'Funding Gap Filled': Neighbors of Watertown says closing on new sources will occur in next 2 months

Work on the Franklin Building has begun once again after a gap in funding for the project was filled.

Over the summer, work had to stop on the $7.8 million renovation project when tax credits sold for less than expected. Along with asbestos removal, that created a $700,000 gap in funding for the project.

"There was bundling funding into a new source and adding stimulus money," said Gary C. Beasley, executive director of Neighbors of Watertown Inc., which is working on the project.

He said that there have been oral commitments from state and federal government sources and that the closings on the new funding will occur from mid-December through mid-January.

"It's mostly additional credits to make up the lost value of the tax credits," he said.

The $7.8 million project includes about $3.8 million in tax credits. Neighbors plans to turn the three-story building at 50 Public Square into a mixed-use space with 16 residential units on upper floors, served by an elevator, and commercial units at street level. There will be six storefront spaces, one of which will be used for the residential entrance.

Overall, seven to 12 businesses will fit in the former YWCA building.

The state's Housing Trust Fund Corp. organized the new funding. It is allowing Neighbors to use $1.55 million from the Restore NY Communities Initiative program to work on the exterior, hallways and stairways.

Crews are working on electrical and utility lines inside the building, but soon will work on the exterior.

"Soon, they will put up a tent along the storefronts to protect them from the weather and work on the storefronts," Mr. Beasley said. "Pretty quickly, the storefronts will be more attractive."

The storefronts may participate in the North Country Arts Council's art exhibit around Public Square during the holiday season.

The work on the building should be done by the end of 2010, Mr. Beasley said.

"There shouldn't be any lapse in work from here on," he said.