SUFFOLK
A Portsmouth company has been tapped to build the most ambitious redevelopment project in Suffolk's history - again.
This time around, the project is a lot smaller.
City staff this week told Associated Contracting Services that its proposal for the $17 million project was "in the best interest" of the city, beating out one other finalist. The two sides still must finalize the deal.
"I think all parties involved are eager to get this under way," said Charles Felder, development director for the Suffolk Redevelopment and Housing Authority.
Associated Contracting was slated to be the general contractor for the project two years ago, with Maryland-based Cornerstone Housing LLC as the master developer.
But the city sought new proposals after the City Council voted last year to build a public health building at The Fairgrounds, drastically changing plans for the 17-acre site.
This time, Cornerstone Housing is no longer in the picture, and Associated Contracting is set to be the master developer. The company has done much of its work in Portsmouth, where it is working in the Westbury development, and in Norfolk, said Gary Haste, its director of development.
Plans for The Fairgrounds at one time included 170 new homes. That number was scaled back with the addition of the health building.
Haste said the latest proposal calls for about 34 single-family homes and 36 multi family units. They would be sold at a mix of affordable and market prices.
Once a deal is in place, it's conceivable his company could finish some homes by the end of this year, Haste said.
The city would not comment Wednesday because the matter is under negotiation, said Debbie George, a city spokeswoman.
Last fall, city staff said they had changed strategy. Instead of doing all the design and infrastructure work, they would hand those responsibilities to the developer. The move was expected to close a $3 million funding gap.
The city has already spent at least $10.5 million on the project, most of it on improvements on East Washington Street and property acquisitions.
The Fairgrounds, in a stretch of just a few blocks, was "the center of black life" in Suffolk the 1940s, '50s and '60s, said Ross Boone, a planning commissioner. Doctors, dentists, lawyers, shops, a theater - it had it all, he said.
"Whatever you needed you could find it right on The Fairgrounds," Boone said.
The area deteriorated, buildings went vacant or were demolished, and in 2003 the City Council approved a plan to redevelop the land.
Dave Forster, (757) 222-5563, dave.forster@pilotonline.com
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Strange
You know whats strange Moose? The units in Westbury (where the builder/developer is coming from) are selling for less than your $243,000/unit figure. The units in Westbury which from what I hear will be duplicated closely in Fairgrounds are selling for around $175,000 to $200,000. Wow . . . thats a little less than the cost/unit. Another thing thats interesting; how about that project on W. Washington across from the Kangaroo. Those units started at $225K and know they can't sell them for $150K. I'd hate to break it to the City but right now ain't the time to be getting into the "subsidized" housing market. This is "subsidized" housing built on taxpayer money and the taxpayers of Suffolk ought to be red-hot mad!
Do the math!
$17 MILLION for 70 housing units, that's $243,000 per unit, not to mention the $10.5 MILLION already spent on improvements. Is it just me or is it clear to anyone else that the city has NO BUSINESS being in the development business? If this was a good idea to start off with, private developers would be all set to design, fund and build this development themselves. Right now the housing market is terrible, there are NO buyers and those that are buying are buying very cheap. This pet project of the city officials is a HUGE WASTE of our tax dollars. WE (taxpayers) can't afford our money to be recklessly spent on projects like this. The city officials seem to forget that the citizens of the city are having a tough time making ends meet. The resale value of our houses have fallen, that means TAX ASSESSMENTS should come DOWN, that means the city has less funds. It's time to cut back on wasting our tax dollars on money pits like this. It's time for the city to cut back on all these un-necessary or nice to have projects and get back to doing their core mission. It's also time to get rid of "professional politicians", the root of the problem.