Imagine downtown Buffalo without a refurbished Electric Tower. Or picture Asbury United Methodist Church - now Babeville - sitting derelict.

That might have been the case if not for an array of incentives that made the projects financially viable.

Now one of those key financing sources is at risk.

The federal New Markets Tax Credit program will sunset at the end of the year unless lawmakers in Washington approve an extension.

Rep. Brian Higgins, D- Buffalo, is leading the charge to have the program extended through 2016.

He said the program, which offers federal tax breaks to developers who undertake the restoration of designated historic buildings, has played a key role in a number of high-profile projects. That includes renovations of such downtown landmarks as the Electric Tower, Babeville. the Oak Street Lofts and the Thomas Beecher Innovation Center on the Buffalo Niagara Medical Campus.

Since 2005, $64 million in New Markets Tax Credits leveraged more than $141 million in private-sector investment in downtown projects.

"For older cities like Buffalo, there is great potential to take charge of our own future by reclaiming our past," according to Higgins.

The program provides critical gap financing for historic renovations. Such projects can cost 20 percent more than traditional new construction.

Paul Iskalo, CEO of Iskalo Development, said the credits made viable his acquisition and subsequent renovation of the 1912-era Electric Tower.

"It was a complex project, but the tax credits gave me the financing necessary to the fill the gap," Iskalo said. "Don't underestimate how important of a tool they are."

Tom Cassady is National Trust for Historic Preservation vice president of government relations. He said New Market Tax Credits, coupled with the federal Historic Tax Credit, often provide developers with gap financing they need.

"In these economic hard times, we can ill afford to cut programs like the New Market Tax Credits that have a proven track record of economic stimulus," Cassady said. "These tax credits are job-creating investments that can revitalize the economies of low-income areas."

The New Markets Tax Credit Coalition estimates that for every federal investment dollar in historic projects, $12 in private-sector investment is generated.

The Electric Tower is proof of that, according to Iskalo. Tax breaks helped create 185 construction jobs during the building's rehabilitation period. More than 400 people work there now.

Without the incentives, it's likely the Electric Tower would be sitting empty.

Higgins said he expects a vote on the extension request later this fall.

History being made

Lost in the shuffle of the recently concluded convention of the National Trust for Historic Preservation was the fact that its affiliate, Historic Hotels of America, named the Mansion on Delaware Avenue a landmark hotel. Just 240 hotels have received the designation, including the Sagamore on Lake George and Manhattan's Waldorf-Astoria and Plaza hotels.

The Mansion is the only Western New York hotel to gain that lofty ranking.

What will it mean?

Being cited by Historic Hotels of America opens the door for more bookings for the 28-room hotel from the lucrative cultural tourism market. It's a stamp of approval in cultural, architectural and historical tourism circles.

"It puts Buffalo front and center in the preservation community," said Dennis Murphy, who bought and restored the former Sternberg Mansion on Delaware Avenue at Edward Street. In 2001, he turned the long-vacant, circa 1869 home into the hotel.

The Mansion went through a tough review of not only its operation but the building's historic status to verify its significance.

"There was a pretty high bar," said Michael DiRienzo, director of sales for Historic Hotels of America.

The Mansion on Delaware is one of Buffalo's most sought after hospitality addresses. The guest list is a who's who that has included Hillary Rodham Clinton, Julie Andrews, Tim McGraw and Ozzie Osbourne.

Looking at the building these days, it seems hard to believe the Mansion sat empty for more than 20 years before Murphy bought it and brought it back to life. When he debuted it a decade ago, it received rave reviews.

"What happened here reflects on the power of what one private enterprise can do," said Buffalo Mayor Byron Brown. "It really is hard to believe this building sat dormant for 20 years and now it is a showplace."