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Historic Tax Credits Fuel Millersburg Revival

Newly Restored, ‘The Boarding House’ Offers Visitors a Step into the Past


On the corner of Main and 9th in the heart of Millersburg’s historic district stands what is thought to be one of the town’s oldest dwellings, circa 1812, and dating back to an original land grant.

By 2021, the forgotten home was just another sad reminder of Millersburg’s downward trajectory, exacerbated by the closing of the Millersburg Military Institute (MMI) and the town’s last remaining industry.

 

In the minds of many, the house at 902 Main St. was too far gone and should have been condemned and razed for safety reasons.

 

Historic Preservation and the Road Less Traveled
Millersburg resident Kevin Smith, CEO of nonprofit Community Ventures, saw it differently. In 2016, Community Ventures undertook a complete revitalization of the tiny burg, beginning to resurrect the entirety of the MMI campus as an economic jump starter for the town.

 

With that and other projects completed, Smith saw 902 Main as another opportunity to reclaim an important piece of Millersburg history, making a decision to commit the resources necessary to salvage it based perhaps more on heart than head when a member of the community conveyed to Smith just what the property meant to them, and to the town.

 

“It might have made more sense financially, and it certainly would have been easier, to take down what was left of this property and build new,” Smith acknowledged. “But that’s not what the true revitalization of a town is about. To tear it down would have been a disservice to Millersburg, which has a storied past worth preserving. We want to give the townspeople, both the lifelong residents and those just moving in, a community they can be proud of, and we want them to be excited for what the future holds. Every historic property that we save gets us a little closer to that goal.”

 

But the cost to renovate historic houses and commercial buildings to meet the standards set forth by the Secretary of the Interior and state historical preservation societies is high, and navigating the process can be complex, so it is easy to understand why many significant old buildings are left to crumble.

 

Community Ventures has been able to pull from a variety of funding sources in their quest to save as many historically relevant structures as possible throughout the town.

 

Tax Credits Key to Funding Restoration
In 2023, Community Ventures announced the creation of the Jan Wagoner Millersburg Revitalization Fund, named for the long-time Millersburg advocate who passed away that same year. The fund, which is focused on the restoration of nine properties inside the boundaries of Millersburg’s historic district, relies on a combination of grants and new markets and historic tax credits to attract funders interested in small-town preservation.

 

Historic Tax Credits (HTCs) have been integral to Community Ventures’ Millersburg revitalization initiative, as has the support of the Kentucky Tourism, Arts and Heritage Council, governing body of the HTC program.

 

Simply put, HTCs offer credit against taxes owed by individuals or entities working to restore historically relevant residential and commercial buildings. In the case of a nonprofit such as Community Ventures, those credits can be purchased by investors, banks, etc., with the proceeds used to help fund the restoration.

 

“HTCs come with certain restrictions,” explained Brian Hutchinson, Community Ventures Chief Development Officer. “For tax reasons, properties are not able to be sold for five years from the date that the credits were issued. In the interim, we try to find income-generating uses to draw tourism and tax dollars so that they begin contributing to the town’s bottom line right away. Our goal, after the five-year hold time has passed, is to offer these beautifully restored homes for sale to folks looking to make Millersburg their home.”

 

The Allure of Millersburg
Even before the Millersburg Military Institute became renowned for turning out top-notch cadets, the town had become somewhat of an educational mecca. In the mid-1800s, both the Millersburg Female College and Kentucky Wesleyan College were founded there.

 

The official Millersburg Female College catalog described Millersburg thusly: “The town is situated in the midst of one of the most healthful, beautiful and retired sections of Central Kentucky. It is connected by railroad and telegraph with all parts of the United States, being easy of access from North, South, East and West. The community is intelligent and refined. The country as far as the eye can reach is enchanting, and the air from rolling hills and green bluegrass and clover pastures comes fresh and pure.”

 

Smith knew that 150 years later, the College’s assessment of Millersburg and its surroundings is accurate still today, making the town a perfect candidate for Community Ventures’ rural revitalization strategy.

 

In 1870, the property at 902 Main was owned by former judge William H. Savage, who along with partners James McMiller and A.G. Stitt had purchased the Millersburg Female College, located across the street.

 

According to the catalog, while the school itself could accommodate 50 students, pupils coming “from a distance” were required to board with the principal and his wife. They were asked to bring with them necessities like towels, soap, table napkins and rings as well as umbrellas and both walking and overshoes. Back in the day, the residence was likely alive with all the laughter and mayhem a house full of young women can produce.

 

Because most of Community Ventures’ renovated properties are named with a nod to their past, 902 Main is now known as The Boarding House.

 

For a renovation the magnitude of The Boarding House, Smith knew just who’s expertise to tap—Mike Mitchell of Mitchell Construction Management, a company specializing in high end restoration, and interior designer Andra Gyor, owner of Janice’s At The Saltbox in Lexington. Both Mitchell and Gyor had been instrumental in the recovery of Mustard Seed Hill and numerous other Millersburg properties critical to Community Ventures’ ‘whole town’ revitalization concept.

 

Unearthing “Phenomenal Craftsmanship”
Mitchell, a self-described preservationist reluctant to ever tear down an historic structure, admits he had his hands full on many of the Millersburg properties, and The Boarding House was no exception. As Mitchell and his crew peeled away 200-plus years of renovations—some good and some bad—he eventually reached what he describes as the “phenomenal craftsmanship” of what was almost assuredly the original four-room structure. Unlike so many homes of that time period found nearby, The Boarding House did not begin as a log cabin but was timber framed by hand— no easy feat in the early 1800s.

 

Mitchell explains that this type of framing required chiseling out all the mortices and hand-sawing all the tenons, finished with hand-hewn dowels pounded through to secure them.

 

A second addition constructed just a few years later, Mitchell mused, was almost certainly done by the same remarkable craftsman, although it was apparent to him that the foundation was laid by a different mason than the first.

 

In the late 1800s, likely around the time the Savage family lived there, Mitchell says that the home was expanded and “Victorianized” by the addition of a steeper pitched roof, large front porch and ornate brackets and latticework. Subsequent poorly-done additions of the 1940s and 1970s were not period appropriate and were not restored but replaced.

 

Marrying Past and Present
Gyor, whose interior design specialty is creating spaces that are “comfortably elegant,” masterfully carved out places in The Boarding House where fun family gatherings can be enjoyed in one space while quiet conversations happen simultaneously in another. Her superpower, as evidenced by her work in so many of the Millersburg properties, is sourcing high-quality, 18th century period-appropriate furnishings that are built bigger, deeper and more comfortable for 20th century bodies.

 

“I am a stickler for quality,” stresses Gyor. “Especially when I am designing spaces for entertaining or housing guests. When you invest in a piece of furniture, it should be built to outlast you.”

 

With renovations complete, The Boarding House is now a lodging option for visitors to Millersburg and will be a regular stop on the tours given to brides looking to book their dream weddings at Mustard Seed Hill.

 

View The Boarding House on Airbnb
According to Victoria Benson, President of Mustard Seed Hill, “When we have a vision of what we think a property should look and feel like, it is important to Community Ventures to always honor the history and protect the legacy of that place,” explains Benson. “When we are breathing life into something like that, we have to go above and beyond to make it special. It has to feel like a destination where people want to go to spend their dollars. We want to keep those dollars in Millersburg to help boost the town’s economy, whether it’s through Airbnb stays, restaurants, shops or schools.”

 

Mitchell agrees. “It is incredibly noble the work that Community Ventures is doing, and vitally important to the town,” notes Mitchell. “The hope is that it will attract people that want to invest in Millersburg through home and business ownership. The goal is that by making the town a destination, much like Midway and some other of Kentucky’s small-town jewels, it will change the critical mass and Millersburg will thrive once again.”

 

This project was made possible in part by the Jan Wagoner Millersburg Revitalization Fund and a coalition of investors dedicated to preserving the soul of Kentucky’s small towns. Support was provided through Historic and New Markets Tax Credits, with leadership from the Kentucky Heritage Council—spearheading the state’s historic tax credit efforts—in partnership with the Kentucky Cabinet for Tourism, Arts, and Heritage.

 

Invest in Legacy
Help us save more history like The Boarding House. Contribute to the Jan Wagoner Millersburg Revitalization Fund and be part of the next chapter of Kentucky’s historic renewal.