A COST/BENEFIT ANALYSIS OF

HISTORIC DISTRICTING IN TUCSON, ARIZONA

By Andy Krause © Andy Krause 2004

A report submitted to the faculty of the School Of Planning in partial fulfillment of the requirements for the degree of Master Of Science In Planning in the Graduate College the University Of Arizona

The process of historic districting is often credited with stabilizing neighborhoods and thus increasing property values.  For over twenty-five years city officials and academics have been conducting studies to determine if such a relationship actually exists.  While early studies used a difference-on-difference methodology, recent studies have adopted hedonic modeling as a preferred method of determining the relationship between historic districts and property values.  This study uses hedonic modeling together with a cost/benefit analysis to determine if and to what extent historic districting impacts property values in Tucson, Arizona and if the increase in the tax base outweighs the value of tax incentives granted within these districts.

This study found that location within both National Register districts (5.9%) and local districts (6.9%) produce a significant increase in property assessment value.  Participation in the Arizona State Historic Property Tax Reclassification Program (SPT) is also shown to cause an increase (12.8%) in assessment value.  These findings are in line with similar studies conducted across the nation in the last decade and most likely come as no surprise to preservationists and city officials.  

PDF of: A Cost/Benefit Analysis of Historic Districting in Tucson, Arizona (8MB)