CAPE CHARLES — The future of the town’s former high school came to a vote Thursday with a unanimous decision by the Town Council for its sale to Echelon Resources, Inc. to be converted into rental apartments.
A public hearing on the sale was held prior to the council discussion and vote with both oral and written comments presented into the record that included support of the Echelon proposal and sale; support for the Old School Cape Charles group and its desire for the school to be turned into a community center; and support for seeking additional proposals
“Just know that not everybody agrees on everything,” said Mayor Dora Sullivan, in her opening remarks. “This is probably the second time in my years as mayor that I have not agreed with my council — but I respect and trust my council, we just disagree some times.”
Echelon Resources, Inc. of Richmond submitted an unsolicited proposal for the purchase, historic rehabilitation and redevelopment of the former high school.
A summary provided of the primary terms of the contract include: “sale price of $10; to be converted to 17 one-bedroom and efficiency rental units with no public space; appropriate zoning clearance by Town; property to be subdivided by Town; ALTA survey and title insurance policy by Echelon; water and sewer connection charges reduced by 50 percent; insurance proceeds for repair of earthquake damage paid to Echelon; six-month property review period by Echelon prior to closing; construction to commence within 90 days of closing; and construction to complete within 12 months.”
A community group, Old School Cape Charles, formed in response to the proposed sale seeking to develop their plans and funding in their desire for the former school to become a community center.
Bob Panek, assistant town manager, included in his remarks that “the sale of real property does not require public bidding;” “reducing the connection charges has no affect on the monthly water and sewer bills;” a lease proposal from Old School Cape Charles “would require the Town to absorb the following costs: electricity and heat for one year, property insurance for at least 5 years, and water and sewer service for 14,000 gallons per month for 40 years and, the town would not collect any taxes from use of the property.”
Some of the public hearing comments included:
“I would like to address the scare tactic of a tax increase circulated by the Town Council and staff … I sought out the Onancock town manager and asked him if Onancock’s community center had caused any tax increase in their town, and I was told that indeed there was no tax increase caused,” said Frank Wendell, councilman-elect and a leader in the Old School Cape Charles group.
“Old School Cape Charles LLC has presented the town with a potential lease agreement that is patterned after the Onancock lease. Funding for the Cape Charles Community Center includes: seeking grant funds, selling historic tax credits, corporate donations, private donations, fundraising efforts, volunteer labor contractor bartering, and support and partnership with the Town of Cape Charles as referenced on page 45 of our Comprehensive Plan,” said Wendell.
“Why not let them compete with other companies and give the high school to whichever entity can offer the most back to the town,” said Erin Harvey, about only having the two unsolicited proposals to consider and encouraging the town to seek other developers to offer proposals.
“What I have not seen or heard from the promoters of the community center are any verifiable facts — only opinions,” said John Burdiss, asking “what are the specific purposes that the community center is supposed to serve, exactly whom will it serve, and what justifies the alleged need” and “how do the promoters propose to pay for any part of the renovation or any part of the operating costs?”
Dorie Southern expressed concerns about the sale of the school on property values in the historic district and about not having seen the developer. She said she is a “come-here” but where she comes from “when a developer wanted to develop something they came to the neighborhood, they gave presentations, they told us why they wanted to do it, how they were going to do it.”
Andy Spagnuolo said he was in support of the sale of the school to Echelon “in terms of economics and demographics, I don’t see how you can vote otherwise.”
“You are not stuck with the obligation to give away a landmark building for $10 — you fortunately have the luxury of committed local citizens who are prepared to do whatever it takes to raise the money to renovate this building and to make it available publicly,” said Kevin Martingayle, attorney speaking on behalf of Old School Cape Charles. “They don’t get anything out of it, there is no profit motive here, there is nothing but the satisfaction of seeing this thing preserved for themselves and for the future.”
Each of the Town Council member gave remarks during the council discussion before the vote.
“We have spent a great deal of time and pondering,” said Town Council member Mike Sullivan, about his decision. “I cannot in clear conscience put a financial burden of this size on the people of this town.”
“There is no money, I read through their proposal — it is all hope,” said Councilman Chris Bannon, about the Old School Cape Charles proposal.
Councilman Larry Veber said he had talked with Wendell “as late as today” as well as a number of other times, and had also spoken with Lisa Harman and Karen Jolly Davis about his compromise of having the school’s gym made into a community center.
“Compromise is important and I got no compromise from anybody with the community center,” said Veber. “But I guarantee you I would have voted to put that gym into a community center.”
“It has not been entered into without a great deal of thought, research, and work,” said Councilman Steve Bennett, about the decision to sell the school to Echelon, saying council has “met with Echelon, deliberated, discussed, weighed the options, talked to references, held public information session, negotiated, — and have not come to this decision lightly.”
“We have investigated fully in hopes of best serving the majority of our residents needs,” said Bennett.
“I don’t think there is anybody in this town that is more passionate about the historic resources we have here and what a financial asset they are to this town,” said Evans, saying he sees the sale to Echelon as “a great opportunity to maintain and hold on to a great historic asset,” and the school is “going to be restored to its original grandeur.”
“I have listened attentively and respectively to everyone — read every e-mail that has been submitted, considered everything keeping in mind the best interest of the entire town,” said Councilwoman Joan Natali, about her decision for the sale to Echelon. “I think this is the best option that I see for the town.”
By Gloria Bradley
Eastern Shore News
Jun 20, 2012