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That's why I think there should be more incentives given toward preserving, via tax cuts, funding, etc.
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I would rather the money go to fixing roads or rebuilding schools.
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In the case of the Kansas City downtown revival, that was done under urban renewal grants. The buildings remain, they're just refurbished. It's been about two years and there's still work to be done, but it's a fantastic idea-designating a city area to arts, community and preservation.
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It's downtown with a booming city because of NAFTA. Prices in those areas are expected to increase, so the economics to build there are already in place. Here in Austin they get $0 for rebuilding or fixing up crappy locations, but people are tripping over each other attempting to buy out the old 1800-1900 buildings. They rebuild them into bars/clubs, stores, and even homes in the middle of downtown.