Published: March 14, 2007 11:57 am      

Mayor, council endorse East Side School project

CUMBERLAND - When C.E. Mines and his wife moved to Cumberland several years ago, they considered buying the former East Side School.

The blighted property is one of the first things those entering the city via westbound Interstate 68 see. The family opted not to take on the property but he's thrilled now that someone has plans to revitalize the building.

"I will lend all the support I can to this project ...," Mines, a Realtor with Coldwell Banker Professional Real Estate Services, told city officials during a special meeting Tuesday. "I honestly think any project that goes into a dilapidated area like East Side should get the full support of the council and city to make a project like that happen."

The five officials unanimously endorsed it last night. Originally, the mayor and council were to vote on the endorsement last week but Councilman Terry Rephann said he learned of it only that day and asked that a vote not be taken then.

Tuesday's endorsement will be part of an application Al Borvice will submit for nearly $6 million in the Community Development Association Federal Low-Income Housing Tax Credit Program next week. Funding is awarded on a competitive basis.

City Administrator Jeff Repp said the mayor and council have indicated their support in two ways with one a 15-year tax abatement not to exceed 60 percent and the other $200,000 worth of capital support. He said because it has been a blighted property for many years, officials felt the cost of improving Reynolds Street as well as water and stormwater improvements was "worthy of this project."

Borvice, a developer with the Housing Development and Neighborhood Preservation Corp. in San Francisco, said 52 units will be developed on the three-acre site at 100 Reynolds St. About half will be in the school with two-story townhouses with a third floor loft apartment to account for the rest.

City officials also heard a public presentation about another housing project they may be asked to endorse for the same tax credit program later this year.

Paul Fitch, representing The Landmark Group - Fitch Development, talked about the Klots Mill Lofts, which calls for the renovation of the former silk manufacturing company at 917 Gay St. New townhouses also are planned there, bringing new housing to 58 units with 34 loft apartments in the building that once housed the Tri-State Discount Center and then later the Western Maryland Food Bank.

He said the Housing Authority of the City of Cumberland will be a 10 percent equity owner on this project and will shadow the group through the tax credit application process. The hope then is to join together on other projects.

Councilman Terry Rephann asked if Fitch knew to what extent the city would be asked to participate. He also asked if any would be available for homeownership.

Fitch said participation could involve subsidizing part of the cost or working with the project, but that it would be the minimum of what the state requires. He also said it doesn't have to be the city necessarily, but a government entity, such as the county, that would be needed.

As for homeownership, the project must comply with the state's regulations for the tax credit program for 15 years. With the housing authority on board, it may be possible that some will be available for purchase after that period. The rest then could be bought by the housing authority although he cautioned no agreement with that group has been signed.

The city's Municipal Planning and Zoning Commission approved recommending that the area be rezoned from industrial-general to residential-urban on Monday.

Ron Hampton, a member of that commission, voted in favor of the rezoning but came to the council Tuesday and said he'd made a mistake because he hadn't visited the site prior to his vote.

He did yesterday and stopped by Klavuhn Moving & Storage - Mayflower Agency where he watched as they backed a tractor-trailer into the dock, which sits across from the proposed development.

"It didn't take but a heartbeat to realize we're going to have a problem if you put this development by Klavuhn," he said, noting he's concerned the development may force Klavuhn to move.

Mayor Lee Fiedler said in no way does the city want Klavuhn or the developer to vacate the area. He said as the project goes through its various hearings and steps, concerns such as parking will be addressed.

Gary Simpson, warehouse manager for Klavuhn, said the company has taken a step and sent a letter to the city's Engineering Department to follow up on parking concerns.

Maria Smith can be reached at msmith@times-news.com.