Fredericksburg's developers can learn from redevelopment of historic properties and mixed-use projects elsewhere in Virginia

Date published: 9/30/2006

By RUSTY DENNEN

Fredericksburg wants to do more to make the connection between its mother lode of old buildings and the people who wish to live and shop in them.

That was a key note of a first-ever developers' forum Thursday night at Mill Race North, put on by the city's Economic Development Authority and the JumpStart! Fredericksburg initiative.

About 50 local developers turned out for sessions on historic rehabilitation tax credits, mixed-use development, and incentives that have fueled dozens of projects around the state.

Staunton architect William T. Frazier of Frazier Associates said his company has redeveloped a number of historic properties using the tax credits.

Local, state and federal incentives, "and a growing interest in conservation and preservation" are making such projects desirable for developers, Frazier said.

The company redeveloped Fairfax Hall, a former girls' school in Waynesboro, for example. The $5 million project created 50 apartments with a large space for commercial use for social functions, weddings and the like. And a former knitting mill in Winchester was converted into corporate office space, using the tax credits.

"They can be very lucrative," Frazier said. A combination of state and federal credits could cover up to 45 percent of rehabilitation costs. "So it's a huge incentive." Local tax abatement is another incentive.

He said there are a few caveats: "Obviously, you need to be familiar with tax credits. This is not one to learn on. And you need a contractor who listens."

For example, any work or demolition done on a property before it's properly reviewed for eligibility for credits could be a costly mistake.

Echelon Resources Inc. hopes to begin work soon on a 32-unit condominium in the old Maury School. The company, which did not have a representative there, hopes to use state historic rehabilitation tax credits for the project.

Joe Wilson, a former Fredericksburg City Councilman and a local businessman, was among those at the session. Wilson is finishing up his first project in the city using the tax credits.

He's refurbishing the 1907 Railway Express Building next to the Purina Tower on Princess Anne Street for offices and a restaurant.

"It's been very enjoyable. No problem," Wilson said.

Date published: 9/30/2006