“We included a 10% cost increase factor due to inflationary factors,” said Dave Vos, development project manager for The Alexander Company in Madison, Wisconsin. “Supply chain issues and labor shortages extended the planned construction schedule by two months.”
All of these factors increase the cost of the project from $62.5 million to approximately $68.75 million. The Alexander Company, in joint venture with the Danville Industrial Development Authority, plans to bring new apartments and commercial space to the White Mill building along Memorial Drive on the former site of Dan River Inc.
Construction is expected to begin near the end of the first quarter of 2022 and be completed by the end of 2023, Vos said on Friday.
Following the project’s announcement in May, Vos told the Danville Register & Bee that construction is expected to begin in the fourth quarter of this year, with completion expected by summer 2023, around the same time as the Caesars Virginia casino project at the former Dan River Inc. site in Schoolfield.
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Despite the challenges posed to the project, its scope remains unchanged, Vos said.
Supply chain issues are not just affecting the White Mill project. They are faced all over the world.
“Globally, teams are facing supply chain challenges and we are seeing, across many projects, a slight delay in timelines related to this,” said Corrie T. Bobe, director of economic development at Danville. “We continue to work with The Alexander Company to advance this project through to the completion of this project in 2023.”
Currently, the company is finalizing architectural, engineering and environmental remediation plans, Vos said. Partnership agreements, financial due diligence and permits must be completed before construction can begin, he said.
Environmental work will be carried out when construction begins towards the end of the first quarter of next year, Vos said.
“We look forward to the opportunity to partner with the Town of Danville to restore this historic icon to its former grandeur and once again become a vital contributor to the town for which it was built,” Vos said.
Plans include 110,000 square feet of retail space, 150 apartments (with 100 more units in the future), and 219 indoor parking spaces. Restoration of the covered bridge that spans the River Dan on the north side of the White Mill at the old Long Mill site is also reportedly underway. The bridge will be for pedestrians and will connect the north and south sides of the Riverwalk Trail.
And there are plans to use the canal on the south side of the building as a whitewater feature and provide approximately 1.12 acres facing the Dan River for an extension of the Riverwalk Trail.
The IDA and Alexander have formed a company, called 424 Memorial Drive, LLC, which jointly owns the property.
Alexander Company will oversee construction of the residential portion of the project, and IDA will oversee the commercial portion, said Corrie T. Bobe, director of economic development for Danville.
Site Collaborative, a Raleigh, NC architectural firm designing a planned waterfront park nearby, is performing the site design for the project.
Apartments will be available in 1, 2 or 3-bedroom units for rent, Vos said, with 1-bedroom units for rent between $840 and $980 per month, and 2- and 3-bedroom apartments for rent for $1,000. $ to $1,200. and $1,170 to $1,490, respectively, Vos said.
Vos said 25% of the apartments would be set aside to make housing available to individuals and families earning between $30,000 and $50,000 a year.
Construction of the project “will generate additional excitement in our community as we see our shorelines transformed over the next year and a half,” Bobe said.