Mill expected to receive approval

One of the state’s largest brownfield redevelopment projects has smoothly cleared an initial hurdle, but the biggest obstacles might yet wait.

Waynesboro city staff have recommended that the City Council approve rezoning of the former Crompton Mills site, clearing the way for plans to transform the shuttered plant into a combination of research and education centers, entertainment, restaurants and commercial space.

But finding tenants to fill 500,000 square feet at The Mill at South River could be a challenge, local developers warn.

“The commercial real estate market is in shambles,” prominent local developer Bill Hausrath said. Commercial and office properties “are taking it on the chin.”

Part of the problem is the economy, and part of it is an enduring credit freeze, Hausrath said.

“No one is making deals right now,” Hausrath said. “The banks haven’t loosened up [and] retail sales are down. It’s a tough call.”

A public hearing on The Mill at South River is scheduled for today’s City Council meeting.

Beverley Shoemaker, of Stephens City, and her representatives in June announced plans to rezone the $2.5 million Crompton property. The project is valued at $40 million to $48 million, making it one of the most ambitious brownfield redevelopment proposals in state history.

“We remain excited about the possibilities for the project,” City Planner Michael Barnes said.

City officials said they expect the redevelopment proposal for the 40-acre South River Complex along Arch Avenue to meet with little resistance on its way to being approved by the City Council.

“I think that’s been pretty much a seamless process,” said Councilwoman Lorie Smith, who praised the partnership between Shoemaker and city officials.

Proffers for The Mill at South River call for no more than 500,000 square feet of building space to be developed, while including pedestrian and vehicle access points from 11th, 12th, 13th and 14th streets. Plans also provide for a park along Arch Avenue between the 11th and 12th Street entrances.

Shoemaker plans to phase in the project over several years, with the first phase taking place with the buildings along Arch Avenue and grading along the South River.

“While the ultimate utilization of the complex is not clear at this time, what is clear is that if this project succeeds, it will have a positive impact that will help spur the redevelopment of downtown Waynesboro,” a city staff report said. The plans, it says, are “a highly desirable opportunity to redevelop a large tract of land and underutilized structure in close proximity to the downtown area.”

The report also says that any traffic and parking impacts to the nearby neighborhood can be resolved as the project develops and potential impacts are better understood.

The proposal does not conform with general land use guidelines in the city’s comprehensive plan, but the report says the project will be a good opportunity to redevelop the site and support downtown. The project is not expected to impact the city’s public facilities or services.

The “code of development” for the project says the amenities to the site, such as sidewalks, street lights, trees and a part of the city’s greenway trail, “are generally more than can be required by the existing city ordinance.”

Despite the bleak commerical outlook, city officials remain optimistic that they have a potential gem of a project in The Mill at South River.

“It is this vision that has the possibility of making this a unique draw in this part of the state and a major asset for the city,” the staff report said.