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Faisal Khan has plans to invest $7 million to redevelop the long-vacant former YMCA building on Church Avenue.
The Roanoke Times | File 2009
Faisal Khan, who is also developing the Crystal Tower building downtown, plans to build 6,000 square feet of commercial space and between 47 and 53 apartments in the old YMCA building on Church Avenue.
Friday, May 3, 2013
Roanoke is hoping the third time is lucky with the old YMCA building on Church Avenue — the city has found a developer who wants to renovate the 57-year-old landmark.
Faisal Khan , who is also developing the Crystal Tower building downtown, plans to build 6,000 square feet of commercial space and between 47 and 53 apartments in the old YMCA.
His Fifth & Church LLC company expects to invest about $7 million in the project over the next three years.
The city would sell the building for $10 , Assistant City Manager Brian Townsend said Thursday.
It will require that Khan’s company put up a $250,000 bond to ensure that construction starts within 90 days of closing, that he takes steps to stabilize and secure the building and that he invest at least $500,000 in the first year of the renovation.
If he doesn’t spend that much money the first year, the city would get another $250,000 performance bond, to be held until the project is completed.
“This is a difficult property, but we think we’ve found someone who has the wherewithal to do the project,” Townsend said.
“We’re looking at the long term, to get a property back onto the tax rolls and into productive use,” he added.
Khan could not be reached immediately for comment.
The city acquired the old YMCA in 2006, swapping the site that now houses the Kirk Family YMCA a block away.
Its two earlier contracts to sell the building were also for nominal payments, with performance bonds to ensure completion of the projects.
The city also plans to sell the nearly 7-acre site in the Coyner Springs Road area of Botetourt County that used to house its Crisis Intervention Center.
Intercept Youth Services has offered $420,000 for the property, where it plans to run a treatment center for youth.
The city closed its facility there in 2010 and rents beds as needed when young people need the short-term residential treatment it provided there.
The city council is set to consider the sales May 20.
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