By GEORGE SOUTHERN
Cape Charles Wave
November 29, 2012
The Virginia Department of Historic Resources has rejected an application by the Town of Cape Charles for tax credits in association with conversion of the old school at Central Park into a 17-unit apartment building.
The Town has signed a contract to convey the school and adjoining parkland to developer Echelon Resources, Inc. The contract specifies that Echelon will pay the Town $10 for the school and parkland, and the Town will pay Echelon $41,000 toward repairs to the school.
However, Echelon has made clear from the beginning that it will not close on the deal unless state and federal authorities approve the request for tax credits.
Echelon hoped to receive 25 percent credit from Virginia plus 20 percent credit from Washington, for a total of 45 percent of the total cost to convert the building to apartments.
The application for tax credits was signed by Town Manager Heather Arcos because the Town remains the owner of the property. The application was prepared by Echelon consultant Paige Pollard.
The November 21 letter to Arcos (shown above) rejects the application for three reasons: [Read more…]