Preservation Easements
Preservation easements are the most powerful tool for protecting the architectural integrity of our city.
A preservation easement is a voluntary legal agreement that permanently protects the historic character of a property. The property remains privately owned and can continue to be used, leased, financed, inherited, or sold. For some historic property owners, an easement can also provide a meaningful financial incentive for preservation. Please see our FAQ’s below.
Our most recent preservation easement:
Highlander Folk Library
The Highlander Folk Library building in Monteagle, Tennessee, is significant because it stands as a physical witness to one of the most important chapters in American social history. As part of the Highlander Folk School campus, the library was a place where labor organizers, educators, civil rights leaders, and community activists gathered to learn, share ideas, and develop strategies for change. The building’s significance is rooted not only in its simple architecture, but in the people, conversations, and movements it witnessed—including the early civil rights movement and the work of leaders such as Rosa Parks and Martin Luther King Jr.. Preserving the Highlander Folk Library preserves a rare and tangible connection to the grassroots efforts that shaped the nation’s pursuit of equality and social justice. The building is now protected with a Preserve Chattanooga preservation easement.
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Protected - Terminal Station
Since 1909, the 82-foot-high interior dome was meant to be a beautiful, shared space from the very beginning. Designed by architect Donn Barber in the Beaux Arts style, the Terminal Station was a statement about Chattanooga’s emerging prominence as an important railroad crossroads.
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Protected - The Dome Building
This six-story building, also known as the Ochs Building, is considered one of the architectural icons of Downtown Chattanooga. It was originally the headquarters of the Chattanooga Times newspaper, which was founded by Adolph S Ochs, famed owner of the New York Times. It was added to the National Register of Historic Places in 1978.
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Protected - Tivoli Center
The former Fowler Furniture Building, erected in 1900, is adjacent to the historic Tivoli Theater, known as “The Jewel of the South”. The Tivoli Theater Foundation has acquired this building and plans renovations to expand the theater lobby and provide rehearsal space for the Chattanooga Symphony.
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Protected - Customs House
This Richardsonian Romanesque masterpiece, designed of rough and smooth stone in 1892, was built to house the federal post office and other U.S. Government offices. Added to the National Register of Historic Places in 1973, this building continues to house the U.S. Bankruptcy Court and other governmental offices.
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Protected - 730 Chestnut Street
Built in 1930, this is a contributing structure to the Downtown Chattanooga Historic District. The architectural development of this district includes buildings constructed throughout the continuum of its historical development from circa 1875 to 1971. Today, it is home to the Bode Hotel.
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Protected - Warner Home, Fort Wood
The Joseph H. Warner Home (1890-91) was designed by Townsend and Stone, Chattanooga architects. It is among the grandest of the high Queen Anne structures in Chattanooga. Its pressed red brick with stone trim is indicative of the Romanesque architecture that dominated the finer residences of the commercial and industrial aristocracy of the post-reconstruction South. The residence's solid oak paneling and woodwork, large hallways, mantlepieces and tile work, elegant terra cotta and rusticated stone trim, turret and steep pitch roof covered with slate, and asymmetrical plan characterize a house that was expressly designed with a desire for luxury and opulence, but also for efficiency, comfort, and naturalness.
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Protected - The Dent House
This beautiful Georgian mansion was erected by Colonel Jarrett G. Dent who moved to Tennessee to build the Western & Atlantic Railroad in the 1850s. After serving as a school for dependent children for many years, it is now home to Polly Claire’s Tea Room. The Dent House was added to the National Register of Historic Places in 1980.
Frequently Asked Questions
This information is intended for general educational purposes and does not constitute tax, legal, or appraisal advice.
Easement donations and charitable deductions are subject to federal requirements. Property owners should consult qualified legal, tax, and appraisal professionals.
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A preservation easement is a voluntary legal agreement that permanently protects the historic character of a property. The property remains privately owned and can continue to be used, leased, financed, inherited, or sold.
For some historic property owners, an easement can also provide a meaningful financial incentive for preservation.
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When an owner donates a qualified preservation easement to an eligible nonprofit organization, the owner gives up certain property rights—typically the right to demolish the historic building or make incompatible alterations.
Those restrictions may reduce the property's fair market value.
Value of property before easement
− Value of property after easement
= Potential value of easement donationIf federal requirements are satisfied, the value of the donated easement may qualify as a charitable contribution for federal income-tax purposes.
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Consider a historic downtown building valued at $4 million.
Because of its location and zoning, the property has significant redevelopment or expansion potential. The owner instead chooses to permanently protect the historic building through a preservation easement.
A qualified appraisal determines:
Property value before easement: $4,000,000
Property value after easement: $3,500,000
Potential easement value: $500,000The $500,000 is not a tax credit or cash payment. Rather, it represents the potential value of a charitable contribution, subject to applicable federal tax requirements and limitations.
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This can be particularly important for historic buildings located where zoning permits greater height, density, redevelopment, or expansion.
For example, a five-story historic building might occupy a site zoned for substantially more development. If a preservation easement permanently restricts demolition or additional development, the owner may be surrendering economically valuable rights.
A qualified appraiser determines whether those rights actually contribute to the property's market value and, if so, how much value is affected by the easement.
The greater the legitimate economic value of the rights being donated, the greater the potential value of the easement.
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The exact restrictions depend on the individual easement, but they commonly protect important exterior architectural features and require review of significant future alterations.
The owner generally does not give up ownership or everyday use of the property.
The easement remains with the property when it is sold, providing permanent protection while allowing the building to remain a productive private asset.
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Potentially, yes.
Owners rehabilitating income-producing historic buildings may also be eligible for the 20% Federal Historic Rehabilitation Tax Credit and other incentives. In appropriate circumstances, an easement can become another component of the project's overall preservation-finance strategy.
Special federal tax rules apply when incentives are combined, so each project should be evaluated individually.
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Preserve Chattanooga can help property owners explore whether a preservation easement may be appropriate for a historic building and connect owners with the professional expertise needed to evaluate an easement.
Contact us to learn more about how a preservation easement can protect your historic property.
Please note that easements are legal tools defined by Tennessee state law. The advice and assistance of a knowledgeable attorney, tax adviser, appraiser, and other professionals should be included in this process. For tax benefits associated with certified historic structures, please refer to IRS guidelines.