Don’t make Atlantic Ave. ‘historic’ and kill its success
Delray Beach’s Atlantic Avenue was a dangerous and dirty downtown in the 1980’s. It was not safe to go there after dark, and no new stores or dining establishments could stay open. To address this the city invited private investors to come and discuss the possibility of making the town into something special.
It was not just the downtown area that needed attention but the surrounding areas as well. At that time there was no city funding available. Real estate values were low, and developers shied away from the avenue and the neighborhoods surrounding it.
Gradually, several people with vision could see the value in being so close to the beach and so close to I-95. They saw what was needed to get this area to grow and flourish: a safe environment with new and clean restaurants, a variety of activities that would bring lots of people downtown and create a new source of revenue to help sustain and rebuild the area.
The city hired Chris Brown to take on this task. Mr. Brown worked with our city’s mayors for many years as the director of the CRA. Thirty-five years later, Atlantic Avenue is studied by other urban experts as one of the best examples of how to turn a dilapidated old urban setting into something special.
The history of Delray Beach is one of change. There is a constant upgrading of existing older buildings done with local craftsmen and architects. Delray Beach is the poster child for adaptive reuse of old, stale, tired properties. Delray Beach has become
successful because of the innovation, creative use, and changes implemented by the adaptive reuse of the existing buildings.
It did not become the crisp, inviting, safe, solid revenue stream without local investors taking a chance and using their experience to provide the basis for this growth along with the city. Together we have created a safe and inviting environment which also provides a solid revenue stream for the city and its people. Our city continues to grow and be successful because we are an eclectic, constantly changing inventive and exciting urban location that has worked well with local government to maintain, sustain, and control the scale and growth on Atlantic Avenue.
There is currently a vocal group of preservationists, though, who want to roll back the success of Atlantic Avenue by pushing to make it a historic district. Although the area is not organically a historic district, the preservationists want to manufacture such a district.
So, who decides what makes a building old and historic? Why should the term “historic” be applied to property that someone has invested substantial funds to purchase that was not historic prior to the purchase?
The group relies on a report from one expert that a historic district will increase real estate values and save the city from too much change. What they do not cite are the many other reports and opinions that making a commercial district into a historic district will inhibit the natural growth of property values.
It is common knowledge in the commercial sector of real estate that updating properties increases their value. There is no shortage of top-tier economic studies that support this and everyone who has worked or participated in the commercial sector for any period understands that.
One result of making Atlantic Avenue a historic district would be to make substantial new layers of government permitting and approvals and make changes and upgrades even more expensive. The rules would severely limit a property owners’ ability to grow and change and upgrade. The preservationists want to take control of private citizens’ properties and be the all-encompassing judge of what can and cannot be done with their property.
The hard facts and economic evidence support the conclusion that the city has been on track and is very successful by any definition. Since 2010 property values in the central business district are up 265%. This happened because of a time-tested formula —
Public/Private partnership that maintains the momentum. While state grants and property tax abatements might be available if the property becomes “historic,” the benefits are not substantial enough to outweigh the hardships and losses an owner would encounter.
Not one person on the historic board, working with the board, or on staff of the board or the commission of Delray Beach has ever owned a property on Atlantic Avenue. They have no idea how difficult it is to get work permitted on the avenue. They have never financed a property, applied for permits for a property, negotiated a lease for any property, designed a new storefront, marketed a property for lease, battled to get these approvals. Existing controls, such as the current height restriction of three stories and review by several boards, are already onerous.
These existing development regulations are why Delray Beach still has all the charm and grace of a small town. It can continue to be successful if left to the commercial real estate operators who know, understand, live, breathe, invest, and are totally committed to commercial real estate.
Steven Cohen is a real estate investor and a Delray Beach resident.