Council approves support for low-income projects

Lynchburg City Council has agreed to write letters of support for five low-income housing projects hoping to secure federal tax credits.

The Low-Income Housing Tax Credit program assigns applicants points based on multiple factors, including whether the locality is in favor of the development. Letters of opposition hurt the point count, but don’t necessarily lead to a rejection.

A majority of City Council felt the proposals before them represented good projects, noting one would serve people with disabilities while two would entail the rehabilitation of existing buildings rather than putting new construction on green space.

The city was contractually obligated to endorse one project. In 2006, officials agreed to support the controversial Timber Ridge Apartments complex.

In exchange, developers agreed to move away from their original site near the Richland Hills neighborhood, which strongly opposed the project. Timber Ridge, now seeking tax credits for its third and final phase of construction, transferred to a nearby site on Timberlake Road.

Another project on the table, Armstrong School Apartments, has a tentative contract with the city. Council gave that project’s developers an option to buy the now-defunct Armstrong School building for conversion into apartments. Officials retain the right to reject the final purchase offer in the event it is deemed unsatisfactory.

The remaining projects discussed were: Victoria Ridge Apartments, a Rush Lifetime Homes Inc. project that would build apartments for people with disabilities on currently vacant land on Spring Street.

Village Oaks Townhomes, which would renovate the existing Village Oaks development on Carrington Road. And finally, Cameron Lofts, which would convert the industrial Barker-Jennings Corp. building into apartments.

The Cameron Lofts project was also granted a rezoning and a conditional land use permit Tuesday.

The vote to submit letters of support for each project passed 5-2 with councilmen Scott Garrett, At-large, and Jeff Helgeson, Ward III, dissenting.

Garrett continued to be concerned that the city does not have an adequate understanding of its housing needs, an issue he has raised frequently during his time in office. Council has asked its staff to develop a citywide housing plan, but that project has not yet begun.

Helgeson disapproved of the use of federal tax credits, questioning why the developers had to rely on government aid in order to make their projects successful.

Several developers have indicated they will not move forward without tax credits. Other council members defended that position Tuesday.

In other action taken during the City Council meeting:

- Money was set aside for anticipated business tax refunds. The Virginia Supreme Court has ordered the city to pay $267,404 to English Construction after concluding local officials were using a flawed business license tax formula.

Other city businesses are expected to come forward seeking refunds. Council set aside $500,000 for that purpose. The money was taken from the self-insurance fund, which the city uses primarily to pay court costs and judgments.

- $440,608 was transferred out of the textbook reserve fund to cover the Lynchburg City Schools’ controversial 2008 deficit. The money was shifted into a contingency fund that will be tapped if the schools are still stuck in the red at the end of this fiscal year.

Educators say they’re on track to realize a surplus that would render the contingency unnecessary. In that event, the money will revert back to the textbook reserve.

- A small portion of a public right-of-way was given to Norfolk Southern Corp. to allow for the construction of new tracks at the Kemper Street Station.

A short length of track is being built for the expanded Lynchburg-D.C. rail service set to begin Oct. 1. The new service will bring a second daily passenger train to the U.S. 29 corridor. Unlike the existing train, the new route will begin and end in Lynchburg. The tracks set for construction will be used to house the train overnight.

- The ownership of Ericsson Drive was transferred from the city to Liberty University. Ericsson Drive is a short stub of a road located on the LU campus near the LaHaye Ice Center. At the school’s request, the city has already given up plans to extend the street.
Given that, city officials also asked LU to assume responsibility for the existing road. LU agreed and the matter was approved Tuesday.