Interest in Lynchburg redevelopment projects renewed

Lynchburg saw renewed interest last week in two major redevelopment projects that were stalled earlier this year after failing to win federal tax credits.

The Armstrong School and Barker-Jennings Corp. buildings were among a series of local projects vying for low-income housing tax credits over the summer. Nearly all of those entries were rejected because of what developers described as an unusually competitive application cycle.

These two projects, both of which involve converting existing buildings into apartment complexes, are now back before the city with renewed hopes for success.

The Armstrong School venture is still operating under the same proposal, but developers are taking steps to strengthen their bid for tax credits. The Barker-Jennings project has been handed off to a new developer and is offering a revamped plan that does not include low-income housing tax credits.

The Armstrong School, once an all-black elementary school located on Monsview Place off Rivermont Avenue, is a city-owned building that has sat empty since 2002. It is currently being eyed by The Landmark Group, a North Carolina firm that hopes to transform the defunct facility into 60 affordable apartments. Landmark previously did the City Market Lofts redevelopment in downtown.

At one point, the company had an option to buy the old school from the city for $500,000, but that contract expired shortly after the tax credit announcements were made in August.

Landmark has since regrouped and is now preparing to apply for the next round of credits. To that end, it is asking the city to rezone the school to allow for the by-right construction of apartments. Proper zoning will boost the project’s score with tax credit officials.

The rezoning request is scheduled to be heard by the planning commission next month. Last week, City Council voted to extend to Landmark a second option to buy the school, another asset that will enhance its tax credit score.

The new option mirrors the earlier deal and still carries a $500,000 price tag. Granting an option to buy does not obligate the city to follow through if it later deems the sale to be undesirable. Any final agreement to sell will require a public hearing and another vote of City Council.

In the Miller Park area, a development team that recently purchased the old Piedmont Mills building in downtown is also proposing to take on the Barker-Jennings Corp. site on the corner of Campbell Avenue and 13th Street.

The Barker-Jennings building is a circa-1920 structure built in the Gothic Revival style. It was originally used as a dormitory for factory workers. The building, which stands five stories tall, is part of a small knot of old manufacturing sites in that area that make up the nationally designated Kemper Street Industrial Historic District.

Barker-Jennings, a wholesaler of hydraulic equipment, has been looking to sell the property and move to a smaller location. An earlier redevelopment proposal crafted by a North Carolina builder was dropped after the tax credit rejection.

Now a team of Richmond developers is proposing to convert the building into 107 apartments designed to appeal primarily to college students. The project requires a conditional use permit from City Council.

The permit request was reviewed by the planning commission last week and unanimously recommended for approval. Council is expected to consider the matter next month.

The project backers, who have formed the ad-hoc Jennings Dorm LLC, say they do not plan to pursue low-income housing tax credits although they may make use of other affordable housing financing programs. They also plan to apply for historic tax credits.