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| Lessons Learned |
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An important and perhaps obvious lesson to be drawn
from the successful effort to save the former Temple on the Heights is
that adapting a sacred landmark for a new life in the secular world is
a complicated and complex challenge. The starting point in this process
is a clear vision shaped by a detailed market study that identifies and
assesses alternative uses of the facility and projected revenue flows
derivable from each. Market assessments may be tempered by the values
of preservation and civic purposes, but these should not cloud assessments
of financial realities. For-Profit: The attempt to operate the Civic as a for-profit business partnership with an array of full and limited partners was not particularly successful. Despite the commitment and apparent dedication of the partners, this approach appears to have floundered due to an array of operational cost and revenue problems, as well as complex and costly maintenance and restoration needs. If the projected use of a facility does not meet the "test of the market," the facility can be operated as a "business" only if some form of public subsidy in the form of tax exemptions or direct public payments can be justified. Nonprofit: The transfer of the Civic from the Temple Associates partnership to the Civic Foundation demonstrates the difficulties of adaptive reuse to commercial alternatives, particularly when the facilities require high maintenance and renovation costs. Nonprofit status removes the need to generate a return to stockholders or owners. It also creates an entity that can receive funding from foundations that, due to their legal status, can only make contributions to nonprofits, and an entity that can receive tax-deductible contributions from individuals and businesses. Nonprofit status, however, begins to define purpose. To sustain a facility as a nonprofit requires a compelling purpose and functions that are consistent with contributors' charitable purposes and funding guidelines. Further, many foundations are precluded from, or very reluctant to fund, operating costs, particularly on an ongoing basis. The Civic Foundation appears to have found some success in creating a virtual incubator for artistic and religious endeavors. This model, however, was threatened by problems of tax arrears and capital renovations costs that were transcended only with great difficulty and financial innovation. Public Use and Public Purpose:
An alternative for adaptive reuse of sacred landmarks is acquisition by
government for use in housing governmental units. This option was considered
by the City of Cleveland Heights but rejected because of the very high
cost of renovating the facility relative to new building construction.
An intermediate alternative to public ownership is housing some government
services that generate rental income for the facility. This could provide
core tenants for both profit and nonprofit adaptive reuse. Another intermediate
alternative is the use of public funds to facilitate adaptive reuse because
the facility serves a historic and/or current public purpose. The Civic
experience offers examples of state and city government providing funding,
including the innovative use of linked deposits to generate resources
to sustain and maintain the Civic. |
| The
Center for Sacred Landmarks Monograph Series website design by Mark Hoffman |
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