Century-old Cass County schoolhouse gets new life in $16M project boosted by historic tax credits

PLATTSMOUTH, Nebraska — A basketball court was resurrected in this town’s old high school, though the hoop today is more for show than sport and is likely to become the backdrop for a trendy coffee bar.

Chalkboards remain in what once were the chemistry and math rooms, now apartments. Look-alike book lockers line the main hallway, along with a vintage trophy case stuffed with Plattsmouth Blue Devils athletic relics.

With a boost from public incentives, including state historic tax credits, the former Plattsmouth High School built more than a century ago is now fully transformed into an apartment building that has been brimming since March with residents.

On Thursday, History Nebraska’s historic preservation office welcomed local, state and federal officials to a “Rehab Roadshow” that celebrated the nearly $16 million project. In addition to the 25 units in the rehabbed schoolhouse, which were responsible for the bulk of the cost, the price tag includes a 15-unit, newly constructed apartment structure nearby.

The event was intended to highlight economic development tools that are available — and at least one that is at risk — to restore and reuse Nebraska landmarks.

Heart of the community

To the group of about two dozen, Plattsmouth Mayor Paul Lambert spoke about how important rescuing the 106-year-old school, now called the Lofts on Main, was to the community of about 6,500. 

The project not only fires up nostalgia, he said, but also adds workforce housing vital to new employers that have moved to the area in recent years.

“This building is in the heart of the community,” Lambert said, noting emotional ties to many, including his wife and siblings. “If I had torn this down, I would have had to leave home.”

He said the structure was falling apart after sitting vacant for numerous years. Another school facility had replaced it back in 1976, he said, and the property was used only off and on after that for a couple of decades.

It was at the point of demolition, Lambert said, when the RMDX development team came forward.

He said the city agreed to contribute about $1 million over a 10-year period in local incentives that typically go to encourage business development, not residential.

Filling gaps

RMDX’s Ryan Durant and Michael Sothan, historic tax credit coordinator at History Nebraska, said federal and state historic tax credit programs as well as a state tax abatement program and low-income housing tax credits filled financial gaps and made the project feasible.

But, said Sothan, the state historic tax credit program created in 2015 to incentivize the rehab and reuse of historic structures faces challenges. 

The Nebraska Legislature, when reauthorizing the program last year, set the program’s annual allowable credits to offset tax liability at $2 million. It was once $15 million a year, said Sothan.

The good news, he said, is that the program has a reserve of historic tax credits built up of about $55 million. 

“It could be wiped out in one year, three years, it certainly won’t last more than five years,” Sothan said.

He said that without a change in legislation, the program in the long run would not be able to sustain the current demand for credits. That could slow down or ward off projects to preserve historically significant buildings, which typically are pricey ventures. 

“It creates some uncertainty,” Sothan said. “We do have some time.”

Sothan said the Legislature last year took positive steps in other aspects, including lifting the state income tax credit ceiling for a qualified rehab project from $1 million per project to $2 million.

Things you wouldn’t build today

The Rehab Roadshow, he said, is intended to encourage continuation of restoration projects boosted by state historic tax credits. Among the guests at the Lofts on Main event was Elmwood State Sen. Rob Clements, chair of the Legislature’s Appropriations Committee. 

History Nebraska plans to take its roadshow this year to Norfolk and Red Cloud, where it will feature restoration projects in those towns.

Participation in the historic tax credit program requires developers to preserve character-defining features — which was not easy with the decaying structure, said Abby Hegemann of Alley Poyner Macchietto Architecture.

“It was a challenge,” she said, during a tour that highlighted restored features such as the lower floor basketball court, student locker rooms, a boiler room-turned apartment, the original auditorium and stage that serves as a community gathering space.

Each apartment dwelling is unique, said Durant, and has a distinct personality. But vintage pictures, tin ceilings, wooden staircase railings and other decor tie together to provide the schoolhouse feel.

“There are some really neat things you wouldn’t build today,” he said. “It’s fun.”