtown district. When considering HB960, please do not support a statewide cap of $75M on this program, which would harm Virginia's economic potential. A cap would force our communities to compete with each other instead of allowing all ships to rise. It will make the state historic tax credit incentive unpredictable. Without a cap, the tax credit can remain a highly effective economic development tool. • In Harrisonburg, since our revitalization started 20 years ago, we have had 27 historic tax credit projects and over $61M in investment. • Since 2003, our total private investment was $139.4M in our 40-block historic downtown. • Therefore, just over half of our total private investment since 2003 was made possible by the historic tax credit. • Since 2016, Virginia has exceeded $75M in tax credit projects five times. Dozens of transformative projects may not have happened if there was a cap in place. Many of Harrisonburg's historic tax credit projects were under $5M. However, the 1934 Casco Ice House rehabilitation, was over $5 million. It was a complex project that turned a historic ice manufacturing and storage facility into housing, offices, and commercial space for several locally owned businesses. It takes up around 80,000 square feet on 2 acres. It was an eye sore for years while vacant, but today, it is a hub of activity, with dozens of apartments, three restaurants, a craft brewery, a yoga studio, four offices (including our office), and a vintage jewelry manufacturer and boutique. Historic photos of the Ice House line our walls and heavy machinery “decorate” the site, helping to tell our history as we enjoy the vitality that this project brought to our downtown. This project happened because of an Industrial Revitalization Fund grant and historic tax credits. Developers in our community are mostly locals who live and work here. They specialize in small to medium-sized projects in their own backyards. Developers in historic Harrisonburg are not large corporations who do projects throughout the U.S. An example of this is the family-owned 1913 Chesapeake Western Railroad Depot. It survived several fires but tax credits helped bring it back to life. When using the Secretary of Interior’s standards, the family had to rebuild the structure as it was originally built, which pushed the project price tag to $1 million. This was an expensive restoration but the family was able to take advantage of the tax credits. Tax credits can still keep our revitalization going. Two downtown property owners recently completed two multi-million dollar projects, which are in the final review stage to receive tax credits. We have two more historic buildings that are tax credit candidates just waiting to get started. If the state tax credit program had a cap on it, Harrisonburg’s success story would be years behind where we are today. We have a single-digit vacancy rate, a waitlist for apartments in our gorgeous historic rehabs, and a vibrant retail and restaurant scene. Our success has a direct line to the tax credit incentive. A cap means the credit's availability is not guaranteed. Projects will be too risky to move forward. The tax credit strengthens our local economies. Please don't limit the economic development potential in our older and historic communities.

Hb1180 I had to send my child to private school. She has level 1 autism and having lots of sensory issues. The public school setting was not fit for her. She spent 6 hours a day in class and with the large classroom size it overwhelmed her. Can you imagine how hard it must be for those kids? The school told us we can’t get IEP unless she fails…. We do not want support after she fails we need the support so she does not fail. We will be not eligible for this bill but HB1164 will help lots of families like us to have more resources.

On behalf of the 17 members of the Virginia First Cities Coalition, we urge you to please support HB 960. The Historic Rehabilitation Tax Credit Program has played an essential role in the preservation of thousands of historic properties since its inception 26 years ago. It has been perhaps the most seminal, positive step to revitalizing the Commonwealth's older, core cities --- many of them members of Virginia First Cities. The program statistics tell a powerful story of economic stimulus to local governments and to the state, of job creation and retention, of expanded housing options, In short the HRTC program has helped immeasurably and we need it to expand in order to help our cities get older, historic properties back into productive, tax producing use. The expanded HRTC program will do just that.

The City of Portsmouth strongly supports this bill and asks that this august body do the same. Our Economic Development Director stated that passing this bill into law will increase tax credit financing to Portsmouth revitalization projects.