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.
Also in attendance was Hunter Greenlaw Jr., a local developer and principal of GLMG Inc. Greenlaw was instrumental in one of Fredericksburg's largest downtown redevelopment projects: converting a complex of industrial buildings along Kenmore Avenue in the late-1980s into high-end offices and apartments known as Mill Race.
"I'm here to support JumpStart. I think they've done a wonderful job," he said. "I believe this will be one of the few reports that won't be sitting on a shelf collecting dust."
JumpStart is a development initiative launched by the EDA over a year ago. Working with Annapolis-based consultant Basile, Baumann, Prost & Associates, the agency got a final report in June with concepts about what Fredericksburg's future development should look like.
Recommendations consist largely of detailed drawings of 14 areas of the city, suggesting how smart development should look.
Robert S. Mills, architect and principal of Commonwealth Architects in Richmond, said there's growing demand and plenty of incentives for mixed-use projects, one of the firm's specialties.
Mills' company has been involved with a number of mixed-used developments in Richmond.
In areas where old buildings and commerce must coexist, "recycling buildings is the best solution," he said.
For example, the John Marshall Hotel in the state capital was converted into 175 residential units, with conference space in the lower level. A smaller Richmond hotel was rebuilt to create 32 apartments with retail space and parking in the basement.
"Redevelopment and mixed-use and the historic district are getting Richmond moving again," he said.
Some in the audience were not so sure that model would work downtown, because, one woman noted, it has fewer large buildings downtown and its mixed-use projects tend to be done on a much smaller scale.
Kellie Brown, with Basile, Baumann, Prost & Associates, said incentives are available for redevelopment and mixed-use projects.
Localities can help foster public-private partnerships by streamlining the development process, favorable zoning, tax incentives and innovative financing.
To reach RUSTY DENNEN:
Email: rdennen@freelancestar.com