Published: November 19, 2009 11:54 pm      

Booth Tower work begins in January

San Diego company buying housing facility from Salvation Army

CUMBERLAND — Work on a wide range of upgrades to William Booth Tower is set to begin in mid-January as ownership transitions to San Diego-based The Hampstead Companies from the Salvation Army.

The construction budget for the low-income facility with 114 units for seniors, located at 220 Somerville Ave., is $4.98 million, with more than 80 percent of the project focusing on “green” improvements. Greg Gossard, a partner with Hampstead Development Group Inc., asked the Allegany County Board of Commissioners to support the project with a tax credit worth up to approximately $342,000 over the next 30 years.

The sale of the building is expected to be finalized by Dec. 10, Gossard said. Salvation Army Maj. Sue Dewan has told the Times-News that part of the proceeds could be used to help address a growing homeless issue in Allegany County.

Gossard made the request Thursday during a public work session at the County Office Complex. On Nov. 10, the Cumberland mayor and council approved a Payment in Lieu of Taxes program known as PILOT. Gossard said if the county assists, the city’s liability would be cut in half.

Acting County Administrator David Eberly said he and County Attorney Bill Rudd will review the matter. The earliest opportunity for the commissioners to act is Dec. 3, the next legislative day on the county’s public meeting schedule. Without conveying where he stood on the issue, Eberly noted the Booth Tower PILOT program is the only one with which the county assists that does not lead toward home ownership.

Other PILOT agreements the county has entered into include the YMCA, public housing authorities in Cumberland, Frostburg and Allegany County, and an existing one at William Booth Tower.

The Hampstead Companies and partner National Housing Trust Enterprise Corp. both specialize in the preservation of existing HUD-designated projects. The California company has participated in nearly 3,500 such developments across the country and about 50 in Maryland.

“A lot of the work we’re doing is focusing on the community space,” Gossard said. “It’s not in very good shape.”

Currently, 110 apartment-style units are available to tenants and the facility has nine vacant units. Gossard said the Salvation Army had recently upgraded the apartments’ kitchen cabinets, flooring and plumbing fixtures, and the work to begin in two months will focus on making the living areas more enjoyable.

Kitchens will be re-arranged to allow natural light in and balconies will be added to those units that do not have them.

Many of the improvements will have an environmentally friendly theme, Gossard said. A green roof will be installed as well as low-flow sinks, showers and commodes in each apartment. In addition, a vegetable garden will be created to allow residents the chance to grow and eat their own food.

Tenants will be rotated through temporary “hotel units” within the complex as work on their individual apartments begins. No tenant will be permanently relocated, Gossard said.

Gossard said with the struggling economy and other factors, The Hampstead Companies’ application for financing had to be strengthened because the original loan application noted a negative net operating income after 10 years, the length of the first proposed PILOT.

After the PILOT ends, the project could contribute approximately $27,119 per year to the county’s treasury, Gossard said, “so, it’s an increase in tax revenue for the county.”

Commissioner Dale Lewis received assurance that The Hampstead Companies will use an experienced and available local property management firm. Gossard said there will be a full-time manager on-site and Edgewood Properties employees also would be available.

Gossard said a Washington, D.C., area company has been awarded the general contract. Local companies have secured about $900,000 in subcontracts, he said.

Contact Kevin Spradlin at kspradlin@times-news.com.