PART ONE: Click to download (PDF) the Cultural Advocacy Day insert as seen in Art Scene's February issue.
PART TWO: Click to download (PDF) the Cultural Advocacy Day insert as seen in Art Scene's February issue.

SUMMARY

The Iowa Cultural Coalition (ICC) serves as the main advocacy, technical assistance and communications network available to people and organizations who create and appreciate all forms of art, historic preservation, museums, science and cultural educational endeavors in Iowa. We serve the needs of every Iowan by supporting the people and resources in the state that make it a joy to live here. The following is the Iowa Cultural Coalition Legislative Platform:

Historic Preservation Tax Credits: There are two amendments to improve the program that should be acted on in the current Iowa legislative session:
• The cap of the program should be increased from $2.4 million to 20 million per year. A significant number of additional large and small projects could claim the credit each year with this increase, further increasing the overall investment in the historic resources of our communities to $80 million per year.
• Overall, 10% of the total program funding should be dedicated to only small projects (under $200,0000). This dedicated part of the pool would encourage investment in the historic neighborhoods, rural resources, and smaller downtowns by allowing the credit to be claimed more quickly. Even at the current funding level of $2.4 million, this would dedicate $240,000 to these projects, which would not significantly increase the wait for the large "average" project. At the same time, if the average small project were $100,000, thus claiming $25,000 in tax credits, the dedicated pool would fund about 10 projects across the state each year. When the funding is increased, a significantly higher number would be funded, and this pool would be available earlier.

Cultural Trust: Pass legislation that dedicates $10 million dollars to the Cultural Trust over a 5-year period. The Cultural Trust will leverage state dollars to promote cultural organizations’ ability to maintain a viable operating budget.

Cultural and Entertainment Districts: Enabling legislation for this program must be passed during this legislative session. Cultural and Entertainment Districts mark our state treasures as desirable place to live, visit, and celebrate.

Cultural Grants: All grant program appropriations must be adjusted to more adequately meet the needs of constituents across the state. Grant dollars leverage local investment, develop legacies and save our heritage, and solidify communities. The following grants require funding at these suggested amounts:

• Resource Enhancement and Protection (REAP): appropriation of $30 million per year through 2011. REAP/HRDP then receives 5% of that appropriation per year.
• Historic Site Preservation Grant (HSPG): appropriation of $1.2 million per year
• Iowa Community Cultural Grant: appropriation of $600.000.




DETAILED ANALYSIS

Historic Preservation Tax Credit Revision
FACT SHEET

THE ISSUE
Increase the cap on the historic preservation tax incentives to $20 million per year and dedicate 10% of the pool for only small projects (under $200,000 in investment). The historic preservation tax credits have been so successful that they are reserved through the year 2016. Clearly, the cap needs to be raised to encourage further economic development in the state. Additionally, many of the smaller projects are falling in the cracks since the program is so encumbered. A dedicated pool needs to be created for these smaller projects to promote investment in our historic neighborhoods, smaller downtowns, and barns.

BACKGROUND
The Iowa Historic Preservation Tax Credit was passed in May 2000 to promote investment in our historic resources in communities, codified in Section 404A.4. Rehabilitation of these resources contributes to the economic viability as well as the strength of our communities. The secondary impacts of this historic tax credit on our communities are countless. The program provides a tax credit of 25% of the qualified rehabilitation expenses for qualified projects. Thus, each credit represents an investment in our community of at least four times the amount of the credit. Additional revenues are generated through increased property taxes, income taxes, and sales taxes. The goal of the program was to promote investment in large projects as well as to promote investment by property owners in smaller residential, commercial, and barn projects.

The cap for the program is currently set at $2.4 million per year, with projects waiting in line for tax credits to become available in future years. Over the last few years, the historic preservation tax credits have been reserved out to 2016, representing over $140 million in investment in Iowa’s resources and communities. In 2001 alone, over $54 million was invested, with $13.5 million in state tax credits reserved (25%). At the same time, the increase in property tax for these projects was estimated at over $1.7 million annually. Thus, over an 8 year period, the revenue generated from increased property taxes on these projects will exceed the original rehabilitation credit from the state, continuing to generate additional revenue as the building remains in service. The average project size has risen to over $2 million, resulting in the 25% tax credit of $500,000. Thus, the program can only fund about 5 "average" projects each year. These projects typically involve large buildings that are rehabilitated for commercial, civic, or multi-unit housing purposes.

While the tax credit is key to the success of these large projects, many smaller projects have not fared as well. These small projects, totaling less than $200,000, are typically owner-occupied residential, residential rental (4 units or less), smaller commercial structures, and barns. Typically, these owners cannot wait for over 10 years to be able to claim this credit; they need the credit to be immediately available if it is to have any benefit to the cost of the rehabilitation project. At this time, few apply to the program due to the long wait for the available credits.

NEEDED ACTION
There are two amendments to improve the program that should be acted on in the current Iowa legislative session:
• The cap of the program should be increased from $2.4 million to $20 million per year. A significant number of additional large and small projects could claim the credit each year with this increase, further increasing the overall investment in the historic resources of our communities to $80 million per year.
• Overall, 10% of the total program funding should be dedicated to only small projects (under $200,0000). This dedicated part of the pool would encourage investment in the historic neighborhoods, rural resources, and smaller downtowns by allowing the credit to be claimed more quickly. Even at the current funding level of $2.4 million, this would dedicate $240,000 to these projects, which would not significantly increase the wait for the large "average" project. At the same time, if the average small project were $100,000, thus claiming $25,000 in tax credits, the dedicated pool would fund about 10 projects across the state each year. When the funding is increased, a significantly higher number would be funded, and this pool would be available earlier.

CONTACT FOR ADDITIONAL INFORMATION
Rod Scott: 641-648-4570, rodscott@iowaconnect.com; Iowa Cultural Coalition: 515-321-7466, cnieb@iowalink.com



Cultural Trust
FACT SHEET

THE ISSUE
Create a dedicated funding stream to achieve a $10 million Cultural Trust in 5 years, to include a component that supports organizational stabilization.

BACKGROUND
The Cultural Trust has established a statewide private/public partnership to support our cultural institutions. We are requesting that $2 million dollars be available for deposit into an account each year over a period of 5 years to fund the Cultural Trust. Those funds would be drawn down into the Trust account as match to locally-generated investment in cultural institutions. Interest from the Cultural Trust account would be used to fund local operating costs, which would be distributed through a competitive program. At the present time, only $500,000 has been set aside by the legislature for deposit into the Cultural Trust.

Why should legislators consider funding the Cultural Trust in the amount of $10 million dollars? Cultural organizations are essential to feeding economic growth. They generate billions of dollars in economic activity, attract people to live and work in Iowa communities, serve as a magnet for tourists, are catalysts for downtown revitalization, build social capital, and provide opportunities for lifelong learning. Healthy cultural organizations make healthy communities in the New Economy. At the present time, we are not competitive with other states in our support of cultural organizations: in Iowa, state operating support of cultural organizations is only 3% in comparison to the national average of 10%. Iowa ranks 41st in per capita funding of the arts, below almost all of its neighboring states.

A vote for $10 million in funding for the Cultural Trust is one that you will be proud of in the future because it will benefit the constituents in your district. Investment in the Cultural Trust stimulates local investment by leveraging local dollars with state dollars and keeps local dollars in their home communities. In addition, it encourages new relationships between cultural organizations and local funders. Probably most important of all, the Cultural Trust enables prosperous communities to leverage state dollars for underserved communities: cultural organizations will qualify for Cultural Trust monies through an application process that will require demonstration that organizations are working on strategies to secure their own long-term stability and sustainability. In other words, every community has the potential to benefit from the program.

NEEDED ACTION
Pass legislation that dedicates $10 million dollars to the Cultural Trust over a 5-year period.

CONTACT FOR ADDITIONAL INFORMATION
Iowa Cultural Coalition, Cynthia Nieb: 515-321-7466, cnieb@iowalink.com




Cultural Districts
FACT SHEET

THE ISSUE
Ratify enabling legislation to codify the Cultural District program. Iowa is blessed with an abundance of authentic living and working habitats that are attractive to residents, visitors, and businesses. However, if not nurtured these "natural heritage and cultural areas" can deteriorate and become a detriment to the State.

BACKGROUND
A Cultural District is a well-recognized, labeled, mixed-use compact area of a city in which a high concentration of cultural facilities serves as the anchor. Cultural districts can be found in small rural areas wit the potential for more than one and entertainment district. They are established to encourage city and county governments to partner with a local nonprofit or for profit organization, businesses, and individuals to enhance the quality of life for citizens of this state. Cultural Districts also enrich local economies through developing and sustaining cultural facilities in a synergetic fashion.

More than 90 cities in the United States have planned or implemented a Cultural District—positioning the arts and culture as the center of revitalization efforts. The impact of Cultural Districts is measurable. The arts and areas with historic structures attract residents and tourists who also support adjacent businesses such as restaurants, lodging, retail and entertainment. The presence of the arts and cultural opportunities enhances property values, the profitability of surrounding businesses and the tax base of the region. These districts attract a diverse and well-educated workforce—a key incentive for new and relocating businesses. In sum, the goals associated with Cultural Districts include:

• Revitalizing a particular area of a city
• Offering evening activities, extending the hours during which the area is in use.
• Making an area safe and attractive
• Promoting and marketing cultural activities for residents and tourists
• Attracting facilities for arts and cultural organizations and their activities
• Expanding employment opportunities and housing for artists and cultural workers
• Connecting the arts and culture more intimately with community development
• Increasing the understanding of various cultures as well as strengthening ties
• Expanding and supporting small business locations

Thus far, eight Cultural Districts have been selected for recognition through Iowa’s program. They include an impressive mix of large and small cities, rural and urban locations, and varied geographic distribution. The first year’s recipients include: Downtown Cedar Falls, the Charles City Cultural District, the Cherokee Cultural and Entertainment District, the Downtown Davenport Cultural District, the Downtown Dubuque Cultural Corridor, the Old Capitol and Iowa River District, Pearl City and Melon City (Muscatine), and the Spencer Downtown Cultural District.

NEEDED ACTION
Introduce and pass legislation that formalizes the Cultural District program.

CONTACT FOR ADDITIONAL INFORMATION
Jack Porter, Cultural Districts Coordinator: 515-242-6152, jack.porter@iowa.gov; Iowa Cultural Coalition, Cynthia Nieb: 515-321-7466, cnieb@iowalink.com




Cultural Grants
FACT SHEET

THE ISSUE
Grant appropriations fall far below requests from constituents. Cultural grants provide jobs for Iowans, stimulate the economy through tourism, and provide destinations and events that shape our heritage and legacy.

• Resource Enhancement and Protection (REAP): Requesting an appropriation of $30 million per year through 2011.
• Historic Site Preservation Grant (HSPG): Requesting an appropriation of $1.2 million per year
• Iowa Community Cultural Grant: Requesting an appropriation of $600,000.

BACKGROUND
Resource Enhancement and Protection (REAP): The original REAP law (1989) authorized a maximum appropriation of $30 million per year for 10 years. This level of funding has never been realized. Actual appropriations have ranged between $7 million and $20 million, with an overall average of about $10 million per year. In 1996, the legislature changed the authorized maximum appropriation from $30 million to $20 million per year and extended the program's life through 2021. The Resource Enhancement and Protection/Historical Resource Development Program (HRDP), which receives 5% of REAP funding annually, funds grant projects that conserve, preserve, interpret, and educate the public about historic preservation, documentary collections and museums in Iowa. Grant recipients typically include museums, individuals, libraries, genealogical societies, and heritage groups. Grant requests always exceed the amount appropriated, to the detriment of Iowa’s communities. In fiscal year 2004, $1,573,091 was submitted in grant requests while only $367,900 was available for distribution to grant recipients.

Historic Site Preservation Grant (HSPG): The Historic Site Preservation Grant provides funds to acquire, repair, rehabilitate, and develop historical sites that preserve, interpret or promote Iowa’s cultural heritage. Projects funded by this program must promote an understanding of the record of human experience within Iowa. All grants must involve work on "vertical infrastructures," which is defined in Iowa Code Chapter 8.57 as "land acquisition for construction, major rehabilitation of buildings, all appurtenant structures, utilities, and site developments." HSPG grant amounts range from $40,000 to $100,000. Often, an HSPG will make the difference whether or not a project will succeed or not. During fiscal year 2005, over $1,405,151 in requests was recorded: only $490,000 was available to grant recipients.

Iowa Community Cultural Grant: The Iowa Community Cultural Grant program offers financial support for projects which continue the development of Iowa’s cultural and historical resources. Grant awards range from a minimum of $1,000 to a maximum of $25,000. Eligible projects include a qualified festival; performing, visual or literary arts project; historic preservation, museum, tourism, or ethnic heritage project which will enhance Iowa’s cultural climate and which provides employment for Iowans while serving the general public. At least 25% of the funds allocated for projects funded through this program are awarded to projects which were not in existence the previous year. Projects which represent a significant enhancement or expansion of a previously established project may also qualify as new projects. Requests for funding always far exceed the amount available for grant projects.

NEEDED ACTION
• Resource Enhancement and Protection (REAP): appropriation of $30 million per year through 2011.
• Historic Site Preservation Grant (HSPG): appropriation of $1.2 million per year
• Iowa Community Cultural Grant: appropriation of $600.000.

CONTACT FOR ADDITIONAL INFORMATION
Iowa Cultural Coalition, Cynthia Nieb: 515-321-7466, cnieb@iowalink.com



CULTURAL ADVOCACY "LETTERS TO THE EDITOR" EXAMPLES

"On December ___, 2004, a group of eleven concerned citizens met with Representative _______ _________ to discuss the 2005 Iowa Cultural Coalition Legislative Platform. This platform outlines legislative action for the 81st Iowa Assembly that will expand Historic Tax Credits, fund a Cultural Trust for operating funds of cultural non-profits, provide enabling legislation for the Cultural and Entertainment District program, and either restore or expand funding for several cultural grants. (We would like to applaud Representative ________ for agreeing to support the 2005 ICC Legislative Platform in both committee discussions and his/her votes. It is this kind of legislative vision that will help steer Iowa to greatness in the future.)

OR

(We regret that Representative _______ declined to support the 2005 ICC Legislative Platform because of __________________. While we respect Representative __________’s opinion on the matter, it is essential that we invest in Iowa’s cultural organizations and microbusinesses to provide a legacy for the citizens of tomorrow and livable communities for those of us who inhabit Iowa today. All of these cultural initiatives have the potential to stimulate the economy, salvage the past and pave the way for the future. Please join me in contacting Representative _______ to let him/her know of your interest in supporting the Iowa Cultural Coalition’s initiatives.)"

Of course, you are welcome to write your own individualized letters—these are just examples.