Developers bidding to buy city-owned lots on Central Street that are for sale will have access to major grants.
SPRINGFIELD — City officials said Thursday they are optimistic that quality housing can be attracted to buy and develop city-owned lots on Central Street in the Maple High-Six Corners area, aided by grants tied to neighborhood revitalization efforts.
A recent Request for Proposals, seeking developers to buy four abutting vacant lots on Central Street, led to three bids and proposals for high-quality homes, said Geraldine McCafferty, the city’s director of housing. The neighborhood has high poverty, and had significant damage from the tornado of June 2011, officials said.
But the recommended developer, Alberto Ayala of Viva Development LLC, withdrew the proposal this week, without stating the reason.
The proposals were for high quality construction, including Viva Development’s plans calling for central air, attached garages and privacy fencing for rear yards, McCafferty said.
Another bidder had questioned if the sale to Ayala might be an ethical conflict of interest because he is a Springfield police officer. Councilors said that a Law Department opinion stated there would be no ethical conflict.
The city will seek proposals again due to the withdrawn proposal, McCafferty said. In addition, the city will seek to sell three other nearby lots on Central Street that were created after the city tore down the vacant, tax-foreclosed Ring Nursing Home, she said.
Melvin A. Edwards Ward 3 Councilor Melvin Edwards, who represents the area, and at-large Councilor Bud L. Williams said they share the optimism that quality homes can be built along Central Street, raising the property values in the neighborhood.
Developers will have access to major grants under the Neighborhood Stabilization Program and federal HOME program for the city lots for sale along Central Street, city officials said.
Edwards said the neighborhood was depressed and had issues such as poverty before the tornado.
“I am very optimistic we will get a real good project over there that will help transform Six Corners and the Central Street corridor,” Edwards said. “That is a major corridor.”
Rebuild Springfield, in its post-tornado recommended master plan for the area, calls for infill housing along Central Street.
Viva Development had offered $30,000 for the lots, and was requesting up to $788,200 in Neighborhood Stabilization Funds.
Other bidders were: Springfield Neighborhood Housing Services, offering $20,001 for the lots, and requesting $706,300 in grant funds; and Central Street Springfield Realty Trust, offering $40,000 for the lots, and requesting up to $640,000 in grant funds.
A city review committee took multiple factors into account in recommending Viva Development, including the proposer’s history and capacity, project feasibility, readiness to proceed, and direct financial benefit, McCafferty said. Viva’s strength included the high quality of design and amenities, she said.