A grant application for a local revitalization project was not successful.
Late last month, Madison County Supervisors learned an application submitted on behalf of Criglersville Elementary School owner Felix Schapiro was not selected for funding. The application was for an Industrial Revitalization Fund Grant. The grant program, administered by the Department of Housing and Community Development (DHCD), awards up to $1 million for the purpose of revitalizing derelict structures, allowing for redevelopment and enhanced economic opportunities. The funding is considered to be stop gap funding and is used by a private owner as the last piece of funding for a project. Localities can apply for one grant per year on behalf of a private owner. No local funding is utilized or obligated and if awarded, a performance agreement is executed between the developer and DHCD. The grant is a 20-year, fixed interest rate loan and will be handled by Locus, not the county’s IDA.
If awarded, the grant would have been used for Schapiro’s project to turn the former elementary school into a boutique hotel. Initial plans would have created an event venue at the Criglersville School. In June 2022, Schapiro submitted a rezoning request for the 5.83 acre parcel to change it from A1, Agriculture, to M1, Industrial Limited, to allow for a mixed use development. At the time, he intended to purchase the property which includes both the two-story school building and the former adjacent voting precinct. He hoped to create an event venue, boutique hotel, restaurant, retail establishment and community asset. Neighbors balked and the zoning request failed that fall with supervisors opting to pursue a request for proposals process to solicit proposals for the property in early 2023.
That process was abandoned when Schapiro submitted amendments to the sale contract, which supervisors turned down. A suit was filed by Schapiro in February 2023 and the property was sold for $25,000 to Schapiro that December. According to the terms of the sale, the county has a first right of refusal to purchase the property should Schapiro’s future plans prove unsuccessful. It also recognizes a survey conducted July 11, 2022 and clarifies a county-owned easement for both the Criglersville Mountain Museum and the memorial for the local families displaced by the creation of Shenandoah National Park. The county would be required to remove old playground equipment and the property could not be used for storage or a salvage yard. Rehabilitation of the main building must be started within 14 months.
The grant application was the next step in Schapiro’s development process. In January the property was added to the Virginia Landmark Register and in February, a rezoning application was approved, changing the property from A-1, Agricultural to B-1, Business allowing for use as a hotel by-right. Per the rezoning, there will be no accessory structures used as overnight lodging and outdoor sound will cease one hour after sunset Sunday through Wednesday and 11 p.m. Thursday through Saturday.
According to DHCD Program Manager Tory McGowan, grant applications are scored using an objective and quantitative rating system. Unfortunately, the Criglersville project did not meet the minimum scoring criteria.
“This round of funding was very competitive and some worthwhile projects were not able to be funded,” McGowan wrote in a letter to county officials.
County administrator Jonathon Weakley said the grant will not overwhelmingly affect Schapiro’s project. As of last week, Schapiro was awaiting well and septic approval from the Virginia Department of Health.
