ORWIGSBURG - The attempt to convert a building into apartments in the borough might have one last chance.
Barefield Development Corp., Pottsville, is again submitting an application to the Pennsylvania Housing Finance Agency for tax credits for the former Fessler USA building project.
The idea is to bring new life to the approximately 40,000-square-foot building by converting it into 20 apartments for the elderly. The Orwigsburg Area Free Public Library would also have space in the building.
The deadline to apply is March 14.
"If we don't get approved this time, the project is probably done," Craig Shields, Barefield chief executive officer, said Thursday about the possibility the project will not come to fruition.
Barefield had applied last year for $6,943,300 in tax credits for the building at 216 W. Independence St. that has been vacant since July 2009. However, the corporation was not successful.
Shields said Laura Northup, a consultant from Mullin & Lonergan Associates Inc., a Camp Hill consulting firm, will hand-deliver the latest application.
Northup confirmed Monday she will deliver the application Friday to PHFA.
Barefield should know by June if the project is approved, Shields said, adding he is optimistic that this time the project will be funded.
"I think we got a pretty good shot," he said.
According to the PHFA's website, the agency's goal is to assist in providing affordable housing for low-income people. Credits are sold to owners of housing developments to reduce their tax liability. Cash is then given to the company that had credits for the project and the credit can be taken for a 10-year period as long as the development adheres to applicable rules.
Shields said it is possible the project could still go through if it this latest bid for funding is unsuccessful, but it is not likely.
"We would think about it but I would say its probably dead if it doesn't get funded this time," he said.
Shields said about $75,000 has been spent on the project, $20,000 from the borough and about $55,000 from Barefield.
The 18-month option on the building from Walter Meck, president and CEO of the now defunct Fessler USA, was set to expire in February but was renewed until December 2014, Shields said.
Both the Orwigsburg Borough Council and the Schuylkill County commissioners have rallied around the project.
The borough council voted in December 2012 to loan up to $25,000 to H.H. Fessler Knitting Co., secured by a second mortgage on the property in the borough and the parking lot. The funds will be distributed when Barefield submits required invoices and a recommendation for payment. Lonergan said previously the money needed to be loaned to Fessler so the borough can get the mortgage on the property, because Fessler owns the property.
The county commissioners approved a $25,000 grant for the effort last June.
Orwigsburg borough Manager Mike Lonergan also said this could be the final try to bring new life to the old Fessler building.
"If it's not funded this time, it's not likely to be resubmitted a third time," he said.
Still, he touted the selling points of the application.
"It's a very strong application. It's a very worthwhile project. The building is in the center of town and would fit well with the neighborhood," he said.