Published: August 08, 2007 11:59 am      

New owners to give Booth Tower $5M makeover

CUMBERLAND - Tenants of the William Booth Tower can expect to see new owners and nearly $5 million in renovations in the coming months.

They won't, however, see an increase in their rents despite the renovations that come to about $43,000 per unit.

Greg Gossard, representing The Hampstead Companies of San Diego, asked for the city's endorsement. Such approval and participation is necessary to apply for $845,000 from the Community Development Association Federal Low-Income Tax Credit Program.

City Administrator Jeff Repp said a payment in lieu of taxes agreement, equivalent to $200 per unit for a 10-year period is what is being considered as a contribution from the city.

The project was one of three discussed by council during Tuesday's meeting.

Owned by the Salvation Army and located at 220 Somerville Ave., Booth Tower is a seven-story, 110-unit complex that serves low-income and/or disabled seniors. The more than 79,000-square-foot complex was constructed in 1977, according to the Maryland Department of Assessments and Taxation.

Hampstead will partner with the National Housing Trust - Enterprise Corp., which also had representatives at last night's meeting. The trust, a nonprofit group, purchases multifamily housing, particularly those that provide housing to low-income residents and seniors.

Once sold, the Salvation Army intends to use the proceeds and invest in transitional housing in the city and surrounding areas, Gossard said.

He also said the building currently serves residents at or below 60 percent of the area median income, a policy the new owners intend to keep. The tax credit program, however, also requires that 10 percent of the units be for the disabled.

Booth Tower has 4 percent of its units designated as such, meaning additional renovations will be needed to some kitchens and bathrooms to meet the federal standard.

Councilman Butch Hendershot asked how the work will affect the tenants.

Gossard said tenants will be relocated within the building for up to a week at a time.

Renovations include a new front entrance, barbecue area and gaming pit for such activities as shuffleboard. Windows will be replaced, the heating and air conditioning system will be updated with current community spaces, chapel, the arts and craft room and other areas to be spiffed up as well.

Another important factor, though, is to make the complex more energy efficient, with Hampstead planning to apply for Green Communities funding.

Gossard said the company will apply for the tax credit program in September with the awards announced in December. The purchase of the building is expected to be completed by March 31, 2008, with rehabilitation to begin the following month.

The project endorsement will come before council in two weeks for a vote.

Also Tuesday, officials unanimously approved endorsing both the Klots Mill Lofts project at 917 Gay St. and the East Side School Apartments plan at 100 Reynolds St. Both are seeking funding from the same tax credit program as the Booth Tower project.

Also as part of the Klots Mill project, which is to consist of 36 loft apartments with townhouses to be built nearby, officials voted to rezone the area from industrial-general to urban residential. Klots Mill Loft LLC, a limited liability company, is the developer on the former Tri-State Discount Center that once was a silk manufacturing company. The Landmark Group - Fitch Development of Winston-Salem, N.C., is behind the project.

The city's contribution in this case is a payment in lieu of taxes for 15 years with $11,200 to be subtracted from the property tax bill annually.

The East Side School project, which is to be developed through East Side School LLC, has a different city contribution because of the "unique nature of the project," Repp said.

The developer is to receive a 15-year abatement on city property taxes, not to exceed 60 percent. The city also plans to provide $200,000 in public infrastructure improvements. Money could come from a number of sources for the improvements including Community Legacy, Community Development Block Grant and the water and sewer improvement fund, Repp said.

Al Borvice of Housing Development & Neighborhood Preservation Corp. in San Francisco attended Tuesday's meeting. He has said previously that the school will be converted into apartments with new townhouses and apartments constructed adjacent to it.

East Side was built in 1921 but closed in 1984 following consolidation. It has remained vacant since then.

Borvice applied for funding in March and of 20 applications, eight were awarded with the East Side project ninth. The application will be resubmitted this fall.

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