Two buildings in downtown Marion that were damaged by a 2021 fire and are now considered eyesores may be used again for apartments and retail stores with approval of a $500,000 state grant.
The grant was one of three Mixed Use on Main Street awards totaling $1.5 million announced Friday by Gov. Glenn Youngkin, who said the funding will support revitalization of derelict structures into mixed-use developments.
Marion officials want to transform the Past Time Antique building and the adjacent Gospel Armory building, both on Main Street, into a dozen new apartments upstairs, three commercial storefronts, and living, dining and shopping opportunities, according to Ken Heath, executive director of community and economic development for the Smyth County town.
“Both vacant buildings were a huge blight for downtown, and this new grant is allowing the Marion EDA [Economic Development Authority] to continue to renovate these eyesores so that an eventual developer can complete the project,” Heath said Friday.
The buildings were damaged by a late-night fire in October 2021. More than 60 firefighters from seven departments battled the blaze, town officials said.
Obtaining the grant involved months of work by town officials and started with an initial award that was used to study the feasibility of restoring the buildings. The first grant provided structural and financial options for the restorations, Heath said.
Hazard abatement is underway at the buildings, and the next step is to recruit a private developer to complete the project, which is estimated at $6.5 million, he added.
At that point, the grant would become a low-interest loan, as part of gap financing to assist with the project, which is expected to take 12 to 18 months to complete.
“To me, equally exciting is that this grant will eventually be converted into a low-interest loan for the developer, and as it’s repaid, Marion will have a new loan pool to assist other property owners in restoring vacant upper stories and storefronts needing renovation,” Heath said. “It’s a great day for Marion and for our commonwealth as we continue moving forward and growing, putting blighted buildings back into use, adding new opportunities, and placing properties back on the tax rolls.”
The city of Hopewell and the town of Pulaski will also each receive a $500,000 grant. It will be used in Hopewell to transform a vacant property in the downtown historic district. Pulaski officials plan to use it to add eight market-rate apartments, according to a news release from the governor’s office.
Youngkin said in the release that downtowns serve as the “heartbeat of countless communities in the Commonwealth, and this investment initiative seeks to breathe new life into neglected structures by cultivating dynamic businesses and new housing prospects.”
The Mixed Use on Main Street pilot program is a joint effort with the Industrial Revitalization Fund and Virginia Main Street programs. Both are administered through the Virginia Department of Housing and Community Development to support revitalization of vacant or underused downtown spaces in order to create opportunities for commercial development and housing units in communities that are active participants in Virginia Main Street, the release states.
