Lot Lines: The auctioning of an icon

I am a conservationist. I love old buildings, buy old buildings, restore old buildings, and I love it when others preserve history by saving old buildings and put new aspiring businesses in those buildings. Preserving history while providing economic development is a win-win proposal. I am struggling with the role of government in the preservation process and how much incentive should be provided for the opening of businesses in our communities.

The preservation of historic buildings often involves substantial government investment, and this can be a point of contention. While the exact amount varies based on the country, state, or local government involved, there are some general trends and notable examples that illustrate the scale and controversy of such spending. One specific Oklahoma city provided incentives to businesses that, if successful, would have saved a historic building and provided much needed economic development to the community.

The Price Tower, located in Bartlesville, OK, is a Frank Lloyd Wright designed, 19-story tower which included a boutique hotel, offices, arts center, museum, and a bar. Once owned by Phillips Petroleum Company in the 1980’s, the tower was placed on the National Register of Historic Places, in 1974, and became a National Historic Landmark in 2007. The owners have been challenged to make the building a financial success and have leaned on the city and state governments for help in saving this historic structure. Recently, the Bartlesville Development Authority awarded over $88,000 in public tax incentives to businesses that promised to open in the Price Tower, which would have theoretically enabled financial success for the building owners.

The $88,000 incentive, which was approved by the Bartlesville City Council for economic development, was given to two restaurant groups that were planned to open in the historic Price Tower. Recently, the owners of the building announced the permanent closure and auction of the building. With the closure of the Price Tower, it is unlikely that either restaurant will open. This has caused community criticism of the loss of tax-payer monies that were dedicated for building modifications and opening the businesses.

Many cities, including Bartlesville, have been successful in luring businesses with financial incentives and, in general, they have greatly benefited our communities. It is extremely unfortunate when it doesn’t work out, and as in this case, tax-payers may criticize their use.

Dr. is a Professor of Finance & Real Estate at The University of Central Oklahoma (jchapman7@uco.edu).

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