Published: March 14, 2007 08:03 am      

Gay Street housing project, development of former East Side School on tap tonight

CUMBERLAND - The Klots Mill project will be presented to city officials during a special meeting today at 6 p.m. in City Hall.

The Landmark Group - Fitch Development of Winston-Salem, N.C., plans to apply for the Community Development Association Federal Low-Income Tax Credit Program this spring.

Should funding be awarded, the rehabilitation of the former Tri-State Discount Center at 917 Gay St. could begin in early 2008.

Also as part of the meeting, officials will vote whether to endorse another housing project for the tax credit program.

Al Borvice of Housing Development & Neighborhood Preservation Corp. in San Francisco intends to develop about 54 units at the former East Side School by renovating that building into apartments and building new townhouses and apartments adjacent to it.

City Administrator Jeff Repp said last week that the city would support the project in two ways. The developer would receive a 15-year abatement on city property taxes, not to exceed 60 percent, and the city would provide $200,000 in public improvements including water, sewer, road and storm water.

Officials were scheduled to vote on the endorsement during last week's public meeting, but Councilman Terry Rephann said he didn't believe he or members of the public had adequate notification; therefore, the vote was rescheduled for today.

Borvice said nearly $6 million will be sought from the program and applications are due March 21.

The entire project is estimated to cost about $8 million. If tax credit funding is received, construction could begin in September and take a year to 18 months to complete.

Units are to range in size from around 500 to 1,400 square feet. Intended for moderate-income families, Borvice said at last Tuesday's meeting that a one-bedroom apartment in the school will rent for $530 a month, plus utilities. The highest rent is $660 to $725 a month for a three-bedroom unit.

East Side School was built in 1921 but closed in 1984 following consolidation. It has remained vacant since then and has been a visible, blighted property while traveling west on Interstate 68.